Amended in Senate July 2, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 731

Introduced by Assembly Member Gallagher

February 25, 2015

An act to amend Sections 4115, 4120, 4201, 7590.2, 8538, 12518, 19556, 19599, 19605.7, 25350, 25503.6, and 25608 of, to amend and renumber Sections 1626.5, 7588.2, and 17550.42 of, to repeal Sections 125.3, 1917.2, 4945, 5082.5, 5095, 7000.6, 17530.6, and 18897.8 of, and to repeal the heading of Article 3.5 (commencing with Section 316) of Chapter 4 of Division 1 of, the Business and Professions Code, to amend Sections begin insert 51, end insert 56.36, 3486, 5910, and 5915 of, to repeal Sections 1936.5, 2923.55, 2924.19, 2924.20, and 2934a of, and to repeal Title 17 (commencing with Section 3272) of Part 4 of Division 3 of, the Civil Code, to amend begin delete Section end delete begin insert Sections end insert 398, 629, 1277, and 2030.010 of, to repeal Section 116.222 of, to repeal the heading of Article 5 (commencing with Section 142) of Chapter 6 of Title 1 of Part 1 of, and to repeal the heading of Chapter 1 (commencing with Section 156) of Title 2 of Part 1 of, the Code of Civil Procedure, to amend Section 9321.1 of, and to amend the heading of Part 6 (commencing with Section 3601) of Division 3 of, the Commercial Code, to amend Sections 5047, 25620, 31116, 31121, and 31158 of, and to amend and renumber Section 12637 of, the Corporations Code, to amend Sections 1313, 2575, 2577, 8261, 8273.1, 8363.1, 8450, 8483.55, 8490.1, 9004, 17199.4, 17592.74, 32282, 35035, 35735.1, 41020, 42127, 42238.15, 42800, 44252, 44277, 44932, 44939, 44940, 44944, 44944.05, 44944.3, 46116, 47605, 47605.1, 47605.6, 47614.5, 47651, 48003, 48297, 48321, 48900.9, 49452.9, 51747.3, 52064.5, 52852, 66281.7, 67386, 69437, 70022, 70037, 76030, 78261.5, 82542, 87782, 87784.5, 88207.5, 89005, 89295, 89500.7, 89770, 92611.7, 92675, 94143, 94145.5, and 94880 of, to amend and renumber Sections 38047.5, 38047.6, 39672, 41207.3, and 66261.5 of, to amend and renumber the heading of Article 7 (commencing with Section 66080) of Chapter 2 of Part 40 of Division 5 of Title 3 of, to amend and renumber the heading of Chapter 11 (commencing with Section 19900) of Part 11 of Division 1 of Title 1 of, to repeal Sections 8350.5 and 41851.1 of, to repeal the heading of Article 2 (commencing with Section 12210) of Chapter 2 of Part 8 of Division 1 of Title 1 of, to repeal the heading of Article 1 (commencing with Section 32200) of Chapter 2 of Part 19 of Division 1 of Title 1 of, to repeal the heading of Article 7 (commencing with Section 33390) of Chapter 3 of Part 20 of Division 2 of Title 2 of, to repeal the headings of Article 3 (commencing with Section 46330) and Article 4 (commencing with Section 46340) of Chapter 3 of Part 26 of Division 4 of Title 2 of, to repeal the heading of Article 2 (commencing with Section 48810) of Chapter 5 of Part 27 of Division 4 of Title 2 of, to repeal the heading of Article 8 (commencing with Section 54750) of Chapter 9 of Part 29 of Division 4 of Title 2 of, to repeal the heading of Article 7 (commencing with Section 68090) of Chapter 1 of Part 41 of Division 5 of Title 3 of, to repeal the heading of Article 3 (commencing with Section 72632) of Chapter 6 of Part 45 of Division 7 of Title 3 of, to repeal the heading of Article 8 (commencing with Section 78310) of Chapter 2 of Part 48 of Division 7 of Title 3 of, to repeal the heading of Article 3 (commencing with Section 78440) of Chapter 3 of Part 48 of Division 7 of Title 3 of, to repeal the heading of Article 4 (commencing with Section 82360) of Chapter 7 of Part 49 of Division 7 of Title 3 of, to repeal the heading of Article 1 (commencing with Section 84300) of Chapter 3 of Part 50 of Division 7 of Title 3 of, to repeal the heading of Article 2 (commencing with Section 85210) of Chapter 8 of Part 50 of Division 7 of Title 3 of, to repeal the heading of Chapter 3 (commencing with Section 37400) of Part 22 of Division 3 of Title 2 of, to repeal the heading of Chapter 14 (commencing with Section 52980) of Part 28 of Division 4 of Title 2 of, to repeal the heading of Chapter 8.5 (commencing with Section 56867) of Part 30 of Division 4 of Title 2 of, to repeal the heading of Chapter 4 (commencing with Section 78600) of Part 48 of Division 7 of Title 3 of, to repeal Chapter 17 (commencing with Section 11600) of Part 7 of Division 1 of Title 1 of, and to repeal and amend Section 32289 of, the Education Code, to amend Sections begin delete 2150, 2157, and 8040 end delete begin insert 2150 and 2157 end insert of the Elections Code, to amend Sections 6203, 6301, begin delete 7613.5, end delete 8712, 8811, and 8908 of, to amend and renumber Section 3201 of, to repeal Sections 3690 and 4051 of, and to repeal the heading of Article 3 (commencing with Section 3780) of Chapter 7 of Part 1 of Division 9 of, the Family Code, to amend Sections 12201, 17201, 22066, 22101, 23005, and 32208 of, to amend and renumber Section 23015 of, to repeal Section 24058 of, to repeal the headings of Article 1 (commencing with Section 32700) and Article 2 (commencing with Section 32710) of Chapter 6 of Division 15.5 of, and to repeal the heading of Chapter 8 (commencing with Section 50601) of Division 20 of, the Financial Code, to amend Sections 1652, 1653, 1654, 1745.2, and 12002 of the Fish and Game Code, to amend Sections 6045, 6047.9, 12996, 12999.5, 13186.5, 19227, and 78579 of, to amend and renumber the heading of Article 5 (commencing with Section 491) of Chapter 3 of Part 1 of Division 1 of, and to repeal Sections 55462 and 77103 of, the Food and Agricultural Code, to amend Sections 6254, 6276.22, 6700, 8753.6, 11146.2, 13956, 15155, 15814.22, 16183, 17581.6, 18720.45, begin insert 27491, end insert 53398.52, 53398.75, 56378, 65352.5, 65583.2, 65995.7, 75070, 75521, 82015, and 95014 of, to amend and renumber Sections 13994, 13994.1, 13994.2, 13994.3, 13994.4, 13994.5, 13994.6, 13994.7, 13994.8, 13994.9, 13994.10, 13994.11, 13994.12, 14670.2, 22960.51, 31685.96, 53216.8, and 65080.1 of, to amend and renumber the heading of Chapter 14 (commencing with Section 5970) of Division 6 of Title 1, to amend and renumber begin insert the heading of end insert Article 6 (commencing with Section 12099) of Chapter 1.6 of Part 2 of Division 3 of Title 2, to amend and renumber begin insert the heading of end insert Article 18 (commencing with Section 14717) of Chapter 2 of Part 5.5 of Division 3 of Title 2 of, to repeal Sections 4420.5, 12804, 13312, 14254.5, 14829.2, 19995.5, and 43009 of, to repeal the heading of Article 8.5 (commencing with Section 8601) of Chapter 7 of Division 1 of Title 2 of, to repeal the heading of Article 8 (commencing with Section 11351) of Chapter 3.5 of Part 1 of Division 3 of Title 2 of, to repeal the heading of Article 1 (commencing with Section 11370) of Chapter 4 of Part 1 of Division 3 of Title 2 of, to repeal the heading of Article 7 (commencing with Section 13968) of Chapter 5 of Part 4 of Division 3 of Title 2 of, to repeal the heading of Article 2 (commencing with Section 72054) of Chapter 8 of Title 8 of, to repeal the heading of Article 4 (commencing with Section 72150) of Chapter 8 of Title 8 of, to repeal the heading of Chapter 3 (commencing with Section 980) of Part 5 of Division 3.6 of Title 1 of, to repeal the heading of Chapter 4 (commencing with Section 14730) of Part 5.5 of Division 3 of Title 2 of, to repeal the heading of Chapter 5.5 (commencing with Section 19994.20) of Part 2.6 of Division 5 of Title 2 of, to repeal the heading of Chapter 10 (commencing with Section 95030) of Title 14 of, and to repeal Article 12 (commencing with Section 16429.30) of Chapter 2 of Part begin delete 1 end delete begin insert 2 end insert of Division 4 of Title 2 of, the Government Code, begin insert to end insert amend Sections 678.3, 1159.2, and 6087 of, and to repeal Section 1159.1 of, the Harbors and Navigation Code, to amend Sections 442.5, begin insert 1255, end insert 1347.5, 1357.504, 1358.18, 1367.004, 1367.035, 1367.25, 1368.05, 1389.4, 1389.5, 1389.7, 1399.836, 1399.855, 1502, 1522, 1534, 1546.1, 1546.2, 1562, 1567.62, 1567.69, 1568.07, 1569.335, 1569.481, 1569.482, 1569.525, 1569.682, 1597.58, 1635.1, 1796.17, 1796.23, 1796.25, 1796.26, 1796.29, 1796.34, 1796.37, 1796.38, 1796.41, 1796.44, 1796.45, 4730.65, begin insert 7158.3, end insert 16500, 25163.3, 25262, 25507.2, 33492.78, 34177, 39945, 42301.16, 50561, 51505, 101661, 101850, 101853, 101853.1, 101855, 101855.1, 102430, begin insert 102825, end insert 111825, 115880, 119316, begin insert 120262, end insert 120393, 121025, 123223, 124995, 125125, 125130, 125160, 125175, 125190, 125191, 130060, and 136000 of, to amend the heading of Chapter 2 (commencing with Section 104145) of Part 1 of Division 103 of, to amend the heading of Part 8 (commencing with Section 125700) of Division 106 of, to amend and renumber Sections 1339.9, 1531.2, 1568.0823, 4766.5, 13143.5, 25997, 25997.1, and 120155 of, to amend and renumber the heading of Chapter 3 (commencing with Section 16500) of Division 12.5 of, to amend and renumber the heading of Article 5.5 (commencing with Section begin delete 25159) end delete begin insert 25159.10) end insert of Chapter 6.5 of Division 20 of, to amend and renumber the heading of Article 4 (commencing with Section 128454) of Chapter 5 of Part 3 of Division 107 of, to repeal Sections 1317.5, 1367.20, 1371.36, 1371.37, 1371.38, 1371.39, 8650.5, 44246, 44525.5, 44525.7, and 116283 of, to repeal the heading of Article 2.6 (commencing with Section 1528) of Chapter 3 of Division 2 of, to repeal the heading of Article 3 (commencing with Section 11140) of Chapter 3 of Division 10 of, to repeal the heading of Article 2 (commencing with Section 11760.5) of Chapter 1 of Part 2 of Division 10.5 of, to repeal the heading of Article 6 (commencing with Section 11780) of Chapter 2 of Part 2 of Division 10.5 of, to repeal the heading of Article 8 (commencing with Section 25299.80) of Chapter 6.75 of Division 20 of, to repeal the heading of Article 12 (commencing with Section 25299.97) of Chapter 6.75 of Division 20 of, to repeal the heading of Article 5 (commencing with Section 101150) of Chapter 2 of Part 3 of Division 101 of, to repeal the heading of Chapter 3 (commencing with Section 101000) of Part 2 of Division 101 of, to repeal the heading of Chapter 4 (commencing with Section begin delete 101500) end delete begin insert 101325) end insert of Part 3 of Division 101 of, to repeal Division 10.10 (commencing with Section 11999.30) of, to repeal Chapter 6 (commencing with Section 101860) of Part 4 of Division 101 of, to repeal Chapter 4 (commencing with Section 128200) of Part 3 of Division 107 of, and to repeal and amend Sections 25299.97 and 116612 of, the Health and Safety Code, to amend Sections 926.1, 926.2, 1215.8, 10112.26, 10112.35, 10123.196, 10192.18, 10753.06.5, and 12880.4 of, to amend and renumber Section 10123.21 of, and to repeal the heading of Chapter 17 (commencing with Section 12693.99) of Part 6.2 of Division 2 of, the Insurance Code, to amend Sections 1019, 1311.5, 1741.1, 5406, 6319, 6404.5, 6625, and 7873 of the Labor Code, to amend Sections 19.8, 132.5, 264.2, 295.2, 308, 602, 626.9, 814, 830.14, 1191.15, 2905, 3016, 3043, 3063.1, 3440, begin insert 3502, end insert 4501, 4852.08, 4852.11, 4852.12, 4852.14, 4852.18, 13510.5, 18115, 18150, 18155, 18175, 27210, and 30625 of, to amend and renumber Sections 300.2 and 13980 of, to amend and renumber the heading of Chapter 5a (commencing with Section 852) of Title 3 of Part 2 of, to repeal Section 11105.5 of, and to repeal the heading of Title 6.7 (commencing with Section 13990) of Part 4 of, the Penal Code, to repeal the heading of Part 14 (commencing with Section 900) of Division 2 of, and to repeal the heading of Article 1 (commencing with Section 7200) of Chapter 3 of Part 1 of Division 7 of, the Probate Code, to amend begin delete Section end delete begin insert Sections 6100, 6101, and end insert 20427 of, and to repeal Section 10299 of, the Public Contract Code, to amend Sections 541.5, 4598.1, 4598.6, 4598.7, 5080.16, 14591.2, 21082.3, 30103, 42356, 42649.82, 42987, 42987.1, 42989.1, 44107, and 75220 of, to amend and renumber Sections 5096.955 and 21080.35 of, to repeal Section 6217.2 of, to repeal the heading of Chapter 6 (commencing with Section 12292) of Division 10.5 of, and to repeal Chapter 1 (commencing with Section 32600) of Division 22.8 of, the Public Resources Code, to amend Sections 765, 960, and 120260 of, to amend and renumber Section 5384.2 of, to repeal Sections 957, 125450, and 125500 of, and to repeal the heading of Article 5 (commencing with Section 125300) of Chapter 4 of Division 11.5 of, the Public Utilities Code, to amend Sections 441, 17053.34, 17053.46, 17053.73, 17053.74, 17058, 17207.7, 17207.8, 17276.21, 18805, 18807, 18808, 19183, 19191, 19255, 23151, 23610.5, 23622.7, 23626, 23634, 23732, 24347.6, 24347.10, and 24416.21 of, to amend and renumber Sections 17141, 17276.20, 24355.4, 24416.20, 32432, 40069, 45752, and 55262 of, to amend and renumber the heading of Part 5.5 (commencing with Section 11151) of Division 2 of, to repeal Sections 54, 196.91, 196.92, 6051.7, 17132.6, 17155, 17507.6, 17565, 18407, 24661.3, 24685.5, and 24989 of, to repeal the heading of Article 1.5 (commencing with Section 7063) of Chapter 8 of Part 1 of Division 2 of, to repeal the heading of Article 3 (commencing with Section 23571) of Chapter 3 of Part 11 of Division 2 of, to repeal the heading of Chapter 10.5 (commencing with Section 17940) of Part 10 of Division 2 of, and to repeal Chapter 3.5 (commencing with Section 7288.1) of Part 1.7 of Division 2 of, and to repeal Chapter 9.5 (commencing with Section 19778) of Part 10.2 of Division 2 of, the Revenue and Taxation Code, to amend Section 2192 of, to amend and renumber Section 5132.1 of, to repeal the heading of Article 6.5 (commencing with Section 217) of Chapter 1 of Division 1 of, and to repeal the heading of Division 6 (commencing with Section 4000) of, the Streets and Highways Code, to amend Sections 125.4, 135, 605, 634.5, 710.6, 802, 803, 804, 1086, 1119, 1128.1, 1141.1, 1145, 1253.92, 1326.5, 1735.1, 3655, and 14013 of the Unemployment Insurance Code, to amend Sections 2480, 5156.7, 12801, 12801.9, 15210, 34500, 35401.7, and 40303.5 of, to repeal and amend Sections 612 and 2501 of, to repeal Sections 241, 241.1, 1803.5, 1808.7, and 42002.1 of, to repeal the heading of Article 1.7 (commencing with Section 23145) of Chapter 12 of Division 11 of, and to repeal Chapter 5 (commencing with Section 10900) of Division 4 of, the Vehicle Code, to amend Sections 9650, 10725.8, 10735.2, 20560.2, 37921, 37954, and 73502 of, to amend and renumber Sections 12938.2 and 21065 of, to repeal Sections 8612, 8613, 12585.12, 13272.1, and 21562.5 of, to repeal the heading of Article 5 (commencing with Section 36459) of Chapter 6 of Part 6 of Division 13 of, to repeal the heading of Article 1 (commencing with Section 42500) of Chapter 3 of Part 5 of Division 14 of, and to repeal Article 2 (commencing with Section 8580) of Chapter 2 of Part 4 of Division 5 of, to repeal Part 8 (commencing with Section 9650) of Division 5 of, the Water Code, to amend Sections 213.5, 258, 300, 319, 361.2, 391, 1767, 1984, 4142, 4144, 4512, 4520, 4520.5, 4521, 4540, 4541, 4648, begin insert 4903, 5328.15, end insert 5840.2, 5892.5, 10104, 11253.5, 11325.24, 11363, 11403, 11460, 11461.3, 11477, 12300.4, 12300.41, 12301.1, 14005.271, 14011.10, 14021.6, 14022, 14029.91, 14105.18, 14124.24, 14132.277, 14148.67, 14154, 14165.50, 14166.22, 15151, begin insert 15655, end insert 15862, 15885.5, 15894.5, 16120, 16500.5, 16524.7, 16524.8, 16524.9, 17603, 18901.2, and 18901.11 of, to amend the heading of Article 8 (commencing with Section 5869) of Chapter 1 of Part 4 of Division 5 of, to amend and renumber Sections 9757.5, 14005.75, 14011.2, 14132.99, 14148.9, 16513, and 16517 of, to amend and renumber the heading of Chapter 6 (commencing with Section 17500) of Part 5 of Division 9 of, to amend and renumber the heading of Chapter 4.5 (commencing with Section 18260) of Part 6 of Division 9 of, to add the heading of Article 1 (commencing with Section 6331) to Chapter 2 of Part 2 of Division 6 of, to add the heading of Article 5.22 (commencing with Section 14167.35) to Chapter 7 of Part 3 of Division 9 of, to repeal Sections 14103, 14105.336, 14105.337, and 14132.90 of, to repeal the heading of Article 2.93 (commencing with Section 14091.3) of Chapter 7 of Part 3 of Division 9 of, to repeal the heading of Chapter 7 (commencing with Section 16997.1) of Part 4.7 of Division 9 of, and to repeal and amend Section 12104 of, the Welfare and Institutions Code, to amend Section 25 of Chapter 279 of the Statutes of 2005, to amend Section 1 of Chapter 15 of the Statutes of 2014, and to amend Section 1 of Chapter 243 of the Statutes of 2014, relating to the maintenance of the codes.

LEGISLATIVE COUNSEL’S DIGEST

AB 731, as amended, Gallagher. Maintenance of the codes.

Existing law directs the Legislative Counsel to advise the Legislature from time to time as to legislation necessary to maintain the codes.

This bill would make nonsubstantive changes in various provisions of law to effectuate the recommendations made by the Legislative Counsel to the Legislature.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 125.3 of the Business and Professions
Code, as added by Section 1 of Chapter 1059 of the Statutes of
1992, is repealed.

SEC. 2.  

The heading of Article 3.5 (commencing with Section
316) of Chapter 4 of Division 1 of the Business and Professions
Code is repealed.

SEC. 3.  

Section 1626.5 of the Business and Professions Code,
as added by Section 6 of Chapter 655 of the Statutes of 1999, is
amended and renumbered to read:

1626.1.  

In addition to the exemptions set forth in Section 1626,
the operations by bona fide students of registered dental assisting,
registered dental assisting in extended functions, and registered
dental hygiene in extended functions in the clinical departments
or the laboratory of an educational program or school approved
by the board, including operations by unlicensed students while
engaged in clinical externship programs that have been approved
by an approved educational program or school, and that are under
the general programmatic and academic supervision of that
educational program or school, are exempt from the operation of
this chapter.

SEC. 4.  

Section 1917.2 of the Business and Professions Code
is repealed.

SEC. 5.  

Section 4115 of the Business and Professions Code is
amended to read:

4115.  

(a) A pharmacy technician may perform packaging,
manipulative, repetitive, or other nondiscretionary tasks only while
assisting, and while under the direct supervision and control of, a
pharmacist. The pharmacist shall be responsible for the duties
performed under his or her supervision by a technician.

(b) This section does not authorize the performance of any tasks
specified in subdivision (a) by a pharmacy technician without a
pharmacist on duty.

(c) This section does not authorize a pharmacy technician to
perform any act requiring the exercise of professional judgment
by a pharmacist.

(d) The board shall adopt regulations to specify tasks pursuant
to subdivision (a) that a pharmacy technician may perform under
the supervision of a pharmacist. Any pharmacy that employs a
pharmacy technician shall do so in conformity with the regulations
adopted by the board.

(e) A person shall not act as a pharmacy technician without first
being licensed by the board as a pharmacy technician.

(f) (1) A pharmacy with only one pharmacist shall have no
more than one pharmacy technician performing the tasks specified
in subdivision (a). The ratio of pharmacy technicians performing
the tasks specified in subdivision (a) to any additional pharmacist
shall not exceed 2:1, except that this ratio shall not apply to
personnel performing clerical functions pursuant to Section 4116
or 4117. This ratio is applicable to all practice settings, except for
an inpatient of a licensed health facility, a patient of a licensed
home health agency, as specified in paragraph (2), an inmate of a
correctional facility of the Department of Corrections and
Rehabilitation, and for a person receiving treatment in a facility
operated by the State Department of State Hospitals, the State
Department of Developmental Services, or the Department of
Veterans Affairs.

(2) The board may adopt regulations establishing the ratio of
pharmacy technicians performing the tasks specified in subdivision
(a) to pharmacists applicable to the filling of prescriptions of an
inpatient of a licensed health facility and for a patient of a licensed
home health agency. Any ratio established by the board pursuant
to this subdivision shall allow, at a minimum, at least one pharmacy
technician for a single pharmacist in a pharmacy and two pharmacy
technicians for each additional pharmacist, except that this ratio
shall not apply to personnel performing clerical functions pursuant
to Section 4116 or 4117.

(3) A pharmacist scheduled to supervise a second pharmacy
technician may refuse to supervise a second pharmacy technician
if the pharmacist determines, in the exercise of his or her
professional judgment, that permitting the second pharmacy
technician to be on duty would interfere with the effective
performance of the pharmacist’s responsibilities under this chapter.
A pharmacist assigned to supervise a second pharmacy technician
shall notify the pharmacist in charge in writing of his or her
determination, specifying the circumstances of concern with respect
to the pharmacy or the pharmacy technician that have led to the
determination, within a reasonable period, but not to exceed 24
hours, after the posting of the relevant schedule. An entity
employing a pharmacist shall not discharge, discipline, or otherwise
discriminate against any pharmacist in the terms and conditions
of employment for exercising or attempting to exercise in good
faith the right established pursuant to this paragraph.

(g) Notwithstanding subdivisions (a) and (b), the board shall
by regulation establish conditions to permit the temporary absence
of a pharmacist for breaks and lunch periods pursuant to Section
512 of the Labor Code and the orders of the Industrial Welfare
Commission without closing the pharmacy. During these temporary
absences, a pharmacy technician may, at the discretion of the
pharmacist, remain in the pharmacy but may only perform
nondiscretionary tasks. The pharmacist shall be responsible for a
pharmacy technician and shall review any task performed by a
pharmacy technician during the pharmacist’s temporary absence.
This subdivision shall not be construed to authorize a pharmacist
to supervise pharmacy technicians in greater ratios than those
described in subdivision (f).

(h) The pharmacist on duty shall be directly responsible for the
conduct of a pharmacy technician supervised by that pharmacist.

(i) In a health care facility licensed under subdivision (a) of
Section 1250 of the Health and Safety Code, a pharmacy
technician’s duties may include any of the following:

(1) Packaging emergency supplies for use in the health care
facility and the hospital’s emergency medical system or as
authorized under Section 4119.

(2) Sealing emergency containers for use in the health care
facility.

(3) Performing monthly checks of the drug supplies stored
throughout the health care facility. Irregularities shall be reported
within 24 hours to the pharmacist in charge and the director or
chief executive officer of the health care facility in accordance
with the health care facility’s policies and procedures.

SEC. 6.  

Section 4120 of the Business and Professions Code is
amended to read:

4120.  

(a) A nonresident pharmacy shall not sell or distribute
dangerous drugs or dangerous devices in this state through any
person or media, other than a wholesaler or third-party logistics
provider who has obtained a license pursuant to this chapter or
through a selling or distribution outlet that is licensed as a
wholesaler or third-party logistics provider pursuant to this chapter,
without registering as a nonresident pharmacy.

(b) Applications for a nonresident pharmacy registration shall
be made on a form furnished by the board. The board may require
any information the board deems reasonably necessary to carry
out the purposes of this section.

(c) The Legislature, by enacting this section, does not intend a
license issued to any nonresident pharmacy pursuant to this section
to change or affect the tax liability imposed by Chapter 3
(commencing with Section 23501) of Part 11 of Division 2 of the
Revenue and Taxation Code on any nonresident pharmacy.

(d) The Legislature, by enacting this section, does not intend a
license issued to any nonresident pharmacy pursuant to this section
to serve as any evidence that the nonresident pharmacy is doing
business within this state.

SEC. 7.  

Section 4201 of the Business and Professions Code is
amended to read:

4201.  

(a) Each application to conduct a pharmacy, wholesaler,
third-party logistics provider, or veterinary food-animal drug
retailer shall be made on a form furnished by the board and shall
state the name, address, usual occupation, and professional
qualifications, if any, of the applicant. If the applicant is other than
a natural person, the application shall state the information as to
each person beneficially interested therein.

(b) As used in this section, and subject to subdivision (c), the
term “person beneficially interested” means and includes:

(1) If the applicant is a partnership or other unincorporated
association, each partner or member.

(2) If the applicant is a corporation, each of its officers, directors,
and stockholders, provided that a natural person shall not be
deemed to be beneficially interested in a nonprofit corporation.

(3) If the applicant is a limited liability company, each officer,
manager, or member.

(c) If the applicant is a partnership or other unincorporated
association, a limited liability company, or a corporation, and the
number of partners, members, or stockholders, as the case may
be, exceeds five, the application shall so state, and shall further
state the information required by subdivision (a) as to each of the
five partners, members, or stockholders who own the five largest
interests in the applicant entity. Upon request by the executive
officer, the applicant shall furnish the board with the information
required by subdivision (a) as to partners, members, or stockholders
not named in the application, or shall refer the board to an
appropriate source of that information.

(d) The application shall contain a statement to the effect that
the applicant has not been convicted of a felony and has not
violated any of the provisions of this chapter. If the applicant
cannot make this statement, the application shall contain a
statement of the violation, if any, or reasons which will prevent
the applicant from being able to comply with the requirements
with respect to the statement.

(e) Upon the approval of the application by the board and
payment of the fee required by this chapter for each pharmacy,
wholesaler, third-party logistics provider, or veterinary food-animal
drug retailer, the executive officer of the board shall issue a license
to conduct a pharmacy, wholesaler, third-party logistics provider,
or veterinary food-animal drug retailer if all of the provisions of
this chapter have been complied with.

(f) Notwithstanding any other law, the pharmacy license shall
authorize the holder to conduct a pharmacy. The license shall be
renewed annually and shall not be transferable.

(g) Notwithstanding any other law, the wholesaler license shall
authorize the holder to wholesale dangerous drugs and dangerous
devices. The license shall be renewed annually and shall not be
transferable.

(h) Notwithstanding any other law, the third-party logistics
provider license shall authorize the holder to provide or coordinate
warehousing, distribution, or other similar services of dangerous
drugs and dangerous devices. The license shall be renewed annually
and shall not be transferable.

(i) Notwithstanding any other law, the veterinary food-animal
drug retailer license shall authorize the holder to conduct a
veterinary food-animal drug retailer and to sell and dispense
veterinary food-animal drugs as defined in Section 4042.

(j) For licenses referred to in subdivisions (f), (g), (h), and (i),
any change in the proposed beneficial ownership interest shall be
reported to the board within 30 days thereafter upon a form to be
furnished by the board.

SEC. 8.  

Section 4945 of the Business and Professions Code,
as amended by Section 15 of Chapter 983 of the Statutes of 1991,
is repealed.

SEC. 9.  

Section 5082.5 of the Business and Professions Code,
as added by Section 10 of Chapter 704 of the Statutes of 2001, is
repealed.

SEC. 10.  

Section 5095 of the Business and Professions Code,
as added by Section 20 of Chapter 704 of the Statutes of 2001, is
repealed.

SEC. 11.  

Section 7000.6 of the Business and Professions Code,
as added by Section 27 of Chapter 107 of the Statutes of 2002, is
repealed.

SEC. 12.  

Section 7588.2 of the Business and Professions Code,
as added by Section 3 of Chapter 689 of the Statutes of 2002, is
amended and renumbered to read:

7588.6.  

(a) A peace officer of this state or a political
subdivision thereof who engages in off-duty employment solely
and exclusively as a security guard or security officer, and who is
required to be registered as a security guard or security officer
pursuant to this chapter, shall only be subject to the fees required
by subdivision (h) of Section 7588.

(b) A peace officer shall also be subject to the fees required by
paragraphs (1) and (2) of subdivision (i) of Section 7588 if the
peace officer carries or uses a firearm as part of the off-duty
employment and has not received approval of his or her primary
employer, as defined in paragraph (2) of subdivision (i) of Section
7583.9, to carry a firearm while working as a security guard or
security officer, and has not submitted verification of that approval
to the bureau pursuant to subdivision (i) of Section 7583.9.

SEC. 13.  

Section 7590.2 of the Business and Professions Code
is amended to read:

7590.2.  

(a) An “alarm company operator” means a person
who, for any consideration whatsoever, engages in business or
accepts employment to install, maintain, alter, sell on premises,
monitor, or service alarm systems or who responds to alarm
systems except for any alarm agent. “Alarm company operator,”
includes any entity that is retained by a licensed alarm company
operator, a customer, or any other person or entity, to monitor one
or more alarm systems, whether or not the entity performs any
other duties within the definition of an alarm company operator.
The provisions of this chapter, to the extent that they can be made
applicable, shall be applicable to the duties and functions performed
in monitoring alarm systems.

(b) A person licensed as an alarm company operator shall not
conduct any investigation or investigations except those that are
incidental to personal injury, or the theft, loss, embezzlement,
misappropriation, or concealment of any property, or any other
thing enumerated in this section, which he or she has been hired
or engaged to protect.

(c) A person who is licensed, certified, or registered pursuant
to this chapter is exempt from locksmithing requirements, pursuant
to subdivision (e) of Section 6980.12, if the duties performed that
constitute locksmithing are performed in combination with the
installation, maintenance, moving, repairing, replacing, servicing,
or reconfiguration of an alarm system, as defined in subdivision
(n) of Section 7590.1, and limited to work on electronic locks or
access control devices that are controlled by an alarm system
control device, including the removal of existing hardware.

SEC. 14.  

Section 8538 of the Business and Professions Code
is amended to read:

8538.  

(a) A registered structural pest control company shall
provide the owner, or owner’s agent, and tenant of the premises
for which the work is to be done with clear written notice which
contains the following statements and information using words
with common and everyday meaning:

(1) The pest to be controlled.

(2) The pesticide or pesticides proposed to be used and the active
ingredient or ingredients.

(3) “State law requires that you be given the following
information: CAUTION--PESTICIDES ARE TOXIC
CHEMICALS. Structural Pest Control Companies are registered
and regulated by the Structural Pest Control Board, and apply
pesticides which are registered and approved for use by the
Department of Pesticide Regulation and the United States
Environmental Protection Agency. Registration is granted when
the state finds that, based on existing scientific evidence, there are
no appreciable risks if proper use conditions are followed or that
the risks are outweighed by the benefits. The degree of risk depends
upon the degree of exposure, so exposure should be minimized.

“If within 24 hours following application you experience
symptoms similar to common seasonal illness comparable to the
flu, contact your physician or poison control center (telephone
number) and your pest control company immediately.” (This
statement shall be modified to include any other symptoms of
overexposure which are not typical of influenza.)

“For further information, contact any of the following: Your
Pest Control Company (telephone number); for Health
Questions--the County Health Department (telephone number);
for Application Information--the County Agricultural
Commissioner (telephone number), and for Regulatory
Information--the Structural Pest Control Board (telephone number
and address).”

(4) If a contract for periodic pest control has been executed, the
frequency with which the treatment is to be done.

(b) In the case of Branch 1 applications, the notice prescribed
by subdivision (a) shall be provided at least 48 hours prior to
application unless fumigation follows inspection by less than 48
hours.

In the case of Branch 2 or Branch 3 registered company
applications, the notice prescribed by subdivision (a) shall be
provided no later than prior to application.

In either case, the notice shall be given to the owner, or owner’s
agent, and tenant, if there is a tenant, in at least one of the following
ways:

(1) First-class or electronic mail, if an electronic mail address
has been provided.

(2) Posting in a conspicuous place on the real property.

(3) Personal delivery.

If the building is commercial or industrial, a notice shall be
posted in a conspicuous place, unless the owner or owner’s agent
objects, in addition to any other notification required by this
section.

The notice shall only be required to be provided at the time of
the initial treatment if a contract for periodic service has been
executed. If the pesticide to be used is changed, another notice
shall be required to be provided in the manner previously set forth
herein.

(c) Any person or licensee who, or registered company which,
violates any provision of this section is guilty of a misdemeanor
punishable as set forth in Section 8553.

SEC. 15.  

Section 12518 of the Business and Professions Code
is amended to read:

12518.  

A water submeter submitted to a sealer by an owner,
user, or operator for inspection and testing before its initial
installation that is found to be incorrect, as defined in subdivision
(d) of Section 12500, shall be marked with the words “Out of
Order,” in accordance with Section 12506, and shall be returned
to a service agent only if both of the following conditions are met:

(a) The water submeter has no signs of intentional tampering
by which to facilitate fraud.

(b) The water submeter is not placed into service in California.

SEC. 16.  

Section 17530.6 of the Business and Professions
Code is repealed.

SEC. 17.  

Section 17550.42 of the Business and Professions
Code, as added by Section 11 of Chapter 196 of the Statutes of
2003, is amended and renumbered to read:

17550.42.5.  

(a) Within 30 days of the close of the fiscal year
or other reasonable period established by the board of directors,
the Travel Consumer Restitution Corporation shall make publicly
available a statement of the following information concerning the
most recently concluded fiscal year:

(1) The number of claims and approximate dollar amount of
the claims received.

(2) The total number of claims and total dollar amount of claims
paid.

(3) The approximate number and dollar amount of claims denied
or abandoned.

(4) The dollar balance in the restitution fund.

(5) The amount of assessments received from participants and
the operating and administrative costs and expenses of the
corporation.

(6) The number of new participants and the amount of
assessments received from them.

(b) The Travel Consumer Restitution Corporation shall make
publicly available within 15 days of the board of directors’
approval, or other reasonable period established by the board of
directors, the following information:

(1) The approved minutes of meetings of the board of directors.

(2) The approved estimated annual operational budget projecting
the costs of operations and administration for the succeeding fiscal
year, excluding the amount to be paid for claims.

(3) The approved bylaws, as amended, of the Travel Consumer
Restitution Corporation.

(c) Information may be made publicly available as required by
this section by disseminating the information on an Internet Web
site or providing the information by electronic mail to any person
who has requested the information and provided a valid electronic
mail address.

SEC. 18.  

Section 18897.8 of the Business and Professions
Code, as added by Section 2 of Chapter 857 of the Statutes of
1996, is repealed.

SEC. 19.  

Section 19556 of the Business and Professions Code
is amended to read:

19556.  

(a) The distribution shall be made by the distributing
agent to beneficiaries qualified under this article. For purposes of
this article, a beneficiary shall be all of the following:

(1) A nonprofit corporation or organization entitled by law to
receive a distribution made by a distributing agent.

(2) Exempt or entitled to an exemption from taxes measured by
income imposed by this state and the United States.

(3) Engaged in charitable, benevolent, civic, religious,
educational, or veterans’ work similar to that of agencies
recognized by an organized community chest in the State of
California, except that the funds so distributed may be used by the
beneficiary for capital expenditures.

(4) Approved by the board.

(b) At least 30 percent of the distribution shall be made to
charities associated with the horse racing industry. In addition to
this 30 percent of the distribution, another 5 percent of the
distribution shall be paid to a welfare fund described in subdivision
(b) of Section 19641 and another 5 percent of the distribution shall
be paid to a nonprofit corporation, the primary purpose of which
is to assist horsemen and backstretch personnel who are being
affected adversely as a result of alcohol or substance abuse. A
beneficiary otherwise qualified under this section to receive charity
day net proceeds shall not be excluded on the basis that the
beneficiary provides charitable benefits to persons connected with
the care, training, and running of racehorses, except that this type
of beneficiary shall make an accounting to the board within one
calendar year of the date of receipt of any distribution.

(c) (1) In addition to the distribution pursuant to subdivision
(b), a separate 20 percent of the distribution shall be made to a
nonprofit corporation or trust, the directors or trustees of which
shall serve without compensation except for reimbursement for
reasonable expenses, and that has as its sole purpose the
accumulation of endowment funds, the income of which shall be
distributed to qualified disabled jockeys.

(2) To receive a distribution under this subdivision, a nonprofit
corporation or trust shall establish objective qualifications for
disabled jockeys and provide an annual accounting and report to
the board on its activities indicating compliance with the
requirements of this subdivision.

(3) The nonprofit corporation or trust shall, in an amount
proportional to the contributions received pursuant to this
subdivision as a percentage of the total contributions received by
the nonprofit corporation or trust, give preference in assisting
qualified disabled jockeys who meet either of the following criteria:

(A) Jockeys who were disabled while participating in the racing
or training of horses at licensed racing associations or approved
training facilities in California.

(B) Jockeys licensed by the board who were disabled while
participating in the racing or training of horses in a state other than
California.

(d) When the nonprofit corporation or trust described in
subdivision (c) has received distributions in an amount equal to
two million dollars ($2,000,000), the distribution mandated by
subdivision (c) shall cease.

SEC. 20.  

Section 19599 of the Business and Professions Code
is amended to read:

19599.  

An association or fair may offer any form of parimutuel
wagering, as defined by regulations adopted by the board, or as
defined by Chapter 4, Pari-Mutuel Wagering, Model Rules of
Racing, as published by the Association of Racing Commissioners
International. The board may prohibit any form of parimutuel
wagering if it determines that the proposed wagering would
compromise the honesty and integrity of racing in the state. Each
racing association or fair shall include the types of conventional,
exotic, and other wagering it proposes to offer on its application
to conduct a horse racing meeting.

SEC. 21.  

Section 19605.7 of the Business and Professions
Code is amended to read:

19605.7.  

The total percentage deducted from wagers at satellite
wagering facilities in the northern zone shall be the same as the
deductions for wagers at the racetrack where the racing meeting
is being conducted and shall be distributed as set forth in this
section. Amounts deducted under this section shall be distributed
as follows:

(a) (1) For thoroughbred meetings, 1.3 percent of the amount
handled by the satellite wagering facility on conventional and
exotic wagers shall be distributed to the racing association for
payment to the state as a license fee, 2 percent shall be distributed
to the satellite wagering facility as a commission for the right to
do business as a franchise, but not for the use of any real property,
0.54 percent shall be deposited with the official registering agency
pursuant to subdivision (a) of Section 19617.2 and shall thereafter
be distributed in accordance with subdivisions (b), (c), and (d) of
Section 19617.2, 0.033 percent shall be distributed to the Center
for Equine Health, and 0.067 percent shall be distributed to the
California Animal Health and Food Safety Laboratory, School of
Veterinary Medicine, University of California at Davis. It is the
intent of the Legislature that the 0.033 percent of funds distributed
to the Center for Equine Health shall supplement, and not supplant,
other funding sources.

(2) (A) In addition to the distributions specified in paragraph
(1), for thoroughbred meetings, an amount not to exceed 4 percent
of the amount handled by the satellite wagering facility on
conventional and exotic wagers shall be distributed to an
organization described in Section 19608.2 with the mutual consent
of the racing association, the organization representing the
horsemen participating in the meeting, and the board from January
1, 2010, until December 31, 2016. However, the amount shall not
be less than that specified in subparagraph (B), and any amount
greater than the amount specified in subparagraph (B) shall be
approved by the board for no more than 12 months at a time, and
only upon a determination by the board that the greater amount is
in the economic interest of thoroughbred racing.

(B) Commencing January 1, 2017, an amount not to exceed the
amount of actual operating expenses, as determined by the board,
or 2.5 percent of the amount handled by the satellite wagering
facility on conventional and exotic wagers, whichever is less, shall
be distributed to an organization described in Section 19608.2.

(C) A request to the board for a distribution pursuant to
subparagraph (A) shall be accompanied by a report detailing all
receipts and expenditures over the two prior fiscal years of the
funds affected by the request.

(D) The racing association whose request pursuant to
subparagraph (A) has been approved by the board shall provide
subsequent quarterly reports of receipts and expenditures of the
affected funds if requested by the board.

(b) For harness, quarter horse, Appaloosa, Arabian, or mixed
breed meetings, 0.4 percent of the amount handled by the satellite
wagering facility on conventional and exotic wagers shall be
distributed to the racing association for payment to the state as a
license fee, for fair meetings, 1 percent of the amount handled by
the satellite wagering facility on conventional and exotic wagers
shall be distributed to the fair association for payment to the state
as a license fee, 2 percent shall be distributed to the satellite
wagering facility as a commission for the right to do business as
a franchise, but not for the use of any real property, and 6 percent
of the amount handled by the satellite wagering facility or the
amount of actual operating expenses, as determined by the board,
whichever is less, shall be distributed to an organization described
in Section 19608.2. In addition, in the case of quarter horses, 0.4
percent shall be deposited with the official registering agency
pursuant to subdivision (b) of Section 19617.7 and shall thereafter
be distributed in accordance with subdivisions (c), (d), and (e) of
Section 19617.7; in the case of Appaloosas, 0.4 percent shall be
deposited with the official registering agency pursuant to
subdivision (b) of Section 19617.9 and shall thereafter be
distributed in accordance with subdivisions (c), (d), and (e) of
Section 19617.9; in the case of Arabians, 0.4 percent shall be held
by the association to be deposited with the official registering
agency pursuant to Section 19617.8, and shall thereafter be
distributed in accordance with Section 19617.8; in the case of
standardbreds, 0.4 percent shall be distributed for the California
Standardbred Sires Stakes Program pursuant to Section 19619; in
the case of thoroughbreds, 0.48 percent shall be deposited with
the official registering agency pursuant to subdivision (a) of Section
19617.2 and shall thereafter be distributed in accordance with
subdivisions (b), (c), and (d) of Section 19617.2; 0.033 percent
shall be distributed to the Center for Equine Health; and 0.067
percent shall be distributed to the California Animal Health and
Food Safety Laboratory, School of Veterinary Medicine, University
of California at Davis. It is the intent of the Legislature that the
0.033 percent of funds distributed to the Center for Equine Health
shall supplement, and not supplant, other funding sources.

(c) In addition to the distributions specified in subdivisions (a)
and (b), for mixed breed meetings, 1 percent of the total amount
handled by each satellite wagering facility shall be distributed to
an organization described in Section 19608.2 for promotion of the
program at satellite wagering facilities. For harness meetings, 0.5
percent of the total amount handled by each satellite wagering
facility shall be distributed to an organization described in Section
19608.2 for the promotion of the program at satellite wagering
facilities, and 0.5 percent of the total amount handled by each
satellite wagering facility shall be distributed according to a written
agreement for each race meeting between the licensed racing
association and the organization representing the horsemen
participating in the meeting. If, with respect to harness meetings,
there are funds unexpended from this 1 percent, these funds may
be expended for other purposes with the consent of the horsemen
and the racing association to benefit the horsemen, or the racing
association, or both, pursuant to their agreement. For quarter horse
meetings, 0.5 percent of the total amount handled by each satellite
wagering facility on races run in California shall be distributed to
an organization described in Section 19608.2 for the promotion
of the program at satellite wagering facilities, 0.5 percent of the
total amount handled by each satellite wagering facility on
out-of-state and out-of-country imported races shall be distributed
to the official quarter horse registering agency for the purposes of
Section 19617.75, and 0.5 percent of the total amount handled by
each satellite wagering facility on all races shall be distributed
according to a written agreement for each race meeting between
the licensed racing association and the organization representing
the horsemen participating in the meeting.

(d) Additionally, for thoroughbred, harness, quarter horse, mixed
breed, and fair meetings, 0.33 percent of the total amount handled
by each satellite wagering facility shall be paid to the city or county
in which the satellite wagering facility is located pursuant to
Section 19610.3 or 19610.4.

(e) Notwithstanding any other law, a racing association is
responsible for the payment of the state license fee as required by
this section.

SEC. 22.  

Section 25350 of the Business and Professions Code
is amended to read:

25350.  

The department may seize the following alcoholic
beverages:

(a) Alcoholic beverages manufactured or produced in this state
by any person other than licensed manufacturer or wine grower,
regardless of where found.

(b) Beer and wine upon the sale of which the excise tax imposed
by Part 14 (commencing with Section 32001) of Division 2 of the
Revenue and Taxation Code has not been paid, regardless of where
found.

(c) Distilled spirits except (1) distilled spirits located upon
premises for which licenses authorizing the sale of the distilled
spirits have been issued; (2) distilled spirits consigned to and in
the course of transportation to a licensee holding licenses
authorizing the sale of the distilled spirits or for delivery without
this state; (3) distilled spirits upon the sale of which the excise
tax imposed by Part 14 (commencing with Section 32001) of
Division 2 of the Revenue and Taxation Code has been paid;
(4) alcohol or distilled spirits in the possession of a person who
has lawfully purchased it for use in the trades, professions, or
industries and not for beverage use.

(d) Any alcoholic beverage possessed, kept, stored, or owned
with the intent to sell it without a license in violation of this
division.

(e) Notwithstanding any other provision of this section, any
alcoholic beverage acquired, exchanged, purchased, sold, delivered,
or possessed in violation of Sections 23104.2, 23104.3, 23394,
23402, or Chapter 12 (commencing with Section 25000), except
that seizures under this subdivision shall be limited to the actual
package or case of alcoholic beverage acquired, exchanged,
purchased, sold, delivered, or possessed in violation of the
foregoing provisions. Any seizure under this subdivision shall not
exceed one hundred dollars ($100) of alcoholic beverages at retail
price.

SEC. 23.  

Section 25503.6 of the Business and Professions
Code is amended to read:

25503.6.  

(a) Notwithstanding any other provision of this
chapter, a beer manufacturer, the holder of a winegrower’s license,
a distilled spirits rectifier, a distilled spirits manufacturer, or
distilled spirits manufacturer’s agent may purchase advertising
space and time from, or on behalf of, an on-sale retail licensee
subject to all of the following conditions:

(1) The on-sale licensee is the owner, manager, agent of the
owner, assignee of the owner’s advertising rights, or the major
tenant of the owner of any of the following:

(A) An outdoor stadium or a fully enclosed arena with a fixed
seating capacity in excess of 10,000 seats located in Sacramento
County or Alameda County.

(B) A fully enclosed arena with a fixed seating capacity in
excess of 18,000 seats located in Orange County or Los Angeles
County.

(C) An outdoor stadium or fully enclosed arena with a fixed
seating capacity in excess of 8,500 seats located in Kern County.

(D) An exposition park of not less than 50 acres that includes
an outdoor stadium with a fixed seating capacity in excess of 8,000
seats and a fully enclosed arena with an attendance capacity in
excess of 4,500 people, located in San Bernardino County.

(E) An outdoor stadium with a fixed seating capacity in excess
of 10,000 seats located in Yolo County.

(F) An outdoor stadium and a fully enclosed arena with fixed
seating capacities in excess of 10,000 seats located in Fresno
County.

(G) An athletic and entertainment complex of not less than 50
acres that includes within its boundaries an outdoor stadium with
a fixed seating capacity of at least 8,000 seats and a second outdoor
stadium with a fixed seating capacity of at least 3,500 seats located
within Riverside County.

(H) An outdoor stadium with a fixed seating capacity in excess
of 1,500 seats located in Tulare County.

(I) A motorsports entertainment complex of not less than 50
acres that includes within its boundaries an outdoor speedway with
a fixed seating capacity of at least 50,000 seats, located within San
Bernardino County.

(J) An exposition park, owned or operated by a bona fide
nonprofit organization, of not less than 400 acres with facilities
including a grandstand with a seating capacity of at least 8,000
people, at least one exhibition hall greater than 100,000 square
feet, and at least four exhibition halls, each greater than 30,000
square feet, located in the City of Pomona or the City of La Verne
in Los Angeles County.

(K) An outdoor soccer stadium with a fixed seating capacity of
at least 25,000 seats, an outdoor tennis stadium with a fixed
capacity of at least 7,000 seats, an outdoor track and field facility
with a fixed seating capacity of at least 7,000 seats, and an indoor
velodrome with a fixed seating capacity of at least 2,000 seats, all
located within a sports and athletic complex built before January
1, 2005, within the City of Carson in Los Angeles County.

(L) An outdoor professional sports facility with a fixed seating
capacity of at least 4,200 seats located within San Joaquin County.

(M) A fully enclosed arena with a fixed seating capacity in
excess of 13,000 seats in the City of Inglewood.

(N) (i) An outdoor stadium with a fixed seating capacity of at
least 68,000 seats located in the City of Santa Clara.

(ii) A beer manufacturer, the holder of a winegrower’s license,
a distilled spirits rectifier, a distilled spirits manufacturer, or
distilled spirits manufacturer’s agent may purchase advertising
space and time from, or on behalf of, a major tenant of an outdoor
stadium described in clause (i), provided the major tenant does not
hold a retail license, and the advertising may include the placement
of advertising in an on-sale licensed premises operated at the
outdoor stadium.

(2) The outdoor stadium or fully enclosed arena described in
paragraph (1) is not owned by a community college district.

(3) The advertising space or time is purchased only in connection
with the events to be held on the premises of the exposition park,
stadium, or arena owned by the on-sale licensee. With respect to
an exposition park as described in subparagraph (J) of paragraph
(1) that includes at least one hotel, the advertising space or time
shall not be displayed on or in any hotel located in the exposition
park, or purchased in connection with the operation of any hotel
located in the exposition park.

(4) The on-sale licensee serves other brands of beer distributed
by a competing beer wholesaler in addition to the brand
manufactured or marketed by the beer manufacturer, other brands
of wine distributed by a competing wine wholesaler in addition to
the brand produced by the winegrower, and other brands of distilled
spirits distributed by a competing distilled spirits wholesaler in
addition to the brand manufactured or marketed by the distilled
spirits rectifier, the distilled spirits manufacturer, or the distilled
spirits manufacturer’s agent that purchased the advertising space
or time.

(b) Any purchase of advertising space or time pursuant to
subdivision (a) shall be conducted pursuant to a written contract
entered into by the beer manufacturer, the holder of the
winegrower’s license, the distilled spirits rectifier, the distilled
spirits manufacturer, or the distilled spirits manufacturer’s agent
and the on-sale licensee, or with respect to clause (ii) of
subparagraph (N) of paragraph (1) of subdivision (a), the major
tenant of the outdoor stadium.

(c) Any beer manufacturer or holder of a winegrower’s license,
any distilled spirits rectifier, any distilled spirits manufacturer, or
any distilled spirits manufacturer’s agent who, through coercion
or other illegal means, induces, directly or indirectly, a holder of
a wholesaler’s license to fulfill all or part of those contractual
obligations entered into pursuant to subdivision (a) or (b) shall be
guilty of a misdemeanor and shall be punished by imprisonment
in the county jail not exceeding six months, or by a fine in an
amount equal to the entire value of the advertising space, time, or
costs involved in the contract, whichever is greater, plus ten
thousand dollars ($10,000), or by both imprisonment and fine. The
person shall also be subject to license revocation pursuant to
Section 24200.

(d) Any on-sale retail licensee, as described in subdivision (a),
who, directly or indirectly, solicits or coerces a holder of a
wholesaler’s license to solicit a beer manufacturer, a holder of a
winegrower’s license, a distilled spirits rectifier, a distilled spirits
manufacturer, or a distilled spirits manufacturer’s agent to purchase
advertising space or time pursuant to subdivision (a) or (b) shall
be guilty of a misdemeanor and shall be punished by imprisonment
in the county jail not exceeding six months, or by a fine in an
amount equal to the entire value of the advertising space or time
involved in the contract, whichever is greater, plus ten thousand
dollars ($10,000), or by both imprisonment and fine. The person
shall also be subject to license revocation pursuant to Section
24200.

(e) For the purposes of this section, “beer manufacturer” includes
any holder of a beer manufacturer’s license, any holder of an
out-of-state beer manufacturer’s certificate, or any holder of a beer
and wine importer’s general license.

SEC. 24.  

Section 25608 of the Business and Professions Code
is amended to read:

25608.  

(a) Every person who possesses, consumes, sells, gives,
or delivers to another person an alcoholic beverage in or on a public
schoolhouse or the grounds of the schoolhouse, is guilty of a
misdemeanor. This section does not, however, make it unlawful
for a person to acquire, possess, or use an alcoholic beverage in
or on a public schoolhouse, or on the grounds of the schoolhouse,
if any of the following applies:

(1) The alcoholic beverage possessed, consumed, or sold,
pursuant to a license obtained under this division, is wine that is
produced by a bonded winery owned or operated as part of an
instructional program in viticulture and enology.

(2) The alcoholic beverage is acquired, possessed, or used in
connection with a course of instruction given at the school and the
person has been authorized to acquire, possess, or use it by the
governing body or other administrative head of the school.

(3) The public schoolhouse is surplus school property and the
grounds of the schoolhouse are leased to a lessee that is a general
law city with a population of less than 50,000, or the public
schoolhouse is surplus school property and the grounds of the
schoolhouse are located in an unincorporated area and are leased
to a lessee that is a civic organization, and the property is to be
used for community center purposes and no public school education
is to be conducted on the property by either the lessor or the lessee
and the property is not being used by persons under the age of 21
years for recreational purposes at any time during which alcoholic
beverages are being sold or consumed on the premises.

(4) The alcoholic beverages are acquired, possessed, or used
during events at a college-owned or college-operated veterans
stadium with a capacity of over 12,000 people, located in a county
with a population of over 6,000,000 people. As used in this
paragraph, “events” mean football games sponsored by a college,
other than a public community college, or other events sponsored
by noncollege groups.

(5) The alcoholic beverages are acquired, possessed, or used
during an event not sponsored by any college at a performing arts
facility built on property owned by a community college district
and leased to a nonprofit organization that is a public benefit
corporation formed under Part 2 (commencing with Section 5110)
of Division 2 of Title 1 of the Corporations Code. As used in this
paragraph, “performing arts facility” means an auditorium with
more than 300 permanent seats.

(6) The alcoholic beverage is wine for sacramental or other
religious purposes and is used only during authorized religious
services held on or before January 1, 1995.

(7) The alcoholic beverages are acquired, possessed, or used
during an event at a community center owned by a community
services district or a city and the event is not held at a time when
students are attending a public school-sponsored activity at the
center.

(8) The alcoholic beverage is wine that is acquired, possessed,
or used during an event sponsored by a community college district
or an organization operated for the benefit of the community
college district where the college district maintains both an
instructional program in viticulture on no less than five acres of
land owned by the district and an instructional program in enology,
which includes sales and marketing.

(9) The alcoholic beverage is acquired, possessed, or used at a
professional minor league baseball game conducted at the stadium
of a community college located in a county with a population of
less than 250,000 inhabitants, and the baseball game is conducted
pursuant to a contract between the community college district and
a professional sports organization.

(10) The alcoholic beverages are acquired, possessed, or used
during events at a college-owned or college-operated stadium or
other facility. As used in this paragraph, “events” means fundraisers
held to benefit a nonprofit corporation that has obtained a license
pursuant to this division for the event. “Events” does not include
football games or other athletic contests sponsored by any college
or public community college. This paragraph does not apply to
any public education facility in which any grade from kindergarten
to grade 12, inclusive, is schooled.

(11) The alcoholic beverages are possessed, consumed, or sold,
pursuant to a license, permit, or authorization obtained under this
division, for an event held at an overnight retreat facility owned
and operated by a county office of education or a school district
at times when pupils are not on the grounds.

(12) The grounds of the public schoolhouse on which the
alcoholic beverage is acquired, possessed, used, or consumed is
property that has been developed and is used for residential
facilities or housing that is offered for rent, lease, or sale
exclusively to faculty or staff of a public school or community
college.

(13) The grounds of a public schoolhouse on which the alcoholic
beverage is acquired, possessed, used, or consumed is property of
a community college that is leased, licensed, or otherwise provided
for use as a water conservation demonstration garden and
community passive recreation resource by a joint powers agency
comprised of public agencies, including the community college,
and the event at which the alcoholic beverage is acquired,
possessed, used, or consumed is conducted pursuant to a written
policy adopted by the governing body of the joint powers agency
and no public funds are used for the purchase or provision of the
alcoholic beverage.

(14) The alcoholic beverage is beer or wine acquired, possessed,
used, sold, or consumed only in connection with a course of
instruction, sponsored dinner, or meal demonstration given as part
of a culinary arts program at a campus of a California community
college and the person has been authorized to acquire, possess,
use, sell, or consume the beer or wine by the governing body or
other administrative head of the school.

(15) The alcoholic beverages are possessed, consumed, or sold,
pursuant to a license or permit obtained under this division for
special events held at the facilities of a public community college
during the special event. As used in this paragraph, “special event”
means events that are held with the permission of the governing
board of the community college district that are festivals, shows,
private parties, concerts, theatrical productions, and other events
held on the premises of the public community college and for
which the principal attendees are members of the general public
or invited guests and not students of the public community college.

(16) The alcoholic beverages are acquired, possessed, or used
during an event at a community college-owned facility in which
any grade from kindergarten to grade 12, inclusive, is schooled,
if the event is held at a time when students in any grades from
kindergarten to grade 12, inclusive, are not present at the facility.
As used in this paragraph, “events” include fundraisers held to
benefit a nonprofit corporation that has obtained a license pursuant
to this division for the event.

(17) The alcoholic beverages are acquired, possessed, used, or
consumed pursuant to a license or permit obtained under this
division for special events held at facilities owned and operated
by an educational agency, a county office of education,
superintendent of schools, school district, or community college
district at a time when pupils are not on the grounds. As used in
this paragraph, “facilities” include, but are not limited to, office
complexes, conference centers, or retreat facilities.

(b) Any person convicted of a violation of this section shall, in
addition to the penalty imposed for the misdemeanor, be barred
from having or receiving any privilege of the use of public school
property that is accorded by Article 2 (commencing with Section
82537) of Chapter 8 of Part 49 of Division 7 of Title 3 the
Education Code.

begin insert

begin insert SEC. 25. end insert   

end insert

begin insert Section 51 of the end insert begin insert Civil Code end insert begin insert is amended to read: end insert

51.  

(a) This section shall be known, and may be cited, as the
Unruh Civil Rights Act.

(b) All persons within the jurisdiction of this state are free and
equal, and no matter what their sex, race, color, religion, ancestry,
national origin, disability, medical condition, genetic information,
marital status, or sexual orientation are entitled to the full and equal
accommodations, advantages, facilities, privileges, or services in
all business establishments of every kind whatsoever.

(c) This section shall not be construed to confer any right or
privilege on a person that is conditioned or limited by law or that
is applicable alike to persons of every sex, color, race, religion,
ancestry, national origin, disability, medical condition, marital
status, or sexual orientation or to persons regardless of their genetic
information.

(d) Nothing in this section shall be construed to require any
construction, alteration, repair, structural or otherwise, or
modification of any sort whatsoever, beyond that construction,
alteration, repair, or modification that is otherwise required by
other provisions of law, to any new or existing establishment,
facility, building, improvement, or any other structure, nor shall
anything in this section be construed to augment, restrict, or alter
in any way the authority of the State Architect to require
construction, alteration, repair, or modifications that the State
Architect otherwise possesses pursuant to other laws.

(e) For purposes of this section:

(1) “Disability” means any mental or physical disability as
defined in Sections 12926 and 12926.1 of the Government Code.

(2) (A) “Genetic information” means, with respect to any
individual, information about any of the following:

(i) The individual’s genetic tests.

(ii) The genetic tests of family members of the individual.

(iii) The manifestation of a disease or disorder in family
members of the individual.

(B) “Genetic information” includes any request for, or receipt
of, genetic services, or participation in clinical research that
includes genetic services, by an individual or any family member
of the individual.

(C) “Genetic information” does not include information about
the sex or age of any individual.

(3) “Medical condition” has the same meaning as defined in
subdivision begin delete (h) end delete begin insert (i) end insert of Section 12926 of the Government Code.

(4) “Religion” includes all aspects of religious belief,
observance, and practice.

(5) “Sex” includes, but is not limited to, pregnancy, childbirth,
or medical conditions related to pregnancy or childbirth. “Sex”
also includes, but is not limited to, a person’s gender. “Gender”
means sex, and includes a person’s gender identity and gender
expression. “Gender expression” means a person’s gender-related
appearance and behavior whether or not stereotypically associated
with the person’s assigned sex at birth.

(6) “Sex, race, color, religion, ancestry, national origin,
disability, medical condition, genetic information, marital status,
or sexual orientation” includes a perception that the person has
any particular characteristic or characteristics within the listed
categories or that the person is associated with a person who has,
or is perceived to have, any particular characteristic or
characteristics within the listed categories.

(7) “Sexual orientation” has the same meaning as defined in
subdivision begin delete (r) end delete begin insert (s) end insert of Section 12926 of the Government Code.

(f) A violation of the right of any individual under the federal
Americans with Disabilities Act of 1990 (P.L. 101-336) shall also
constitute a violation of this section.

begin delete SEC. 25. end delete
begin insert SEC. 26. end insert   

Section 56.36 of the Civil Code is amended to read:

56.36.  

(a) A violation of the provisions of this part that results
in economic loss or personal injury to a patient is punishable as a
misdemeanor.

(b) In addition to any other remedies available at law, an
individual may bring an action against a person or entity who has
negligently released confidential information or records concerning
him or her in violation of this part, for either or both of the
following:

(1) Except as provided in subdivision (e), nominal damages of
one thousand dollars ($1,000). In order to recover under this
paragraph, it is not necessary that the plaintiff suffered or was
threatened with actual damages.

(2) The amount of actual damages, if any, sustained by the
patient.

(c) (1) In addition, a person or entity that negligently discloses
medical information in violation of the provisions of this part shall
also be liable, irrespective of the amount of damages suffered by
the patient as a result of that violation, for an administrative fine
or civil penalty not to exceed two thousand five hundred dollars
($2,500) per violation.

(2) (A) A person or entity, other than a licensed health care
professional, who knowingly and willfully obtains, discloses, or
uses medical information in violation of this part shall be liable
for an administrative fine or civil penalty not to exceed twenty-five
thousand dollars ($25,000) per violation.

(B) A licensed health care professional who knowingly and
willfully obtains, discloses, or uses medical information in violation
of this part shall be liable on a first violation for an administrative
fine or civil penalty not to exceed two thousand five hundred
dollars ($2,500) per violation, on a second violation for an
administrative fine or civil penalty not to exceed ten thousand
dollars ($10,000) per violation, or on a third and subsequent
violation for an administrative fine or civil penalty not to exceed
twenty-five thousand dollars ($25,000) per violation. This
subdivision shall not be construed to limit the liability of a health
care service plan, a contractor, or a provider of health care that is
not a licensed health care professional for a violation of this part.

(3) (A) A person or entity, other than a licensed health care
professional, who knowingly or willfully obtains or uses medical
information in violation of this part for the purpose of financial
gain shall be liable for an administrative fine or civil penalty not
to exceed two hundred fifty thousand dollars ($250,000) per
violation and shall also be subject to disgorgement of any proceeds
or other consideration obtained as a result of the violation.

(B) A licensed health care professional who knowingly and
willfully obtains, discloses, or uses medical information in violation
of this part for financial gain shall be liable on a first violation for
an administrative fine or civil penalty not to exceed five thousand
dollars ($5,000) per violation, on a second violation for an
administrative fine or civil penalty not to exceed twenty-five
thousand dollars ($25,000) per violation, or on a third and
subsequent violation for an administrative fine or civil penalty not
to exceed two hundred fifty thousand dollars ($250,000) per
violation and shall also be subject to disgorgement of any proceeds
or other consideration obtained as a result of the violation. This
subdivision shall not be construed to limit the liability of a health
care service plan, a contractor, or a provider of health care that is
not a licensed health care professional for any violation of this
part.

(4) This subdivision shall not be construed as authorizing an
administrative fine or civil penalty under both paragraphs (2) and
(3) for the same violation.

(5) A person or entity who is not permitted to receive medical
information pursuant to this part and who knowingly and willfully
obtains, discloses, or uses medical information without written
authorization from the patient shall be liable for a civil penalty not
to exceed two hundred fifty thousand dollars ($250,000) per
violation.

(d) In assessing the amount of an administrative fine or civil
penalty pursuant to subdivision (c), the State Department of Public
Health, licensing agency, or certifying board or court shall consider
any of the relevant circumstances presented by any of the parties
to the case including, but not limited to, the following:

(1) Whether the defendant has made a reasonable, good faith
attempt to comply with this part.

(2) The nature and seriousness of the misconduct.

(3) The harm to the patient, enrollee, or subscriber.

(4) The number of violations.

(5) The persistence of the misconduct.

(6) The length of time over which the misconduct occurred.

(7) The willfulness of the defendant’s misconduct.

(8) The defendant’s assets, liabilities, and net worth.

(e) (1) In an action brought by an individual pursuant to
subdivision (b) on or after January 1, 2013, in which the defendant
establishes the affirmative defense in paragraph (2), the court shall
award any actual damages and reasonable attorney’s fees and costs,
but shall not award nominal damages for a violation of this part.

(2) The defendant is entitled to an affirmative defense if all of
the following are established, subject to the equitable
considerations in paragraph (3):

(A) The defendant is a covered entity or business associate, as
defined in Section 160.103 of Title 45 of the Code of Federal
Regulations, in effect as of January 1, 2012.

(B) The defendant has complied with any obligations to notify
all persons entitled to receive notice regarding the release of the
information or records.

(C) The release of confidential information or records was solely
to another covered entity or business associate.

(D) The release of confidential information or records was not
an incident of medical identity theft. For purposes of this
subparagraph, “medical identity theft” means the use of an
individual’s personal information, as defined in Section 1798.80,
without the individual’s knowledge or consent, to obtain medical
goods or services, or to submit false claims for medical services.

(E) The defendant took appropriate preventive actions to protect
the confidential information or records against release consistent
with the defendant’s obligations under this part or other applicable
state law and the Health Insurance Portability and Accountability
Act of 1996 (Public Law 104-191) (HIPAA) and all HIPAA
Administrative Simplification Regulations in effect on January 1,
2012, contained in Parts 160, 162, and 164 of Title 45 of the Code
of Federal Regulations, and Part 2 of Title 42 of the Code of
Federal Regulations, including, but not limited to, all of the
following:

(i) Developing and implementing security policies and
procedures.

(ii) Designating a security official who is responsible for
developing and implementing its security policies and procedures,
including educating and training the workforce.

(iii) Encrypting the information or records, and protecting
against the release or use of the encryption key and passwords, or
transmitting the information or records in a manner designed to
provide equal or greater protections against improper disclosures.

(F) The defendant took reasonable and appropriate corrective
action after the release of the confidential information or records,
and the covered entity or business associate that received the
confidential information or records destroyed or returned the
confidential information or records in the most expedient time
possible and without unreasonable delay, consistent with any
measures necessary to determine the scope of the breach and restore
the reasonable integrity of the data system. A court may consider
this subparagraph to be established if the defendant shows in detail
that the covered entity or business associate could not destroy or
return the confidential information or records because of the
technology utilized.

(G) The covered entity or business associate that received the
confidential information or records, or any of its agents,
independent contractors, or employees, regardless of the scope of
the employee’s employment, did not retain, use, or release the
information or records.

(H) After the release of the confidential information or records,
the defendant took reasonable and appropriate action to prevent a
future similar release of confidential information or records.

(I) The defendant has not previously established an affirmative
defense pursuant to this subdivision, or the court determines, in
its discretion, that application of the affirmative defense is
compelling and consistent with the purposes of this section to
promote reasonable conduct in light of all the facts.

(3) (A) In determining whether the affirmative defense may be
established pursuant to paragraph (2), the court shall consider the
equity of the situation, including, but not limited to, (i) whether
the defendant has previously violated this part, regardless of
whether an action has previously been brought, and (ii) the nature
of the prior violation.

(B) To the extent the court allows discovery to determine
whether there has been any other violation of this part that the
court will consider in balancing the equities, the defendant shall
not provide any medical information, as defined in Section 56.05.
The court, in its discretion, may enter a protective order prohibiting
the further use of any personal information, as defined in Section
1798.80, about the individual whose medical information may
have been disclosed in a prior violation.

(4) In an action under this subdivision in which the defendant
establishes the affirmative defense pursuant to paragraph (2), a
plaintiff shall be entitled to recover reasonable attorney’s fees and
costs without regard to an award of actual or nominal damages or
the imposition of administrative fines or civil penalties.

(5) In an action brought by an individual pursuant to subdivision
(b) on or after January 1, 2013, in which the defendant establishes
the affirmative defense pursuant to paragraph (2), a defendant shall
not be liable for more than one judgment on the merits under this
subdivision for releases of confidential information or records
arising out of the same event, transaction, or occurrence.

(f) (1) The civil penalty pursuant to subdivision (c) shall be
assessed and recovered in a civil action brought in the name of the
people of the State of California in any court of competent
jurisdiction by any of the following:

(A) The Attorney General.

(B) A district attorney.

(C) A county counsel authorized by agreement with the district
attorney in actions involving violation of a county ordinance.

(D) A city attorney of a city.

(E) A city attorney of a city and county having a population in
excess of 750,000, with the consent of the district attorney.

(F) A city prosecutor in a city having a full-time city prosecutor
or, with the consent of the district attorney, by a city attorney in a
city and county.

(G) The State Public Health Officer, or his or her designee, may
recommend that a person described in subparagraphs (A) to (F),
inclusive, bring a civil action under this section.

(2) If the action is brought by the Attorney General, one-half
of the penalty collected shall be paid to the treasurer of the county
in which the judgment was entered, and one-half to the General
Fund. If the action is brought by a district attorney or county
counsel, the penalty collected shall be paid to the treasurer of the
county in which the judgment was entered. Except as provided in
paragraph (3), if the action is brought by a city attorney or city
prosecutor, one-half of the penalty collected shall be paid to the
treasurer of the city in which the judgment was entered and one-half
to the treasurer of the county in which the judgment was entered.

(3) If the action is brought by a city attorney of a city and
county, the entire amount of the penalty collected shall be paid to
the treasurer of the city and county in which the judgment was
entered.

(4) This section shall not be construed as authorizing both an
administrative fine and civil penalty for the same violation.

(5) Imposition of a fine or penalty provided for in this section
shall not preclude imposition of other sanctions or remedies
authorized by law.

(6) Administrative fines or penalties issued pursuant to Section
1280.15 of the Health and Safety Code shall offset any other
administrative fine or civil penalty imposed under this section for
the same violation.

(g) For purposes of this section, “knowing” and “willful” shall
have the same meanings as in Section 7 of the Penal Code.

(h) A person who discloses protected medical information in
accordance with the provisions of this part is not subject to the
penalty provisions of this part.

begin delete SEC. 26. end delete
begin insert SEC. 27. end insert   

Section 1936.5 of the Civil Code, as added by Section
1 of Chapter 406 of the Statutes of 2012, is repealed.

begin delete SEC. 27. end delete
begin insert SEC. 28. end insert   

Section 2923.55 of the Civil Code, as amended by
Section 14 of Chapter 76 of the Statutes of 2013, is repealed.

begin delete SEC. 28. end delete
begin insert SEC. 29. end insert   

Section 2924.19 of the Civil Code, as amended by
Section 10 of Chapter 401 of the Statutes of 2014, is repealed.

begin delete SEC. 29. end delete
begin insert SEC. 30. end insert   

Section 2924.20 of the Civil Code, as amended by
Section 12 of Chapter 401 of the Statutes of 2014, is repealed.

begin delete SEC. 30. end delete
begin insert SEC. 31. end insert   

Section 2934a of the Civil Code, as amended by
Section 1 of Chapter 839 of the Statutes of 1996, is repealed.

begin delete SEC. 31. end delete
begin insert SEC. 32. end insert   

Title 17 (commencing with Section 3272) of Part 4
of Division 3 of the Civil Code, as added by Section 2 of Chapter
698 of the Statutes of 1999, is repealed.

begin delete SEC. 32. end delete
begin insert SEC. 33. end insert   

Section 3486 of the Civil Code is amended to read:

3486.  

(a) To abate the nuisance caused by illegal conduct
involving a controlled substance purpose on real property, the city
prosecutor or city attorney may file, in the name of the people, an
action for unlawful detainer against any person who is in violation
of the nuisance or illegal purpose provisions of subdivision 4 of
Section 1161 of the Code of Civil Procedure, with respect to that
controlled substance purpose. In filing this action, which shall be
based upon an arrest report by a law enforcement agency, reporting
an offense committed on the property and documented by the
observations of a police officer, the city prosecutor or city attorney
shall use the procedures set forth in Chapter 4 (commencing with
Section 1159) of Title 3 of Part 3 of the Code of Civil Procedure,
except that in cases filed under this section, the following also
shall apply:

(1) (A) Prior to filing an action pursuant to this section, the city
prosecutor or city attorney shall give 30 calendar days’ written
notice to the owner, requiring the owner to file an action for the
removal of the person who is in violation of the nuisance or illegal
purpose provisions of subdivision 4 of Section 1161 of the Code
of Civil Procedure with respect to a controlled substance purpose.

(B) This notice shall include sufficient documentation
establishing a violation of the nuisance or illegal purpose provisions
of subdivision 4 of Section 1161 of the Code of Civil Procedure
and an advisement to the owner of the assignment provision
contained in subparagraph (D). The notice shall be served upon
the owner and the tenant in accordance with subdivision (e).

(C) The notice to the tenant shall, in at least 14-point bold type,
meet the following requirements:

(i) The notice shall contain the following language:

 

“(Date)

 

(Name of tenant)

(Address of tenant)

 

Re: Civil Code Section 3486

 

Dear (name of tenant):

 

This letter is to inform you that an eviction action may soon be
filed in court against you for suspected drug activity. According
to state law, Civil Code Section 3486 provides for eviction of
persons engaging in such conduct, as described below.

 

(Name of police department) records indicate that you, (name
of arrestee), were arrested on (date) for violations of (list violations)
on (address of property).

 

A letter has been sent to the property owner(s) advising of your
arrest and the requirements of state law, as well as the landlord’s
option to assign the unlawful detainer action to the (name of city
attorney or prosecutor’s office).

 

A list of legal assistance providers is provided below. Please
note, this list is not exclusive and is provided for your information
only; the (name of city attorney or prosecutor’s office) does not
endorse or recommend any of the listed agencies.

 

Sincerely,

 

(Name of deputy city attorney or city prosecutor)

Deputy City (Attorney or Prosecutor)

 

Notice to Tenant: This notice is not a notice of eviction. You
should call (name of the city attorney or prosecutor pursuing the
action) at (telephone number) or a legal assistance provider to stop
the eviction action if any of the following is applicable:

(1) You are not the person named in this notice.

(2) The person named in the notice does not live with you.

(3) The person named in the notice has permanently moved.

(4) You do not know the person named in the notice.

(5) You want to request that only the person involved in the
nuisance be evicted, allowing the other residents to stay.

(6) You have any other legal defense or legal reason to stop the
eviction action.

A list of legal assistance providers is attached to this notice.
Some provide free legal assistance if you are eligible.”

 

(ii) The notice shall be provided to the tenant in English and,
as translated, in all of the languages identified in subdivision (a)
of Section 1632 of the Civil Code.

(D) The owner shall, within 30 calendar days of the mailing of
the written notice, either provide the city prosecutor or city attorney
with all relevant information pertaining to the unlawful detainer
case, or provide a written explanation setting forth any
safety-related reasons for noncompliance, and an assignment to
the city prosecutor or city attorney of the right to bring an unlawful
detainer action against the tenant.

(E) The assignment shall be on a form provided by the city
prosecutor or city attorney and may contain a provision for costs
of investigation, discovery, and reasonable attorney’s fees, in an
amount not to exceed six hundred dollars ($600). An owner shall
only be required to pay the costs or fees upon acceptance of the
assignment and the filing of the action for unlawful detainer by
the city prosecutor or city attorney.

(F) If the city prosecutor or city attorney accepts the assignment
of the right of the owner to bring the unlawful detainer action, the
owner shall retain all other rights and duties, including the handling
of the tenant’s personal property, following issuance of the writ
of possession and its delivery to and execution by the appropriate
agency.

(2) Upon the failure of the owner to file an action pursuant to
this section, or to respond to the city prosecutor or city attorney
as provided in paragraph (1), or having filed an action, if the owner
fails to prosecute it diligently and in good faith, the city prosecutor
or city attorney may file and prosecute the action, and join the
owner as a defendant in the action. This action shall have
precedence over any similar proceeding thereafter brought by the
owner, or to one previously brought by the owner and not
prosecuted diligently and in good faith. Service of the summons
and complaint upon the defendant owner shall be in accordance
with Sections 415.10, 415.20, 415.30, 415.40, and 415.50 of the
Code of Civil Procedure.

(3) If a jury or court finds the defendant tenant guilty of unlawful
detainer in a case filed pursuant to paragraph (2), the city
prosecutor or city attorney may be awarded costs, including the
costs of investigation and discovery and reasonable attorney’s fees.
These costs shall be assessed against the defendant owner, to whom
notice was directed pursuant to paragraph (1), and once an abstract
of judgment is recorded, it shall constitute a lien on the subject
real property.

(4) This section does not prevent a local governing body from
adopting and enforcing laws, consistent with this article, relating
to drug abatement. If local laws duplicate or supplement this
section, this section shall be construed as providing alternative
remedies and not preempting the field.

(5) This section does not prevent a tenant from receiving relief
against a forfeiture of a lease pursuant to Section 1179 of the Code
of Civil Procedure.

(b) In any proceeding brought under this section, the court may,
upon a showing of good cause, issue a partial eviction ordering
the removal of any person, including, but not limited to, members
of the tenant’s household if the court finds that the person has
engaged in the activities described in subdivision (a). Persons
removed pursuant to this section may be permanently barred from
returning to or reentering any portion of the entire premises. The
court may further order as an express condition of the tenancy that
the remaining tenants shall not give permission to or invite any
person who has been removed pursuant to this subdivision to return
to or reenter any portion of the entire premises.

(c) For the purposes of this section, “controlled substance
purpose” means the manufacture, cultivation, importation into the
state, transportation, possession, possession for sale, sale,
furnishing, administering, or giving away, or providing a place to
use or fortification of a place involving, cocaine, phencyclidine,
heroin, methamphetamine, or any other controlled substance, in a
violation of subdivision (a) of Section 11350, Section 11351,
11351.5, 11352, or 11359, subdivision (a) of Section 11360, or
Section 11366, 11366.6, 11377, 11378, 11378.5, 11379, 11379.5,
11379.6, or 11383 of the Health and Safety Code.

(d) Notwithstanding subdivision (b) of Section 68097.2 of the
Government Code, a public entity may waive all or part of the
costs incurred in furnishing the testimony of a peace officer in an
unlawful detainer action brought pursuant to this section.

(e) The notice and documentation described in paragraph (1)
of subdivision (a) shall be given in writing and may be given either
by personal delivery or by deposit in the United States mail in a
sealed envelope, postage prepaid, addressed to the owner at the
address known to the public entity giving the notice, or as shown
on the last equalized assessment roll, if not known. Separate notice
of not less than 30 calendar days and documentation shall be
provided to the tenant in accordance with this subdivision. Service
by mail shall be deemed to be completed at the time of deposit in
the United States mail. Proof of giving the notice may be made by
a declaration signed under penalty of perjury by any employee of
the public entity which shows service in conformity with this
section.

(f) In an unlawful detainer action filed pursuant to this section,
the court shall make one of the following orders:

(1) If the grounds for an eviction have not been established
pursuant to this section, the court shall dismiss, without prejudice,
the unlawful detainer action.

(2) If the grounds for an eviction have been established pursuant
to this section, the court shall do either of the following:

(A) Order that the tenant and all occupants be immediately
evicted from the property.

(B) Dismiss the unlawful detainer action with or without
prejudice or stay execution of an eviction order for a reasonable
length of time if the tenant establishes by clear and convincing
evidence that the immediate eviction would pose an extreme
hardship to the tenant and that this hardship outweighs the health,
safety, or welfare of the neighbors or surrounding community.
However, the court shall not find an extreme hardship solely on
the basis of an economic hardship or the financial inability of the
tenant to pay for and secure other housing or lodging
accommodations.

(3) If the grounds for a partial eviction have been established
pursuant to subdivision (b), the court shall order that those persons
be immediately removed and barred from the property, but the
court shall not order the tenancy be terminated.

(g) This section applies only in the County of Los Angeles to
a court having jurisdiction over unlawful detainer cases involving
real property situated in the City of Los Angeles.

(h) This section shall become operative on January 1, 2014,
only if the City of Los Angeles has regularly reported to the
California Research Bureau as required by this section as it read
during the period from January 1, 2010, to January 1, 2014,
inclusive. For purposes of this section, the City of Los Angeles
shall be deemed to have complied with this reporting requirement
if the 2013 report to the Legislature by the California Research
Bureau indicates that the City of Los Angeles has regularly reported
to the bureau.

begin delete SEC. 33. end delete
begin insert SEC. 34. end insert   

Section 5910 of the Civil Code is amended to read:

5910.  

A fair, reasonable, and expeditious dispute resolution
procedure shall, at a minimum, satisfy all of the following
requirements:

(a) The procedure may be invoked by either party to the dispute.
A request invoking the procedure shall be in writing.

(b) The procedure shall provide for prompt deadlines. The
procedure shall state the maximum time for the association to act
on a request invoking the procedure.

(c) If the procedure is invoked by a member, the association
shall participate in the procedure.

(d) If the procedure is invoked by the association, the member
may elect not to participate in the procedure. If the member
participates but the dispute is resolved other than by agreement of
the member, the member shall have a right of appeal to the board.

(e) A written resolution, signed by both parties, of a dispute
pursuant to the procedure that is not in conflict with the law or the
governing documents binds the association and is judicially
enforceable. A written agreement, signed by both parties, reached
pursuant to the procedure that is not in conflict with the law or the
governing documents binds the parties and is judicially enforceable.

(f) The procedure shall provide a means by which the member
and the association may explain their positions. The member and
association may be assisted by an attorney or another person in
explaining their positions at their own cost.

(g) A member of the association shall not be charged a fee to
participate in the process.

begin delete SEC. 34. end delete
begin insert SEC. 35. end insert   

Section 5915 of the Civil Code is amended to read:

5915.  

(a) This section applies to an association that does not
otherwise provide a fair, reasonable, and expeditious dispute
resolution procedure. The procedure provided in this section is
fair, reasonable, and expeditious within the meaning of this article.

(b) Either party to a dispute within the scope of this article may
invoke the following procedure:

(1) The party may request the other party to meet and confer in
an effort to resolve the dispute. The request shall be in writing.

(2) A member of an association may refuse a request to meet
and confer. The association shall not refuse a request to meet and
confer.

(3) The board shall designate a director to meet and confer.

(4) The parties shall meet promptly at a mutually convenient
time and place, explain their positions to each other, and confer
in good faith in an effort to resolve the dispute. The parties may
be assisted by an attorney or another person at their own cost when
conferring.

(5) A resolution of the dispute agreed to by the parties shall be
memorialized in writing and signed by the parties, including the
board designee on behalf of the association.

(c) A written agreement reached under this section binds the
parties and is judicially enforceable if it is signed by both parties
and both of the following conditions are satisfied:

(1) The agreement is not in conflict with law or the governing
documents of the common interest development or association.

(2) The agreement is either consistent with the authority granted
by the board to its designee or the agreement is ratified by the
board.

(d) A member shall not be charged a fee to participate in the
process.

begin delete SEC. 35. end delete
begin insert SEC. 36. end insert   

Section 116.222 of the Code of Civil Procedure, as
added by Section 3 of Chapter 600 of the Statutes of 2005, is
repealed.

begin delete SEC. 36. end delete
begin insert SEC. 37. end insert   

The heading of Article 5 (commencing with Section
142) of Chapter 6 of Title 1 of Part 1 of the Code of Civil
Procedure is repealed.

begin delete SEC. 37. end delete
begin insert SEC. 38. end insert   

The heading of Chapter 1 (commencing with Section
156) of Title 2 of Part 1 of the Code of Civil Procedure is repealed.

begin delete SEC. 38. end delete
begin insert SEC. 39. end insert   

Section 398 of the Code of Civil Procedure is
amended to read:

398.  

(a) If a court orders the transfer of an action or proceeding
for a cause specified in subdivisions (b), (c), and (d) of Section
397, the action or proceeding shall be transferred to a court having
jurisdiction of the subject matter of the action upon agreement of
the parties by stipulation in writing, or in open court and entered
in the minutes or docket. If the parties do not so agree, the action
or proceeding shall be transferred to the nearest or most accessible
court where the like objection or cause for making the order does
not exist.

(b) If an action or proceeding is commenced in a court other
than one designated as a proper court for the trial thereof by the
provisions of this title, and the same is ordered transferred for that
reason, the action or proceeding shall be transferred to a proper
court upon agreement of the parties by stipulation in writing, or
in open court and entered in the minutes or docket. If the parties
do not so agree, the action or proceeding shall be transferred to a
proper court in the county in which the action or proceeding was
commenced which the defendant may designate or, if there is no
proper court in that county, to a proper court, in a proper county,
designated by the defendant. If the defendant does not designate
the court as herein provided, or if the court orders the transfer of
an action on its own motion as provided in this title, the action or
proceeding shall be transferred to the proper court as determined
by the court in which the action or proceeding is pending.

(c) The designation of the court by the defendant as provided
for in subdivision (b), may be made in the notice of motion for
change of venue or in open court and entered in the minutes or
docket at the time the order for transfer is made.

begin delete SEC. 39. end delete
begin insert SEC. 40. end insert   

Section 629 of the Code of Civil Procedure is
amended to read:

629.  

(a) The court, before the expiration of its power to rule
on a motion for a new trial, either of its own motion, after five
days’ notice, or on motion of a party against whom a verdict has
been rendered, shall render judgment in favor of the aggrieved
party notwithstanding the verdict whenever a motion for a directed
verdict for the aggrieved party should have been granted had a
previous motion been made.

(b) A motion for judgment notwithstanding the verdict shall be
made within the period specified by Section 659 for the filing and
service of a notice of intention to move for a new trial. The moving,
opposing, and reply briefs and any accompanying documents shall
be filed and served within the periods specified by Section 659a,
and the hearing on the motion shall be set in the same manner as
the hearing on a motion for new trial under Section 660. The
making of a motion for judgment notwithstanding the verdict shall
not extend the time within which a party may file and serve notice
of intention to move for a new trial. The court shall not rule upon
the motion for judgment notwithstanding the verdict until the
expiration of the time within which a motion for a new trial must
be served and filed, and if a motion for a new trial has been filed
with the court by the aggrieved party, the court shall rule upon
both motions at the same time. The power of the court to rule on
a motion for judgment notwithstanding the verdict shall not extend
beyond the last date upon which it has the power to rule on a
motion for a new trial. If a motion for judgment notwithstanding
the verdict is not determined before that date, the effect shall be a
denial of that motion without further order of the court.

(c) If the motion for judgment notwithstanding the verdict is
denied and if a new trial is denied, the appellate court shall, if it
appears that the motion for judgment notwithstanding the verdict
should have been granted, order judgment to be so entered on
appeal from the judgment or from the order denying the motion
for judgment notwithstanding the verdict.

(d) If a new trial is granted to the party moving for judgment
notwithstanding the verdict, and the motion for judgment
notwithstanding the verdict is denied, the order denying the motion
for judgment notwithstanding the verdict shall nevertheless be
reviewable on appeal from that order by the aggrieved party. If
the court grants the motion for judgment notwithstanding the
verdict or of its own motion directs the entry of judgment
notwithstanding the verdict and likewise grants the motion for a
new trial, the order granting the new trial shall be effective only
if, on appeal, the judgment notwithstanding the verdict is reversed,
and the order granting a new trial is not appealed from or, if
appealed from, is affirmed.

begin delete SEC. 40. end delete
begin insert SEC. 41. end insert   

Section 1277 of the Code of Civil Procedure is
amended to read:

1277.  

(a) (1) If a proceeding for a change of name is
commenced by the filing of a petition, except as provided in
subdivisions (b), (c), and (e), the court shall thereupon make an
order reciting the filing of the petition, the name of the person by
whom it is filed, and the name proposed. The order shall direct all
persons interested in the matter to appear before the court at a time
and place specified, which shall be not less than 6 weeks nor more
than 12 weeks from the time of making the order, unless the court
orders a different time, to show cause why the application for
change of name should not be granted. The order shall direct all
persons interested in the matter to make known any objection that
they may have to the granting of the petition for change of name
by filing a written objection, which includes the reasons for the
objection, with the court at least two court days before the matter
is scheduled to be heard and by appearing in court at the hearing
to show cause why the petition for change of name should not be
granted. The order shall state that, if no written objection is timely
filed, the court may grant the petition without a hearing. If the
petition seeks to conform the petitioner’s name to his or her gender
identity and no objection is timely filed, the court shall grant the
petition without a hearing.

(2) A copy of the order to show cause shall be published
pursuant to Section 6064 of the Government Code in a newspaper
of general circulation to be designated in the order published in
the county. If a newspaper of general circulation is not published
in the county, a copy of the order to show cause shall be posted
by the clerk of the court in three of the most public places in the
county in which the court is located, for a like period. Proof shall
be made to the satisfaction of the court of this publication or
posting at the time of the hearing of the application.

(3) Four weekly publications shall be sufficient publication of
the order to show cause. If the order is published in a daily
newspaper, publication once a week for four successive weeks
shall be sufficient.

(4) If a petition has been filed for a minor by a parent and the
other parent, if living, does not join in consenting thereto, the
petitioner shall cause, not less than 30 days before the hearing, to
be served notice of the time and place of the hearing or a copy of
the order to show cause on the other parent pursuant to Section
413.10, 414.10, 415.10, or 415.40. If notice of the hearing cannot
reasonably be accomplished pursuant to Section 415.10 or 415.40,
the court may order that notice be given in a manner that the court
determines is reasonably calculated to give actual notice to the
nonconsenting parent. In that case, if the court determines that
notice by publication is reasonably calculated to give actual notice
to the nonconsenting parent, the court may determine that
publication of the order to show cause pursuant to this subdivision
is sufficient notice to the nonconsenting parent.

(5) If the petition for a change of name is sought in order to
conform the petitioner’s name to his or her gender identity, the
action for a change of name is exempt from the requirement for
publication of the order to show cause under this subdivision.

(b) (1) If the petition for a change of name alleges a reason or
circumstance described in paragraph (2), and the petitioner has
established that he or she is an active participant in the address
confidentiality program created pursuant to Chapter 3.1
(commencing with Section 6205) of Division 7 of Title 1 of the
Government Code, and that the name he or she is seeking to acquire
is on file with the Secretary of State, the action for a change of
name is exempt from the requirement for publication of the order
to show cause under subdivision (a), and the petition and the order
of the court shall, in lieu of reciting the proposed name, indicate
that the proposed name is confidential and is on file with the
Secretary of State pursuant to the provisions of the address
confidentiality program.

(2) The procedure described in paragraph (1) applies to petitions
alleging any of the following reasons or circumstances:

(A) To avoid domestic violence, as defined in Section 6211 of
the Family Code.

(B) To avoid stalking, as defined in Section 646.9 of the Penal
Code.

(C) The petitioner is, or is filing on behalf of, a victim of sexual
assault, as defined in Section 1036.2 of the Evidence Code.

(3) For any petition under this subdivision, the current legal
name of the petitioner shall be kept confidential by the court and
shall not be published or posted in the court’s calendars, indexes,
or register of actions, as required by Article 7 (commencing with
Section 69840) of Chapter 5 of Title 8 of the Government Code,
or by any means or in any public forum, including a hardcopy or
an electronic copy, or any other type of public media or display.

(4) Notwithstanding paragraph (3), the court may, at the request
of the petitioner, issue an order reciting the name of the petitioner
at the time of the filing of the petition and the new legal name of
the petitioner as a result of the court’s granting of the petition.

(5) A petitioner may request that the court file the petition and
any other papers associated with the proceeding under seal. The
court may consider the request at the same time as the petition for
name change, and may grant the request in any case in which the
court finds that all of the following factors apply:

(A) There exists an overriding interest that overcomes the right
of public access to the record.

(B) The overriding interest supports sealing the record.

(C) A substantial probability exists that the overriding interest
will be prejudiced if the record is not sealed.

(D) The proposed order to seal the records is narrowly tailored.

(E) No less restrictive means exist to achieve the overriding
interest.

(c) A proceeding for a change of name for a witness participating
in the state Witness Relocation and Assistance Program established
by Title 7.5 (commencing with Section 14020) of Part 4 of the
Penal Code who has been approved for the change of name by the
program is exempt from the requirement for publication of the
order to show cause under subdivision (a).

(d) If an application for change of name is brought as part of
an action under the Uniform Parentage Act (Part 3 (commencing
with Section 7600) of Division 12 of the Family Code), whether
as part of a petition or cross-complaint or as a separate order to
show cause in a pending action thereunder, service of the
application shall be made upon all other parties to the action in a
like manner as prescribed for the service of a summons, as set forth
in Article 3 (commencing with Section 415.10) of Chapter 4 of
Title 5 of Part 2. Upon the setting of a hearing on the issue, notice
of the hearing shall be given to all parties in the action in a like
manner and within the time limits prescribed generally for the type
of hearing (whether trial or order to show cause) at which the issue
of the change of name is to be decided.

(e) If a guardian files a petition to change the name of his or her
minor ward pursuant to Section 1276:

(1) The guardian shall provide notice of the hearing to any living
parent of the minor by personal service at least 30 days before the
hearing.

(2) If either or both parents are deceased or cannot be located,
the guardian shall cause, not less than 30 days before the hearing,
to be served a notice of the time and place of the hearing or a copy
of the order to show cause on the child’s grandparents, if living,
pursuant to Section 413.10, 414.10, 415.10, or 415.40.

(f) This section shall become operative on July 1, 2014.

begin delete SEC. 41. end delete
begin insert SEC. 42. end insert   

Section 2030.010 of the Code of Civil Procedure is
amended to read:

2030.010.  

(a) Any party may obtain discovery within the scope
delimited by Chapter 2 (commencing with Section 2017.010), and
subject to the restrictions set forth in Chapter 5 (commencing with
Section 2019.010), by propounding to any other party to the action
written interrogatories to be answered under oath.

(b) An interrogatory may relate to whether another party is
making a certain contention, or to the facts, witnesses, and writings
on which a contention is based. An interrogatory is not
objectionable because an answer to it involves an opinion or
contention that relates to fact or the application of law to fact, or
would be based on information obtained or legal theories developed
in anticipation of litigation or in preparation for trial.

begin delete SEC. 42. end delete
begin insert SEC. 43. end insert   

Section 9321.1 of the Commercial Code is amended
to read:

9321.1.  

A licensee of nonexclusive rights in a motion picture
that is produced pursuant to one or more collective bargaining
agreements governed by the laws of the United States takes its
nonexclusive license in that motion picture subject to any perfected
security interest securing the obligation to pay residuals as set forth
in the applicable collective bargaining agreement and arising from
exploitation under the license. The terms “motion picture” and
“residuals” have the meaning ascribed to those terms under the
applicable collective bargaining agreements.

begin delete SEC. 43. end delete
begin insert SEC. 44. end insert   

The heading of Part 6 (commencing with Section
3601) of Division 3 of the Commercial Code is amended to read:

 

Chapter  6. Discharge and Payment

 

begin delete SEC. 44. end delete
begin insert SEC. 45. end insert   

Section 5047 of the Corporations Code is amended
to read:

5047.  

Except as otherwise expressly provided, “directors”
means natural persons, designated in the articles or bylaws or
elected by the incorporators, and their successors and natural
persons designated, elected, or appointed by any other name or
title to act as members of the governing body of the corporation.
If the articles or bylaws designate that a natural person is a director
or a member of the governing body of the corporation by reason
of occupying a specified position within the corporation or outside
the corporation, without limiting that person’s right to vote as a
member of the governing body, that person shall be a director for
all purposes and shall have the same rights and obligations,
including voting rights, as the other directors. A person who does
not have authority to vote as a member of the governing body of
the corporation, is not a director as that term is used in this division
regardless of title.

begin delete SEC. 45. end delete
begin insert SEC. 46. end insert   

Section 12637 of the Corporations Code, as added
by Section 54 of Chapter 589 of the Statutes of 1996, is amended
and renumbered to read:

12638.  

(a) A corporation in the process of winding up may
dispose of the known claims against it by following the procedure
described in this section.

(b) The written notice to known creditors and claimants required
by subdivision (c) of Section 12633 shall comply with all of the
following requirements:

(1) Describe any information that must be included in a claim.

(2) Provide a mailing address where a claim may be sent.

(3) State the deadline, which shall not be fewer than 120 days
from the effective date of the written notice, by which the
corporation must receive the claim.

(4) State that the claim will be barred if not received by the
deadline.

(c) A claim against the corporation is barred if any of the
following occur:

(1) A claimant who has been given the written notice under
subdivision (b) does not deliver the claim to the corporation by
the deadline.

(2) A claimant whose claim was rejected by the corporation
does not commence a proceeding to enforce the claim within 90
days from the effective date of the rejection notice.

(d) For purposes of this section, “claim” does not include a
contingent liability or a claim based on an event occurring after
the effective date of dissolution.

begin delete SEC. 46. end delete
begin insert SEC. 47. end insert   

Section 25620 of the Corporations Code is amended
to read:

25620.  

(a) Notwithstanding any other law, the commissioner
may by rule or order prescribe circumstances under which to accept
electronic records or electronic signatures. This section does not
require the commissioner to accept electronic records or electronic
signatures.

(b) For purposes of this section, the following terms have the
following meanings:

(1) “Electronic record” means a record created, generated, sent,
communicated, received, or stored by electronic means. “Electronic
record” also includes, but is not limited to, all of the following:

(A) An application, amendment, supplement, and exhibit, filed
for any qualification, registration, order, permit, certificate, license,
consent, or other authority.

(B) A financial statement, report, or advertising.

(C) An order, permit, certificate, license, consent, or other
authority.

(D) A notice of public hearing, accusation, and statement of
issues in connection with any application, qualification,
registration, order, permit, certificate, license, consent, or other
authority.

(E) A proposed decision of a hearing officer and a decision of
the commissioner.

(F) The transcripts of a hearing.

(G) A release, newsletter, interpretive opinion, determination,
or specific ruling.

(H) Correspondence between a party and the commissioner
directly relating to any document listed in subparagraphs (A) to
(G), inclusive.

(2) “Electronic signature” means an electronic sound, symbol,
or process attached to or logically associated with an electronic
record and executed or adopted by a person with the intent to sign
the electronic record.

(c) The Legislature finds and declares that the Department of
Business Oversight has continuously implemented methods to
accept records filed electronically, including broker-dealer and
investment adviser applications, and is encouraged to continue to
expand its use of electronic filings to the extent feasible, as budget,
resources, and equipment are made available to accomplish that
goal.

begin delete SEC. 47. end delete
begin insert SEC. 48. end insert   

Section 31116 of the Corporations Code is amended
to read:

31116.  

(a) Except as provided in subdivision (b), if no stop
order under Section 31115 is in effect under this law, registration
of the offer of franchises automatically becomes effective at 12
p.m., California time, of the 30th business day after the filing of
a complete application for registration or the last preeffective
amendment thereto, or at an earlier time that the commissioner
determines.

(b) With respect to any application for registration or the last
amendment thereto filed between January 1, 1971, and March 15,
1971, if no stop order under Section 31115 is in effect under this
law, registration becomes effective on April 15, 1971; with respect
to any application filed after March 15, 1971, and before May 10,
1971, if no stop order under Section 31115 is in effect under this
law, registration becomes effective on June 1, 1971, or the 15th
business day after the filing, whichever is the later, or at an earlier
time that the commissioner determines.

(c) For purposes of this section, “complete application” means
an application that contains the appropriate filing fee, Uniform
Franchise Disclosure Document, and all additional exhibits,
including financial statements in conformity with regulations of
the commissioner. “Preeffective amendment” means an amendment
to an application that is filed before the effective date of the
registration of the sale of franchises.

begin delete SEC. 48. end delete
begin insert SEC. 49. end insert   

Section 31121 of the Corporations Code is amended
to read:

31121.  

(a) The registration may be renewed for additional
periods of one year each, unless the commissioner by rule or order
specifies a different period, by submitting to the commissioner a
renewal application before the expiration of the registration. If no
stop order or other order under Section 31115 is in effect under
this law, registration of the offer of the franchises automatically
becomes renewed effective at 12 p.m., California time, of the 30th
business day after the filing of a complete application for
registration or the last preeffective amendment or at an earlier time
that the commissioner determines.

(b) For purposes of this section, “complete application” means
an application that contains the appropriate filing fee, Uniform
Franchise Disclosure Document, and all additional exhibits,
including financial statements in conformity with regulations of
the commissioner. “Preeffective amendment” means an amendment
to an application that is filed before the effective date of the
registration of the sale of franchises.

begin delete SEC. 49. end delete
begin insert SEC. 50. end insert   

Section 31158 of the Corporations Code is amended
to read:

31158.  

(a) Notwithstanding any other law, the commissioner
may by rule or order prescribe circumstances under which to accept
electronic records or electronic signatures. This section does not
require the commissioner to accept electronic records or electronic
signatures.

(b) For purposes of this section, the following terms have the
following meanings:

(1) “Electronic record” means an initial registration application,
registration renewal statement, preeffective amendment,
posteffective amendment, or material modification and any other
record created, generated, sent, communicated, received, or stored
by electronic means. “Electronic record” also includes, but is not
limited to, all of the following:

(A) An application, amendment, supplement, and exhibit, filed
for any registration, order, license, consent, or other authority.

(B) A financial statement, report, or advertising.

(C) An order, license, consent, or other authority.

(D) A notice of public hearing, accusation, and statement of
issues in connection with any application, registration, order,
license, consent, or other authority.

(E) A proposed decision of a hearing officer and a decision of
the commissioner.

(F) The transcripts of a hearing.

(G) A release, newsletter, interpretive opinion, determination,
or specific ruling.

(H) Correspondence between a party and the commissioner
directly relating to any document listed in subparagraphs (A) to
(G), inclusive.

(2) “Electronic signature” means an electronic sound, symbol,
or process attached to or logically associated with an electronic
record and executed or adopted by a person with the intent to sign
the electronic record.

(c) The Legislature finds and declares that the Department of
Business Oversight has continuously implemented methods to
accept records filed electronically, including broker-dealer and
investment adviser applications, and is encouraged to continue to
expand its use of electronic filings to the extent feasible, as budget,
resources, and equipment are made available to accomplish that
goal.

begin delete SEC. 50. end delete
begin insert SEC. 51. end insert   

Section 1313 of the Education Code is amended to
read:

1313.  

Each county employee whose status is changed by this
article, and who is in employment and a member of a county
retirement system other than one provided by contract with the
Public Employees’ Retirement System on the date of the change,
shall become eligible for membership in the Public Employees’
Retirement System in accordance with the Public Employees’
Retirement Law with respect to his or her employment thereafter,
and shall be subject to the reciprocal benefits provided by said
systems; provided, that the employee may elect to continue in
membership of the county retirement system with respect to his
or her employment thereafter, in which event the same
appropriations and transfers of funds shall be made to the
retirement fund of the county system for the employee as those
required of the county under the county retirement law, and these
amounts shall be legal charges against the county school service
fund. The election authorized by this section shall be made no later
than the date preceding the date upon which his status is changed
in accordance with procedures to be established by the board of
supervisors, which shall allow at least 30 days to make the election.
The election once made shall not be rescinded. An employee who
does not elect to continue membership in the county system shall
be deemed to have discontinued county employment for purposes
of the county system at the close of the day preceding the date
upon which his status changes.

begin delete SEC. 51. end delete
begin insert SEC. 52. end insert   

Section 2575 of the Education Code is amended to
read:

2575.  

(a) Commencing with the 2013-14 fiscal year and for
each fiscal year thereafter, the Superintendent shall calculate a
base entitlement for the transition to the county local control
funding formula for each county superintendent of schools based
on the sum of the amounts computed pursuant to paragraphs (1)
to (3), inclusive, as adjusted pursuant to paragraph (4):

(1) Revenue limits in the 2012-13 fiscal year pursuant to Article
3 (commencing with Section 2550) of Chapter 12, as that article
read on January 1, 2013, adjusted only for changes in average daily
attendance claimed by the county superintendent of schools for
pupils identified in clauses (i), (ii), and (iii) of subparagraph (A)
of paragraph (4) of subdivision (c) of Section 2574 and for pupils
attending juvenile court schools. For purposes of this paragraph,
the calculation of an amount per unit of average daily attendance
for pupils attending juvenile court schools shall be considered final
for purposes of this section as of the annual apportionment for the
2012-13 fiscal year, as calculated for purposes of the certification
required on or before February 20, 2014, pursuant to Sections
41332 and 41339. All other average daily attendance claimed by
the county superintendent of schools and any other average daily
attendance used for purposes of calculating revenue limits pursuant
to Article 3 (commencing with Section 2550) of Chapter 12, as
that article read on January 1, 2013, shall be considered final for
purposes of this section as of the annual apportionment for the
2012-13 fiscal year, as calculated for purposes of the certification
required on or before February 20, 2014, pursuant to Sections
41332 and 41339.

(2) The sum of all of the following:

(A) The amount of funding received from appropriations
contained in Section 2.00 of the Budget Act of 2012, as adjusted
by Section 12.42, in the following items: 6110-104-0001,
6110-105-0001, 6110-107-0001, 6110-108-0001, 6110-111-0001,
6110-124-0001, 6110-128-0001, 6110-137-0001, 6110-144-0001,
6110-156-0001, 6110-181-0001, 6110-188-0001, 6110-189-0001,
6110-190-0001, 6110-193-0001, 6110-195-0001, 6110-198-0001,
6110-204-0001, 6110-208-0001, 6110-209-0001, 6110-211-0001,
6110-212-0001, 6110-227-0001, 6110-228-0001, 6110-232-0001,
6110-240-0001, 6110-242-0001, 6110-243-0001, 6110-244-0001,
6110-245-0001, 6110-246-0001, 6110-247-0001, 6110-248-0001,
6110-260-0001, 6110-265-0001, 6110-266-0001, 6110-267-0001,
6110-268-0001, and 6360-101-0001, 2012-13 fiscal year funding
for the Class Size Reduction Program pursuant to Chapter 6.10
(commencing with Section 52120) of Part 28 of Division 4 of Title
2, as that chapter read on January 1, 2013, and 2012-13 fiscal year
funding for pupils enrolled in community day schools who are
mandatorily expelled pursuant to subdivision (d) of Section 48915.
For purposes of this subparagraph, the 2012-13 fiscal year
appropriations described in this subparagraph shall be considered
final as of the annual apportionment for the 2012-13 fiscal year,
as calculated for purposes of the certification required on or before
February 20, 2014, pursuant to Sections 41332 and 41339.

(B) The amount of local revenues used to support a regional
occupational center or program established and maintained by a
county superintendent of schools pursuant to Section 52301.

(3) For the 2014-15 fiscal year and for each fiscal year
thereafter, the sum of the amounts apportioned to the county
superintendent of schools pursuant to subdivision (f) in all prior
years.

(4) The revenue limit amount determined pursuant to paragraph
(1) shall be increased by the difference determined by subtracting
the amount provided per unit of average daily attendance in
paragraph (1) for pupils attending a school that is eligible for
funding pursuant to paragraph (2) of subdivision (b) of Section
42285 from the amount of funding that was provided to eligible
schools in the 2012-13 fiscal year pursuant to Sections 42284 and
42238.146, as those sections read on January 1, 2013.

(b) The Superintendent shall annually compute a county local
control funding formula transition adjustment for each county
superintendent of schools as follows:

(1) Subtract the amount computed pursuant to subdivision (a)
from the amount computed pursuant to subdivision (e) of Section
2574. A difference of less than zero shall be deemed to be zero.

(2) Divide the difference for each county superintendent of
schools calculated pursuant to paragraph (1) by the total sum of
the differences for all county superintendents of schools calculated
pursuant to paragraph (1).

(3) Multiply the proportion calculated for each county
superintendent of schools pursuant to paragraph (2) by the amount
of funding specifically appropriated for purposes of subdivision
(f). The amount calculated shall not exceed the difference for the
county superintendent of schools calculated pursuant to paragraph
(1).

(c) The Superintendent shall subtract from the amount calculated
pursuant to subdivision (a) the sum of each of the following:

(1) Local property tax revenues received pursuant to Section
2573 in the then current fiscal year.

(2) Any amounts that the county superintendent of schools was
required to maintain as restricted and not available for expenditure
in the 1978-79 fiscal year as specified in the second paragraph of
subdivision (c) of Section 6 of Chapter 292 of the Statutes of 1978,
as amended by Chapter 51 of the Statutes of 1979.

(3) The amount received pursuant to subparagraph (C) of
paragraph (3) of subdivision (a) of Section 33607.5 of the Health
and Safety Code that is considered property taxes pursuant to that
section.

(4) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, 34183, and 34188 of the Health and Safety
Code.

(5) The amount, if any, received pursuant to subparagraph (B)
of paragraph (3) of subdivision (e) of Section 36 of Article XIII
of the California Constitution.

(d) The Superintendent shall subtract from the amount computed
pursuant to subdivision (e) of Section 2574 the sum of the amounts
computed pursuant to paragraphs (1) to (5), inclusive, of
subdivision (c).

(e) The Superintendent shall annually apportion to each county
superintendent of schools the amount calculated pursuant to
subdivision (c) unless the amount computed pursuant to subdivision
(c) is negative. If the amount computed is negative, except as
provided in subdivision (f), an amount of property tax of the county
superintendent of schools equal to the negative amount shall be
deemed restricted and not available for expenditure during the
fiscal year. In the following fiscal year, that amount, excluding
any amount of funds used for purposes of subdivision (f), shall be
considered restricted local property tax revenue for purposes of
subdivision (a) of Section 2578. State aid shall not be apportioned
to the county superintendent of schools pursuant to this subdivision
if the amount computed pursuant to subdivision (c) is negative.

(f) (1) The Superintendent shall apportion, from an
appropriation specifically made for this purpose, the amount
computed pursuant to subdivision (b), or, if the amount computed
pursuant to subdivision (c) is negative, the sum of the amounts
computed pursuant to subdivisions (b) and (c) if the sum is greater
than zero.

(2) The Superintendent shall apportion any portion of the
appropriation made for purposes of paragraph (1) that is not
apportioned pursuant to paragraph (1) pursuant to the following
calculation:

(A) Add the amount calculated pursuant to subdivision (b) to
the amount computed pursuant to subdivision (a) for a county
superintendent of schools.

(B) Subtract the amount computed pursuant to subparagraph
(A) from the amount computed pursuant to subdivision (e) of
Section 2574 for the county superintendent of schools.

(C) Divide the difference for the county superintendent of
schools computed pursuant to subparagraph (B) by the sum of the
differences for all county superintendents of schools computed
pursuant to subparagraph (B).

(D) Multiply the proportion computed pursuant to subparagraph
(C) by the unapportioned balance in the appropriation. That product
shall be the county superintendent of schools’ proportion of total
need.

(E) Apportion to each county superintendent of schools the
amount calculated pursuant to subparagraph (D), or if subdivision
(c) is negative, apportion the sums of subdivisions (b) and (c) and
subparagraph (D) of this subdivision if the sum is greater than
zero.

(F) The Superintendent shall repeat the computation made
pursuant to this paragraph, accounting for any additional amounts
apportioned after each computation, until the appropriation made
for purposes of paragraph (1) is fully apportioned.

(G) The total amount apportioned pursuant to this subdivision
to a county superintendent of schools shall not exceed the
difference for the county superintendent of schools calculated
pursuant to paragraph (1) of subdivision (b).

(H) For purposes of this paragraph, the proportion of need that
is funded from any appropriation made specifically for purposes
of this subdivision in the then current fiscal year shall be considered
fixed as of the second principal apportionment for that fiscal year.
Adjustments to a county superintendent of schools’ total need
computed pursuant to subparagraph (D) after the second principal
apportionment for the then current fiscal year shall be funded based
on the fixed proportion of need that is funded for that fiscal year
pursuant to this subdivision, and shall be continuously appropriated
pursuant to Section 14002.

(g) (1) For a county superintendent of schools for whom, in the
2013-14 fiscal year, the amount computed pursuant to subdivision
(c) is less than the amount computed pursuant to subdivision (d),
in the first fiscal year following the fiscal year in which the sum
of the apportionments computed pursuant to subdivisions (e) and
(f) is equal to, or greater than, the amount computed pursuant to
subdivision (d) of this section, the Superintendent shall apportion
to the county superintendent of schools the amount computed in
subdivision (d) in that fiscal year and each fiscal year thereafter
instead of the amounts computed pursuant to subdivisions (e) and
(f).

(2) For a county superintendent of schools for whom, in the
2013-14 fiscal year, the amount computed pursuant to subdivision
(c) is greater than the amount computed pursuant to subdivision
(d), in the first fiscal year in which the amount computed pursuant
to subdivision (c) would be less than the amount computed pursuant
to subdivision (d), the Superintendent shall apportion to the county
superintendent of schools the amount computed in subdivision (d)
in that fiscal year and each fiscal year thereafter instead of the
amounts computed pursuant to subdivisions (e) and (f).

(3) In each fiscal year, the Superintendent shall determine the
percentage of county superintendents of schools that are
apportioned funding that is less than the amount computed pursuant
to subdivision (d), as of the second principal apportionment of the
fiscal year. If the percentage is less than 10 percent, the
Superintendent shall apportion to those county superintendents of
schools funding equal to the amount computed in subdivision (d)
in that fiscal year and for each fiscal year thereafter instead of the
amounts calculated pursuant to subdivisions (e) and (f).

(4) Commencing with the first fiscal year after the
apportionments in paragraph (3) are made, the adjustments in
paragraph (4) of subdivision (a) of Section 2574 and subparagraph
(B) of paragraph (1) of subdivision (c) of Section 2574 shall be
made only if an appropriation for those purposes is included in the
annual Budget Act.

(5) If the calculation pursuant to subdivision (d) is negative and
the Superintendent apportions to a county superintendent of schools
the amount computed pursuant to subdivision (d) pursuant to
paragraph (1), (2), or (3) of this subdivision, an amount of property
tax of the county superintendent of schools equal to the negative
amount shall be deemed restricted and not available for expenditure
during that fiscal year. In the following fiscal year the restricted
amount shall be considered restricted local property tax revenue
for purposes of subdivision (a) of Section 2578.

(h) Commencing with the 2013-14 fiscal year, the
Superintendent shall apportion to a county superintendent of
schools an amount of state aid, including any amount apportioned
pursuant to subdivisions (f) and (g), that is not less than the amount
calculated in subparagraph (A) of paragraph (2) of subdivision (a).

(i) (1) For the 2013-14 and 2014-15 fiscal years only, a county
superintendent of schools who, in the 2012-13 fiscal year, from
any of the funding sources identified in paragraph (1) or (2) of
subdivision (a), received funds on behalf of, or provided funds to,
a regional occupational center or program joint powers agency
established in accordance with Article 1 (commencing with Section
6500) of Chapter 5 of Division 7 of Title 1 of the Government
Code for purposes of providing instruction to pupils enrolled in
grades 9 to 12, inclusive, shall not redirect that funding for another
purpose unless otherwise authorized by law or pursuant to an
agreement between the regional occupational center or program
joint powers agency and the contracting county superintendent of
schools.

(2) For the 2013-14 and 2014-15 fiscal years only, if a regional
occupational center or program joint powers agency established
in accordance with Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code for
purposes of providing instruction to pupils enrolled in grades 9 to
12, inclusive, received, in the 2012-13 fiscal year, an
apportionment of funds directly from any of the funding sources
identified in subparagraph (A) of paragraph (2) of subdivision (a),
the Superintendent shall apportion that same amount to the regional
occupational center or program joint powers agency.

(j) For the 2013-14 and 2014-15 fiscal years only, a county
superintendent of schools who, in the 2012-13 fiscal year, from
any of the funding sources identified in paragraph (1) or (2) of
subdivision (a), received funds on behalf of, or provided funds to,
a home-to-school transportation joint powers agency established
in accordance with Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code for
purposes of providing pupil transportation shall not redirect that
funding for another purpose unless otherwise authorized by law
or pursuant to an agreement between the home-to-school
transportation joint powers agency and the contracting county
superintendent of schools.

(k) (1) In addition to subdivision (j), of the funds a county
superintendent of schools receives for home-to-school
transportation programs, the county superintendent of schools shall
expend, pursuant to Article 2 (commencing with Section 39820)
of Chapter 1 of Part 23.5 of Division 3 of Title 2, Article 10
(commencing with Section 41850) of Chapter 5 of Part 24 of
Division 3 of Title 2, and the Small School District Transportation
program, as set forth in Article 4.5 (commencing with Section
42290) of Chapter 7 of Part 24 of Division 3 of Title 2, no less for
those programs than the amount of funds the county superintendent
of schools expended for home-to-school transportation in the
2012-13 fiscal year.

(2) For the 2013-14 and 2014-15 fiscal years only, if a
home-to-school transportation joint powers agency established in
accordance with Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code for
purposes of providing pupil transportation received, in the 2012-13
fiscal year, an apportionment of funds directly from the
Superintendent from any of the funding sources identified in
subparagraph (A) of paragraph (2) of subdivision (a), the
Superintendent shall apportion that same amount to the
home-to-school transportation joint powers agency.

(3) For the 2013-14 and 2014-15 fiscal years only, of the funds
a county superintendent of schools receives for purposes of regional
occupational centers or programs, or adult education, the county
superintendent of schools shall expend no less for each of those
programs than the amount of funds the county superintendent of
schools expended for purposes of regional occupational centers
or programs, or adult education, respectively, in the 2012-13 fiscal
year. For purposes of this paragraph, a county superintendent of
schools may include expenditures made by a school district within
the county for purposes of regional occupational centers or
programs so long as the total amount of expenditures made by the
school districts and the county superintendent of schools equals
or exceeds the total amount required to be expended for purposes
of regional occupational centers or programs pursuant to this
paragraph and paragraph (7) of subdivision (a) of Section 42238.03.

(l) The funds apportioned pursuant to this section and Section
2574 shall be available to implement the activities required
pursuant to Article 4.5 (commencing with Section 52060) of
Chapter 6.1 of Part 28 of Division 4 of Title 2.

begin delete SEC. 52. end delete
begin insert SEC. 53. end insert   

Section 2577 of the Education Code is amended to
read:

2577.  

Notwithstanding any other law, revenue limit funding
for county superintendents of schools for the 2012-13 fiscal year
and prior fiscal years shall continue to be adjusted pursuant to
Article 3 (commencing with Section 2550) of Chapter 12, as that
article read on January 1, 2013.

begin delete SEC. 53. end delete
begin insert SEC. 54. end insert   

Section 8261 of the Education Code is amended to
read:

8261.  

(a) The Superintendent shall adopt rules and regulations
pursuant to this chapter. The rules and regulations shall include,
but not be limited to, provisions that do all of the following:

(1) Provide clear guidelines for the selection of agencies when
child development contracts are let, including, but not limited to,
specification that any agency headquartered in the proposed service
area on January 1, 1985, will be given priority for a new contract
in that area, unless the department makes a written determination
that (A) the agency is not able to deliver the level of services
specified in the request for proposal, or (B) the department has
notified the agency that it is not in compliance with the terms of
its contract.

(2) Provide for a contract monitoring system to ensure that
agencies expend funds received pursuant to this chapter in
accordance with the provisions of their contracts.

(3) Specify adequate standards of agency performance.

(4) Establish reporting requirements for service reports,
including provisions for varying the frequency with which these
reports are to be submitted on the basis of agency performance.

(5) Specify standards for withholding payments to agencies that
fail to submit required fiscal reports.

(6) Set forth standards for department site visits to contracting
agencies, including, but not limited to, specification as to the
purpose of the visits, the personnel that will perform these visits,
and the frequency of these visits which shall be as frequently as
staff and budget resources permit. By September 1 of each year,
the department shall report to the Senate Education, Senate Health
and Human Services, Assembly Education, and Assembly Human
Services Committees on the number of visits conducted during
the previous fiscal year pursuant to this paragraph.

(7) Authorize the department to develop a process that requires
every contracting agency to recompete for continued funding no
less frequently than every five years.

(b) The Superintendent shall consult with the State Department
of Social Services with respect to rules and regulations adopted
relative to the disbursal of federal funds under Title XX of the
federal Social Security Act.

(c) For purposes of expediting the implementation of state or
federal legislation to expand child care services, the Superintendent
may waive (1) the regulations regarding the point qualifications
for, and the process and scoring of, interviews of contract
applicants pursuant to Section 18002 of Title 5 of the California
Code of Regulations, or (2) the time limitations for scheduling and
notification of appeal hearings and their results pursuant to Section
18003 of Title 5 of the California Code of Regulations. The
Superintendent shall ensure that the appeal hearings provided for
in Section 18003 of Title 5 of the California Code of Regulations
are conducted in a timely manner.

(d) (1) Child care and development programs operated under
contract from funds made available pursuant to the federal Child
Care and Development Fund, shall be administered according to
Chapter 19 (commencing with Section 17906) of Division 1 of
Title 5 of the California Code of Regulations, unless provisions
of these regulations conflict with federal regulations. If state and
federal regulations conflict, the federal regulations shall apply
unless a waiver of federal regulations is authorized.

(2) For purposes of this section, “Child Care and Development
Fund” has the same meaning as in Section 98.2 of Title 45 of the
Code of Federal Regulations.

begin delete SEC. 54. end delete
begin insert SEC. 55. end insert   

Section 8273.1 of the Education Code is amended to
read:

8273.1.  

(a) Families receiving services pursuant to
subparagraph (B) of paragraph (1) of subdivision (b) of Section
8263 may be exempt from family fees for up to three months.

(b) Families receiving services pursuant to subparagraph (C) of
paragraph (1) of subdivision (b) of Section 8263 may be exempt
from family fees for up to 12 months.

(c) The cumulative period of time of exemption from family
fees for families receiving services pursuant to paragraph (1) of
subdivision (b) of Section 8263 shall not exceed 12 months.

(d) Notwithstanding any other law, a family receiving
CalWORKs cash aid shall not be charged a family fee.

(e) Notwithstanding any other law, commencing with the
2014-15 fiscal year, family fees shall not be assessed for the
part-day California preschool program to income eligible families
whose children are enrolled in that program pursuant to Article 7
(commencing with Section 8235).

begin delete SEC. 55. end delete
begin insert SEC. 56. end insert   

Section 8350.5 of the Education Code, as added by
Section 3 of Chapter 329 of the Statutes of 1998, is repealed.

begin delete SEC. 56. end delete
begin insert SEC. 57. end insert   

Section 8363.1 of the Education Code is amended to
read:

8363.1.  

(a) On or before July 1, 2016, the Commission on
Teacher Credentialing shall review, and update if appropriate, the
requirements for the issuance and renewal of permits authorizing
service in the care, development, and instruction of children in
child care and development programs and permits authorizing
supervision of a child care and development program.

(b) This section shall remain in effect only until January 1, 2017,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2017, deletes or extends that date.

begin delete SEC. 57. end delete
begin insert SEC. 58. end insert   

Section 8450 of the Education Code is amended to
read:

8450.  

(a) All child development contractors are encouraged
to develop and maintain a reserve within the child development
fund, derived from earned but unexpended funds. Child
development contractors may retain all earned funds. For purposes
of this section, “earned funds” are those for which the required
number of eligible service units have been provided.

(b) (1) Earned funds shall not be expended for activities
proscribed by Section 8406.7. Earned but unexpended funds shall
remain in the contractor’s reserve account within the child
development fund and shall be expended only by direct service
child development programs that are funded under contract with
the department.

(2) (A) Commencing July 1, 2011, a contractor may retain a
reserve fund balance, separate from the reserve fund retained
pursuant to subdivision (c) or (d), equal to 5 percent of the sum of
the maximum reimbursable amounts of all contracts to which the
contractor is a party, or two thousand dollars ($2,000), whichever
is greater. This subparagraph applies to direct service child
development contracting agencies that are funded under contract
with the department and are not a California state preschool
program contracting agency.

(B) A California state preschool program contracting agency
may retain a reserve fund balance, separate from the reserve fund
retained pursuant to subdivision (c) or (d), equal to 15 percent of
the sum of the maximum reimbursable amounts of all contracts to
which the contractor is a party, or two thousand dollars ($2,000),
whichever is greater. Of the 15 percent retained, 10 percent shall
solely be used for purposes of professional development for
California state preschool program instructional staff. This
subparagraph applies to California state preschool program
contracting agencies that are funded under contract with the
department.

(c) Notwithstanding subdivisions (a) and (b), a contractor may
retain a reserve fund balance for a resource and referral program,
separate from the balance retained pursuant to subdivision (b) or
(d), not to exceed 3 percent of the contract amount. Funds from
this reserve account may be expended only by resource and referral
programs that are funded under contract with the department.

(d) Notwithstanding subdivisions (a) and (b), a contractor may
retain a reserve fund balance for alternative payment model and
certificate child care contracts, separate from the reserve fund
retained pursuant to subdivisions (b) and (c). Funds from this
reserve account may be expended only by alternative payment
model and certificate child care programs that are funded under
contract with the department. The reserve amount allowed by this
subdivision may not exceed either of the following, whichever is
greater:

(1) Two percent of the sum of the parts of each contract to which
that contractor is a party that is allowed for administration pursuant
to Section 8276.7 and that is allowed for supportive services
pursuant to the provisions of the contract.

(2) One thousand dollars ($1,000).

(e) Each contractor’s audit shall identify any funds earned by
the contractor for each contract through the provision of contracted
services in excess of funds expended.

(f) Any interest earned on reserve funds shall be included in the
fund balance of the reserve. This reserve fund shall be maintained
in an interest-bearing account.

(g) Moneys in a contractor’s reserve fund may be used only for
expenses that are reasonable and necessary costs as defined in
subdivision (n) of Section 8208.

(h) Any reserve fund balance in excess of the amount authorized
pursuant to subdivisions (b), (c), and (d) shall be returned to the
department pursuant to procedures established by the department.

(i) Upon termination of all child development contracts between
a contractor and the department, all moneys in a contractor’s
reserve fund shall be returned to the department pursuant to
procedures established by the department.

(j) Expenditures from, additions to, and balances in, the reserve
fund shall be included in the contracting agency’s annual financial
statements and audit.

begin delete SEC. 58. end delete
begin insert SEC. 59. end insert   

Section 8483.55 of the Education Code is amended
to read:

8483.55.  

(a) From the funds appropriated pursuant to
subdivision (b) of Section 8483.5, the department may spend 1.5
percent to cover evaluation costs and to provide training and
support to ensure quality program implementation, development,
and sustainability and may pay its costs of awarding and monitoring
grants.

(b) Beginning with the 2006-07 fiscal year, 1.5 percent of the
funds appropriated pursuant to this article shall be available to the
department for purposes of providing technical assistance,
evaluation, and training services, and for providing local assistance
funds to support program improvement and technical assistance.

(1) The department shall provide directly, or contract for,
technical assistance for new programs and any program that is not
meeting attendance or performance goals, or both, and requests
that assistance. The department shall allocate an appropriate level
of technical assistance funds to the regional system of support to
support program startup within 45 days after grant awards to
programs.

(2) (A) Training and support shall include, but is not limited
to, the development and distribution of voluntary guidelines for
physical activity programs established pursuant to paragraph (1)
of subdivision (c) of Section 8482.3, that expand the learning
opportunities of the schoolday.

(B) The department shall distribute these voluntary guidelines
for physical activity programs on or before July 1, 2009.

(c) The department shall contract for an independent statewide
evaluation of the effectiveness of programs funded pursuant to
this article to be prepared and submitted to the Legislature. The
evaluation shall include a comparison of outcomes for participating
pupils and similarly situated pupils who did not participate in the
program. A report shall be submitted to the Governor and the
Legislature on or before October 1, 2011, providing data that
includes, but is not limited to, all of the following:

(1) Data collected pursuant to Section 8484.

(2) Data adopted through the process outlined in subdivision
(b) of Section 8421.5 and subdivision (g) of Section 8482.4.

(3) Number and type of sites and grantees participating in the
program.

(4) Pupil program attendance, as reported semiannually, and
pupil schoolday attendance, as reported annually.

(5) Pupil program participation rates.

(6) Quality of program drawing on the research of the Academy
of Sciences on critical features of programs that support healthy
youth development.

(7) The participation rates of local educational agencies.

(8) Local partnerships.

(9) The academic performance of participating pupils in English
language arts and mathematics, as measured by the results of the
Standardized Testing and Reporting (STAR) Program established
pursuant to Section 60640.

(d) A final report shall be submitted to the Governor and the
Legislature on or before December 1, 2011. The final report shall
include, but not be limited to, all of the following:

(1) Updated data on the measures specified in subdivision (b),
including, but not limited to, changes in those measures.

(2) The prevalence and frequency of activities included in
funded programs.

begin delete SEC. 59. end delete
begin insert SEC. 60. end insert   

Section 8490.1 of the Education Code is amended to
read:

8490.1.  

For purposes of this article, the following definitions
shall apply:

(a) “After school program” means the After School Education
and Safety Program (ASES), the 21st Century High School After
School Safety and Enrichment for Teens (High School ASSETs)
program, and other qualified out-of-school time programs that
serve schoolage children outside of regular school hours, including
before school and on weekends.

(b) “DASH recognition program” means the Distinguished After
School Health Recognition Program established pursuant to this
article.

(c) “Program attendee” means a person enrolled in an after
school program.

(d) “Screen time” means time spent viewing or working on
television, videos, computers, and hand-held devices, with or
without Internet access.

begin delete SEC. 60. end delete
begin insert SEC. 61. end insert   

Section 9004 of the Education Code is amended to
read:

9004.  

The department shall select grant recipients from the
northern, southern, and central regions of the state and from urban,
rural, and suburban areas, so that the recipients are broadly
representative of the state.

begin delete SEC. 61. end delete
begin insert SEC. 62. end insert   

Chapter 17 (commencing with Section 11600) of Part
7 of Division 1 of Title 1 of the Education Code is repealed.

begin delete SEC. 62. end delete
begin insert SEC. 63. end insert   

The heading of Article 2 (commencing with Section
12210) of Chapter 2 of Part 8 of Division 1 of Title 1 of the Education Code is repealed.

begin delete SEC. 63. end delete
begin insert SEC. 64. end insert   

Section 17199.4 of the Education Code is amended
to read:

17199.4.  

(a) Notwithstanding any other law, any participating
party, in connection with securing financing or refinancing of
projects, or working capital pursuant to this chapter, may, in
accordance with this section, elect to provide for funding, in whole
or in part, one or more of the following:

(1) Payments on authority bonds.

(2) Payments under credit enhancement or liquidity support
agreements in connection with authority bonds.

(3) Amounts pledged or assigned under one or more pledges or
assignments to pay authority bonds or obligations under these
credit enhancement or liquidity support agreements.

(4) Payments to fund reserves available to pay any of the
payments described in paragraphs (1), (2), and (3), exclusively
until paid.

(5) Fees and charges contemplated by the instruments of the
authority, trustees, tender agents, remarketing agents, credit
enhancement and liquidity support providers, and service providers.

(6) Any other costs necessary or incidental to any financing or
refinancing conducted under this chapter.

(b) The payments made pursuant to subdivision (a) may be in
connection with a financing or refinancing benefiting the
participating party itself, one or more other participating parties,
or any combination thereof.

(c) To participate under this section, the participating party shall
do all of the following:

(1) Elect to participate by an action of its governing board taken
in compliance with the rules of that board.

(2) Provide written notice to the Controller, no later than the
date of the issuance of the bonds or 60 days before the next
payment, whichever is later, of all of the following:

(A) Its election to participate.

(B) A schedule of the payments subject to that election.

(C) The payee or payees of those payments, or the trustee or
agent on their behalf to receive those payments.

(D) (i) Payment delivery instructions, which may be by wire
transfer or other method approved by the Controller.

(ii) If the method of payment delivery is wire transfer, the
participating party shall complete and submit the appropriate
authorization form as prescribed by the Controller.

(d) The participating party may amend, supplement, or restate
the notice required pursuant to paragraph (2) of subdivision (c)
for any reason, including, but not necessarily limited to, providing
for new or increased payments. The participating party shall certify
in the notice and in any amendment, supplement, or restatement
of the notice that each and every payment reflected in the schedule
is a payment described in subdivision (a) and the amounts
scheduled do not exceed the actual or reasonably estimated
payment obligations to be funded pursuant to this section. The
participating party shall also represent in the notice that it is not
submitting the notice for the purpose of accelerating a participating
party’s receipt of its apportionments. Nothing in this section
prohibits transfer by the recipient of an apportionment under this
section to the participating party submitting the notice of the excess
apportionment above the amount needed to fund actual payments
where the excess resulted from erroneous estimation of scheduled
payments or otherwise.

(e) Upon receipt of the notice required by paragraph (2) of
subdivision (c), the Controller shall make an apportionment to the
indicated recipient on the date, or during the period, shown in the
schedule in accordance with the following:

(1) If the participating party requests transfers in full as
scheduled, in the amount of the scheduled transfer or such lesser
amount as is available from the sources indicated in subdivision
(f).

(2) If the participating party does not request transfers in full
as scheduled, in the amount of the anticipated deficiency for the
purpose of making the required payment indicated in a written
request of the participating party to the Controller and in the
amount of the actual shortfall in payment indicated in a written
request of the recipient or the participating party to the Controller
or whatever lesser amount is available from the sources indicated
in subdivision (f).

(3) To the extent funds available for an apportionment are
insufficient to pay the amount set forth in a schedule in any period,
the Controller shall, if and as requested in the notice, reschedule
the payment of all or a portion of the deficiency to a subsequent
period.

(4) In making apportionments under this section, the Controller
may rely conclusively and without liability on any notice or request
delivered under this section, including any notice of request
delivered before enactment of the act that adds this paragraph. The
Controller may make, but is not obligated to make, apportionments
not reflected on a notice or on an amended, supplemented, or
restated notice delivered under this section that the Controller
receives less than 20 days before when the apportionment would
otherwise be required.

(f) The Controller shall make an apportionment under this
section only from moneys designated for apportionment to the
participating party delivering the notice, and only from one or both
of the following:

(1) Any funding apportioned for purposes of revenue limits or
the local control funding formula pursuant to Section 42238.02,
as implemented by Section 42238.03, to a school district or county
office of education without regard to the specific funding source
of the apportionment.

(2) Any funding apportioned for purposes of the charter school
block grant or the local control funding formula pursuant to Section
42238.02, as implemented by Section 42238.03, to a charter school
without regard to the specific funding source of the apportionment.

(g) (1) The amount apportioned for a participating party
pursuant to this section shall be deemed to be an allocation to the
participating party, and shall be included in the computation of
allocation, limit, entitlement, or apportionment for the participating
party.

(2) The participating party and its creditors do not have a claim
to funds apportioned or anticipated to be apportioned by the
Controller pursuant to this section.

(h) (1) The authority may require participation under this section
under the terms of any financing or refinancing under this chapter
to provide for one or more of the payments described in paragraphs
(1), (2), (3), and (4) of subdivision (a). The authority may impose
limits on new participation under this section. The authority may
require participating parties to apply to the authority for
participation. If the authority limits participation under this section,
the authority shall consider each of the following priorities in
making participation available:

(A) First priority shall be given to participating parties that apply
for funding for instructional classroom space under this chapter.

(B) Second priority shall be given to participating parties that
apply for funding of modernization of instructional classroom
space under this chapter.

(C) Third priority shall be given to participating parties that
apply for funding under this chapter for any other eligible costs,
as defined in Section 17173.

(2) The authority shall prioritize applications at appropriate
intervals.

(3) A school district electing to participate under this section
that has applied for revenue bond moneys for purposes of joint
venture school facilities construction projects, pursuant to Article
5 (commencing with Section 17060) of Chapter 12, shall not be
subject to the priorities set forth in paragraph (1).

(i) This section shall not be construed to make the State of
California liable for any payments within the meaning of Section
1 of Article XVI of the California Constitution.

(j) A school district that has a qualified or negative certification
pursuant to Section 42131, or a county office of education that has
a qualified or negative certification pursuant to Section 1240, may
not participate under this section.

(k) This section does not obligate the State of California to make
available the sources of apportionment under subdivision (f) in
any amount or at any time or, except as provided in this section,
to fund any payment described in this section. The addition of this
subdivision is intended solely to clarify existing law.

begin delete SEC. 64. end delete
begin insert SEC. 65. end insert   

Section 17592.74 of the Education Code is amended
to read:

17592.74.  

Notwithstanding any other law, the funds provided
to school districts from the School Facilities Emergency Repair
Account pursuant to this article for the purpose of emergency repair
grants shall not be deposited into a school district deferred
maintenance fund for purposes described in Section 17582.

begin delete SEC. 65. end delete
begin insert SEC. 66. end insert   

The heading of Chapter 11 (commencing with Section
19900) of Part 11 of Division 1 of Title 1 of the Education Code,
as enacted by Chapter 1010 of the Statutes of 1976, is amended
and renumbered to read:

 

Chapter  10.5. Miscellaneous Provisions

 

begin delete SEC. 66. end delete
begin insert SEC. 67. end insert   

The heading of Article 1 (commencing with Section
32200) of Chapter 2 of Part 19 of Division 1 of Title 1 of the Education Code is repealed.

begin delete SEC. 67. end delete
begin insert SEC. 68. end insert   

Section 32282 of the Education Code is amended to
read:

32282.  

(a) The comprehensive school safety plan shall include,
but not be limited to, both of the following:

(1) Assessing the current status of school crime committed on
school campuses and at school-related functions.

(2) Identifying appropriate strategies and programs that will
provide or maintain a high level of school safety and address the
school’s procedures for complying with existing laws related to
school safety, which shall include the development of all of the
following:

(A) Child abuse reporting procedures consistent with Article
2.5 (commencing with Section 11164) of Chapter 2 of Title 1 of
Part 4 of the Penal Code.

(B) Disaster procedures, routine and emergency, including
adaptations for pupils with disabilities in accordance with the
federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec.
12101 et seq.). The disaster procedures shall also include, but not
be limited to, both of the following:

(i) Establishing an earthquake emergency procedure system in
every public school building having an occupant capacity of 50
or more pupils or more than one classroom. A school district or
county office of education may work with the Office of Emergency
Services and the Alfred E. Alquist Seismic Safety Commission to
develop and establish the earthquake emergency procedure system.
The system shall include, but not be limited to, all of the following:

(I) A school building disaster plan, ready for implementation
at any time, for maintaining the safety and care of pupils and staff.

(II) A drop procedure whereby each pupil and staff member
takes cover under a table or desk, dropping to his or her knees,
with the head protected by the arms, and the back to the windows.
A drop procedure practice shall be held at least once each school
quarter in elementary schools and at least once a semester in
secondary schools.

(III) Protective measures to be taken before, during, and
following an earthquake.

(IV) A program to ensure that pupils and both the certificated
and classified staff are aware of, and properly trained in, the
earthquake emergency procedure system.

(ii) Establishing a procedure to allow a public agency, including
the American Red Cross, to use school buildings, grounds, and
equipment for mass care and welfare shelters during disasters or
other emergencies affecting the public health and welfare. The
school district or county office of education shall cooperate with
the public agency in furnishing and maintaining the services as
the school district or county office of education may deem
necessary to meet the needs of the community.

(C) Policies pursuant to subdivision (d) of Section 48915 for
pupils who committed an act listed in subdivision (c) of Section
48915 and other school-designated serious acts which would lead
to suspension, expulsion, or mandatory expulsion recommendations
pursuant to Article 1 (commencing with Section 48900) of Chapter
6 of Part 27 of Division 4 of Title 2.

(D) Procedures to notify teachers of dangerous pupils pursuant
to Section 49079.

(E) A discrimination and harassment policy consistent with the
prohibition against discrimination contained in Chapter 2
(commencing with Section 200) of Part 1.

(F) The provisions of any schoolwide dress code, pursuant to
Section 35183, that prohibits pupils from wearing “gang-related
apparel,” if the school has adopted that type of a dress code. For
those purposes, the comprehensive school safety plan shall define
“gang-related apparel.” The definition shall be limited to apparel
that, if worn or displayed on a school campus, reasonably could
be determined to threaten the health and safety of the school
environment. A schoolwide dress code established pursuant to this
section and Section 35183 shall be enforced on the school campus
and at any school-sponsored activity by the principal of the school
or the person designated by the principal. For purposes of this
paragraph, “gang-related apparel” shall not be considered a
protected form of speech pursuant to Section 48950.

(G) Procedures for safe ingress and egress of pupils, parents,
and school employees to and from school.

(H) A safe and orderly environment conducive to learning at
the school.

(I) The rules and procedures on school discipline adopted
pursuant to Sections 35291 and 35291.5.

(b) It is the intent of the Legislature that schools develop
comprehensive school safety plans using existing resources,
including the materials and services of the partnership, pursuant
to this chapter. It is also the intent of the Legislature that schools
use the handbook developed and distributed by the School/Law
Enforcement Partnership Program entitled “Safe Schools: A
Planning Guide for Action” in conjunction with developing their
plan for school safety.

(c) Each schoolsite council or school safety planning committee,
in developing and updating a comprehensive school safety plan,
shall, where practical, consult, cooperate, and coordinate with
other schoolsite councils or school safety planning committees.

(d) The comprehensive school safety plan may be evaluated
and amended, as needed, by the school safety planning committee,
but shall be evaluated at least once a year, to ensure that the
comprehensive school safety plan is properly implemented. An
updated file of all safety-related plans and materials shall be readily
available for inspection by the public.

(e) As comprehensive school safety plans are reviewed and
updated, the Legislature encourages all plans, to the extent that
resources are available, to include policies and procedures aimed
at the prevention of bullying.

(f) The comprehensive school safety plan, as written and updated
by the schoolsite council or school safety planning committee,
shall be submitted for approval pursuant to subdivision (a) of
Section 32288.

begin delete SEC. 68. end delete
begin insert SEC. 69. end insert   

Section 32289 of the Education Code, as added by
Section 1 of Chapter 272 of the Statutes of 2004, is repealed.

begin delete SEC. 69. end delete
begin insert SEC. 70. end insert   

Section 32289 of the Education Code, as added by
Section 29 of Chapter 896 of the Statutes of 2004, is amended to
read:

32289.  

A complaint of noncompliance with the school safety
planning requirements of Title IV of the federal No Child Left
Behind Act of 2001 (20 U.S.C. Sec. 7114 (d)(7)) may be filed with
the department under the Uniform Complaint Procedures as set
forth in Chapter 5.1 (commencing with Section 4600) of Title 5
of the California Code of Regulations.

begin delete SEC. 70. end delete
begin insert SEC. 71. end insert   

The heading of Article 7 (commencing with Section
33390) of Chapter 3 of Part 20 of Division 2 of Title 2 of the Education Code is repealed.

begin delete SEC. 71. end delete
begin insert SEC. 72. end insert   

Section 35035 of the Education Code is amended to
read:

35035.  

The superintendent of each school district shall, in
addition to other powers and duties granted to or imposed upon
him or her:

(a) Be the chief executive officer of the governing board of the
school district.

(b) Except in a school district where the governing board has
appointed or designated an employee other than the superintendent,
or a deputy, or assistant superintendent, to prepare and submit a
budget, prepare and submit to the governing board of the school
district, at the time it may direct, the budget of the school district
for the next ensuing school year, and revise and take other action
in connection with the budget as the governing board of the school
district may desire.

(c) Be responsible for the preparation and submission to the
governing board of the school district, at the time the governing
board may direct, the local control and accountability plan of the
school district for the subsequent school year, and revise and take
other action in connection with the local control and accountability
plan as the governing board of the school district may desire.

(d) Except in a school district where the governing board has
appointed or designated an employee other than the superintendent,
or a deputy, or assistant superintendent, ensure that the local control
and accountability plan is implemented.

(e) Subject to the approval of the governing board of the school
district, assign all employees of the school district employed in
positions requiring certification qualifications to the positions in
which they are to serve. This power to assign includes the power
to transfer a teacher from one school to another school at which
the teacher is certificated to serve within the school district when
the superintendent concludes that the transfer is in the best interest
of the school district.

(f) Upon adoption by the school district board of a school district
policy concerning transfers of teachers from one school to another
school within the school district, have authority to transfer teachers
consistent with that policy.

(g) Determine that each employee of the school district in a
position requiring certification qualifications has a valid certificated
document registered as required by law authorizing him or her to
serve in the position to which he or she is assigned.

(h) Enter into contracts for and on behalf of the school district
pursuant to Section 17604.

(i) Submit financial and budgetary reports to the governing
board of the school district as required by Section 42130.

begin delete SEC. 72. end delete
begin insert SEC. 73. end insert   

Section 35735.1 of the Education Code is amended
to read:

35735.1.  

(a) The local control funding formula allocation per
unit of average daily attendance for newly organized school
districts shall be equal to the total of the amount of the local control
funding formula allocation pursuant to Section 42238.02, as
implemented by Section 42238.03, per unit of average daily
attendance of the affected school districts computed pursuant to
the computations set forth below. The following computations
shall be made to determine the local control funding formula
allocation pursuant to Section 42238.02, as implemented by Section
42238.03, per unit of average daily attendance for newly organized
school districts:

(1) Based on the current information available for each affected
school district for the second principal apportionment period for
the fiscal year before the fiscal year in which the reorganization
is to become effective, multiply the local control funding formula
allocation pursuant to Section 42238.02, as implemented by Section
42238.03, per unit of average daily attendance for that school
district by the number of units of average daily attendance for that
school district that the county superintendent of schools determines
will be included in the proposed school district.

(2) Add the amounts calculated pursuant to paragraph (1) and
divide that sum by the number of units of average daily attendance
in the newly organized school districts.

(b) The amount determined pursuant to subdivision (a) shall be
the local control funding formula allocation pursuant to Section
42238.02, as implemented by Section 42238.03, per unit of average
daily attendance for newly organized school districts.

(c) The average daily attendance of a newly organized school
district, for purposes of Sections 42238.02 and 42238.03, shall be
the average daily attendance that is attributable to the area
reorganized for the fiscal year before the fiscal year in which the
new school district becomes effective for all purposes.

(d) Notwithstanding this section, commencing with the 2013-14
fiscal year, a newly reorganized school district shall receive
state-aid funding pursuant to paragraph (3) of subdivision (b) of
Section 42238.03 or the total combined per pupil funding amount
received by each school district pursuant to paragraphs (1) and (2)
of subdivision (a) of Section 42238.03 for the fiscal year before
the fiscal year in which the new school district becomes effective
for all purposes, whichever is greater.

(e) Notwithstanding any other law, this section shall not be
subject to waiver by the state board pursuant to Section 33050 or
by the Superintendent.

(f) Upon a determination that all school districts or charter
schools equal or exceed the local control funding formula target
computed pursuant to Section 42238.02 as determined by the
calculation of a zero difference pursuant to paragraph (1) of
subdivision (b) of Section 42238.03, for all school districts and
charter schools, this section shall not apply and newly reorganized
school districts shall receive an allocation equal to the amount
calculated under Section 42238.02 in that fiscal year and future
fiscal years.

begin delete SEC. 73. end delete
begin insert SEC. 74. end insert   

The heading of Chapter 3 (commencing with Section
37400) of Part 22 of Division 3 of Title 2 of the Education Code
is repealed.

begin delete SEC. 74. end delete
begin insert SEC. 75. end insert   

Section 38047.5 of the Education Code is amended
and renumbered to read:

39831.1.  

The state board shall adopt regulations to require a
passenger in a schoolbus equipped with passenger restraint systems
in accordance with Section 27316 of the Vehicle Code to use a
passenger restraint system so that the passenger is properly
restrained by that system.

begin delete SEC. 75. end delete
begin insert SEC. 76. end insert   

Section 38047.6 of the Education Code is amended
and renumbered to read:

39831.2.  

The state board shall adopt regulations to require a
passenger in a school pupil activity bus equipped with passenger
restraint systems in accordance with Section 27316.5 of the Vehicle
Code to use a passenger restraint system so that the passenger is
properly restrained by that system.

begin delete SEC. 76. end delete
begin insert SEC. 77. end insert   

Section 39672 of the Education Code is amended and
renumbered to read:

38001.6.  

(a) Every school peace officer first employed by a
K-12 public school district before July 1, 1999, shall, in order to
retain his or her employment, fulfill both of the following
conditions:

(1) The employee shall submit to the school district one copy
of his or her fingerprints on forms prescribed by the Department
of Justice. The Department of Justice shall forward this copy to
the United States Federal Bureau of Investigation.

(2) The employee shall be determined to be a person who is not
prohibited from employment by a school district pursuant to
Sections 44237 and 45122.1, and, if the employee is required to
carry a firearm, shall be determined by the Department of Justice
to be a person who is not prohibited from possessing a firearm.

(b) The Department of Justice may participate in the National
Instant Criminal Background Check System (NICS) in lieu of
submitting fingerprints to the United States Federal Bureau of
Investigation in order to meet the requirements of this section
relating to firearms.

begin delete SEC. 77. end delete
begin insert SEC. 78. end insert   

Section 41020 of the Education Code is amended to
read:

41020.  

(a) It is the intent of the Legislature to encourage sound
fiscal management practices among local educational agencies for
the most efficient and effective use of public funds for the
education of children in California by strengthening fiscal
accountability at the school district, county, and state levels.

(b) (1) Not later than the first day of May of each fiscal year,
each county superintendent of schools shall provide for an audit
of all funds under his or her jurisdiction and control and the
governing board of each local educational agency shall either
provide for an audit of the books and accounts of the local
educational agency, including an audit of income and expenditures
by source of funds, or make arrangements with the county
superintendent of schools having jurisdiction over the local
educational agency to provide for that auditing.

(2) A contract to perform the audit of a local educational agency
that has a disapproved budget or has received a negative
certification on any budget or interim financial report during the
current fiscal year or either of the two preceding fiscal years, or
for which the county superintendent of schools has otherwise
determined that a lack of going concern exists, is not valid unless
approved by the responsible county superintendent of schools and
the governing board.

(3) If the governing board of a local educational agency has not
provided for an audit of the books and accounts of the local
educational agency by April 1, the county superintendent of schools
having jurisdiction over the local educational agency shall provide
for the audit of each local educational agency.

(4) An audit conducted pursuant to this section shall comply
fully with the Government Auditing Standards issued by the
Comptroller General of the United States.

(5) For purposes of this section, “local educational agency” does
not include community colleges.

(c) Each audit conducted in accordance with this section shall
include all funds of the local educational agency, including the
student body and cafeteria funds and accounts and any other funds
under the control or jurisdiction of the local educational agency.
Each audit shall also include an audit of pupil attendance
procedures. Each audit shall include a determination of whether
funds were expended pursuant to a local control and accountability
plan or an approved annual update to a local control and
accountability plan pursuant to Article 4.5 (commencing with
Section 52060) of Chapter 6.1 of Part 28 of Division 4.

(d) All audit reports for each fiscal year shall be developed and
reported using a format established by the Controller after
consultation with the Superintendent and the Director of Finance.

(e) (1) The cost of the audits provided for by the county
superintendent of schools shall be paid from the county school
service fund and the county superintendent of schools shall transfer
the pro rata share of the cost chargeable to each school district
from school district funds.

(2) The cost of the audit provided for by a governing board of
a local educational agency shall be paid from local educational
agency funds. The audit of the funds under the jurisdiction and
control of the county superintendent of schools shall be paid from
the county school service fund.

(f) (1) The audits shall be made by a certified public accountant
or a public accountant, licensed by the California Board of
Accountancy, and selected by the local educational agency, as
applicable, from a directory of certified public accountants and
public accountants deemed by the Controller as qualified to conduct
audits of local educational agencies, which shall be published by
the Controller not later than December 31 of each year.

(2) Commencing with the 2003-04 fiscal year and except as
provided in subdivision (d) of Section 41320.1, it is unlawful for
a public accounting firm to provide audit services to a local
educational agency if the lead audit partner, or coordinating audit
partner, having primary responsibility for the audit, or the audit
partner responsible for reviewing the audit, has performed audit
services for that local educational agency in each of the six previous
fiscal years. The Education Audits Appeal Panel may waive this
requirement if the panel finds that no otherwise eligible auditor is
available to perform the audit.

(3) It is the intent of the Legislature that, notwithstanding
paragraph (2), the rotation within public accounting firms conform
to provisions of the federal Sarbanes-Oxley Act of 2002 (Public
Law 107-204; 15 U.S.C. Sec. 7201 et seq.), and upon release of
the report required by the act of the Comptroller General of the
United States addressing the mandatory rotation of registered
public accounting firms, the Legislature intends to reconsider the
provisions of paragraph (2). In determining which certified public
accountants and public accountants shall be included in the
directory, the Controller shall use the following criteria:

(A) The certified public accountants or public accountants shall
be in good standing as certified by the Board of Accountancy.

(B) The certified public accountants or public accountants, as
a result of a quality control review conducted by the Controller
pursuant to Section 14504.2, shall not have been found to have
conducted an audit in a manner constituting noncompliance with
subdivision (a) of Section 14503.

(g) (1) The auditor’s report shall include each of the following:

(A) A statement that the audit was conducted pursuant to
standards and procedures developed in accordance with Chapter
3 (commencing with Section 14500) of Part 9 of Division 1 of
Title 1.

(B) A summary of audit exceptions and management
improvement recommendations.

(C) Each audit of a local educational agency shall include an
evaluation by the auditor on whether there is substantial doubt
about the ability of the local educational agency to continue as a
going concern for a reasonable period of time. This evaluation
shall be based on the Statement on Auditing Standards (SAS) No.
59, as issued by the AICPA regarding disclosure requirements
relating to the ability of the entity to continue as a going concern.

(2) To the extent possible, a description of correction or plan
of correction shall be incorporated in the audit report, describing
the specific actions that are planned to be taken, or that have been
taken, to correct the problem identified by the auditor. The
descriptions of specific actions to be taken or that have been taken
shall not solely consist of general comments such as “will
implement,” “accepted the recommendation,” or “will discuss at
a later date.”

(h) Not later than December 15, a report of each local
educational agency audit for the preceding fiscal year shall be filed
with the county superintendent of schools of the county in which
the local educational agency is located, the department, and the
Controller. The Superintendent shall make any adjustments
necessary in future apportionments of all state funds, to correct
any audit exceptions revealed by those audit reports.

(i) (1) Commencing with the 2002-03 audit of local educational
agencies pursuant to this section and subdivision (d) of Section
41320.1, each county superintendent of schools shall be responsible
for reviewing the audit exceptions contained in an audit of a local
educational agency under his or her jurisdiction related to
attendance, inventory of equipment, internal control, and any
miscellaneous items, and determining whether the exceptions have
been either corrected or an acceptable plan of correction has been
developed.

(2) Commencing with the 2004-05 audit of local educational
agencies pursuant to this section and subdivision (d) of Section
41320.1, each county superintendent of schools shall include in
the review of audit exceptions performed pursuant to this
subdivision those audit exceptions related to use of instructional
materials program funds, teacher misassignments pursuant to
Section 44258.9, information reported on the school accountability
report card required pursuant to Section 33126 and shall determine
whether the exceptions are either corrected or an acceptable plan
of correction has been developed.

(j) Upon submission of the final audit report to the governing
board of each local educational agency and subsequent receipt of
the audit by the county superintendent of schools having
jurisdiction over the local educational agency, the county office
of education shall do all of the following:

(1) Review audit exceptions related to attendance, inventory of
equipment, internal control, and other miscellaneous exceptions.
Attendance exceptions or issues shall include, but not be limited
to, those related to local control funding formula allocations
pursuant to Section 42238.02, as implemented by Section 42238.03,
and independent study.

(2) If a description of the correction or plan of correction has
not been provided as part of the audit required by this section, the
county superintendent of schools shall notify the local educational
agency and request the governing board of the local educational
agency to provide to the county superintendent of schools a
description of the corrections or plan of correction by March 15.

(3) Review the description of correction or plan of correction
and determine its adequacy. If the description of the correction or
plan of correction is not adequate, the county superintendent of
schools shall require the local educational agency to resubmit that
portion of its response that is inadequate.

(k) Each county superintendent of schools shall certify to the
Superintendent and the Controller, not later than May 15, that his
or her staff has reviewed all audits of local educational agencies
under his or her jurisdiction for the prior fiscal year, that all
exceptions that the county superintendent was required to review
were reviewed, and that all of those exceptions, except as otherwise
noted in the certification, have been corrected by the local
educational agency or that an acceptable plan of correction has
been submitted to the county superintendent of schools. In addition,
the county superintendent shall identify, by local educational
agency, any attendance-related audit exception or exceptions
involving state funds, and require the local educational agency to
which the audit exceptions were directed to submit appropriate
reporting forms for processing by the Superintendent.

(l) In the audit of a local educational agency for a subsequent
year, the auditor shall review the correction or plan or plans of
correction submitted by the local educational agency to determine
if the exceptions have been resolved. If not, the auditor shall
immediately notify the appropriate county office of education and
the department and restate the exception in the audit report. After
receiving that notification, the department shall either consult with
the local educational agency to resolve the exception or require
the county superintendent of schools to follow up with the local
educational agency.

(m) (1) The Superintendent is responsible for ensuring that
local educational agencies have either corrected or developed plans
of correction for any one or more of the following:

(A) All federal and state compliance audit exceptions identified
in the audit.

(B) Exceptions that the county superintendent of schools certifies
as of May 15 have not been corrected.

(C) Repeat audit exceptions that are not assigned to a county
superintendent of schools to correct.

(2) In addition, the Superintendent is responsible for ensuring
that county superintendents of schools and each county board of
education that serves as the governing board of a local educational
agency either correct all audit exceptions identified in the audits
of county superintendents of schools and of the local educational
agencies for which the county boards of education serve as the
governing boards or develop acceptable plans of correction for
those exceptions.

(3) The Superintendent shall report annually to the Controller
on his or her actions to ensure that school districts, county
superintendents of schools, and each county board of education
that serves as the governing board of a school district have either
corrected or developed plans of correction for any of the exceptions
noted pursuant to paragraph (1).

(n) To facilitate correction of the exceptions identified by the
audits issued pursuant to this section, the Controller shall require
auditors to categorize audit exceptions in each audit report in a
manner that will make it clear to both the county superintendent
of schools and the Superintendent which exceptions they are
responsible for ensuring the correction of by a local educational
agency. In addition, the Controller annually shall select a sampling
of county superintendents of schools and perform a followup of
the audit resolution process of those county superintendents of
schools and report the results of that followup to the Superintendent
and the county superintendents of schools that were reviewed.

(o) County superintendents of schools shall adjust subsequent
local property tax requirements to correct audit exceptions relating
to local educational agency tax rates and tax revenues.

(p) If a governing board or county superintendent of schools
fails or is unable to make satisfactory arrangements for the audit
pursuant to this section, the Controller shall make arrangements
for the audit and the cost of the audit shall be paid from local
educational agency funds or the county school service fund, as the
case may be.

(q) Audits of regional occupational centers and programs are
subject to this section.

(r) This section does not authorize examination of, or reports
on, the curriculum used or provided for in any local educational
agency.

(s) Notwithstanding any other law, a nonauditing, management,
or other consulting service to be provided to a local educational
agency by a certified public accounting firm while the certified
public accounting firm is performing an audit of the agency
pursuant to this section must be in accord with Government
Accounting Standards, Amendment No. 3, as published by the
United States General Accounting Office.

begin delete SEC. 78. end delete
begin insert SEC. 79. end insert   

Section 41207.3 of the Education Code, as added by
Section 11 of Chapter 12 of the Third Extraordinary Session of
the Statutes of 2009, is amended and renumbered to read:

41207.25.  

(a) If the Superintendent and the Director of Finance
jointly determine that, for the 2008-09 fiscal year, the state has
applied moneys for the support of school districts and community
college districts in an amount that exceeds the minimum amount
required for that fiscal year pursuant to Section 8 of Article XVI
of the California Constitution, the excess, up to one billion one
hundred million five hundred ninety thousand dollars
($1,100,590,000), shall be deemed, as of June 30 of that fiscal
year, a payment in satisfaction of the outstanding balance of the
minimum funding obligation under that section for the 2002-03
and 2003-04 fiscal years in accordance with the following:

(1) The first four hundred eighty-three million sixteen thousand
dollars ($483,016,000) in payment of the outstanding balance of
the minimum funding obligation for the 2002-03 fiscal year.

(2) The next six hundred seventeen million five hundred
seventy-four thousand dollars ($617,574,000) in payment of the
outstanding balance of the minimum funding obligation for the
2003-04 fiscal year.

(b) For purposes of this section, the outstanding balance of the
minimum funding obligation to school districts and community
college districts pursuant to Section 8 of Article XVI of the
California Constitution for a fiscal year is the amount, if any, by
which the amount required to be applied by the state for the support
of school districts and community college districts pursuant to
Section 8 of Article XVI of the California Constitution, including
any maintenance factor that should have been allocated in that
fiscal year pursuant to subdivision (e) of Section 8 of Article XVI
of the California Constitution, exceeds the amount applied by the
state for the support of school districts and community college
districts for that fiscal year.

(c) The amounts allocated pursuant to this section shall be
deemed, for purposes of Section 8 of Article XVI of the California
Constitution, to be appropriations made and allocated in the fiscal
year in which the deficiencies resulting in the outstanding balance
were incurred. When the amount determined to be owed for each
such fiscal year is fully allocated pursuant to this subdivision, the
data used in the computations made under this section with regard
to the total amount owed by the state for the support of school
districts and community college districts pursuant to Section 8 of
Article XVI of the California Constitution for that fiscal year,
including as much of the maintenance factor for that fiscal year
determined pursuant to subdivision (d) of Section 8 of Article XVI
of the California Constitution as has been allocated as required by
subdivision (e) of Section 8 of Article XVI of the California
Constitution by virtue of the allocations made under this section,
shall be deemed certified for purposes of Section 41206.

(d) The amount described in subdivision (a) shall be deemed a
payment in full satisfaction of the amounts owed pursuant to
Section 41207.

begin delete SEC. 79. end delete
begin insert SEC. 80. end insert   

Section 41851.1 of the Education Code, as added by
Section 11 of Chapter 82 of the Statutes of 1989, is repealed.

begin delete SEC. 80. end delete
begin insert SEC. 81. end insert   

Section 42127 of the Education Code is amended to
read:

42127.  

(a) On or before July 1 of each year, the governing
board of each school district shall accomplish the following:

(1) Hold a public hearing conducted in accordance with Section
42103 on the budget to be adopted for the subsequent fiscal year.
The budget to be adopted shall be prepared in accordance with
Section 42126. The agenda for that hearing shall be posted at least
72 hours before the public hearing and shall include the location
where the budget will be available for public inspection.

(2) (A) Adopt a budget. Not later than five days after that
adoption or by July 1, whichever occurs first, the governing board
of the school district shall file that budget with the county
superintendent of schools. The budget and supporting data shall
be maintained and made available for public review. If the
governing board of the school district does not want all or a portion
of the property tax requirement levied for the purpose of making
payments for the interest and redemption charges on indebtedness
as described in paragraph (1) or (2) of subdivision (b) of Section
1 of Article XIII A of the California Constitution, the budget shall
include a statement of the amount or portion for which a levy shall
not be made. For the 2014-15 fiscal year and each fiscal year
thereafter, the governing board of the school district shall not adopt
a budget before the governing board of the school district adopts
a local control and accountability plan, if an existing local control
and accountability plan or annual update to a local control and
accountability plan is not effective for the budget year. The
governing board of a school district shall not adopt a budget that
does not include the expenditures necessary to implement the local
control and accountability plan or the annual update to a local
control and accountability plan that is effective for the budget year.

(B) Commencing with the budget adopted for the 2015-16 fiscal
year, the governing board of a school district that proposes to adopt
a budget, or revise a budget pursuant to subdivision (e), that
includes a combined assigned and unassigned ending fund balance
in excess of the minimum recommended reserve for economic
uncertainties adopted by the state board pursuant to subdivision
(a) of Section 33128, shall, at the public hearing held pursuant to
paragraph (1), provide all of the following for public review and
discussion:

(i) The minimum recommended reserve for economic
uncertainties for each fiscal year identified in the budget.

(ii) The combined assigned and unassigned ending fund balances
that are in excess of the minimum recommended reserve for
economic uncertainties for each fiscal year identified in the budget.

(iii) A statement of reasons that substantiates the need for an
assigned and unassigned ending fund balance that is in excess of
the minimum recommended reserve for economic uncertainties
for each fiscal year that the school district identifies an assigned
and unassigned ending fund balance that is in excess of the
minimum recommended reserve for economic uncertainties, as
identified pursuant to clause (ii).

(C) The governing board of a school district shall include the
information required pursuant to subparagraph (B) in its budgetary
submission each time it files an adopted or revised budget with
the county superintendent of schools. The information required
pursuant to subparagraph (B) shall be maintained and made
available for public review.

(b) The county superintendent of schools may accept changes
in any statement included in the budget, pursuant to subdivision
(a), of the amount or portion for which a property tax levy shall
not be made. The county superintendent of schools or the county
auditor shall compute the actual amounts to be levied on the
property tax rolls of the school district for purposes that exceed
apportionments to the school district pursuant to Chapter 6
(commencing with Section 95) of Part 0.5 of Division 1 of the
Revenue and Taxation Code. The school district shall provide all
data needed by the county superintendent of schools or the county
auditor to compute the amounts. On or before August 15, the
county superintendent of schools shall transmit the amounts
computed to the county auditor who shall compute the tax rates
necessary to produce the amounts. On or before September 1, the
county auditor shall submit the rate computed to the county board
of supervisors for adoption.

(c) The county superintendent of schools shall do all of the
following:

(1) Examine the adopted budget to determine whether it
complies with the standards and criteria adopted by the state board
pursuant to Section 33127 for application to final local educational
agency budgets. The county superintendent of schools shall
identify, if necessary, technical corrections that are required to be
made to bring the budget into compliance with those standards
and criteria.

(2) Determine whether the adopted budget will allow the school
district to meet its financial obligations during the fiscal year and
is consistent with a financial plan that will enable the school district
to satisfy its multiyear financial commitments. In addition to his
or her own analysis of the budget of the school district, the county
superintendent of schools shall review and consider studies, reports,
evaluations, or audits of the school district that were commissioned
by the school district, the county superintendent of schools, the
Superintendent, and state control agencies and that contain
evidence that the school district is showing fiscal distress under
the standards and criteria adopted in Section 33127, or that contain
a finding by an external reviewer that more than 3 of the 15 most
common predictors of a school district needing intervention, as
determined by the County Office Fiscal Crisis and Management
Assistance Team, are present. The county superintendent of schools
shall either conditionally approve or disapprove a budget that does
not provide adequate assurance that the school district will meet
its current and future obligations and resolve any problems
identified in studies, reports, evaluations, or audits described in
this paragraph.

(3) Determine whether the adopted budget includes the
expenditures necessary to implement the local control and
accountability plan or annual update to the local control and
accountability plan approved by the county superintendent of
schools.

(4) Determine whether the adopted budget includes a combined
assigned and unassigned ending fund balance that exceeds the
minimum recommended reserve for economic uncertainties. If the
adopted budget includes a combined assigned and unassigned
ending fund balance that exceeds the minimum recommended
reserve for economic uncertainties, the county superintendent of
schools shall verify that the school district complied with the
requirements of subparagraphs (B) and (C) of paragraph (2) of
subdivision (a).

(d) (1) On or before August 15, the county superintendent of
schools shall approve, conditionally approve, or disapprove the
adopted budget for each school district. For the 2014-15 fiscal
year and each fiscal year thereafter, the county superintendent of
schools shall disapprove a budget if the county superintendent of
schools determines that the budget does not include the
expenditures necessary to implement a local control and
accountability plan or an annual update to the local control and
accountability plan approved by the county superintendent of
schools. If the governing board of a school district does not submit
a budget to the county superintendent of schools, the county
superintendent of schools shall develop, at school district expense,
a budget for that school district by September 15 and transmit that
budget to the governing board of the school district. The budget
prepared by the county superintendent of schools shall be deemed
adopted, unless the county superintendent of schools approves any
modifications made by the governing board of the school district.
The budget prepared by the county superintendent of schools shall
also comply with the requirements of subparagraph (B) of
paragraph (2) of subdivision (a). The approved budget shall be
used as a guide for the school district’s priorities. The
Superintendent shall review and certify the budget approved by
the county superintendent of schools. If, pursuant to the review
conducted pursuant to subdivision (c), the county superintendent
of schools determines that the adopted budget for a school district
does not satisfy paragraph (1), (2), (3), or (4) of that subdivision,
he or she shall conditionally approve or disapprove the budget
and, not later than August 15, transmit to the governing board of
the school district, in writing, his or her recommendations regarding
revision of the budget and the reasons for those recommendations,
including, but not limited to, the amounts of any budget
adjustments needed before he or she can approve that budget. The
county superintendent of schools may assign a fiscal adviser to
assist the school district to develop a budget in compliance with
those revisions. In addition, the county superintendent of schools
may appoint a committee to examine and comment on the
superintendent’s review and recommendations, subject to the
requirement that the committee report its findings to the county
superintendent of schools no later than August 20.

(2)  Notwithstanding any other provision of this article, for the
2014-15 fiscal year and each fiscal year thereafter, the budget
shall not be adopted or approved by the county superintendent of
schools before a local control and accountability plan or update to
an existing local control and accountability plan for the budget
year is approved.

(3) If the adopted budget of a school district is conditionally
approved or disapproved pursuant to paragraph (1), on or before
September 8, the governing board of the school district, in
conjunction with the county superintendent of schools, shall review
and respond to the recommendations of the county superintendent
of schools at a regular meeting of the governing board of the school
district. The response shall include any revisions to the adopted
budget and other proposed actions to be taken, if any, as a result
of those recommendations.

(e) On or before September 22, the county superintendent of
schools shall provide a list to the Superintendent identifying all
school districts for which budgets may be disapproved.

(f) (1) The county superintendent of schools shall examine the
revised budget as provided in paragraph (3) of subdivision (d) to
determine whether it (A) complies with the standards and criteria
adopted by the state board pursuant to Section 33127 for
application to final local educational agency budgets, (B) allows
the school district to meet its financial obligations during the fiscal
year, (C) satisfies all conditions established by the county
superintendent of schools in the case of a conditionally approved
budget, (D) is consistent with a financial plan that will enable the
school district to satisfy its multiyear financial commitments, and
(E) complies with the requirements of subparagraph (B) of
paragraph (2) of subdivision (a), and, not later than October 8,
shall approve or disapprove the revised budget. If the county
superintendent of schools disapproves the budget, he or she shall
call for the formation of a budget review committee pursuant to
Section 42127.1, unless the governing board of the school district
and the county superintendent of schools agree to waive the
requirement that a budget review committee be formed and the
department approves the waiver after determining that a budget
review committee is not necessary. Upon the grant of a waiver,
the county superintendent of schools immediately has the authority
and responsibility provided in Section 42127.3. Upon approving
a waiver of the budget review committee, the department shall
ensure that a balanced budget is adopted for the school district by
November 30. If a budget is not adopted by November 30, the
Superintendent may adopt a budget for the school district. The
Superintendent shall report to the Legislature and the Director of
Finance by December 10 if any school district, including a school
district that has received a waiver of the budget review committee
process, does not have an adopted budget by November 30. This
report shall include the reasons why a budget has not been adopted
by the deadline, the steps being taken to finalize budget adoption,
the date the adopted budget is anticipated, and whether the
Superintendent has or will exercise his or her authority to adopt a
budget for the school district.

(2) Notwithstanding any other law, for the 2014-15 fiscal year
and each fiscal year thereafter, if the county superintendent of
schools disapproves the budget for the sole reason that the county
superintendent of schools has not approved a local control and
accountability plan or an annual update to the local control and
accountability plan filed by the governing board of the school
district pursuant to Section 52070, the county superintendent of
schools shall not call for the formation of a budget review
committee pursuant to Section 42127.1.

(g) Not later than October 8, the county superintendent of
schools shall submit a report to the Superintendent identifying all
school districts for which budgets have been disapproved or budget
review committees waived. The report shall include a copy of the
written response transmitted to each of those school districts
pursuant to paragraph (1) of subdivision (d).

(h) Not later than 45 days after the Governor signs the annual
Budget Act, the school district shall make available for public
review any revisions in revenues and expenditures that it has made
to its budget to reflect the funding made available by that Budget
Act.

(i) A school district for which the county board of education
serves as the governing board of the school district is not subject
to subdivisions (c) to (h), inclusive, but is governed instead by the
budget procedures set forth in Section 1622.

begin delete SEC. 81. end delete
begin insert SEC. 82. end insert   

Section 42238.15 of the Education Code is amended
to read:

42238.15.  

(a) Notwithstanding any other law, and in lieu of
any inflation or cost-of-living adjustment otherwise authorized for
the programs enumerated in subdivision (b), state funding for the
programs enumerated in subdivision (b) shall be increased annually
by the product of the following:

(1) The sum of 1.0 plus the percentage change determined under
paragraph (2) of subdivision (d) of Section 42238.02.

(2) The sum of 1.0 plus the percentage of increase, from the
prior fiscal year to the current fiscal year, in each of the workload
factors described in subdivision (b).

(b) The programs for which annual state funding increases are
determined under this section, and the factors used to measure
workload for each of those programs, are as follows:

(1) Special education programs and services, with workload
measured by the regular second principal apportionment average
daily attendance for kindergarten and grades 1 to 12, inclusive.

(2) Child care and development programs, and preschool
programs, with workload measured by the state population of
children up to and including four years of age.

(c) Notwithstanding any other law, child care and development
programs shall not receive a cost-of-living adjustment in the
2012-13, 2013-14, and 2014-15 fiscal years.

begin delete SEC. 82. end delete
begin insert SEC. 83. end insert   

Section 42800 of the Education Code is amended to
read:

42800.  

(a) The governing board of a school district may, with
the consent of the county superintendent of schools, establish a
revolving cash fund for the use of the chief accounting officer of
the school district, by adopting a resolution setting forth the
necessity for the revolving cash fund, the officer for whom and
the purposes for which the revolving cash fund shall be available,
and the amount of the fund. The purposes for which the revolving
cash fund shall be available shall include the purposes specified
in Section 45167. Three certified copies of the resolution shall be
transmitted to the county superintendent of schools. If he or she
approves the establishment of the fund, the county superintendent
of schools shall endorse his or her consent on the resolution and
return one copy to the governing board of the school district, and
transmit one copy to the county auditor.

(b) The maximum amount allowed for revolving cash funds
established pursuant to subdivision (a) shall be the lesser of:

(1) Two percent of the school district’s estimated expenditures
for the current fiscal year, or

(2) A dollar amount limit of seventy-five thousand dollars
($75,000) for any elementary school or high school district and
one hundred fifty thousand dollars ($150,000) for any unified
school district for fiscal year 1990-91. The dollar amount limit
for each school district shall, through the 2012-13 fiscal year, be
increased annually by the percentage increase in the school
district’s revenue limit established by Section 42238, as that section
read on January 1, 2013. The dollar amount limit for each school
district shall thereafter be increased annually by the percentage
increase in the school district’s local control funding formula
allocation established pursuant to Section 42238.02, as
implemented pursuant to Section 42238.03.

begin delete SEC. 83. end delete
begin insert SEC. 84. end insert   

Section 44252 of the Education Code is amended to
read:

44252.  

(a) (1) The commission shall establish standards and
procedures for the initial issuance and renewal of credentials.

(2) (A) The commission shall require an initial or renewal
applicant who submits an initial or renewal application for his or
her credential online, as part of the application process, to read
and attest by electronic signature a statement that the applicant for
the credential understands the duties imposed on a holder of a
teaching credential or a services credential pursuant to the Child
Abuse and Neglect Reporting Act (Article 2.5 (commencing with
Section 11164) of Chapter 2 of Title 1 of Part 4 of the Penal Code),
including, but not limited to, the duty of a holder of a teaching
credential or a services credential to report to any police
department, sheriff’s department, county probation department
authorized to receive reports, or county welfare department,
whenever he or she, in his or her professional capacity or within
the scope of his or her employment, has knowledge of or observes
a child whom the holder of a teaching credential or a services
credential knows or reasonably suspects has been the victim of
child abuse or neglect.

(B) The commission shall require an initial applicant who
submits an application in paper form, as part of the application
process, to read and attest by signature a statement that the
applicant understands the duties imposed on a holder of a teaching
credential or a services credential pursuant to the Child Abuse and
Neglect Reporting Act (Article 2.5 (commencing with Section
11164) of Chapter 2 of Title 1 of Part 4 of the Penal Code),
including, but not limited to, the duty of a holder of a teaching
credential or a services credential to report to any police
department, sheriff’s department, county probation department
authorized to receive reports, or county welfare department,
whenever he or she, in his or her professional capacity or within
the scope of his or her employment, has knowledge of or observes
a child whom the holder of a teaching credential or a services
credential knows or reasonably suspects has been the victim of
child abuse or neglect.

(C) The statement described in subparagraphs (A) and (B) shall
be substantially in the following form:

“As a documentholder authorized to work with children, it is
part of my professional and ethical duty to report every instance
of child abuse or neglect known or suspected to have occurred to
a child with whom I have professional contact.

I understand that I must report immediately, or as soon as
practicably possible, by telephone to a law enforcement agency
or a child protective agency, and will send a written report and
any evidence relating to the incident within 36 hours of becoming
aware of the abuse or neglect of the child.

I understand that reporting the information regarding a case of
possible child abuse or neglect to an employer, supervisor, school
principal, school counselor, coworker, or other person is not a
substitute for making a mandated report to a law enforcement
agency or a child protective agency.

I understand that the reporting duties are individual and no
supervisor or administrator may impede or inhibit my reporting
duties.

I understand that once I submit a report, I am not required to
disclose my identity to my employer.

I understand that my failure to report an instance of suspected
child abuse or neglect as required by the Child Abuse and Neglect
Reporting Act under Section 11166 of the Penal Code is a
misdemeanor punishable by up to six months in jail or by a fine
of one thousand dollars ($1,000), or by both that imprisonment
and fine.

I acknowledge and certify that as a documentholder, I will fulfill
all the duties required of a mandated reporter.”

(b) The commission shall not issue initially a credential, permit,
certificate, or renewal of an emergency credential to a person to
serve in the public schools unless the person has demonstrated
proficiency in basic reading, writing, and mathematics skills in
the English language as provided in Section 44252.5 or 44252.7.
The commission shall exempt the following persons from the basic
skills proficiency test requirement:

(1) A person credentialed solely for the purpose of teaching
adults in an apprenticeship program.

(2) An applicant for an adult education designated subject
credential for other than an academic subject.

(3) A person credentialed in another state who is an applicant
for employment in a school district in this state who has passed a
basic skills proficiency examination administered by the state
where the person is credentialed.

(4) A person credentialed in another state who is an applicant
for employment in a school district in this state who has passed a
basic skills proficiency examination that has been developed and
administered by the school district offering that person
employment, by cooperating school districts, or by the appropriate
county office of education. School districts administering a basic
skills proficiency examination under this paragraph shall comply
with the requirements of subdivision (h) of Section 44830. The
applicant shall be granted a nonrenewable credential, valid for not
longer than one year, pending fulfillment of the basic skills
proficiency requirement pursuant to Section 44252.5.

(5) An applicant for a child care center permit or a permit
authorizing service in a development center for the handicapped
if the holder of the permit is not required to have a baccalaureate
degree.

(6) The holder of a credential, permit, or certificate to teach,
other than an emergency permit, who seeks an additional
authorization to teach.

(7) An applicant for a credential to provide service in the health
profession.

(8) An applicant who achieves scores on the writing, reading,
and mathematics sections of the College Board SAT Reasoning
Test, the enhanced ACT Test, or the California State University
Early Assessment Program that are sufficient to waive the English
placement test and the entry level mathematics examination
administered by the California State University.

(9) An applicant for an eminence credential to be issued pursuant
to Section 44262.

(c) (1) The Superintendent shall adopt an appropriate state test
to measure proficiency in these basic skills. In adopting the test,
the Superintendent shall seek assistance from the commission and
an advisory board. A majority of the members of the advisory
board shall be classroom teachers. The advisory board also shall
include representatives of school boards, school administrators,
parents, and postsecondary educational institutions.

(2) The Superintendent shall adopt a normed test that the
Superintendent determines will sufficiently test basic skills for
purposes of this section.

(3) The Superintendent, in conjunction with the commission
and approved teacher training institutions, shall take steps
necessary to ensure the effective implementation of this section.

(d) This section does not require the holders of, or applicants
for, a designated subjects special subjects credential to pass the
state basic skills proficiency test unless the requirements for the
specific credential required the possession of a baccalaureate
degree. The governing board of a school district, or the governing
board of a consortium of school districts, or the governing board
involved in a joint powers agreement, which employs a holder of
a designated subjects special subjects credential, shall establish its
own basic skills proficiency criteria for the holders of these
credentials and shall arrange for those individuals to be assessed.
The basic skills proficiency criteria established by the governing
board shall be at least equivalent to the test required by the district,
or in the case of a consortium or a joint powers agreement, by any
of the participating districts, for graduation from high school. The
governing board or boards may charge a fee to individuals being
tested to cover the costs of the test, including the costs of
developing, administering, and grading the test.

(e) The commission shall compile data regarding the rate of
passing the state basic skills proficiency test by persons who have
been trained in various institutions of higher education. The data
shall be available to members of the public, including to persons
who intend to enroll in teacher education programs.

(f) (1) Each applicant to an approved credential program, unless
exempted by subdivision (b), shall take the state basic skills
proficiency test in order to provide both the prospective applicant
and the program with information regarding the proficiency level
of the applicant. Test results shall be forwarded to each California
postsecondary educational institution to which the applicant has
applied. The program shall use test results to ensure that, upon
admission, each applicant receives appropriate academic assistance
necessary to pass the state basic skills proficiency test. Persons
residing outside the state shall take the test no later than the second
available administration following their enrollment in a credential
program.

(2) It is the intent of the Legislature that applicants for admission
to teacher preparation programs not be denied admission on the
basis of state basic skills proficiency test results.

begin delete SEC. 84. end delete
begin insert SEC. 85. end insert   

Section 44277 of the Education Code is amended to
read:

44277.  

(a) The Legislature recognizes that effective
professional growth must continue to occur throughout the careers
of all teachers, in order that teachers remain informed of changes
in pedagogy, subject matter, and pupil needs. In enacting this
section, it is the intent of the Legislature to encourage teachers to
engage in an individual program of professional growth that
extends their content knowledge and teaching skills and for school
districts to establish professional growth programs that give
individual teachers a wide range of options to pursue as well as
significant roles in determining the course of their professional
growth.

(b) An individual program of professional growth may consist
of activities that are aligned with the California Standards for the
Teaching Profession that contribute to competence, performance,
or effectiveness in the profession of education and the classroom
assignments of the teacher. Acceptable activities may include,
among other acceptable activities, the completion of courses offered
by regionally accredited colleges and universities, including
instructor-led interactive courses delivered through online
technologies; participation in professional conferences, workshops,
teacher center programs, staff development programs, or a
California Reading Professional Development Institute program
operated pursuant to Article 2 (commencing with Section 99220)
of Chapter 5 of Part 65; service as a mentor teacher; participation
in school curriculum development projects; participation in
systematic programs of observation and analysis of teaching;
service in a leadership role in a professional organization; and
participation in educational research or innovation efforts.
Employing agencies and the bargaining agents of employees may
negotiate to agree on the terms of programs of professional growth
within their jurisdictions, provided that the agreements shall be
consistent with this section.

(c) An individual program of professional growth may include
a basic course in cardiopulmonary resuscitation, which includes
training in the subdiaphragmatic abdominal thrust (also known as
the “Heimlich maneuver”) and meets or exceeds the standards
established by the American Heart Association or the American
Red Cross for courses in that subject or minimum standards for
training programs established by the Emergency Medical Services
Authority. An individual program of professional growth may also
include a course in first aid that meets or exceeds the standards
established by the American Red Cross for courses in that subject
or minimum standards for training programs established by the
Emergency Medical Services Authority.

(d) (1) If a local educational agency offers a program of
professional growth for teachers, administrators, paraprofessional
educators, or other classified employees involved in the direct
instruction of pupils, the local educational agency shall evaluate
professional learning based on all of the following criteria, and
the local educational agency is encouraged to choose professional
learning that meets any of the following criteria:

(A) Helps attract, grow, and retain effective educators.

(B) Is a part of every educator’s experience in order to accelerate
instructional improvement and support pupil learning.

(C) Is based on needs assessment of educators and tied to
supporting pupil learning.

(D) Emphasizes the importance of meeting the needs of all
pupils.

(E) Is grounded in a description of effective practice, as
articulated in the California Standards for the Teaching Profession.

(F) Affords educators opportunities to engage with others to
develop their craft, including, but not limited to, opportunities to
increase their content knowledge.

(G) Ensures educators have adequate time to learn about,
practice, reflect, adjust, critique, and share what educators need
to ensure that all pupils, especially high-needs pupils, develop
knowledge and lifelong learning skills that will help the pupils to
be successful.

(H) Recognizes and utilizes expert teaching and leadership
skills.

(I) Attends to collective growth needs as well as educators’
individual growth needs.

(J) Contributes to a positive, collaborative, and supportive adult
learning environment.

(K) Contributes to cycles of inquiry and improvement.

(L) Is not limited to a single instance, but supports educators
through multiple iterations or engagements.

(M) Is based on a coherent and focused plan.

(2) Professional learning activities may also include
collaboration time for teachers to develop new instructional lessons,
to select or develop common formative assessments, to analyze
pupil data, for mentoring projects for new teachers, or for extra
support for teachers to improve practice. Appropriate professional
learning may be part of a coherent plan that combines school
activities within the school, including, but not limited to, lesson
study or coteaching, and external learning opportunities that meet
all of the following criteria:

(A) Are related to the academic subjects taught.

(B) Provide time to meet and work with other teachers.

(C) Support instruction and pupil learning to improve instruction
in a manner that is consistent with academic content standards.

(e) For purposes of this section, “local educational agency”
means a school district, county office of education, or charter
school.

begin delete SEC. 85. end delete
begin insert SEC. 86. end insert   

Section 44932 of the Education Code is amended to
read:

44932.  

(a) A permanent employee shall not be dismissed
except for one or more of the following causes:

(1) Immoral conduct, including, but not limited to, egregious
misconduct. For purposes of this chapter, “egregious misconduct”
is defined exclusively as immoral conduct that is the basis for an
offense described in Section 44010 or 44011 of this code, or in
Sections 11165.2 to 11165.6, inclusive, of the Penal Code.

(2) Unprofessional conduct.

(3) Commission, aiding, or advocating the commission of acts
of criminal syndicalism, as prohibited by Chapter 188 of the
Statutes of 1919, or in any amendment to that chapter.

(4) Dishonesty.

(5) Unsatisfactory performance.

(6) Evident unfitness for service.

(7) Physical or mental condition unfitting him or her to instruct
or associate with children.

(8) Persistent violation of or refusal to obey the school laws of
the state or reasonable regulations prescribed for the government
of the public schools by the state board or by the governing board
of the school district employing him or her.

(9) Conviction of a felony or of any crime involving moral
turpitude.

(10) Violation of Section 51530 or conduct specified in Section
1028 of the Government Code, added by Chapter 1418 of the
Statutes of 1947.

(11) Alcoholism or other drug abuse that makes the employee
unfit to instruct or associate with children.

(b) The governing board of a school district may suspend
without pay for a specific period of time on grounds of
unprofessional conduct a permanent certificated employee or, in
a school district with an average daily attendance of less than 250
pupils, a probationary employee, pursuant to the procedures
specified in Sections 44933, 44934, 44934.1, 44935, 44936, 44937,
44943, and 44944. This authorization does not apply to a school
district that has adopted a collective bargaining agreement pursuant
to subdivision (b) of Section 3543.2 of the Government Code.

begin delete SEC. 86. end delete
begin insert SEC. 87. end insert   

Section 44939 of the Education Code is amended to
read:

44939.  

(a) This section applies only to dismissal or suspension
proceedings initiated pursuant to Section 44934.

(b) Upon the filing of written charges, duly signed and verified
by the person filing them with the governing board of a school
district, or upon a written statement of charges formulated by the
governing board of a school district, charging a permanent
employee of the school district with immoral conduct, conviction
of a felony or of any crime involving moral turpitude, with
incompetency due to mental disability, with willful refusal to
perform regular assignments without reasonable cause, as
prescribed by reasonable rules and regulations of the employing
school district, or with violation of Section 51530, the governing
board of the school district may, if it deems that action necessary,
immediately suspend the employee from his or her duties and give
notice to him or her of his or her suspension, and that 30 days after
service of the notice of dismissal, he or she will be dismissed,
unless he or she demands a hearing.

(c) (1) An employee who has been placed on suspension
pursuant to this section may serve and file with the Office of
Administrative Hearings a motion for immediate reversal of
suspension. Review of a motion filed pursuant to this section shall
be limited to a determination as to whether the facts as alleged in
the statement of charges, if true, are sufficient to constitute a basis
for immediate suspension under this section. The motion shall
include a memorandum of points and authorities setting forth law
and argument supporting the employee’s contention that the
statement of charges does not set forth a sufficient basis for
immediate suspension.

(2) The motion shall be served upon the governing board of the
school district and filed with the Office of Administrative Hearings
within 30 days after service upon the employee of the initial
pleading in the matter. The governing board of the school district
has the right to serve and file a written response to the motion
before or at the time of hearing.

(3) The hearing on the motion for immediate reversal of
suspension shall be held no later than 30 days after the motion is
filed with the Office of Administrative Hearings.

(4) The administrative law judge shall, no later than 15 days
after the hearing, issue an order denying or granting the motion.
The order shall be in writing, and a copy of the order shall be
served by the Office of Administrative Hearings upon the parties.
The grant or denial of the motion shall be without prejudice to
consideration by the Commission on Professional Competence,
based upon the full evidentiary record before it, of the validity of
the grounds for dismissal. The ruling shall not be considered by
the commission in determining the validity of the grounds for
dismissal, and shall not have any bearing on the commission’s
determination regarding the grounds for dismissal.

(5) An order granting a motion for immediate reversal of
suspension shall become effective within five days of service of
the order. The school district shall make the employee whole for
any lost wages, benefits, and compensation within 14 days after
service of an order granting the motion.

(6) A motion made pursuant to this section shall be the exclusive
means of obtaining interlocutory review of suspension pending
dismissal. The grant or denial of the motion is not subject to
interlocutory judicial review.

(d) A motion for immediate reversal of suspension pursuant to
this section does not affect the authority of a governing board of
a school district to determine the physical placement and
assignment of an employee who is suspended or placed on
administrative leave during the review of the motion or while
dismissal charges are pending.

begin delete SEC. 87. end delete
begin insert SEC. 88. end insert   

Section 44940 of the Education Code is amended to
read:

44940.  

(a) For purposes of this section, “charged with a
mandatory leave of absence offense” is defined to mean charged
by complaint, information, or indictment filed in a court of
competent jurisdiction with the commission of any sex offense as
defined in Section 44010, with a violation or attempted violation
of Section 187 of the Penal Code, or with the commission of any
offense involving aiding or abetting the unlawful sale, use, or
exchange to minors of controlled substances listed in Schedule I,
II, or III, as contained in Sections 11054, 11055, and 11056 of the
Health and Safety Code.

(b) For purposes of this section, “charged with an optional leave
of absence offense” is defined to mean a charge by complaint,
information, or indictment filed in a court of competent jurisdiction
with the commission of any controlled substance offense as defined
in Section 44011 or 87011 of this code, or Sections 11357 to 11361,
inclusive, or Section 11363, 11364, or 11370.1 of the Health and
Safety Code, insofar as these sections relate to any controlled
substances except marijuana, mescaline, peyote, or
tetrahydrocannabinols.

(c) For purposes of this section and Section 44940.5, the term
“school district” includes county offices of education.

(d) (1) If a certificated employee of a school district is charged
with a mandatory leave of absence offense, as defined in
subdivision (a), upon being informed that a charge has been filed,
the governing board of the school district shall immediately place
the employee on compulsory leave of absence. The duration of
the leave of absence shall be until a time not more than 10 days
after the date of entry of the judgment in the proceedings. No later
than 10 days after receipt of the complaint, information, or
indictment described by subdivision (a), the school district shall
forward a copy to the Commission on Teacher Credentialing.

(2) Upon receiving a copy of a complaint, information, or
indictment described in subdivision (a) and forwarded by a school
district, the Commission on Teacher Credentialing shall
automatically suspend the employee’s teaching or service
credential. The duration of the suspension shall be until a time not
more than 10 days after the date of entry of the judgment in the
proceedings.

(e) (1) If a certificated employee of a school district is charged
with an optional leave of absence offense as defined in subdivision
(b), the governing board of the school district may immediately
place the employee upon compulsory leave in accordance with the
procedure in this section and Section 44940.5. If any certificated
employee is charged with an offense deemed to fall into both the
mandatory and the optional leave of absence categories, as defined
in subdivisions (a) and (b), that offense shall be treated as a
mandatory leave of absence offense for purposes of this section.
No later than 10 days after receipt of the complaint, information,
or indictment described by subdivision (a), the school district shall
forward a copy to the Commission on Teacher Credentialing.

(2) Upon receiving a copy of a complaint, information, or
indictment described in subdivision (a) and forwarded by a school
district, the Commission on Teacher Credentialing shall
automatically suspend the employee’s teaching or service
credential. The duration of the suspension shall be until a time not
more than 10 days after the date of entry of the judgment in the
proceedings.

begin delete SEC. 88. end delete
begin insert SEC. 89. end insert   

Section 44944 of the Education Code is amended to
read:

44944.  

(a) This section applies only to dismissal or suspension
proceedings initiated pursuant to Section 44934.

(b) (1) (A) In a dismissal or suspension proceeding initiated
pursuant to Section 44934, if a hearing is requested by the
employee, the hearing shall be commenced within six months from
the date of the employee’s demand for a hearing. A continuance
shall not extend the date for the commencement of the hearing
more than six months from the date of the employee’s request for
a hearing, except for extraordinary circumstances, as determined
by the administrative law judge. If extraordinary circumstances
are found that extend the date for the commencement of the
hearing, the deadline for concluding the hearing and closing the
record pursuant to this subdivision shall be extended for a period
of time equal to the continuance. The hearing date shall be
established after consultation with the employee and the governing
board of the school district, or their representatives, except that if
the parties are not able to reach an agreement on a date, the Office
of Administrative Hearings shall unilaterally set a date in
compliance with this section. The hearing shall be completed by
a closing of the record within seven months of the date of the
employee’s demand for a hearing. A continuance shall not extend
the date for the close of the record more than seven months from
the date of the employee’s request for a hearing, except for good
cause, as determined by the administrative law judge.

(B) If substantial progress has been made in completing the
previously scheduled days of the hearing within the seven-month
period but the hearing cannot be completed, for good cause shown,
within the seven-month period, the period for completing the
hearing may be extended by the presiding administrative law judge.
If the administrative law judge grants a continuance under this
subparagraph, he or she shall establish a reasonable timetable for
the completion of the hearing and the closing of the record. The
hearing shall be initiated and conducted, and a decision made, in
accordance with Chapter 5 (commencing with Section 11500) of
Part 1 of Division 3 of Title 2 of the Government Code, and the
Commission on Professional Competence shall have all of the
power granted to an agency pursuant to that chapter, except as
described in this article.

(2) (A) A witness shall not be permitted to testify at the hearing
except upon oath or affirmation. Testimony shall not be given or
evidence shall not be introduced relating to matters that occurred
more than four years before the date of the filing of the notice,
except allegations of an act described in Section 44010 of this code
or Sections 11165.2 to 11165.6, inclusive, of the Penal Code.

(B) Evidence of records regularly kept by the governing board
of the school district concerning the employee may be introduced,
but no decision relating to the dismissal or suspension of an
employee shall be made based on charges or evidence of any nature
relating to matters occurring more than four years before the filing
of the notice, except allegations of an act described in Section
44010 of this code or Sections 11165.2 to 11165.6, inclusive, of
the Penal Code.

(c) (1) The hearing provided for in this section shall be
conducted by a Commission on Professional Competence, unless
the parties submit a statement in writing to the Office of
Administrative Hearings, indicating that both parties waive the
right to convene a Commission on Professional Competence and
stipulate to having the hearing conducted by a single administrative
law judge. If the parties elect to waive a hearing before the
Commission on Professional Competence, the hearing shall be
initiated and conducted, and a decision made, in accordance with
Chapter 5 (commencing with Section 11500) of Part 1 of Division
3 of Title 2 of the Government Code, and the administrative law
judge conducting the hearing shall have all the powers granted to
a Commission on Professional Competence pursuant to that
chapter, except as described in this article.

(2) If the parties elect not to waive a hearing before a
Commission on Professional Competence, one member of the
commission shall be selected by the employee, one member shall
be selected by the governing board of the school district, and one
member shall be an administrative law judge of the Office of
Administrative Hearings who shall be chairperson and a voting
member of the commission and shall be responsible for assuring
that the legal rights of the parties are protected at the hearing.

(3) The governing board of the school district and the employee
shall select Commission on Professional Competence members
no later than 45 days before the date set for hearing, and shall serve
notice of their selection upon all other parties and upon the Office
of Administrative Hearings. Failure to meet this deadline shall
constitute a waiver of the right to selection, and the county board
of education or its specific designee shall immediately make the
selection. If the county board of education is also the governing
board of the school district or has by statute been granted the
powers of a governing board, the selection shall be made by the
Superintendent, who shall be reimbursed by the school district for
all costs incident to the selection.

(4) Any party who believes that a selected Commission on
Professional Competence member is not qualified may file an
objection, including a statement describing the basis for the
objection, with the Office of Administrative Hearings and serve
the objection and statement upon all other parties within 10 days
of the date that the notice of selection is filed. Within seven days
after the filing of any objection, the administrative law judge
assigned to the matter shall rule on the objection or convene a
teleconference with the parties for argument.

(5) (A) The member selected by the governing board of the
school district and the member selected by the employee shall not
be related to the employee and shall not be employees of the school
district initiating the dismissal or suspension. Each member shall
hold a currently valid credential and have at least three years’
experience within the past 10 years in the discipline of the
employee.

(B) For purposes of this paragraph, the following terms have
the following meanings:

(i) For an employee subject to dismissal whose most recent
teaching assignment is in kindergarten or any of the grades 1 to 6,
inclusive, “discipline” means a teaching assignment in kindergarten
or any of the grades 1 to 6, inclusive.

(ii) For an employee subject to dismissal whose most recent
assignment requires an education specialist credential or a services
credential, “discipline” means an assignment that requires an
education specialist credential or a services credential, respectively.

(iii) For an employee subject to dismissal whose most recent
teaching assignment is in any of the grades 7 to 12, inclusive,
“discipline” means a teaching assignment in any of grades 7 to 12,
inclusive, in the same area of study, as that term is used in Section
51220, as the most recent teaching assignment of the employee
subject to dismissal.

(d) (1) The decision of the Commission on Professional
Competence shall be made by a majority vote, and the commission
shall prepare a written decision containing findings of fact,
determinations of issues, and a disposition that shall be, solely,
one of the following:

(A) That the employee should be dismissed.

(B) That the employee should be suspended for a specific period
of time without pay.

(C) That the employee should not be dismissed or suspended.

(2) The decision of the Commission on Professional Competence
that the employee should not be dismissed or suspended shall not
be based on nonsubstantive procedural errors committed by the
school district or governing board of the school district unless the
errors are prejudicial errors.

(3) The Commission on Professional Competence shall not have
the power to dispose of the charge of dismissal by imposing
probation or other alternative sanctions. The imposition of
suspension pursuant to subparagraph (B) of paragraph (1) shall be
available only in a suspension proceeding authorized pursuant to
subdivision (b) of Section 44932 or Section 44933.

(4) The decision of the Commission on Professional Competence
shall be deemed to be the final decision of the governing board of
the school district.

(5) The governing board of the school district may adopt from
time to time rules and procedures not inconsistent with this section
as may be necessary to effectuate this section.

(6) The governing board of the school district and the employee
shall have the right to be represented by counsel.

(e) (1) If the member selected by the governing board of the
school district or the member selected by the employee is employed
by any school district in this state, the member shall, during any
service on a Commission on Professional Competence, continue
to receive salary, fringe benefits, accumulated sick leave, and other
leaves and benefits from the school district in which the member
is employed, but shall not receive additional compensation or
honorariums for service on the commission.

(2) If the member selected is a retired employee, the member
shall receive pay at the daily substitute teacher rate in the school
district that is a party to the hearing. Service on a Commission on
Professional Competence shall not be credited toward retirement
benefits.

(3) If service on a Commission on Professional Competence
occurs during summer recess or vacation periods, the member shall
receive compensation proportionate to that received during the
current or immediately preceding contract period from the
member’s employing school district, whichever amount is greater.

(f) (1) If the Commission on Professional Competence
determines that the employee should be dismissed or suspended,
the governing board of the school district and the state shall share
equally the expenses of the hearing, including the cost of the
administrative law judge. The state shall pay any costs incurred
under paragraphs (2) and (3) of subdivision (e), the reasonable
expenses, as determined by the administrative law judge, of the
member selected by the governing board of the school district and
the member selected by the employee, including, but not limited
to, payments or obligations incurred for travel, meals, and lodging,
and the cost of the substitute or substitutes, if any, for the member
selected by the governing board of the school district and the
member selected by the employee. The Controller shall pay all
claims submitted pursuant to this paragraph from the General Fund,
and may prescribe reasonable rules, regulations, and forms for the
submission of the claims. The employee and the governing board
of the school district shall pay their own attorney’s fees.

(2) If the Commission on Professional Competence determines
that the employee should not be dismissed or suspended, the
governing board of the school district shall pay the expenses of
the hearing, including the cost of the administrative law judge, any
costs incurred under paragraphs (2) and (3) of subdivision (e), the
reasonable expenses, as determined by the administrative law
judge, of the member selected by the governing board of the school
district and the member selected by the employee, including, but
not limited to, payments or obligations incurred for travel, meals,
and lodging, the cost of the substitute or substitutes, if any, for the
member selected by the governing board of the school district and
the member selected by the employee, and reasonable attorney’s
fees incurred by the employee.

(3) As used in this section, “reasonable expenses” shall not be
deemed “compensation” within the meaning of subdivision (e).

(4) If either the governing board of the school district or the
employee petitions a court of competent jurisdiction for review of
the decision of the Commission on Professional Competence, the
payment of expenses to members of the commission required by
this subdivision shall not be stayed.

(5) If the decision of the Commission on Professional
Competence is reversed or vacated by a court of competent
jurisdiction, either the state, having paid the commission members’
expenses, shall be entitled to reimbursement from the governing
board of the school district for those expenses, or the governing
board of the school district, having paid the expenses, shall be
entitled to reimbursement from the state. If either the governing
board of the school district or the employee petitions a court of
competent jurisdiction for review of the decision to overturn the
administrative law judge’s decision, the payment of the expenses
of the hearing, including the cost of the administrative law judge
required by this paragraph, shall be stayed until no further appeal
is sought, or all appeals are exhausted.

(g) The hearing provided for in this section shall be conducted
in a place selected by agreement among the members of the
Commission on Professional Competence. In the absence of
agreement, the place shall be selected by the administrative law
judge.

begin delete SEC. 89. end delete
begin insert SEC. 90. end insert   

Section 44944.05 of the Education Code is amended
to read:

44944.05.  

(a) In a dismissal or suspension proceeding initiated
pursuant to Section 44934, in lieu of written discovery required
pursuant to Section 11507.6 of the Government Code, the parties
shall make disclosures as described in this section. This section
does not apply to dismissal or suspension proceedings initiated
pursuant to Section 44934.1.

(b) (1) An initial disclosure shall comply with the following
requirements:

(A) A party shall, without awaiting a discovery request, provide
to the other parties both of the following:

(i) The name and, if known, the address and telephone number
of each individual likely to have discoverable information, along
with the subjects of information relating to the allegations made
in the charges and the parties’ claims and defenses, unless the use
would be solely for impeachment purposes.

(ii) A copy of all documents, electronically stored information,
and tangible items that the disclosing party has in its possession,
custody, or control relating to the allegations made in the charges
and the parties’ claims or defenses, unless the use would be solely
for impeachment.

(B) The school district and the employee shall make their initial
disclosures within 45 days of the date of the employee’s demand
for a hearing.

(C) A party shall make its initial disclosures based on the
information then reasonably available to it. A party is not excused
from making its disclosures because it has not fully investigated
the case or because it challenges the sufficiency of another party’s
disclosures. A party’s failure to make initial disclosures within the
deadlines set forth in this section shall preclude the party from
introducing witnesses or evidence not disclosed at the hearing,
unless the party shows good cause for its failure to timely disclose.

(D) A party has an obligation to promptly supplement its initial
disclosures as new information or evidence becomes known or
available. Supplemental disclosures shall be made as soon as
possible, and no later than 60 days before the date of
commencement of the hearing. A party’s failure to make
supplemental disclosures promptly upon discovery or availability
of new information or evidence shall preclude the party from
introducing witnesses or evidence not disclosed at the hearing,
unless the party shows good cause for its failure to timely disclose.

(2) The disclosure of expert testimony shall comply with the
following requirements:

(A) A party shall also disclose to the other parties the identities
of any expert witnesses whose testimony it may use at the hearing.

(B) The disclosure specified in subparagraph (A) shall be
accompanied by a summary of the witness’ expected testimony,
including a description of the facts and data considered by the
witness; a description of the witness’ qualifications, including a
list of all publications authored in the previous 10 years; a list of
all other cases in which, during the previous four years, the witness
testified as an expert at a hearing or by deposition; and a statement
of the compensation to be paid to the expert witness.

(C) Expert witness disclosures shall be made no later than 60
days before the date of commencement of the hearing. A party’s
failure to make full and timely expert witness disclosures shall
preclude the party’s use of the expert witness’ testimony or
evidence at the hearing.

(3) Prehearing disclosures shall comply with the following
requirements:

(A) In addition to the disclosures required in paragraphs (1) and
(2), a party shall provide to the other parties the following
information about the evidence that it may present at the hearing:

(i) The name, and, if not previously provided, the address and
telephone number of each witness, separately identifying those
the party expects to present and those it may call if the need arises.

(ii) An identification of each exhibit, separately identifying
those items the party expects to offer and those it may offer if the
need arises.

(B) Prehearing disclosures shall be made at least 30 days before
the hearing.

(i) Within 14 days after prehearing disclosures are made, a party
shall file and serve any objections, along with the grounds for each
objection, to the admissibility of evidence.

(ii) These objections shall be decided on the first day of the
hearing, or at a prehearing conference conducted pursuant to
Section 11511.5 of the Government Code. Documents and
individuals not timely disclosed without good cause shall be
precluded from admission at the hearing.

(c) In addition to the disclosures required by subdivision (a),
the parties may obtain discovery by oral deposition in California,
in accordance with Sections 2025.010 to 2025.620, inclusive, of
the Code of Civil Procedure, except as described in this article.
The school district may take the depositions of the employee and
no more than four other witnesses, and the employee may take
depositions of no more than five witnesses. Each witness deposition
is limited to seven hours. An administrative law judge may allow
the parties to conduct additional depositions only upon a showing
of good cause. If a motion to conduct additional depositions is
granted by the administrative law judge, the employee shall be
given a meaningful opportunity to respond to new evidence
introduced as a result of the additional depositions. An order
granting a motion for additional depositions shall not constitute
an extraordinary circumstance or good cause for purposes of
extending the deadlines set forth in paragraph (1) of subdivision
(b) of Section 44944.

(d) If the right to disclosures or oral depositions is denied by
either the employee or the governing board, the exclusive right of
a party seeking an order compelling production of discovery shall
be pursuant to Section 11507.7 of the Government Code. If a party
seeks protection from unreasonable or oppressive discovery
demands, the exclusive right of a party seeking an order for
protection shall be pursuant to Section 11450.30 of the Government
Code.

begin delete SEC. 90. end delete
begin insert SEC. 91. end insert   

Section 44944.3 of the Education Code is amended
to read:

44944.3.  

At a hearing conducted pursuant to Section 44944 or
44944.1, the administrative law judge, before admitting any
testimony or evidence concerning an individual pupil, shall
determine whether the introduction of the testimony or evidence
at an open hearing would violate any provision of Article 5
(commencing with Section 49073) of Chapter 6.5 of Part 27 of
Division 4, relating to privacy of pupil records. If the administrative
law judge, in his or her discretion, determines that any of those
provisions would be violated, he or she shall order that the hearing,
or any portion of the hearing at which the testimony or evidence
would be produced, be conducted in executive session.

begin delete SEC. 91. end delete
begin insert SEC. 92. end insert   

Section 46116 of the Education Code is amended to
read:

46116.  

(a) No later than July 1, 2017, the Superintendent shall
provide the Legislature with an evaluation of kindergarten program
implementation in the state, including part-day and full-day
kindergarten programs. The evaluation shall include recommended
best practices for providing full-day kindergarten programs.

(b) The evaluation shall include a sample of local educational
agencies’ full-day and part-day kindergarten programs from across
the state. It is the intent of the Legislature that this sample be
representative of the diversity of the state, and shall include both
urban and rural and small and large local educational agencies
within school districts.

(c) The report required pursuant to this section shall be submitted
in compliance with Section 9795 of the Government Code.

(d) This section shall not become operative until the Legislature
makes an appropriation for these purposes in the annual Budget
Act or in any other statute.

(e) This section shall become inoperative on July 1, 2017, and,
as of January 1, 2018, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2018, deletes or
extends the dates on which it becomes inoperative and is repealed.

begin delete SEC. 92. end delete
begin insert SEC. 93. end insert   

The heading of Article 3 (commencing with Section
46330) of Chapter 3 of Part 26 of Division 4 of Title 2 of the Education Code is repealed.

begin delete SEC. 93. end delete
begin insert SEC. 94. end insert   

The heading of Article 4 (commencing with Section
46340) of Chapter 3 of Part 26 of Division 4 of Title 2 of the Education Code is repealed.

begin delete SEC. 94. end delete
begin insert SEC. 95. end insert   

Section 47605 of the Education Code is amended to
read:

47605.  

(a) (1) Except as set forth in paragraph (2), a petition
for the establishment of a charter school within a school district
may be circulated by one or more persons seeking to establish the
charter school. A petition for the establishment of a charter school
shall identify a single charter school that will operate within the
geographic boundaries of that school district. A charter school
may propose to operate at multiple sites within the school district
if each location is identified in the charter school petition. The
petition may be submitted to the governing board of the school
district for review after either of the following conditions is met:

(A) The petition is signed by a number of parents or legal
guardians of pupils that is equivalent to at least one-half of the
number of pupils that the charter school estimates will enroll in
the school for its first year of operation.

(B) The petition is signed by a number of teachers that is
equivalent to at least one-half of the number of teachers that the
charter school estimates will be employed at the school during its
first year of operation.

(2) A petition that proposes to convert an existing public school
to a charter school that would not be eligible for a loan pursuant
to subdivision (c) of Section 41365 may be circulated by one or
more persons seeking to establish the charter school. The petition
may be submitted to the governing board of the school district for
review after the petition is signed by not less than 50 percent of
the permanent status teachers currently employed at the public
school to be converted.

(3) A petition shall include a prominent statement that a
signature on the petition means that the parent or legal guardian
is meaningfully interested in having his or her child or ward attend
the charter school, or in the case of a teacher’s signature, means
that the teacher is meaningfully interested in teaching at the charter
school. The proposed charter shall be attached to the petition.

(4) After receiving approval of its petition, a charter school that
proposes to establish operations at one or more additional sites
shall request a material revision to its charter and shall notify the
authority that granted its charter of those additional locations. The
authority that granted its charter shall consider whether to approve
those additional locations at an open, public meeting. If the
additional locations are approved, they shall be a material revision
to the charter school’s charter.

(5) A charter school that is unable to locate within the
jurisdiction of the chartering school district may establish one site
outside the boundaries of the school district, but within the county
in which that school district is located, if the school district within
the jurisdiction of which the charter school proposes to operate is
notified in advance of the charter petition approval, the county
superintendent of schools and the Superintendent are notified of
the location of the charter school before it commences operations,
and either of the following circumstances exists:

(A) The school has attempted to locate a single site or facility
to house the entire program, but a site or facility is unavailable in
the area in which the school chooses to locate.

(B) The site is needed for temporary use during a construction
or expansion project.

(6) Commencing January 1, 2003, a petition to establish a charter
school may not be approved to serve pupils in a grade level that
is not served by the school district of the governing board
considering the petition, unless the petition proposes to serve pupils
in all of the grade levels served by that school district.

(b) No later than 30 days after receiving a petition, in accordance
with subdivision (a), the governing board of the school district
shall hold a public hearing on the provisions of the charter, at
which time the governing board of the school district shall consider
the level of support for the petition by teachers employed by the
school district, other employees of the school district, and parents.
Following review of the petition and the public hearing, the
governing board of the school district shall either grant or deny
the charter within 60 days of receipt of the petition, provided,
however, that the date may be extended by an additional 30 days
if both parties agree to the extension. In reviewing petitions for
the establishment of charter schools pursuant to this section, the
chartering authority shall be guided by the intent of the Legislature
that charter schools are and should become an integral part of the
California educational system and that the establishment of charter
schools should be encouraged. The governing board of the school
district shall grant a charter for the operation of a school under this
part if it is satisfied that granting the charter is consistent with
sound educational practice. The governing board of the school
district shall not deny a petition for the establishment of a charter
school unless it makes written factual findings, specific to the
particular petition, setting forth specific facts to support one or
more of the following findings:

(1) The charter school presents an unsound educational program
for the pupils to be enrolled in the charter school.

(2) The petitioners are demonstrably unlikely to successfully
implement the program set forth in the petition.

(3) The petition does not contain the number of signatures
required by subdivision (a).

(4) The petition does not contain an affirmation of each of the
conditions described in subdivision (d).

(5) The petition does not contain reasonably comprehensive
descriptions of all of the following:

(A) (i) The educational program of the charter school, designed,
among other things, to identify those whom the charter school is
attempting to educate, what it means to be an “educated person”
in the 21st century, and how learning best occurs. The goals
identified in that program shall include the objective of enabling
pupils to become self-motivated, competent, and lifelong learners.

(ii) The annual goals for the charter school for all pupils and
for each subgroup of pupils identified pursuant to Section 52052,
to be achieved in the state priorities, as described in subdivision
(d) of Section 52060, that apply for the grade levels served, or the
nature of the program operated, by the charter school, and specific
annual actions to achieve those goals. A charter petition may
identify additional school priorities, the goals for the school
priorities, and the specific annual actions to achieve those goals.

(iii) If the proposed charter school will serve high school pupils,
the manner in which the charter school will inform parents about
the transferability of courses to other public high schools and the
eligibility of courses to meet college entrance requirements.
Courses offered by the charter school that are accredited by the
Western Association of Schools and Colleges may be considered
transferable and courses approved by the University of California
or the California State University as creditable under the “A” to
“G” admissions criteria may be considered to meet college entrance
requirements.

(B) The measurable pupil outcomes identified for use by the
charter school. “Pupil outcomes,” for purposes of this part, means
the extent to which all pupils of the school demonstrate that they
have attained the skills, knowledge, and attitudes specified as goals
in the school’s educational program. Pupil outcomes shall include
outcomes that address increases in pupil academic achievement
both schoolwide and for all groups of pupils served by the charter
school, as that term is defined in subparagraph (B) of paragraph
(3) of subdivision (a) of Section 47607. The pupil outcomes shall
align with the state priorities, as described in subdivision (d) of
Section 52060, that apply for the grade levels served, or the nature
of the program operated, by the charter school.

(C) The method by which pupil progress in meeting those pupil
outcomes is to be measured. To the extent practicable, the method
for measuring pupil outcomes for state priorities shall be consistent
with the way information is reported on a school accountability
report card.

(D) The governance structure of the charter school, including,
but not limited to, the process to be followed by the charter school
to ensure parental involvement.

(E) The qualifications to be met by individuals to be employed
by the charter school.

(F) The procedures that the charter school will follow to ensure
the health and safety of pupils and staff. These procedures shall
include the requirement that each employee of the charter school
furnish it with a criminal record summary as described in Section
44237.

(G) The means by which the school will achieve a racial and
ethnic balance among its pupils that is reflective of the general
population residing within the territorial jurisdiction of the school
district to which the charter petition is submitted.

(H) Admission requirements, if applicable.

(I) The manner in which annual, independent financial audits
shall be conducted, which shall employ generally accepted
accounting principles, and the manner in which audit exceptions
and deficiencies shall be resolved to the satisfaction of the
chartering authority.

(J) The procedures by which pupils can be suspended or
expelled.

(K) The manner by which staff members of the charter schools
will be covered by the State Teachers’ Retirement System, the
Public Employees’ Retirement System, or federal social security.

(L) The public school attendance alternatives for pupils residing
within the school district who choose not to attend charter schools.

(M) The rights of an employee of the school district upon
leaving the employment of the school district to work in a charter
school, and of any rights of return to the school district after
employment at a charter school.

(N) The procedures to be followed by the charter school and
the entity granting the charter to resolve disputes relating to
provisions of the charter.

(O) The procedures to be used if the charter school closes. The
procedures shall ensure a final audit of the charter school to
determine the disposition of all assets and liabilities of the charter
school, including plans for disposing of any net assets and for the
maintenance and transfer of pupil records.

(6) The petition does not contain a declaration of whether or
not the charter school shall be deemed the exclusive public
employer of the employees of the charter school for purposes of
Chapter 10.7 (commencing with Section 3540) of Division 4 of
Title 1 of the Government Code.

(c) (1) Charter schools shall meet all statewide standards and
conduct the pupil assessments required pursuant to Sections 60605
and 60851 and any other statewide standards authorized in statute
or pupil assessments applicable to pupils in noncharter public
schools.

(2) Charter schools shall, on a regular basis, consult with their
parents, legal guardians, and teachers regarding the charter school’s
educational programs.

(d) (1) In addition to any other requirement imposed under this
part, a charter school shall be nonsectarian in its programs,
admission policies, employment practices, and all other operations,
shall not charge tuition, and shall not discriminate against a pupil
on the basis of the characteristics listed in Section 220. Except as
provided in paragraph (2), admission to a charter school shall not
be determined according to the place of residence of the pupil, or
of his or her parent or legal guardian, within this state, except that
an existing public school converting partially or entirely to a charter
school under this part shall adopt and maintain a policy giving
admission preference to pupils who reside within the former
attendance area of that public school.

(2) (A) A charter school shall admit all pupils who wish to
attend the school.

(B) If the number of pupils who wish to attend the charter school
exceeds the school’s capacity, attendance, except for existing pupils
of the charter school, shall be determined by a public random
drawing. Preference shall be extended to pupils currently attending
the charter school and pupils who reside in the district except as
provided for in Section 47614.5. Other preferences may be
permitted by the chartering authority on an individual school basis
and only if consistent with the law.

(C) In the event of a drawing, the chartering authority shall
make reasonable efforts to accommodate the growth of the charter
school and shall not take any action to impede the charter school
from expanding enrollment to meet pupil demand.

(3) If a pupil is expelled or leaves the charter school without
graduating or completing the school year for any reason, the charter
school shall notify the superintendent of the school district of the
pupil’s last known address within 30 days, and shall, upon request,
provide that school district with a copy of the cumulative record
of the pupil, including a transcript of grades or report card, and
health information. This paragraph applies only to pupils subject
to compulsory full-time education pursuant to Section 48200.

(e) The governing board of a school district shall not require an
employee of the school district to be employed in a charter school.

(f) The governing board of a school district shall not require a
pupil enrolled in the school district to attend a charter school.

(g) The governing board of a school district shall require that
the petitioner or petitioners provide information regarding the
proposed operation and potential effects of the charter school,
including, but not limited to, the facilities to be used by the school,
the manner in which administrative services of the school are to
be provided, and potential civil liability effects, if any, upon the
school and upon the school district. The description of the facilities
to be used by the charter school shall specify where the school
intends to locate. The petitioner or petitioners shall also be required
to provide financial statements that include a proposed first-year
operational budget, including startup costs, and cashflow and
financial projections for the first three years of operation.

(h) In reviewing petitions for the establishment of charter
schools within the school district, the governing board of the school
district shall give preference to petitions that demonstrate the
capability to provide comprehensive learning experiences to pupils
identified by the petitioner or petitioners as academically low
achieving pursuant to the standards established by the department
under Section 54032, as that section read before July 19, 2006.

(i) Upon the approval of the petition by the governing board of
the school district, the petitioner or petitioners shall provide written
notice of that approval, including a copy of the petition, to the
applicable county superintendent of schools, the department, and
the state board.

(j) (1) If the governing board of a school district denies a
petition, the petitioner may elect to submit the petition for the
establishment of a charter school to the county board of education.
The county board of education shall review the petition pursuant
to subdivision (b). If the petitioner elects to submit a petition for
establishment of a charter school to the county board of education
and the county board of education denies the petition, the petitioner
may file a petition for establishment of a charter school with the
state board, and the state board may approve the petition, in
accordance with subdivision (b). A charter school that receives
approval of its petition from a county board of education or from
the state board on appeal shall be subject to the same requirements
concerning geographic location to which it would otherwise be
subject if it received approval from the entity to which it originally
submitted its petition. A charter petition that is submitted to either
a county board of education or to the state board shall meet all
otherwise applicable petition requirements, including the
identification of the proposed site or sites where the charter school
will operate.

(2) In assuming its role as a chartering agency, the state board
shall develop criteria to be used for the review and approval of
charter school petitions presented to the state board. The criteria
shall address all elements required for charter approval, as
identified in subdivision (b), and shall define “reasonably
comprehensive” as used in paragraph (5) of subdivision (b) in a
way that is consistent with the intent of this part. Upon satisfactory
completion of the criteria, the state board shall adopt the criteria
on or before June 30, 2001.

(3) A charter school for which a charter is granted by either the
county board of education or the state board based on an appeal
pursuant to this subdivision shall qualify fully as a charter school
for all funding and other purposes of this part.

(4) If either the county board of education or the state board
fails to act on a petition within 120 days of receipt, the decision
of the governing board of the school district to deny a petition shall
be subject to judicial review.

(5) The state board shall adopt regulations implementing this
subdivision.

(6) Upon the approval of the petition by the county board of
education, the petitioner or petitioners shall provide written notice
of that approval, including a copy of the petition to the department
and the state board.

(k) (1) The state board may, by mutual agreement, designate
its supervisorial and oversight responsibilities for a charter school
approved by the state board to any local educational agency in the
county in which the charter school is located or to the governing
board of the school district that first denied the petition.

(2) The designated local educational agency shall have all
monitoring and supervising authority of a chartering agency,
including, but not limited to, powers and duties set forth in Section
47607, except the power of revocation, which shall remain with
the state board.

(3) A charter school that is granted its charter through an appeal
to the state board and elects to seek renewal of its charter shall,
before expiration of the charter, submit its petition for renewal to
the governing board of the school district that initially denied the
charter. If the governing board of the school district denies the
charter school’s petition for renewal, the school may petition the
state board for renewal of its charter.

(l) Teachers in charter schools shall hold a Commission on
Teacher Credentialing certificate, permit, or other document
equivalent to that which a teacher in other public schools would
be required to hold. These documents shall be maintained on file
at the charter school and are subject to periodic inspection by the
chartering authority. It is the intent of the Legislature that charter
schools be given flexibility with regard to noncore, noncollege
preparatory courses.

(m) A charter school shall transmit a copy of its annual,
independent financial audit report for the preceding fiscal year, as
described in subparagraph (I) of paragraph (5) of subdivision (b),
to its chartering entity, the Controller, the county superintendent
of schools of the county in which the charter school is sited, unless
the county board of education of the county in which the charter
school is sited is the chartering entity, and the department by
December 15 of each year. This subdivision does not apply if the
audit of the charter school is encompassed in the audit of the
chartering entity pursuant to Section 41020.

begin delete SEC. 95. end delete
begin insert SEC. 96. end insert   

Section 47605.1 of the Education Code is amended
to read:

47605.1.  

(a) (1) Notwithstanding any other law, a charter
school that is granted a charter from the governing board of a
school district or county office of education after July 1, 2002, and
commences providing educational services to pupils on or after
July 1, 2002, shall locate in accordance with the geographic and
site limitations of this part.

(2) Notwithstanding any other law, a charter school that is
granted a charter by the state board after July 1, 2002, and
commences providing educational services to pupils on or after
July 1, 2002, based on the denial of a petition by the governing
board of a school district or county board of education, as described
in paragraphs (1) and (2) of subdivision (j) of Section 47605, may
locate only within the geographic boundaries of the chartering
entity that initially denied the petition for the charter.

(3) A charter school that receives approval of its charter from
a governing board of a school district, a county office of education,
or the state board before July 1, 2002, but does not commence
operations until after January 1, 2003, shall be subject to the
geographic limitations of the part, in accordance with subdivision
(e).

(b) This section is not intended to affect the admission
requirements contained in subdivision (d) of Section 47605.

(c) Notwithstanding any other law, a charter school may
establish a resource center, meeting space, or other satellite facility
located in a county adjacent to that in which the charter school is
authorized if the following conditions are met:

(1) The facility is used exclusively for the educational support
of pupils who are enrolled in nonclassroom-based independent
study of the charter school.

(2) The charter school provides its primary educational services
in, and a majority of the pupils it serves are residents of, the county
in which the charter school is authorized.

(d) Notwithstanding subdivision (a) or subdivision (a) of Section
47605, a charter school that is unable to locate within the
geographic boundaries of the chartering school district may
establish one site outside the boundaries of the school district, but
within the county within which that school district is located, if
the school district in which the charter school proposes to operate
is notified in advance of the charter petition approval, the county
superintendent of schools is notified of the location of the charter
school before it commences operations, and either of the following
circumstances exist:

(1) The school has attempted to locate a single site or facility
to house the entire program, but such a facility or site is unavailable
in the area in which the school chooses to locate.

(2) The site is needed for temporary use during a construction
or expansion project.

(e) (1) For a charter school that was granted approval of its
charter before July 1, 2002, and provided educational services to
pupils before July 1, 2002, this section only applies to new
educational services or schoolsites established or acquired by the
charter school on or after July 1, 2002.

(2) For a charter school that was granted approval of its charter
before July 1, 2002, but did not provide educational services to
pupils before July 1, 2002, this section only applies upon the
expiration of a charter that is in existence on January 1, 2003.

(3) Notwithstanding other implementation timelines in this
section, by June 30, 2005, or upon the expiration of a charter that
is in existence on January 1, 2003, whichever is later, all charter
schools shall be required to comply with this section for schoolsites
at which education services are provided to pupils before or after
July 1, 2002, regardless of whether the charter school initially
received approval of its charter school petition before July 1, 2002.
To achieve compliance with this section, a charter school shall be
required to receive approval of a charter petition in accordance
with this section and Section 47605.

(4) This section is not intended to affect the authority of a
governmental entity to revoke a charter that is granted on or before
the effective date of this section.

(f) A charter school that submits its petition directly to a county
board of education, as authorized by Sections 47605.5 or 47605.6,
may establish charter school operations only within the
geographical boundaries of the county in which that county board
of education has jurisdiction.

(g) Notwithstanding any other law, the jurisdictional limitations
set forth in this section do not apply to a charter school that
provides instruction exclusively in partnership with any of the
following:

(1) The federal Workforce Investment Act of 1998 (29 U.S.C.
Sec. 2801 et seq.).

(2) Federally affiliated Youth Build programs.

(3) Federal job corps training or instruction provided pursuant
to a memorandum of understanding with the federal provider.

(4) The California Conservation Corps or local conservation
corps certified by the California Conservation Corps pursuant to
Sections 14507.5 or 14406 of the Public Resources Code.

(5) Instruction provided to juvenile court school pupils pursuant
to subdivision (b) of Section 42238.18 or pursuant to Section 1981
for individuals who are placed in a residential facility.

begin delete SEC. 96. end delete
begin insert SEC. 97. end insert   

Section 47605.6 of the Education Code is amended
to read:

47605.6.  

(a) (1) In addition to the authority provided by
Section 47605.5, a county board of education may also approve a
petition for the operation of a charter school that operates at one
or more sites within the geographic boundaries of the county and
that provides instructional services that are not generally provided
by a county office of education. A county board of education may
approve a countywide charter only if it finds, in addition to the
other requirements of this section, that the educational services to
be provided by the charter school will offer services to a pupil
population that will benefit from those services and that cannot be
served as well by a charter school that operates in only one school
district in the county. A petition for the establishment of a
countywide charter school pursuant to this subdivision may be
circulated throughout the county by any one or more persons
seeking to establish the charter school. The petition may be
submitted to the county board of education for review after either
of the following conditions is met:

(A) The petition is signed by a number of parents or guardians
of pupils residing within the county that is equivalent to at least
one-half of the number of pupils that the charter school estimates
will enroll in the school for its first year of operation and each of
the school districts where the charter school petitioner proposes
to operate a facility has received at least 30 days’ notice of the
petitioner’s intent to operate a school pursuant to this section.

(B) The petition is signed by a number of teachers that is
equivalent to at least one-half of the number of teachers that the
charter school estimates will be employed at the school during its
first year of operation and each of the school districts where the
charter school petitioner proposes to operate a facility has received
at least 30 days’ notice of the petitioner’s intent to operate a school
pursuant to this section.

(2) An existing public school shall not be converted to a charter
school in accordance with this section.

(3) After receiving approval of its petition, a charter school that
proposes to establish operations at additional sites within the
geographic boundaries of the county board of education shall notify
the school districts where those sites will be located. The charter
school shall also request a material revision of its charter by the
county board of education that approved its charter and the county
board of education shall consider whether to approve those
additional locations at an open, public meeting, held no sooner
than 30 days following notification of the school districts where
the sites will be located. If approved, the location of the approved
sites shall be a material revision of the school’s approved charter.

(4) A petition shall include a prominent statement indicating
that a signature on the petition means that the parent or guardian
is meaningfully interested in having his or her child or ward attend
the charter school, or in the case of a teacher’s signature, means
that the teacher is meaningfully interested in teaching at the charter
school. The proposed charter shall be attached to the petition.

(b) No later than 60 days after receiving a petition, in accordance
with subdivision (a), the county board of education shall hold a
public hearing on the provisions of the charter, at which time the
county board of education shall consider the level of support for
the petition by teachers, parents or guardians, and the school
districts where the charter school petitioner proposes to place
school facilities. Following review of the petition and the public
hearing, the county board of education shall either grant or deny
the charter within 90 days of receipt of the petition. However, this
date may be extended by an additional 30 days if both parties agree
to the extension. A county board of education may impose any
additional requirements beyond those required by this section that
it considers necessary for the sound operation of a countywide
charter school. A county board of education may grant a charter
for the operation of a school under this part only if it is satisfied
that granting the charter is consistent with sound educational
practice and that the charter school has reasonable justification for
why it could not be established by petition to a school district
pursuant to Section 47605. The county board of education shall
deny a petition for the establishment of a charter school if it finds
one or more of the following:

(1) The charter school presents an unsound educational program
for the pupils to be enrolled in the charter school.

(2) The petitioners are demonstrably unlikely to successfully
implement the program set forth in the petition.

(3) The petition does not contain the number of signatures
required by subdivision (a).

(4) The petition does not contain an affirmation of each of the
conditions described in subdivision (d).

(5) The petition does not contain reasonably comprehensive
descriptions of all of the following:

(A) (i) The educational program of the charter school, designed,
among other things, to identify those pupils whom the charter
school is attempting to educate, what it means to be an “educated
person” in the 21st century, and how learning best occurs. The
goals identified in that program shall include the objective of
enabling pupils to become self-motivated, competent, and lifelong
learners.

(ii) The annual goals for the charter school for all pupils and
for each subgroup of pupils identified pursuant to Section 52052,
to be achieved in the state priorities, as described in subdivision
(d) of Section 52060, that apply for the grade levels served, or the
nature of the program operated, by the charter school, and specific
annual actions to achieve those goals. A charter petition may
identify additional school priorities, the goals for the school
priorities, and the specific annual actions to achieve those goals.

(iii) If the proposed charter school will enroll high school pupils,
the manner in which the charter school will inform parents
regarding the transferability of courses to other public high schools.
Courses offered by the charter school that are accredited by the
Western Association of Schools and Colleges may be considered
to be transferable to other public high schools.

(iv) If the proposed charter school will enroll high school pupils,
information as to the manner in which the charter school will
inform parents as to whether each individual course offered by the
charter school meets college entrance requirements. Courses
approved by the University of California or the California State
University as satisfying their prerequisites for admission may be
considered as meeting college entrance requirements for purposes
of this clause.

(B) The measurable pupil outcomes identified for use by the
charter school. “Pupil outcomes,” for purposes of this part, means
the extent to which all pupils of the school demonstrate that they
have attained the skills, knowledge, and aptitudes specified as
goals in the school’s educational program. Pupil outcomes shall
include outcomes that address increases in pupil academic
achievement both schoolwide and for all groups of pupils served
by the charter school, as that term is defined in subparagraph (B)
of paragraph (3) of subdivision (a) of Section 47607. The pupil
outcomes shall align with the state priorities, as described in
subdivision (d) of Section 52060, that apply for the grade levels
served, or the nature of the program operated, by the charter school.

(C) The method by which pupil progress in meeting those pupil
outcomes is to be measured. To the extent practicable, the method
for measuring pupil outcomes for state priorities shall be consistent
with the way information is reported on a school accountability
report card.

(D) The location of each charter school facility that the petitioner
proposes to operate.

(E) The governance structure of the charter school, including,
but not limited to, the process to be followed by the charter school
to ensure parental involvement.

(F) The qualifications to be met by individuals to be employed
by the charter school.

(G) The procedures that the charter school will follow to ensure
the health and safety of pupils and staff. These procedures shall
include the requirement that each employee of the charter school
furnish it with a criminal record summary as described in Section
44237.

(H) The means by which the charter school will achieve a racial
and ethnic balance among its pupils that is reflective of the general
population residing within the territorial jurisdiction of the school
district to which the charter petition is submitted.

(I) The manner in which annual, independent, financial audits
shall be conducted, in accordance with regulations established by
the state board, and the manner in which audit exceptions and
deficiencies shall be resolved.

(J) The procedures by which pupils can be suspended or
expelled.

(K) The manner by which staff members of the charter school
will be covered by the State Teachers’ Retirement System, the
Public Employees’ Retirement System, or federal social security.

(L) The procedures to be followed by the charter school and the
county board of education to resolve disputes relating to provisions
of the charter.

(M) Admission requirements of the charter school, if applicable.

(N) The public school attendance alternatives for pupils residing
within the county who choose not to attend the charter school.

(O) The rights of an employee of the county office of education,
upon leaving the employment of the county office of education,
to be employed by the charter school, and any rights of return to
the county office of education that an employee may have upon
leaving the employ of the charter school.

(P) The procedures to be used if the charter school closes. The
procedures shall ensure a final audit of the school to determine the
disposition of all assets and liabilities of the charter school,
including plans for disposing of any net assets and for the
maintenance and transfer of public records.

(6) A declaration of whether or not the charter school shall be
deemed the exclusive public school employer of the employees of
the charter school for purposes of the Educational Employment
Relations Act (Chapter 10.7 (commencing with Section 3540) of
Division 4 of Title 1 of the Government Code).

(7) Any other basis that the county board of education finds
justifies the denial of the petition.

(c) A county board of education that approves a petition for the
operation of a countywide charter may, as a condition of charter
approval, enter into an agreement with a third party, at the expense
of the charter school, to oversee, monitor, and report to the county
board of education on the operations of the charter school. The
county board of education may prescribe the aspects of the charter
school’s operations to be monitored by the third party and may
prescribe appropriate requirements regarding the reporting of
information concerning the operations of the charter school to the
county board of education.

(d) (1) Charter schools shall meet all statewide standards and
conduct the pupil assessments required pursuant to Section 60605
and any other statewide standards authorized in statute or pupil
assessments applicable to pupils in noncharter public schools.

(2) Charter schools shall on a regular basis consult with their
parents and teachers regarding the charter school’s educational
programs.

(e) (1) In addition to any other requirement imposed under this
part, a charter school shall be nonsectarian in its programs,
admission policies, employment practices, and all other operations,
shall not charge tuition, and shall not discriminate against any
pupil on the basis of ethnicity, national origin, gender, gender
identity, gender expression, or disability. Except as provided in
paragraph (2), admission to a charter school shall not be determined
according to the place of residence of the pupil, or of his or her
parent or guardian, within this state.

(2) (A) A charter school shall admit all pupils who wish to
attend the charter school.

(B) If the number of pupils who wish to attend the charter school
exceeds the school’s capacity, attendance, except for existing pupils
of the charter school, shall be determined by a public random
drawing. Preference shall be extended to pupils currently attending
the charter school and pupils who reside in the county except as
provided for in Section 47614.5. Other preferences may be
permitted by the chartering authority on an individual school basis
and only if consistent with the law.

(C) In the event of a drawing, the county board of education
shall make reasonable efforts to accommodate the growth of the
charter school and in no event shall take any action to impede the
charter school from expanding enrollment to meet pupil demand.

(f) The county board of education shall not require an employee
of the county or a school district to be employed in a charter school.

(g) The county board of education shall not require a pupil
enrolled in a county program to attend a charter school.

(h) The county board of education shall require that the
petitioner or petitioners provide information regarding the proposed
operation and potential effects of the charter school, including, but
not limited to, the facilities to be used by the charter school, the
manner in which administrative services of the charter school are
to be provided, and potential civil liability effects, if any, upon the
charter school, any school district where the charter school may
operate, and upon the county board of education. The petitioner
or petitioners shall also be required to provide financial statements
that include a proposed first-year operational budget, including
startup costs, and cashflow and financial projections for the first
three years of operation.

(i) In reviewing petitions for the establishment of charter schools
within the county, the county board of education shall give
preference to petitions that demonstrate the capability to provide
comprehensive learning experiences to pupils identified by the
petitioner or petitioners as academically low achieving pursuant
to the standards established by the department under Section 54032,
as that section read before July 19, 2006.

(j) Upon the approval of the petition by the county board of
education, the petitioner or petitioners shall provide written notice
of that approval, including a copy of the petition, to the school
districts within the county, the Superintendent, and to the state
board.

(k) If a county board of education denies a petition, the petitioner
may not elect to submit the petition for the establishment of the
charter school to the state board.

(l) Teachers in charter schools shall be required to hold a
Commission on Teacher Credentialing certificate, permit, or other
document equivalent to that which a teacher in other public schools
would be required to hold. These documents shall be maintained
on file at the charter school and shall be subject to periodic
inspection by the chartering authority.

(m) A charter school shall transmit a copy of its annual,
independent, financial audit report for the preceding fiscal year,
as described in subparagraph (I) of paragraph (5) of subdivision
(b), to the county office of education, the Controller, and the
department by December 15 of each year. This subdivision does
not apply if the audit of the charter school is encompassed in the
audit of the chartering entity pursuant to Section 41020.

begin delete SEC. 97. end delete
begin insert SEC. 98. end insert   

Section 47614.5 of the Education Code is amended
to read:

47614.5.  

(a) The Charter School Facility Grant Program is
hereby established, and shall be administered by the California
School Finance Authority. The grant program is intended to provide
assistance with facilities rent and lease costs for pupils in charter
schools.

(b) Subject to the annual Budget Act, eligible charter schools
shall receive an amount of up to, but not more than, seven hundred
fifty dollars ($750) per unit of average daily attendance, as certified
at the second principal apportionment, to provide an amount of up
to, but not more than, 75 percent of the annual facilities rent and
lease costs for the charter school. In any fiscal year, if the funds
appropriated for purposes of this section by the annual Budget Act
are insufficient to fully fund the approved amounts, the California
School Finance Authority shall apportion the available funds on
a pro rata basis.

(c) For purposes of this section, the California School Finance
Authority shall do all of the following:

(1) Inform charter schools of the grant program.

(2) Upon application by a charter school, determine eligibility,
based on the geographic location of the charter schoolsite, pupil
eligibility for free or reduced-price meals, and a preference in
admissions, as appropriate. Eligibility for funding shall not be
limited to the grade level or levels served by the school whose
attendance area is used to determine eligibility. A charter schoolsite
is eligible for funding pursuant to this section if the charter
schoolsite meets any of the following conditions:

(A) The charter schoolsite is physically located in the attendance
area of a public elementary school in which 70 percent or more of
the pupil enrollment is eligible for free or reduced-price meals and
the charter schoolsite gives a preference in admissions to pupils
who are currently enrolled in that public elementary school and to
pupils who reside in the elementary school attendance area where
the charter schoolsite is located.

(B) Seventy percent or more of the pupil enrollment at the
charter schoolsite is eligible for free or reduced-price meals.

(C) In any year in which additional funds remain after state and
federal funds have been allocated to applicants that meet the
eligibility criteria in subparagraph (A) or (B), the California School
Finance Authority shall expand eligibility to additional charter
schools that are eligible pursuant to subparagraph (B) by reducing
the free and reduced-price meals threshold 1 percentage point at
a time, but in no case below 60 percent.

(3) Inform charter schools of their grant eligibility.

(4) Make apportionments to a charter school for eligible
expenditures according to the following schedule:

(A) An initial apportionment by August 31 of each fiscal year
or 30 days after enactment of the annual Budget Act, whichever
is later, provided the charter school has submitted a timely
application for funding, as determined by the California School
Finance Authority. The initial apportionment shall be 50 percent
of the charter school’s estimated annual entitlement as determined
by this section.

(B) A second apportionment by March 1 of each fiscal year.
This apportionment shall be 75 percent of the charter school’s
estimated annual entitlement, as adjusted for any revisions in cost,
enrollment, and other data relevant to computing the charter
school’s annual entitlement, less any funding already apportioned
to the charter school.

(C) A third apportionment within 30 days of the end of each
fiscal year or 30 days after receiving the data and documentation
needed to compute the charter school’s total annual entitlement,
whichever is later. This apportionment shall be the charter school’s
total annual entitlement less any funding already apportioned to
the charter school.

(D) Notwithstanding subparagraph (A), the initial apportionment
in the 2013-14 fiscal year shall be made by October 15, 2013, or
105 days after enactment of the Budget Act of 2013, whichever is
later.

(d) For purposes of this section:

(1) The California School Finance Authority shall use prior year
data on pupil eligibility for free or reduced-price meals for the
charter schoolsite and prior year rent or lease costs provided by
charter schools to determine eligibility for the grant program until
current year data and actual rent or lease costs become known or
until June 30 of each fiscal year.

(2) If prior year rent or lease costs are unavailable, and the
current year lease and rent costs are not immediately available,
the California School Finance Authority shall use rent or lease
cost estimates provided by the charter school.

(3) The California School Finance Authority shall verify that
the grant amount awarded to each charter school is consistent with
eligibility requirements as specified in this section and in
regulations adopted by the authority. If it is determined by the
California School Finance Authority that a charter school did not
receive the proper grant award amount, either the charter school
shall transfer funds back to the authority as necessary within 60
days of being notified by the authority, or the authority shall
provide an additional apportionment as necessary to the charter
school within 60 days of notifying the charter school, subject to
the availability of funds.

(e) Funds appropriated for purposes of this section shall not be
apportioned for any of the following:

(1) Units of average daily attendance generated through
nonclassroom-based instruction as defined by paragraph (2) of
subdivision (e) of Section 47612.5 or that does not comply with
conditions or limitations set forth in regulations adopted by the
California School Finance Authority pursuant to this section.

(2) Charter schools occupying existing school district or county
office of education facilities, except that charter schools shall be
eligible for the portions of their facilities that are not existing
school district or county office of education facilities.

(3) Charter schools receiving reasonably equivalent facilities
from their chartering authorities pursuant to Section 47614, except
that charter schools shall be eligible for the portions of their
facilities that are not reasonably equivalent facilities received from
their chartering authorities.

(f) Funds appropriated for purposes of this section shall be used
for costs associated with facilities rents and leases, consistent with
the definitions used in the California School Accounting Manual
or regulations adopted by the California School Finance Authority.
These funds also may be used for costs, including, but not limited
to, costs associated with remodeling buildings, deferred
maintenance, initially installing or extending service systems and
other built-in equipment, and improving sites.

(g) If an existing charter school located in an elementary
attendance area in which less than 50 percent of pupil enrollment
is eligible for free or reduced-price meals relocates to an attendance
area identified in paragraph (2) of subdivision (c), admissions
preference shall be given to pupils who reside in the elementary
school attendance area into which the charter school is relocating.

(h) The California School Finance Authority annually shall
report to the department and the Director of Finance, and post
information on its Internet Web site, regarding the use of funds
that have been made available during the fiscal year to each charter
school pursuant to the grant program.

(i) The California School Finance Authority annually shall
allocate the facilities grants to eligible charter schools according
to the schedule in paragraph (4) of subdivision (c) for the current
school year rent and lease costs. However, the California School
Finance Authority shall first use the funding appropriated for this
program to reimburse eligible charter schools for unreimbursed
rent or lease costs for the prior school year.

(j) It is the intent of the Legislature that the funding level for
the Charter School Facility Grant Program for the 2012-13 fiscal
year be considered the base level of funding for subsequent fiscal
years.

(k) The Controller shall include instructions appropriate to the
enforcement of this section in the audit guide required by
subdivision (a) of Section 14502.1.

(l) The California School Finance Authority, effective with the
2013-14 fiscal year, shall be considered the senior creditor for
purposes of satisfying audit findings pursuant to the audit
instructions to be developed pursuant to subdivision (k).

(m) The California School Finance Authority may adopt
regulations to implement this section. Any regulations adopted
pursuant to this section may be adopted as emergency regulations
in accordance with the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of the
Title 2 of the Government Code). The adoption of these regulations
shall be deemed to be an emergency and necessary for the
immediate preservation of the public peace, health and safety, or
general welfare.

(n) Notwithstanding any other law, a charter school shall be
subject, with regard to this section, to audit conducted pursuant to
Section 41020.

begin delete SEC. 98. end delete
begin insert SEC. 99. end insert   

Section 47651 of the Education Code is amended to
read:

47651.  

(a) A charter school may receive the state aid portion
of the charter school’s total local control funding formula allocation
pursuant to Section 42238.02, as implemented by Section 42238.03,
directly or through the local educational agency that either grants
its charter or was designated by the state board.

(1) In the case of a charter school that elects to receive its
funding directly, the warrant shall be drawn in favor of the county
superintendent of schools of the county in which the local
educational agency that granted the charter, or was designated by
the state board as the oversight agency pursuant to paragraph (1)
of subdivision (k) of Section 47605, is located, for deposit to the
appropriate funds or accounts of the charter school in the county
treasury. The county superintendent of schools is authorized to
establish appropriate funds or accounts in the county treasury for
each charter school.

(2) In the case of a charter school that does not elect to receive
its funding directly pursuant to this section, the warrant shall be
drawn in favor of the county superintendent of schools of the
county in which the local educational agency that granted the
charter is located or was designated the oversight agency by the
state board pursuant to paragraph (1) of subdivision (k) of Section
47605, for deposit to the appropriate funds or accounts of the local
educational agency.

(3) In the case of a charter school, the charter of which was
granted by the state board, but for which the state board has not
delegated oversight responsibilities pursuant to paragraph (1) of
subdivision (k) of Section 47605, the warrant shall be drawn in
favor of the county superintendent of schools in the county where
the local educational agency is located that initially denied the
charter that was later granted by the state board. The county
superintendent of schools is authorized to establish appropriate
funds or accounts in the county treasury for each charter school.

(b) On or before June 1 of each year, a charter school electing
to receive its funding directly shall so notify the county
superintendent of schools of the county in which the local
educational agency that granted the charter is located or, in the
case of charters for which the state board has designated an
oversight agency pursuant to paragraph (1) of subdivision (k) of
Section 47605, the county superintendent of schools of the county
in which the designated oversight agency is located. An election
to receive funding directly applies to all funding that the charter
school is eligible to receive including, but not limited to, the local
control funding formula allocation pursuant to Section 42238.02,
as implemented by Section 42238.03, other state and federal
categorical aid, and lottery funds.

begin delete SEC. 99. end delete
begin insert SEC. 100. end insert   

Section 48003 of the Education Code is amended
to read:

48003.  

Commencing with the 2015-16 school year, a local
educational agency shall provide an annual report to the department
that contains information on the type of kindergarten program
offered by the local educational agency, including part-day,
full-day, or both, in a manner determined by the department.

begin delete SEC. 100. end delete
begin insert SEC. 101. end insert   

Section 48297 of the Education Code is amended
to read:

48297.  

(a) (1) A state or local agency conducting a
truancy-related mediation or prosecuting a pupil or a pupil’s parent
or legal guardian pursuant to Article 5 (commencing with Section
48260), this article, Section 48454, Section 270.1 or 272 of the
Penal Code, or Section 601 of the Welfare and Institutions Code,
as applicable, shall provide, using the most cost-effective method
possible, including, but not limited to, by email or telephone, the
school district, school attendance review board, county
superintendent of schools, probation department, or any other
agency that referred a truancy-related mediation, criminal
complaint, or petition with the outcome of each referral. For
purposes of this section, “outcome” means the imposed conditions
or terms placed on a pupil or a pupil’s parent or legal guardian and
the acts or actions taken by a state or local agency with respect to
a truancy-related mediation, prosecution, criminal complaint, or
petition.

(2) This subdivision applies to, but is not limited to, the referrals
referenced in Article 5 (commencing with Section 48260), this
article, Section 48454, Sections 270.1 and 272 of the Penal Code,
and Sections 601, 601.2, and 601.3 of the Welfare and Institutions
Code.

(b) It is the intent of the Legislature to determine the best
evidence-based practices to reduce truancy. This section is not
intended to encourage additional referrals, complaints, petitions,
or prosecutions, or to encourage more serious sanctions for pupils.

begin delete SEC. 101. end delete
begin insert SEC. 102. end insert   

Section 48321 of the Education Code is amended
to read:

48321.  

(a) (1) A county school attendance review board may
be established in each county. The county school attendance review
board may accept referrals or requests for hearing services from
one or more school districts within its jurisdiction pursuant to
subdivision (f). A county school attendance review board may be
operated through a consortium or partnership of a county with one
or more school districts or between two or more counties.

(2) A county school attendance review board, if established,
shall include, but need not be limited to, all of the following:

(A) A parent.

(B) A representative of school districts.

(C) A representative of the county probation department.

(D) A representative of the county welfare department.

(E) A representative of the county superintendent of schools.

(F) A representative of law enforcement agencies.

(G) A representative of community-based youth service centers.

(H) A representative of school guidance personnel.

(I) A representative of child welfare and attendance personnel.

(J) A representative of school or county health care personnel.

(K) A representative of school, county, or community mental
health personnel.

(L) A representative of the county district attorney’s office. If
more than one county is represented in a county school attendance
review board, a representative from each county’s district attorney’s
office may be included.

(M) A representative of the county public defender’s office. If
more than one county is represented in a county school attendance
review board, a representative from each county’s public defender’s
office may be included.

(3) Notwithstanding paragraph (2), for purposes of conducting
hearings, the chairperson of the county school attendance review
board is authorized to determine the members needed at a hearing,
based on the needs of the pupil, in order to address attendance or
behavioral problems.

(4) The school district representatives on the county school
attendance review board shall be nominated by the governing
boards of school districts and shall be appointed by the county
superintendent of schools. All other persons and group
representatives shall be appointed by the county board of education.

(5) (A) If a county school attendance review board exists, the
county superintendent of schools shall, at the beginning of each
school year, convene a meeting of the county school attendance
review board for purposes of adopting plans to promote interagency
and community cooperation and to reduce the duplication of
services provided to youth who have serious school attendance
and behavior problems.

(B) Notwithstanding subparagraph (A), for purposes of
conducting hearings, a county school attendance review board may
meet as needed.

(b) (1) Local school attendance review boards may include,
but need not be limited to, all of the following:

(A) A parent.

(B) A representative of school districts.

(C) A representative of the county probation department.

(D) A representative of the county welfare department.

(E) A representative of the county superintendent of schools.

(F) A representative of law enforcement agencies.

(G) A representative of community-based youth service centers.

(H) A representative of school guidance personnel.

(I) A representative of child welfare and attendance personnel.

(J) A representative of school or county health care personnel.

(K) A representative of school, county, or community mental
health personnel.

(L) A representative of the county district attorney’s office. If
more than one county is represented in a local school attendance
review board, a representative from each county’s district attorney’s
office may be included.

(M) A representative of the county public defender’s office. If
more than one county is represented in a county school attendance
review board, a representative from each county’s public defender’s
office may be included.

(2) Other persons or group representatives shall be appointed
by the county board of education.

(c) A county school attendance review board may elect, pursuant
to regulations adopted pursuant to Section 48324, one member as
chairperson with responsibility for coordinating services of the
county school attendance review board.

(d) A county school attendance review board may provide for
the establishment of local school attendance review boards in any
number as shall be necessary to carry out the intent of this article.

(e) In any county in which there is no county school attendance
review board the governing board of a school district may elect to
establish a local school attendance review board, which shall
operate in the same manner and have the same authority as a county
school attendance review board.

(f) A county school attendance review board may provide
guidance to local school attendance review boards.

(g) If the county school attendance review board determines
that the needs of pupils, as defined in this article, can best be served
by a single board, the county school attendance review board may
then serve as the school attendance review board for all pupils in
the county, or, upon the request of any school district in the county,
the county school attendance review board may serve as the school
attendance review board for pupils of that school district.

(h) This article is not intended to prohibit an agreement on the
part of counties to provide these services on a regional basis.

begin delete SEC. 102. end delete
begin insert SEC. 103. end insert   

The heading of Article 2 (commencing with Section
48810) of Chapter 5 of Part 27 of Division 4 of Title 2 of the Education Code is repealed.

begin delete SEC. 103. end delete
begin insert SEC. 104. end insert   

Section 48900.9 of the Education Code is amended
to read:

48900.9.  

(a) The superintendent of a school district, the
principal of a school, or the principal’s designee may refer a victim
of, witness to, or other pupil affected by, an act of bullying, as
defined in paragraph (1) of subdivision (r) of Section 48900,
committed on or after January 1, 2015, to the school counselor,
school psychologist, social worker, child welfare attendance
personnel, school nurse, or other school support service personnel
for case management, counseling, and participation in a restorative
justice program, as appropriate.

(b) A pupil who has engaged in an act of bullying, as defined
in paragraph (1) of subdivision (r) of Section 48900, may also be
referred to the school counselor, school psychologist, social worker,
child welfare attendance personnel, or other school support service
personnel for case management and counseling, or for participation
in a restorative justice program, pursuant to Section 48900.5.

begin delete SEC. 104. end delete
begin insert SEC. 105. end insert   

Section 49452.9 of the Education Code is amended
to read:

49452.9.  

(a) For purposes of the 2015-16, 2016-17, and
2017-18 school years, a public school, including a charter school,
shall add an informational item to its enrollment forms, or amend
an existing enrollment form, in order to provide the parent or legal
guardian information about health care coverage options and
enrollment assistance.

(b) To satisfy the requirements of subdivision (a), a school may
do either of the following:

(1) Use a template developed pursuant to subdivision (d).

(2) Develop an informational item or amend an existing
enrollment form to provide information about health care coverage
options and enrollment assistance.

(c) A school may include a factsheet with its enrollment forms
explaining basic information about affordable health care coverage
options for children and families.

(d) (1) The department shall develop a standardized template
for both of the following:

(A) The informational item or amendment required by
subdivision (a).

(B) The factsheet described in subdivision (c).

(2) The department shall make any templates developed pursuant
to this subdivision available on its Internet Web site on or before
August 1, 2015, and shall, upon request, provide written copies of
the template to a school district.

(e) A school district shall not discriminate against a pupil who
does not have health care coverage or use any information relating
to a pupil’s health care coverage or interest in learning about health
care coverage in any manner that would bring harm to the pupil
or the pupil’s family.

(f) This section shall remain in effect only until January 1, 2019,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2019, deletes or extends that date.

begin delete SEC. 105. end delete
begin insert SEC. 106. end insert   

Section 51747.3 of the Education Code, as amended
by Section 1 of Chapter 807 of the Statutes of 2014, is amended
to read:

51747.3.  

(a) Notwithstanding any other law, a local educational
agency, including, but not limited to, a charter school, shall not
claim state funding for the independent study of a pupil, whether
characterized as home study or otherwise, if the local educational
agency has provided any funds or other thing of value to the pupil
or his or her parent or guardian that the local educational agency
does not provide to pupils who attend regular classes or to their
parents or guardians. A charter school shall not claim state funding
for the independent study of a pupil, whether characterized as
home study or otherwise, if the charter school has provided any
funds or other thing of value to the pupil or his or her parent or
guardian that a school district could not legally provide to a
similarly situated pupil of the school district or to his or her parent
or guardian.

(b) (1) Notwithstanding paragraph (1) of subdivision (d) of
Section 47605 or any other law, and except as specified in
paragraph (2), community school and independent study average
daily attendance shall be claimed by school districts, county
superintendents of schools, and charter schools only for pupils
who are residents of the county in which the apportionment claim
is reported, or who are residents of a county immediately adjacent
to the county in which the apportionment claim is reported.

(2) In addition to claiming independent study average daily
attendance pursuant to paragraph (1), a virtual or online charter
school may also claim independent study average daily attendance
for a pupil who is enrolled in the school and moves to a residence
located outside of the geographic boundaries of the virtual or online
charter school. The virtual or online charter school may claim
independent study average daily attendance for the pupil under
this paragraph only for the duration of the course or courses in
which the pupil is enrolled or until the end of the school year,
whichever occurs first.

(c) The Superintendent shall not apportion funds for reported
average daily attendance, through full-time independent study, of
pupils who are enrolled in school pursuant to subdivision (b) of
Section 48204.

(d) In conformity with Provisions 25 and 28 of Item
6110-101-001 of Section 2.00 of the Budget Act of 1992, this
section is applicable to average daily attendance reported for
apportionment purposes beginning July 1, 1992. The provisions
of this section are not subject to waiver by the state board, by the
Superintendent, or under any provision of Part 26.8 (commencing
with Section 47600).

(e) For purposes of this section, “virtual or online charter school”
means a charter school in which at least 80 percent of teaching
and pupil interaction occurs via the Internet.

(f) This section shall remain in effect only until January 1, 2018,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2018, deletes or extends that date.

begin delete SEC. 106. end delete
begin insert SEC. 107. end insert   

Section 52064.5 of the Education Code is amended
to read:

52064.5.  

(a) On or before October 1, 2015, the state board
shall adopt evaluation rubrics for all of the following purposes:

(1) To assist a school district, county office of education, or
charter school in evaluating its strengths, weaknesses, and areas
that require improvement.

(2) To assist a county superintendent of schools in identifying
school districts and charter schools in need of technical assistance
pursuant to Section 52071 or 47607.3, as applicable, and the
specific priorities upon which the technical assistance should be
focused.

(3) To assist the Superintendent in identifying school districts
for which intervention pursuant to Section 52072 is warranted.

(b) The evaluation rubrics shall reflect a holistic,
multidimensional assessment of school district and individual
schoolsite performance and shall include all of the state priorities
described in subdivision (d) of Section 52060.

(c) As part of the evaluation rubrics, the state board shall adopt
standards for school district and individual schoolsite performance
and expectations for improvement in regard to each of the state
priorities described in subdivision (d) of Section 52060.

begin delete SEC. 107. end delete
begin insert SEC. 108. end insert   

Section 52852 of the Education Code is amended
to read:

52852.  

(a) A schoolsite council shall be established at each
school that participates in school-based program coordination. The
schoolsite council shall be composed of the principal and
representatives of: teachers selected by teachers at the school; other
school personnel selected by other school personnel at the school;
parents of pupils attending the school selected by the parents; and,
in secondary schools, pupils selected by pupils attending the school.

(b) (1) At the elementary level, the schoolsite council shall be
constituted to ensure parity between (A) the principal, classroom
teachers, and other school personnel; and (B) parents or other
community members selected by parents.

(2) At the secondary level, the schoolsite council shall be
constituted to ensure parity between (A) the principal, classroom
teachers, and other school personnel; and (B) an equal number of
parents, or other community members selected by parents, and
pupils.

(3) At both the elementary and secondary levels, classroom
teachers shall comprise the majority of persons represented under
subparagraph (A) of paragraphs (1) and (2).

(c) Existing schoolwide advisory groups or school support
groups may be utilized as the schoolsite council if those groups
conform to this section.

(d) The Superintendent shall provide several examples of
selection and replacement procedures that may be considered by
schoolsite councils.

(e) An employee of a school who is also a parent or guardian
of a pupil who attends a school other than the school of the parent’s
or guardian’s employment is not disqualified by virtue of this
employment from serving as a parent representative on the
schoolsite council established for the school that his or her child
or ward attends.

begin delete SEC. 108. end delete
begin insert SEC. 109. end insert   

The heading of Chapter 14 (commencing with
Section 52980) of Part 28 of Division 4 of Title 2 of the Education
Code is repealed.

begin delete SEC. 109. end delete
begin insert SEC. 110. end insert   

The heading of Article 8 (commencing with Section
54750) of Chapter 9 of Part 29 of Division 4 of Title 2 of the Education Code is repealed.

begin delete SEC. 110. end delete
begin insert SEC. 111. end insert   

The heading of Chapter 8.5 (commencing with
Section 56867) of Part 30 of Division 4 of Title 2 of the Education
Code is repealed.

begin delete SEC. 111. end delete
begin insert SEC. 112. end insert   

The heading of Article 7 (commencing with Section
66080) of Chapter 2 of Part 40 of Division 5 of Title 3 of the Education Code, as added by Section 2 of Chapter 200 of the
Statutes of 1995, is amended and renumbered to read:

 

Article 8.  English Proficiency in Higher Education

 

begin delete SEC. 112. end delete
begin insert SEC. 113. end insert   

Section 66261.5 of the Education Code, as added
by Section 38 of Chapter 569 of the Statutes of 2007, is amended
and renumbered to read:

66261.3.  

“Nationality” includes citizenship, country of origin,
and national origin.

begin delete SEC. 113. end delete
begin insert SEC. 114. end insert   

Section 66281.7 of the Education Code is amended
to read:

66281.7.  

(a) It is the policy of the State of California, pursuant
to Section 66251, that all persons, regardless of their sex, should
enjoy freedom from discrimination of any kind, including, but not
limited to, pregnancy discrimination as described in Title IX of
the Education Amendments of 1972 (20 U.S.C. Sec. 1681, et seq.),
in the postsecondary educational institutions of the state.

(b) Each of the following requirements apply to postsecondary
educational institutions in this state:

(1) A postsecondary educational institution, including the
faculty, staff, or other employees of the institution, shall not require
a graduate student to take a leave of absence, withdraw from the
graduate program, or limit his or her graduate studies solely due
to pregnancy or pregnancy-related issues.

(2) A postsecondary educational institution, including the
faculty, staff, or other employees of the institution, shall reasonably
accommodate pregnant graduate students so they may complete
their graduate courses of study and research. Reasonable
accommodation within the meaning of this subdivision may
include, but is not necessarily limited to, allowances for the
pregnant student’s health and safety, such as allowing the student
to maintain a safe distance from hazardous substances, allowing
the student to make up tests and assignments that are missed for
pregnancy-related reasons, or allowing the student to take a leave
of absence. Reasonable accommodation shall include the excusing
of absences that are medically necessary, as required under Title
IX.

(3) A graduate student who chooses to take a leave of absence
because she is pregnant or has recently given birth shall be allowed
a period consistent with the policies of the postsecondary
educational institution, or a period of 12 additional months,
whichever period is longer, to prepare for and take preliminary
and qualifying examinations and an extension of at least 12 months
toward normative time to degree while in candidacy for a graduate
degree, unless a longer extension is medically necessary.

(4) A graduate student who is not the birth parent and who
chooses to take a leave of absence because of the birth of his or
her child shall be allowed a period consistent with the policies of
the postsecondary educational institution, or a period of one month,
whichever period is longer, to prepare for and take preliminary
and qualifying examinations, and an extension of at least one month
toward normative time to degree while in candidacy for a graduate
degree, unless a longer period or extension is medically necessary
to care for his or her partner or their child.

(5) An enrolled graduate student in good academic standing
who chooses to take a leave of absence because she is pregnant or
has recently given birth shall return to her program in good
academic standing following a leave period consistent with the
policies of the postsecondary educational institution or of up to
one academic year, whichever period is longer, subject to the
reasonable administrative requirements of the institution, unless
there is a medical reason for a longer absence, in which case her
standing in the graduate program shall be maintained during that
period of absence.

(6) An enrolled graduate student in good academic standing
who is not the birth parent and who chooses to take a leave of
absence because of the birth of his or her child shall return to his
or her program in good academic standing following a leave period
consistent with the policies of the postsecondary educational
institution, or of up to one month, whichever period is longer,
subject to the reasonable administrative requirements of the
institution.

(c) Each postsecondary educational institution shall have a
written policy for graduate students on pregnancy discrimination
and procedures for addressing pregnancy discrimination complaints
under Title IX or this section. A copy of this policy shall be made
available to faculty, staff, and employees in their required training.
This policy shall be made available to all graduate students
attending orientation sessions at a postsecondary educational
institution.

begin delete SEC. 114. end delete
begin insert SEC. 115. end insert   

Section 67386 of the Education Code is amended
to read:

67386.  

(a) In order to receive state funds for student financial
assistance, the governing board of each community college district,
the Trustees of the California State University, the Regents of the
University of California, and the governing boards of independent
postsecondary institutions shall adopt a policy concerning sexual
assault, domestic violence, dating violence, and stalking, as defined
in the federal Higher Education Act of 1965 (20 U.S.C. Sec.
1092(f)), involving a student, both on and off campus. The policy
shall include all of the following:

(1) An affirmative consent standard in the determination of
whether consent was given by both parties to sexual activity.
“Affirmative consent” means affirmative, conscious, and voluntary
agreement to engage in sexual activity. It is the responsibility of
each person involved in the sexual activity to ensure that he or she
has the affirmative consent of the other or others to engage in the
sexual activity. Lack of protest or resistance does not mean consent,
nor does silence mean consent. Affirmative consent must be
ongoing throughout a sexual activity and can be revoked at any
time. The existence of a dating relationship between the persons
involved, or the fact of past sexual relations between them, should
never by itself be assumed to be an indicator of consent.

(2) A policy that, in the evaluation of complaints in any
disciplinary process, it shall not be a valid excuse to alleged lack
of affirmative consent that the accused believed that the
complainant consented to the sexual activity under either of the
following circumstances:

(A) The accused’s belief in affirmative consent arose from the
intoxication or recklessness of the accused.

(B) The accused did not take reasonable steps, in the
circumstances known to the accused at the time, to ascertain
whether the complainant affirmatively consented.

(3) A policy that the standard used in determining whether the
elements of the complaint against the accused have been
demonstrated is the preponderance of the evidence.

(4) A policy that, in the evaluation of complaints in the
disciplinary process, it shall not be a valid excuse that the accused
believed that the complainant affirmatively consented to the sexual
activity if the accused knew or reasonably should have known that
the complainant was unable to consent to the sexual activity under
any of the following circumstances:

(A) The complainant was asleep or unconscious.

(B) The complainant was incapacitated due to the influence of
drugs, alcohol, or medication, so that the complainant could not
understand the fact, nature, or extent of the sexual activity.

(C) The complainant was unable to communicate due to a mental
or physical condition.

(b) In order to receive state funds for student financial assistance,
the governing board of each community college district, the
Trustees of the California State University, the Regents of the
University of California, and the governing boards of independent
postsecondary institutions shall adopt detailed and victim-centered
policies and protocols regarding sexual assault, domestic violence,
dating violence, and stalking involving a student that comport with
best practices and current professional standards. At a minimum,
the policies and protocols shall cover all of the following:

(1) A policy statement on how the institution will provide
appropriate protections for the privacy of individuals involved,
including confidentiality.

(2) Initial response by the institution’s personnel to a report of
an incident, including requirements specific to assisting the victim,
providing information in writing about the importance of preserving
evidence, and the identification and location of witnesses.

(3) Response to stranger and nonstranger sexual assault.

(4) The preliminary victim interview, including the development
of a victim interview protocol, and a comprehensive followup
victim interview, as appropriate.

(5) Contacting and interviewing the accused.

(6) Seeking the identification and location of witnesses.

(7) Providing written notification to the victim about the
availability of, and contact information for, on- and off-campus
resources and services, and coordination with law enforcement,
as appropriate.

(8) Participation of victim advocates and other supporting
people.

(9) Investigating allegations that alcohol or drugs were involved
in the incident.

(10) Providing that an individual who participates as a
complainant or witness in an investigation of sexual assault,
domestic violence, dating violence, or stalking will not be subject
to disciplinary sanctions for a violation of the institution’s student
conduct policy at or near the time of the incident, unless the
institution determines that the violation was egregious, including,
but not limited to, an action that places the health or safety of any
other person at risk or involves plagiarism, cheating, or academic
dishonesty.

(11) The role of the institutional staff supervision.

(12) A comprehensive, trauma-informed training program for
campus officials involved in investigating and adjudicating sexual
assault, domestic violence, dating violence, and stalking cases.

(13) Procedures for confidential reporting by victims and third
parties.

(c) In order to receive state funds for student financial assistance,
the governing board of each community college district, the
Trustees of the California State University, the Regents of the
University of California, and the governing boards of independent
postsecondary institutions shall, to the extent feasible, enter into
memoranda of understanding, agreements, or collaborative
partnerships with existing on-campus and community-based
organizations, including rape crisis centers, to refer students for
assistance or make services available to students, including
counseling, health, mental health, victim advocacy, and legal
assistance, and including resources for the accused.

(d) In order to receive state funds for student financial assistance,
the governing board of each community college district, the
Trustees of the California State University, the Regents of the
University of California, and the governing boards of independent
postsecondary institutions shall implement comprehensive
prevention and outreach programs addressing sexual violence,
domestic violence, dating violence, and stalking. A comprehensive
prevention program shall include a range of prevention strategies,
including, but not limited to, empowerment programming for
victim prevention, awareness raising campaigns, primary
prevention, bystander intervention, and risk reduction. Outreach
programs shall be provided to make students aware of the
institution’s policy on sexual assault, domestic violence, dating
violence, and stalking. At a minimum, an outreach program shall
include a process for contacting and informing the student body,
campus organizations, athletic programs, and student groups about
the institution’s overall sexual assault policy, the practical
implications of an affirmative consent standard, and the rights and
responsibilities of students under the policy.

(e) Outreach programming shall be included as part of every
incoming student’s orientation.

begin delete SEC. 115. end delete
begin insert SEC. 116. end insert   

The heading of Article 7 (commencing with Section
68090) of Chapter 1 of Part 41 of Division 5 of Title 3 of the Education Code is repealed.

begin delete SEC. 116. end delete
begin insert SEC. 117. end insert   

Section 69437 of the Education Code is amended
to read:

69437.  

(a) Commencing with the 2001-02 academic year, and
each academic year thereafter, there shall be established the
Competitive Cal Grant A and B award program for students who
did not receive a Cal Grant A or B entitlement award pursuant to
Article 2 (commencing with Section 69434), Article 3
(commencing with Section 69435), or Article 4 (commencing with
Section 69436). Awards made under this section are not
entitlements. The submission of an application by a student under
this section does not entitle that student to an award. The selection
of students under this article shall be determined pursuant to
subdivision (c) and other relevant criteria established by the
commission.

(b) A total of 22,500 Cal Grant A and B awards shall be granted
annually under this article on a competitive basis for applicants
who meet the general eligibility criteria established in Article 1
(commencing with Section 69430) and the priorities established
by the commission pursuant to subdivision (c).

(1) Fifty percent of the awards referenced in this subdivision
are available to all students, including California community
college students, who meet the financial need and academic
requirements established pursuant to this article. A student
enrolling at a qualifying baccalaureate degree granting institution
shall apply by the March 2 deadline. A California community
college student is eligible to apply at the March 2 or the September
2 deadline.

(2) Fifty percent of the awards referenced in this subdivision
are reserved for students who will be enrolled at a California
community college. The commission shall establish a second
application deadline of September 2 for community college
students to apply for these awards effective with the fall term or
semester of the 2001-02 academic year.

(3) If any awards are not distributed pursuant to paragraphs (1)
and (2) upon initial allocation of the awards under this article, the
commission shall make awards to as many eligible students as
possible, beginning with the students with the lowest expected
family contribution and highest academic merit, consistent with
the criteria adopted by the commission pursuant to subdivision
(c), as practicable without exceeding an annual cumulative total
of 22,500 awards.

(c) (1) On or before February 1, 2001, acting pursuant to a
public hearing process that is consistent with the Bagley-Keene
Open Meeting Act (Article 9 (commencing with Section 11120)
of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government
Code), the commission shall establish selection criteria for Cal
Grant A and B awards under the competitive program that give
special consideration to disadvantaged students, taking into
consideration those financial, educational, cultural, language,
home, community, environmental, and other conditions that hamper
a student’s access to, and ability to persist in, postsecondary
education programs.

(2) Additional consideration shall be given to both of the
following:

(A) Students pursuing Cal Grant B awards who reestablish their
grade point averages.

(B) Students who did not receive awards pursuant to Article 2
(commencing with Section 69434), Article 3 (commencing with
Section 69435), or Article 4 (commencing with Section 69436).

(d) All other students who meet the eligibility requirements
pursuant to Article 1 (commencing with Section 69430) are eligible
to compete for an award pursuant to this article.

begin delete SEC. 117. end delete
begin insert SEC. 118. end insert   

Section 70022 of the Education Code is amended
to read:

70022.  

(a) (1) Subject to an available and sufficient
appropriation, commencing with the 2014-15 academic year, an
undergraduate student enrolled in the California State University
or the University of California who meets the requirements of
paragraph (2) is eligible for a scholarship award as described in
that paragraph.

(2) Each academic year, except as provided in paragraphs (3)
and (4), a student shall receive a scholarship award in an amount
that, combined with other federal, state, or institutionally
administered student grants or fee waivers received by an eligible
student, is up to 40 percent of the amount charged to that student
in that academic year for mandatory systemwide tuition and fees,
if all of the following requirements are met:

(A) The student’s annual household income does not exceed
one hundred fifty thousand dollars ($150,000). For purposes of
this article, annual household income shall be calculated in a
manner that is consistent with the requirements applicable to the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program
(Chapter 1.7 (commencing with Section 69430)) and Section
69506.

(B) The student satisfies the eligibility requirements for a Cal
Grant award pursuant to Section 69433.9, except that a student
who is exempt from nonresident tuition under Section 68130.5
shall not be required to satisfy the requirements of subdivision (a)
of Section 69433.9.

(C) The student is exempt from paying nonresident tuition.

(D) The student completes and submits a Free Application for
Federal Student Aid (FAFSA) application. The FAFSA must be
submitted or postmarked by no later than March 2. If the student
is not able to complete a FAFSA application, the student may
satisfy this subparagraph by submitting an application determined
by the commission to be equivalent to the FAFSA application for
purposes of this article by March 2.

(E) The student makes a timely application or applications for
all other federal, state, or institutionally administered grants or fee
waivers for which the student is eligible.

(F) The student maintains satisfactory academic progress in a
manner that is consistent with the requirements applicable to the
Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program
pursuant to subdivision (m) of Section 69432.7.

(G) The student is pursuing his or her first undergraduate
baccalaureate degree or has completed a baccalaureate degree and
has been admitted to, and is enrolled in, a program of professional
teacher preparation at an institution approved by the California
Commission on Teacher Credentialing.

(H) The student is enrolled at least part time.

(3)  (A)  The percentage specified in paragraph (2) shall be
reduced by 0.6-percent increments per one thousand dollars
($1,000) of annual household income in excess of one hundred
thousand dollars ($100,000), to a minimum 10 percent of
mandatory systemwide tuition and fees for an academic year,
provided that no scholarship award shall be provided to a student
with an annual household income exceeding one hundred fifty
thousand dollars ($150,000). This reduction shall be in addition
to any reduction required by subdivision (e) of Section 70023.

(B) Notwithstanding subparagraph (A), for any student who
qualifies for a scholarship award of at least one dollar ($1), the
minimum annual scholarship amount for full-time enrollment is
ninety dollars ($90).

(4) For the 2014-15, 2015-16, and 2016-17 academic years,
the maximum amount of a student’s scholarship award shall be 35
percent, 50 percent, and 75 percent, respectively, of the total
scholarship award amount that the student would otherwise be
eligible to receive.

(b) In order for students enrolled in their respective segments
to remain eligible to receive a scholarship award under this article,
the University of California and the California State University
shall not supplant their respective institutional need-based grants
with the funds provided for scholarships under this article, and
shall maintain their funding amounts at a level that, at a minimum,
is equal to the level maintained for undergraduate students during
the 2013-14 academic year.

(c) The University of California and the California State
University shall report on the implementation of this article as part
of the report made pursuant to Section 66021.1.

(d) A Middle Class Scholarship Program award authorized
pursuant to this article shall be defined as a full-time equivalent
grant. An award to a part-time student shall be a fraction of a
full-time grant, as determined by the proportionate amount charged
for systemwide tuition and fees. A part-time student shall not be
discriminated against in the selection of Middle Class Scholarship
Program awards. For purposes of this section, “full-time” and
“part-time” have the same meaning as specified in subdivision (f)
of Section 69432.7.

begin delete SEC. 118. end delete
begin insert SEC. 119. end insert   

Section 70037 of the Education Code is amended
to read:

70037.  

(a) The Trustees of the California State University and
the Regents of the University of California shall adopt regulations
providing for the withholding of institutional services from a
student or former student who has been notified in writing at the
student’s or former student’s last known address that he or she is
in default on a loan or loans under the DREAM Program.

(b) (1) The regulations adopted pursuant to subdivision (a) shall
provide that the services withheld may be provided during a period
when the facts are in dispute or when the student or former student
demonstrates to either the Trustees of the California State
University or the Regents of the University of California, as
applicable, that reasonable progress has been made to repay the
loan or that there exists a reasonable justification for the delay as
determined by the institution. The regulations shall specify the
services to be withheld from the student, which may include, but
are not limited to, the following:

(A) The provision of grades.

(B) The provision of transcripts.

(C) The provision of diplomas.

(2) The services withheld pursuant to paragraph (1) shall not
include the withholding of registration privileges.

(c) “Default,” for purposes of this section, means the failure of
a borrower to make an installment payment when due, or to meet
other terms of the promissory note under circumstances in which
the institution holding the loan finds it reasonable to conclude that
the borrower no longer intends to honor the obligation to repay,
provided that this failure persists for 180 days for a loan repayable
in monthly installments, or 240 days for a loan repayable in less
frequent installments.

(d) This section does not impose any requirement upon the
University of California unless the Regents of the University of
California, by resolution, makes this section applicable.

begin delete SEC. 119. end delete
begin insert SEC. 120. end insert   

The heading of Article 3 (commencing with Section
72632) of Chapter 6 of Part 45 of Division 7 of Title 3 of the Education Code is repealed.

begin delete SEC. 120. end delete
begin insert SEC. 121. end insert   

Section 76030 of the Education Code is amended
to read:

76030.  

(a) Consistent with requirements of due process of law,
with this article, and with the rules of student conduct adopted by
the governing board under Section 66300, the governing board,
the president of a community college or the president’s designee,
or an instructor shall suspend a student for good cause. In addition,
the governing board is authorized to expel a student for good cause
when other means of correction fail to bring about proper conduct,
or when the presence of the student causes a continuing danger to
the physical safety of the student or others. The suspension or
expulsion of a student shall be accompanied by a hearing conducted
pursuant to the requirements of Section 66017.

(b) (1) Notwithstanding any other law, if an order requested
by a community college district to protect a campus of a
community college district or any person regularly present on a
campus of that district is issued upon a finding of good cause by
a court against a student of that community college district, and
the order prevents that student from attending classes and
maintaining his or her academic standing, the community college
district may require the student to apply for reinstatement after the
expiration of that order. If the district requires the student to apply
for reinstatement, it shall do so before the expiration of the
protective order. If a student applies for reinstatement under this
paragraph, a review with respect to the application shall be
conducted. This review, at a minimum, shall include consideration
of all of the following issues:

(A) The gravity of the offense.

(B) Evidence of subsequent offenses, if any.

(C) The likelihood that the student would cause substantial
disruption if he or she is reinstated.

(2) The governing board of the community college district, or
the person to whom authority is delegated pursuant to subdivision
(f) of Section 76038, shall take one of the following actions after
conducting a review under paragraph (1):

(A) Deny reinstatement.

(B) Permit reinstatement.

(C) Permit conditional reinstatement and specify the conditions
under which reinstatement will be permitted.

begin delete SEC. 121. end delete
begin insert SEC. 122. end insert   

Section 78261.5 of the Education Code is amended
to read:

78261.5.  

(a) A community college registered nursing program
that determines that the number of applicants to that program
exceeds its capacity may admit students in accordance with any
of the following procedures:

(1) Administration of a multicriteria screening process, as
authorized by Section 78261.3, in a manner that is consistent with
the standards set forth in subdivision (b).

(2) A random selection process.

(3) A blended combination of random selection and a
multicriteria screening process.

(b) A community college registered nursing program that elects,
on or after January 1, 2008, to use a multicriteria screening process
to evaluate applicants pursuant to this article shall apply those
measures in accordance with all of the following:

(1) The criteria applied in a multicriteria screening process under
this article shall include, but shall not necessarily be limited to, all
of the following:

(A) Academic degrees or diplomas, or relevant certificates, held
by an applicant.

(B) Grade-point average in relevant coursework.

(C) Any relevant work or volunteer experience.

(D) Life experiences or special circumstances of an applicant,
including, but not necessarily limited to, the following experiences
or circumstances:

(i) Disabilities.

(ii) Low family income.

(iii) First generation of family to attend college.

(iv) Need to work.

(v) Disadvantaged social or educational environment.

(vi) Difficult personal and family situations or circumstances.

(vii) Refugee or veteran status.

(E) Proficiency or advanced level coursework in languages other
than English. Credit for languages other than English shall be
received for languages that are identified by the chancellor as
high-frequency languages, as based on census data. These
languages may include, but are not necessarily limited to, any of
the following:

(i) American Sign Language.

(ii) Arabic.

(iii) Chinese, including its various dialects.

(iv) Farsi.

(v) Russian.

(vi) Spanish.

(vii) Tagalog.

(viii) The various languages of the Indian subcontinent and
Southeast Asia.

(2) Additional criteria, such as a personal interview, a personal
statement, letter of recommendation, or the number of repetitions
of prerequisite classes, or other criteria, as approved by the
chancellor, may be used, but are not required.

(3) A community college registered nursing program using a
multicriteria screening process under this article may use an
approved diagnostic assessment tool, in accordance with Section
78261.3, before, during, or after the multicriteria screening process.

(4) As used in this section:

(A) “Disabilities” has the same meaning as used in Section 2626
of the Unemployment Insurance Code.

(B) “Disadvantaged social or educational environment” includes,
but is not necessarily limited to, the status of a student who has
participated in Extended Opportunity Programs and Services
(EOPS).

(C) “Grade-point average” refers to the same fixed set of
required prerequisite courses that all applicants to the nursing
program administering the multicriteria screening process are
required to complete.

(D) “Low family income” shall be measured by a community
college registered nursing program in terms of a student’s eligibility
for, or receipt of, financial aid under a program that may include,
but is not necessarily limited to, a fee waiver from the board of
governors under Section 76300, the Cal Grant Program under
Chapter 1.7 (commencing with Section 69430) of Part 42 of
Division 5, the federal Pell Grant program, or CalWORKs.

(E) “Need to work” means that the student is working at least
part time while completing academic work that is a prerequisite
for admission to the nursing program.

(5) A community college registered nursing program that uses
a multicriteria screening process pursuant to this article shall report
its nursing program admissions policies to the chancellor annually,
in writing. The admissions policies reported under this paragraph
shall include the weight given to any criteria used by the program,
and shall include demographic information relating to both the
persons admitted to the program and the persons of that group who
successfully completed that program.

(c) The chancellor is encouraged to develop, and make available
to community college registered nursing programs by July 1, 2008,
a model admissions process based on this section.

(d) (1) The chancellor shall submit a report on or before March
1, 2015, and on or before each March 1 thereafter, to the
Legislature and the Governor that examines and includes, but is
not necessarily limited to, both of the following:

(A) The participation, retention, and completion rates in
community college registered nursing programs of students
admitted through a multicriteria screening process, as described
in this section, disaggregated by the age, gender, ethnicity, and the
language spoken at the home of those students.

(B) Information on the annual impact, if any, the
Seymour-Campbell Student Success Act had on the matriculation
services for students admitted through the multicriteria screening
process, as described in this section.

(2) The chancellor shall submit the annual report required in
paragraph (1) in conjunction with its annual report on associate
degree nursing programs required by subdivision (h) of Section
78261.

(e) This section shall remain in effect only until January 1, 2020,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2020, deletes or extends that date.

begin delete SEC. 122. end delete
begin insert SEC. 123. end insert   

The heading of Article 8 (commencing with Section
78310) of Chapter 2 of Part 48 of Division 7 of Title 3 of the Education Code is repealed.

begin delete SEC. 123. end delete
begin insert SEC. 124. end insert   

The heading of Article 3 (commencing with Section
78440) of Chapter 3 of Part 48 of Division 7 of Title 3 of the Education Code is repealed.

begin delete SEC. 124. end delete
begin insert SEC. 125. end insert   

The heading of Chapter 4 (commencing with Section
78600) of Part 48 of Division 7 of Title 3 of the Education Code
is repealed.

begin delete SEC. 125. end delete
begin insert SEC. 126. end insert   

The heading of Article 4 (commencing with Section
82360) of Chapter 7 of Part 49 of Division 7 of Title 3 of the Education Code is repealed.

begin delete SEC. 126. end delete
begin insert SEC. 127. end insert   

Section 82542 of the Education Code, as amended
by Section 1 of Chapter 233 of the Statutes of 2014, is amended
to read:

82542.  

(a) Except as provided in subdivision (b), the governing
board of a community college district shall grant without charge
the use of any college facilities or grounds under its control,
pursuant to the requirements of this article, when an alternative
location is not available, to nonprofit organizations and clubs and
associations organized for general character building or welfare
purposes, such as:

(1) Student clubs and organizations.

(2) Fundraising entertainments or meetings where admission
fees charged or contributions solicited are expended for the welfare
of the students of the district.

(3) Parent-teachers’ associations.

(4) School-community advisory councils.

(5) Camp Fire Girls, Girl Scout troops, and Boy Scout troops.

(6) Senior citizens’ organizations.

(7) Other public agencies.

(8) Organizations, clubs, or associations organized for cultural
activities and general character building or welfare purposes, such
as folk and square dancing.

(9) Groups organized for the purpose specified in subdivision
(k).

(b) The governing board may charge those organizations and
activities listed in subdivision (a) an amount not to exceed the
following:

(1) The cost of opening and closing the facilities, if no college
employees would otherwise be available to perform that function
as a part of their normal duties.

(2) The cost of a college employee’s presence during the
organization’s use of the facilities, if the governing board
determines that the supervision is needed, and if that employee
would not otherwise be present as part of his or her normal duties.

(3) The cost of janitorial services, if the services are necessary,
and would not have otherwise been performed as part of the
janitor’s normal duties.

(4) The cost of utilities directly attributable to the organization’s
use of the facilities.

(c) The governing board may charge an amount not to exceed
its direct costs or not to exceed fair rental value of college facilities
and grounds under its control, and pursuant to the requirements of
this article, for activities other than those specified in subdivision
(a). A governing board that decides to levy these charges shall first
adopt a policy specifying which activities shall be charged an
amount not to exceed direct costs and which activities shall be
charged an amount not to exceed fair rental value.

(d) (1) As used in this section, “direct costs” to the district for
the use of college facilities or grounds includes all of the following:

(A) The share of the costs of supplies, utilities, janitorial
services, services of any other district employees, and salaries paid
to community college district employees to operate and maintain
college facilities or grounds that is proportional to the
organization’s use of the college facilities and grounds of the
district under this section.

(B) The share of the costs for maintenance, repair, restoration,
and refurbishment, proportional to the use of the college facilities
or grounds by the organization using the college facilities or
grounds under this section. For purposes of this subparagraph,
“college facilities” shall be limited to only nonclassroom space,
and “grounds” shall include, but not be limited to, playing fields,
athletic fields, track and field venues, tennis courts, and outdoor
basketball courts.

(2) The share of the costs for maintenance, repair, restoration,
and refurbishment shall not apply to either of the following:

(A) Classroom-based programs that operate after school hours,
including, but not limited to, after school programs, tutoring
programs, or child care programs.

(B) Organizations retained by the college or community college
district to provide instruction or instructional activities to students
during school hours.

(3) Funds collected pursuant to this subdivision shall be
deposited into a special fund that shall only be used for purposes
of this section.

(e) By December 31, 2015, the Chancellor of the California
Community Colleges shall develop, and the Board of Governors
of the California Community Colleges shall adopt, regulations to
be used by a governing board of a community college district in
determining the proportionate share and the specific allowable
costs that a community college district may include as direct costs
for the use of its college facilities or grounds.

(f) As used in this section, “fair rental value” means the direct
costs to the district, plus the amortized costs of the college facilities
or grounds used for the duration of the activity authorized.

(g) The governing board of a community college district that
authorizes the use of college facilities or grounds for the purpose
specified in subdivision (h) shall charge the church or religious
denomination an amount at least equal to the fair rental value of
the facilities or grounds.

(h) The governing board of a community college district may
grant the use of college facilities or grounds to any church or
religious organization for the conduct of religious services for
temporary periods where the church or organization has no suitable
meeting place for the conduct of these services upon the terms and
conditions as the board deems proper, and subject to the limitations,
requirements, and restrictions set forth in this article. The governing
board shall charge the church or religious organization using the
property for the conduct of religious services a fee as specified in
subdivision (g).

(i) For entertainment or a meeting where an admission fee is
charged or a contribution is solicited and the net receipts of the
admission fees or contributions are not expended for the welfare
of the students of the district or for charitable purposes, a charge
equal to fair rental value shall be levied for the use of the college
facilities, property, and grounds, as determined by the governing
board of the district.

(j) The governing board may permit the use, without charge,
by organizations, clubs, or associations organized for senior citizens
and for cultural activities and general character building or welfare
purposes, when membership dues or contributions solely for the
support of the organization, club, or association, or the
advancement of its cultural, character building, or welfare work,
are accepted.

(k) The governing board of a community college district may
grant the use of college facilities, grounds, and equipment to public
agencies, including the American Red Cross, for mass care and
welfare shelters during disasters or other emergencies affecting
the public health and welfare, and may cooperate with these
agencies in furnishing and maintaining services deemed by the
governing board to be necessary to meet the needs of the
community.

(l) This section shall remain in effect only until January 1, 2020,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2020, deletes or extends that date.

begin delete SEC. 127. end delete
begin insert SEC. 128. end insert   

Section 82542 of the Education Code, as added by
Section 2 of Chapter 233 of the Statutes of 2014, is amended to
read:

82542.  

(a) Except as provided in subdivision (b), the governing
board of a community college district shall grant without charge
the use of any college facilities or grounds under its control,
pursuant to the requirements of this article, when an alternative
location is not available, to nonprofit organizations and clubs and
associations organized for general character building or welfare
purposes, such as:

(1) Student clubs and organizations.

(2) Fundraising entertainments or meetings where admission
fees charged or contributions solicited are expended for the welfare
of the students of the district.

(3) Parent-teachers’ associations.

(4) School-community advisory councils.

(5) Camp Fire Girls, Girl Scout troops, and Boy Scout troops.

(6) Senior citizens’ organizations.

(7) Other public agencies.

(8) Organizations, clubs, or associations organized for cultural
activities and general character building or welfare purposes, such
as folk and square dancing.

(9) Groups organized for the purpose specified in subdivision
(g).

(b) The governing board may charge those organizations and
activities listed in subdivision (a) an amount not to exceed the
following:

(1) The cost of opening and closing the facilities, if no college
employees would otherwise be available to perform that function
as a part of their normal duties.

(2) The cost of a college employee’s presence during the
organization’s use of the facilities, if the governing board
determines that the supervision is needed, and if that employee
would not otherwise be present as part of his or her normal duties.

(3) The cost of janitorial services, if the services are necessary,
and would not have otherwise been performed as part of the
janitor’s normal duties.

(4) The cost of utilities directly attributable to the organization’s
use of the facilities.

(c) The governing board may charge an amount not to exceed
its direct costs or not to exceed fair rental value of college facilities
and grounds under its control, and pursuant to the requirements of
this article, for activities other than those specified in subdivision
(a). A governing board that decides to levy these charges shall first
adopt a policy specifying which activities shall be charged an
amount not to exceed direct costs and which activities shall be
charged an amount not to exceed fair rental value.

(1) As used in this section, “direct costs” to the district for the
use of college facilities or grounds means those costs of supplies,
utilities, janitorial services, services of any other district employees,
and salaries paid community college district employees necessitated
by the organization’s use of the college facilities and grounds of
the district.

(2) As used in this section, “fair rental value” means the direct
costs to the district, plus the amortized costs of the college facilities
or grounds used for the duration of the activity authorized.

(d) The governing board of a community college district that
authorizes the use of college facilities or grounds for the purpose
specified in subdivision (e) shall charge the church or religious
denomination an amount at least equal to the fair rental value of
the facilities or grounds.

(e) The governing board of a community college district may
grant the use of college facilities or grounds to any church or
religious organization for the conduct of religious services for
temporary periods where the church or organization has no suitable
meeting place for the conduct of these services upon the terms and
conditions as the board deems proper, and subject to the limitations,
requirements, and restrictions set forth in this article. The governing
board shall charge the church or religious organization using the
property for the conduct of religious services a fee as specified in
subdivision (d).

(f) For entertainment or a meeting where an admission fee is
charged or a contribution is solicited and the net receipts of the
admission fees or contributions are not expended for the welfare
of the students of the district or for charitable purposes, a charge
shall be made for the use of the college facilities, property, and
grounds, which charge shall not be less than the fair rental value
for the use of the college facilities, property, and grounds, as
determined by the governing board of the district.

(g) The governing board may permit the use, without charge,
by organizations, clubs, or associations organized for senior citizens
and for cultural activities and general character building or welfare
purposes, when membership dues or contributions solely for the
support of the organization, club, or association, or the
advancement of its cultural, character building, or welfare work,
are accepted.

(h) The governing board of a community college district may
grant the use of college facilities, grounds, and equipment to public
agencies, including the American Red Cross, for mass care and
welfare shelters during disasters or other emergencies affecting
the public health and welfare, and may cooperate with these
agencies in furnishing and maintaining services deemed by the
governing board to be necessary to meet the needs of the
community.

(i) This section is operative on and after January 1, 2020.

begin delete SEC. 128. end delete
begin insert SEC. 129. end insert   

The heading of Article 1 (commencing with Section
84300) of Chapter 3 of Part 50 of Division 7 of Title 3 of the Education Code is repealed.

begin delete SEC. 129. end delete
begin insert SEC. 130. end insert   

The heading of Article 2 (commencing with Section
85210) of Chapter 8 of Part 50 of Division 7 of Title 3 of the Education Code is repealed.

begin delete SEC. 130. end delete
begin insert SEC. 131. end insert   

Section 87782 of the Education Code is amended
to read:

87782.  

(a) An academic employee of a community college
district who has been an employee of that district for a period of
one school year or more shall have transferred with him or her to
a second district the total amount of leave of absence for illness
or injury to which he or she is entitled under Section 87781 in any
of the following circumstances:

(1) The person accepts an academic position in a school district
or community college district at any time during the second or any
succeeding school year of his or her employment with the first
district.

(2) The person, within the three school years succeeding the
school year in which the employment in the first district is
terminated, signifies acceptance of his or her election or
employment in an academic position in another district.

(3) The person, prior to the expiration of a period greater than
three years during which the employee’s reemployment rights are
in effect under a local bargaining agreement in the first district,
signifies acceptance of his or her election or employment in an
academic position in another district.

(b) The board of governors shall adopt rules and regulations
prescribing the manner in which the first district shall certify to
the second district the total amount of leave of absence for illness
or injury to be transferred. No governing board shall adopt any
policy or rule, written or unwritten, that requires any employee
transferring to its district to waive any part or all of the leave of
absence that he or she may be entitled to have transferred in
accordance with this section.

begin delete SEC. 131. end delete
begin insert SEC. 132. end insert   

Section 87784.5 of the Education Code is amended
to read:

87784.5.  

(a) An academic employee may take up to 30 days
of leave in a school year, less any days of leave authorized pursuant
to Sections 87781.5 and 87784, in either of the following
circumstances:

(1) A biological parent may use leave pursuant to this section
within the first year of his or her infant’s birth.

(2) A nonbiological parent may use leave pursuant to this section
within the first year of legally adopting a child.

(b) If the provisions of this section are in conflict with the terms
of a collective bargaining agreement in effect before January 1,
2015, the provisions of this section do not apply to the public
employer and public employees subject to that agreement until the
expiration or renewal of the agreement.

begin delete SEC. 132. end delete
begin insert SEC. 133. end insert   

Section 88207.5 of the Education Code is amended
to read:

88207.5.  

(a) A contract or regular employee may use up to 30
days of leave in a school year, less any days of leave authorized
pursuant to Section 88207, in either of the following circumstances:

(1) A biological parent may use leave pursuant to this section
within the first year of his or her infant’s birth.

(2) A nonbiological parent may use leave pursuant to this section
within the first year of legally adopting a child.

(b) If the provisions of this section are in conflict with the terms
of a collective bargaining agreement in effect before January 1,
2015, the provisions of this section do not apply to the public
employer and public employees subject to that agreement until the
expiration or renewal of the agreement.

begin delete SEC. 133. end delete
begin insert SEC. 134. end insert   

Section 89005 of the Education Code is amended
to read:

89005.  

All references in law or regulation to the “California
State Colleges,” to the “California State University and Colleges,”
or to “state colleges” shall be deemed to refer to the California
State University and to the system of institutions of higher
education that comprises the California State University as
authorized in Section 89001. The term “campus” shall mean any
of the institutions included within the California State University
specified in Section 89001.

begin delete SEC. 134. end delete
begin insert SEC. 135. end insert   

Section 89295 of the Education Code is amended
to read:

89295.  

(a) For purposes of this section, the following terms
are defined as follows:

(1) The “four-year graduation rate” means the percentage of a
cohort of undergraduate students who entered the university as
freshmen at any campus and graduated from any campus within
four years.

(2) The “six-year graduation rate” means the percentage of a
cohort of undergraduate students who entered the university as
freshmen at any campus and graduated from any campus within
six years.

(3) The “two-year transfer graduation rate” means the percentage
of a cohort of undergraduate students who entered the university
at any campus as junior-level transfer students from the California
Community Colleges and graduated from any campus within two
years.

(4) The “three-year transfer graduation rate” means the
percentage of a cohort of undergraduate students who entered the
university at any campus as junior-level transfer students from the
California Community Colleges and graduated from any campus
within three years.

(5) The “four-year transfer graduation rate” means the
percentage of a cohort of undergraduate students who entered the
university at any campus as junior-level transfer students from the
California Community Colleges and graduated from any campus
within four years.

(6) “Low-income student” means an undergraduate student who
has an expected family contribution, as defined in subdivision (g)
of Section 69432.7, at any time during the student’s matriculation
at the institution that would qualify the student to receive a federal
Pell Grant. The calculation of a student’s expected family
contribution shall be based on the Free Application for Federal
Student Aid (FAFSA) application or an application determined by
the Student Aid Commission to be equivalent to the FAFSA
application submitted by that applicant.

(b) Commencing with the 2013-14 academic year, the California
State University shall report, by March 15 of each year, on the
following performance measures for the preceding academic year,
to inform budget and policy decisions and promote the effective
and efficient use of available resources:

(1) The number of California Community College transfer
students enrolled and the percentage of California Community
College transfer students as a proportion of the total number of
undergraduate students enrolled.

(2) The number of new California Community College transfer
students enrolled and the percentage of new California Community
College transfer students as a proportion of the total number of
new undergraduate students enrolled.

(3) The number of low-income students enrolled and the
percentage of low-income students as a proportion of the total
number of undergraduate students enrolled.

(4) The number of new low-income students enrolled and the
percentage of new low-income students as a proportion of the total
number of new undergraduate students enrolled.

(5) The four-year graduation rate for students who entered the
university four years prior and, separately, for low-income students
in that cohort.

(6) The four-year and six-year graduation rates for students who
entered the university six years prior and, separately, for
low-income students in that cohort.

(7) The two-year transfer graduation rate for students who
entered the university two years prior and, separately, for
low-income students in that cohort.

(8) The two-year and three-year transfer graduation rates for
students who entered the university three years prior and,
separately, for low-income students in that cohort.

(9) The two-year, three-year, and four-year transfer graduation
rates for students who entered the university four years prior and,
separately, for low-income students in that cohort.

(10) The number of degree completions annually, in total and
for the following categories:

(A) Freshman entrants.

(B) California Community College transfer students.

(C) Graduate students.

(D) Low-income students.

(11) The percentage of freshman entrants who have earned
sufficient course credits by the end of their first year of enrollment
to indicate that they will graduate within four years.

(12) The percentage of California Community College transfer
students who have earned sufficient course credits by the end of
their first year of enrollment to indicate that they will graduate
within two years.

(13) For all students, the total amount of funds received from
all sources identified in subdivision (c) of Section 89290 for the
year, divided by the number of degrees awarded that same year.

(14) For undergraduate students, the total amount of funds
received from all sources identified in subdivision (c) of Section
89290 for the year expended for undergraduate education, divided
by the number of undergraduate degrees awarded that same year.

(15) The average number of California State University course
credits and the total course credits, including credits accrued at
other institutions, accumulated by all undergraduate students who
graduated, and separately for freshman entrants and California
Community College transfer students.

(16) (A) The number of degree completions in science,
technology, engineering, and mathematics (STEM) fields, in total,
and separately for undergraduate students, graduate students, and
low-income students.

(B) For purposes of subparagraph (A), “STEM fields” include,
but are not necessarily limited to, all of the following: computer
and information sciences, engineering and engineering
technologies, biological and biomedical sciences, mathematics
and statistics, physical sciences, and science technologies.

(c) It is the intent of the Legislature that the appropriate policy
and fiscal committees of the Legislature review these performance
measures in a collaborative process with the Department of
Finance, the Legislative Analyst’s Office, individuals with
expertise in statewide accountability efforts, the University of
California, the California State University, and, for purposes of
data integrity and consistency, the California Community Colleges,
and consider any recommendations for their modification and
refinement. It is further the intent of the Legislature that any
modification or refinement of these measures be guided by the
legislative intent expressed in Section 66010.93.

begin delete SEC. 135. end delete
begin insert SEC. 136. end insert   

Section 89500.7 of the Education Code is amended
to read:

89500.7.  

(a) The trustees shall offer, on at least a semiannual
basis, to each of the university’s filers, an orientation course on
the relevant ethics statutes and regulations that govern the official
conduct of university officials.

(b) As used in this section, “filer” means each member, officer,
or designated employee of the California State University,
including a trustee, who, because of his or her affiliation with the
university or any subdivision or campus thereof, is required to file
a Statement of Economic Interests in accordance with Chapter 7
(commencing with Section 87100) of Title 9 of the Government
Code.

(c) The trustees shall maintain records indicating the specific
attendees, each attendee’s job title, and dates of their attendance
for each orientation course offered pursuant to this section. These
records shall be maintained for a period of at least five years after
each course is offered. These records shall be public records subject
to inspection and copying in accordance with Section 81008 of
the Government Code and any other public records disclosure laws
that are applicable to the university.

(d) Except as provided in subdivision (e), each filer shall attend
the orientation course established pursuant to subdivision (a) in
accordance with both of the following:

(1) For a person who, as of January 1, 2005, is a filer, as defined
in subdivision (b), not later than December 31, 2005, and thereafter,
at least once during each consecutive period of two calendar years
commencing on January 1, 2007.

(2) For a person who becomes a filer, as defined in subdivision
(b), after January 1, 2005, within six months after he or she
becomes a filer, and at least once during each consecutive period
of two calendar years commencing on January 1 of the first
odd-numbered year thereafter.

(e) The requirements of subdivision (d) do not apply to a filer,
as defined in subdivision (b), who has taken an ethics orientation
course through another state agency or the Legislature within the
periods set forth in paragraphs (1) and (2) of subdivision (d) if, in
the determination of the trustees, that course covered substantially
the same material as the course the university would offer to the
filer pursuant to this section.

begin delete SEC. 136. end delete
begin insert SEC. 137. end insert   

Section 89770 of the Education Code is amended
to read:

89770.  

(a) (1) The California State University may pledge,
in addition to any of its other revenues that the university chooses
to pledge, its annual General Fund support appropriation less the
amount of that appropriation required to fund general obligation
bond payments and State Public Works Board rental payments, to
secure the payment of debt obligations issued by the Trustees of
the California State University pursuant to the State University
Revenue Bond Act of 1947 (Article 2 (commencing with Section
90010) of Chapter 8).

(2) To the extent the university pledges any part of its support
appropriation as a source of revenue securing any obligation, it
shall provide that this commitment of revenue is subject to annual
appropriation by the Legislature.

(3) The university may fund debt service for capital expenditures
defined in subdivision (b), and the costs or expenses incidental to
the issuance and sale of bonds to finance those costs, including,
but not limited to, capitalized interest on the bonds, from its
General Fund support appropriation pursuant to Sections 89772
and 89773.

(4) The state hereby covenants with the holders of the
university’s obligations, secured by the pledge of the university
authorized by this section, that so long as any of the obligations
referred to in this subdivision remain outstanding, the state will
not impair or restrict the ability of the university to pledge any
support appropriation or support appropriations that may be enacted
for the university. The university may include this covenant of the
state in the agreements or other documents underlying the
university’s obligations to this effect.

(b) For purposes of this section, “capital expenditures” means
any of the following:

(1) The costs to acquire real property to design, construct, or
equip academic facilities to address seismic and life safety needs,
enrollment growth, or modernization of out-of-date facilities, and
renewal or expansion of infrastructure to serve academic programs.

(2) The debt service amount associated with refunding,
defeasing, or retiring State Public Works Board lease revenue
bonds.

(3) The costs to design, construct, or equip energy conservation
projects.

(4) The costs of deferred maintenance of academic facilities
and related infrastructure.

(c) This section does not require the Legislature to make an
appropriation from the General Fund in any specific amount to
support the California State University.

(d) The ability to utilize its support appropriation as stated in
this section shall not be used as a justification for future increases
in student tuition, additional employee layoffs, or reductions in
employee compensation at the California State University.

begin delete SEC. 137. end delete
begin insert SEC. 138. end insert   

Section 92611.7 of the Education Code is amended
to read:

92611.7.  

(a) The regents are urged to offer, on at least a
semiannual basis, to each of the university’s filers, an orientation
course on the relevant ethics statutes and regulations that govern
the official conduct of university officials.

(b) As used in this section, “filer” means each member, officer,
or designated employee of the University of California, including
a regent, who, because of his or her affiliation with the university
or any subdivision or campus thereof, is required to file a statement
of economic interests in accordance with Chapter 7 (commencing
with Section 87100) of Title 9 of the Government Code.

(c) The regents shall maintain records indicating the specific
attendees, each attendee’s job title, and dates of their attendance
for each orientation course offered pursuant to this section. These
records shall be maintained for a period of at least five years after
each course is offered. These records shall be public records subject
to inspection and copying in accordance with Section 81008 of
the Government Code and any other public records disclosure laws
that are applicable to the university.

(d) Except as provided in subdivision (e), each filer shall attend
the orientation course established pursuant to subdivision (a) in
accordance with both of the following:

(1) For a person who, as of January 1, 2005, is a filer, as defined
in subdivision (b), not later than December 31, 2005, and thereafter,
at least once during each consecutive period of two calendar years
commencing on January 1, 2007.

(2) For a person who becomes a filer, as defined in subdivision
(b), after January 1, 2005, within six months after he or she
becomes a filer, and at least once during each consecutive period
of two calendar years commencing on January 1 of the first
odd-numbered year thereafter.

(e) The requirements of subdivision (d) do not apply to a filer,
as defined in subdivision (b), who has taken an ethics orientation
course through another state agency or the Legislature within the
periods set forth in paragraphs (1) and (2) of subdivision (d) if, in
the determination of the regents, that course covered substantially
the same material as the course the university would offer to the
filer pursuant to this section.

begin delete SEC. 138. end delete
begin insert SEC. 139. end insert   

Section 92675 of the Education Code is amended
to read:

92675.  

(a) For purposes of this section, the following terms
are defined as follows:

(1) The “four-year graduation rate” means the percentage of a
cohort of undergraduate students who entered the university as
freshmen at any campus and graduated from any campus within
four years.

(2) The “two-year transfer graduation rate” means the percentage
of a cohort of undergraduate students who entered the university
at any campus as junior-level transfer students from the California
Community Colleges and graduated from any campus within two
years.

(3) “Low-income student” means an undergraduate student who
has an expected family contribution, as defined in subdivision (g)
of Section 69432.7, at any time during the student’s matriculation
at the institution that would qualify the student to receive a federal
Pell Grant. The calculation of a student’s expected family
contribution shall be based on the Free Application for Federal
Student Aid (FAFSA) application or an application determined by
the Student Aid Commission to be equivalent to the FAFSA
application submitted by that applicant.

(b) Commencing with the 2013-14 academic year, the
University of California shall report, by March 15 of each year,
on the following performance measures for the preceding academic
year, to inform budget and policy decisions and promote the
effective and efficient use of available resources:

(1) The number of transfer students enrolled from the California
Community Colleges, and the percentage of California Community
College transfer students as a proportion of the total number of
undergraduate students enrolled.

(2) The number of new transfer students enrolled from the
California Community Colleges, and the percentage of new
California Community College transfer students as a proportion
of the total number of new undergraduate students enrolled.

(3) The number of low-income students enrolled and the
percentage of low-income students as a proportion of the total
number of undergraduate students enrolled.

(4) The number of new low-income students enrolled and the
percentage of new low-income students as a proportion of the total
number of new undergraduate students enrolled.

(5) The four-year graduation rate for students who entered the
university four years prior and, separately, for low-income students
in that cohort.

(6) The two-year transfer graduation rate for students who
entered the university two years prior and, separately, for
low-income students in that cohort.

(7) The number of degree completions, in total and for the
following categories:

(A) Freshman entrants.

(B) California Community College transfer students.

(C) Graduate students.

(D) Low-income students.

(8) The percentage of freshman entrants who have earned
sufficient course credits by the end of their first year of enrollment
to indicate they will graduate within four years.

(9) The percentage of California Community College transfer
students who have earned sufficient course credits by the end of
their first year of enrollment to indicate they will graduate within
two years.

(10) For all students, the total amount of funds received from
all sources identified in subdivision (c) of Section 92670 for the
year, divided by the number of degrees awarded that same year.

(11) For undergraduate students, the total amount of funds
received from the sources identified in subdivision (c) of Section
92670 for the year expended for undergraduate education, divided
by the number of undergraduate degrees awarded that same year.

(12) The average number of University of California course
credits and total course credits, including credit accrued at other
institutions, accumulated by all undergraduate students who
graduated, and separately for freshman entrants and California
Community College transfer students.

(13) (A) The number of degree completions in science,
technology, engineering, and mathematics (STEM) fields, in total,
and separately for undergraduate students, graduate students, and
low-income students.

(B) For purposes of subparagraph (A), “STEM fields” include,
but are not necessarily limited to, all of the following: computer
and information sciences, engineering and engineering
technologies, biological and biomedical sciences, mathematics
and statistics, physical sciences, and science technologies.

(c) It is the intent of the Legislature that the appropriate policy
and fiscal committees of the Legislature review these performance
measures in a collaborative process with the Department of
Finance, the Legislative Analyst’s Office, individuals with
expertise in statewide accountability efforts, the University of
California, the California State University, and, for purposes of
data integrity and consistency, the California Community Colleges,
and consider any recommendations for their modification and
refinement. It is further the intent of the Legislature that any
modification or refinement of these measures be guided by the
legislative intent expressed in Section 66010.93.

begin delete SEC. 139. end delete
begin insert SEC. 140. end insert   

Section 94143 of the Education Code is amended
to read:

94143.  

The authority is authorized from time to time to issue
its notes for any corporate purpose and renew from time to time
any notes by the issuance of new notes, whether the notes to be
renewed have or have not matured. The authority may issue notes
partly to renew notes or to discharge other obligations then
outstanding and partly for any other purpose. The notes may be
authorized, sold, executed, and delivered in the same manner as
bonds. A resolution or resolutions authorizing notes of the authority
or any issue of notes of the authority may contain any provisions
that the authority is authorized to include in a resolution or
resolutions authorizing bonds of the authority or any issue of bonds
of the authority, and the authority may include in the notes any
terms, covenants, or conditions that it is authorized to include in
bonds. Notes issued by the authority shall be payable from revenues
of the authority or other moneys available for payment of notes
and not otherwise pledged, subject only to any contractual rights
of the holders of its notes or other obligations then outstanding.

begin delete SEC. 140. end delete
begin insert SEC. 141. end insert   

Section 94145.5 of the Education Code is amended
to read:

94145.5.  

A provision that the authority may include in a trust
agreement or resolution providing for the issuance of bonds
pursuant to this chapter may also be included in a bond and shall
have the same effect.

begin delete SEC. 141. end delete
begin insert SEC. 142. end insert   

Section 94880 of the Education Code is amended
to read:

94880.  

(a) There is within the bureau a 14-member advisory
committee. On or before July 1, 2015, the members of the
committee shall be appointed as follows:

(1) Three members, who shall have a demonstrated record of
advocacy on behalf of consumers, of which the director, the Senate
Committee on Rules, and the Speaker of the Assembly shall each
appoint one member.

(2) Two members, who shall be current or past students of
institutions, appointed by the director.

(3) Three members, who shall be representatives of institutions,
appointed by the director.

(4) Two members, who shall be employers who hire students,
appointed by the director.

(5) One public member appointed by the Senate Committee on
Rules.

(6) One public member appointed by the Speaker of the
Assembly.

(7) Two nonvoting, ex officio members as follows:

(A) The chair of the policy committee of the Assembly with
jurisdiction over legislation relating to the bureau or designee
appointed by the Speaker of the Assembly.

(B) The chair of the policy committee of the Senate with
jurisdiction over legislation relating to the bureau or designee
appointed by the Senate Committee on Rules.

(b) (1) A public member shall not, either at the time of his or
her appointment or during his or her tenure in office, have any
financial interest in any organization currently or previously subject
to regulation by the bureau, be a close family member of an
employee, officer, or the director of any institution subject to
regulation by the bureau, or currently have, or previously have
had, a business relationship, in the five years preceding his or her
appointment, with any institution subject to regulation by the
bureau.

(2) A public member shall not, within the five years immediately
preceding his or her appointment, have engaged in pursuits on
behalf of an institution or institutional accreditor or have provided
representation to the postsecondary educational industry or a
profession regulated by the bureau, if he or she is employed in the
industry or a member of the profession, respectively, and he or
she shall not engage in those pursuits or provide that representation
during his or her term of office.

(c) The advisory committee shall examine the oversight
functions and operational policies of the bureau and advise the
bureau with respect to matters relating to private postsecondary
education and the administration of this chapter, including annually
reviewing the fee schedule and the equity of the schedule relative
to the way institutions are structured, and the licensing and
enforcement provisions of this chapter. The advisory committee
shall make recommendations with respect to policies, practices,
and regulations relating to private postsecondary education, and
shall provide any assistance as may be requested by the bureau.

(d) The bureau shall actively seek input from, and consult with,
the advisory committee regarding the development of regulations
to implement this chapter prior to the adoption, amendment, or
repeal of its regulations, and provide the advisory committee with
sufficient time to review and comment on those regulations. The
bureau shall take into consideration and respond to all feedback
provided by members of the advisory committee.

(e) The bureau chief shall attend all advisory committee
meetings and shall designate staff to provide ongoing
administrative support to the advisory committee.

(f) Until January 1, 2017, the director shall personally attend,
and testify and answer questions at, each meeting of the advisory
committee.

(g) The advisory committee shall have the same access to
records within the Department of Consumer Affairs related to the
operation and administration of this chapter as do members of
constituent boards of the department in regard to records related
to their functions.

(h) Advisory committee meetings shall be subject to the
Bagley-Keene Open Meeting Act (Article 9 (commencing with
Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of
the Government Code). Advisory committee meeting materials
shall be posted on the Internet.

(i) The advisory committee shall meet at least quarterly and
shall appoint a member of the committee to represent the committee
for purposes of communicating with the Legislature.

(j) The Department of Consumer Affairs shall review, and revise
if necessary, the department’s conflicts of interest regulations to
ensure that each advisory committee member is required to disclose
conflicts of interest to the public.

begin delete SEC. 142. end delete
begin insert SEC. 143. end insert   

Section 2150 of the Elections Code, as amended by
Section 3 of Chapter 619 of the Statutes of 2014, is amended to
read:

2150.  

(a) The affidavit of registration shall show:

(1) The facts necessary to establish the affiant as an elector.

(2) The affiant’s name at length, including his or her given
name, and a middle name or initial, or if the initial of the given
name is customarily used, then the initial and middle name. The
affiant’s given name may be preceded, at affiant’s option, by the
designation of Miss, Ms., Mrs., or Mr. A person shall not be denied
the right to register because of his or her failure to mark a prefix
to the given name and shall be so advised on the voter registration
card. This subdivision shall not be construed as requiring the
printing of prefixes on an affidavit of registration.

(3) The affiant’s place of residence, residence telephone number,
if furnished, and email address, if furnished. A person shall not be
denied the right to register because of his or her failure to furnish
a telephone number or email address, and shall be so advised on
the voter registration card.

(4) The affiant’s mailing address, if different from the place of
residence.

(5) The affiant’s date of birth to establish that he or she will be
at least 18 years of age on or before the date of the next election.
In the case of an affidavit of registration submitted pursuant to
subdivision (d) of Section 2102, the affiant’s date of birth to
establish that he or she is at least 16 years of age.

(6) The state or country of the affiant’s birth.

(7) (A) In the case of an applicant who has been issued a current
and valid driver’s license, the applicant’s driver’s license number.

(B) In the case of any other applicant, other than an applicant
to whom subparagraph (C) applies, the last four digits of the
applicant’s social security number.

(C) If an applicant for voter registration has not been issued a
current and valid driver’s license or a social security number, the
state shall assign the applicant a number that will serve to identify
the applicant for voter registration purposes. To the extent that the
state has a computerized list in effect under this subdivision and
the list assigns unique identifying numbers to registrants, the
number assigned under this subparagraph shall be the unique
identifying number assigned under the list.

(8) The affiant’s political party preference.

(9) That the affiant is currently not imprisoned or on parole for
the conviction of a felony.

(10) A prior registration portion indicating whether the affiant
has been registered at another address, under another name, or as
preferring another party. If the affiant has been so registered, he
or she shall give an additional statement giving that address, name,
or party.

(b) The affiant shall certify the content of the affidavit as to its
truth and correctness, under penalty of perjury, with the signature
of his or her name and the date of signing. If the affiant is unable
to write he or she shall sign with a mark or cross.

(c) The affidavit of registration shall also contain a space that
would enable the affiant to state his or her ethnicity or race, or
both. An affiant shall not be denied the ability to register because
he or she declines to state his or her ethnicity or race.

(d) If a person, including a deputy registrar, assists the affiant
in completing the affidavit, that person shall sign and date the
affidavit below the signature of the affiant.

(e) The affidavit of registration shall also contain a space to
permit the affiant to apply for permanent vote by mail status.

(f) The Secretary of State may continue to supply existing
affidavits of registration to county elections officials before printing
new or revised forms that reflect the changes made to this section
by the act that added this subdivision.

begin delete SEC. 143. end delete
begin insert SEC. 144. end insert   

Section 2157 of the Elections Code is amended to
read:

2157.  

(a) Subject to this chapter, the paper affidavit of
registration shall be in a form prescribed by regulations adopted
by the Secretary of State. The affidavit shall comply with all of
the following:

(1) Contain the information prescribed in Section 2150.

(2) Be sufficiently uniform among the separate counties to allow
for the processing and use by one county of an affidavit completed
in another county.

(3) Allow for the inclusion of informational language to meet
the specific needs of that county, including, but not limited to, the
return address of the elections official in that county, and a
telephone number at which a voter can obtain elections information
in that county.

(4) Be included on one portion of a multipart card, to be known
as a voter registration card, the other portions of which shall include
information sufficient to facilitate completion and mailing of the
affidavit. The affidavit portion of the multipart card shall be
numbered according to regulations adopted by the Secretary of
State. For purposes of facilitating the distribution of voter
registration cards as provided in Section 2158, there shall be
attached to the affidavit portion a receipt. The receipt shall be
separated from the body of the affidavit by a perforated line.

(5) Contain, in a type size and color of ink that is clearly
distinguishable from surrounding text, a statement identical or
substantially similar to the following:

“Certain voters facing life-threatening situations may qualify
for confidential voter status. For more information, please contact
the Secretary of State’s Safe at Home program or visit the Secretary
of State’s Web site.”

(6) Contain, in a type size and color of ink that is clearly
distinguishable from surrounding text, a statement that the use of
voter registration information for commercial purposes is a
misdemeanor pursuant to subdivision (a) of Section 2194 and
Section 18109, and any suspected misuse shall be reported to the
Secretary of State.

(7) Contain a toll-free fraud hotline telephone number
maintained by the Secretary of State that the public may use to
report suspected fraudulent activity concerning misuse of voter
registration information.

(8) Be returnable to the county elections official as a
self-enclosed mailer with postage prepaid by the Secretary of State.

(b) This division does not prevent the use of voter registration
cards and affidavits of registration in existence on the effective
date of this section and produced pursuant to regulations of the
Secretary of State, and all references to voter registration cards
and affidavits in this division shall be applied to the existing voter
registration cards and affidavits of registration.

(c) The Secretary of State may continue to supply existing
affidavits of registration before printing new or revised forms that
reflect the changes required pursuant to this section, Section 2150,
or Section 2160.

(d)  An affidavit of registration shall not be submitted
electronically on a county’s Internet Web site. However, a county
may provide a hyperlink on the county’s Internet Web site to the
Secretary of State’s electronic voter registration system.

begin delete

SEC. 144.  

Section 8040 of the Elections Code is amended to
read:

8040.  

(a) The declaration of candidacy by a candidate shall
be substantially as follows:

 

DECLARATION OF CANDIDACY

I hereby declare myself a candidate for nomination to the office of ________ District Number ________ to be voted for at the primary election to be held ________, 20__, and declare the following to be true:  My name is    .  I want my name and occupational designation to appear on the ballot as follows: ______________________________________.

Addresses: Residence                  Business                  Mailing

Telephone numbers: Day _________ Evening _________

Web site: _______________________________________

I meet the statutory and constitutional qualifications for this office (including, but not limited to, citizenship, residency, and party preference, if required).

I am at present an incumbent of the following public office

(if any) __________.

If nominated, I will accept the nomination and not withdraw.

Signature of candidate

 

 

A candidate for voter-nominated office shall also complete all of the following:
(1) I hereby certify that:
(a) At the time of presentation of this declaration, as shown by my current affidavit of registration, I have disclosed the following political party preference, if any:    .
(b) My complete voter registration and party affiliation/preference history, from [10 years prior to current year] through the date of signing this document, is as follows:
Party Registration	County	Timeframe (by year)
(2) Pursuant to Section 8002.5 of the Elections Code, select one of the following:
______ Party Preference: _____________________ (insert the name of the qualified political party as disclosed upon your affidavit of registration).
______ Party Preference: None (if you have declined to disclose a preference for a qualified political party upon your affidavit of registration).
		Dated this ___ day of _____, 20___.
		Signature of candidate

 

 

State of California	)
County of	) ss.
	)

 

 

Subscribed and sworn to before me this ___ day of ________, 20____.

Notary Public (or other official)

Examined and certified by me this ________ day of ________, 20____.

County Elections Official

WARNING: Every person acting on behalf of a candidate is guilty of a misdemeanor who deliberately fails to file at the proper time and in the proper place any declaration of candidacy in his or her possession which is entitled to be filed under the provisions of the Elections Code Section 18202.

 

(b) At the discretion of the elections official, a candidate for a
judicial office, or a candidate for any office whose voter registration
information is confidential under Section 2166, 2166.5, or 2166.7,
may withhold his or her residence address from the declaration of
candidacy. If a candidate does not state his or her residence address
on the declaration of candidacy, the elections official shall verify
if the candidate’s address is within the appropriate political
subdivision and add the notation “verified” where appropriate on
the declaration.

end delete

SEC. 145.  

Section 3201 of the Family Code, as added by
Section 2 of Chapter 1004 of the Statutes of 1999, is amended and
renumbered to read:

3201.5.  

(a) The programs described in this chapter shall be
administered by the family law division of the superior court in
the county.

(b) For purposes of this chapter, “education about protecting
children during family disruption” includes education on parenting
skills and the impact of parental conflict on children, how to put
a parenting agreement into effect, and the responsibility of both
parents to comply with custody and visitation orders.

SEC. 146.  

Section 3690 of the Family Code, as added by
Section 6 of Chapter 653 of the Statutes of 1999, is repealed.

SEC. 147.  

The heading of Article 3 (commencing with Section
3780) of Chapter 7 of Part 1 of Division 9 of the Family Code is
repealed.

SEC. 148.  

Section 4051 of the Family Code is repealed.

SEC. 149.  

Section 6203 of the Family Code is amended to
read:

6203.  

(a) For purposes of this act, “abuse” means any of the
following:

(1) To intentionally or recklessly cause or attempt to cause
bodily injury.

(2) Sexual assault.

(3) To place a person in reasonable apprehension of imminent
serious bodily injury to that person or to another.

(4) To engage in any behavior that has been or could be enjoined
pursuant to Section 6320.

(b) Abuse is not limited to the actual infliction of physical injury
or assault.

SEC. 150.  

Section 6301 of the Family Code is amended to
read:

6301.  

(a) An order under this part may be granted to any person
described in Section 6211, including a minor pursuant to
subdivision (b) of Section 372 of the Code of Civil Procedure.

(b) The right to petition for relief shall not be denied because
the petitioner has vacated the household to avoid abuse, and in the
case of a marital relationship, notwithstanding that a petition for
dissolution of marriage, for nullity of marriage, or for legal
separation of the parties has not been filed.

(c) The length of time since the most recent act of abuse is not,
by itself, determinative. The court shall consider the totality of the
circumstances in determining whether to grant or deny a petition
for relief.

begin delete

SEC. 151.  

Section 7613.5 of the Family Code is amended to
read:

7613.5.  

(a) An intended parent may, but is not required to, use
the forms set forth in this section to demonstrate his or her intent
to be a legal parent of a child conceived through assisted
reproduction. These forms shall satisfy the writing requirement
specified in Section 7613, and are designed to provide clarity
regarding the intentions, at the time of conception, of intended
parents using assisted reproduction. These forms do not affect any
presumptions of parentage based on Section 7611, and do not
preclude a court from considering any other claims to parentage
under California statute or case law.

(b) These forms apply only in very limited circumstances. Please
read the forms carefully to see if you qualify for use of the forms.

(c) These forms do not apply to assisted reproduction agreements
for gestational carriers or surrogacy agreements.

(d) This section shall not be interpreted to require the use of
one of these forms to satisfy the writing requirement of Section
7613.

(e) The following are the optional California Statutory Forms
for Assisted Reproduction:

 

California Statutory Forms for Assisted Reproduction, Form 1:

Married Spouses or Registered Domestic Partners Using Assisted Reproduction to Conceive a Child

Use this form if: (1) You and the other person are married spouses or registered domestic partners (including registered domestic partners or civil union partners from another jurisdiction); (2) you and the other person are conceiving a child through assisted reproduction using sperm and/or egg donation; and (3) one of you will be giving birth.

WARNING: Signing this form does not terminate the parentage claim of a sperm donor. A sperm donor’s claim to parentage is terminated if the sperm is provided to a licensed physician or surgeon or to a licensed sperm bank prior to insemination as required by Section 7613(b) of the Family Code.

The laws about parentage of a child are complicated. You are strongly encouraged to consult with an attorney about your rights. Even if you do not fill out this form, a spouse or domestic partner of the parent giving birth is presumed to be a legal parent of any child born during the marriage or domestic partnership.

______ ______

This form demonstrates your intent to be parents of the child you plan to conceive through assisted reproduction using sperm and/or egg donation.

I, ____________________ (print name of spouse/partner), am married to, or in a registered domestic partnership (including a registered domestic partnership or civil union from another jurisdiction) with, a person who will give birth to a child we plan to conceive through assisted reproduction using sperm and/or egg donation. I consent to the use of assisted reproduction by my spouse/domestic partner to conceive a child. I INTEND to be a parent of the child conceived.

SIGNATURES

Intended parent who will give birth: ___________________ (print name)

________________________ (signature)  ____________(date)

Intended parent spouse or registered domestic partner: ____________ (print name)

_________________________ (signature)  ___________(date)

 

 

 

______ ______

NOTARY ACKNOWLEDGMENT

State of California

County of    )

On     before me, (insert name and title of the officer)

personally appeared    ,

who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature     (Seal)

 

 

 

______ ______

California Statutory Forms for Assisted Reproduction, Form 2:

Unmarried, Intended Parents Using Intended Parent’s Sperm to Conceive a Child

Use this form if: (1) Neither you or the other person are married or in a registered domestic partnership (including a registered domestic partnership or civil union from another state); (2) one of you will give birth to a child conceived through assisted reproduction using the intended parent’s sperm; and (3) you both intend to be parents of that child.

Do not use this form if you are conceiving using a surrogate.

WARNING: If you do not sign this form, you may be treated as a sperm donor if your sperm is provided to a licensed physician or surgeon or to a licensed sperm bank prior to insemination according to Section 7613(b) of the Family Code.

The laws about parentage of a child are complicated. You are strongly encouraged to consult with an attorney about your rights.

______ ______

This form demonstrates your intent to be parents of the child you plan to conceive through assisted reproduction using sperm donation.

I, ____________________ (print name of parent giving birth), plan to use assisted reproduction with another intended parent who is providing sperm to conceive the child. I am not married and am not in a registered domestic partnership (including a registered domestic partnership or civil union from another jurisdiction), and I INTEND for the person providing sperm to be a parent of the child to be conceived.

I, ____________________ (print name of parent providing sperm), plan to use assisted reproduction to conceive a child using my sperm with the parent giving birth. I am not married and am not in a registered domestic partnership (including a registered domestic partnership or civil union from another jurisdiction), and I INTEND to be a parent of the child to be conceived.

SIGNATURES

Intended parent giving birth: ___________________ (print name)

________________________ (signature)  ____________(date)

Intended parent providing sperm: ____________ (print name)

_________________________ (signature)  ___________(date)

 

 

 

______ ______

NOTARY ACKNOWLEDGMENT

State of California

County of    )

On     before me, (insert name and title of the officer)

personally appeared    ,

who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature     (Seal)

 

 

______ ______

California Statutory Forms for Assisted Reproduction, Form 3:

Intended Parents Conceiving a Child Using Eggs from One Parent and the Other Parent Will Give Birth

Use this form if: You are conceiving a child using the eggs from one of you and the other person will give birth to the child; (2) and you both intend to be parents to that child.

Do not use this form if you are conceiving using a surrogate.

WARNING: Signing this form does not terminate the parentage claim of a sperm donor. A sperm donor’s claim to parentage is terminated if the sperm is provided to a licensed physician or surgeon or to a licensed sperm bank prior to insemination as required by Section 7613(b) of the Family Code.

The laws about parentage of a child are complicated. You are strongly encouraged to consult with an attorney about your rights.

______ ______

This form demonstrates your intent to be parents of the child you plan to conceive through assisted reproduction using eggs from one parent and the other parent will give birth to the child.

I, ____________________ (print name of parent giving birth), plan to use assisted reproduction to conceive and give birth to a child with another person who will provide eggs to conceive the child. I INTEND for the person providing eggs to be a parent of the child to be conceived.

I, ____________________ (print name of parent providing eggs), plan to use assisted reproduction to conceive a child with another person who will give birth to the child conceived using my eggs. I INTEND to be a parent of the child to be conceived.

SIGNATURES

Intended parent giving birth: ___________________ (print name)

________________________ (signature)  ____________(date)

Intended parent providing eggs: ____________ (print name)

_________________________ (signature)  ___________(date)

 

 

______ ______

NOTARY ACKNOWLEDGMENT

State of California

County of    )

On     before me, (insert name and title of the officer)

personally appeared    ,

who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature     (Seal)

 

end delete

begin delete SEC. 152. end delete
begin insert SEC. 151. end insert   

Section 8712 of the Family Code is amended to
read:

8712.  

(a) The department, county adoption agency, or licensed
adoption agency shall require each person who files an application
for adoption to be fingerprinted and shall secure from an
appropriate law enforcement agency any criminal record of that
person to determine whether the person has ever been convicted
of a crime other than a minor traffic violation. The department,
county adoption agency, or licensed adoption agency may also
secure the person’s full criminal record, if any, with the exception
of any convictions for which relief has been granted pursuant to
Section 1203.49 of the Penal Code. Any federal-level criminal
offender record requests to the Department of Justice shall be
submitted with fingerprint images and related information required
by the Department of Justice for the purposes of obtaining
information as to the existence and content of a record of an
out-of-state or federal conviction or arrest of a person or
information regarding any out-of-state or federal crimes or arrests
for which the Department of Justice establishes that the person is
free on bail, or on his or her own recognizance pending trial or
appeal. The Department of Justice shall forward to the Federal
Bureau of Investigation any requests for federal summary criminal
history information received pursuant to this section. The
Department of Justice shall review the information returned from
the Federal Bureau of Investigation and shall compile and
disseminate a response to the department, county adoption agency,
or licensed adoption agency.

(b) Notwithstanding subdivision (c), the criminal record, if any,
shall be taken into consideration when evaluating the prospective
adoptive parent, and an assessment of the effects of any criminal
history on the ability of the prospective adoptive parent to provide
adequate and proper care and guidance to the child shall be
included in the report to the court.

(c) (1) The department, county adoption agency, or licensed
adoption agency shall not give final approval for an adoptive
placement in any home in which the prospective adoptive parent
or any adult living in the prospective adoptive home has either of
the following:

(A) A felony conviction for child abuse or neglect, spousal
abuse, crimes against a child, including child pornography, or for
a crime involving violence, including rape, sexual assault, or
homicide, but not including other physical assault and battery. For
purposes of this subdivision, crimes involving violence means
those violent crimes contained in clause (i) of subparagraph (A),
and subparagraph (B), of paragraph (1) of subdivision (g) of
Section 1522 of the Health and Safety Code.

(B) A felony conviction that occurred within the last five years
for physical assault, battery, or a drug- or alcohol-related offense.

(2) This subdivision shall become operative on October 1, 2008,
and shall remain operative only to the extent that compliance with
its provisions is required by federal law as a condition of receiving
funding under Title IV-E of the federal Social Security Act (42
U.S.C. Sec. 670 et seq.).

(d) Any fee charged by a law enforcement agency for
fingerprinting or for checking or obtaining the criminal record of
the applicant shall be paid by the applicant. The department, county
adoption agency, or licensed adoption agency may defer, waive,
or reduce the fee when its payment would cause economic hardship
to prospective adoptive parents detrimental to the welfare of the
adopted child, when the child has been in the foster care of the
prospective adoptive parents for at least one year, or if necessary
for the placement of a special-needs child.

begin delete SEC. 153. end delete
begin insert SEC. 152. end insert   

Section 8811 of the Family Code is amended to
read:

8811.  

(a) The department or delegated county adoption agency
shall require each person who files an adoption petition to be
fingerprinted and shall secure from an appropriate law enforcement
agency any criminal record of that person to determine whether
the person has ever been convicted of a crime other than a minor
traffic violation. The department or delegated county adoption
agency may also secure the person’s full criminal record, if any,
with the exception of any convictions for which relief has been
granted pursuant to Section 1203.49 of the Penal Code. Any
federal-level criminal offender record requests to the Department
of Justice shall be submitted with fingerprint images and related
information required by the Department of Justice for the purposes
of obtaining information as to the existence and content of a record
of an out-of-state or federal conviction or arrest of a person or
information regarding any out-of-state or federal crimes or arrests
for which the Department of Justice establishes that the person is
free on bail, or on his or her own recognizance pending trial or
appeal. The Department of Justice shall forward to the Federal
Bureau of Investigation any requests for federal summary criminal
history information received pursuant to this section. The
Department of Justice shall review the information returned from
the Federal Bureau of Investigation and shall compile and
disseminate a response to the department or delegated county
adoption agency.

(b) Notwithstanding subdivision (c), the criminal record, if any,
shall be taken into consideration when evaluating the prospective
adoptive parent, and an assessment of the effects of any criminal
history on the ability of the prospective adoptive parent to provide
adequate and proper care and guidance to the child shall be
included in the report to the court.

(c) (1) The department or a delegated county adoption agency
shall not give final approval for an adoptive placement in any home
in which the prospective adoptive parent or any adult living in the
prospective adoptive home has either of the following:

(A) A felony conviction for child abuse or neglect, spousal
abuse, crimes against a child, including child pornography, or for
a crime involving violence, including rape, sexual assault, or
homicide, but not including other physical assault and battery. For
purposes of this subdivision, crimes involving violence means
those violent crimes contained in clause (i) of subparagraph (A),
and subparagraph (B), of paragraph (1) of subdivision (g) of
Section 1522 of the Health and Safety Code.

(B) A felony conviction that occurred within the last five years
for physical assault, battery, or a drug- or alcohol-related offense.

(2) This subdivision shall become operative on October 1, 2008,
and shall remain operative only to the extent that compliance with
its provisions is required by federal law as a condition of receiving
funding under Title IV-E of the federal Social Security Act (42
U.S.C. 670 et seq.).

(d) Any fee charged by a law enforcement agency for
fingerprinting or for checking or obtaining the criminal record of
the petitioner shall be paid by the petitioner. The department or
delegated county adoption agency may defer, waive, or reduce the
fee when its payment would cause economic hardship to the
prospective adoptive parents detrimental to the welfare of the
adopted child, when the child has been in the foster care of the
prospective adoptive parents for at least one year, or if necessary
for the placement of a special-needs child.

begin delete SEC. 154. end delete
begin insert SEC. 153. end insert   

Section 8908 of the Family Code is amended to
read:

8908.  

(a) A licensed adoption agency shall require each person
filing an application for adoption to be fingerprinted and shall
secure from an appropriate law enforcement agency any criminal
record of that person to determine whether the person has ever
been convicted of a crime other than a minor traffic violation. The
licensed adoption agency may also secure the person’s full criminal
record, if any, with the exception of any convictions for which
relief has been granted pursuant to Section 1203.49 of the Penal
Code. Any federal-level criminal offender record requests to the
Department of Justice shall be submitted with fingerprint images
and related information required by the Department of Justice for
the purposes of obtaining information as to the existence and
content of a record of an out-of-state or federal conviction or arrest
of a person or information regarding any out-of-state or federal
crimes or arrests for which the Department of Justice establishes
that the person is free on bail, or on his or her own recognizance
pending trial or appeal. The Department of Justice shall forward
to the Federal Bureau of Investigation any requests for federal
summary criminal history information received pursuant to this
section. The Department of Justice shall review the information
returned from the Federal Bureau of Investigation and shall compile
and disseminate a fitness determination to the licensed adoption
agency.

(b) Notwithstanding subdivision (c), the criminal record, if any,
shall be taken into consideration when evaluating the prospective
adoptive parent, and an assessment of the effects of any criminal
history on the ability of the prospective adoptive parent to provide
adequate and proper care and guidance to the child shall be
included in the report to the court.

(c) (1) A licensed adoption agency shall not give final approval
for an adoptive placement in any home in which the prospective
adoptive parent, or any adult living in the prospective adoptive
home, has a felony conviction for either of the following:

(A) Any felony conviction for child abuse or neglect, spousal
abuse, crimes against a child, including child pornography, or for
a crime involving violence, including rape, sexual assault, or
homicide, but not including other physical assault and battery. For
purposes of this subdivision, crimes involving violence means
those violent crimes contained in clause (i) of subparagraph (A),
and subparagraph (B), of paragraph (1) of subdivision (g) of
Section 1522 of the Health and Safety Code.

(B) A felony conviction that occurred within the last five years
for physical assault, battery, or a drug- or alcohol-related offense.

(2) This subdivision shall become operative on October 1, 2008,
and shall remain operative only to the extent that compliance with
its provisions is required by federal law as a condition of receiving
funding under Title IV-E of the federal Social Security Act (42
U.S.C. 670 et seq.).

(d) Any fee charged by a law enforcement agency for
fingerprinting or for checking or obtaining the criminal record of
the applicant shall be paid by the applicant. The licensed adoption
agency may defer, waive, or reduce the fee when its payment would
cause economic hardship to the prospective adoptive parents
detrimental to the welfare of the adopted child.

begin delete SEC. 155. end delete
begin insert SEC. 154. end insert   

Section 12201 of the Financial Code is amended to
read:

12201.  

(a) An application for a license shall be in writing,
under oath, and in a form prescribed by the commissioner and shall
contain the name, and the address both of the residence and place
of business, of the applicant and if the applicant is a partnership
or association, of every member thereof, and if a corporation, of
every officer and director thereof.

(b) Notwithstanding any other law, the commissioner may by
rule or order prescribe circumstances under which to accept
electronic records or electronic signatures. This section does not
require the commissioner to accept electronic records or electronic
signatures.

(c) For purposes of this section, the following terms have the
following meanings:

(1) “Electronic record” means an initial license application, or
material modification of that license application, and any other
record created, generated, sent, communicated, received, or stored
by electronic means. “Electronic record” also includes, but is not
limited to, all of the following:

(A) An application, amendment, supplement, and exhibit, filed
for any license, consent, or other authority.

(B) A financial statement, report, or advertising.

(C) An order, license, consent, or other authority.

(D) A notice of public hearing, accusation, and statement of
issues in connection with any application, license, consent, or other
authority.

(E) A proposed decision of a hearing officer and a decision of
the commissioner.

(F) The transcripts of a hearing.

(G) A release, newsletter, interpretive opinion, determination,
or specific ruling.

(H) Correspondence between a party and the commissioner
directly relating to any document listed in subparagraphs (A) to
(G), inclusive.

(2) “Electronic signature” means an electronic sound, symbol,
or process attached to or logically associated with an electronic
record and executed or adopted by a person with the intent to sign
the electronic record.

(d) The Legislature finds and declares that the Department of
Business Oversight has continuously implemented methods to
accept records filed electronically, and is encouraged to continue
to expand its use of electronic filings to the extent feasible, as
budget, resources, and equipment are made available to accomplish
that goal.

begin delete SEC. 156. end delete
begin insert SEC. 155. end insert   

Section 17201 of the Financial Code is amended to
read:

17201.  

(a) An application for a license as an escrow agent
shall be in writing and in such form as is prescribed by the
commissioner. The application shall be verified by the oath of the
applicant.

(b) Notwithstanding any other law, the commissioner may by
rule or order prescribe circumstances under which to accept
electronic records or electronic signatures. This section does not
require the commissioner to accept electronic records or electronic
signatures.

(c) For purposes of this section, the following terms have the
following meanings:

(1) “Electronic record” means an initial license application, or
material modification of that license application, and any other
record created, generated, sent, communicated, received, or stored
by electronic means. “Electronic records” also includes, but is not
limited to, all of the following:

(A) An application, amendment, supplement, and exhibit, filed
for any order, license, consent, or other authority.

(B) A financial statement, report, or advertising.

(C) An order, license, consent, or other authority.

(D) A notice of public hearing, accusation, and statement of
issues in connection with any application, registration, order,
license, consent, or other authority.

(E) A proposed decision of a hearing officer and a decision of
the commissioner.

(F) The transcripts of a hearing and correspondence between a
party and the commissioner directly relating to the record.

(G) A release, newsletter, interpretive opinion, determination,
or specific ruling.

(H) Correspondence between a party and the commissioner
directly relating to any document listed in subparagraphs (A) to
(G), inclusive.

(2) “Electronic signature” means an electronic sound, symbol,
or process attached to or logically associated with an electronic
record and executed or adopted by a person with the intent to sign
the electronic record.

(d) The Legislature finds and declares that the Department of
Business Oversight has continuously implemented methods to
accept records filed electronically, and is encouraged to continue
to expand its use of electronic filings to the extent feasible, as
budget, resources, and equipment are made available to accomplish
that goal.

begin delete SEC. 157. end delete
begin insert SEC. 156. end insert   

Section 22066 of the Financial Code is amended to
read:

22066.  

(a) The Legislature finds and declares that nonprofit
organizations have an important role to play in helping individuals
obtain access to affordable, credit-building small dollar loans.
California law should refrain from creating statutory barriers that
risk slowing the growth of these loans. This section shall be
liberally construed to encourage nonprofit organizations to help
facilitate the making of zero-interest, low-cost loans, through
lending circles and other programs and services that allow
individuals to establish and build credit histories or to improve
their credit scores.

(b) For the purposes of this section, an organization described
in subdivision (c) shall be known as an exempt organization, and
an organization described in subdivision (d) shall be known as a
partnering organization.

(c) There shall be exempted from this division a nonprofit
organization that facilitates one or more zero-interest, low-cost
loans, provided all of the following conditions are met:

(1) The organization is exempt from federal income taxes under
Section 501(c)(3) of the Internal Revenue Code and is organized
and operated exclusively for one or more of the purposes described
in Section 501(c)(3) of the Internal Revenue Code.

(2) No part of the net earnings of the organization inures to the
benefit of a private shareholder or individual.

(3) A broker’s fee is not paid in connection with the making of
the loan that is facilitated by the organization.

(4) An organization wishing to operate pursuant to an exemption
granted under this section shall file an application for exemption
with the commissioner, in a manner prescribed by the
commissioner, and shall pay a fee to the commissioner, in an
amount calculated by the commissioner to cover his or her costs
to administer this section and Section 22067. The commissioner
may refuse to grant an exemption, or to suspend or revoke a
previously issued exemption if he or she finds that one or more of
the provisions of this section were not met or are not being met
by the organization and that denial, suspension, or revocation of
the exemption is in the best interests of the public.

(5) Every organization whose exemption is approved by the
commissioner shall file an annual report with the commissioner
on or before March 15 of each year, containing relevant information
that the commissioner reasonably requires concerning lending
facilitated by the organization within the state during the preceding
calendar year at all locations at which the organization facilitates
lending. The commissioner shall compile the information submitted
pursuant to this paragraph for use in preparing the report required
by Section 22067.

(6) Any loan made pursuant to this section shall comply with
the following requirements:

(A) The loan shall be unsecured.

(B) Interest shall not be imposed.

(C) An administrative fee may be charged in an amount not to
exceed the following:

(i) Seven percent of the principal amount, exclusive of the
administrative fee, or ninety dollars ($90), whichever is less, on
the first loan made to a borrower.

(ii) Six percent of the principal amount, exclusive of the
administrative fee, or seventy-five dollars ($75), whichever is less,
on the second and subsequent loans made to that borrower.

(D) An organization shall not charge the same borrower an
administrative fee more than once in any four-month period. Each
administrative fee shall be fully earned immediately upon
consummation of a loan agreement.

(E) Notwithstanding subdivision (a) of Section 22320.5 and in
lieu of any other type of delinquency fee or late fee, an organization
may require reimbursement from a borrower of up to ten dollars
($10) to cover an insufficient funds fee incurred by that
organization due to actions of the borrower. An organization shall
not charge more than two insufficient funds fees to the same
borrower in a single month.

(F) The following information shall be disclosed to the consumer
in writing, in a typeface no smaller than 12-point type, at the time
of the loan application:

(i) The amount to be borrowed, the total dollar cost of the loan
to the consumer if the loan is paid back on time, including the sum
of the administrative fee and principal amount borrowed, the
corresponding annual percentage rate, calculated in accordance
with Federal Reserve Board Regulation Z (12 C.F.R. 226.1), the
periodic payment amount, the payment frequency, and the
insufficient funds fee, if applicable.

(ii) An explanation of whether, and under what circumstances,
a borrower may exit a loan agreement.

(G) The loan shall have a minimum principal amount upon
origination of two hundred fifty dollars ($250) and a maximum
principal amount upon origination of two thousand five hundred
dollars ($2,500), and a term of not less than the following:

(i) Ninety days for loans whose principal balance upon
origination is less than five hundred dollars ($500).

(ii) One hundred twenty days for loans whose principal balance
upon origination is at least five hundred dollars ($500), but is less
than one thousand five hundred dollars ($1,500).

(iii) One hundred eighty days for loans whose principal balance
upon origination is at least one thousand five hundred dollars
($1,500).

(H) The loan shall not be refinanced.

(I) The organization or any of its wholly owned subsidiaries
shall not sell or assign unpaid debt to an independent party for
collection before at least 90 days have passed since the start of the
delinquency.

(7) Prior to disbursement of loan proceeds, the organization
shall either (A) offer a credit education program or seminar to the
borrower that has been previously reviewed and approved by the
commissioner for use in complying with this section, or (B) invite
the borrower to a credit education program or seminar offered by
an independent third party that has been previously reviewed and
approved by the commissioner for use in complying with this
section. A credit education program or seminar offered pursuant
to this paragraph shall be provided at no cost to the borrower.

(8) The organization shall report each borrower’s payment
performance to at least one consumer reporting agency that
compiles and maintains files on consumers on a nationwide basis,
upon acceptance as a data furnisher by that consumer reporting
agency. For purposes of this section, a consumer reporting agency
that compiles and maintains files on consumers on a nationwide
basis is one that meets the definition in Section 603(p) of the
federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681a(p)). An
organization that is accepted as a data furnisher after being granted
an exemption by the commissioner pursuant to this subdivision
shall report all borrower payment performance since its inception
of lending under the program, as soon as practicable after its
acceptance into the program, but in no event more than six months
after its acceptance into the program.

(9) The organization shall underwrite each loan and shall ensure
that a loan is not made if, through its underwriting, the organization
determines that the borrower’s total monthly debt service payments,
at the time of loan origination, including the loan for which the
borrower is being considered, and across all outstanding forms of
credit that can be independently verified by the organization,
exceed 50 percent of the borrower’s gross monthly household
income except as specified in clause (iii) of subparagraph (D).

(A) The organization shall seek information and documentation
pertaining to all of a borrower’s outstanding debt obligations during
the loan application and underwriting process, including loans that
are self-reported by the borrower but not available through
independent verification. The organization shall verify that
information using a credit report from at least one consumer
reporting agency that compiles and maintains files on consumers
on a nationwide basis or through other available electronic debt
verification services that provide reliable evidence of a borrower’s
outstanding debt obligations.

(B) The organization shall also request from the borrower and
include all information obtained from the borrower regarding
outstanding deferred deposit transactions in the calculation of the
borrower’s outstanding debt obligations.

(C) The organization shall not be required to consider, for
purposes of debt-to-income ratio evaluation, loans from friends or
family.

(D) The organization shall also verify the borrower’s household
income that the organization relies on to determine the borrower’s
debt-to-income ratio using information from any of the following:

(i) Electronic means or services that provide reliable evidence
of the borrower’s actual income.

(ii) Internal Revenue Service Form W-2, tax returns, payroll
receipts, bank statements, or other third-party documents that
provide reasonably reliable evidence of the borrower’s actual
income.

(iii)  A signed statement from the borrower stating sources and
amounts of income, if the borrower’s actual income cannot be
independently verified using electronic means or services, Internal
Revenue Service forms, tax returns, payroll receipts, bank
statements, or other third-party documents. If income is verified
using a signed statement from a borrower, a loan shall not be made
if the borrower’s total monthly debt service payments, at the time
of loan origination, including the loan for which the borrower is
being considered, and across all outstanding forms of credit, exceed
25 percent of the borrower’s gross monthly household income.

(10) The organization shall notify each borrower, at least two
days prior to each payment due date, informing the borrower of
the amount due and the payment due date. Notification may be
provided by any means mutually acceptable to the borrower and
the organization. A borrower shall have the right to opt out of this
notification at any time, upon electronic or written request to the
organization. The organization shall notify each borrower of this
right prior to disbursing loan proceeds.

(11) Notwithstanding Sections 22311 to 22315, inclusive, no
organization, in connection with, or incidental to, the facilitating
of any loan made pursuant to this section, may offer, sell, or require
a borrower to contract for “credit insurance” as defined in
paragraph (1) of subdivision (a) of Section 22314 or insurance on
tangible personal or real property of the type specified in Section
22313.

(12) An organization shall not require, as a condition of making
a loan, that a borrower waive any right, penalty, remedy, forum,
or procedure provided for in any law applicable to the loan,
including the right to file and pursue a civil action or file a
complaint with or otherwise communicate with the commissioner
or any court or other public entity, or that the borrower agree to
resolve disputes in a jurisdiction outside of California or to the
application of laws other than those of California, as provided by
law. Any waiver by a borrower must be knowing, voluntary, and
in writing, and expressly not made a condition of doing business
with the organization. Any waiver that is required as a condition
of doing business with the organization shall be presumed
involuntary, unconscionable, against public policy, and
unenforceable. The organization has the burden of proving that a
waiver of any rights, penalties, forums, or procedures was knowing,
voluntary, and not made a condition of the contract with the
borrower.

(13) An organization shall not refuse to do business with or
discriminate against a borrower or applicant on the basis that the
borrower or applicant refuses to waive any right, penalty, remedy,
forum, or procedure, including the right to file and pursue a civil
action or complaint with, or otherwise notify, the commissioner
or any court or other public entity. The exercise of a person’s right
to refuse to waive any right, penalty, remedy, forum, or procedure,
including a rejection of a contract requiring a waiver, shall not
affect any otherwise legal terms of a contract or an agreement.

(14) This section does not apply to any agreement to waive any
right, penalty, remedy, forum, or procedure, including any
agreement to arbitrate a claim or dispute, after a claim or dispute
has arisen. This section does not affect the enforceability or validity
of any other provision of the contract.

(d) This division does not apply to a nonprofit organization that
partners with an organization granted an exemption pursuant to
subdivision (c) for the purpose of facilitating zero-interest, low-cost
loans, provided that the requirements of paragraphs (6) to (14),
inclusive, of subdivision (c), and the following additional
conditions are met:

(1) The partnership of each exempt organization and each
partnering organization shall be formalized through a written
agreement that specifies the obligations of each party. Each written
agreement shall contain a provision establishing that the partnering
organization agrees to comply with the provisions of this section
and any regulations that may be adopted by the commissioner
pursuant to this section. Each written agreement shall be provided
to the commissioner upon request.

(2) Each partnering organization shall meet the requirements
for federal income tax exemption under Section 501(c)(3) of the
Internal Revenue Code and shall be organized and operated
exclusively for one or more of the purposes described in Section
501(c)(3) of the Internal Revenue Code.

(3) No part of the net earnings of the partnering organization
shall inure to the benefit of a private shareholder or individual.

(4) Each exempt organization shall notify the commissioner
within 30 days of entering into a written agreement with a
partnering organization, on such form and in such manner as the
commissioner may prescribe. At a minimum, this notification shall
include the name of the partnering organization, the contact
information for a person responsible for the lending activities
facilitated by that partnering organization, and the address or
addresses at which the organization facilitates lending activities.

(5) Upon a determination that a partnering organization has
acted in violation of this section or any regulation adopted
thereunder, the commissioner may disqualify that partnering
organization from performing services under this section, bar that
organization from performing services at one or more specific
locations of that organization, terminate a written agreement
between a partnering organization and an exempt organization,
and, if the commissioner deems such action to be in the public
interest, prohibit the use of that partnering organization by all
organizations granted exemptions by the commissioner pursuant
to subdivision (c).

(6) The exempt organization shall include information regarding
the loans facilitated by the partnering organization in the annual
report required pursuant to paragraph (5) of subdivision (c).

(e) The commissioner may examine each exempt organization
and each partnering organization for compliance with the
provisions of this section, upon reasonable notice to the party
responsible for the lending activities facilitated by that
organization. An organization so examined shall make available
to the commissioner or his or her representative all books and
records requested by the commissioner related to the lending
activities facilitated by that organization. The cost of the
examination shall be paid by the exempt organization.

(f) This section does not apply to any loan of a bona fide
principal amount of two thousand five hundred dollars ($2,500)
or more as determined in accordance with Section 22251. For
purposes of this subdivision, “bona fide principal amount” shall
be determined in accordance with Section 22251.

begin delete SEC. 158. end delete
begin insert SEC. 157. end insert   

Section 22101 of the Financial Code is amended to
read:

22101.  

(a) An application for a license as a finance lender or
broker under this division shall be in the form and contain the
information that the commissioner may by rule or order require
and shall be filed upon payment of the fee specified in Section
22103.

(b) Notwithstanding any other law, an applicant who does not
currently hold a license as a finance lender or broker under this
division shall furnish, with his or her application, a full set of
fingerprints and related information for purposes of the
commissioner conducting a criminal history record check. The
commissioner shall obtain and receive criminal history information
from the Department of Justice and the Federal Bureau of
Investigation pursuant to Section 22101.5.

(c) This section shall not be construed to prevent a licensee from
engaging in the business of a finance lender through a subsidiary
corporation if the subsidiary corporation is licensed pursuant to
this division.

(d) For purposes of this section, “subsidiary corporation” means
a corporation that is wholly owned by a licensee.

(e) A new application shall not be required for a change in the
address of an existing location previously licensed under this
division. However, the licensee shall comply with the requirements
of Section 22153.

(f) Notwithstanding subdivisions (a) to (e), inclusive, the
commissioner may by rule require an application to be made
through the Nationwide Mortgage Licensing System and Registry,
and may require fees, fingerprints, financial statements, supporting
documents, changes of address, and any other information, and
amendments or modifications thereto, to be submitted in the same
manner.

(g) Notwithstanding any other law, the commissioner may by
rule or order prescribe circumstances under which to accept
electronic records or electronic signatures. This section does not
require the commissioner to accept electronic records or electronic
signatures.

(h) For purposes of this section, the following terms have the
following meanings:

(1) “Electronic record” means an initial license application, or
material modification of that license application, and any other
record created, generated, sent, communicated, received, or stored
by electronic means. “Electronic records” also includes, but is not
limited to, all of the following:

(A) An application, amendment, supplement, and exhibit, filed
for any license, consent, or other authority.

(B) A financial statement, report, or advertising.

(C) An order, license, consent, or other authority.

(D) A notice of public hearing, accusation, and statement of
issues in connection with any application, license, consent, or other
authority.

(E) A proposed decision of a hearing officer and a decision of
the commissioner.

(F) The transcripts of a hearing and correspondence between a
party and the commissioner directly relating to the record.

(G) A release, newsletter, interpretive opinion, determination,
or specific ruling.

(H) Correspondence between a party and the commissioner
directly relating to any document listed in subparagraphs (A) to
(G), inclusive.

(2) “Electronic signature” means an electronic sound, symbol,
or process attached to or logically associated with an electronic
record and executed or adopted by a person with the intent to sign
the electronic record.

(i) The Legislature finds and declares that the Department of
Business Oversight has continuously implemented methods to
accept records filed electronically, and is encouraged to continue
to expand its use of electronic filings to the extent feasible, as
budget, resources, and equipment are made available to accomplish
that goal.

begin delete SEC. 159. end delete
begin insert SEC. 158. end insert   

Section 23005 of the Financial Code is amended to
read:

23005.  

(a) A person shall not offer, originate, or make a
deferred deposit transaction, arrange a deferred deposit transaction
for a deferred deposit originator, act as an agent for a deferred
deposit originator, or assist a deferred deposit originator in the
origination of a deferred deposit transaction without first obtaining
a license from the commissioner and complying with the provisions
of this division. The requirements of this subdivision shall not
apply to persons or entities that are excluded from the definition
of “licensee” as set forth in Section 23001. This division shall not
be construed to require the commissioner to create separate classes
of licenses.

(b) An application for a license under this division shall be in
the form and contain the information that the commissioner may
by rule require and shall be filed upon payment of the fee specified
in Section 23006.

(c) A licensee with one or more licensed locations seeking an
additional location license may file a short form license application
as may be established by the commissioner pursuant to subdivision
(b) of this section.

(d) Notwithstanding any other law, the commissioner may by
rule or order prescribe circumstances under which to accept
electronic records or electronic signatures. This section does not
require the commissioner to accept electronic records or electronic
signatures.

(e) For purposes of this section, the following terms have the
following meanings:

(1) “Electronic record” means an initial license application, or
material modification of that license application, and any other
record created, generated, sent, communicated, received, or stored
by electronic means. “Electronic records” also includes, but is not
limited to, all of the following:

(A) An application, amendment, supplement, and exhibit, filed
for any license, consent, or other authority.

(B) A financial statement, report, or advertising.

(C) An order, license, consent, or other authority.

(D) A notice of public hearing, accusation, and statement of
issues in connection with any application, license, consent, or other
authority.

(E) A proposed decision of a hearing officer and a decision of
the commissioner.

(F) The transcripts of a hearing.

(G) A release, newsletter, interpretive opinion, determination,
or specific ruling.

(H) Correspondence between a party and the commissioner
directly relating to any document listed in subparagraphs (A) to
(G), inclusive.

(2) “Electronic signature” means an electronic sound, symbol,
or process attached to or logically associated with an electronic
record and executed or adopted by a person with the intent to sign
the electronic record.

(f) The Legislature finds and declares that the Department of
Business Oversight has continuously implemented methods to
accept records filed electronically, and is encouraged to continue
to expand its use of electronic filings to the extent feasible, as
budget, resources, and equipment are made available to accomplish
that goal.

begin delete SEC. 160. end delete
begin insert SEC. 159. end insert   

Section 23015 of the Financial Code, as added by
Section 25 of Chapter 101 of the Statutes of 2007, is amended and
renumbered to read:

23015.5.  

(a) It is unlawful for any person to knowingly alter,
destroy, mutilate, conceal, cover up, falsify, or make a false entry
in any record, document, or tangible object with the intent to
impede, obstruct, or influence the administration or enforcement
of any provision of this division.

(b) It is unlawful for any person to knowingly make an untrue
statement to the commissioner during the course of licensing,
investigation, or examination, with the intent to impede, obstruct,
or influence the administration or enforcement of any provision
of this division.

begin delete SEC. 161. end delete
begin insert SEC. 160. end insert   

Section 24058 of the Financial Code is repealed.

begin delete SEC. 162. end delete
begin insert SEC. 161. end insert   

Section 32208 of the Financial Code is amended to
read:

32208.  

“Energy Commission” means the State Energy
Resources Conservation and Development Commission.

begin delete SEC. 163. end delete
begin insert SEC. 162. end insert   

The heading of Article 1 (commencing with Section
32700) of Chapter 6 of Division 15.5 of the Financial Code is
repealed.

begin delete SEC. 164. end delete
begin insert SEC. 163. end insert   

The heading of Article 2 (commencing with Section
32710) of Chapter 6 of Division 15.5 of the Financial Code is
repealed.

begin delete SEC. 165. end delete
begin insert SEC. 164. end insert   

The heading of Chapter 8 (commencing with Section
50601) of Division 20 of the Financial Code is repealed.

begin delete SEC. 166. end delete
begin insert SEC. 165. end insert   

Section 1652 of the Fish and Game Code is amended
to read:

1652.  

(a) A project proponent may submit a written request
to approve a habitat restoration or enhancement project to the
director pursuant to this section if the project has not received
certification pursuant to the State Water Resources Control Board’s
Order for Clean Water Act Section 401 General Water Quality
Certification for Small Habitat Restoration Projects, or its current
equivalent at the time the project proponent submits the written
request. If the project has received certification pursuant to that
order, or its current equivalent, the project proponent may submit
a request for approval of the project pursuant to Section 1653.

(b) A written request to approve a habitat restoration or
enhancement project pursuant to this section shall contain all of
the following:

(1) The name, address, title, organization, telephone number,
and email address of the natural person or persons who will be the
main point of contact for the project proponent.

(2) A full description of the habitat restoration or enhancement
project that includes the designs and techniques to be used for the
project, restoration or enhancement methods, an estimate of
temporary restoration- or enhancement-related disturbance, project
schedule, anticipated activities, and how the project is expected
to result in a net benefit to any affected habitat and species,
consistent with paragraph (4) of subdivision (c).

(3) An assessment of the project area that provides a description
of the existing flora and fauna and the potential presence of
sensitive species or habitat. The assessment shall include preproject
photographs of the project area that include a descriptive title, date
taken, the photographic monitoring point, and photographic
orientation.

(4) A geographic description of the project site including maps,
land ownership information, and other relevant location
information.

(5) A description of the environmental protection measures
incorporated into the project design, so that no potentially
significant adverse effects on the environment, as defined in
Section 15382 of Title 14 of the California Code of Regulations,
are likely to occur with application of the specified environmental
protection measures. Environmental protection measures may
include, but are not limited to, appropriate seasonal work
limitations, measures to avoid and minimize impacts to water
quality and potentially present species protected by state and
federal law, and the use of qualified professionals for standard
preconstruction surveys where protected species are potentially
present.

(6) Substantial evidence to support a conclusion that the project
meets the requirements set forth in this section. Substantial
evidence shall include references to relevant design criteria and
environmental protection measures found in the documents
specified in paragraph (4) of subdivision (c).

(7) A certifying statement that the project will comply with the
California Environmental Quality Act (Division 13 (commencing
with Section 21000) of the Public Resources Code), which may
include, but not be limited to, the requirements of Section 15333
of Title 14 of the California Code of Regulations.

(c) Notwithstanding any other law, within 60 days after receiving
a written request to approve a habitat restoration or enhancement
project, the director shall approve a habitat restoration or
enhancement project if the director determines that the written
request includes all of the required information set forth in
subdivision (b), and the project meets all of the following
requirements:

(1) The project purpose is voluntary habitat restoration and the
project is not required as mitigation.

(2) The project is not part of a regulatory permit for a nonhabitat
restoration or enhancement construction activity, a regulatory
settlement, a regulatory enforcement action, or a court order.

(3) The project meets the eligibility requirements of the State
Water Resources Control Board’s Order for Clean Water Act
Section 401 General Water Quality Certification for Small Habitat
Restoration Projects, or its current equivalent at the time the project
proponent submits the written request, but has not received
certification pursuant to that order or its equivalent.

(4) The project is consistent with, or identified in, sources that
describe best available restoration and enhancement methodologies,
including one or more of the following:

(A) Federal- and state-listed species recovery plans or published
protection measures, or previously approved department
agreements and permits issued for voluntary habitat restoration or
enhancement projects.

(B) Department and National Marine Fisheries Service fish
screening criteria or fish passage guidelines.

(C) The department’s California Salmonid Stream Habitat
Restoration Manual.

(D) Guidance documents and practice manuals that describe
best available habitat restoration or enhancement methodologies
that are utilized or approved by the department.

(5) The project will not result in cumulative adverse
environmental impacts that are significant when viewed in
connection with the effects of past, current, or probable future
projects.

(d) If the director determines that the written request does not
contain all of the information required by subdivision (b), or fails
to meet the requirements set forth in subdivision (c), or both, the
director shall deny the written request and inform the project
proponent of the reason or reasons for the denial.

(e) The project proponent shall submit a notice of completion
to the department no later than 30 days after the project approved
pursuant to this section is completed. The notice of completion
shall demonstrate that the project has been carried out in
accordance with the project’s description. The notice of completion
shall include a map of the project location, including the final
boundaries of the restoration area or areas and postproject
photographs. Each photograph shall include a descriptive title,
date taken, photographic monitoring point, and photographic
orientation.

(f) The project proponent shall submit a monitoring report
describing whether the restoration project is meeting each of the
restoration goals stated in the project application. Each report shall
include photographs with a descriptive title, date taken,
photographic monitoring point, and photographic orientation. The
monitoring reports for Section 401 Water Quality Certification or
waste discharge requirements of the State Water Resources Control
Board or a regional water quality control board, or for department
or federal voluntary habitat restoration programs, including, but
not limited to, the Fisheries Restoration Grant Program, may be
submitted in lieu of this requirement.

begin delete SEC. 167. end delete
begin insert SEC. 166. end insert   

Section 1653 of the Fish and Game Code is amended
to read:

1653.  

(a) A project proponent may submit a written request
to approve a habitat restoration or enhancement project to the
director pursuant to this section if the project has received
certification pursuant to the State Water Resources Control Board’s
Order for Clean Water Act Section 401 General Water Quality
Certification for Small Habitat Restoration Projects, or its current
equivalent at the time the project proponent submits the written
request.

(b) A written request to approve a habitat restoration or
enhancement project pursuant to this section shall include all of
the following:

(1) Notice that the project proponent has received a notice of
applicability that indicates that the project is authorized pursuant
to the State Water Resources Control Board’s Order for Clean
Water Act Section 401 General Water Quality Certification for
Small Habitat Restoration Projects, or its equivalent at the time
the project proponent submits the written request.

(2) A copy of the notice of applicability.

(3) A copy of the notice of intent provided to the State Water
Resources Control Board or a regional water quality control board.

(4) A description of species protection measures incorporated
into the project design, but not already included in the notice of
intent, to avoid and minimize impacts to potentially present species
protected by state and federal law, such as appropriate seasonal
work limitations and the use of qualified professionals for standard
preconstruction surveys where protected species are potentially
present.

(5) The fees required pursuant to Section 1655.

(c) Upon receipt of the notice specified in paragraph (1) of
subdivision (b), the director shall immediately have published in
the General Public Interest section of the California Regulatory
Notice Register the receipt of that notice.

(d) Within 30 days after the director has received the notice of
applicability described in subdivision (b), the director shall
determine whether the written request accompanying the notice
of applicability is complete.

(e) If the director determines within that 30-day period, based
upon substantial evidence, that the written request is not complete,
then the project may be authorized under Section 1652.

(f) The director shall immediately publish the determination
pursuant to subdivision (d) in the General Public Interest section
of the California Regulatory Notice Register.

(g) The project proponent shall submit the monitoring plan,
monitoring report, and notice of completion to the department as
required by the State Water Resources Control Board’s Order for
Clean Water Act Section 401 General Water Quality Certification
for Small Habitat Restoration Projects, or its current equivalent at
the time the project proponent submits the written request. The
order or its current equivalent may include programmatic waivers
or waste discharge requirements for small scale restoration projects.

begin delete SEC. 168. end delete
begin insert SEC. 167. end insert   

Section 1654 of the Fish and Game Code is amended
to read:

1654.  

(a) The director’s approval of a habitat restoration or
enhancement project pursuant to Section 1652 or 1653 shall be in
lieu of any other permit, agreement, license, or other approval
issued by the department, including, but not limited to, those issued
pursuant to Chapter 6 (commencing with Section 1600) and
Chapter 10 (commencing with Section 1900) of this division and
Chapter 1.5 (commencing with Section 2050) of Division 3.

(b) This chapter shall not be construed as expanding the scope
of projects requiring a permit, agreement, license, or other approval
issued by the department.

(c) (1) If the director determines at any time that the project is
no longer consistent with subdivision (c) of Section 1652 or
subdivision (b) of Section 1653, as applicable, due to a material
change between the project as submitted and the project being
implemented or a change in the environmental circumstances in
the area of implementation, the director shall notify the project
proponent in writing and project implementation shall be
suspended. Written notice from the director shall be delivered in
person, by certified mail, or by electronic communication to the
project proponent and shall specify the reasons why approval of
the project was suspended. The approval for a project shall not be
revoked pursuant to this subdivision unless it has first been
suspended pursuant to this subdivision.

(2) Within 30 days of receipt of a notice of suspension, the
project proponent may file an objection with the director. Any
objection shall be in writing and state the reasons why the project
proponent objects to the suspension. The project proponent may
provide additional environmental protection measures, design
modifications, or other evidence that the project is consistent with
subdivision (c) of Section 1652 or subdivision (b) of Section 1653,
as applicable, and request that the notice of suspension be lifted
and approval granted.

(3) The director shall revoke approval or lift the suspension of
project approval within 30 days after receiving the project
proponent’s objection pursuant to paragraph (2).

(d) Pursuant to Section 818.4 of the Government Code, the
department and any other state agency exercising authority under
this section shall not be liable with regard to any determination or
authorization made pursuant to this section.

begin delete SEC. 169. end delete
begin insert SEC. 168. end insert   

Section 1745.2 of the Fish and Game Code is
amended to read:

1745.2.  

(a) The department shall do both of the following:

(1) Consider permitting apiculture on department-managed
wildlife areas, where deemed appropriate by the department.

(2) Determine, when developing or amending its land
management plans, the following:

(A) If the department-managed wildlife areas, or any portions
of those areas, are suitable for apiculture and whether apiculture
is consistent with the management goals and objectives for those
areas on a temporary, seasonal, or long-term basis.

(B) If the administration of apiculture on department-managed
wildlife areas, where deemed appropriate by the department, is
meeting the management goals and objectives for those areas.

(C) The appropriate use or permit fee to be assessed for
conducting apiculture on department-managed wildlife areas.

(b) The department, in implementing this section, may consult
with apiculture experts, including, but not limited to, the
Department of Food and Agriculture, the University of California,
other academic or professional experts, and interested stakeholders,
for permitting apiculture on department-managed wildlife areas
consistent with the respective management goals and objectives
for those areas.

(c) Moneys collected for conducting apiculture on
department-managed wildlife areas pursuant to subparagraph (C)
of paragraph (2) of subdivision (a) shall be deposited by the
department into the Wildlife Restoration Fund and, upon
appropriation by the Legislature, be used to support the
management, maintenance, restoration, and operation of
department-managed wildlife areas.

begin delete SEC. 170. end delete
begin insert SEC. 169. end insert   

Section 12002 of the Fish and Game Code is
amended to read:

12002.  

(a) Unless otherwise provided, the punishment for a
violation of this code that is a misdemeanor is a fine of not more
than one thousand dollars ($1,000), imprisonment in a county jail
for not more than six months, or by both that fine and
imprisonment.

(b) The punishment for a violation of any of the following
provisions is a fine of not more than two thousand dollars ($2,000),
imprisonment in a county jail for not more than one year, or both
the fine and imprisonment:

(1) Section 1059.

(2) Subdivision (c) of Section 4004.

(3) Section 4600.

(4) Paragraph (1) or (2) of subdivision (a) of Section 5650.

(5) A first violation of Section 8670.

(6) Section 10500.

(7) Unless a greater punishment is otherwise provided, a
violation subject to subdivision (a) of Section 12003.1.

(c) Except as specified in Sections 12001 and 12010, the
punishment for violation of Section 3503, 3503.5, 3513, or 3800
is a fine of not more than five thousand dollars ($5,000),
imprisonment in the county jail for not more than six months, or
by both that fine and imprisonment.

(d) (1) A license, tag, stamp, reservation, permit, or other
entitlement or privilege issued pursuant to this code to a defendant
who fails to appear at a court hearing for a violation of this code,
or who fails to pay a fine imposed pursuant to this code, shall be
immediately suspended or revoked. The license, tag, stamp,
reservation, permit, or other entitlement or privilege shall not be
reinstated or renewed, and no other license, tag, stamp, reservation,
permit, or other entitlement or privilege shall be issued to that
person pursuant to this code, until the court proceeding is
completed or the fine is paid.

(2) This subdivision does not apply to any violation of Section
1052, 1059, 1170, 5650, 5653.9, 6454, 6650, or 6653.5.

begin delete SEC. 171. end delete
begin insert SEC. 170. end insert   

The heading of Article 5 (commencing with Section
491) of Chapter 3 of Part 1 of Division 1 of the Food and
Agricultural Code, as added by Section 1 of Chapter 589 of the
Statutes of 2000, is amended and renumbered to read:

 

Article 4.5.  Food Biotechnology Task Force

 

begin delete SEC. 172. end delete
begin insert SEC. 171. end insert   

Section 6045 of the Food and Agricultural Code is
amended to read:

6045.  

(a) The Legislature finds and declares that the plant
killing bacterium, Xyella Fastidiosa, and the resulting pathogen,
Pierce’s disease, and its vectors present a clear and present danger
to California’s sixty-billion-dollar grape industry, as well as to
many other commodities and plant life.

(b) There exists an ongoing need for at least fifteen million
dollars ($15,000,000) annually in research and programs to combat
Pierce’s disease and its vectors in California.

begin delete SEC. 173. end delete
begin insert SEC. 172. end insert   

Section 6047.9 of the Food and Agricultural Code
is amended to read:

6047.9.  

(a) For purposes of calculating the amount to be
collected by the processor for purchased grapes, the assessment
shall be based on the gross dollar value of the grapes, which is the
gross dollar amount payable for the grapes before any deductions
for governmental assessments and fees.

(b) For purposes of calculating the assessment for grapes not
purchased, the assessment shall be based on the following:

(1) The tonnage of grapes delivered less material other than
grapes and defects or other weight adjustments deducted from
gross weight.

(2) The weighted average price per ton delivered basis purchased
from all nonrelated sources for wine, concentrate, juice, wine
vinegar, and beverage brandy by processors, by type, variety, and
reporting district where grown for the grapes delivered, sources
as reported by the secretary pursuant to Section 55601.5 for the
immediately preceding marketing season.

begin delete SEC. 174. end delete
begin insert SEC. 173. end insert   

Section 12996 of the Food and Agricultural Code
is amended to read:

12996.  

(a) Every person who violates any provision of this
division relating to pesticides, or any regulation issued pursuant
to a provision of this division relating to pesticides, is guilty of a
misdemeanor and upon conviction shall be punished by a fine of
not less than five hundred dollars ($500) nor more than five
thousand dollars ($5,000), or by imprisonment of not more than
six months, or by both the fine and imprisonment. Upon a second
or subsequent conviction of the same provision of this division
relating to pesticides, a person shall be punished by a fine of not
less than one thousand dollars ($1,000) nor more than ten thousand
dollars ($10,000), or by imprisonment of not more than six months,
or by both the fine and imprisonment. Each violation constitutes
a separate offense.

(b) Notwithstanding the penalties prescribed in subdivision (a),
if the offense involves an intentional or negligent violation that
created or reasonably could have created a hazard to human health
or the environment, the convicted person shall be punished by
imprisonment in a county jail not exceeding one year or in the
state prison or by a fine of not less than five thousand dollars
($5,000) nor more than fifty thousand dollars ($50,000), or by both
the fine and imprisonment.

(c) This section does not apply to violations of Chapter 7.5
(commencing with Section 15300) or Section 13186.5.

begin delete SEC. 175. end delete
begin insert SEC. 174. end insert   

Section 12999.5 of the Food and Agricultural Code
is amended to read:

12999.5.  

(a) In lieu of civil prosecution by the director, the
county agricultural commissioner may levy a civil penalty against
a person violating Division 6 (commencing with Section 11401),
Article 10 (commencing with Section 12971) or Article 10.5
(commencing with Section 12980) of this chapter, Section 12995,
Article 1 (commencing with Section 14001) of Chapter 3, Chapter
3.7 (commencing with Section 14160), Chapter 7.5 (commencing
with Section 15300), or a regulation adopted pursuant to any of
these provisions, of not more than one thousand dollars ($1,000)
for each violation. Any violation determined by the county
agricultural commissioner to be a Class A violation as defined in
Section 6130 of Title 3 of the California Code of Regulations is
subject to a fine of not more than five thousand dollars ($5,000)
for each violation. It is unlawful and grounds for denial of a permit
under Section 14008 for a person to refuse or neglect to pay a civil
penalty levied pursuant to this section once the order is final.

(b) If a person has received a civil penalty for pesticide drift in
a school area subject to Section 11503.5 that results in a Class A
violation as defined in subdivision (a), the county agricultural
commissioner shall charge a fee, not to exceed fifty dollars ($50),
for processing and monitoring each subsequent pesticide
application that may pose a risk of pesticide drift made in a school
area subject to Section 11503.5. The county agricultural
commissioner shall continue to impose the fee for each subsequent
application that may pose a risk of drift, until the person has
completed 24 months without another Class A violation as defined
in subdivision (a).

(c) Before a civil penalty is levied, the person charged with the
violation shall be given a written notice of the proposed action,
including the nature of the violation and the amount of the proposed
penalty, and shall have the right to request a hearing within 20
days after receiving notice of the proposed action. A notice of the
proposed action that is sent by certified mail to the last known
address of the person charged shall be considered received even
if delivery is refused or the notice is not accepted at that address.
If a hearing is requested, notice of the time and place of the hearing
shall be given at least 10 days before the date set for the hearing.
At the hearing, the person shall be given an opportunity to review
the county agricultural commissioner’s evidence and to present
evidence on his or her own behalf. If a hearing is not timely
requested, the county agricultural commissioner may take the
action proposed without a hearing.

(d) If the person upon whom the county agricultural
commissioner levied a civil penalty requested and appeared at a
hearing, the person may appeal the county agricultural
commissioner’s decision to the director within 30 days of the date
of receiving a copy of the county agricultural commissioner’s
decision. The following procedures apply to the appeal:

(1) The appeal shall be in writing and signed by the appellant
or his or her authorized agent, state the grounds for the appeal, and
include a copy of the county agricultural commissioner’s decision.
The appellant shall file a copy of the appeal with the county
agricultural commissioner at the same time it is filed with the
director.

(2) The appellant and the county agricultural commissioner
may, at the time of filing the appeal or within 10 days thereafter
or at a later time prescribed by the director, present the record of
the hearing, including written evidence that was submitted at the
hearing, and a written argument to the director stating grounds for
affirming, modifying, or reversing the county agricultural
commissioner’s decision.

(3) The director may grant oral arguments upon application
made at the time written arguments are filed.

(4) If an application to present an oral argument is granted,
written notice of the time and place for the oral argument shall be
given at least 10 days before the date set for the oral argument.
The times may be altered by mutual agreement of the appellant,
the county agricultural commissioner, and the director.

(5) The director shall decide the appeal on the record of the
hearing, including the written evidence and the written argument
described in paragraph (2), that he or she has received. If the
director finds substantial evidence in the record to support the
county agricultural commissioner’s decision, the director shall
affirm the decision.

(6) The director shall render a written decision within 45 days
of the date of appeal or within 15 days of the date of oral arguments
or as soon thereafter as practical.

(7) On an appeal pursuant to this section, the director may affirm
the county agricultural commissioner’s decision, modify the county
agricultural commissioner’s decision by reducing or increasing
the amount of the penalty levied so that it is within the director’s
guidelines for imposing civil penalties, or reverse the county
agricultural commissioner’s decision. A civil penalty increased by
the director shall not be higher than that proposed in the county
agricultural commissioner’s notice of proposed action given
pursuant to subdivision (c). A copy of the director’s decision shall
be delivered or mailed to the appellant and the county agricultural
commissioner.

(8) Any person who does not request a hearing pursuant to
subdivision (c) may not file an appeal pursuant to this subdivision.

(9) Review of a decision of the director may be sought by the
appellant within 30 days of the date of the decision pursuant to
Section 1094.5 of the Code of Civil Procedure.

(e) The county agricultural commissioner may levy a civil
penalty pursuant to subdivisions (a), (c), and (d) against a person
violating paragraph (1), (2), or (8) of subdivision (a) of Section
1695 of the Labor Code, which pertains to registration with the
county agricultural commissioner, carrying proof of that
registration, and filing changes of address with the county
agricultural commissioner.

(f) After the exhaustion of the appeal and review procedures
provided in this section, the county agricultural commissioner or
his or her representative may file a certified copy of a final decision
of the county agricultural commissioner that directs the payment
of a civil penalty and, if applicable, a copy of any decision of the
director or his or her authorized representative rendered on an
appeal from the county agricultural commissioner’s decision and
a copy of any order that denies a petition for a writ of
administrative mandamus, with the clerk of the superior court of
any county. Judgment shall be entered immediately by the clerk
in conformity with the decision or order. Fees shall not be charged
by the clerk of the superior court for the performance of official
service required in connection with the entry of judgment pursuant
to this section.

begin delete SEC. 176. end delete
begin insert SEC. 175. end insert   

Section 13186.5 of the Food and Agricultural Code
is amended to read:

13186.5.  

(a) Commencing July 1, 2016, and except as provided
in subdivision (b), a school designee, as defined in Section 17609
of the Education Code, and any person, including, but not
necessarily limited to, a schoolsite or school district employee,
who, in the course of his or her work, intends to apply a pesticide
at a schoolsite subject to this article, shall annually complete a
training course provided by the department or an agent authorized
by the department. The training course shall include integrated
pest management and the safe use of pesticides in relation to the
unique nature of schoolsites and children’s health.

(b) (1) Commencing July 1, 2016, any person hired to apply a
pesticide at a schoolsite subject to this article shall complete at
least a one-hour training course in integrated pest management
and the safe use of pesticides in relation to the unique nature of
schoolsites and children’s health before applying pesticides at a
schoolsite subject to this article and during each subsequent
licensing period in which the person applies a pesticide at a
schoolsite subject to this article. The training course may be applied
to his or her professional continuing education requirement required
by the Structural Pest Control Board or the department.

(2) The training course required by paragraph (1) shall be
developed by the department and may also be developed by a
provider approved by the Structural Pest Control Board if the
training course has been approved by the department.

(3) The department shall ensure that the training course it
develops or approves pursuant to paragraph (2) meets the
requirements for continuing education credit required by the
Structural Pest Control Board and the department.

begin delete SEC. 177. end delete
begin insert SEC. 176. end insert   

Section 19227 of the Food and Agricultural Code
is amended to read:

19227.  

(a) In addition to the license fee required pursuant to
Section 19225, the department may charge each licensed renderer
and collection center an additional fee necessary to cover the
reasonable costs of administering Article 6 (commencing with
Section 19300) and Article 6.5 (commencing with Section 19310).
The additional fees authorized to be imposed by this section shall
not exceed three thousand dollars ($3,000) per year per each
licensed rendering plant or collection center.

(b) The secretary shall fix the annual fee established pursuant
to this section and may fix different fees for renderers and
collection centers. The secretary shall also fix the date the fee is
due and the method of collecting the fee. If an additional fee is
imposed on licensed renderers pursuant to subdivision (a) and an
additional fee is imposed on registered transporters pursuant to
subdivision (a) of Section 19315, only one additional fee may be
imposed on a person or firm that is both licensed as a renderer
pursuant to Article 6 (commencing with Section 19300) and
registered as a transporter of inedible kitchen grease pursuant to
Article 6.5 (commencing with Section 19310), which fee shall be
the higher of the two fees.

(c) If the fee established pursuant to this section is not paid
within one calendar month of the date it is due, a penalty shall be
imposed in the amount of 10 percent per annum on the amount of
the unpaid fee.

(d) This section shall become inoperative on July 1, 2020, and,
as of January 1, 2021, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2021, deletes or
extends the dates on which it becomes inoperative and is repealed.

begin delete SEC. 178. end delete
begin insert SEC. 177. end insert   

Section 55462 of the Food and Agricultural Code,
as added by Section 5 of Chapter 651 of the Statutes of 1997, is
repealed.

begin delete SEC. 179. end delete
begin insert SEC. 178. end insert   

Section 77103 of the Food and Agricultural Code
is repealed.

begin delete SEC. 180. end delete
begin insert SEC. 179. end insert   

Section 78579 of the Food and Agricultural Code
is amended to read:

78579.  

(a) Unless funds are otherwise provided by the
Secretary for Environmental Protection, before the referendum
vote is conducted by the secretary, the proponents of the council
shall deposit with the secretary the amount that the secretary
determines is necessary to defray the expenses of preparing the
necessary lists and information and conducting the referendum
vote.

(b) Any funds not used in carrying out this article shall be
returned to the proponents of the council who deposited the funds
with the secretary.

(c) Upon the establishment of the council, the council may
reimburse the proponents of the council for any funds deposited
by the proponents with the secretary that were used in carrying
out this article, and for any legal expenses and costs incurred in
establishing the council.

begin delete SEC. 181. end delete
begin insert SEC. 180. end insert   

The heading of Chapter 3 (commencing with Section
980) of Part 5 of Division 3.6 of Title 1 of the Government Code
is repealed.

begin delete SEC. 182. end delete
begin insert SEC. 181. end insert   

Section 4420.5 of the Government Code, as added
by Section 18 of Chapter 407 of the Statutes of 1998, is repealed.

begin delete SEC. 183. end delete
begin insert SEC. 182. end insert   

The heading of Chapter 14 (commencing with
Section 5970) of Division 6 of Title 1 of the Government Code,
as added by Section 1 of Chapter 309 of the Statutes of 1996, is
amended and renumbered to read:

 

Chapter  15. Awarding of Contracts

 

begin delete SEC. 184. end delete
begin insert SEC. 183. end insert   

Section 6254 of the Government Code is amended
to read:

6254.  

Except as provided in Sections 6254.7 and 6254.13, this
chapter does not require the disclosure of any of the following
records:

(a) Preliminary drafts, notes, or interagency or intra-agency
memoranda that are not retained by the public agency in the
ordinary course of business, if the public interest in withholding
those records clearly outweighs the public interest in disclosure.

(b) Records pertaining to pending litigation to which the public
agency is a party, or to claims made pursuant to Division 3.6
(commencing with Section 810), until the pending litigation or
claim has been finally adjudicated or otherwise settled.

(c) Personnel, medical, or similar files, the disclosure of which
would constitute an unwarranted invasion of personal privacy.

(d) Records contained in or related to any of the following:

(1) Applications filed with any state agency responsible for the
regulation or supervision of the issuance of securities or of financial
institutions, including, but not limited to, banks, savings and loan
associations, industrial loan companies, credit unions, and
insurance companies.

(2) Examination, operating, or condition reports prepared by,
on behalf of, or for the use of, any state agency referred to in
paragraph (1).

(3) Preliminary drafts, notes, or interagency or intra-agency
communications prepared by, on behalf of, or for the use of, any
state agency referred to in paragraph (1).

(4) Information received in confidence by any state agency
referred to in paragraph (1).

(e) Geological and geophysical data, plant production data, and
similar information relating to utility systems development, or
market or crop reports, that are obtained in confidence from any
person.

(f) Records of complaints to, or investigations conducted by,
or records of intelligence information or security procedures of,
the office of the Attorney General and the Department of Justice,
the Office of Emergency Services and any state or local police
agency, or any investigatory or security files compiled by any other
state or local police agency, or any investigatory or security files
compiled by any other state or local agency for correctional, law
enforcement, or licensing purposes. However, state and local law
enforcement agencies shall disclose the names and addresses of
persons involved in, or witnesses other than confidential informants
to, the incident, the description of any property involved, the date,
time, and location of the incident, all diagrams, statements of the
parties involved in the incident, the statements of all witnesses,
other than confidential informants, to the victims of an incident,
or an authorized representative thereof, an insurance carrier against
which a claim has been or might be made, and any person suffering
bodily injury or property damage or loss, as the result of the
incident caused by arson, burglary, fire, explosion, larceny,
robbery, carjacking, vandalism, vehicle theft, or a crime as defined
by subdivision (b) of Section 13951, unless the disclosure would
endanger the safety of a witness or other person involved in the
investigation, or unless disclosure would endanger the successful
completion of the investigation or a related investigation. However,
this division does not require the disclosure of that portion of those
investigative files that reflects the analysis or conclusions of the
investigating officer.

Customer lists provided to a state or local police agency by an
alarm or security company at the request of the agency shall be
construed to be records subject to this subdivision.

Notwithstanding any other provision of this subdivision, state
and local law enforcement agencies shall make public the following
information, except to the extent that disclosure of a particular
item of information would endanger the safety of a person involved
in an investigation or would endanger the successful completion
of the investigation or a related investigation:

(1) The full name and occupation of every individual arrested
by the agency, the individual’s physical description including date
of birth, color of eyes and hair, sex, height and weight, the time
and date of arrest, the time and date of booking, the location of
the arrest, the factual circumstances surrounding the arrest, the
amount of bail set, the time and manner of release or the location
where the individual is currently being held, and all charges the
individual is being held upon, including any outstanding warrants
from other jurisdictions and parole or probation holds.

(2) Subject to the restrictions imposed by Section 841.5 of the
Penal Code, the time, substance, and location of all complaints or
requests for assistance received by the agency and the time and
nature of the response thereto, including, to the extent the
information regarding crimes alleged or committed or any other
incident investigated is recorded, the time, date, and location of
occurrence, the time and date of the report, the name and age of
the victim, the factual circumstances surrounding the crime or
incident, and a general description of any injuries, property, or
weapons involved. The name of a victim of any crime defined by
Section 220, 236.1, 261, 261.5, 262, 264, 264.1, 265, 266, 266a,
266b, 266c, 266e, 266f, 266j, 267, 269, 273a, 273d, 273.5, 285,
286, 288, 288a, 288.2, 288.3 (as added by Chapter 337 of the
Statutes of 2006), 288.3 (as added by Section 6 of Proposition 83
of the November 7, 2006, statewide general election), 288.5, 288.7,
289, 422.6, 422.7, 422.75, 646.9, or 647.6 of the Penal Code may
be withheld at the victim’s request, or at the request of the victim’s
parent or guardian if the victim is a minor. When a person is the
victim of more than one crime, information disclosing that the
person is a victim of a crime defined in any of the sections of the
Penal Code set forth in this subdivision may be deleted at the
request of the victim, or the victim’s parent or guardian if the
victim is a minor, in making the report of the crime, or of any
crime or incident accompanying the crime, available to the public
in compliance with the requirements of this paragraph.

(3) Subject to the restrictions of Section 841.5 of the Penal Code
and this subdivision, the current address of every individual
arrested by the agency and the current address of the victim of a
crime, if the requester declares under penalty of perjury that the
request is made for a scholarly, journalistic, political, or
governmental purpose, or that the request is made for investigation
purposes by a licensed private investigator as described in Chapter
11.3 (commencing with Section 7512) of Division 3 of the Business
and Professions Code. However, the address of the victim of any
crime defined by Section 220, 236.1, 261, 261.5, 262, 264, 264.1,
265, 266, 266a, 266b, 266c, 266e, 266f, 266j, 267, 269, 273a,
273d, 273.5, 285, 286, 288, 288a, 288.2, 288.3 (as added by
Chapter 337 of the Statutes of 2006), 288.3 (as added by Section
6 of Proposition 83 of the November 7, 2006, statewide general
election), 288.5, 288.7, 289, 422.6, 422.7, 422.75, 646.9, or 647.6
of the Penal Code shall remain confidential. Address information
obtained pursuant to this paragraph shall not be used directly or
indirectly, or furnished to another, to sell a product or service to
any individual or group of individuals, and the requester shall
execute a declaration to that effect under penalty of perjury. This
paragraph shall not be construed to prohibit or limit a scholarly,
journalistic, political, or government use of address information
obtained pursuant to this paragraph.

(g) Test questions, scoring keys, and other examination data
used to administer a licensing examination, examination for
employment, or academic examination, except as provided for in
Chapter 3 (commencing with Section 99150) of Part 65 of Division
14 of Title 3 of the Education Code.

(h) The contents of real estate appraisals or engineering or
feasibility estimates and evaluations made for or by the state or
local agency relative to the acquisition of property, or to
prospective public supply and construction contracts, until all of
the property has been acquired or all of the contract agreement
obtained. However, the law of eminent domain shall not be affected
by this provision.

(i) Information required from any taxpayer in connection with
the collection of local taxes that is received in confidence and the
disclosure of the information to other persons would result in unfair
competitive disadvantage to the person supplying the information.

(j) Library circulation records kept for the purpose of identifying
the borrower of items available in libraries, and library and museum
materials made or acquired and presented solely for reference or
exhibition purposes. The exemption in this subdivision shall not
apply to records of fines imposed on the borrowers.

(k) Records, the disclosure of which is exempted or prohibited
pursuant to federal or state law, including, but not limited to,
provisions of the Evidence Code relating to privilege.

(l) Correspondence of and to the Governor or employees of the
Governor’s office or in the custody of or maintained by the
Governor’s Legal Affairs Secretary. However, public records shall
not be transferred to the custody of the Governor’s Legal Affairs
Secretary to evade the disclosure provisions of this chapter.

(m) In the custody of or maintained by the Legislative Counsel,
except those records in the public database maintained by the
Legislative Counsel that are described in Section 10248.

(n) Statements of personal worth or personal financial data
required by a licensing agency and filed by an applicant with the
licensing agency to establish his or her personal qualification for
the license, certificate, or permit applied for.

(o) Financial data contained in applications for financing under
Division 27 (commencing with Section 44500) of the Health and
Safety Code, if an authorized officer of the California Pollution
Control Financing Authority determines that disclosure of the
financial data would be competitively injurious to the applicant
and the data is required in order to obtain guarantees from the
United States Small Business Administration. The California
Pollution Control Financing Authority shall adopt rules for review
of individual requests for confidentiality under this section and for
making available to the public those portions of an application that
are subject to disclosure under this chapter.

(p) Records of state agencies related to activities governed by
Chapter 10.3 (commencing with Section 3512), Chapter 10.5
(commencing with Section 3525), and Chapter 12 (commencing
with Section 3560) of Division 4, that reveal a state agency’s
deliberative processes, impressions, evaluations, opinions,
recommendations, meeting minutes, research, work products,
theories, or strategy, or that provide instruction, advice, or training
to employees who do not have full collective bargaining and
representation rights under these chapters. This subdivision shall
not be construed to limit the disclosure duties of a state agency
with respect to any other records relating to the activities governed
by the employee relations acts referred to in this subdivision.

(q) (1) Records of state agencies related to activities governed
by Article 2.6 (commencing with Section 14081), Article 2.8
(commencing with Section 14087.5), and Article 2.91
(commencing with Section 14089) of Chapter 7 of Part 3 of
Division 9 of the Welfare and Institutions Code, that reveal the
special negotiator’s deliberative processes, discussions,
communications, or any other portion of the negotiations with
providers of health care services, impressions, opinions,
recommendations, meeting minutes, research, work product,
theories, or strategy, or that provide instruction, advice, or training
to employees.

(2) Except for the portion of a contract containing the rates of
payment, contracts for inpatient services entered into pursuant to
these articles, on or after April 1, 1984, shall be open to inspection
one year after they are fully executed. If a contract for inpatient
services that is entered into prior to April 1, 1984, is amended on
or after April 1, 1984, the amendment, except for any portion
containing the rates of payment, shall be open to inspection one
year after it is fully executed. If the California Medical Assistance
Commission enters into contracts with health care providers for
other than inpatient hospital services, those contracts shall be open
to inspection one year after they are fully executed.

(3) Three years after a contract or amendment is open to
inspection under this subdivision, the portion of the contract or
amendment containing the rates of payment shall be open to
inspection.

(4) Notwithstanding any other law, the entire contract or
amendment shall be open to inspection by the Joint Legislative
Audit Committee and the Legislative Analyst’s Office. The
committee and that office shall maintain the confidentiality of the
contracts and amendments until the time a contract or amendment
is fully open to inspection by the public.

(r) Records of Native American graves, cemeteries, and sacred
places and records of Native American places, features, and objects
described in Sections 5097.9 and 5097.993 of the Public Resources
Code maintained by, or in the possession of, the Native American
Heritage Commission, another state agency, or a local agency.

(s) A final accreditation report of the Joint Commission on
Accreditation of Hospitals that has been transmitted to the State
Department of Health Care Services pursuant to subdivision (b)
of Section 1282 of the Health and Safety Code.

(t) Records of a local hospital district, formed pursuant to
Division 23 (commencing with Section 32000) of the Health and
Safety Code, or the records of a municipal hospital, formed
pursuant to Article 7 (commencing with Section 37600) or Article
8 (commencing with Section 37650) of Chapter 5 of Part 2 of
Division 3 of Title 4 of this code, that relate to any contract with
an insurer or nonprofit hospital service plan for inpatient or
outpatient services for alternative rates pursuant to Section 10133
of the Insurance Code. However, the record shall be open to
inspection within one year after the contract is fully executed.

(u) (1) Information contained in applications for licenses to
carry firearms issued pursuant to Section 26150, 26155, 26170,
or 26215 of the Penal Code by the sheriff of a county or the chief
or other head of a municipal police department that indicates when
or where the applicant is vulnerable to attack or that concerns the
applicant’s medical or psychological history or that of members
of his or her family.

(2) The home address and telephone number of prosecutors,
public defenders, peace officers, judges, court commissioners, and
magistrates that are set forth in applications for licenses to carry
firearms issued pursuant to Section 26150, 26155, 26170, or 26215
of the Penal Code by the sheriff of a county or the chief or other
head of a municipal police department.

(3) The home address and telephone number of prosecutors,
public defenders, peace officers, judges, court commissioners, and
magistrates that are set forth in licenses to carry firearms issued
pursuant to Section 26150, 26155, 26170, or 26215 of the Penal
Code by the sheriff of a county or the chief or other head of a
municipal police department.

(v) (1) Records of the Managed Risk Medical Insurance Board
and the State Department of Health Care Services related to
activities governed by Part 6.3 (commencing with Section 12695),
Part 6.5 (commencing with Section 12700), Part 6.6 (commencing
with Section 12739.5), or Part 6.7 (commencing with Section
12739.70) of Division 2 of the Insurance Code, or Chapter 2
(commencing with Section 15810) or Chapter 4 (commencing with
Section 15870) of Part 3.3 of Division 9 of the Welfare and
Institutions Code, and that reveal any of the following:

(A) The deliberative processes, discussions, communications,
or any other portion of the negotiations with entities contracting
or seeking to contract with the board or the department, entities
with which the board or the department is considering a contract,
or entities with which the board or department is considering or
enters into any other arrangement under which the board or the
department provides, receives, or arranges services or
reimbursement.

(B) The impressions, opinions, recommendations, meeting
minutes, research, work product, theories, or strategy of the board
or its staff or the department or its staff, or records that provide
instructions, advice, or training to their employees.

(2) (A) Except for the portion of a contract that contains the
rates of payment, contracts entered into pursuant to Part 6.3
(commencing with Section 12695), Part 6.5 (commencing with
Section 12700), Part 6.6 (commencing with Section 12739.5), or
Part 6.7 (commencing with Section 12739.70) of Division 2 of the
Insurance Code, or Chapter 2 (commencing with Section 15810)
or Chapter 4 (commencing with Section 15870) of Part 3.3 of
Division 9 of the Welfare and Institutions Code, on or after July
1, 1991, shall be open to inspection one year after their effective
dates.

(B) If a contract that is entered into prior to July 1, 1991, is
amended on or after July 1, 1991, the amendment, except for any
portion containing the rates of payment, shall be open to inspection
one year after the effective date of the amendment.

(3) Three years after a contract or amendment is open to
inspection pursuant to this subdivision, the portion of the contract
or amendment containing the rates of payment shall be open to
inspection.

(4) Notwithstanding any other law, the entire contract or
amendments to a contract shall be open to inspection by the Joint
Legislative Audit Committee. The committee shall maintain the
confidentiality of the contracts and amendments thereto, until the
contracts or amendments to the contracts are open to inspection
pursuant to paragraph (3).

(w) (1) Records of the Managed Risk Medical Insurance Board
related to activities governed by Chapter 8 (commencing with
Section 10700) of Part 2 of Division 2 of the Insurance Code, and
that reveal the deliberative processes, discussions, communications,
or any other portion of the negotiations with health plans, or the
impressions, opinions, recommendations, meeting minutes,
research, work product, theories, or strategy of the board or its
staff, or records that provide instructions, advice, or training to
employees.

(2) Except for the portion of a contract that contains the rates
of payment, contracts for health coverage entered into pursuant to
Chapter 8 (commencing with Section 10700) of Part 2 of Division
2 of the Insurance Code, on or after January 1, 1993, shall be open
to inspection one year after they have been fully executed.

(3) Notwithstanding any other law, the entire contract or
amendments to a contract shall be open to inspection by the Joint
Legislative Audit Committee. The committee shall maintain the
confidentiality of the contracts and amendments thereto, until the
contracts or amendments to the contracts are open to inspection
pursuant to paragraph (2).

(x) Financial data contained in applications for registration, or
registration renewal, as a service contractor filed with the Director
of Consumer Affairs pursuant to Chapter 20 (commencing with
Section 9800) of Division 3 of the Business and Professions Code,
for the purpose of establishing the service contractor’s net worth,
or financial data regarding the funded accounts held in escrow for
service contracts held in force in this state by a service contractor.

(y) (1) Records of the Managed Risk Medical Insurance Board
and the State Department of Health Care Services related to
activities governed by Part 6.2 (commencing with Section 12693)
or Part 6.4 (commencing with Section 12699.50) of Division 2 of
the Insurance Code or Sections 14005.26 and 14005.27 of, or
Chapter 3 (commencing with Section 15850) of Part 3.3 of Division
9 of, the Welfare and Institutions Code, if the records reveal any
of the following:

(A) The deliberative processes, discussions, communications,
or any other portion of the negotiations with entities contracting
or seeking to contract with the board or the department, entities
with which the board or department is considering a contract, or
entities with which the board or department is considering or enters
into any other arrangement under which the board or department
provides, receives, or arranges services or reimbursement.

(B) The impressions, opinions, recommendations, meeting
minutes, research, work product, theories, or strategy of the board
or its staff, or the department or its staff, or records that provide
instructions, advice, or training to employees.

(2) (A) Except for the portion of a contract that contains the
rates of payment, contracts entered into pursuant to Part 6.2
(commencing with Section 12693) or Part 6.4 (commencing with
Section 12699.50) of Division 2 of the Insurance Code, on or after
January 1, 1998, or Sections 14005.26 and 14005.27 of, or Chapter
3 (commencing with Section 15850) of Part 3.3 of Division 9 of,
the Welfare and Institutions Code shall be open to inspection one
year after their effective dates.

(B) If a contract entered into pursuant to Part 6.2 (commencing
with Section 12693) or Part 6.4 (commencing with Section
12699.50) of Division 2 of the Insurance Code or Sections
14005.26 and 14005.27 of, or Chapter 3 (commencing with Section
15850) of Part 3.3 of Division 9 of, the Welfare and Institutions
Code, is amended, the amendment shall be open to inspection one
year after the effective date of the amendment.

(3) Three years after a contract or amendment is open to
inspection pursuant to this subdivision, the portion of the contract
or amendment containing the rates of payment shall be open to
inspection.

(4) Notwithstanding any other law, the entire contract or
amendments to a contract shall be open to inspection by the Joint
Legislative Audit Committee. The committee shall maintain the
confidentiality of the contracts and amendments thereto until the
contract or amendments to a contract are open to inspection
pursuant to paragraph (2) or (3).

(5) The exemption from disclosure provided pursuant to this
subdivision for the contracts, deliberative processes, discussions,
communications, negotiations, impressions, opinions,
recommendations, meeting minutes, research, work product,
theories, or strategy of the board or its staff, or the department or
its staff, shall also apply to the contracts, deliberative processes,
discussions, communications, negotiations, impressions, opinions,
recommendations, meeting minutes, research, work product,
theories, or strategy of applicants pursuant to Part 6.4 (commencing
with Section 12699.50) of Division 2 of the Insurance Code or
Chapter 3 (commencing with Section 15850) of Part 3.3 of Division
9 of the Welfare and Institutions Code.

(z) Records obtained pursuant to paragraph (2) of subdivision
(f) of Section 2891.1 of the Public Utilities Code.

(aa) A document prepared by or for a state or local agency that
assesses its vulnerability to terrorist attack or other criminal acts
intended to disrupt the public agency’s operations and that is for
distribution or consideration in a closed session.

(ab) Critical infrastructure information, as defined in Section
131(3) of Title 6 of the United States Code, that is voluntarily
submitted to the Office of Emergency Services for use by that
office, including the identity of the person who or entity that
voluntarily submitted the information. As used in this subdivision,
“voluntarily submitted” means submitted in the absence of the
office exercising any legal authority to compel access to or
submission of critical infrastructure information. This subdivision
shall not affect the status of information in the possession of any
other state or local governmental agency.

(ac) All information provided to the Secretary of State by a
person for the purpose of registration in the Advance Health Care
Directive Registry, except that those records shall be released at
the request of a health care provider, a public guardian, or the
registrant’s legal representative.

(ad) The following records of the State Compensation Insurance
Fund:

(1) Records related to claims pursuant to Chapter 1
(commencing with Section 3200) of Division 4 of the Labor Code,
to the extent that confidential medical information or other
individually identifiable information would be disclosed.

(2) Records related to the discussions, communications, or any
other portion of the negotiations with entities contracting or seeking
to contract with the fund, and any related deliberations.

(3) Records related to the impressions, opinions,
recommendations, meeting minutes of meetings or sessions that
are lawfully closed to the public, research, work product, theories,
or strategy of the fund or its staff, on the development of rates,
contracting strategy, underwriting, or competitive strategy pursuant
to the powers granted to the fund in Chapter 4 (commencing with
Section 11770) of Part 3 of Division 2 of the Insurance Code.

(4) Records obtained to provide workers’ compensation
insurance under Chapter 4 (commencing with Section 11770) of
Part 3 of Division 2 of the Insurance Code, including, but not
limited to, any medical claims information, policyholder
information provided that nothing in this paragraph shall be
interpreted to prevent an insurance agent or broker from obtaining
proprietary information or other information authorized by law to
be obtained by the agent or broker, and information on rates,
pricing, and claims handling received from brokers.

(5) (A) Records that are trade secrets pursuant to Section
6276.44, or Article 11 (commencing with Section 1060) of Chapter
4 of Division 8 of the Evidence Code, including without limitation,
instructions, advice, or training provided by the State Compensation
Insurance Fund to its board members, officers, and employees
regarding the fund’s special investigation unit, internal audit unit,
and informational security, marketing, rating, pricing, underwriting,
claims handling, audits, and collections.

(B) Notwithstanding subparagraph (A), the portions of records
containing trade secrets shall be available for review by the Joint
Legislative Audit Committee, the Bureau of State Audits, Division
of Workers’ Compensation, and the Department of Insurance to
ensure compliance with applicable law.

(6) (A) Internal audits containing proprietary information and
the following records that are related to an internal audit:

(i) Personal papers and correspondence of any person providing
assistance to the fund when that person has requested in writing
that his or her papers and correspondence be kept private and
confidential. Those papers and correspondence shall become public
records if the written request is withdrawn, or upon order of the
fund.

(ii) Papers, correspondence, memoranda, or any substantive
information pertaining to any audit not completed or an internal
audit that contains proprietary information.

(B) Notwithstanding subparagraph (A), the portions of records
containing proprietary information, or any information specified
in subparagraph (A) shall be available for review by the Joint
Legislative Audit Committee, the Bureau of State Audits, Division
of Workers’ Compensation, and the Department of Insurance to
ensure compliance with applicable law.

(7) (A) Except as provided in subparagraph (C), contracts
entered into pursuant to Chapter 4 (commencing with Section
11770) of Part 3 of Division 2 of the Insurance Code shall be open
to inspection one year after the contract has been fully executed.

(B) If a contract entered into pursuant to Chapter 4 (commencing
with Section 11770) of Part 3 of Division 2 of the Insurance Code
is amended, the amendment shall be open to inspection one year
after the amendment has been fully executed.

(C) Three years after a contract or amendment is open to
inspection pursuant to this subdivision, the portion of the contract
or amendment containing the rates of payment shall be open to
inspection.

(D) Notwithstanding any other law, the entire contract or
amendments to a contract shall be open to inspection by the Joint
Legislative Audit Committee. The committee shall maintain the
confidentiality of the contracts and amendments thereto until the
contract or amendments to a contract are open to inspection
pursuant to this paragraph.

(E) This paragraph is not intended to apply to documents related
to contracts with public entities that are not otherwise expressly
confidential as to that public entity.

(F) For purposes of this paragraph, “fully executed” means the
point in time when all of the necessary parties to the contract have
signed the contract.

This section does not prevent any agency from opening its
records concerning the administration of the agency to public
inspection, unless disclosure is otherwise prohibited by law.

This section does not prevent any health facility from disclosing
to a certified bargaining agent relevant financing information
pursuant to Section 8 of the National Labor Relations Act (29
U.S.C. Sec. 158).

begin delete SEC. 185. end delete
begin insert SEC. 184. end insert   

Section 6276.22 of the Government Code is amended
to read:

6276.22.  

Gambling Control Act, exemption from disclosure
for records of the California Gambling Control Commission and
the Department of Justice, Sections 19819 and 19821, Business
and Professions Code.

Genetically Handicapped Persons Program, confidentiality of
factor replacement therapy contracts, Section 125191, Health and
Safety Code.

Governor, correspondence of and to Governor and Governor’s
office, subdivision (l), Section 6254.

Governor, transfer of public records in control of, restrictions
on public access, Section 6268.

Grand jury, confidentiality of request for special counsel, Section
936.7, Penal Code.

Grand jury, confidentiality of transcription of indictment or
accusation, Section 938.1, Penal Code.

Group Insurance, public employees, Section 53202.25.

Guardianship, confidentiality of report regarding the suitability
of the proposed guardian, Section 1543, Probate Code.

Guardianship, disclosure of report and recommendation
concerning proposed guardianship of person or estate, Section
1513, Probate Code.

begin delete SEC. 186. end delete
begin insert SEC. 185. end insert   

Section 6700 of the Government Code is amended
to read:

6700.  

(a) The holidays in this state are:

(1) Every Sunday.

(2) January 1st.

(3) The third Monday in January, known as “Dr. Martin Luther
King, Jr. Day.”

(4) February 12th, known as “Lincoln Day.”

(5) The third Monday in February.

(6) March 31st, known as “Cesar Chavez Day.”

(7) The last Monday in May.

(8) July 4th.

(9) The first Monday in September.

(10) September 9th, known as “Admission Day.”

(11) The fourth Friday in September, known as “Native
American Day.”

(12) The second Monday in October, known as “Columbus
Day.”

(13) November 11th, known as “Veterans Day.”

(14) December 25th.

(15) Good Friday from 12 noon until 3 p.m.

(16) (A) Every day appointed by the President or Governor for
a public fast, thanksgiving, or holiday.

(B) Except for the Thursday in November appointed as
Thanksgiving Day, this paragraph and paragraphs (3) and (6) shall
not apply to a city, county, or district unless made applicable by
charter, or by ordinance or resolution of the governing body
thereof.

(b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant
to Chapter 12 (commencing with Section 3560) of Division 4 of
Title 1, the memorandum of understanding shall be controlling
without further legislative action, except that if those provisions
of a memorandum of understanding require the expenditure of
funds, the provisions shall not become effective unless approved
by the Legislature in the annual Budget Act.

begin delete SEC. 187. end delete
begin insert SEC. 186. end insert   

The heading of Article 8.5 (commencing with
Section 8601) of Chapter 7 of Division 1 of Title 2 of the Government Code is repealed.

begin delete SEC. 188. end delete
begin insert SEC. 187. end insert   

Section 8753.6 of the Government Code is amended
to read:

8753.6.  

(a) The California Arts Council Contribution and
Donations Fund is hereby created in the State Treasury to receive
funds pursuant to subdivision (m) of Section 8753. Notwithstanding
Section 13340, the moneys in the fund are continuously
appropriated, without regard to fiscal years, to the Arts Council
for the purposes of this chapter.

(b) Any moneys in the Art Council Donations Account in the
Special Deposit Fund shall be transferred to the California Arts
Council Contribution and Donations Fund.

begin delete SEC. 189. end delete
begin insert SEC. 188. end insert   

Section 11146.2 of the Government Code is amended
to read:

11146.2.  

Each state agency shall maintain records indicating
the specific attendees, each attendee’s job title, and dates of their
attendance for each orientation course offered pursuant to Section
11146.1 for a period of not less than five years after each course
is given. These records shall be public records subject to inspection
and copying consistent with Section 81008 and otherwise subject
to the California Public Records Act (Chapter 3.5 (commencing
with Section 6250) of Division 7 of Title 1).

begin delete SEC. 190. end delete
begin insert SEC. 189. end insert   

The heading of Article 8 (commencing with Section
11350) of Chapter 3.5 of Part 1 of Division 3 of Title 2 of the Government Code, as added by Chapter 567 of the Statutes of
1979, is repealed.

begin delete SEC. 191. end delete
begin insert SEC. 190. end insert   

The heading of Article 1 (commencing with Section
11370) of Chapter 4 of Part 1 of Division 3 of Title 2 of the Government Code, as added by Chapter 1425 of the Statutes of
1947, is repealed.

begin delete SEC. 192. end delete
begin insert SEC. 191. end insert   

The heading of Article 6 (commencing with Section
12099) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, as added by Section 1 of Chapter 530 of the
Statutes of 2013, is amended and renumbered to read:

 

Article 6.2.  California Innovation Initiatives

 

begin delete SEC. 193. end delete
begin insert SEC. 192. end insert   

Section 12804 of the Government Code, as amended
by Section 27 of Chapter 46 of the Statutes of 2012, is repealed.

begin delete SEC. 194. end delete
begin insert SEC. 193. end insert   

Section 13312 of the Government Code is repealed.

begin delete SEC. 195. end delete
begin insert SEC. 194. end insert   

Section 13956 of the Government Code is amended
to read:

13956.  

Notwithstanding Section 13955, a person is not eligible
for compensation under the following conditions:

(a) An application shall be denied if the board finds that the
victim or, if compensation is sought by or on behalf of a derivative
victim, either the victim or derivative victim, knowingly and
willingly participated in the commission of the crime that resulted
in the pecuniary loss for which compensation is being sought
pursuant to this chapter. However, this subdivision does not apply
if the injury or death occurred as a direct result of a crime
committed in violation of Section 261, 262, or 273.5 of, or a crime
of unlawful sexual intercourse with a minor committed in violation
of subdivision (d) of Section 261.5 of, the Penal Code.

(b) (1) An application shall be denied if the board finds that
the victim or, if compensation is sought by, or on behalf of, a
derivative victim, either the victim or derivative victim failed to
cooperate reasonably with a law enforcement agency in the
apprehension and conviction of a criminal committing the crime.
However, in determining whether cooperation has been reasonable,
the board shall consider the victim’s or derivative victim’s age,
physical condition, and psychological state, cultural or linguistic
barriers, any compelling health and safety concerns, including, but
not limited to, a reasonable fear of retaliation or harm that would
jeopardize the well-being of the victim or the victim’s family or
the derivative victim or the derivative victim’s family, and giving
due consideration to the degree of cooperation of which the victim
or derivative victim is capable in light of the presence of any of
these factors.

(2) An application for a claim based on domestic violence shall
not be denied solely because no police report was made by the
victim. The board shall adopt guidelines that allow the board to
consider and approve applications for assistance based on domestic
violence relying upon evidence other than a police report to
establish that a domestic violence crime has occurred. Factors
evidencing that a domestic violence crime has occurred may
include, but are not limited to, medical records documenting
injuries consistent with allegations of domestic violence, mental
health records, or the fact that the victim has obtained a temporary
or permanent restraining order, or all of these.

(3) An application for a claim based on human trafficking as
defined in Section 236.1 of the Penal Code shall not be denied
solely because a police report was not made by the victim. The
board shall adopt guidelines that allow the board to consider and
approve applications for assistance based on human trafficking
relying upon evidence other than a police report to establish that
a human trafficking crime as defined in Section 236.1 of the Penal
Code has occurred. That evidence may include any reliable
corroborating information approved by the board, including, but
not limited to, the following:

(A) A Law Enforcement Agency Endorsement issued pursuant
to Section 236.2 of the Penal Code.

(B) A human trafficking caseworker as identified in Section
1038.2 of the Evidence Code, has attested by affidavit that the
individual was a victim of human trafficking.

(4) (A) An application for a claim by a military personnel victim
based on a sexual assault by another military personnel shall not
be denied solely because it was not reported to a superior officer
or law enforcement at the time of the crime.

(B) Factors that the board shall consider for purposes of
determining if a claim qualifies for compensation include, but are
not limited to, evidence of the following:

(i) Restricted or unrestricted reports to a military victim
advocate, sexual assault response coordinator, chaplain, attorney,
or other military personnel.

(ii) Medical or physical evidence consistent with sexual assault.

(iii) A written or oral report from military law enforcement or
a civilian law enforcement agency concluding that a sexual assault
crime was committed against the victim.

(iv) A letter or other written statement from a sexual assault
counselor, as defined in Section 1035.2 of the Evidence Code,
licensed therapist, or mental health counselor, stating that the
victim is seeking services related to the allegation of sexual assault.

(v) A credible witness to whom the victim disclosed the details
that a sexual assault crime occurred.

(vi) A restraining order from a military or civilian court against
the perpetrator of the sexual assault.

(vii) Other behavior by the victim consistent with sexual assault.

(C) For purposes of this subdivision, the sexual assault at issue
shall have occurred during military service, including deployment.

(D) For purposes of this subdivision, the sexual assault may
have been committed offbase.

(E) For purposes of this subdivision, a “perpetrator” means an
individual who is any of the following at the time of the sexual
assault:

(i) An active duty military personnel from the United States
Army, Navy, Marine Corps, Air Force, or Coast Guard.

(ii) A civilian employee of any military branch specified in
clause (i), military base, or military deployment.

(iii) A contractor or agent of a private military or private security
company.

(iv) A member of the California National Guard.

(F) For purposes of this subdivision, “sexual assault” means an
offense included in Section 261, 262, 264.1, 286, 288a, or 289 of
the Penal Code, as of the date the act that added this paragraph
was enacted.

(c) An application for compensation may be denied, in whole
or in part, if the board finds that denial is appropriate because of
the nature of the victim’s or other applicant’s involvement in the
events leading to the crime or the involvement of the persons whose
injury or death gives rise to the application. In the case of a minor,
the board shall consider the minor’s age, physical condition, and
psychological state, as well as any compelling health and safety
concerns, in determining whether the minor’s application should
be denied pursuant to this section. The application of a derivative
victim of domestic violence under the age of 18 years of age or a
derivative victim of trafficking under 18 years of age may not be
denied on the basis of the denial of the victim’s application under
this subdivision.

(d) (1) Notwithstanding Section 13955, no person who is
convicted of a felony may be granted compensation until that
person has been discharged from probation or has been released
from a correctional institution and has been discharged from parole,
if any. In no case shall compensation be granted to an applicant
pursuant to this chapter during any period of time the applicant is
held in a correctional institution.

(2) A person who has been convicted of a felony may apply for
compensation pursuant to this chapter at any time, but the award
of that compensation may not be considered until the applicant
meets the requirements for compensation set forth in paragraph
(1).

(3) Applications of victims who are not felons shall receive
priority in the award of compensation over an application submitted
by a felon who has met the requirements for compensation set
forth in paragraph (1).

begin delete SEC. 196. end delete
begin insert SEC. 195. end insert   

The heading of Article 7 (commencing with Section
13968) of Chapter 5 of Part 4 of Division 3 of Title 2 of the Government Code is repealed.

begin delete SEC. 197. end delete
begin insert SEC. 196. end insert   

Section 13994 of the Government Code is amended
and renumbered to read:

13998.  

Unless the context otherwise requires, the definitions
in this section govern the construction of this chapter.

(a) “Agency” means the Business, Transportation and Housing
Agency.

(b) “California-based foundation” means an organization defined
in the Internal Revenue Code as a private foundation, which is
incorporated in, and primarily conducts its activities within, the
state and receives funding in whole or in substantial part from
California-based companies.

(c) “Collaborative research” means technological or scientific
research that accelerates existing research toward the
commercialization of products, processes, and services, and is
conducted jointly or funded jointly by some or all of the following:

(1) The private sector, including intraindustry groups,
California-based private foundations, industry associations, and
nonprofit cooperative associations.

(2) The federal government.

(3) The state.

(4) Public or private universities, colleges, and laboratories.

(d) “Consortia” means jointly funded or jointly operated
nonprofit independent research and development organizations.
“Consortia development” means the establishment of consortia to
manage and fund a variety of technology transfer projects within
a specific technology or industry priority.

(e) “Industry association” is a nonprofit organization with a
substantial presence in California whose membership consists in
whole or in part of California-based companies, and whose funding
is derived in whole or in part from California-based companies.

(f) “Information technology” includes, but is not limited to, all
electronic technology systems and services, automated information
handling, system design and analysis, conversion of data, computer
programming, information storage and retrieval,
telecommunications that include voice, video, and data
communications, requisite system controls, simulation, electronic
commerce, and all related interactions between people and
machines.

(g) “Nonprofit cooperative association” means an association,
organized and operating pursuant to either Chapter 1 (commencing
with Section 54001) of Division 20 of the Food and Agricultural
Code or Part 2 (commencing with Section 12200) of Division 3
of Title 1 of the Corporations Code.

(h) “Technology” includes, but is not limited to, the application
of science and engineering to research and development, especially
for industrial or commercial objectives, in sectors that include
telecommunications, information technologies, electronics,
biochemistry, medicine, agriculture, transportation, space, and
aerospace.

(i) “Technology transfer” means the movement of the results
of basic or applied technological or scientific research to the design,
development, and production of new or improved products,
services, or processes.

begin delete SEC. 198. end delete
begin insert SEC. 197. end insert   

Section 13994.1 of the Government Code is amended
and renumbered to read:

13998.1.  

(a) (1) There is within the agency the Regional
Technology Alliance Program. The intent of the regional
technology alliances is to decentralize the delivery of services and
resources, programs and activities for technology development,
commercialization, application, and competitiveness at a regional
level.

(2) The agency may designate new regional technology alliances
upon application to carry out activities described in this section.

(3) The agency may establish criteria for designation that
includes, but need not be limited to, criteria previously established
by the Defense Conversion Council pursuant to Article 3.7
(commencing with Section 15346) of Chapter 1, as it read on
December 31, 1998.

(b) Each alliance shall perform the following activities:

(1) Raise and leverage funds from multiple public and private
sources to support technology development, commercialization,
and application and industry competitiveness particularly in
response to defense industry conversion and diversification.

(2) Assist in the formation of new businesses.

(3) Maintain an electronic network and access to databases that
encourages business ventures.

(4) Coordinate with activities and efforts of industry, academia,
federal laboratories, and governments.

(5) Recommend administrative actions or programs that could
assist California’s defense-dependent industries to successfully
convert to commercial markets.

(6) Provide information about state and federal defense
conversion programs, including, but not limited to, job training,
economic development, industrial modernization, dual-use
technology, new management techniques, and technology
development and transfer.

(7) Identify emerging industries that may include commercial
space applications, transportation, environment, high performance
computing and communications, biotechnology and advanced
materials, and processing and critical existing industries.

(c) Each alliance may also perform, but need not be limited to,
the following activities:

(1) Assist in identifying businesses that could benefit from
defense conversion programs and defense-dislocated workers who
require employment and training opportunities.

(2) Assist and provide coordination in determining job
opportunities within and outside of the defense industry for which
displaced workers could be retrained and placed.

(3) Serve as a forum for industrywide networking linking
producers, suppliers, and consumers.

(4) Assist individual businesses and industry consortia in
applying for state and federal defense conversion program funds.

(5) Provide information and assistance in upgrading individual
businesses and industrywide production and management
processes.

(6) Provide information on available state and federal resources
to aid businesses and workers affected by defense spending
reductions, base closures, plant closures, and layoffs, to foster
long-term economic vitality, industrial growth, and job
opportunities.

(d) Each alliance is encouraged to develop activities that achieve
the following results:

(1) Creation and retention of jobs.

(2) Creation of new businesses.

(3) Development of new commercial or dual-use products.

(4) Establishment of industry partnerships and consortia.

(5) Demonstration of productivity enhancement such as return
on investment, reduced cost, employee training, and upgrades.

(6) Establishment of public and private partnerships.

(7) Commitment of industry support, participation, and capital.

(8) Leverage of state funds.

(9) Loan repayment ratio.

(10) Participation of small businesses and minority-, women-,
and disabled veteran-owned businesses.

(11) Workforce training.

(e) The agency shall be authorized to enter into a contract for
services with any alliance to provide services to the office. These
contracts shall be sole source contracts, and exempt from the
competitive bid process.

(f) During the first two years following selection of an alliance,
the alliance shall monitor the performance of any application
funded pursuant to Section 13998.2, and each invoice for payment
shall be reviewed and approved by the alliance, but the contract
for services shall be directly between the agency and the entity
receiving grant funding. Commencing with the third year of
designation, any alliance with procedures and processes approved
by the agency shall be authorized to directly contract with grant
recipients. The agency shall audit these grants on a regular basis.

begin delete SEC. 199. end delete
begin insert SEC. 198. end insert   

Section 13994.2 of the Government Code is amended
and renumbered to read:

13998.2.  

(a) There is within the agency the Challenge Grant
Program, consisting of technology transfer grants and defense
industry conversion and diversification grants. Challenge grant
projects funded shall include, but not be limited to, the following:
defense industry conversion and diversification, access to ongoing
research and research findings, exchange or transfer of personnel
and research support services, including capital outlay, consortia
development, and collaborative research.

(b) All funds appropriated or received by the Challenge Grant
Program shall administratively be divided into either the
Technology Transfer Grant Program or the Defense Industry
Conversion and Diversification Program. Funding awards for the
Technology Transfer Grant Program shall be made pursuant to the
requirements set forth in Sections 13998.3 and 13998.6.

(c) The agency shall award grants based upon a competitive
application process addressing the project’s eligibility and ability
to fulfill the goals of the program.

(d) The agency shall report on this program to the Governor
and the Legislature.

begin delete SEC. 200. end delete
begin insert SEC. 199. end insert   

Section 13994.3 of the Government Code is amended
and renumbered to read:

13998.3.  

(a) An eligible technology transfer or defense industry
conversion and diversification project shall, at least, do all of the
following:

(1) Identify the sources of funding for the entire project.

(2) Not supplant other funding.

(3) Demonstrate that a significant portion of the project will be
undertaken in California.

(b) In addition to the requirements contained in subdivision (a),
a defense industry conversion and diversification project shall not
receive more than 25 percent of the total project costs requested
in the proposal.

(c) In addition to the requirements contained in subdivision (a),
a technology transfer project shall:

(1) Represent a technology or industry, or both, targeted in the
application.

(2) Include a significant amount of matching contributions from
either of the following:

(A) A private sector company or companies.

(B) A California-based foundation or foundations, an industry
association or associations, or a nonprofit cooperative association
or associations.

(3) Include either of the following:

(A) A private sector company or companies that have significant
operations in the state.

(B) A California-based foundation or foundations, an industry
association or associations, or a nonprofit cooperative association
or associations.

begin delete SEC. 201. end delete
begin insert SEC. 200. end insert   

Section 13994.4 of the Government Code is amended
and renumbered to read:

13998.4.  

The technology transfer grantee shall not incur
expenses to be paid with grant funds without evidence of a
workable agreement between the parties participating in the project
that includes at least both of the following:

(a) A resolution of the intellectual property rights relative to the
project.

(b) A direct and ongoing involvement of the public and private
sectors, when applicable in the project.

begin delete SEC. 202. end delete
begin insert SEC. 201. end insert   

Section 13994.5 of the Government Code is amended
and renumbered to read:

13998.5.  

(a) In awarding technology transfer grants, the agency
shall consider the following:

(1) The likelihood of commercialization of a product, service,
or process.

(2) The potential impact on the state’s economy.

(3) The cost-effectiveness of the project.

(4) The importance of state funding for the viability of the
project.

(5) Cost sharing by other participants.

(6) The involvement of small businesses and minority-, disabled
veteran-, and women-owned businesses.

(7) Projects that will result in a prototype by the end of the grant
period.

(8) Other criteria that the agency determines are consistent with
the purposes of the program.

(b) The agency shall target industries and technologies with a
potential for enhancing the California economy, and shall fund
projects within those industries and utilizing those technologies.

begin delete SEC. 203. end delete
begin insert SEC. 202. end insert   

Section 13994.6 of the Government Code is amended
and renumbered to read:

13998.6.  

Technology transfer projects may include reasonable
overhead costs incurred by a research institute and related to the
project that shall not exceed the allowable federal overhead costs
for research. All other projects may include any costs authorized
by the principal funding agency, and not precluded by state
requirements.

begin delete SEC. 204. end delete
begin insert SEC. 203. end insert   

Section 13994.7 of the Government Code is amended
and renumbered to read:

13998.7.  

Except for defense industry conversion and
diversification projects, only a public agency or a not-for-profit
or nonprofit organization shall receive funds under this chapter.
Any person or entity is authorized to receive a defense industry
conversion and diversification grant.

begin delete SEC. 205. end delete
begin insert SEC. 204. end insert   

Section 13994.8 of the Government Code is amended
and renumbered to read:

13998.8.  

(a) The agency may obtain scientific and
technological expertise as needed to provide advice and input on
the program, the establishment of targeted technologies and
industries, the review of grant applications, and the review of
project performance.

(b) The agency may award funds over a multiyear period to a
grantee without requiring the grantee to reapply, so long as the
funds in multiple years are utilized for the same project originally
funded.

begin delete SEC. 206. end delete
begin insert SEC. 205. end insert   

Section 13994.9 of the Government Code is amended
and renumbered to read:

13998.9.  

(a) Notwithstanding Sections begin delete 13994.2, 13994.3,
13994.4, and 13994.5, end delete begin insert 13998.2, 13998.3, 13998.4, and 13998.5 end insert
and the regulations implementing this chapter, the secretary may
award discretionary technology transfer grants totaling not more
than 5 percent or one hundred thousand dollars ($100,000),
whichever is greater, of the funds appropriated each year for this
program.

(b) Notwithstanding Sections 13998.2, 13998.3, 13998.4,
13998.5, and subdivision (a) of this section, the secretary may
award up to 15 percent of the funds appropriated for a given fiscal
year for consortia development projects that do not have private
sector match but will have private sector match within six months
from the date of the award of funding. For purposes of this
subdivision, “private sector match” means a cash or in-kind
contribution available for expenditure or use to a consortium
development project. If, after six months, a private sector match
is not available, funding under the program shall cease and all
moneys previously received shall be returned to the state.

begin delete SEC. 207. end delete
begin insert SEC. 206. end insert   

Section 13994.10 of the Government Code is
amended and renumbered to read:

13998.10.  

(a) In order to carry out this chapter, there is hereby
created in the State Treasury the California Competitive
Technology Fund.

(b) The fund shall receive state funds appropriated to it,
contributions from nonstate sources, reimbursements, federal funds,
and interest that accrues to the moneys in the fund pursuant to
subdivision (c).

(c) The Treasurer shall invest moneys contained in the fund not
needed to meet current obligations in the same manner as other
public funds are invested.

(d) Notwithstanding Section 13340, all moneys in the fund are
continuously appropriated without regard to fiscal years to the
agency for the purposes of this chapter, and for the purposes for
which moneys were provided. Except for state funds appropriated
to, or transferred into, the fund for local assistance, moneys in the
fund, including all interest, may be spent for support.

begin delete SEC. 208. end delete
begin insert SEC. 207. end insert   

Section 13994.11 of the Government Code is
amended and renumbered to read:

13998.11.  

The agency shall report on this program to the
Governor and the Legislature.

begin delete SEC. 209. end delete
begin insert SEC. 208. end insert   

Section 13994.12 of the Government Code is
amended and renumbered to read:

13998.12.  

There is hereby established within the agency the
Technology Planning Program. The program shall provide grants
and technical assistance to California nonprofit organizations and
public entities working within specific industries to identify
conversion or expansion projects. Grants may be awarded in the
areas of strategic planning and strategic alliances. The program
shall award grants based upon a competitive application process
addressing the project’s eligibility, a review of the proposal’s
scientific and technological aspects, and ability to fulfill goals of
the program. Priority shall be given to those projects with the
identified support of industry representatives, matching funding,
projects likely to receive federal funds requiring matching funds,
and any other criteria determined by the agency. A project example
is a joint effort to develop and commercialize defense-related
technologies by federal laboratories, universities, and companies
in close geographical proximity.

begin delete SEC. 210. end delete
begin insert SEC. 209. end insert   

Section 14254.5 of the Government Code is repealed.

begin delete SEC. 211. end delete
begin insert SEC. 210. end insert   

Section 14670.2 of the Government Code, as added
by Section 2 of Chapter 681 of the Statutes of 2007, is amended
and renumbered to read:

14670.22.  

(a) Notwithstanding any other provision of law, the
Director of General Services, with the consent of the Department
of Motor Vehicles, may lease or exchange, if the director deems
the leasing or exchanging to be in the best interest of the state, for
a term of years, as determined by the director, and for fair market
value, all or portions of parcels of real property, that are acquired
and used by the state for the benefit of the Department of Motor
Vehicles, as described in subdivision (b), for the purpose of
developing mixed public and private use facilities, including
adequate parking for the Department of Motor Vehicles field office,
as determined by that department, subject to all of the following
conditions:

(1) All proceeds from the lease or exchange of the Department
of Motor Vehicles property shall be deposited into the Motor
Vehicle Account in the State Transportation Fund and shall be
available for expenditure by the Department of Motor Vehicles.

(2) Each lease shall provide that the lessee may sublease for
commercial, retail or residential uses that portion of the developed
property that is not required for use of the state.

(3) A mixed-use facility developed pursuant to this section shall
be located at the current state-owned site unless there are mitigating
circumstances requiring relocation. If relocation does become
necessary, the replacement facility shall be located within the
geographic area that serves the current customer base.

(b) For purposes of this section, the following parcels of real
properties may be leased or exchanged pursuant to subdivision
(a):

(1) A parcel of real property located at 1377 Fell Street, San
Francisco.

(2) 3960 Normal Street, San Diego, provided that any lease or
exchange of property shall include a condition that a local farmer’s
market may continue to conduct regular business.

(3) 8629 Hellman Avenue, Rancho Cucamonga.

(c)  The Department of General Services and the Department
of Motor Vehicles, jointly, shall notify the Joint Legislative Budget
Committee when the Department of General Services, with the
consent of the Department of Motor Vehicles, enters into any lease
for a period of 30 years or more and shall report to the committee
the terms and conditions of any lease at least 45 days prior to
entering into that lease.

(d) Any lease or exchange of properties carried out pursuant to
this section shall be for no less than fair market value and upon
terms and conditions that the Director of General Services
determines to be in the best interest of the state. Compensation for
the property may include land, improvements, money, or any
combination thereof.

(e) The Department of General Services shall be reimbursed
for any cost or expense incurred in the disposition or lease of any
parcels described in this section by the Department of Motor
Vehicles or from the proceeds of the lease or exchange of those
parcels.

(f) The properties identified in this section are not subject to
Section 11011.1 or Article 8 (commencing with Section 54220)
of Chapter 5 of Part 1 of Division 2 of Title 5, and the properties
shall be or have been offered to the public through a competitive
process determined by the director to be in the best interest of the
state.

begin delete SEC. 212. end delete
begin insert SEC. 211. end insert   

The heading of Article 18 (commencing with Section
14717) of Chapter 2 of Part 5.5 of Division 3 of Title 2 of the Government Code is amended and renumbered to read:

 

Article 8.  Integrated Pest Management

 

begin delete SEC. 213. end delete
begin insert SEC. 212. end insert   

The heading of Chapter 4 (commencing with Section
14730) of Part 5.5 of Division 3 of Title 2 of the Government Code
is repealed.

begin delete SEC. 214. end delete
begin insert SEC. 213. end insert   

Section 14829.2 of the Government Code is repealed.

begin delete SEC. 215. end delete
begin insert SEC. 214. end insert   

Section 15155 of the Government Code is amended
to read:

15155.  

The committee shall consist of representatives from
the following organizations:

(a) Two representatives from the California Peace Officers’
Association.

(b) One representative from the California State Sheriffs’
Association.

(c) One representative from the League of California Cities.

(d) One representative from the County Supervisors Association
of California.

(e) One representative from the Department of Justice.

(f) One representative from the Department of Motor Vehicles.

(g) One representative from the Office of Emergency Services.

(h) One representative from the Department of the California
Highway Patrol.

(i) One representative from the California Police Chiefs
Association.

begin delete SEC. 216. end delete
begin insert SEC. 215. end insert   

Section 15814.22 of the Government Code is
amended to read:

15814.22.  

The Department of General Services, in consultation
with the State Energy Resources Conservation and Development
Commission and other state agencies and departments, shall
develop a multiyear plan, to be updated biennially, with the goal
of exploiting all practicable and cost-effective energy efficiency
measures in state facilities. The department shall coordinate plan
implementation efforts, and make recommendations to the
Governor and the Legislature to achieve energy efficiency goals
for state facilities.

begin delete SEC. 217. end delete
begin insert SEC. 216. end insert   

Section 16183 of the Government Code is amended
to read:

16183.  

(a) From the time a payment is made pursuant to
Section 16180, the amount of that payment shall bear interest at a
rate (not compounded), determined as follows:

(1) Beginning July 1, 2016, the rate of interest shall be 7 percent
per annum.

(2) The Controller shall establish an adjusted rate of interest for
the purpose of this subdivision not later than July 15th of any year
if the effective annual yield of the Pooled Money Investment
Account for the prior fiscal year is at least a full percentage point
more or less than the interest rate which is then in effect. The
adjusted rate of interest shall be equal per annum to the effective
annual yield earned in the prior fiscal year by the Pooled Money
Investment Account rounded to the nearest full percent, and shall
become effective for new deferrals, beginning on July 1, 1984,
and on July 1 of each immediately succeeding year, until June 30,
2016.

(3) The rate of interest provided pursuant to this subdivision for
the first fiscal year commencing after payment is made pursuant
to Section 16180 shall apply for that fiscal year and each fiscal
year thereafter until these postponed property taxes are repaid.

(b) The interest provided for in subdivision (a) shall be applied
beginning the first day of the month following the month in which
that payment is made and continuing on the first day of each month
thereafter until that amount is paid. In the event that any payments
are applied, in any month, to reduce the amount paid pursuant to
Section 16180, the interest provided for herein shall be applied to
the balance of that amount beginning on the first day of the
following month.

(c) In computing interest in accordance with this section,
fractions of a cent shall be disregarded.

(d) For the purpose of this section, the time a payment is made
shall be deemed to be the time a certificate of eligibility is
countersigned by the tax collector or the delinquency date of the
respective tax installment, whichever is later.

(e) The Controller shall include on forms supplied to claimants
pursuant to Sections 20621, 20630.5, 20639.9, 20640.9, and 20641
of the Revenue and Taxation Code, a statement of the interest rate
which shall apply to amounts postponed for the fiscal year to which
the form applies.

begin delete SEC. 218. end delete
begin insert SEC. 217. end insert   

Article 12 (commencing with Section 16429.30) of
Chapter 2 of Part 2 of Division 4 of Title 2 of the Government
Code is repealed.

begin delete SEC. 219. end delete
begin insert SEC. 218. end insert   

Section 17581.6 of the Government Code is amended
to read:

17581.6.  

(a) Funding apportioned pursuant to this section shall
constitute reimbursement pursuant to Section 6 of Article XIII B
of the California Constitution for the performance of any state
mandates included in the statutes and executive orders identified
in subdivision (e).

(b) Any school district, county office of education, or charter
school may elect to receive block grant funding pursuant to this
section.

(c) (1) A school district, county office of education, or charter
school that elects to receive block grant funding pursuant to this
section in a given fiscal year shall submit a letter requesting
funding to the Superintendent of Public Instruction on or before
August 30 of that fiscal year.

(2) The Superintendent of Public Instruction shall, in the month
of November of each year, apportion block grant funding
appropriated pursuant to Item 6110-296-0001 of Section 2.00 of
the annual Budget Act to all school districts, county offices of
education, and charter schools that submitted letters requesting
funding in that fiscal year according to the provisions of that item.

(3) A school district or county office of education that receives
block grant funding pursuant to this section shall not be eligible
to submit claims to the Controller for reimbursement pursuant to
Section 17560 for any costs of any state mandates included in the
statutes and executive orders identified in subdivision (e) incurred
in the same fiscal year during which the school district or county
office of education received funding pursuant to this section.

(d) Block grant funding apportioned pursuant to this section is
subject to annual financial and compliance audits required by
Section 41020 of the Education Code.

(e) Block grant funding apportioned pursuant to this section is
specifically intended to fund the costs of the following programs
and activities:

(1) Academic Performance Index (01-TC-22; Chapter 3 of the
Statutes of 1999, First Extraordinary Session; and Chapter 695 of
the Statutes of 2000).

(2) Agency Fee Arrangements (00-TC-17 and 01-TC-14;
Chapter 893 of the Statutes of 2000 and Chapter 805 of the Statutes
of 2001).

(3) AIDS Instruction and AIDS Prevention Instruction (CSM
4422, 99-TC-07, and 00-TC-01; Chapter 818 of the Statutes of
1991; and Chapter 403 of the Statutes of 1998).

(4) California State Teachers’ Retirement System (CalSTRS)
Service Credit (02-TC-19; Chapter 603 of the Statutes of 1994;
Chapters 383, 634, and 680 of the Statutes of 1996; Chapter 838
of the Statutes of 1997; Chapter 965 of the Statutes of 1998;
Chapter 939 of the Statutes of 1999; and Chapter 1021 of the
Statutes of 2000).

(5) Caregiver Affidavits (CSM 4497; Chapter 98 of the Statutes
of 1994).

(6) Charter Schools I, II, and III (CSM 4437, 99-TC-03, and
99-TC-14; Chapter 781 of the Statutes of 1992; Chapters 34 and
673 of the Statutes of 1998; Chapter 34 of the Statutes of 1998;
and Chapter 78 of the Statutes of 1999).

(7) Charter Schools IV (03-TC-03; Chapter 1058 of the Statutes
of 2002).

(8) Child Abuse and Neglect Reporting (01-TC-21: Chapters
640 and 1459 of the Statutes of 1987; Chapter 132 of the Statutes
of 1991; Chapter 459 of the Statutes of 1992; Chapter 311 of the
Statutes of 1998; Chapter 916 of the Statutes of 2000; and Chapters
133 and 754 of the Statutes of 2001).

(9) Collective Bargaining (CSM 4425; Chapter 961 of the
Statutes of 1975).

(10) Comprehensive School Safety Plans (98-TC-01 and
99-TC-10; Chapter 736 of the Statutes of 1997; Chapter 996 of
the Statutes of 1999; and Chapter 828 of the Statutes of 2003).

(11) Consolidation of Annual Parent Notification/Schoolsite
Discipline Rules/Alternative Schools (CSM 4488, CSM 4461,
99-TC-09, 00-TC-12, 97-TC-24, CSM 4453, CSM 4474, CSM
4462; Chapter 448 of the Statutes of 1975; Chapter 965 of the
Statutes of 1977; Chapter 975 of the Statutes of 1980; Chapter 469
of the Statutes of 1981; Chapter 459 of the Statutes of 1985;
Chapters 87 and 97 of the Statutes of 1986; Chapter 1452 of the
Statutes of 1987; Chapters 65 and 1284 of the Statutes of 1988;
Chapter 213 of the Statutes of 1989; Chapters 10 and 403 of the
Statutes of 1990; Chapter 906 of the Statutes of 1992; Chapter
1296 of the Statutes of 1993; Chapter 929 of the Statutes of 1997;
Chapters 846 and 1031 of the Statutes of 1998; Chapter 1 of the
Statutes of 1999, First Extraordinary Session; Chapter 73 of the
Statutes of 2000; Chapter 650 of the Statutes of 2003; Chapter 895
of the Statutes of 2004; and Chapter 677 of the Statutes of 2005).

(12) Consolidation of Law Enforcement Agency Notification
and Missing Children Reports (CSM 4505; Chapter 1117 of the
Statutes of 1989 and 01-TC-09; Chapter 249 of the Statutes of
1986; and Chapter 832 of the Statutes of 1999).

(13) Consolidation of Notification to Teachers: Pupils Subject
to Suspension or Expulsion I and II, and Pupil Discipline Records
(00-TC-10 and 00-TC-11; Chapter 345 of the Statutes of 2000).

(14) County Office of Education Fiscal Accountability Reporting
(97-TC-20; Chapters 917 and 1452 of the Statutes of 1987;
Chapters 1461 and 1462 of the Statutes of 1988; Chapter 1372 of
the Statutes of 1990; Chapter 1213 of the Statutes of 1991; Chapter
323 of the Statutes of 1992; Chapters 923 and 924 of the Statutes
of 1993; Chapters 650 and 1002 of the Statutes of 1994; and
Chapter 525 of the Statutes of 1995).

(15) Criminal Background Checks (97-TC-16; Chapters 588
and 589 of the Statutes of 1997).

(16) Criminal Background Checks II (00-TC-05; Chapters 594
and 840 of the Statutes of 1998; and Chapter 78 of the Statutes of
1999).

(17) Developer Fees (02-TC-42; Chapter 955 of the Statutes of
1977; Chapter 282 of the Statutes of 1979; Chapter 1354 of the
Statutes of 1980; Chapter 201 of the Statutes of 1981; Chapter 923
of the Statutes of 1982; Chapter 1254 of the Statutes of 1983;
Chapter 1062 of the Statutes of 1984; Chapter 1498 of the Statutes
of 1985; Chapters 136 and 887 of the Statutes of 1986; and Chapter
1228 of the Statutes of 1994).

(18) Differential Pay and Reemployment (99-TC-02; Chapter
30 of the Statutes of 1998).

(19) Expulsion of Pupil: Transcript Cost for Appeals (SMAS;
Chapter 1253 of the Statutes of 1975).

(20) Financial and Compliance Audits (CSM 4498 and CSM
4498-A; Chapter 36 of the Statutes of 1977).

(21) Graduation Requirements (CSM 4181; Chapter 498 of the
Statutes of 1983).

(22) Habitual Truants (CSM 4487 and CSM 4487-A; Chapter
1184 of the Statutes of 1975).

(23) High School Exit Examination (00-TC-06; Chapter 1 of
the Statutes of 1999, First Extraordinary Session; and Chapter 135
of the Statutes of 1999).

(24) Immunization Records (SB 90-120; Chapter 1176 of the
Statutes of 1977).

(25) Immunization Records--Hepatitis B (98-TC-05; Chapter
325 of the Statutes of 1978; Chapter 435 of the Statutes of 1979;
Chapter 472 of the Statutes of 1982; Chapter 984 of the Statutes
of 1991; Chapter 1300 of the Statutes of 1992; Chapter 1172 of
the Statutes of 1994; Chapters 291 and 415 of the Statutes of 1995;
Chapter 1023 of the Statutes of 1996; and Chapters 855 and 882
of the Statutes of 1997).

(26) Interdistrict Attendance Permits (CSM 4442; Chapters 172
and 742 of the Statutes of 1986; Chapter 853 of the Statutes of
1989; Chapter 10 of the Statutes of 1990; and Chapter 120 of the
Statutes of 1992).

(27) Intradistrict Attendance (CSM 4454; Chapters 161 and 915
of the Statutes of 1993).

(28) Juvenile Court Notices II (CSM 4475; Chapters 1011 and
1423 of the Statutes of 1984; Chapter 1019 of the Statutes of 1994;
and Chapter 71 of the Statutes of 1995).

(29) Notification of Truancy (CSM 4133; Chapter 498 of the
Statutes of 1983; Chapter 1023 of the Statutes of 1994; and Chapter
19 of the Statutes of 1995).

(30) Parental Involvement Programs (03-TC-16; Chapter 1400
of the Statutes of 1990; Chapters 864 and 1031 of the Statutes of
1998; Chapter 1037 of the Statutes of 2002).

(31) Physical Performance Tests (96-365-01; Chapter 975 of
the Statutes of 1995).

(32) Prevailing Wage Rate (01-TC-28; Chapter 1249 of the
Statutes of 1978).

(33) Public Contracts (02-TC-35; Chapter 1073 of the Statutes
of 1985; Chapter 1408 of the Statutes 1988; Chapter 330 of the
Statutes of 1989; Chapter 1414 of the Statutes of 1990; Chapter
321 of the Statutes of 1990; Chapter 799 of the Statutes of 1992;
and Chapter 726 of the Statutes of 1994).

(34) Pupil Health Screenings (CSM 4440; Chapter 1208 of the
Statutes of 1976; Chapter 373 of the Statutes of 1991; and Chapter
750 of the Statutes of 1992).

(35) Pupil Promotion and Retention (98-TC-19; Chapter 100
of the Statutes of 1981; Chapter 1388 of the Statutes of 1982;
Chapter 498 of the Statutes of 1983; Chapter 1263 of the Statutes
of 1990; and Chapters 742 and 743 of the Statutes of 1998).

(36) Pupil Safety Notices (02-TC-13; Chapter 498 of the Statutes
of 1983; Chapter 482 of the Statutes of 1984; Chapter 948 of the
Statutes of 1984; Chapter 196 of the Statutes of 1986; Chapter 332
of the Statutes of 1986; Chapter 445 of the Statutes of 1992;
Chapter 1317 of the Statutes of 1992; Chapter 589 of the Statutes
of 1993; Chapter 1172 of the Statutes of 1994; Chapter 1023 of
the Statutes of 1996; and Chapter 492 of the Statutes of 2000).

(37) Pupil Expulsions (CSM 4455; Chapter 1253 of the Statutes
of 1975; Chapter 965 of the Statutes of 1977; Chapter 668 of the
Statutes of 1978; Chapter 318 of the Statutes of 1982; Chapter 498
of the Statutes of 1983; Chapter 622 of the Statutes of 1984;
Chapter 942 of the Statutes of 1987; Chapter 1231 of the Statutes
of 1990; Chapter 152 of the Statutes of 1992; Chapters 1255, 1256,
and 1257 of the Statutes of 1993; and Chapter 146 of the Statutes
of 1994).

(38) Pupil Expulsion Appeals (CSM 4463; Chapter 1253 of the
Statutes of 1975; Chapter 965 of the Statutes of 1977; Chapter 668
of the Statutes of 1978; and Chapter 498 of the Statutes of 1983).

(39) Pupil Suspensions (CSM 4456; Chapter 965 of the Statutes
of 1977; Chapter 668 of the Statutes of 1978; Chapter 73 of the
Statutes of 1980; Chapter 498 of the Statutes of 1983; Chapter 856
of the Statutes of 1985; and Chapter 134 of the Statutes of 1987).

(40) School Accountability Report Cards (97-TC-21, 00-TC-09,
00-TC-13, and 02-TC-32; Chapter 918 of the Statutes of 1997;
Chapter 912 of the Statutes of 1997; Chapter 824 of the Statutes
of 1994; Chapter 1031 of the Statutes of 1993; Chapter 759 of the
Statutes of 1992; and Chapter 1463 of the Statutes of 1989).

(41) School District Fiscal Accountability Reporting (97-TC-19;
Chapter 100 of the Statutes of 1981; Chapter 185 of the Statutes
of 1985; Chapter 1150 of the Statutes of 1986; Chapters 917 and
1452 of the Statutes of 1987; Chapters 1461 and 1462 of the
Statutes of 1988; Chapter 525 of the Statutes of 1990; Chapter
1213 of the Statutes of 1991; Chapter 323 of the Statutes of 1992;
Chapters 923 and 924 of the Statutes of 1993; Chapters 650 and
1002 of the Statutes of 1994; and Chapter 525 of the Statutes of
1995).

(42) School District Reorganization (98-TC-24; Chapter 1192
of the Statutes of 1980; and Chapter 1186 of the Statutes of 1994).

(43) Student Records (02-TC-34; Chapter 593 of the Statutes
of 1989; Chapter 561 of the Statutes of 1993; Chapter 311 of the
Statutes of 1998; and Chapter 67 of the Statutes of 2000).

(44) The Stull Act (98-TC-25; Chapter 498 of the Statutes of
1983; and Chapter 4 of the Statutes of 1999).

(45) Threats Against Peace Officers (CSM 96-365-02; Chapter
1249 of the Statutes of 1992; and Chapter 666 of the Statutes of
1995).

(46) Uniform Complaint Procedures (03-TC-02; Chapter 1117
of the Statutes of 1982; Chapter 1514 of the Statutes of 1988; and
Chapter 914 of the Statutes of 1998).

(47) Williams Case Implementation I, II, and III (05-TC-04,
07-TC-06, and 08-TC-01; Chapters 900, 902, and 903 of the
Statutes of 2004; Chapter 118 of the Statutes of 2005; Chapter 704
of the Statutes of 2006; and Chapter 526 of the Statutes of 2007).

(48) Pupil Expulsions II, Pupil Suspensions II, and Educational
Services Plan for Expelled Pupils (96-358-03, 03A, 98-TC-22,
01-TC-18, 98-TC-23, 97-TC-09; Chapters 972 and 974 of the
Statutes of 1995; Chapters 915, 937, and 1052 of the Statutes of
1996; Chapter 637 of the Statutes of 1997; Chapter 498 of the
Statutes of 1998; Chapter 332 of the Statutes of 1999; Chapter 147
of the Statutes of 2000; and Chapter 116 of the Statutes of 2001).

(f) Notwithstanding Section 10231.5, on or before November
1 of each fiscal year, the Superintendent of Public Instruction shall
produce a report that indicates the total amount of block grant
funding each school district, county office of education, and charter
school received in that fiscal year pursuant to this section. The
Superintendent of Public Instruction shall provide this report to
the appropriate fiscal and policy committees of the Legislature,
the Controller, the Department of Finance, and the Legislative
Analyst’s Office.

begin delete SEC. 220. end delete
begin insert SEC. 219. end insert   

Section 18720.45 of the Government Code is
amended to read:

18720.45.  

Employment forms used by a state agency shall
require a person applying for employment to disclose whether the
person has entered into an agreement with the state regarding any
previous employment with the state that prohibits that person from
seeking or accepting any subsequent employment with the state.

begin delete SEC. 221. end delete
begin insert SEC. 220. end insert   

The heading of Chapter 5.5 (commencing with
Section 19994.20) of Part 2.6 of Division 5 of Title 2 of the Government Code is repealed.

begin delete SEC. 222. end delete
begin insert SEC. 221. end insert   

Section 19995.5 of the Government Code, as added
by Section 71 of Chapter 446 of the Statutes of 1999, is repealed.

begin delete SEC. 223. end delete
begin insert SEC. 222. end insert   

Section 22960.51 of the Government Code, as added
by Section 3 of Chapter 790 of the Statutes of 2014, is amended
and renumbered to read:

22960.52.  

Consistent with the requirements of Section
401(a)(2) of the Internal Revenue Code (26 U.S.C. Sec. 401(a)(2)),
the corpus or income of the plan’s trust shall not be diverted to,
or used for, purposes other than the exclusive benefit of the
members or their beneficiaries nor shall there be a reversion of
trust funds except as permitted by Revenue Ruling 91-4, 1991-1
C.B. 57, by the Internal Revenue Service.

begin insert

begin insert SEC. 223. end insert   

end insert

begin insert Section 27491 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

27491.  

It shall be the duty of the coroner to inquire into and
determine the circumstances, manner, and cause of all violent,
sudden, or unusual deaths; unattended deaths; deaths where the
deceased has not been attended by either a physician or a registered
nurse, who is a member of a hospice care interdisciplinary team,
as defined by subdivision begin delete (e) end delete begin insert (g) end insert of Section 1746 of the Health and
Safety Code in the 20 days before death; deaths related to or
following known or suspected self-induced or criminal abortion;
known or suspected homicide, suicide, or accidental poisoning;
deaths known or suspected as resulting in whole or in part from
or related to accident or injury either old or recent; deaths due to
drowning, fire, hanging, gunshot, stabbing, cutting, exposure,
starvation, acute alcoholism, drug addiction, strangulation,
aspiration, or where the suspected cause of death is sudden infant
death syndrome; death in whole or in part occasioned by criminal
means; deaths associated with a known or alleged rape or crime
against nature; deaths in prison or while under sentence; deaths
known or suspected as due to contagious disease and constituting
a public hazard; deaths from occupational diseases or occupational
hazards; deaths of patients in state mental hospitals serving the
mentally disabled and operated by the State Department of State
Hospitals; deaths of patients in state hospitals serving the
developmentally disabled and operated by the State Department
of Developmental Services; deaths under such circumstances as
to afford a reasonable ground to suspect that the death was caused
by the criminal act of another; and any deaths reported by
physicians or other persons having knowledge of death for inquiry
by coroner. Inquiry pursuant to this section does not include those
investigative functions usually performed by other law enforcement
agencies.

begin delete

In

end delete

begin insert (a) end insert begin insert   end insert begin insert In end insert any case in which the coroner conducts an inquiry
pursuant to this section, the coroner or a deputy shall personally
sign the certificate of death. If the death occurred in a state hospital,
the coroner shall forward a copy of his or her report to the state
agency responsible for the state hospital.

begin delete

The

end delete

begin insert (b) end insert begin insert   end insert begin insert The end insert coroner shall have discretion to determine the extent of
inquiry to be made into any death occurring under natural
circumstances and falling within the provisions of this section, and
if inquiry determines that the physician of record has sufficient
knowledge to reasonably state the cause of a death occurring under
natural circumstances, the coroner may authorize that physician
to sign the certificate of death.

begin delete

For

end delete

begin insert (c) end insert begin insert   end insert begin insert For end insert the purpose of inquiry, the coroner shall have the right
to exhume the body of a deceased person when necessary to
discharge the responsibilities set forth in this section.

begin delete

Any

end delete

begin insert (d) end insert begin insert   end insert begin insert Any end insert funeral director, physician, or other person who has
charge of a deceased person’s body, when death occurred as a
result of any of the causes or circumstances described in this
section, shall immediately notify the coroner. Any person who
does not notify the coroner as required by this section is guilty of
a misdemeanor.

begin delete SEC. 224. end delete
begin insert SEC. 224. end insert   

Section 31685.96 of the Government Code, as added
by Section 2 of Chapter 670 of the Statutes of 1994, is amended
and renumbered to read:

31685.97.  

This article shall not be operative in any county until
the board of supervisors shall, by resolution adopted by a majority
vote, make this article applicable in the county.

begin delete SEC. 225. end delete
begin insert SEC. 225. end insert   

Section 43009 of the Government Code, as added
by Section 5 of Chapter 752 of the Statutes of 1995, is repealed.

begin delete SEC. 226. end delete
begin insert SEC. 226. end insert   

Section 53216.8 of the Government Code, as
amended by Section 156 of Chapter 62 of the Statutes of 2003, is
amended and renumbered to read:

53216.9.  

(a) Any former member who left the service of a
local agency with established reciprocity, and who became a
member of a county retirement system, a retirement system
established under the Public Employees’ Retirement Law, or
another reciprocal retirement system and who did not elect to, or
was not eligible to, leave his or her contributions on deposit, may
elect to redeposit those contributions if he or she is an active
member of a reciprocal retirement system or the Public Employees’
Retirement System at the time of redeposit. A former member may
exercise this right by redepositing in the retirement fund of the
local agency he or she left, the amount of accumulated
contributions and interest that he or she withdrew from that
retirement fund plus regular interest thereon from the date of
separation.

(b) A former member who redeposits under this section shall
have the same rights as a member who elected to leave his or her
accumulated contributions on deposit in the local agency’s fund.
The deferred retirement allowance of the member shall be
determined in accordance with provisions applicable to a member
retiring directly from local agency employment on the date of his
or her retirement.

(c) A former member who redeposits under this section shall
be entitled to a reduced age at entry, commencing with
contributions payable the first day of the month following the date
the local agency receives notice of the redeposit, if applicable.

(d) This section does not apply to either of the following:

(1) A member or former member who is retired.

(2) A former member who is not in the service of an employer
making him or her a member of a county retirement system, a
retirement system established under the Public Employees’
Retirement Law, or another reciprocal retirement system.

(e) This section only applies to either of the following:

(1) A former member who is in the service of an employer as
an officer or employee of a law enforcement agency or fire
department whose principal duties consist of active law
enforcement or firefighting and prevention service, but excluding
one whose principal duties are those of a telephone operator, clerk,
stenographer, machinist, mechanic, or otherwise, and whose
functions do not clearly come within the scope of active law
enforcement or firefighting and prevention service, even though
the officer or employee is subject to occasional call, or is
occasionally called upon, to perform duties within the scope of
active law enforcement or firefighting and prevention service.

(2) A former member who is in the service of an employer and
seeks to redeposit contributions for past employment as an officer
or employee of a law enforcement agency or fire department in
this system whose principal duties consisted of active law
enforcement or firefighting and prevention service, but excluding
one whose principal duties were those of a telephone operator,
clerk, stenographer, machinist, mechanic, or otherwise, and whose
functions did not clearly come within the scope of active law
enforcement or firefighting and prevention service, even though
the officer or employee was subject to occasional call, or was
occasionally called upon, to perform duties within the scope of
active law enforcement or firefighting and prevention service.

(f) For purposes of this section, a “former member” is a member
who left service under a retirement system established under this
article and who did not elect to, or was not eligible to, leave his
or her contributions on deposit.

(g) Each retirement system subject to this section shall establish
criteria to determine the eligibility of a former member to redeposit
contributions, and the amount of contributions that may be
redeposited, in those cases in which the system no longer maintains
complete records with respect to the former member.

(h) It is the intent of the Legislature in enacting this section to
recognize a statewide public obligation to all those whose duties
as local public safety officers expose them to more than ordinary
risks through their contribution to ensuring public safety and to
ensure that those who do serve or have served as local public safety
officers shall have the ability to receive pension benefits for past
public service in other jurisdictions within the state.

begin delete SEC. 227. end delete
begin insert SEC. 227. end insert   

Section 53398.52 of the Government Code is
amended to read:

53398.52.  

(a) (1) A district may finance any of the following:

(A) The purchase, construction, expansion, improvement,
seismic retrofit, or rehabilitation of any real or other tangible
property with an estimated useful life of 15 years or longer that
satisfies the requirements of subdivision (b).

(B) The planning and design work that is directly related to the
purchase, construction, expansion, or rehabilitation of property.

(C) The costs described in Sections 53398.56 and 53398.57.

(2) The facilities need not be physically located within the
boundaries of the district. However, any facilities financed outside
of a district must have a tangible connection to the work of the
district, as detailed in the infrastructure financing plan adopted
pursuant to Section 53398.69.

(3) A district shall not finance routine maintenance, repair work,
or the costs of an ongoing operation or providing services of any
kind.

(b) The district shall finance only public capital facilities or
other specified projects of communitywide significance that
provide significant benefits to the district or the surrounding
community, including, but not limited to, all of the following:

(1) Highways, interchanges, ramps and bridges, arterial streets,
parking facilities, and transit facilities.

(2) Sewage treatment and water reclamation plants and
interceptor pipes.

(3) Facilities for the collection and treatment of water for urban
uses.

(4) Flood control levees and dams, retention basins, and drainage
channels.

(5) Child care facilities.

(6) Libraries.

(7) Parks, recreational facilities, and open space.

(8) Facilities for the transfer and disposal of solid waste,
including transfer stations and vehicles.

(9) Brownfield restoration and other environmental mitigation.

(10) The development of projects on a former military base,
provided that the projects are consistent with the military base
authority reuse plan and are approved by the military base reuse
authority, if applicable.

(11) The repayment of the transfer of funds to a military base
reuse authority pursuant to Section 67851 that occurred on or after
the creation of the district.

(12) The acquisition, construction, or rehabilitation of housing
for persons of low and moderate income, as defined in Section
50093 of the Health and Safety Code, for rent or purchase.

(13) Acquisition, construction, or repair of industrial structures
for private use.

(14) Transit priority projects, as defined in Section 21155 of
the Public Resources Code, that are located within a transit priority
project area. For purposes of this paragraph, a transit priority
project area may include a military base reuse plan that meets the
definition of a transit priority project area and it may include a
contaminated site within a transit priority project area.

(15) Projects that implement a sustainable communities strategy,
when the State Air Resources Board, pursuant to Chapter 2.5
(commencing with Section 65080) of Division 1 of Title 7, has
accepted a metropolitan planning organization’s determination
that the sustainable communities strategy or the alternative planning
strategy would, if implemented, achieve the greenhouse gas
emission reduction targets.

(c) The district shall require, by recorded covenants or
restrictions, that housing units built pursuant to this section shall
remain available at affordable housing costs to, and occupied by,
persons and families of low- or moderate-income households for
the longest feasible time, but for not less than 55 years for rental
units and 45 years for owner-occupied units.

(d) The district may finance mixed-income housing
developments, but may finance only those units in such a
development that are restricted to occupancy by persons of low or
moderate incomes as defined in Section 50093 of the Health and
Safety Code, and those onsite facilities for child care, after-school
care, and social services that are integrally linked to the tenants of
the restricted units.

(e) A district may utilize any powers under the Polanco
Redevelopment Act (Article 12.5 (commencing with Section
33459) of Chapter 4 of Part 1 of Division 24 of the Health and
Safety Code), and finance any action necessary to implement that
act.

begin delete SEC. 228. end delete
begin insert SEC. 228. end insert   

Section 53398.75 of the Government Code is
amended to read:

53398.75.  

(a) Any infrastructure financing plan may contain
a provision that taxes, if any, levied upon taxable property in the
area included within the enhanced infrastructure financing district
each year by or for the benefit of the State of California, or any
affected taxing entity after the effective date of the ordinance
adopted pursuant to Section 53398.69 to create the district, shall
be divided as follows:

(1) That portion of the taxes that would be produced by the rate
upon which the tax is levied each year by or for each of the affected
taxing entities upon the total sum of the assessed value of the
taxable property in the district as shown upon the assessment roll
used in connection with the taxation of the property by the affected
taxing entity, last equalized prior to the effective date of the
ordinance adopted pursuant to Section 53398.69 to create the
district, shall be allocated to, and when collected shall be paid to,
the respective affected taxing entities as taxes by or for the affected
taxing entities on all other property are paid.

(2) That portion of the levied taxes each year specified in the
adopted infrastructure financing plan for the city or county and
each affected taxing entity that has agreed to participate pursuant
to Section 53398.68 in excess of the amount specified in paragraph
(1) shall be allocated to, and when collected shall be paid into a
special fund of, the district for all lawful purposes of the district.
Unless and until the total assessed valuation of the taxable property
in a district exceeds the total assessed value of the taxable property
in the district as shown by the last equalized assessment roll
referred to in paragraph (1), all of the taxes levied and collected
upon the taxable property in the district shall be paid to the
respective affected taxing entities. When the district ceases to exist
pursuant to the adopted infrastructure financing plan, all moneys
thereafter received from taxes upon the taxable property in the
district shall be paid to the respective affected taxing entities as
taxes on all other property are paid.

(b) Notwithstanding subdivision (a), where any district
boundaries overlap with the boundaries of any former
redevelopment project area, any debt or obligation of a district
shall be subordinate to any and all enforceable obligations of the
former redevelopment agency, as approved by the Oversight Board
and the Department of Finance. For the purposes of this chapter,
the division of taxes allocated to the district pursuant to subdivision
(a) of this section or of subdivision (b) of Section 53396 shall not
include any taxes required to be deposited by the county
auditor-controller into the Redevelopment Property Tax Trust Fund
created pursuant to subdivision (b) of Section 34170.5 of the Health
and Safety Code.

(c) The legislative body of the city or county forming the district
may choose to dedicate any portion of its net available revenue to
the district through the financing plan described in Section
53398.63.

(d) For the purposes of this section, “net available revenue”
means periodic distributions to the city or county from the
Redevelopment Property Tax Trust Fund, created pursuant to
Section 34170.5 of the Health and Safety Code, that are available
to the city or county after all preexisting legal commitments and
statutory obligations funded from that revenue are made pursuant
to Part 1.85 (commencing with Section 34170) of Division 24 of
the Health and Safety Code. “Net available revenue” shall not
include any funds deposited by the county auditor-controller into
the Redevelopment Property Tax Trust Fund or funds remaining
in the Redevelopment Property Tax Trust Fund prior to distribution.
Net available revenues shall not include any moneys payable to a
school district that maintains kindergarten and grades 1 to 12,
inclusive, community college districts, county office of education,
or to the Educational Revenue Augmentation Fund, pursuant to
paragraph (4) of subdivision (a) of Section 34183 of the Health
and Safety Code.

(e) (1) That portion of any ad valorem property tax revenue
annually allocated to a city or county pursuant to Section 97.70 of
the Revenue and Taxation Code that is specified in the adopted
infrastructure financing plan for the city or county that has agreed
to participate pursuant to Section 53398.68, and that corresponds
to the increase in the assessed valuation of taxable property shall
be allocated to, and when collected shall be apportioned to a special
fund of the district for all lawful purposes of the district.

(2) When the district ceases to exist pursuant to the adopted
infrastructure financing plan, the revenues described in this
subdivision shall be allocated to, and when collected, shall be
apportioned to the respective city or county.

(f) This section shall not be construed to prevent a district from
utilizing revenues from any of the following sources to support its
activities provided that the applicable voter approval has been
obtained, and the infrastructure financing plan has been approved
pursuant to Section 53398.69:

(1) The Improvement Act of 1911 (Division 7 (commencing
with Section 5000) of the Streets and Highways Code).

(2) The Municipal Improvement Act of 1913 (Division 12
(commencing with Section 10000) of the Streets and Highways
Code).

(3) The Improvement Bond Act of 1915 (Division 10
(commencing with Section 8500) of the Streets and Highways
Code).

(4) The Landscaping and Lighting Act of 1972 (Part 2
(commencing with Section 22500) of Division 15 of the Streets
and Highways Code).

(5) The Vehicle Parking District Law of 1943 (Part 1
(commencing with Section 31500) of Division 18 of the Streets
and Highways Code).

(6) The Parking District Law of 1951 (Part 4 (commencing with
Section 35100) of Division 18 of the Streets and Highways Code).

(7) The Park and Playground Act of 1909 (Chapter 7
(commencing with Section 38000) of Part 2 of Division 3 of Title
4 of this code).

(8) The Mello-Roos Community Facilities Act of 1982 (Chapter
2.5 (commencing with Section 53311) of Part 1 of Division 2 of
this title).

(9) The Benefit Assessment Act of 1982 (Chapter 6.4
(commencing with Section 54703) of Part 1 of Division 2 of this
title).

(10) The so-called facilities benefit assessment levied by the
charter city of San Diego or any substantially similar assessment
levied for the same purpose by any other charter city pursuant to
any ordinance or charter provision.

begin delete SEC. 229. end delete
begin insert SEC. 229. end insert   

Section 56378 of the Government Code is amended
to read:

56378.  

(a) In addition to its other powers, the commission
shall initiate and make studies of existing governmental agencies.
Those studies shall include, but shall not be limited to, inventorying
those agencies and determining their maximum service area and
service capacities. In conducting those studies, the commission
may request land use information, studies, joint powers agreements,
and plans of cities, counties, districts, including school districts,
community college districts, joint powers agencies and joint powers
authorities, regional agencies, and state agencies and departments.
Cities, counties, districts, including school districts, community
college districts, joint powers agencies and joint powers authorities,
regional agencies, and state agencies and departments, shall comply
with the request of the commission for that information and the
commission shall make its studies available to public agencies and
any interested person. In making these studies, the commission
may cooperate with the county planning commissions.

(b) The commission, or the board of supervisors on behalf of
the commission, may apply for or accept, or both, any financial
assistance and grants-in-aid from public or private agencies or
from the state or federal government or from a local government.

begin delete SEC. 230. end delete
begin insert SEC. 230. end insert   

Section 65080.1 of the Government Code, as added
by Section 3 of Chapter 375 of the Statutes of 2007, is amended
and renumbered to read:

65080.6.  

Each transportation planning agency designated under
Section 29532 or 29532.1 whose jurisdiction includes a portion
of the California Coastal Trail, or property designated for the trail,
that is located within the coastal zone, as defined in Section 30103
of the Public Resources Code, shall coordinate with the State
Coastal Conservancy, the California Coastal Commission, and the
Department of Transportation regarding development of the
California Coastal Trail, and each transportation planning agency
shall include provisions for the California Coastal Trail in its
regional plan, under Section 65080.

begin delete SEC. 231. end delete
begin insert SEC. 231. end insert   

Section 65352.5 of the Government Code is amended
to read:

65352.5.  

(a) The Legislature finds and declares that it is vital
that there be close coordination and consultation between
California’s water supply or management agencies and California’s
land use approval agencies to ensure that proper water supply and
management planning occurs to accommodate projects that will
result in increased demands on water supplies or impact water
resource management.

(b) It is, therefore, the intent of the Legislature to provide a
standardized process for determining the adequacy of existing and
planned future water supplies to meet existing and planned future
demands on these water supplies and the impact of land use
decisions on the management of California’s water supply
resources.

(c) Upon receiving, pursuant to Section 65352, notification of
a city’s or a county’s proposed action to adopt or substantially
amend a general plan, a public water system, as defined in Section
116275 of the Health and Safety Code, with 3,000 or more service
connections, shall provide the planning agency with the following
information, as is appropriate and relevant:

(1) The current version of its urban water management plan,
adopted pursuant to Part 2.6 (commencing with Section 10610)
of Division 6 of the Water Code.

(2) The current version of its capital improvement program or
plan, as reported pursuant to Section 31144.73 of the Water Code.

(3) A description of the source or sources of the total water
supply currently available to the water supplier by water right or
contract, taking into account historical data concerning wet, normal,
and dry runoff years.

(4) A description of the quantity of surface water that was
purveyed by the water supplier in each of the previous five years.

(5) A description of the quantity of groundwater that was
purveyed by the water supplier in each of the previous five years.

(6) A description of all proposed additional sources of water
supplies for the water supplier, including the estimated dates by
which these additional sources should be available and the
quantities of additional water supplies that are being proposed.

(7) A description of the total number of customers currently
served by the water supplier, as identified by the following
categories and by the amount of water served to each category:

(A) Agricultural users.

(B) Commercial users.

(C) Industrial users.

(D) Residential users.

(8) Quantification of the expected reduction in total water
demand, identified by each customer category set forth in paragraph
(7), associated with future implementation of water use reduction
measures identified in the water supplier’s urban water
management plan.

(9) Any additional information that is relevant to determining
the adequacy of existing and planned future water supplies to meet
existing and planned future demands on these water supplies.

(d) Upon receiving, pursuant to Section 65352, notification of
a city’s or a county’s proposed action to adopt or substantially
amend a general plan, a groundwater sustainability agency, as
defined in Section 10721 of the Water Code, or an entity that
submits an alternative under Section 10733.6 of the Water Code
shall provide the planning agency with the following information,
as is appropriate and relevant:

(1) The current version of its groundwater sustainability plan
or alternative adopted pursuant to Part 2.74 (commencing with
Section 10720) of Division 6 of the Water Code.

(2) If the groundwater sustainability agency manages
groundwater pursuant to a court order, judgment, decree, or
agreement among affected water rights holders, or if the State
Water Resources Control Board has adopted an interim plan
pursuant to Chapter 11 (commencing with Section 10735) of Part
2.74 of Division 6 of the Water Code, the groundwater
sustainability agency shall provide the planning agency with maps
of recharge basins and percolation ponds, extraction limitations,
and other relevant information, or the court order, judgment, or
decree.

(3) A report on the anticipated effect of proposed action to adopt
or substantially amend a general plan on implementation of a
groundwater sustainability plan pursuant to Part 2.74 (commencing
with Section 10720) of Division 6 of the Water Code.

begin delete SEC. 232. end delete
begin insert SEC. 232. end insert   

Section 65583.2 of the Government Code, as
amended by Chapter 883 of the Statutes of 2014, is amended to
read:

65583.2.  

(a) A city’s or county’s inventory of land suitable
for residential development pursuant to paragraph (3) of
subdivision (a) of Section 65583 shall be used to identify sites that
can be developed for housing within the planning period and that
are sufficient to provide for the jurisdiction’s share of the regional
housing need for all income levels pursuant to Section 65584. As
used in this section, “land suitable for residential development”
includes all of the following:

(1) Vacant sites zoned for residential use.

(2) Vacant sites zoned for nonresidential use that allows
residential development.

(3) Residentially zoned sites that are capable of being developed
at a higher density.

(4) Sites zoned for nonresidential use that can be redeveloped
for, and as necessary, rezoned for, residential use.

(b) The inventory of land shall include all of the following:

(1) A listing of properties by parcel number or other unique
reference.

(2) The size of each property listed pursuant to paragraph (1),
and the general plan designation and zoning of each property.

(3) For nonvacant sites, a description of the existing use of each
property.

(4) A general description of any environmental constraints to
the development of housing within the jurisdiction, the
documentation for which has been made available to the
jurisdiction. This information need not be identified on a
site-specific basis.

(5) A general description of existing or planned water, sewer,
and other dry utilities supply, including the availability and access
to distribution facilities. This information need not be identified
on a site-specific basis.

(6) Sites identified as available for housing for above
moderate-income households in areas not served by public sewer
systems. This information need not be identified on a site-specific
basis.

(7) A map that shows the location of the sites included in the
inventory, such as the land use map from the jurisdiction’s general
plan, for reference purposes only.

(c) Based on the information provided in subdivision (b), a city
or county shall determine whether each site in the inventory can
accommodate some portion of its share of the regional housing
need by income level during the planning period, as determined
pursuant to Section 65584. The analysis shall determine whether
the inventory can provide for a variety of types of housing,
including multifamily rental housing, factory-built housing,
mobilehomes, housing for agricultural employees, emergency
shelters, and transitional housing. The city or county shall
determine the number of housing units that can be accommodated
on each site as follows:

(1) If local law or regulations require the development of a site
at a minimum density, the department shall accept the planning
agency’s calculation of the total housing unit capacity on that site
based on the established minimum density. If the city or county
does not adopt a law or regulations requiring the development of
a site at a minimum density, then it shall demonstrate how the
number of units determined for that site pursuant to this subdivision
will be accommodated.

(2) The number of units calculated pursuant to paragraph (1)
shall be adjusted as necessary, based on the land use controls and
site improvements requirement identified in paragraph (5) of
subdivision (a) of Section 65583.

(3) For the number of units calculated to accommodate its share
of the regional housing need for lower income households pursuant
to paragraph (2), a city or county shall do either of the following:

(A) Provide an analysis demonstrating how the adopted densities
accommodate this need. The analysis shall include, but is not
limited to, factors such as market demand, financial feasibility, or
information based on development project experience within a
zone or zones that provide housing for lower income households.

(B) The following densities shall be deemed appropriate to
accommodate housing for lower income households:

(i) For an incorporated city within a nonmetropolitan county
and for a nonmetropolitan county that has a micropolitan area:
sites allowing at least 15 units per acre.

(ii) For an unincorporated area in a nonmetropolitan county not
included in clause (i): sites allowing at least 10 units per acre.

(iii) For a suburban jurisdiction: sites allowing at least 20 units
per acre.

(iv) For a jurisdiction in a metropolitan county: sites allowing
at least 30 units per acre.

(d) For purposes of this section, a metropolitan county,
nonmetropolitan county, and nonmetropolitan county with a
micropolitan area shall be as determined by the United States
Census Bureau. A nonmetropolitan county with a micropolitan
area includes the following counties: Del Norte, Humboldt, Lake,
Mendocino, Nevada, Tehama, and Tuolumne and other counties
as may be determined by the United States Census Bureau to be
nonmetropolitan counties with micropolitan areas in the future.

(e) (1) Except as provided in paragraph (2), a jurisdiction shall
be considered suburban if the jurisdiction does not meet the
requirements of clauses (i) and (ii) of subparagraph (B) of
paragraph (3) of subdivision (c) and is located in a Metropolitan
Statistical Area (MSA) of less than 2,000,000 in population, unless
that jurisdiction’s population is greater than 100,000, in which
case it shall be considered metropolitan. A county, not including
the City and County of San Francisco, shall be considered suburban
unless the county is in an MSA of 2,000,000 or greater in
population in which case the county shall be considered
metropolitan.

(2) (A) (i) Notwithstanding paragraph (1), if a county that is
in the San Francisco-Oakland-Fremont California MSA has a
population of less than 400,000, that county shall be considered
suburban. If this county includes an incorporated city that has a
population of less than 100,000, this city shall also be considered
suburban. This paragraph shall apply to a housing element revision
cycle, as described in subparagraph (A) of paragraph (3) of
subdivision (e) of Section 65588, that is in effect from July 1,
2014, to December 31, 2023, inclusive.

(ii) A county subject to this subparagraph shall utilize the sum
existing in the county’s housing trust fund as of June 30, 2013, for
the development and preservation of housing affordable to low- and
very low income households.

(B) A jurisdiction that is classified as suburban pursuant to this
paragraph shall report to the Assembly Committee on Housing
and Community Development, the Senate Committee on
Transportation and Housing, and the Department of Housing and
Community Development regarding its progress in developing
low- and very low income housing consistent with the requirements
of Section 65400. The report shall be provided twice: once, on or
before December 31, 2019, which report shall address the initial
four years of the housing element cycle, and a second time, on or
before December 31, 2023, which report shall address the
subsequent four years of the housing element cycle and the cycle
as a whole. The reports shall be provided consistent with the
requirements of Section 9795.

(f) A jurisdiction shall be considered metropolitan if the
jurisdiction does not meet the requirements for “suburban area”
above and is located in an MSA of 2,000,000 or greater in
population, unless that jurisdiction’s population is less than 25,000
in which case it shall be considered suburban.

(g) For sites described in paragraph (3) of subdivision (b), the
city or county shall specify the additional development potential
for each site within the planning period and shall provide an
explanation of the methodology used to determine the development
potential. The methodology shall consider factors including the
extent to which existing uses may constitute an impediment to
additional residential development, development trends, market
conditions, and regulatory or other incentives or standards to
encourage additional residential development on these sites.

(h) The program required by subparagraph (A) of paragraph (1)
of subdivision (c) of Section 65583 shall accommodate 100 percent
of the need for housing for very low and low-income households
allocated pursuant to Section 65584 for which site capacity has
not been identified in the inventory of sites pursuant to paragraph
(3) of subdivision (a) on sites that shall be zoned to permit
owner-occupied and rental multifamily residential use by right
during the planning period. These sites shall be zoned with
minimum density and development standards that permit at least
16 units per site at a density of at least 16 units per acre in
jurisdictions described in clause (i) of subparagraph (B) of
paragraph (3) of subdivision (c) and at least 20 units per acre in
jurisdictions described in clauses (iii) and (iv) of subparagraph (B)
of paragraph (3) of subdivision (c). At least 50 percent of the very
low and low-income housing need shall be accommodated on sites
designated for residential use and for which nonresidential uses
or mixed-uses are not permitted, except that a city or county may
accommodate all of the very low and low-income housing need
on sites designated for mixed uses if those sites allow 100 percent
residential use and require that residential use occupy 50 percent
of the total floor area of a mixed-use project.

(i) For purposes of this section and Section 65583, the phrase
“use by right” shall mean that the local government’s review of
the owner-occupied or multifamily residential use may not require
a conditional use permit, planned unit development permit, or other
discretionary local government review or approval that would
constitute a “project” for purposes of Division 13 (commencing
with Section 21000) of the Public Resources Code. Any subdivision
of the sites shall be subject to all laws, including, but not limited
to, the local government ordinance implementing the Subdivision
Map Act. A local ordinance may provide that “use by right” does
not exempt the use from design review. However, that design
review shall not constitute a “project” for purposes of Division 13
(commencing with Section 21000) of the Public Resources Code.
Use by right for all rental multifamily residential housing shall be
provided in accordance with subdivision (f) of Section 65589.5.

(j) Notwithstanding any other provision of this section, within
one-half mile of a Sonoma-Marin Area Rail Transit station, housing
density requirements in place on June 30, 2014, shall apply.

(k) This section shall remain in effect only until December 31,
2023, and as of that date is repealed, unless a later enacted statute,
that is enacted before December 31, 2023, deletes or extends that
date.

begin delete SEC. 233. end delete
begin insert SEC. 233. end insert   

Section 65995.7 of the Government Code is amended
to read:

65995.7.  

(a) If state funds for new school facility construction
are not available, the governing board of a school district that
complies with Section 65995.5 may increase the alternative fee,
charge, dedication, or other requirement calculated pursuant to
subdivision (c) of Section 65995.5 by an amount that may not
exceed the amount calculated pursuant to subdivision (c) of Section
65995.5, except that for the purposes of calculating this additional
amount, the amount identified in paragraph (2) of subdivision (c)
of Section 65995.5 may not be subtracted from the amount
determined pursuant to paragraph (1) of subdivision (c) of Section
65995.5. For purposes of this section, state funds are not available
if the State Allocation Board is no longer approving apportionments
for new construction pursuant to Article 5 (commencing with
Section 17072.20) of Chapter 12.5 of Part 10 of the Education
Code due to a lack of funds available for new construction. Upon
making a determination that state funds are no longer available,
the State Allocation Board shall notify the Secretary of the Senate
and the Chief Clerk of the Assembly, in writing, of that
determination and the date when state funds are no longer available
for publication in the respective journal of each house. For the
purposes of making this determination, the board shall not consider
whether funds are available for, or whether it is making preliminary
apportionments or final apportionments pursuant to, Article 11
(commencing with Section 17078.10).

(b) A governing board may offer a reimbursement election to
the person subject to the fee, charge, dedication, or other
requirement that provides the person with the right to monetary
reimbursement of the supplemental amount authorized by this
section, to the extent that the district receives funds from state
sources for construction of the facilities for which that amount was
required, less any amount expended by the district for interim
housing. At the option of the person subject to the fee, charge,
dedication, or other requirement the reimbursement election may
be made on a tract or lot basis. Reimbursement of available funds
shall be made within 30 days as they are received by the district.

(c) A governing board may offer the person subject to the fee,
charge, dedication, or other requirement an opportunity to negotiate
an alternative reimbursement agreement if the terms of the
agreement are mutually agreed upon.

(d) A governing board may provide that the rights granted by
the reimbursement election or the alternative reimbursement
agreement are assignable.

begin delete SEC. 234. end delete
begin insert SEC. 234. end insert   

The heading of Article 2 (commencing with Section
72054) of Chapter 8 of Title 8 of the Government Code is repealed.

begin delete SEC. 235. end delete
begin insert SEC. 235. end insert   

The heading of Article 4 (commencing with Section
72150) of Chapter 8 of Title 8 of the Government Code is repealed.

begin delete SEC. 236. end delete
begin insert SEC. 236. end insert   

Section 75070 of the Government Code is amended
to read:

75070.  

In lieu of the retirement allowance for his or her life
alone, a judge may elect, or revoke or change a previous election
prior to the approval of the previous election, to have the actuarial
equivalent of his or her retirement allowance as of the date of
retirement applied to a lesser retirement allowance, in accordance
with one of the optional settlements specified in Section 75071.

That election, revocation, or change of election shall be made
by a writing filed with the Judges’ Retirement System within 30
calendar days after the making of the first payment on account of
any retirement allowance.

begin delete SEC. 237. end delete
begin insert SEC. 237. end insert   

Section 75521 of the Government Code is amended
to read:

75521.  

(a) A judge who leaves judicial office before accruing
at least five years of service shall be paid the amount of his or her
contributions to the system, and no other amount.

(b) A judge who leaves judicial office after accruing five or
more years of service and who is not eligible to elect to retire under
Section 75522 shall be paid the amount of his or her monetary
credits determined pursuant to Section 75520, including the credits
added under subdivision (b) of that section computed to the last
day of the month preceding the date of distribution, and no other
amount.

(c) Judges who leave office as described in subdivision (b) are
“retired judges” for purposes of a concurrent retirement with
respect to the benefits provided under Section 20639 and
assignment pursuant to Article 2 (commencing with Section
68540.7) of Chapter 2 and are eligible for benefits provided under
Section 22814.

(d) After a judge has withdrawn his or her accumulated
contributions or the amount of his or her monetary credits upon
leaving judicial office, the service shall not count in the event he
or she later becomes a judge again, until he or she pays into the
Judges’ Retirement System II Fund the amount withdrawn, plus
interest thereon at the rate of interest then being required to be
paid by members of the Public Employees’ Retirement System
under Section 20750 from the date of withdrawal to the date of
payment.

begin delete SEC. 238. end delete
begin insert SEC. 238. end insert   

Section 82015 of the Government Code is amended
to read:

82015.  

(a) “Contribution” means a payment, a forgiveness of
a loan, a payment of a loan by a third party, or an enforceable
promise to make a payment except to the extent that full and
adequate consideration is received, unless it is clear from the
surrounding circumstances that it is not made for political purposes.

(b) (1) A payment made at the behest of a committee, as defined
in subdivision (a) of Section 82013, is a contribution to the
committee unless full and adequate consideration is received from
the committee for making the payment.

(2) A payment made at the behest of a candidate is a contribution
to the candidate unless the criteria in either subparagraph (A) or
(B) are satisfied:

(A) Full and adequate consideration is received from the
candidate.

(B) It is clear from the surrounding circumstances that the
payment was made for purposes unrelated to his or her candidacy
for elective office. The following types of payments are presumed
to be for purposes unrelated to a candidate’s candidacy for elective
office:

(i) A payment made principally for personal purposes, in which
case it may be considered a gift under the provisions of Section
82028. Payments that are otherwise subject to the limits of Section
86203 are presumed to be principally for personal purposes.

(ii) A payment made by a state, local, or federal governmental
agency or by a nonprofit organization that is exempt from taxation
under Section 501(c)(3) of the Internal Revenue Code.

(iii) A payment not covered by clause (i), made principally for
legislative, governmental, or charitable purposes, in which case it
is neither a gift nor a contribution. However, payments of this type
that are made at the behest of a candidate who is an elected officer
shall be reported within 30 days following the date on which the
payment or payments equal or exceed five thousand dollars
($5,000) in the aggregate from the same source in the same
calendar year in which they are made. The report shall be filed by
the elected officer with the elected officer’s agency and shall be
a public record subject to inspection and copying pursuant to
Section 81008. The report shall contain the following information:
name of payor, address of payor, amount of the payment, date or
dates the payment or payments were made, the name and address
of the payee, a brief description of the goods or services provided
or purchased, if any, and a description of the specific purpose or
event for which the payment or payments were made. Once the
five-thousand-dollar ($5,000) aggregate threshold from a single
source has been reached for a calendar year, all payments for the
calendar year made by that source shall be disclosed within 30
days after the date the threshold was reached or the payment was
made, whichever occurs later. Within 30 days after receipt of the
report, state agencies shall forward a copy of these reports to the
Commission, and local agencies shall forward a copy of these
reports to the officer with whom elected officers of that agency
file their campaign statements.

(C) For purposes of subparagraph (B), a payment is made for
purposes related to a candidate’s candidacy for elective office if
all or a portion of the payment is used for election-related activities.
For purposes of this subparagraph, “election-related activities”
shall include, but are not limited to, the following:

(i) Communications that contain express advocacy of the
nomination or election of the candidate or the defeat of his or her
opponent.

(ii) Communications that contain reference to the candidate’s
candidacy for elective office, the candidate’s election campaign,
or the candidate’s or his or her opponent’s qualifications for
elective office.

(iii) Solicitation of contributions to the candidate or to third
persons for use in support of the candidate or in opposition to his
or her opponent.

(iv) Arranging, coordinating, developing, writing, distributing,
preparing, or planning of any communication or activity described
in clause (i), (ii), or (iii).

(v) Recruiting or coordinating campaign activities of campaign
volunteers on behalf of the candidate.

(vi) Preparing campaign budgets.

(vii) Preparing campaign finance disclosure statements.

(viii) Communications directed to voters or potential voters as
part of activities encouraging or assisting persons to vote if the
communication contains express advocacy of the nomination or
election of the candidate or the defeat of his or her opponent.

(D) A contribution made at the behest of a candidate for a
different candidate or to a committee not controlled by the
behesting candidate is not a contribution to the behesting candidate.

(3) A payment made at the behest of a member of the Public
Utilities Commission, made principally for legislative,
governmental, or charitable purposes, is not a contribution.
However, payments of this type shall be reported within 30 days
following the date on which the payment or payments equal or
exceed five thousand dollars ($5,000) in the aggregate from the
same source in the same calendar year in which they are made.
The report shall be filed by the member with the Public Utilities
Commission and shall be a public record subject to inspection and
copying pursuant to Section 81008. The report shall contain the
following information: name of payor, address of payor, amount
of the payment, date or dates the payment or payments were made,
the name and address of the payee, a brief description of the goods
or services provided or purchased, if any, and a description of the
specific purpose or event for which the payment or payments were
made. Once the five-thousand-dollar ($5,000) aggregate threshold
from a single source has been reached for a calendar year, all
payments for the calendar year made by that source shall be
disclosed within 30 days after the date the threshold was reached
or the payment was made, whichever occurs later. Within 30 days
after receipt of the report, the Public Utilities Commission shall
forward a copy of these reports to the Fair Political Practices
Commission.

(c) “Contribution” includes the purchase of tickets for events
such as dinners, luncheons, rallies, and similar fundraising events;
the candidate’s own money or property used on behalf of his or
her candidacy, other than personal funds of the candidate used to
pay either a filing fee for a declaration of candidacy or a candidate
statement prepared pursuant to Section 13307 of the Elections
Code; the granting of discounts or rebates not extended to the
public generally or the granting of discounts or rebates by television
and radio stations and newspapers not extended on an equal basis
to all candidates for the same office; the payment of compensation
by any person for the personal services or expenses of any other
person if the services are rendered or expenses incurred on behalf
of a candidate or committee without payment of full and adequate
consideration.

(d) “Contribution” further includes any transfer of anything of
value received by a committee from another committee, unless
full and adequate consideration is received.

(e) “Contribution” does not include amounts received pursuant
to an enforceable promise to the extent those amounts have been
previously reported as a contribution. However, the fact that those
amounts have been received shall be indicated in the appropriate
campaign statement.

(f) (1) Except as provided in paragraph (2) or (3), “contribution”
does not include a payment made by an occupant of a home or
office for costs related to any meeting or fundraising event held
in the occupant’s home or office if the costs for the meeting or
fundraising event are five hundred dollars ($500) or less.

(2) “Contribution” includes a payment made by a lobbyist or a
cohabitant of a lobbyist for costs related to a fundraising event
held at the home of the lobbyist, including the value of the use of
the home as a fundraising event venue. A payment described in
this paragraph shall be attributable to the lobbyist for purposes of
Section 85702.

(3) “Contribution” includes a payment made by a lobbying firm
for costs related to a fundraising event held at the office of the
lobbying firm, including the value of the use of the office as a
fundraising event venue.

(g) Notwithstanding the foregoing definition of “contribution,”
the term does not include volunteer personal services or payments
made by any individual for his or her own travel expenses if the
payments are made voluntarily without any understanding or
agreement that they shall be, directly or indirectly, repaid to him
or her.

(h) “Contribution” further includes the payment of public
moneys by a state or local governmental agency for a
communication to the public that satisfies both of the following:

(1) The communication expressly advocates the election or
defeat of a clearly identified candidate or the qualification, passage,
or defeat of a clearly identified measure, or, taken as a whole and
in context, unambiguously urges a particular result in an election.

(2) The communication is made at the behest of the affected
candidate or committee.

(i) “Contribution” further includes a payment made by a person
to a multipurpose organization as defined and described in Section
84222.

begin delete SEC. 239. end delete
begin insert SEC. 239. end insert   

Section 95014 of the Government Code is amended
to read:

95014.  

(a) The term “eligible infant or toddler” for the
purposes of this title means infants and toddlers from birth through
two years of age, for whom a need for early intervention services,
as specified in the federal Individuals with Disabilities Education
Act (20 U.S.C. Sec. begin delete 1430 end delete begin insert 1431 end insert et seq.) and applicable regulations,
is documented by means of assessment and evaluation as required
in Sections 95016 and 95018 and who meet one of the following
criteria:

(1) Infants and toddlers with a developmental delay in one or
more of the following five areas: cognitive development; physical
and motor development, including vision and hearing;
communication development; social or emotional development;
or adaptive development. Developmentally delayed infants and
toddlers are those who are determined to have a significant
difference between the expected level of development for their
age and their current level of functioning. This determination shall
be made by qualified personnel who are recognized by, or part of,
a multidisciplinary team, including the parents. A significant
difference is defined as a 33-percent delay in one or more
developmental areas.

(2) Infants and toddlers with established risk conditions, who
are infants and toddlers with conditions of known etiology or
conditions with established harmful developmental consequences.
The conditions shall be diagnosed by qualified personnel
recognized by, or part of, a multidisciplinary team, including the
parents. The condition shall be certified as having a high
probability of leading to developmental delay if the delay is not
evident at the time of diagnosis.

(3) Infants and toddlers who are at high risk of having substantial
developmental disability due to a combination of biomedical risk
factors, the presence of which are diagnosed by qualified personnel
recognized by, or part of, a multidisciplinary team, including the
parents.

(b) Regional centers and local educational agencies shall be
responsible for ensuring that eligible infants and toddlers are served
as follows:

(1) The State Department of Developmental Services and
regional centers shall be responsible for the provision of
appropriate early intervention services that are required for
California’s participation in Part C of the federal Individuals with
Disabilities Education Act (20 U.S.C. Sec. 1431 et seq.) for all
infants eligible under this section, except for those infants with
solely a visual, hearing, or severe orthopedic impairment, or any
combination of those impairments, who meet the criteria in
Sections 56026 and 56026.5 of the Education Code, and in Section
3030(a) or (b) of, and Section 3031 of, Title 5 of the California
Code of Regulations.

(2) The State Department of Education and local educational
agencies shall be responsible for the provision of appropriate early
intervention services in accordance with Part C of the federal
Individuals with Disabilities Education Act (20 U.S.C. Sec. 1431
et seq.) for infants with solely a visual, hearing, or severe
orthopedic impairment, or any combination of those impairments,
who meet the criteria in Sections 56026 and 56026.5 of the
Education Code, and in Section 3030(a) or (b) of, and Section
3031 of, Title 5 of the California Code of Regulations, and who
are not eligible for services under the Lanterman Developmental
Disabilities Services Act (Division 4.5 (commencing with Section
4500) of the Welfare and Institutions Code).

(3) The transfer procedures and timelines, as provided under
subdivision (d) of Section 4643.5 of the Welfare and Institutions
Code, shall apply if the circumstances pertaining to an eligible
infant or toddler are that the child (A) has an order for foster care
placement, is awaiting foster care placement, or is placed in
out-of-home care through voluntary placement as defined in
subdivision (o) of Section 11400 of the Welfare and Institutions
Code, and (B) transfers between regional centers.

(c) For infants and toddlers and their families who are eligible
to receive services from both a regional center and a local
educational agency, the regional center shall be the agency
responsible for providing or purchasing appropriate early
intervention services that are beyond the mandated responsibilities
of local educational agencies and that are required for California’s
participation in Part C of the federal Individuals with Disabilities
Education Act (20 U.S.C. Sec. 1431 et seq.). The local educational
agency shall provide special education services up to its funded
program capacity as established annually by the State Department
of Education in consultation with the State Department of
Developmental Services and the Department of Finance.

(d) An agency or multidisciplinary team, including any agency
listed in Section 95012, shall not presume or determine eligibility,
including eligibility for medical services, for any other agency.
However, regional centers and local educational agencies shall
coordinate intake, evaluation, assessment, and individualized
family service plans for infants and toddlers and their families who
are served by an agency.

(e) Upon termination of the program pursuant to Section 95003,
the State Department of Developmental Services shall be
responsible for the payment of services pursuant to this title.

(f) This section shall become operative on January 1, 2015.

begin delete SEC. 240. end delete
begin insert SEC. 240. end insert   

The heading of Chapter 10 (commencing with
Section 95030) of Title 14 of the Government Code is repealed.

begin delete SEC. 241. end delete
begin insert SEC. 241. end insert   

Section 678.3 of the Harbors and Navigation Code
is amended to read:

678.3.  

(a) (1) The division shall determine the fees required
under this section in amounts sufficient to cover the reasonable
costs of the development, establishment, and operation of the
program. The fees shall not exceed those costs.

(2) The division shall charge a fee not to exceed thirty dollars
($30) for the initial vessel operator card issued pursuant to
subdivision (b) of Section 678.

(3) The division shall charge a fee not to exceed ten dollars
($10) for a duplicate vessel operator card issued pursuant to
subdivision (b) of Section 678.

(b) In determining the amount of the fees imposed pursuant to
this section, the division shall establish, and consult with, a
technical advisory group consisting of interested persons, including,
but not limited to, representatives of the boating community. The
deputy director shall appoint the members of the advisory group.

(c) The fees collected pursuant to this section shall be deposited
in the Vessel Operator Certification Account, which is hereby
established within the Harbors and Watercraft Revolving Fund.

(d) The division may expend the moneys in the Vessel Operator
Certification Account, upon appropriation by the Legislature, for
purposes of implementing this article.

begin delete SEC. 242. end delete
begin insert SEC. 242. end insert   

Section 1159.1 of the Harbors and Navigation Code
is repealed.

begin delete SEC. 243. end delete
begin insert SEC. 243. end insert   

Section 1159.2 of the Harbors and Navigation Code
is amended to read:

1159.2.  

(a) The vessel shall pay a board operations surcharge,
the purpose of which is to fully compensate the board and the
Transportation Agency for the official services, staff services, and
incidental expenses of the board and agency. The amount of the
surcharge shall be 7.5 percent of all pilotage fees charged by pilots
pursuant to Sections 1190 and 1191 unless the board establishes,
with the approval of the Department of Finance, a lesser
percentage, not to exceed any percentage consistent with
subdivision (d).

(b) The surcharge shall be billed and collected by the pilots.
The pilots shall pay all surcharges collected by them to the board
monthly or at a later time that the board may direct.

(c) The board shall quarterly review its ongoing and anticipated
expenses and adjust the surcharge to reflect any changes that have
occurred since the last adjustment.

(d) The board operations surcharge shall not represent a
percentage significantly more than that required to support the
board and any costs of the Transportation Agency related to the
administration of the board pursuant to subdivision (a) in addition
to the maintenance of a reasonable reserve.

begin delete SEC. 244. end delete
begin insert SEC. 244. end insert   

Section 6087 of the Harbors and Navigation Code
is amended to read:

6087.  

(a) (1) Notwithstanding the borrowing limit set forth
in Section 6084, the Oxnard Harbor District may borrow money
by issuance of promissory notes, or execute conditional sales
contracts to purchase personal property, in an amount or of a value
not exceeding in the aggregate at any one time the sum of ten
million dollars ($10,000,000), for the purposes of acquiring land
for and constructing or operating any work, project, or facility
authorized by subdivision (d) of Section 6012 or Section 6075 or
for the making of improvements or the purchase of equipment or
for the maintenance thereof.

(2) All moneys borrowed pursuant to this section shall be
borrowed for a term not exceeding five years, and the
indebtednesses shall not accrue interest in excess of 12 percent
per annum. The indebtedness shall be authorized by a resolution
of the board of commissioners adopted by a two-thirds vote of the
members of the board.

(3) As a condition precedent to the borrowing of any money or
the execution of any conditional sales contract, as provided in this
section, in excess of one hundred thousand dollars ($100,000), the
board shall first, by a two-thirds vote, approve by resolution and
have on file a report on the engineering and economic feasibility
relating to the project contemplated for the expenditure of the
borrowed money or conditional sales contract. The feasibility
report shall be prepared and signed by an engineer or engineers
licensed and registered under the laws of the state.

(4) The district shall budget, levy, and collect taxes and pay for
all indebtedness without limitation by any other provision of this
part.

(b) Subdivision (a) does not apply to any money borrowed from
any agency or department of the United States government or of
the state.

begin delete SEC. 245. end delete
begin insert SEC. 245. end insert   

Section 442.5 of the Health and Safety Code is
amended to read:

442.5.  

(a) When a health care provider makes a diagnosis that
a patient has a terminal illness, the health care provider shall do
both of the following:

(1) Notify the patient of his or her right, or, when applicable,
the right of another person authorized to make health care decisions
for the patient, to comprehensive information and counseling
regarding legal end-of-life options. This notification may be
provided at the time of diagnosis or at a subsequent visit in which
the provider discusses treatment options with the patient or the
other authorized person.

(2) Upon the request of the patient or another person authorized
to make health care decisions for the patient, provide the patient
or other authorized person with comprehensive information and
counseling regarding legal end-of-life care options pursuant to this
section. When a terminally ill patient is in a health facility, as
defined in Section 1250, the health care provider, or medical
director of the health facility if the patient’s health care provider
is not available, may refer the patient or other authorized person
to a hospice provider or private or public agencies and
community-based organizations that specialize in end-of-life care
case management and consultation to receive comprehensive
information and counseling regarding legal end-of-life care options.

(b) If a patient or another person authorized to make health care
decisions for the patient, requests information and counseling
pursuant to paragraph (2) of subdivision (a), the comprehensive
information shall include, but not be limited to, the following:

(1) Hospice care at home or in a health care setting.

(2) A prognosis with and without the continuation of
disease-targeted treatment.

(3) The patient’s right to refusal of or withdrawal from
life-sustaining treatment.

(4) The patient’s right to continue to pursue disease-targeted
treatment, with or without concurrent palliative care.

(5) The patient’s right to comprehensive pain and symptom
management at the end of life, including, but not limited to,
adequate pain medication, treatment of nausea, palliative
chemotherapy, relief of shortness of breath and fatigue, and other
clinical treatments useful when a patient is actively dying.

(6) The patient’s right to give individual health care instruction
pursuant to Section 4670 of the Probate Code, which provides the
means by which a patient may provide written health care
instruction, such as an advance health care directive, and the
patient’s right to appoint a legally recognized health care
decisionmaker.

(c) The information described in subdivision (b) may, but is not
required to, be in writing. Health care providers may utilize
information from organizations specializing in end-of-life care
that provide information on factsheets and Internet Web sites to
convey the information described in subdivision (b).

(d) Counseling may include, but is not limited to, discussions
about the outcomes for the patient and his or her family, based on
the interest of the patient. Information and counseling, as described
in subdivision (b), may occur over a series of meetings with the
health care provider or others who may be providing the
information and counseling based on the patient’s needs.

(e) The information and counseling sessions may include a
discussion of treatment options in a culturally sensitive manner
that the patient and his or her family, or, when applicable, another
person authorized to make health care decisions for the patient,
can easily understand. If the patient or other authorized person
requests information on the costs of treatment options, including
the availability of insurance and eligibility of the patient for
coverage, the patient or other authorized person shall be referred
to the appropriate entity for that information.

(f) The notification made pursuant to paragraph (1) of
subdivision (a) shall not be required if the patient or other person
authorized to make health care decisions, as defined in Section
4617 of the Probate Code, for the patient has already received the
notification.

(g) For purposes of this section, “health care decisions” has the
meaning set begin delete fourth end delete begin insert forth end insert in Section 4617 of the Probate Code.

(h) This section shall not be construed to interfere with the
clinical judgment of a health care provider in recommending the
course of treatment.

begin insert

begin insert SEC. 246. end insert   

end insert

begin insert Section 1255 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

1255.  

(a) In addition to the basic services offered under the
license, a general acute care hospital may be approved in
accordance with subdivision (c) of Section 1277 to offer special
services, including, but not limited to, the following:

(1) Radiation therapy department.

(2) Burn center.

(3) Emergency center.

(4) Hemodialysis center (or unit).

(5) Psychiatric.

(6) Intensive care newborn nursery.

(7) Cardiac surgery.

(8) Cardiac catheterization laboratory.

(9) Renal transplant.

(10) Other special services as the department may prescribe by
regulation.

(b) A general acute care hospital that exclusively provides acute
medical rehabilitation center services may be approved in
accordance with subdivision (b) of Section 1277 to offer special
services not requiring surgical facilities.

(c) The department shall adopt standards for special services
and other regulations as may be necessary to implement this
section.

(d) (1) For cardiac catheterization laboratory service, the
department shall, at a minimum, adopt standards and regulations
that specify that only diagnostic services, and what diagnostic
services, may be offered by a general acute care hospital or a
multispecialty clinic as defined in subdivision (l) of Section 1206
that is approved to provide cardiac catheterization laboratory
service but is not also approved to provide cardiac surgery service,
together with the conditions under which the cardiac catheterization
laboratory service may be offered.

(2) Except as provided in paragraph (3), a cardiac catheterization
laboratory service shall be located in a general acute care hospital
that is either licensed to perform cardiovascular procedures
requiring extracorporeal coronary artery bypass that meets all of
the applicable licensing requirements relating to staff, equipment,
and space for service, or shall, at a minimum, have a licensed
intensive care service and coronary care service and maintain a
written agreement for the transfer of patients to a general acute
care hospital that is licensed for cardiac surgery or shall be located
in a multispecialty clinic as defined in subdivision (l) of Section
1206. The transfer agreement shall include protocols that will
minimize the need for duplicative cardiac catheterizations at the
hospital in which the cardiac surgery is to be performed.

(3) Commencing March 1, 2013, a general acute care hospital
that has applied for program flexibility on or before July 1, 2012,
to expand cardiac catheterization laboratory services may utilize
cardiac catheterization space that is in conformance with applicable
building code standards, including those promulgated by the Office
of Statewide Health Planning and Development, provided that all
of the following conditions are met:

(A) The expanded laboratory space is located in the building
so that the space is connected to the general acute care hospital by
an enclosed all-weather passageway that is accessible by staff and
patients who are accompanied by staff.

(B) The service performs cardiac catheterization services on no
more than 25 percent of the hospital’s inpatients who need cardiac
catheterizations.

(C) The service complies with the same policies and procedures
approved by hospital medical staff for cardiac catheterization
laboratories that are located within the general acute care hospital,
and the same standards and regulations prescribed by the
department for cardiac catheterization laboratories located inside
general acute care hospitals, including, but not limited to,
appropriate nurse-to-patient ratios under Section 1276.4, and with
all standards and regulations prescribed by the Office of Statewide
Health Planning and Development. Emergency regulations
allowing a general acute care hospital to operate a cardiac
catheterization laboratory service shall be adopted by the
department and by the Office of Statewide Health Planning and
Development by February 28, 2013.

(D) Emergency regulations implementing this paragraph have
been adopted by the department and by the Office of Statewide
Health Planning and Development by February 28, 2013.

(E) This paragraph shall not apply to more than two general
acute care hospitals.

(4) After March 1, 2014, an acute care hospital may only operate
a cardiac catheterization laboratory service pursuant to paragraph
(3) if the department and the Office of Statewide Health Planning
and Development have adopted regulations in accordance with the
requirements of Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code that provide
adequate protection to patient health and safety including, but not
limited to, building standards contained in Part 2.5 (commencing
with Section 18901) of Division 13.

(5) Notwithstanding Section 129885, cardiac catheterization
laboratory services expanded in accordance with paragraph (3)
shall be subject to all applicable building standards. The Office of
Statewide Health Planning and Development shall review the
services for compliance with the OSHPD 3 requirements of the
most recent version of the California Building Standards Code.

(e) For purposes of this section, “multispecialty clinic,” as
defined in subdivision (l) of Section 1206, includes an entity in
which the multispecialty clinic holds at least a 50-percent general
partner interest and maintains responsibility for the management
of the service, if all of the following requirements are met:

(1) The multispecialty clinic existed as of March 1, 1983.

(2) Prior to March 1, 1985, the multispecialty clinic did not
offer cardiac catheterization services, dynamic multiplane imaging,
or other types of coronary or similar angiography.

(3) The multispecialty clinic creates only one entity that operates
its service at one site.

(4) These entities shall have the equipment and procedures
necessary for the stabilization of patients in emergency situations
prior to transfer and patient transfer arrangements in emergency
situations that shall be in accordance with the standards established
by the Emergency Medical Services Authority, including the
availability of comprehensive care and the qualifications of any
general acute care hospital expected to provide emergency
treatment.

(f) Except as provided in this section and in Sections begin delete 128525
and 128530, end delete begin insert 100921 and 100922, end insert under no circumstances shall
cardiac catheterizations be performed outside of a general acute
care hospital or a multispecialty clinic, as defined in subdivision
(l) of Section 1206, that qualifies for this definition as of March
1, 1983.

begin delete SEC. 246. end delete
begin insert SEC. 247. end insert   

Section 1317.5 of the Health and Safety Code, as
amended by Section 92 of Chapter 886 of the Statutes of 1989, is
repealed.

begin delete SEC. 247. end delete
begin insert SEC. 248. end insert   

Section 1339.9 of the Health and Safety Code, as
added by Section 1 of Chapter 716 of the Statutes of 1998, is
amended and renumbered to read:

1339.10.  

(a)  The department may request and maintain
employment information for nurse assistants and direct care staff
of intermediate care facilities/developmentally disabled, other than
state-operated intermediate care facilities/developmentally disabled
that secure criminal record clearances for employees through
another method, intermediate care facilities/developmentally
disabled-habilitative, or intermediate care
facilities/developmentally disabled-nursing.

(b)  Within five working days of receipt of a criminal record or
information from the Department of Justice pursuant to Section
1338.5, the department shall notify the licensee and applicant of
any criminal convictions.

(c)  The department shall conduct a feasibility study to assess
the additional technology requirements necessary to include
previous and current employment information on its registry and
to make that information available to potential employers. The
department shall report to the Legislature by July 1, 2000, as to
the results of the study.

begin delete SEC. 248. end delete
begin insert SEC. 249. end insert   

Section 1347.5 of the Health and Safety Code is
amended to read:

1347.5.  

(a) A health care service plan providing individual
coverage in the Exchange shall cooperate with requests from the
Exchange to collaborate in the development of, and participate in
the implementation of, the Medi-Cal program’s premium and
cost-sharing payments under Sections 14102 and 14148.65 of the
Welfare and Institutions Code for eligible Exchange enrollees.

(b) A health care service plan providing individual coverage in
the Exchange shall not charge, bill, ask, or require an enrollee
receiving benefits under Section 14102 or 14148.65 of the Welfare
and Institutions Code to make any premium or cost-sharing
payments for any services that are subject to premium or
cost-sharing payments by the State Department of Health Care
Services under Section 14102 or 14148.65 of the Welfare and
Institutions Code.

(c) For purposes of this section, “Exchange” means the
California Health Benefit Exchange established pursuant to Title
22 (commencing with Section 100500) of the Government Code.

begin delete SEC. 249. end delete
begin insert SEC. 250. end insert   

Section 1357.504 of the Health and Safety Code is
amended to read:

1357.504.  

(a) With respect to small employer health care
service plan contracts offered outside the Exchange, after a small
employer submits a completed application form for a plan contract,
the health care service plan shall, within 30 days, notify the
employer of the employer’s actual premium charges for that plan
contract established in accordance with Section 1357.512. The
employer shall have 30 days in which to exercise the right to buy
coverage at the quoted premium charges.

(b) Except as provided in subdivision (c), when a small employer
submits a premium payment, based on the quoted premium charges,
and that payment is delivered or postmarked, whichever occurs
earlier, within the first 15 days of the month, coverage under the
plan contract shall become effective no later than the first day of
the following month. When that payment is neither delivered nor
postmarked until after the 15th day of a month, coverage shall
become effective no later than the first day of the second month
following delivery or postmark of the payment.

(c) (1) With respect to a small employer health care service
plan contract offered through the Exchange, a plan shall apply
coverage effective dates consistent with those required under
Section 155.720 of Title 45 of the Code of Federal Regulations
and of subdivision (e) of Section 1399.849.

(2) With respect to a small employer health care service plan
contract offered outside the Exchange for which an individual
applies during a special enrollment period described in subdivision
(b) of Section 1357.503, the following provisions shall apply:

(A) Coverage under the plan contract shall become effective no
later than the first day of the first calendar month beginning after
the date the plan receives the request for special enrollment.

(B) Notwithstanding subparagraph (A), in the case of a birth,
adoption, or placement for adoption, coverage under the plan
contract shall become effective on the date of birth, adoption, or
placement for adoption.

(d) During the first 30 days after the effective date of the plan
contract, the small employer shall have the option of changing
coverage to a different plan contract offered by the same health
care service plan. If a small employer notifies the plan of the
change within the first 15 days of a month, coverage under the
new plan contract shall become effective no later than the first day
of the following month. If a small employer notifies the plan of
the change after the 15th day of a month, coverage under the new
plan contract shall become effective no later than the first day of
the second month following notification.

(e) All eligible employees and dependents listed on a small
employer’s completed application shall be covered on the effective
date of the health benefit plan.

begin delete SEC. 250. end delete
begin insert SEC. 251. end insert   

Section 1358.18 of the Health and Safety Code is
amended to read:

1358.18.  

In the interest of full and fair disclosure, and to ensure
the availability of necessary consumer information to potential
subscribers or enrollees not possessing a special knowledge of
Medicare, health care service plans, or Medicare supplement
contracts, an issuer shall comply with the following provisions:

(a) Application forms shall include the following questions
designed to elicit information as to whether, as of the date of the
application, the applicant currently has Medicare supplement,
Medicare Advantage, Medi-Cal coverage, or another health
insurance policy or certificate or plan contract in force or whether
a Medicare supplement contract is intended to replace any other
disability policy or certificate, or plan contract, presently in force.
A supplementary application or other form to be signed by the
applicant and solicitor containing those questions and statements
may be used.

“(Statements)

(1) You do not need more than one Medicare supplement policy
or contract.

(2) If you purchase this contract, you may want to evaluate your
existing health coverage and decide if you need multiple coverages.

(3) You may be eligible for benefits under Medi-Cal or Medicaid
and may not need a Medicare supplement contract.

(4) If, after purchasing this contract, you become eligible for
Medi-Cal, the benefits and premiums under your Medicare
supplement contract can be suspended, if requested, during your
entitlement to benefits under Medi-Cal or Medicaid for 24 months.
You must request this suspension within 90 days of becoming
eligible for Medi-Cal or Medicaid. If you are no longer entitled to
Medi-Cal or Medicaid, your suspended Medicare supplement
contract or, if that is no longer available, a substantially equivalent
contract, will be reinstituted if requested within 90 days of losing
Medi-Cal or Medicaid eligibility. If the Medicare supplement
contract provided coverage for outpatient prescription drugs and
you enrolled in Medicare Part D while your contract was
suspended, the reinstituted contract will not have outpatient
prescription drug coverage, but will otherwise be substantially
equivalent to your coverage before the date of the suspension.

(5) If you are eligible for, and have enrolled in, a Medicare
supplement contract by reason of disability and you later become
covered by an employer or union-based group health plan, the
benefits and premiums under your Medicare supplement contract
can be suspended, if requested, while you are covered under the
employer or union-based group health plan. If you suspend your
Medicare supplement contract under these circumstances and later
lose your employer or union-based group health plan, your
suspended Medicare supplement contract or, if that is no longer
available, a substantially equivalent contract, will be reinstituted
if requested within 90 days of losing your employer or union-based
group health plan. If the Medicare supplement contract provided
coverage for outpatient prescription drugs and you enrolled in
Medicare Part D while your contract was suspended, the
reinstituted contract will not have outpatient prescription drug
coverage, but will otherwise be substantially equivalent to your
coverage before the date of the suspension.

(6) Counseling services are available in this state to provide
advice concerning your purchase of Medicare supplement coverage
and concerning medical assistance through the Medi-Cal or
Medicaid Program, including benefits as a qualified Medicare
beneficiary (QMB) and a specified low-income Medicare
beneficiary (SLMB). Information regarding counseling services
may be obtained from the California Department of Aging.

(Questions)

If you lost or are losing other health insurance coverage and
received a notice from your prior insurer saying you were eligible
for guaranteed issue of a Medicare supplement insurance contract
or that you had certain rights to buy such a contract, you may be
guaranteed acceptance in one or more of our Medicare supplement
plans. Please include a copy of the notice from your prior insurer
with your application. PLEASE ANSWER ALL QUESTIONS.

[Please mark Yes or No below with an “X.”]

To the best of your knowledge,

(1) (a) Did you turn 65 years of age in the last 6 months

Yes____ No____

(b) Did you enroll in Medicare Part B in the last 6 months

Yes____ No____

(c) If yes, what is the effective date  ___________________

(2) Are you covered for medical assistance through California’s
Medi-Cal program

NOTE TO APPLICANT: If you have a share of cost under the
Medi-Cal program, please answer NO to this question.

Yes____ No____

If yes,

(a) Will Medi-Cal pay your premiums for this Medicare
supplement contract

Yes____ No____

(b) Do you receive benefits from Medi-Cal OTHER THAN
payments toward your Medicare Part B premium

Yes____ No____

(3) (a) If you had coverage from any Medicare plan other than
original Medicare within the past 63 days (for example, a Medicare
Advantage plan or a Medicare HMO or PPO), fill in your start and
end dates below. If you are still covered under this plan, leave
“END” blank.

START __/__/__ END __/__/__

(b) If you are still covered under the Medicare plan, do you
intend to replace your current coverage with this new Medicare
supplement contract

Yes____ No____

(c) Was this your first time in this type of Medicare plan

Yes____ No____

(d) Did you drop a Medicare supplement contract to enroll in
the Medicare plan

Yes____ No____

(4) (a) Do you have another Medicare supplement policy or
certificate or contract in force

Yes____ No____

(b) If so, with what company, and what plan do you have
[optional for Direct Mailers]

Yes____ No____

(c) If so, do you intend to replace your current Medicare
supplement policy or certificate or contract with this contract

Yes____ No____

(5) Have you had coverage under any other health insurance
within the past 63 days (For example, an employer, union, or
individual plan)

Yes____ No____

(a) If so, with what companies and what kind of policy

________________________________________________

________________________________________________

________________________________________________

________________________________________________

(b) What are your dates of coverage under the other policy

START __/__/__ END __/__/__

(If you are still covered under the other policy, leave “END”
blank).”

(b) Solicitors shall list any other health insurance policies or
plan contracts they have sold to the applicant as follows:

(1) List policies and contracts sold that are still in force.

(2) List policies and contracts sold in the past five years that
are no longer in force.

(c) An issuer issuing Medicare supplement contracts without a
solicitor or solicitor firm (a direct response issuer) shall return to
the applicant, upon delivery of the contract, a copy of the
application or supplemental forms, signed by the applicant and
acknowledged by the issuer.

(d) Upon determining that a sale will involve replacement of
Medicare supplement coverage, an issuer, other than a direct
response issuer, or its agent, shall furnish the applicant, prior to
issuance for delivery of the Medicare supplement contract, a notice
regarding replacement of Medicare supplement coverage. One
copy of the notice signed by the applicant and the agent, except
where the coverage is sold without an agent, shall be provided to
the applicant and an additional signed copy shall be retained by
the issuer. A direct response issuer shall deliver to the applicant
at the time of the issuance of the contract the notice regarding
replacement of Medicare supplement coverage.

(e) The notice required by subdivision (d) for an issuer shall be
provided in substantially the following form in no less than
12-point type:

NOTICE TO APPLICANT REGARDING REPLACEMENT
OF MEDICARE SUPPLEMENT COVERAGE OR MEDICARE
ADVANTAGE

(Company name and address)

SAVE THIS NOTICE! IT MAY BE IMPORTANT TO YOU IN
THE FUTURE

According to [your application] [information you have
furnished], you intend to lapse or otherwise terminate an existing
Medicare supplement policy or contract or Medicare Advantage
plan and replace it with a contract to be issued by [Plan Name].
Your contract to be issued by [Plan Name] will provide 30 days
within which you may decide without cost whether you desire to
keep the contract. You should review this new coverage carefully.
Compare it with all accident and sickness coverage you now have.
Terminate your present policy or contract only if, after due
consideration, you find that purchase of this Medicare supplement
coverage is a wise decision.

STATEMENT TO APPLICANT BY PLAN, SOLICITOR,
SOLICITOR FIRM, OR OTHER REPRESENTATIVE:

(1) I have reviewed your current medical or health coverage.
To the best of my knowledge, the replacement of coverage involved
in this transaction does not duplicate coverage or, if applicable,
Medicare Advantage coverage because you intend to terminate
your existing Medicare supplement coverage or leave your
Medicare Advantage plan. The replacement contract is being
purchased for the following reason (check one):

__ Additional benefits.

__ No change in benefits, but lower premiums or charges.

__ Fewer benefits and lower premiums or charges.

__ Plan has outpatient prescription drug coverage and applicant
is enrolled in Medicare Part D.

__ Disenrollment from a Medicare Advantage plan. Reasons for
disenrollment:

__ Other. (please specify) ________.

(2) If the issuer of the Medicare supplement contract being
applied for does not impose, or is otherwise prohibited from
imposing, preexisting condition limitations, please skip to statement
3 below. Health conditions that you may presently have
(preexisting conditions) may not be immediately or fully covered
under the new contract. This could result in denial or delay of a
claim for benefits under the new contract, whereas a similar claim
might have been payable under your present contract.

(3) State law provides that your replacement Medicare
supplement contract may not contain new preexisting conditions,
waiting periods, elimination periods, or probationary periods. The
plan will waive any time periods applicable to preexisting
conditions, waiting periods, elimination periods, or probationary
periods in the new coverage for similar benefits to the extent that
time was spent (depleted) under the original contract.

(4) If you still wish to terminate your present policy or contract
and replace it with new coverage, be certain to truthfully and
completely answer any and all questions on the application
concerning your medical and health history. Failure to include all
material medical information on an application requesting that
information may provide a basis for the plan to deny any future
claims and to refund your prepaid or periodic payment as though
your contract had never been in force. After the application has
been completed and before you sign it, review it carefully to be
certain that all information has been properly recorded.

(5) Do not cancel your present Medicare supplement coverage
until you have received your new contract and are sure you want
to keep it.

 

(Signature of Solicitor, Solicitor Firm, or Other Representative) [Typed Name and Address of Plan, Solicitor, or Solicitor Firm]

(Applicant’s Signature)

(Date)

 

 

(f) The application form or other consumer information for
persons eligible for Medicare and used by an issuer shall contain,
as an attachment, a Medicare supplement buyer’s guide in the form
approved by the director. The application or other consumer
information, containing, as an attachment, the buyer’s guide, shall
be mailed or delivered to each applicant applying for that coverage
at or before the time of application and, to establish compliance
with this subdivision, the issuer shall obtain an acknowledgment
of receipt of the attached buyer’s guide from each applicant. No
issuer shall make use of or otherwise disseminate any buyer’s
guide that does not accurately outline current Medicare supplement
benefits. No issuer shall be required to provide more than one copy
of the buyer’s guide to any applicant.

(g) An issuer may comply with the requirement of this section
in the case of group contracts by causing the subscriber (1) to
disseminate copies of the disclosure form containing as an
attachment the buyer’s guide to all persons eligible under the group
contract at the time those persons are offered the Medicare
supplement plan, and (2) collecting and forwarding to the issuer
an acknowledgment of receipt of the disclosure form containing,
as an attachment, the buyer’s guide from each enrollee.

(h) An issuer shall not require, request, or obtain health
information as part of the application process for an applicant who
is eligible for guaranteed issuance of, or open enrollment for, any
Medicare supplement coverage pursuant to Section 1358.11 or
1358.12, except for purposes of paragraph (1) or (2) of subdivision
(a) of Section 1358.11 when the applicant is first enrolled in
Medicare Part B. The application form shall include a clear and
conspicuous statement that the applicant is not required to provide
health information during a period where guaranteed issue or open
enrollment applies, as specified in Section 1358.11 or 1358.12,
except for purposes of paragraph (1) or (2) of subdivision (a) of
Section 1358.11 when the applicant is first enrolled in Medicare
Part B, and shall inform the applicant of those periods of
guaranteed issuance of Medicare supplement coverage. This
subdivision does not prohibit an issuer from requiring proof of
eligibility for a guaranteed issuance of Medicare supplement
coverage.

begin delete SEC. 251. end delete
begin insert SEC. 252. end insert   

Section 1367.004 of the Health and Safety Code is
amended to read:

1367.004.  

(a) A health care service plan that issues, sells,
renews, or offers a specialized health care service plan contract
covering dental services shall, no later than September 30, 2015,
and each year thereafter, file a report, which shall be known as the
MLR annual report, with the department that is organized by
market and product type and contains the same information
required in the 2013 federal Medical Loss Ratio (MLR) Annual
Reporting Form (CMS-10418).

(b) The MLR reporting year shall be for the calendar year during
which dental coverage is provided by the plan. All terms used in
the MLR annual report shall have the same meaning as used in the
federal Public Health Service Act (42 U.S.C. Sec. 300gg-18), Part
158 (commencing with Section 158.101) of Title 45 of the Code
of Federal Regulations, and Section 1367.003.

(c) If the director decides to conduct a financial examination,
as described in Section 1382, because the director finds it necessary
to verify the health care service plan’s representations in the MLR
annual report, the department shall provide the health care service
plan with a notification 30 days before the commencement of the
financial examination.

(d) The health care service plan shall have 30 days from the
date of notification to electronically submit to the department all
requested records, books, and papers specified in subdivision (a)
of Section 1381. The director may extend the time for a health
care service plan to comply with this subdivision upon a finding
of good cause.

(e) The department shall make available to the public all of the
data provided to the department pursuant to this section.

(f) This section does not apply to a health care service plan
contract issued, sold, renewed, or offered for health care services
or coverage provided in the Medi-Cal program (Chapter 7
(commencing with Section 14000) of Part 3 of Division 9 of the
Welfare and Institutions Code), the Healthy Families Program
(Part 6.2 (commencing with Section 12693) of Division 2 of the
Insurance Code), the Access for Infants and Mothers Program
(Part 6.3 (commencing with Section 12695) of Division 2 of the
Insurance Code), the California Major Risk Medical Insurance
Program (Part 6.5 (commencing with Section 12700) of Division
2 of the Insurance Code), or the Federal Temporary High Risk
Insurance Pool (Part 6.6 (commencing with Section 12739.5) of
Division 2 of the Insurance Code), to the extent consistent with
the federal Patient Protection and Affordable Care Act (Public
Law 111-148).

(g) It is the intent of the Legislature that the data reported
pursuant to this section be considered by the Legislature in adopting
a medical loss ratio standard for health care service plans that cover
dental services that would take effect no later than January 1, 2018.

(h) Until January 1, 2018, the director may issue guidance to
health care service plans subject to this section regarding
compliance with this section. This guidance shall not be subject
to the Administrative Procedure Act (Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code). Any guidance issued pursuant to this
subdivision shall be effective only until the director adopts
regulations pursuant to the Administrative Procedure Act. The
department shall consult with the Department of Insurance in
issuing guidance pursuant to this subdivision.

begin delete SEC. 252. end delete
begin insert SEC. 253. end insert   

Section 1367.035 of the Health and Safety Code is
amended to read:

1367.035.  

(a) As part of the reports submitted to the
department pursuant to subdivision (f) of Section 1367.03 and
regulations adopted pursuant to that section, a health care service
plan shall submit to the department, in a manner specified by the
department, data regarding network adequacy, including, but not
limited to, the following:

(1) Provider office location.

(2) Area of specialty.

(3) Hospitals where providers have admitting privileges, if any.

(4) Providers with open practices.

(5) The number of patients assigned to a primary care provider
or, for providers who do not have assigned enrollees, information
that demonstrates the capacity of primary care providers to be
accessible and available to enrollees.

(6) Grievances regarding network adequacy and timely access
that the health care service plan received during the preceding
calendar year.

(b) A health care service plan that uses a network for its
Medi-Cal managed care product line that is different from the
network used for its other product lines shall submit the data
required under subdivision (a) for its Medi-Cal managed care
product line separately from the data submitted for its other product
lines.

(c) A health care service plan that uses a network for its
individual market product line that is different from the network
used for its small group market product line shall submit the data
required under subdivision (a) for its individual market product
line separate from the data submitted for its small group market
product line.

(d) The department shall review the data submitted pursuant to
this section for compliance with this chapter.

(e) In submitting data under this section, a health care service
plan that provides services to Medi-Cal beneficiaries pursuant to
Chapter 7 (commencing with Section 14000) or Chapter 8
(commencing with Section 14200) of Part 3 of Division 9 of the
Welfare and Institutions Code shall provide the same data to the
State Department of Health Care Services pursuant to Section
14456.3 of the Welfare and Institutions Code.

(f) In developing the format and requirements for reports, data,
or other information provided by plans pursuant to subdivision
(a), the department shall not create duplicate reporting
requirements, but, instead, shall take into consideration all existing
relevant reports, data, or other information provided by plans to
the department. This subdivision does not limit the authority of
the department to request additional information from the plan as
deemed necessary to carry out and complete any enforcement
action initiated under this chapter.

(g) If the department requests additional information or data to
be reported pursuant to subdivision (a), which is different or in
addition to the information required to be reported in paragraphs
(1) to (6), inclusive, of subdivision (a), the department shall provide
health care service plans notice of that change by November 1 of
the year prior to the change.

(h) A health care service plan may include in the provider
contract provisions requiring compliance with the reporting
requirements of Section 1367.03 and this section.

begin delete SEC. 253. end delete
begin insert SEC. 254. end insert   

Section 1367.20 of the Health and Safety Code, as
added by Section 2 of Chapter 68 of the Statutes of 1998, is
repealed.

begin delete SEC. 254. end delete
begin insert SEC. 255. end insert   

Section 1367.25 of the Health and Safety Code is
amended to read:

1367.25.  

(a)  A group health care service plan contract, except
for a specialized health care service plan contract, that is issued,
amended, renewed, or delivered on or after January 1, 2000,
through December 31, 2015, inclusive, and an individual health
care service plan contract that is amended, renewed, or delivered
on or after January 1, 2000, through December 31, 2015, inclusive,
except for a specialized health care service plan contract, shall
provide coverage for the following, under general terms and
conditions applicable to all benefits:

(1)  A health care service plan contract that provides coverage
for outpatient prescription drug benefits shall include coverage for
a variety of federal Food and Drug Administration (FDA)-approved
prescription contraceptive methods designated by the plan. In the
event the patient’s participating provider, acting within his or her
scope of practice, determines that none of the methods designated
by the plan is medically appropriate for the patient’s medical or
personal history, the plan shall also provide coverage for another
FDA-approved, medically appropriate prescription contraceptive
method prescribed by the patient’s provider.

(2)  Benefits for an enrollee under this subdivision shall be the
same for an enrollee’s covered spouse and covered nonspouse
dependents.

(b) (1) A health care service plan contract, except for a
specialized health care service plan contract, that is issued,
amended, renewed, or delivered on or after January 1, 2016, shall
provide coverage for all of the following services and contraceptive
methods for women:

(A) Except as provided in subparagraphs (B) and (C) of
paragraph (2), all FDA-approved contraceptive drugs, devices,
and other products for women, including all FDA-approved
contraceptive drugs, devices, and products available over the
counter, as prescribed by the enrollee’s provider.

(B) Voluntary sterilization procedures.

(C) Patient education and counseling on contraception.

(D) Followup services related to the drugs, devices, products,
and procedures covered under this subdivision, including, but not
limited to, management of side effects, counseling for continued
adherence, and device insertion and removal.

(2) (A) Except for a grandfathered health plan, a health care
service plan subject to this subdivision shall not impose a
deductible, coinsurance, copayment, or any other cost-sharing
requirement on the coverage provided pursuant to this subdivision.
Cost sharing shall not be imposed on any Medi-Cal beneficiary.

(B) If the FDA has approved one or more therapeutic equivalents
of a contraceptive drug, device, or product, a health care service
plan is not required to cover all of those therapeutically equivalent
versions in accordance with this subdivision, as long as at least
one is covered without cost sharing in accordance with this
subdivision.

(C) If a covered therapeutic equivalent of a drug, device, or
product is not available, or is deemed medically inadvisable by
the enrollee’s provider, a health care service plan shall provide
coverage, subject to a plan’s utilization management procedures,
for the prescribed contraceptive drug, device, or product without
cost sharing. Any request by a contracting provider shall be
responded to by the health care service plan in compliance with
the Knox-Keene Health Care Service Plan Act of 1975, as set forth
in this chapter and, as applicable, with the plan’s Medi-Cal
managed care contract.

(3) Except as otherwise authorized under this section, a health
care service plan shall not impose any restrictions or delays on the
coverage required under this subdivision.

(4) Benefits for an enrollee under this subdivision shall be the
same for an enrollee’s covered spouse and covered nonspouse
dependents.

(5) For purposes of paragraphs (2) and (3) of this subdivision,
“health care service plan” shall include Medi-Cal managed care
plans that contract with the State Department of Health Care
Services pursuant to Chapter 7 (commencing with Section 14000)
and Chapter 8 (commencing with Section 14200) of Part 3 of
Division 9 of the Welfare and Institutions Code.

(c) Notwithstanding any other provision of this section, a
religious employer may request a health care service plan contract
without coverage for FDA-approved contraceptive methods that
are contrary to the religious employer’s religious tenets. If so
requested, a health care service plan contract shall be provided
without coverage for contraceptive methods.

(1)  For purposes of this section, a “religious employer” is an
entity for which each of the following is true:

(A)  The inculcation of religious values is the purpose of the
entity.

(B)  The entity primarily employs persons who share the
religious tenets of the entity.

(C)  The entity serves primarily persons who share the religious
tenets of the entity.

(D)  The entity is a nonprofit organization as described in
Section 6033(a)(3)(A)(i) or (iii) of the Internal Revenue Code of
1986, as amended.

(2)  Every religious employer that invokes the exemption
provided under this section shall provide written notice to
prospective enrollees prior to enrollment with the plan, listing the
contraceptive health care services the employer refuses to cover
for religious reasons.

(d) This section shall not be construed to exclude coverage for
contraceptive supplies as prescribed by a provider, acting within
his or her scope of practice, for reasons other than contraceptive
purposes, such as decreasing the risk of ovarian cancer or
eliminating symptoms of menopause, or for contraception that is
necessary to preserve the life or health of an enrollee.

(e) This section shall not be construed to deny or restrict in any
way the department’s authority to ensure plan compliance with
this chapter when a plan provides coverage for contraceptive drugs,
devices, and products.

(f) This section shall not be construed to require an individual
or group health care service plan contract to cover experimental
or investigational treatments.

(g) For purposes of this section, the following definitions apply:

(1) “Grandfathered health plan” has the meaning set forth in
Section 1251 of PPACA.

(2) “PPACA” means the federal Patient Protection and
Affordable Care Act (Public Law 111-148), as amended by the
federal Health Care and Education Reconciliation Act of 2010
(Public Law 111-152), and any rules, regulations, or guidance
issued thereunder.

(3) With respect to health care service plan contracts issued,
amended, or renewed on or after January 1, 2016, “provider” means
an individual who is certified or licensed pursuant to Division 2
(commencing with Section 500) of the Business and Professions
Code, or an initiative act referred to in that division, or Division
2.5 (commencing with Section 1797) of this code.

begin delete SEC. 255. end delete
begin insert SEC. 256. end insert   

Section 1368.05 of the Health and Safety Code is
amended to read:

1368.05.  

(a) (1) By enacting this section, which was originally
enacted by Assembly Bill 922 (Chapter 552 of the Statutes of
2011), the Legislature recognizes that, because of the enactment
of federal health care reform on March 23, 2010, and the
implementation of various provisions by January 1, 2014, and the
ongoing complexities of health care reform, it is appropriate to
transfer the direct consumer assistance activities that were newly
conferred on the Office of Patient Advocate to the Department of
Managed Health Care, and the Legislature recognizes that these
new duties are necessary to be carried out by the department in
partnership with community-based consumer assistance
organizations for the purposes of serving California’s health care
consumers.

(2) In addition to maintaining the toll-free telephone number
for the purpose of receiving complaints regarding health care
service plans as required in Section 1368.02, the department and
its contractors shall carry out these new responsibilities, which
include assisting consumers in navigating private and public health
care coverage and assisting consumers in determining the regulator
that regulates the health care coverage of a particular consumer.
In order to further assist in implementing health care reform, the
department and its contractors shall also receive and respond to
inquiries, complaints, and requests for assistance and education
concerning health care coverage available in California.

(b) (1) The department shall annually contract with
community-based organizations in furtherance of providing
assistance to consumers as described in subdivision (a), as
authorized by and in accordance with Section 19130 of the
Government Code.

(2) These organizations shall be community-based nonprofit
consumer assistance programs that shall include in their mission
the assistance of, and duty to, health care consumers.

(3) Contracting consumer assistance organizations shall have
experience in assisting consumers in navigating the local health
care system, advising consumers regarding their health care
coverage options, assisting consumers with problems in accessing
health care services, and serving consumers with special needs,
including, but not limited to, consumers with limited-English
language proficiency, consumers requiring culturally competent
services, low-income consumers, consumers with disabilities,
consumers with low literacy rates, and consumers with multiple
health conditions, including behavioral health. The organizations
shall also have experience with, and the capacity for, collecting
and reporting data regarding the consumers they assist, including
demographic data, source of coverage, regulator, type of problem
or issue, and resolution of complaints.

begin delete SEC. 256. end delete
begin insert SEC. 257. end insert   

Section 1371.36 of the Health and Safety Code, as
added by Section 5 of Chapter 825 of the Statutes of 2000, is
repealed.

begin delete SEC. 257. end delete
begin insert SEC. 258. end insert   

Section 1371.37 of the Health and Safety Code, as
added by Section 6 of Chapter 825 of the Statutes of 2000, is
repealed.

begin delete SEC. 258. end delete
begin insert SEC. 259. end insert   

Section 1371.38 of the Health and Safety Code, as
added by Section 7 of Chapter 825 of the Statutes of 2000, is
repealed.

begin delete SEC. 259. end delete
begin insert SEC. 260. end insert   

Section 1371.39 of the Health and Safety Code, as
added by Section 8 of Chapter 825 of the Statutes of 2000, is
repealed.

begin delete SEC. 260. end delete
begin insert SEC. 261. end insert   

Section 1389.4 of the Health and Safety Code, as
amended by Section 9 of Chapter 2 of the First Extraordinary
Session of the Statutes of 2013, is amended to read:

1389.4.  

(a) A full service health care service plan that issues,
renews, or amends individual health plan contracts shall be subject
to this section.

(b) A health care service plan subject to this section shall have
written policies, procedures, or underwriting guidelines establishing
the criteria and process whereby the plan makes its decision to
provide or to deny coverage to individuals applying for coverage
and sets the rate for that coverage. These guidelines, policies, or
procedures shall ensure that the plan rating and underwriting
criteria comply with Sections 1365.5 and 1389.1 and all other
applicable provisions of state and federal law.

(c) On or before June 1, 2006, and annually thereafter, every
health care service plan shall file with the department a general
description of the criteria, policies, procedures, or guidelines the
plan uses for rating and underwriting decisions related to individual
health plan contracts, which means automatic declinable health
conditions, health conditions that may lead to a coverage decline,
height and weight standards, health history, health care utilization,
lifestyle, or behavior that might result in a decline for coverage or
severely limit the plan products for which they would be eligible.
A plan may comply with this section by submitting to the
department underwriting materials or resource guides provided to
plan solicitors or solicitor firms, provided that those materials
include the information required to be submitted by this section.

(d) Commencing January 1, 2011, the director shall post on the
department’s Internet Web site, in a manner accessible and
understandable to consumers, general, noncompany specific
information about rating and underwriting criteria and practices
in the individual market and information about the California Major
Risk Medical Insurance Program (Part 6.5 (commencing with
Section 12700) of Division 2 of the Insurance Code) and the federal
temporary high risk pool established pursuant to Part 6.6
(commencing with Section 12739.5) of Division 2 of the Insurance
Code. The director shall develop the information for the Internet
Web site in consultation with the Department of Insurance to
enhance the consistency of information provided to consumers.
Information about individual health coverage shall also include
the following notification:

“Please examine your options carefully before declining group
coverage or continuation coverage, such as COBRA, that may be
available to you. You should be aware that companies selling
individual health insurance typically require a review of your
medical history that could result in a higher premium or you could
be denied coverage entirely.”

(e) This section does not authorize public disclosure of company
specific rating and underwriting criteria and practices submitted
to the director.

(f) This section does not apply to a closed block of business, as
defined in Section 1367.15.

(g) (1) This section shall become inoperative on November 1,
2013, or the 91st calendar day following the adjournment of the
2013-14 First Extraordinary Session, whichever date is later.

(2) If Section 5000A of the Internal Revenue Code, as added
by Section 1501 of PPACA, is repealed or amended to no longer
apply to the individual market, as defined in Section 2791 of the
federal Public Health Service Act (42 U.S.C. Sec. 300gg-91), this
section shall become operative 12 months after the date of that
repeal or amendment.

begin delete SEC. 261. end delete
begin insert SEC. 262. end insert   

Section 1389.4 of the Health and Safety Code, as
added by Section 10 of Chapter 2 of the First Extraordinary Session
of the Statutes of 2013, is amended to read:

1389.4.  

(a) A full service health care service plan that renews
individual grandfathered health benefit plans shall be subject to
this section.

(b) A health care service plan subject to this section shall have
written policies, procedures, or underwriting guidelines establishing
the criteria and process whereby the plan makes its decision to
provide or to deny coverage to dependents applying for an
individual grandfathered health plan and sets the rate for that
coverage. These guidelines, policies, or procedures shall ensure
that the plan rating and underwriting criteria comply with Sections
1365.5 and 1389.1 and all other applicable provisions of state and
federal law.

(c) On or before the June 1 next following the operative date of
this section, and annually thereafter, every health care service plan
shall file with the department a general description of the criteria,
policies, procedures, or guidelines the plan uses for rating and
underwriting decisions related to individual grandfathered health
plans, which means automatic declinable health conditions, health
conditions that may lead to a coverage decline, height and weight
standards, health history, health care utilization, lifestyle, or
behavior that might result in a decline for coverage or severely
limit the plan products for which they would be eligible. A plan
may comply with this section by submitting to the department
underwriting materials or resource guides provided to plan
solicitors or solicitor firms, provided that those materials include
the information required to be submitted by this section.

(d) This section does not authorize public disclosure of company
specific rating and underwriting criteria and practices submitted
to the director.

(e) For purposes of this section, the following definitions shall
apply:

(1) “PPACA” means the federal Patient Protection and
Affordable Care Act (Public Law 111-148), as amended by the
federal Health Care and Education Reconciliation Act of 2010
(Public Law 111-152), and any rules, regulations, or guidance
issued pursuant to that law.

(2) “Grandfathered health plan” has the same meaning as that
term is defined in Section 1251 of PPACA.

(f) (1) This section shall become operative on November 1,
2013, or the 91st calendar day following the adjournment of the
2013-14 First Extraordinary Session, whichever date is later.

(2) If Section 5000A of the Internal Revenue Code, as added
by Section 1501 of PPACA, is repealed or amended to no longer
apply to the individual market, as defined in Section 2791 of the
federal Public Health Service Act (42 U.S.C. Sec. 300gg-91), this
section shall become inoperative 12 months after the date of that
repeal or amendment.

begin delete SEC. 262. end delete
begin insert SEC. 263. end insert   

Section 1389.5 of the Health and Safety Code is
amended to read:

1389.5.  

(a) This section applies to a health care service plan
that provides coverage under an individual plan contract that is
issued, amended, delivered, or renewed on or after January 1, 2007.

(b) At least once each year, the health care service plan shall
permit an individual who has been covered for at least 18 months
under an individual plan contract to transfer, without medical
underwriting, to any other individual plan contract offered by that
same health care service plan that provides equal or lesser benefits,
as determined by the plan.

“Without medical underwriting” means that the health care
service plan shall not decline to offer coverage to, or deny
enrollment of, the individual or impose any preexisting condition
exclusion on the individual who transfers to another individual
plan contract pursuant to this section.

(c) The plan shall establish, for the purposes of subdivision (b),
a ranking of the individual plan contracts it offers to individual
purchasers and post the ranking on its Internet Web site or make
the ranking available upon request. The plan shall update the
ranking whenever a new benefit design for individual purchasers
is approved.

(d) The plan shall notify in writing all enrollees of the right to
transfer to another individual plan contract pursuant to this section,
at a minimum, when the plan changes the enrollee’s premium rate.
Posting this information on the plan’s Internet Web site shall not
constitute notice for purposes of this subdivision. The notice shall
adequately inform enrollees of the transfer rights provided under
this section, including information on the process to obtain details
about the individual plan contracts available to that enrollee and
advising that the enrollee may be unable to return to his or her
current individual plan contract if the enrollee transfers to another
individual plan contract.

(e) The requirements of this section do not apply to the
following:

(1) A federally eligible defined individual, as defined in
subdivision (c) of Section 1399.801, who is enrolled in an
individual health benefit plan contract offered pursuant to Section
1366.35.

(2) An individual offered conversion coverage pursuant to
Section 1373.6.

(3) Individual coverage under a specialized health care service
plan contract.

(4) An individual enrolled in the Medi-Cal program pursuant
to Chapter 7 (commencing with Section 14000) of Division 9 of
Part 3 of the Welfare and Institutions Code.

(5) An individual enrolled in the Access for Infants and Mothers
Program pursuant to Part 6.3 (commencing with Section 12695)
of Division 2 of the Insurance Code.

(6) An individual enrolled in the Healthy Families Program
pursuant to Part 6.2 (commencing with Section 12693) of Division
2 of the Insurance Code.

(f) It is the intent of the Legislature that individuals shall have
more choice in their health coverage when health care service plans
guarantee the right of an individual to transfer to another product
based on the plan’s own ranking system. The Legislature does not
intend for the department to review or verify the plan’s ranking
for actuarial or other purposes.

(g) (1) This section shall become inoperative January 1, 2014,
or the 91st calendar day following the adjournment of the 2013-14
First Extraordinary Session, whichever date is later.

(2) If Section 5000A of the Internal Revenue Code, as added
by Section 1501 of PPACA, is repealed or amended to no longer
apply to the individual market, as defined in Section 2791 of the
federal Public Health Service Act (42 U.S.C. Sec. 300gg-91), this
section shall become operative 12 months after the date of that
repeal or amendment.

begin delete SEC. 263. end delete
begin insert SEC. 264. end insert   

Section 1389.7 of the Health and Safety Code, as
amended by Section 12 of Chapter 2 of the First Extraordinary
Session of the Statutes of 2013, is amended to read:

1389.7.  

(a) Every health care service plan that offers, issues,
or renews individual plan contracts shall offer to any individual,
who was covered under an individual plan contract that was
rescinded, a new individual plan contract, without medical
underwriting, that provides equal benefits. A health care service
plan may also permit an individual, who was covered under an
individual plan contract that was rescinded, to remain covered
under that individual plan contract, with a revised premium rate
that reflects the number of persons remaining on the plan contract.

(b) “Without medical underwriting” means that the health care
service plan shall not decline to offer coverage to, or deny
enrollment of, the individual or impose any preexisting condition
exclusion on the individual who is issued a new individual plan
contract or remains covered under an individual plan contract
pursuant to this section.

(c) If a new individual plan contract is issued, the plan may
revise the premium rate to reflect only the number of persons
covered on the new individual plan contract.

(d) Notwithstanding subdivisions (a) and (b), if an individual
was subject to a preexisting condition provision or a waiting or an
affiliation period under the individual plan contract that was
rescinded, the health care service plan may apply the same
preexisting condition provision or waiting or affiliation period in
the new individual plan contract. The time period in the new
individual plan contract for the preexisting condition provision or
waiting or affiliation period shall not be longer than the one in the
individual plan contract that was rescinded and the health care
service plan shall credit any time that the individual was covered
under the rescinded individual plan contract.

(e) The plan shall notify in writing all enrollees of the right to
coverage under an individual plan contract pursuant to this section,
at a minimum, when the plan rescinds the individual plan contract.
The notice shall adequately inform enrollees of the right to
coverage provided under this section.

(f) The plan shall provide 60 days for enrollees to accept the
offered new individual plan contract and this contract shall be
effective as of the effective date of the original plan contract and
there shall be no lapse in coverage.

(g) This section does not apply to any individual whose
information in the application for coverage and related
communications led to the rescission.

(h) (1) This section shall become inoperative on January 1,
2014, or the 91st calendar day following the adjournment of the
2013-14 First Extraordinary Session, whichever date is later.

(2) If Section 5000A of the Internal Revenue Code, as added
by Section 1501 of PPACA, is repealed or amended to no longer
apply to the individual market, as defined in Section 2791 of the
federal Public Health Service Act (42 U.S.C. Sec. 300gg-91), this
section shall become operative 12 months after the date of that
repeal or amendment.

begin delete SEC. 264. end delete
begin insert SEC. 265. end insert   

Section 1389.7 of the Health and Safety Code, as
added by Section 13 of Chapter 2 of the First Extraordinary Session
of the Statutes of 2013, is amended to read:

1389.7.  

(a) Every health care service plan that offers, issues,
or renews individual plan contracts shall offer to any individual,
who was covered by the plan under an individual plan contract
that was rescinded, a new individual plan contract that provides
the most equivalent benefits.

(b) A health care service plan that offers, issues, or renews
individual plan contracts inside or outside the California Health
Benefit Exchange may also permit an individual, who was covered
by the plan under an individual plan contract that was rescinded,
to remain covered under that individual plan contract, with a
revised premium rate that reflects the number of persons remaining
on the individual plan contract consistent with Section 1399.855.

(c) The plan shall notify in writing all enrollees of the right to
coverage under an individual plan contract pursuant to this section,
at a minimum, when the plan rescinds the individual plan contract.
The notice shall adequately inform enrollees of the right to
coverage provided under this section.

(d) The plan shall provide 60 days for enrollees to accept the
offered new individual plan contract under subdivision (a), and
this contract shall be effective as of the effective date of the original
plan contract and there shall be no lapse in coverage.

(e) This section does not apply to any individual whose
information in the application for coverage and related
communications led to the rescission.

(f) This section applies notwithstanding subdivision (a) or (d)
of Section 1399.849.

(g) (1) This section shall become operative on January 1, 2014,
or the 91st calendar day following the adjournment of the 2013-14
First Extraordinary Session, whichever date is later.

(2) If Section 5000A of the Internal Revenue Code, as added
by Section 1501 of PPACA, is repealed or amended to no longer
apply to the individual market, as defined in Section 2791 of the
federal Public Health Service Act (42 U.S.C. Sec. 300gg-91), this
section shall become inoperative 12 months after the date of that
repeal or amendment.

begin delete SEC. 265. end delete
begin insert SEC. 266. end insert   

Section 1399.836 of the Health and Safety Code is
amended to read:

1399.836.  

(a) This article shall become inoperative on January
1, 2014, or the 91st calendar day following the adjournment of the
2013-14 First Extraordinary Session, whichever date is later.

(b) If Section 5000A of the Internal Revenue Code, as added
by Section 1501 of PPACA, is repealed or amended to no longer
apply to the individual market, as defined in Section 2791 of the
federal Public Health Service Act (42 U.S.C. Sec. 300gg-91), this
article shall become operative 12 months after the date of that
repeal or amendment.

begin delete SEC. 266. end delete
begin insert SEC. 267. end insert   

Section 1399.855 of the Health and Safety Code is
amended to read:

1399.855.  

(a) With respect to individual health benefit plans
for policy years on or after January 1, 2014, a health care service
plan may use only the following characteristics of an individual,
and any dependent thereof, for purposes of establishing the rate
of the individual health benefit plan covering the individual and
the eligible dependents thereof, along with the health benefit plan
selected by the individual:

(1) Age, pursuant to the age bands established by the United
States Secretary of Health and Human Services and the age rating
curve established by the federal Centers for Medicare and Medicaid
Services pursuant to Section 2701(a)(3) of the federal Public Health
Service Act (42 U.S.C. Sec. 300gg(a)(3)). Rates based on age shall
be determined using the individual’s age as of the date of the health
benefit plan contract issuance or renewal, as applicable, and shall
not vary by more than three to one for like individuals of different
age who are 21 years of age or older as described in federal
regulations adopted pursuant to Section 2701(a)(3) of the federal
Public Health Service Act (42 U.S.C. Sec. 300gg(a)(3)).

(2) (A) Geographic region. The geographic regions for purposes
of rating shall be the following:

(i) Region 1 shall consist of the Counties of Alpine, Amador,
Butte, Calaveras, Colusa, Del Norte, Glenn, Humboldt, Lake,
Lassen, Mendocino, Modoc, Nevada, Plumas, Shasta, Sierra,
Siskiyou, Sutter, Tehama, Trinity, Tuolumne, and Yuba.

(ii) Region 2 shall consist of the Counties of Marin, Napa,
Solano, and Sonoma.

(iii) Region 3 shall consist of the Counties of El Dorado, Placer,
Sacramento, and Yolo.

(iv) Region 4 shall consist of the City and County of San
Francisco.

(v) Region 5 shall consist of the County of Contra Costa.

(vi) Region 6 shall consist of the County of Alameda.

(vii) Region 7 shall consist of the County of Santa Clara.

(viii) Region 8 shall consist of the County of San Mateo.

(ix) Region 9 shall consist of the Counties of Monterey, San
Benito, and Santa Cruz.

(x) Region 10 shall consist of the Counties of Mariposa, Merced,
San Joaquin, Stanislaus, and Tulare.

(xi) Region 11 shall consist of the Counties of Fresno, Kings,
and Madera.

(xii) Region 12 shall consist of the Counties of San Luis Obispo,
Santa Barbara, and Ventura.

(xiii) Region 13 shall consist of the Counties of Imperial, Inyo,
and Mono.

(xiv) Region 14 shall consist of the County of Kern.

(xv) Region 15 shall consist of the ZIP Codes in the County of
Los Angeles starting with 906 to 912, inclusive, 915, 917, 918,
and 935.

(xvi) Region 16 shall consist of the ZIP Codes in the County of
Los Angeles other than those identified in clause (xv).

(xvii) Region 17 shall consist of the Counties of Riverside and
San Bernardino.

(xviii) Region 18 shall consist of the County of Orange.

(xix) Region 19 shall consist of the County of San Diego.

(B) No later than June 1, 2017, the department, in collaboration
with the Exchange and the Department of Insurance, shall review
the geographic rating regions specified in this paragraph and the
impacts of those regions on the health care coverage market in
California, and make a report to the appropriate policy committees
of the Legislature.

(3) Whether the plan covers an individual or family, as described
in PPACA.

(b) The rate for a health benefit plan subject to this section shall
not vary by any factor not described in this section.

(c) With respect to family coverage under an individual health
benefit plan, the rating variation permitted under paragraph (1) of
subdivision (a) shall be applied based on the portion of the
premium attributable to each family member covered under the
plan. The total premium for family coverage shall be determined
by summing the premiums for each individual family member. In
determining the total premium for family members, premiums for
no more than the three oldest family members who are under 21
years of age shall be taken into account.

(d) The rating period for rates subject to this section shall be
from January 1 to December 31, inclusive.

(e) This section does not apply to an individual health benefit
plan that is a grandfathered health plan.

(f) The requirement for submitting a report imposed under
subparagraph (B) of paragraph (2) of subdivision (a) is inoperative
on June 1, 2021, pursuant to Section 10231.5 of the Government
Code.

(g) If Section 5000A of the Internal Revenue Code, as added
by Section 1501 of PPACA, is repealed or amended to no longer
apply to the individual market, as defined in Section 2791 of the
federal Public Health Service Act (42 U.S.C. Sec. 300gg-91), this
section shall become inoperative 12 months after the date of that
repeal or amendment.

begin delete SEC. 267. end delete
begin insert SEC. 268. end insert   

Section 1502 of the Health and Safety Code is
amended to read:

1502.  

As used in this chapter:

(a) “Community care facility” means any facility, place, or
building that is maintained and operated to provide nonmedical
residential care, day treatment, adult day care, or foster family
agency services for children, adults, or children and adults,
including, but not limited to, the physically handicapped, mentally
impaired, incompetent persons, and abused or neglected children,
and includes the following:

(1) “Residential facility” means any family home, group care
facility, or similar facility determined by the director, for 24-hour
nonmedical care of persons in need of personal services,
supervision, or assistance essential for sustaining the activities of
daily living or for the protection of the individual.

(2) “Adult day program” means any community-based facility
or program that provides care to persons 18 years of age or older
in need of personal services, supervision, or assistance essential
for sustaining the activities of daily living or for the protection of
these individuals on less than a 24-hour basis.

(3) “Therapeutic day services facility” means any facility that
provides nonmedical care, counseling, educational or vocational
support, or social rehabilitation services on less than a 24-hour
basis to persons under 18 years of age who would otherwise be
placed in foster care or who are returning to families from foster
care. Program standards for these facilities shall be developed by
the department, pursuant to Section 1530, in consultation with
therapeutic day services and foster care providers.

(4) “Foster family agency” means any organization engaged in
the recruiting, certifying, and training of, and providing
professional support to, foster parents, or in finding homes or other
places for placement of children for temporary or permanent care
who require that level of care as an alternative to a group home.
Private foster family agencies shall be organized and operated on
a nonprofit basis.

(5) “Foster family home” means any residential facility
providing 24-hour care for six or fewer foster children that is
owned, leased, or rented and is the residence of the foster parent
or parents, including their family, in whose care the foster children
have been placed. The placement may be by a public or private
child placement agency or by a court order, or by voluntary
placement by a parent, parents, or guardian. It also means a foster
family home described in Section 1505.2.

(6) “Small family home” means any residential facility, in the
licensee’s family residence, that provides 24-hour care for six or
fewer foster children who have mental disorders or developmental
or physical disabilities and who require special care and supervision
as a result of their disabilities. A small family home may accept
children with special health care needs, pursuant to subdivision
(a) of Section 17710 of the Welfare and Institutions Code. In
addition to placing children with special health care needs, the
department may approve placement of children without special
health care needs, up to the licensed capacity.

(7) “Social rehabilitation facility” means any residential facility
that provides social rehabilitation services for no longer than 18
months in a group setting to adults recovering from mental illness
who temporarily need assistance, guidance, or counseling. Program
components shall be subject to program standards pursuant to
Article 1 (commencing with Section 5670) of Chapter 2.5 of Part
2 of Division 5 of the Welfare and Institutions Code.

(8) “Community treatment facility” means any residential
facility that provides mental health treatment services to children
in a group setting and that has the capacity to provide secure
containment. Program components are subject to program standards
developed and enforced by the State Department of Health Care
Services pursuant to Section 4094 of the Welfare and Institutions
Code.

This section does not prohibit or discourage placement of persons
who have mental or physical disabilities into any category of
community care facility that meets the needs of the individual
placed, if the placement is consistent with the licensing regulations
of the department.

(9) “Full-service adoption agency” means any licensed entity
engaged in the business of providing adoption services, that does
all of the following:

(A) Assumes care, custody, and control of a child through
relinquishment of the child to the agency or involuntary termination
of parental rights to the child.

(B) Assesses the birth parents, prospective adoptive parents, or
child.

(C) Places children for adoption.

(D) Supervises adoptive placements.

Private full-service adoption agencies shall be organized and
operated on a nonprofit basis. As a condition of licensure to provide
intercountry adoption services, a full-service adoption agency shall
be accredited and in good standing according to Part 96 of Title
22 of the Code of Federal Regulations, or supervised by an
accredited primary provider, or acting as an exempted provider,
in compliance with Subpart F (commencing with Section 96.29)
of Part 96 of Title 22 of the Code of Federal Regulations.

(10) “Noncustodial adoption agency” means any licensed entity
engaged in the business of providing adoption services, that does
all of the following:

(A) Assesses the prospective adoptive parents.

(B) Cooperatively matches children freed for adoption, who are
under the care, custody, and control of a licensed adoption agency,
for adoption, with assessed and approved adoptive applicants.

(C) Cooperatively supervises adoptive placements with a
full-service adoptive agency, but does not disrupt a placement or
remove a child from a placement.

Private noncustodial adoption agencies shall be organized and
operated on a nonprofit basis. As a condition of licensure to provide
intercountry adoption services, a noncustodial adoption agency
shall be accredited and in good standing according to Part 96 of
Title 22 of the Code of Federal Regulations, or supervised by an
accredited primary provider, or acting as an exempted provider,
in compliance with Subpart F (commencing with Section 96.29)
of Part 96 of Title 22 of the Code of Federal Regulations.

(11) “Transitional shelter care facility” means any group care
facility that provides for 24-hour nonmedical care of persons in
need of personal services, supervision, or assistance essential for
sustaining the activities of daily living or for the protection of the
individual. Program components shall be subject to program
standards developed by the State Department of Social Services
pursuant to Section 1502.3.

(12) “Transitional housing placement provider” means an
organization licensed by the department pursuant to Section
1559.110 and Section 16522.1 of the Welfare and Institutions Code
to provide transitional housing to foster children at least 16 years
of age and not more than 18 years of age, and nonminor
dependents, as defined in subdivision (v) of Section 11400 of the
Welfare and Institutions Code, to promote their transition to
adulthood. A transitional housing placement provider shall be
privately operated and organized on a nonprofit basis.

(13) “Group home” means a residential facility that provides
24-hour care and supervision to children, delivered at least in part
by staff employed by the licensee in a structured environment. The
care and supervision provided by a group home shall be
nonmedical, except as otherwise permitted by law.

(14) “Runaway and homeless youth shelter” means a group
home licensed by the department to operate a program pursuant
to Section 1502.35 to provide voluntary, short-term, shelter and
personal services to runaway youth or homeless youth, as defined
in paragraph (2) of subdivision (a) of Section 1502.35.

(15) “Enhanced behavioral supports home” means a facility
certified by the State Department of Developmental Services
pursuant to Article 3.6 (commencing with Section 4684.80) of
Chapter 6 of Division 4.5 of the Welfare and Institutions Code,
and licensed by the State Department of Social Services as an adult
residential facility or a group home that provides 24-hour
nonmedical care to individuals with developmental disabilities
who require enhanced behavioral supports, staffing, and
supervision in a homelike setting. An enhanced behavioral supports
home shall have a maximum capacity of four consumers, shall
conform to Section 441.530(a)(1) of Title 42 of the Code of Federal
Regulations, and shall be eligible for federal Medicaid home- and
community-based services funding.

(16) “Community crisis home” means a facility certified by the
State Department of Developmental Services pursuant to Article
8 (commencing with Section 4698) of Chapter 6 of Division 4.5
of the Welfare and Institutions Code, and licensed by the State
Department of Social Services pursuant to Article 9.7 (commencing
with Section 1567.80), as an adult residential facility, providing
24-hour nonmedical care to individuals with developmental
disabilities receiving regional center service, in need of crisis
intervention services, and who would otherwise be at risk of
admission to the acute crisis center at Fairview Developmental
Center, Sonoma Developmental Center, a general acute care
hospital, acute psychiatric hospital, an institution for mental
disease, as described in Part 5 (commencing with Section 5900)
of Division 5 of the Welfare and Institutions Code, or an
out-of-state placement. A community crisis home shall have a
maximum capacity of eight consumers, as defined in subdivision
(a) of Section 1567.80, shall conform to Section 441.530(a)(1) of
Title 42 of the Code of Federal Regulations, and shall be eligible
for federal Medicaid home- and community-based services funding.

(17) “Crisis nursery” means a facility licensed by the department
to operate a program pursuant to Section 1516 to provide short-term
care and supervision for children under six years of age who are
voluntarily placed for temporary care by a parent or legal guardian
due to a family crisis or stressful situation.

(b) “Department” or “state department” means the State
Department of Social Services.

(c) “Director” means the Director of Social Services.

begin delete SEC. 268. end delete
begin insert SEC. 269. end insert   

Section 1522 of the Health and Safety Code is
amended to read:

1522.  

The Legislature recognizes the need to generate timely
and accurate positive fingerprint identification of applicants as a
condition of issuing licenses, permits, or certificates of approval
for persons to operate or provide direct care services in a
community care facility, foster family home, or a certified family
home of a licensed foster family agency. Therefore, the Legislature
supports the use of the fingerprint live-scan technology, as
identified in the long-range plan of the Department of Justice for
fully automating the processing of fingerprints and other data by
the year 1999, otherwise known as the California Crime
Information Intelligence System (CAL-CII), to be used for
applicant fingerprints. It is the intent of the Legislature in enacting
this section to require the fingerprints of those individuals whose
contact with community care clients may pose a risk to the clients’
health and safety. An individual shall be required to obtain either
a criminal record clearance or a criminal record exemption from
the State Department of Social Services before his or her initial
presence in a community care facility or certified family home.

(a) (1) Before and, as applicable, subsequent to issuing a license
or special permit to any person or persons to operate or manage a
community care facility, the State Department of Social Services
shall secure from an appropriate law enforcement agency a criminal
record to determine whether the applicant or any other person
specified in subdivision (b) has ever been convicted of a crime
other than a minor traffic violation or arrested for any crime
specified in Section 290 of the Penal Code, or for violating Section
245, 273ab, or 273.5 of the Penal Code, subdivision (b) of Section
273a of the Penal Code, or, prior to January 1, 1994, paragraph
(2) of Section 273a of the Penal Code, or for any crime for which
the department is prohibited from granting a criminal record
exemption pursuant to subdivision (g).

(2) The criminal history information shall include the full
criminal record, if any, of those persons, and subsequent arrest
information pursuant to Section 11105.2 of the Penal Code.

(3) Except during the 2003-04 to the 2014-15 fiscal years,
inclusive, the Department of Justice and the State Department of
Social Services shall not charge a fee for the fingerprinting of an
applicant for a license or special permit to operate a facility
providing nonmedical board, room, and care for six or fewer
children or for obtaining a criminal record of the applicant pursuant
to this section.

(4) The following shall apply to the criminal record information:

(A) If the State Department of Social Services finds that the
applicant, or any other person specified in subdivision (b), has
been convicted of a crime other than a minor traffic violation, the
application shall be denied, unless the director grants an exemption
pursuant to subdivision (g).

(B) If the State Department of Social Services finds that the
applicant, or any other person specified in subdivision (b), is
awaiting trial for a crime other than a minor traffic violation, the
State Department of Social Services may cease processing the
criminal record information until the conclusion of the trial.

(C) If criminal record information has not been recorded, the
Department of Justice shall provide the applicant and the State
Department of Social Services with a statement of that fact.

(D) If the State Department of Social Services finds after
licensure that the licensee, or any other person specified in
paragraph (1) of subdivision (b), has been convicted of a crime
other than a minor traffic violation, the license may be revoked,
unless the director grants an exemption pursuant to subdivision
(g).

(E) An applicant and any other person specified in subdivision
(b) shall submit fingerprint images and related information to the
Department of Justice for the purpose of searching the criminal
records of the Federal Bureau of Investigation, in addition to the
criminal records search required by this subdivision. If an applicant
and all other persons described in subdivision (b) meet all of the
conditions for licensure, except receipt of the Federal Bureau of
Investigation’s criminal offender record information search
response for the applicant or any of the persons described in
subdivision (b), the department may issue a license if the applicant
and each person described in subdivision (b) has signed and
submitted a statement that he or she has never been convicted of
a crime in the United States, other than a traffic infraction, as
prescribed in paragraph (1) of subdivision (a) of Section 42001 of
the Vehicle Code. If, after licensure, or the issuance of a certificate
of approval of a certified family home by a foster family agency,
the department determines that the licensee or any other person
specified in subdivision (b) has a criminal record, the department
may revoke the license, or require a foster family agency to revoke
the certificate of approval, pursuant to Section 1550. The
department may also suspend the license or require a foster family
agency to suspend the certificate of approval pending an
administrative hearing pursuant to Section 1550.5.

(F) The State Department of Social Services shall develop
procedures to provide the individual’s state and federal criminal
history information with the written notification of his or her
exemption denial or revocation based on the criminal record.
Receipt of the criminal history information shall be optional on
the part of the individual, as set forth in the agency’s procedures.
The procedure shall protect the confidentiality and privacy of the
individual’s record, and the criminal history information shall not
be made available to the employer.

(G) Notwithstanding any other law, the department is authorized
to provide an individual with a copy of his or her state or federal
level criminal offender record information search response as
provided to that department by the Department of Justice if the
department has denied a criminal background clearance based on
this information and the individual makes a written request to the
department for a copy specifying an address to which it is to be
sent. The state or federal level criminal offender record information
search response shall not be modified or altered from its form or
content as provided by the Department of Justice and shall be
provided to the address specified by the individual in his or her
written request. The department shall retain a copy of the
individual’s written request and the response and date provided.

(b) (1) In addition to the applicant, this section shall be
applicable to criminal record clearances and exemptions for the
following persons:

(A) Adults responsible for administration or direct supervision
of staff.

(B) Any person, other than a client, residing in the facility or
certified family home.

(C) A person who provides client assistance in dressing,
grooming, bathing, or personal hygiene. A nurse assistant or home
health aide meeting the requirements of Section 1338.5 or 1736.6,
respectively, who is not employed, retained, or contracted by the
licensee, and who has been certified or recertified on or after July
1, 1998, shall be deemed to meet the criminal record clearance
requirements of this section. A certified nurse assistant and certified
home health aide who will be providing client assistance and who
falls under this exemption shall provide one copy of his or her
current certification, prior to providing care, to the community
care facility. The facility shall maintain the copy of the certification
on file as long as care is being provided by the certified nurse
assistant or certified home health aide at the facility or certified
family home. This paragraph does not restrict the right of the
department to exclude a certified nurse assistant or certified home
health aide from a licensed community care facility or certified
family home pursuant to Section 1558.

(D) A staff person, volunteer, or employee who has contact with
the clients.

(E) If the applicant is a firm, partnership, association, or
corporation, the chief executive officer or other person serving in
like capacity.

(F) Additional officers of the governing body of the applicant,
or other persons with a financial interest in the applicant, as
determined necessary by the department by regulation. The criteria
used in the development of these regulations shall be based on the
person’s capability to exercise substantial influence over the
operation of the facility.

(2) The following persons are exempt from the requirements
applicable under paragraph (1):

(A) A medical professional as defined in department regulations
who holds a valid license or certification from the person’s
governing California medical care regulatory entity and who is
not employed, retained, or contracted by the licensee if all of the
following apply:

(i) The criminal record of the person has been cleared as a
condition of licensure or certification by the person’s governing
California medical care regulatory entity.

(ii) The person is providing time-limited specialized clinical
care or services.

(iii) The person is providing care or services within the person’s
scope of practice.

(iv) The person is not a community care facility licensee or an
employee of the facility.

(B) A third-party repair person or similar retained contractor if
all of the following apply:

(i) The person is hired for a defined, time-limited job.

(ii) The person is not left alone with clients.

(iii) When clients are present in the room in which the repair
person or contractor is working, a staff person who has a criminal
record clearance or exemption is also present.

(C) Employees of a licensed home health agency and other
members of licensed hospice interdisciplinary teams who have a
contract with a client or resident of the facility and are in the
facility at the request of that client or resident’s legal
decisionmaker. The exemption does not apply to a person who is
a community care facility licensee or an employee of the facility.

(D) Clergy and other spiritual caregivers who are performing
services in common areas of the community care facility or who
are advising an individual client at the request of, or with the
permission of, the client or legal decisionmaker, are exempt from
fingerprint and criminal background check requirements imposed
by community care licensing. This exemption does not apply to a
person who is a community care licensee or employee of the
facility.

(E) Members of fraternal, service, or similar organizations who
conduct group activities for clients if all of the following apply:

(i) Members are not left alone with clients.

(ii) Members do not transport clients off the facility premises.

(iii) The same organization does not conduct group activities
for clients more often than defined by the department’s regulations.

(3) In addition to the exemptions in paragraph (2), the following
persons in foster family homes, certified family homes, and small
family homes are exempt from the requirements applicable under
paragraph (1):

(A) Adult friends and family of the licensed or certified foster
parent, who come into the home to visit for a length of time no
longer than defined by the department in regulations, provided
that the adult friends and family of the licensee or certified foster
parent are not left alone with the foster children. However, the
licensee or certified foster parent, acting as a reasonable and
prudent parent, as defined in paragraph (2) of subdivision (a) of
Section 362.04 of the Welfare and Institutions Code, may allow
his or her adult friends and family to provide short-term care to
the foster child and act as an appropriate occasional short-term
babysitter for the child.

(B) Parents of a foster child’s friend when the foster child is
visiting the friend’s home and the friend, licensed or certified foster
parent, or both are also present. However, the licensee or certified
foster parent, acting as a reasonable and prudent parent, may allow
the parent of the foster child’s friend to act as an appropriate
short-term babysitter for the child without the friend being present.

(C) Individuals who are engaged by any licensed or certified
foster parent to provide short-term care to the child for periods not
to exceed 24 hours. Caregivers shall use a reasonable and prudent
parent standard in selecting appropriate individuals to act as
appropriate occasional short-term babysitters.

(4) In addition to the exemptions specified in paragraph (2), the
following persons in adult day care and adult day support centers
are exempt from the requirements applicable under paragraph (1):

(A) Unless contraindicated by the client’s individualized
program plan (IPP) or needs and service plan, a spouse, significant
other, relative, or close friend of a client, or an attendant or a
facilitator for a client with a developmental disability if the
attendant or facilitator is not employed, retained, or contracted by
the licensee. This exemption applies only if the person is visiting
the client or providing direct care and supervision to the client.

(B) A volunteer if all of the following applies:

(i) The volunteer is supervised by the licensee or a facility
employee with a criminal record clearance or exemption.

(ii) The volunteer is never left alone with clients.

(iii) The volunteer does not provide any client assistance with
dressing, grooming, bathing, or personal hygiene other than
washing of hands.

(5) (A) In addition to the exemptions specified in paragraph
(2), the following persons in adult residential and social
rehabilitation facilities, unless contraindicated by the client’s
individualized program plan (IPP) or needs and services plan, are
exempt from the requirements applicable under paragraph (1): a
spouse, significant other, relative, or close friend of a client, or an
attendant or a facilitator for a client with a developmental disability
if the attendant or facilitator is not employed, retained, or
contracted by the licensee. This exemption applies only if the
person is visiting the client or providing direct care and supervision
to that client.

(B) This subdivision does not prevent a licensee from requiring
a criminal record clearance of any individual exempt from the
requirements of this section, provided that the individual has client
contact.

(6) Any person similar to those described in this subdivision,
as defined by the department in regulations.

(c) (1) Subsequent to initial licensure, a person specified in
subdivision (b) who is not exempted from fingerprinting shall
obtain either a criminal record clearance or an exemption from
disqualification pursuant to subdivision (g) from the State
Department of Social Services prior to employment, residence, or
initial presence in the facility. A person specified in subdivision
(b) who is not exempt from fingerprinting shall be fingerprinted
and shall sign a declaration under penalty of perjury regarding any
prior criminal convictions. The licensee shall submit fingerprint
images and related information to the Department of Justice and
the Federal Bureau of Investigation, through the Department of
Justice, for a state and federal level criminal offender record
information search, or comply with paragraph (1) of subdivision
(h). These fingerprint images and related information shall be sent
by electronic transmission in a manner approved by the State
Department of Social Services and the Department of Justice for
the purpose of obtaining a permanent set of fingerprints, and shall
be submitted to the Department of Justice by the licensee. A
licensee’s failure to prohibit the employment, residence, or initial
presence of a person specified in subdivision (b) who is not exempt
from fingerprinting and who has not received either a criminal
record clearance or an exemption from disqualification pursuant
to subdivision (g) or to comply with paragraph (1) of subdivision
(h), as required in this section, shall result in the citation of a
deficiency and the immediate assessment of civil penalties in the
amount of one hundred dollars ($100) per violation per day for a
maximum of five days, unless the violation is a second or
subsequent violation within a 12-month period in which case the
civil penalties shall be in the amount of one hundred dollars ($100)
per violation for a maximum of 30 days, and shall be grounds for
disciplining the licensee pursuant to Section 1550. The department
may assess civil penalties for continued violations as permitted by
Section 1548. The fingerprint images and related information shall
then be submitted to the Department of Justice for processing.
Upon request of the licensee, who shall enclose a self-addressed
stamped postcard for this purpose, the Department of Justice shall
verify receipt of the fingerprints.

(2) Within 14 calendar days of the receipt of the fingerprint
images, the Department of Justice shall notify the State Department
of Social Services of the criminal record information, as provided
for in subdivision (a). If criminal record information has not been
recorded, the Department of Justice shall provide the licensee and
the State Department of Social Services with a statement of that
fact within 14 calendar days of receipt of the fingerprint images.
Documentation of the individual’s clearance or exemption from
disqualification shall be maintained by the licensee and be available
for inspection. If new fingerprint images are required for
processing, the Department of Justice shall, within 14 calendar
days from the date of receipt of the fingerprints, notify the licensee
that the fingerprints were illegible, the Department of Justice shall
notify the State Department of Social Services, as required by
Section 1522.04, and shall also notify the licensee by mail, within
14 days of electronic transmission of the fingerprints to the
Department of Justice, if the person has no criminal history
recorded. A violation of the regulations adopted pursuant to Section
1522.04 shall result in the citation of a deficiency and an immediate
assessment of civil penalties in the amount of one hundred dollars
($100) per violation per day for a maximum of five days, unless
the violation is a second or subsequent violation within a 12-month
period in which case the civil penalties shall be in the amount of
one hundred dollars ($100) per violation for a maximum of 30
days, and shall be grounds for disciplining the licensee pursuant
to Section 1550. The department may assess civil penalties for
continued violations as permitted by Section 1548.

(3) Except for persons specified in subdivision (b) who are
exempt from fingerprinting, the licensee shall endeavor to ascertain
the previous employment history of persons required to be
fingerprinted. If it is determined by the State Department of Social
Services, on the basis of the fingerprint images and related
information submitted to the Department of Justice, that subsequent
to obtaining a criminal record clearance or exemption from
disqualification pursuant to subdivision (g), the person has been
convicted of, or is awaiting trial for, a sex offense against a minor,
or has been convicted for an offense specified in Section 243.4,
273a, 273ab, 273d, 273g, or 368 of the Penal Code, or a felony,
the State Department of Social Services shall notify the licensee
to act immediately to terminate the person’s employment, remove
the person from the community care facility, or bar the person
from entering the community care facility. The State Department
of Social Services may subsequently grant an exemption from
disqualification pursuant to subdivision (g). If the conviction or
arrest was for another crime, except a minor traffic violation, the
licensee shall, upon notification by the State Department of Social
Services, act immediately to either (A) terminate the person’s
employment, remove the person from the community care facility,
or bar the person from entering the community care facility; or
(B) seek an exemption from disqualification pursuant to subdivision
(g). The State Department of Social Services shall determine if
the person shall be allowed to remain in the facility until a decision
on the exemption from disqualification is rendered. A licensee’s
failure to comply with the department’s prohibition of employment,
contact with clients, or presence in the facility as required by this
paragraph shall result in a citation of deficiency and an immediate
assessment of civil penalties in the amount of one hundred dollars
($100) per violation per day and shall be grounds for disciplining
the licensee pursuant to Section 1550.

(4) The department may issue an exemption from
disqualification on its own motion pursuant to subdivision (g) if
the person’s criminal history indicates that the person is of good
character based on the age, seriousness, and frequency of the
conviction or convictions. The department, in consultation with
interested parties, shall develop regulations to establish the criteria
to grant an exemption from disqualification pursuant to this
paragraph.

(5) Concurrently with notifying the licensee pursuant to
paragraph (3), the department shall notify the affected individual
of his or her right to seek an exemption from disqualification
pursuant to subdivision (g). The individual may seek an exemption
from disqualification only if the licensee terminates the person’s
employment or removes the person from the facility after receiving
notice from the department pursuant to paragraph (3).

(d) (1) Before and, as applicable, subsequent to issuing a license
or certificate of approval to any person or persons to operate a
foster family home or certified family home as described in Section
1506, the State Department of Social Services or other approving
authority shall secure California and Federal Bureau of
Investigation criminal history information to determine whether
the applicant or any person specified in subdivision (b) who is not
exempt from fingerprinting has ever been convicted of a crime
other than a minor traffic violation or arrested for any crime
specified in subdivision (c) of Section 290 of the Penal Code, for
violating Section 245, 273ab, or 273.5, subdivision (b) of Section
273a, or, prior to January 1, 1994, paragraph (2) of Section 273a,
of the Penal Code, or for any crime for which the department is
prohibited from granting a criminal record exemption pursuant to
subdivision (g). The State Department of Social Services or other
approving authority shall not issue a license or certificate of
approval to any foster family home or certified family home
applicant who has not obtained both a California and Federal
Bureau of Investigation criminal record clearance or exemption
from disqualification pursuant to subdivision (g).

(2) The criminal history information shall include the full
criminal record, if any, of those persons.

(3) Neither the Department of Justice nor the State Department
of Social Services may charge a fee for the fingerprinting of an
applicant for a license, special permit, or certificate of approval
described in this subdivision. The record, if any, shall be taken
into consideration when evaluating a prospective applicant.

(4) The following shall apply to the criminal record information:

(A) If the applicant or other persons specified in subdivision
(b) who are not exempt from fingerprinting have convictions that
would make the applicant’s home unfit as a foster family home or
a certified family home, the license, special permit, certificate of
approval, or presence shall be denied.

(B) If the State Department of Social Services finds that the
applicant, or any person specified in subdivision (b) who is not
exempt from fingerprinting is awaiting trial for a crime other than
a minor traffic violation, the State Department of Social Services
or other approving authority may cease processing the criminal
record information until the conclusion of the trial.

(C) For purposes of this subdivision, a criminal record clearance
provided under Section 8712 of the Family Code may be used by
the department or other approving agency.

(D) To the same extent required for federal funding, an applicant
for a foster family home license or for certification as a family
home, and any other person specified in subdivision (b) who is
not exempt from fingerprinting, shall submit a set of fingerprint
images and related information to the Department of Justice and
the Federal Bureau of Investigation, through the Department of
Justice, for a state and federal level criminal offender record
information search, in addition to the criminal records search
required by subdivision (a).

(5) A person specified in this subdivision shall, as a part of the
application, be fingerprinted and sign a declaration under penalty
of perjury regarding any prior criminal convictions or arrests for
any crime against a child, spousal or cohabitant abuse, or any crime
for which the department cannot grant an exemption if the person
was convicted and shall submit these fingerprints to the licensing
agency or other approving authority.

(6) (A) Subsequent to initial licensure or certification, a person
specified in subdivision (b) who is not exempt from fingerprinting
shall obtain both a California and Federal Bureau of Investigation
criminal record clearance, or an exemption from disqualification
pursuant to subdivision (g), prior to employment, residence, or
initial presence in the foster family or certified family home. A
foster family home licensee or foster family agency shall submit
fingerprint images and related information of persons specified in
subdivision (b) who are not exempt from fingerprinting to the
Department of Justice and the Federal Bureau of Investigation,
through the Department of Justice, for a state and federal level
criminal offender record information search, or to comply with
paragraph (1) of subdivision (h). A foster family home licensee’s
or a foster family agency’s failure to either prohibit the
employment, residence, or initial presence of a person specified
in subdivision (b) who is not exempt from fingerprinting and who
has not received either a criminal record clearance or an exemption
from disqualification pursuant to subdivision (g), or comply with
paragraph (1) of subdivision (h), as required in this section, shall
result in a citation of a deficiency, and the immediate civil penalties
of one hundred dollars ($100) per violation per day for a maximum
of five days, unless the violation is a second or subsequent violation
within a 12-month period in which case the civil penalties shall
be in the amount of one hundred dollars ($100) per violation for
a maximum of 30 days, and shall be grounds for disciplining the
licensee pursuant to Section 1550. A violation of the regulation
adopted pursuant to Section 1522.04 shall result in the citation of
a deficiency and an immediate assessment of civil penalties in the
amount of one hundred dollars ($100) per violation per day for a
maximum of five days, unless the violation is a second or
subsequent violation within a 12-month period in which case the
civil penalties shall be in the amount of one hundred dollars ($100)
per violation for a maximum of 30 days, and shall be grounds for
disciplining the foster family home licensee or the foster family
agency pursuant to Section 1550. The State Department of Social
Services may assess penalties for continued violations, as permitted
by Section 1548. The fingerprint images shall then be submitted
to the Department of Justice for processing.

(B) Upon request of the licensee, who shall enclose a
self-addressed envelope for this purpose, the Department of Justice
shall verify receipt of the fingerprints. Within five working days
of the receipt of the criminal record or information regarding
criminal convictions from the Department of Justice, the
department shall notify the applicant of any criminal arrests or
convictions. If no arrests or convictions are recorded, the
Department of Justice shall provide the foster family home licensee
or the foster family agency with a statement of that fact concurrent
with providing the information to the State Department of Social
Services.

(7) If the State Department of Social Services or other approving
authority finds that the applicant, or any other person specified in
subdivision (b) who is not exempt from fingerprinting, has been
convicted of a crime other than a minor traffic violation, the
application or presence shall be denied, unless the director grants
an exemption from disqualification pursuant to subdivision (g).

(8) If the State Department of Social Services or other approving
authority finds after licensure or the granting of the certificate of
approval that the licensee, certified foster parent, or any other
person specified in subdivision (b) who is not exempt from
fingerprinting, has been convicted of a crime other than a minor
traffic violation, the license or certificate of approval may be
revoked by the department or the foster family agency, whichever
is applicable, unless the director grants an exemption from
disqualification pursuant to subdivision (g). A licensee’s failure
to comply with the department’s prohibition of employment,
contact with clients, or presence in the facility as required by
paragraph (3) of subdivision (c) shall be grounds for disciplining
the licensee pursuant to Section 1550.

(e) (1) The State Department of Social Services shall not use
a record of arrest to deny, revoke, or terminate any application,
license, employment, or residence unless the department
investigates the incident and secures evidence, whether or not
related to the incident of arrest, that is admissible in an
administrative hearing to establish conduct by the person that may
pose a risk to the health and safety of any person who is or may
become a client.

(2) The department shall not issue a criminal record clearance
to a person who has been arrested for any crime specified in Section
290 of the Penal Code, or for violating Section 245, 273ab, or
273.5, or subdivision (b) of Section 273a, of the Penal Code, or,
prior to January 1, 1994, paragraph (2) of Section 273a of the Penal
Code, or for any crime for which the department is prohibited from
granting a criminal record exemption pursuant to subdivision (g),
prior to the department’s completion of an investigation pursuant
to paragraph (1).

(3) The State Department of Social Services is authorized to
obtain any arrest or conviction records or reports from any law
enforcement agency as necessary to the performance of its duties
to inspect, license, and investigate community care facilities and
individuals associated with a community care facility.

(f) (1) For purposes of this section or any other provision of
this chapter, a conviction means a plea or verdict of guilty or a
conviction following a plea of nolo contendere. Any action that
the State Department of Social Services is permitted to take
following the establishment of a conviction may be taken when
the time for appeal has elapsed, when the judgment of conviction
has been affirmed on appeal, or when an order granting probation
is made suspending the imposition of sentence, notwithstanding
a subsequent order pursuant to Sections 1203.4 and 1203.4a of the
Penal Code permitting the person to withdraw his or her plea of
guilty and to enter a plea of not guilty, or setting aside the verdict
of guilty, or dismissing the accusation, information, or indictment.
For purposes of this section or any other provision of this chapter,
the record of a conviction, or a copy thereof certified by the clerk
of the court or by a judge of the court in which the conviction
occurred, shall be conclusive evidence of the conviction. For
purposes of this section or any other provision of this chapter, the
arrest disposition report certified by the Department of Justice, or
documents admissible in a criminal action pursuant to Section
969b of the Penal Code, shall be prima facie evidence of the
conviction, notwithstanding any other law prohibiting the
admission of these documents in a civil or administrative action.

(2) For purposes of this section or any other provision of this
chapter, the department shall consider criminal convictions from
another state or federal court as if the criminal offense was
committed in this state.

(g) (1) After review of the record, the director may grant an
exemption from disqualification for a license or special permit as
specified in paragraph (4) of subdivision (a), or for a license,
special permit, or certificate of approval as specified in paragraphs
(4), (7), and (8) of subdivision (d), or for employment, residence,
or presence in a community care facility as specified in paragraphs
(3), (4), and (5) of subdivision (c), if the director has substantial
and convincing evidence to support a reasonable belief that the
applicant and the person convicted of the crime, if other than the
applicant, are of good character as to justify issuance of the license
or special permit or granting an exemption for purposes of
subdivision (c). Except as otherwise provided in this subdivision,
an exemption shall not be granted pursuant to this subdivision if
the conviction was for any of the following offenses:

(A) (i) An offense specified in Section 220, 243.4, or 264.1,
subdivision (a) of Section 273a, or, prior to January 1, 1994,
paragraph (1) of Section 273a, Section 273ab, 273d, 288, or 289,
subdivision (c) of Section 290, or Section 368, of the Penal Code,
or was a conviction of another crime against an individual specified
in subdivision (c) of Section 667.5 of the Penal Code.

(ii) Notwithstanding clause (i), the director may grant an
exemption regarding the conviction for an offense described in
paragraph (1), (2), (7), or (8) of subdivision (c) of Section 667.5
of the Penal Code, if the employee or prospective employee has
been rehabilitated as provided in Section 4852.03 of the Penal
Code, has maintained the conduct required in Section 4852.05 of
the Penal Code for at least 10 years, and has the recommendation
of the district attorney representing the employee’s county of
residence, or if the employee or prospective employee has received
a certificate of rehabilitation pursuant to Chapter 3.5 (commencing
with Section 4852.01) of Title 6 of Part 3 of the Penal Code. This
clause does not apply to foster care providers, including relative
caregivers, nonrelated extended family members, or any other
person specified in subdivision (b), in those homes where the
individual has been convicted of an offense described in paragraph
(1) of subdivision (c) of Section 667.5 of the Penal Code.

(B) A felony offense specified in Section 729 of the Business
and Professions Code or Section 206 or 215, subdivision (a) of
Section 347, subdivision (b) of Section 417, or subdivision (a) of
Section 451 of the Penal Code.

(C) An exemption shall not be granted pursuant to this
subdivision to any foster care provider applicant if that applicant,
or any other person specified in subdivision (b) in those homes,
has a felony conviction for either of the following offenses:

(i) A felony conviction for child abuse or neglect, spousal abuse,
crimes against a child, including child pornography, or for a crime
involving violence, including rape, sexual assault, or homicide,
but not including other physical assault and battery. For purposes
of this subparagraph, a crime involving violence means a violent
crime specified in clause (i) of subparagraph (A), or subparagraph
(B).

(ii) A felony conviction, within the last five years, for physical
assault, battery, or a drug- or alcohol-related offense.

(iii) This subparagraph does not apply to licenses or approvals
wherein a caregiver was granted an exemption to a criminal
conviction described in clause (i) or (ii) prior to the enactment of
this subparagraph.

(iv) This subparagraph shall remain operative only to the extent
that compliance with its provisions is required by federal law as
a condition for receiving funding under Title IV-E of the federal
Social Security Act (42 U.S.C. Sec. 670 et seq.).

(2) The department shall not prohibit a person from being
employed or having contact with clients in a facility on the basis
of a denied criminal record exemption request or arrest information
unless the department complies with the requirements of Section
1558.

(h) (1) For purposes of compliance with this section, the
department may permit an individual to transfer a current criminal
record clearance, as defined in subdivision (a), from one facility
to another, as long as the criminal record clearance has been
processed through a state licensing district office, and is being
transferred to another facility licensed by a state licensing district
office. The request shall be in writing to the State Department of
Social Services, and shall include a copy of the person’s driver’s
license or valid identification card issued by the Department of
Motor Vehicles, or a valid photo identification issued by another
state or the United States government if the person is not a
California resident. Upon request of the licensee, who shall enclose
a self-addressed envelope for this purpose, the State Department
of Social Services shall verify whether the individual has a
clearance that can be transferred.

(2) The State Department of Social Services shall hold criminal
record clearances in its active files for a minimum of three years
after an employee is no longer employed at a licensed facility in
order for the criminal record clearance to be transferred.

(3) The following applies to a criminal record clearance or
exemption from the department or a county office with
department-delegated licensing authority:

(A) A county office with department-delegated licensing
authority may accept a clearance or exemption from the
department.

(B) The department may accept a clearance or exemption from
any county office with department-delegated licensing authority.

(C) A county office with department-delegated licensing
authority may accept a clearance or exemption from any other
county office with department-delegated licensing authority.

(4) With respect to notifications issued by the Department of
Justice pursuant to Section 11105.2 of the Penal Code concerning
an individual whose criminal record clearance was originally
processed by the department or a county office with
department-delegated licensing authority, all of the following
applies:

(A) The Department of Justice shall process a request from the
department or a county office with department-delegated licensing
authority to receive the notice only if all of the following conditions
are met:

(i) The request shall be submitted to the Department of Justice
by the agency to be substituted to receive the notification.

(ii)  The request shall be for the same applicant type as the type
for which the original clearance was obtained.

(iii) The request shall contain all prescribed data elements and
format protocols pursuant to a written agreement between the
department and the Department of Justice.

(B) (i) On or before January 7, 2005, the department shall notify
the Department of Justice of all county offices that have
department-delegated licensing authority.

(ii) The department shall notify the Department of Justice within
15 calendar days of the date on which a new county office receives
department-delegated licensing authority or a county’s delegated
licensing authority is rescinded.

(C) The Department of Justice shall charge the department, a
county office with department-delegated licensing authority, or a
county child welfare agency with criminal record clearance and
exemption authority, a fee for each time a request to substitute the
recipient agency is received for purposes of this paragraph. This
fee shall not exceed the cost of providing the service.

(5) (A) A county child welfare agency with authority to secure
clearances pursuant to Section 16504.5 of the Welfare and
Institutions Code and to grant exemptions pursuant to Section
361.4 of the Welfare and Institutions Code may accept a clearance
or exemption from another county with criminal record and
exemption authority pursuant to these sections.

(B) With respect to notifications issued by the Department of
Justice pursuant to Section 11105.2 of the Penal Code concerning
an individual whose criminal record clearance was originally
processed by a county child welfare agency with criminal record
clearance and exemption authority, the Department of Justice shall
process a request from a county child welfare agency with criminal
record and exemption authority to receive the notice only if all of
the following conditions are met:

(i) The request shall be submitted to the Department of Justice
by the agency to be substituted to receive the notification.

(ii) The request shall be for the same applicant type as the type
for which the original clearance was obtained.

(iii) The request shall contain all prescribed data elements and
format protocols pursuant to a written agreement between the State
Department of Social Services and the Department of Justice.

(i) The full criminal record obtained for purposes of this section
may be used by the department or by a licensed adoption agency
as a clearance required for adoption purposes.

(j) If a licensee or facility is required by law to deny employment
or to terminate employment of any employee based on written
notification from the state department that the employee has a prior
criminal conviction or is determined unsuitable for employment
under Section 1558, the licensee or facility shall not incur civil
liability or unemployment insurance liability as a result of that
denial or termination.

(k) The State Department of Social Services may charge a fee
for the costs of processing electronic fingerprint images and related
information.

(l) Amendments to this section made in the 1999 portion of the
1999-2000 Regular Session shall be implemented commencing
60 days after the effective date of the act amending this section in
the 1999 portion of the 1999-2000 Regular Session, except that
those provisions for the submission of fingerprints for searching
the records of the Federal Bureau of Investigation shall be
implemented 90 days after the effective date of that act.

begin delete SEC. 269. end delete
begin insert SEC. 270. end insert   

The heading of Article 2.6 (commencing with
Section 1528) of Chapter 3 of Division 2 of the Health and Safety
Code is repealed.

begin delete SEC. 270. end delete
begin insert SEC. 271. end insert   

Section 1531.2 of the Health and Safety Code, as
added by Section 2 of Chapter 993 of the Statutes of 1989, is
amended and renumbered to read:

1531.18.  

A prospective applicant for licensure shall be notified
at the time of the initial request for information regarding
application for licensure that, prior to obtaining licensure, the
facility shall secure and maintain a fire clearance approval from
the local fire enforcing agency or the State Fire Marshal, whichever
has primary fire protection jurisdiction. The prospective applicant
shall be notified of the provisions of Section 13235, relating to the
fire safety clearance application. The prospective applicant for
licensure shall be notified that the fire clearance shall be in
accordance with state and local fire safety regulations.

begin delete SEC. 271. end delete
begin insert SEC. 272. end insert   

Section 1534 of the Health and Safety Code is
amended to read:

1534.  

(a) (1) (A) Except for foster family homes, every
licensed community care facility is subject to unannounced
inspections by the department.

(B) Foster family homes shall be subject to announced
inspections by the department, except that a foster family home
shall be subject to unannounced inspections in response to a
complaint, a plan of correction, or under any of the circumstances
set forth in subparagraph (B) of paragraph (2).

(2) (A) The department may inspect these facilities as often as
necessary to ensure the quality of care provided.

(B) The department shall conduct an annual unannounced
inspection of a facility under any of the following circumstances:

(i) When a license is on probation.

(ii) When the terms of agreement in a facility compliance plan
require an annual inspection.

(iii) When an accusation against a licensee is pending.

(iv) When a facility requires an annual inspection as a condition
of receiving federal financial participation.

(v) In order to verify that a person who has been ordered out of
a facility by the department is no longer at the facility.

(C) (i) The department shall conduct annual unannounced
inspections of no less than 20 percent of facilities, except for foster
family homes, not subject to an inspection under subparagraph
(B).

(ii) The department shall conduct annual announced inspections
of no less than 20 percent of foster family homes not subject to an
inspection under subparagraph (B).

(iii) These inspections shall be conducted based on a random
sampling methodology developed by the department.

(iv) If the total citations issued by the department to facilities
exceed the previous year’s total by 10 percent, the following year
the department shall increase the random sample by an additional
10 percent of the facilities not subject to an inspection under
subparagraph (B). The department may request additional resources
to increase the random sample by 10 percent.

(v) The department shall not inspect a licensed community care
facility less often than once every five years.

(3) In order to facilitate direct contact with group home clients,
the department may interview children who are clients of group
homes at any public agency or private agency at which the client
may be found, including, but not limited to, a juvenile hall,
recreation or vocational program, or a public or nonpublic school.
The department shall respect the rights of the child while
conducting the interview, including informing the child that he or
she has the right not to be interviewed and the right to have another
adult present during the interview.

(4) The department shall notify the community care facility in
writing of all deficiencies in its compliance with the provisions of
this chapter and the rules and regulations adopted pursuant to this
chapter, and shall set a reasonable length of time for compliance
by the facility.

(5) Reports on the results of each inspection, evaluation, or
consultation shall be kept on file in the department, and all
inspection reports, consultation reports, lists of deficiencies, and
plans of correction shall be open to public inspection.

(b) (1) This section does not limit the authority of the
department to inspect or evaluate a licensed foster family agency,
a certified family home, or any aspect of a program in which a
licensed community care facility is certifying compliance with
licensing requirements.

(2) (A) A foster family agency shall conduct an announced
inspection of a certified family home during the annual
recertification described in Section 1506 in order to ensure that
the certified family home meets all applicable licensing standards.
A foster family agency may inspect a certified family home as
often as necessary to ensure the quality of care provided.

(B) In addition to the inspections required pursuant to
subparagraph (A), a foster family agency shall conduct an
unannounced inspection of a certified family home under any of
the following circumstances:

(i) When a certified family home is on probation.

(ii) When the terms of the agreement in a facility compliance
plan require an annual inspection.

(iii) When an accusation against a certified family home is
pending.

(iv) When a certified family home requires an annual inspection
as a condition of receiving federal financial participation.

(v) In order to verify that a person who has been ordered out of
a certified family home by the department is no longer at the home.

(3) Upon a finding of noncompliance by the department, the
department may require a foster family agency to deny or revoke
the certificate of approval of a certified family home, or take other
action the department may deem necessary for the protection of a
child placed with the certified family home. The certified foster
parent or prospective foster parent shall be afforded the due process
provided pursuant to this chapter.

(4) If the department requires a foster family agency to deny or
revoke the certificate of approval, the department shall serve an
order of denial or revocation upon the certified or prospective
foster parent and foster family agency that shall notify the certified
or prospective foster parent of the basis of the department’s action
and of the certified or prospective foster parent’s right to a hearing.

(5) Within 15 days after the department serves an order of denial
or revocation, the certified or prospective foster parent may file a
written appeal of the department’s decision with the department.
The department’s action shall be final if the certified or prospective
foster parent does not file a written appeal within 15 days after the
department serves the denial or revocation order.

(6) The department’s order of the denial or revocation of the
certificate of approval shall remain in effect until the hearing is
completed and the director has made a final determination on the
merits.

(7) A certified or prospective foster parent who files a written
appeal of the department’s order with the department pursuant to
this section shall, as part of the written request, provide his or her
current mailing address. The certified or prospective foster parent
shall subsequently notify the department in writing of any change
in mailing address, until the hearing process has been completed
or terminated.

(8) Hearings held pursuant to this section shall be conducted in
accordance with Chapter 5 (commencing with Section 11500) of
Part 1 of Division 3 of Title 2 of the Government Code. In all
proceedings conducted in accordance with this section the standard
of proof shall be by a preponderance of the evidence.

(9) The department may institute or continue a disciplinary
proceeding against a certified or prospective foster parent upon
any ground provided by this section or Section 1550, enter an order
denying or revoking the certificate of approval, or otherwise take
disciplinary action against the certified or prospective foster parent,
notwithstanding any resignation, withdrawal of application,
surrender of the certificate of approval, or denial or revocation of
the certificate of approval by the foster family agency.

(10) A foster family agency’s failure to comply with the
department’s order to deny or revoke the certificate of approval
by placing or retaining children in care shall be grounds for
disciplining the licensee pursuant to Section 1550.

begin delete SEC. 272. end delete
begin insert SEC. 273. end insert   

Section 1546.1 of the Health and Safety Code is
amended to read:

1546.1.  

(a) (1) It is the intent of the Legislature in enacting
this section to authorize the department to take quick, effective
action to protect the health and safety of clients of community care
facilities and to minimize the effects of transfer trauma that
accompany the abrupt transfer of clients by appointing a temporary
manager to assume the operation of a facility that is found to be
in a condition in which continued operation by the licensee or his
or her representative presents a substantial probability of imminent
danger of serious physical harm or death to the clients.

(2) A temporary manager appointed pursuant to this section
shall assume the operation of the facility in order to bring it into
compliance with the law, facilitate a transfer of ownership to a
new licensee, or ensure the orderly transfer of clients should the
facility be required to close. Upon a final decision and order of
revocation of the license or a forfeiture by operation of law, the
department shall immediately issue a provisional license to the
appointed temporary manager. Notwithstanding the applicable
sections of this code governing the revocation of a provisional
license, the provisional license issued to a temporary manager shall
automatically expire upon the termination of the temporary
manager. The temporary manager shall possess the provisional
license solely for purposes of carrying out the responsibilities
authorized by this section and the duties set forth in the written
agreement between the department and the temporary manager.
The temporary manager does not have the right to appeal the
expiration of the provisional license.

(b) For purposes of this section, “temporary manager” means
the person, corporation, or other entity appointed temporarily by
the department as a substitute facility licensee or administrator
with authority to hire, terminate, reassign staff, obligate facility
funds, alter facility procedures, and manage the facility to correct
deficiencies identified in the facility’s operation. The temporary
manager has the final authority to direct the care and supervision
activities of any person associated with the facility, including
superseding the authority of the licensee and the administrator.

(c) The director may appoint a temporary manager when it is
determined that it is necessary to temporarily suspend any license
of a community care facility pursuant to Section 1550.5 and any
of the following circumstances exist:

(1) The immediate relocation of the clients is not feasible based
on transfer trauma, lack of alternate placements, or other emergency
considerations for the health and safety of the clients.

(2) The licensee is unwilling or unable to comply with the
requirements of Section 1556 for the safe and orderly relocation
of clients when ordered to do so by the department.

(d) (1) Upon appointment, the temporary manager shall
complete its application for a license to operate a community care
facility and take all necessary steps and make best efforts to
eliminate any substantial threat to the health and safety to clients
or complete the transfer of clients to alternative placements
pursuant to Section 1556. For purposes of a provisional license
issued to a temporary manager, the licensee’s existing fire safety
clearance shall serve as the fire safety clearance for the temporary
manager’s provisional license.

(2) A person shall not impede the operation of a temporary
manager. The temporary manager’s access to, or possession of,
the property shall not be interfered with during the term of the
temporary manager appointment. There shall be an automatic stay
for a 60-day period subsequent to the appointment of a temporary
manager of any action that would interfere with the functioning
of the facility, including, but not limited to, termination of utility
services, attachments or setoffs of client trust funds, and
repossession of equipment in the facility.

(e) (1) The appointment of a temporary manager shall be
immediately effective and shall continue for a period not to exceed
60 days unless otherwise extended in accordance with paragraph
(2) of subdivision (h) at the discretion of the department or
otherwise terminated earlier by any of the following events:

(A) The temporary manager notifies the department, and the
department verifies, that the facility meets state and, if applicable,
federal standards for operation, and will be able to continue to
maintain compliance with those standards after the termination of
the appointment of the temporary manager.

(B) The department approves a new temporary manager.

(C) A new operator is licensed.

(D) The department closes the facility.

(E) A hearing or court order ends the temporary manager
appointment, including the appointment of a receiver under Section
1546.2.

(F) The appointment is terminated by the department or the
temporary manager.

(2) The appointment of a temporary manager shall authorize
the temporary manager to act pursuant to this section. The
appointment shall be made pursuant to a written agreement between
the temporary manager and the department that outlines the
circumstances under which the temporary manager may expend
funds. The department shall provide the licensee and administrator
with a copy of the accusation to appoint a temporary manager at
the time of appointment. The accusation shall notify the licensee
of the licensee’s right to petition the Office of Administrative
Hearings for a hearing to contest the appointment of the temporary
manager as described in subdivision (f) and shall provide the
licensee with a form and appropriate information for the licensee’s
use in requesting a hearing.

(3) The director may rescind the appointment of a temporary
manager and appoint a new temporary manager at any time that
the director determines the temporary manager is not adhering to
the conditions of the appointment.

(f) (1) The licensee of a community care facility may contest
the appointment of the temporary manager by filing a petition for
an order to terminate the appointment of the temporary manager
with the Office of Administrative Hearings within 15 days from
the date of mailing of the accusation to appoint a temporary
manager under subdivision (e). On the same day the petition is
filed with the Office of Administrative Hearings, the licensee shall
serve a copy of the petition to the office of the director.

(2) Upon receipt of a petition under paragraph (1), the Office
of Administrative Hearings shall set a hearing date and time within
10 business days of the receipt of the petition. The office shall
promptly notify the licensee and the department of the date, time,
and place of the hearing. The office shall assign the case to an
administrative law judge. At the hearing, relevant evidence may
be presented pursuant to Section 11513 of the Government Code.
The administrative law judge shall issue a written decision on the
petition within 10 business days of the conclusion of the hearing.
The 10-day time period for holding the hearing and for rendering
a decision may be extended by the written agreement of the parties.

(3) The administrative law judge shall uphold the appointment
of the temporary manager if the department proves, by a
preponderance of the evidence, that the circumstances specified
in subdivision (c) applied to the facility at the time of the
appointment. The administrative law judge shall order the
termination of the temporary manager if the burden of proof is not
satisfied.

(4) The decision of the administrative law judge is subject to
judicial review as provided in Section 1094.5 of the Code of Civil
Procedure by the superior court of the county where the facility is
located. This review may be requested by the licensee of the facility
or the department by filing a petition seeking relief from the order.
The petition may also request the issuance of temporary injunctive
relief pending the decision on the petition. The superior court shall
hold a hearing within 10 business days of the filing of the petition
and shall issue a decision on the petition within 10 days of the
hearing. The department may be represented by legal counsel
within the department for purposes of court proceedings authorized
under this section.

(g) If the licensee of the community care facility does not protest
the appointment or does not prevail at either the administrative
hearing under paragraph (2) of subdivision (f) or the superior court
hearing under paragraph (4) of subdivision (f), the temporary
manager shall continue in accordance with subdivision (e).

(h) (1) If the licensee of the community care facility petitions
the Office of Administrative Hearings pursuant to subdivision (f),
the appointment of the temporary manager by the director pursuant
to this section shall continue until it is terminated by the
administrative law judge or by the superior court, or it shall
continue until the conditions of subdivision (e) are satisfied,
whichever is earlier.

(2) At any time during the appointment of the temporary
manager, the director may request an extension of the appointment
by filing a petition for hearing with the Office of Administrative
Hearings and serving a copy of the petition on the licensee. The
office shall proceed as specified in paragraph (2) of subdivision
(f). The administrative law judge may extend the appointment of
the temporary manager an additional 60 days upon a showing by
the department that the conditions specified in subdivision (c)
continue to exist.

(3) The licensee or the department may request review of the
administrative law judge’s decision on the extension as provided
in paragraph (4) of subdivision (f).

(i) The temporary manager appointed pursuant to this section
shall meet the following qualifications:

(1) Be qualified to oversee correction of deficiencies on the
basis of experience and education.

(2) Not be the subject of any pending actions by the department
or any other state agency nor have ever been excluded from a
department licensed facility or had a license or certification
suspended or revoked by an administrative action by the
department or any other state agency.

(3) Not have a financial ownership interest in the facility and
not have a member of his or her immediate family who has a
financial ownership interest in the facility.

(4) Not currently serve, or within the past two years have served,
as a member of the staff of the facility.

(j) Payment of the costs of the temporary manager shall comply
with the following requirements:

(1) Upon agreement with the licensee, the costs of the temporary
manager and any other expenses in connection with the temporary
management shall be paid directly by the facility while the
temporary manager is assigned to that facility. Failure of the
licensee to agree to the payment of those costs may result in the
payment of the costs by the department and subsequent required
reimbursement to the department by the licensee pursuant to this
section.

(2) Direct costs of the temporary manager shall be equivalent
to the sum of the following:

(A) The prevailing fee paid by licensees for positions of the
same type in the facility’s geographic area.

(B) Additional costs that reasonably would have been incurred
by the licensee if the licensee and the temporary manager had been
in an employment relationship.

(C) Any other reasonable costs incurred by the temporary
manager in furnishing services pursuant to this section.

(3) Direct costs may exceed the amount specified in paragraph
(2) if the department is otherwise unable to attract a qualified
temporary manager.

(k) (1) The responsibilities of the temporary manager may
include, but are not limited to, the following:

(A) Paying wages to staff. The temporary manager shall have
the full power to hire, direct, manage, and discharge employees
of the facility, subject to any contractual rights they may have.
The temporary manager shall pay employees at the same rate of
compensation, including benefits, that the employees would have
received from the licensee or wages necessary to provide adequate
staff for the protection of clients and compliance with the law.

(B) Preserving client funds. The temporary manager shall be
entitled to, and shall take possession of, all property or assets of
clients that are in the possession of the licensee or administrator
of the facility. The temporary manager shall preserve all property,
assets, and records of clients of which the temporary manager takes
possession.

(C) Contracting for outside services as may be needed for the
operation of the facility. Any contract for outside services in excess
of five thousand dollars ($5,000) shall be approved by the director.

(D) Paying commercial creditors of the facility to the extent
required to operate the facility. The temporary manager shall honor
all leases, mortgages, and secured transactions affecting the
building in which the facility is located and all goods and fixtures
in the building, but only to the extent of payments that, in the case
of a rental agreement, are for the use of the property during the
period of the temporary management, or that, in the case of a
purchase agreement, come due during the period of the temporary
management.

(E) Doing all things necessary and proper to maintain and
operate the facility in accordance with sound fiscal policies. The
temporary manager shall take action as is reasonably necessary to
protect or conserve the assets or property of which the temporary
manager takes possession and may use those assets or property
only in the performance of the powers and duties set out in this
section.

(2) Expenditures by the temporary manager in excess of five
thousand dollars ($5,000) shall be approved by the director. Total
encumbrances and expenditures by the temporary manager for the
duration of the temporary management shall not exceed the sum
of forty-nine thousand nine hundred ninety-nine dollars ($49,999)
unless approved by the director in writing.

(3) The temporary manager shall make no capital improvements
to the facility in excess of five thousand dollars ($5,000) without
the approval of the director.

(l) (1) To the extent department funds are advanced for the
costs of the temporary manager or for other expenses in connection
with the temporary management, the department shall be
reimbursed from the revenues accruing to the facility or to the
licensee or an entity related to the licensee. Any reimbursement
received by the department shall be redeposited in the account
from which the department funds were advanced. If the revenues
are insufficient to reimburse the department, the unreimbursed
amount shall constitute grounds for a monetary judgment in civil
court and a subsequent lien upon the assets of the facility or the
proceeds from the sale thereof. Pursuant to Chapter 2 (commencing
with Section 697.010) of Division 2 of Title 9 of Part 2 of the Code
of Civil Procedure, a lien against the personal assets of the facility
or an entity related to the licensee based on the monetary judgment
obtained shall be filed with the Secretary of State on the forms
required for a notice of judgment lien. A lien against the real
property of the facility or an entity related to the licensee based
on the monetary judgment obtained shall be recorded with the
county recorder of the county where the facility of the licensee is
located or where the real property of the entity related to the
licensee is located. The lien shall not attach to the interests of a
lessor, unless the lessor is operating the facility. The authority to
place a lien against the personal and real property of the licensee
for the reimbursement of any state funds expended pursuant to this
section shall be given judgment creditor priority.

(2) For purposes of this section, “entity related to the licensee”
means an entity, other than a natural person, of which the licensee
is a subsidiary or an entity in which a person who was obligated
to disclose information under Section 1520 possesses an interest
that would also require disclosure pursuant to Section 1520.

(m) Appointment of a temporary manager under this section
does not relieve the licensee of any responsibility for the care and
supervision of clients under this chapter. The licensee, even if the
license is deemed surrendered or the facility abandoned, shall be
required to reimburse the department for all costs associated with
operation of the facility during the period the temporary manager
is in place that are not accounted for by using facility revenues or
for the relocation of clients handled by the department if the
licensee fails to comply with the relocation requirements of Section
1556 when required by the department to do so. If the licensee
fails to reimburse the department under this section, then the
department, along with using its own remedies available under
this chapter, may request that the Attorney General’s office, the
city attorney’s office, or the local district attorney’s office seek
any available criminal, civil, or administrative remedy, including,
but not limited to, injunctive relief, restitution, and damages in the
same manner as provided for in Chapter 5 (commencing with
Section 17200) of Part 2 of Division 7 of the Business and
Professions Code.

(n) The department may use funds from the emergency client
contingency account pursuant to Section 1546 when needed to
supplement the operation of the facility or the transfer of clients
under the control of the temporary manager appointed under this
section if facility revenues are unavailable or exhausted when
needed. Pursuant to subdivision (l), the licensee shall be required
to reimburse the department for any funds used from the emergency
client contingency account during the period of control of the
temporary manager and any incurred costs of collection.

(o) This section does not apply to a residential facility that serves
six or fewer persons and is also the principal residence of the
licensee.

(p) Notwithstanding any other provision of law, the temporary
manager shall be liable only for damages resulting from gross
negligence in the operation of the facility or intentional tortious
acts.

(q) All governmental immunities otherwise applicable to the
state shall also apply to the state in the use of a temporary manager
in the operation of a facility pursuant to this section.

(r) A licensee shall not be liable for any occurrences during the
temporary management under this section except to the extent that
the occurrences are the result of the licensee’s conduct.

(s) The department may adopt regulations for the administration
of this section.

begin delete SEC. 273. end delete
begin insert SEC. 274. end insert   

Section 1546.2 of the Health and Safety Code is
amended to read:

1546.2.  

(a) It is the intent of the Legislature in enacting this
section to authorize the department to take quick, effective action
to protect the health and safety of residents of community care
facilities and to minimize the effects of transfer trauma that
accompany the abrupt transfer of clients through a system whereby
the department may apply for a court order appointing a receiver
to temporarily operate a community care facility. The receivership
is not intended to punish a licensee or to replace attempts to secure
cooperative action to protect the clients’ health and safety. The
receivership is intended to protect the clients in the absence of
other reasonably available alternatives. The receiver shall assume
the operation of the facility in order to bring it into compliance
with law, facilitate a transfer of ownership to a new licensee, or
ensure the orderly transfer of clients should the facility be required
to close.

(b) (1) Whenever circumstances exist indicating that continued
management of a community care facility by the current licensee
would present a substantial probability or imminent danger of
serious physical harm or death to the clients, or the facility is
closing or intends to terminate operation as a community care
facility and adequate arrangements for the relocation of clients
have not been made at least 30 days prior to the closing or
termination, the director may petition the superior court for the
county in which the community care facility is located for an order
appointing a receiver to temporarily operate the community care
facility in accordance with this section.

(2) The petition shall allege the facts upon which the action is
based and shall be supported by an affidavit of the director. A copy
of the petition and affidavit, together with an order to appear and
show cause why temporary authority to operate the community
care facility should not be vested in a receiver pursuant to this
section, shall be delivered to the licensee, administrator, or a
responsible person at the facility to the attention of the licensee
and administrator. The order shall specify a hearing date, which
shall be not less than 10, nor more than 15, days following delivery
of the petition and order upon the licensee, except that the court
may shorten or lengthen the time upon a showing of just cause.

(c) (1) If the director files a petition pursuant to subdivision (b)
for appointment of a receiver to operate a community care facility,
in accordance with Section 564 of the Code of Civil Procedure,
the director may also petition the court, in accordance with Section
527 of the Code of Civil Procedure, for an order appointing a
temporary receiver. A temporary receiver appointed by the court
pursuant to this subdivision shall serve until the court has made a
final determination on the petition for appointment of a receiver
filed pursuant to subdivision (b). A receiver appointed pursuant
to this subdivision shall have the same powers and duties as a
receiver would have if appointed pursuant to subdivision (b). Upon
the director filing a petition for a receiver, the receiver shall
complete its application for a provisional license to operate a
community care facility. For purposes of a provisional license
issued to a receiver, the licensee’s existing fire safety clearance
shall serve as the fire safety clearance for the receiver’s provisional
license.

(2) At the time of the hearing, the department shall advise the
licensee of the name of the proposed receiver. The receiver shall
be a certified community care facility administrator or other
responsible person or entity, as determined by the court, from a
list of qualified receivers established by the department, and, if
need be, with input from providers of residential care and consumer
representatives. Persons appearing on the list shall have experience
in the delivery of care services to clients of community care
facilities, and, if feasible, shall have experience with the operation
of a community care facility, shall not be the subject of any pending
actions by the department or any other state agency, and shall not
have ever been excluded from a department licensed facility nor
have had a license or certification suspended or revoked by an
administrative action by the department or any other state agency.
The receivers shall have sufficient background and experience in
management and finances to ensure compliance with orders issued
by the court. The owner, licensee, or administrator shall not be
appointed as the receiver unless authorized by the court.

(3) If at the conclusion of the hearing, which may include oral
testimony and cross-examination at the option of any party, the
court determines that adequate grounds exist for the appointment
of a receiver and that there is no other reasonably available remedy
to protect the clients, the court may issue an order appointing a
receiver to temporarily operate the community care facility and
enjoining the licensee from interfering with the receiver in the
conduct of his or her duties. In these proceedings, the court shall
make written findings of fact and conclusions of law and shall
require an appropriate bond to be filed by the receiver and paid
for by the licensee. The bond shall be in an amount necessary to
protect the licensee in the event of any failure on the part of the
receiver to act in a reasonable manner. The bond requirement may
be waived by the licensee.

(4) The court may permit the licensee to participate in the
continued operation of the facility during the pendency of any
receivership ordered pursuant to this section and shall issue an
order detailing the nature and scope of participation.

(5) Failure of the licensee to appear at the hearing on the petition
shall constitute an admission of all factual allegations contained
in the petition for purposes of these proceedings only.

(6) The licensee shall receive notice and a copy of the
application each time the receiver applies to the court or the
department for instructions regarding his or her duties under this
section, when an accounting pursuant to subdivision (i) is
submitted, and when any other report otherwise required under
this section is submitted. The licensee shall have an opportunity
to present objections or otherwise participate in those proceedings.

(d) A person shall not impede the operation of a receivership
created under this section. The receiver’s access to, or possession
of, the property shall not be interfered with during the term of the
receivership. There shall be an automatic stay for a 60-day period
subsequent to the appointment of a receiver of any action that
would interfere with the functioning of the facility, including, but
not limited to, cancellation of insurance policies executed by the
licensees, termination of utility services, attachments or setoffs of
client trust funds and working capital accounts, and repossession
of equipment in the facility.

(e) When a receiver is appointed, the licensee may, at the
discretion of the court, be divested of possession and control of
the facility in favor of the receiver. If the court divests the licensee
of possession and control of the facility in favor of the receiver,
the department shall immediately issue a provisional license to the
receiver. Notwithstanding the applicable sections of this code
governing the revocation of a provisional license, the provisional
license issued to a receiver shall automatically expire upon the
termination of the receivership. The receiver shall possess the
provisional license solely for purposes of carrying out the
responsibilities authorized by this section and the duties ordered
by the court. The receiver shall have no right to appeal the
expiration of the provisional license.

(f) A receiver appointed pursuant to this section:

(1) May exercise those powers and shall perform those duties
ordered by the court, in addition to other duties provided by statute.

(2) Shall operate the facility in a manner that ensures the safety
and adequate care for the clients.

(3) Shall have the same rights to possession of the building in
which the facility is located, and of all goods and fixtures in the
building at the time the petition for receivership is filed, as the
licensee and administrator would have had if the receiver had not
been appointed.

(4) May use the funds, building, fixtures, furnishings, and any
accompanying consumable goods in the provision of care and
services to clients and to any other persons receiving services from
the facility at the time the petition for receivership was filed.

(5) Shall take title to all revenue coming to the facility in the
name of the receiver who shall use it for the following purposes
in descending order of priority:

(A) To pay wages to staff. The receiver shall have full power
to hire, direct, manage, and discharge employees of the facility,
subject to any contractual rights they may have. The receiver shall
pay employees at the same rate of compensation, including
benefits, that the employees would have received from the licensee
or wages necessary to provide adequate staff for the protection of
the clients and compliance with the law.

(B) To preserve client funds. The receiver shall be entitled to,
and shall take, possession of all property or assets of clients that
are in the possession of the licensee or operator of the facility. The
receiver shall preserve all property, assets, and records of clients
of which the receiver takes possession.

(C) To contract for outside services as may be needed for the
operation of the community care facility. Any contract for outside
services in excess of five thousand dollars ($5,000) shall be
approved by the court.

(D) To pay commercial creditors of the facility to the extent
required to operate the facility. Except as provided in subdivision
(h), the receiver shall honor all leases, mortgages, and secured
transactions affecting the building in which the facility is located
and all goods and fixtures in the building of which the receiver
has taken possession, but only to the extent of payments which,
in the case of a rental agreement, are for the use of the property
during the period of receivership, or which, in the case of a
purchase agreement, come due during the period of receivership.

(E) To receive a salary, as approved by the court.

(F) To do all things necessary and proper to maintain and operate
the facility in accordance with sound fiscal policies. The receiver
shall take action as is reasonably necessary to protect or conserve
the assets or property of which the receiver takes possession and
may use those assets or property only in the performance of the
powers and duties set out in this section and by order of the court.

(G) To ask the court for direction in the treatment of debts
incurred prior to the appointment, if the licensee’s debts appear
extraordinary, of questionable validity, or unrelated to the normal
and expected maintenance and operation of the facility, or if
payment of the debts will interfere with the purposes of
receivership.

(g) (1) A person who is served with notice of an order of the
court appointing a receiver and of the receiver’s name and address
shall be liable to pay the receiver, rather than the licensee, for any
goods or services provided by the community care facility after
the date of the order. The receiver shall give a receipt for each
payment and shall keep a copy of each receipt on file. The receiver
shall deposit amounts received in a special account and shall use
this account for all disbursements. Payment to the receiver pursuant
to this subdivision shall discharge the obligation to the extent of
the payment and shall not thereafter be the basis of a claim by the
licensee or any other person. A client shall not be evicted nor may
any contract or rights be forfeited or impaired, nor may any
forfeiture be effected or liability increased, by reason of an
omission to pay the licensee, operator, or other person a sum paid
to the receiver pursuant to this subdivision.

(2) This section shall not be construed to suspend, during the
temporary management by the receiver, any obligation of the
licensee for payment of local, state, or federal taxes. A licensee
shall not be held liable for acts or omissions of the receiver during
the term of the temporary management.

(3) Upon petition of the receiver, the court may order immediate
payment to the receiver for past services that have been rendered
and billed, and the court may also order a sum not to exceed one
month’s advance payment to the receiver of any sums that may
become payable under the Medi-Cal program.

(h) (1) A receiver shall not be required to honor a lease,
mortgage, or secured transaction entered into by the licensee of
the facility and another party if the court finds that the agreement
between the parties was entered into for a collusive, fraudulent
purpose or that the agreement is unrelated to the operation of the
facility.

(2) A lease, mortgage, or secured transaction or an agreement
unrelated to the operation of the facility that the receiver is
permitted to dishonor pursuant to this subdivision shall only be
subject to nonpayment by the receiver for the duration of the
receivership, and the dishonoring of the lease, mortgage, security
interest, or other agreement, to this extent, by the receiver shall
not relieve the owner or operator of the facility from any liability
for the full amount due under the lease, mortgage, security interest,
or other agreement.

(3) If the receiver is in possession of real estate or goods subject
to a lease, mortgage, or security interest that the receiver is
permitted to dishonor pursuant to paragraph (1), and if the real
estate or goods are necessary for the continued operation of the
facility, the receiver may apply to the court to set a reasonable
rent, price, or rate of interest to be paid by the receiver during the
duration of the receivership. The court shall hold a hearing on this
application within 15 days. The receiver shall send notice of the
application to any known owner of the property involved at least
10 days prior to the hearing.

(4) Payment by the receiver of the amount determined by the
court to be reasonable is a defense to any action against the receiver
for payment or possession of the goods or real estate, subject to
the lease or mortgage, which is brought by any person who received
the notice required by this subdivision. However, payment by the
receiver of the amount determined by the court to be reasonable
shall not relieve the owner or operator of the facility from any
liability for the difference between the amount paid by the receiver
and the amount due under the original lease, mortgage, or security
interest.

(i) A monthly accounting shall be made by the receiver to the
department of all moneys received and expended by the receiver
on or before the 15th day of the following month or as ordered by
the court, and the remainder of income over expenses for that
month shall be returned to the licensee. A copy of the accounting
shall be provided to the licensee. The licensee or owner of the
community care facility may petition the court for a determination
as to the reasonableness of any expenditure made pursuant to
paragraph (5) of subdivision (f).

(j) (1) The receiver shall be appointed for an initial period of
not more than three months. The initial three-month period may
be extended for additional periods not exceeding three months, as
determined by the court pursuant to this section. At the end of one
month, the receiver shall report to the court on its assessment of
the probability that the community care facility will meet state
standards for operation by the end of the initial three-month period
and will continue to maintain compliance with those standards
after termination of the receiver’s management. If it appears that
the facility cannot be brought into compliance with state standards
within the initial three-month period, the court shall take
appropriate action as follows:

(A) Extend the receiver’s management for an additional three
months if there is a substantial likelihood that the facility will meet
state standards within that period and will maintain compliance
with the standards after termination of the receiver’s management.
The receiver shall report to the court in writing upon the facility’s
progress at the end of six weeks of any extension ordered pursuant
to this paragraph.

(B) Order the director to revoke or temporarily suspend, or both,
the license pursuant to Article 5 (commencing with Section 1550)
and extend the receiver’s management for the period necessary to
transfer clients in accordance with the transfer plan, but for not
more than three months from the date of initial appointment of a
receiver, or 14 days, whichever is greater. An extension of an
additional three months may be granted if deemed necessary by
the court.

(2) If it appears at the end of six weeks of an extension ordered
pursuant to subparagraph (A) of paragraph (1) that the facility
cannot be brought into compliance with state standards for
operation or that it will not maintain compliance with those
standards after the receiver’s management is terminated, the court
shall take appropriate action as specified in subparagraph (B) of
paragraph (1).

(3) In evaluating the probability that a community care facility
will maintain compliance with state standards of operation after
the termination of receiver management ordered by the court, the
court shall consider at least the following factors:

(A) The duration, frequency, and severity of past violations in
the facility.

(B) History of compliance in other care facilities operated by
the proposed licensee.

(C) Efforts by the licensee to prevent and correct past violations.

(D) The financial ability of the licensee to operate in compliance
with state standards.

(E) The recommendations and reports of the receiver.

(4) Management of a community care facility operated by a
receiver pursuant to this section shall not be returned to the
licensee, to any person related to the licensee, or to any person
who served as a member of the facility’s staff or who was
employed by the licensee prior to the appointment of the receiver
unless both of the following conditions are met:

(A) The department believes that it would be in the best interests
of the clients of the facility, requests that the court return the
operation of the facility to the former licensee, and provides clear
and convincing evidence to the court that it is in the best interests
of the facility’s clients to take that action.

(B) The court finds that the licensee has fully cooperated with
the department in the appointment and ongoing activities of a
receiver appointed pursuant to this section, and, if applicable, any
temporary manager appointed pursuant to Section 1546.1.

(5) The owner of the facility may at any time sell, lease, or close
the facility, subject to the following provisions:

(A) If the owner closes the facility, or the sale or lease results
in the closure of the facility, the court shall determine if a transfer
plan is necessary. If the court so determines, the court shall adopt
and implement a transfer plan consistent with the provisions of
Section 1556.

(B) If the licensee proposes to sell or lease the facility and the
facility will continue to operate as a community care facility, the
court and the department shall reevaluate any proposed transfer
plan. If the court and the department determine that the sale or
lease of the facility will result in compliance with licensing
standards, the transfer plan and the receivership shall, subject to
those conditions that the court may impose and enforce, be
terminated upon the effective date of the sale or lease.

(k) (1) The salary of the receiver shall be set by the court
commensurate with community care facility industry standards,
giving due consideration to the difficulty of the duties undertaken,
and shall be paid from the revenue coming to the facility. If the
revenue is insufficient to pay the salary in addition to other
expenses of operating the facility, the receiver’s salary shall be
paid from the emergency client contingency account as provided
in Section 1546. State advances of funds in excess of five thousand
dollars ($5,000) shall be approved by the director. Total advances
for encumbrances and expenditures shall not exceed the sum of
forty-nine thousand nine hundred ninety-nine dollars ($49,999)
unless approved by the director in writing.

(2) To the extent state funds are advanced for the salary of the
receiver or for other expenses in connection with the receivership,
as limited by subdivision (g), the state shall be reimbursed from
the revenues accruing to the facility or to the licensee or an entity
related to the licensee. Any reimbursement received by the state
shall be redeposited in the account from which the state funds were
advanced. If the revenues are insufficient to reimburse the state,
the unreimbursed amount shall constitute grounds for a monetary
judgment in civil court and a subsequent lien upon the assets of
the facility or the proceeds from the sale thereof. Pursuant to
Chapter 2 (commencing with Section 697.010) of Division 2 of
Title 9 of Part 2 of the Code of Civil Procedure, a lien against the
personal assets of the facility or an entity related to the licensee
based on the monetary judgment obtained shall be filed with the
Secretary of State on the forms required for a notice of judgment
lien. A lien against the real property of the facility or an entity
related to the licensee based on the monetary judgment obtained
shall be recorded with the county recorder of the county where the
facility of the licensee is located or where the real property of the
entity related to the licensee is located. The lien shall not attach
to the interests of a lessor, unless the lessor is operating the facility.
The authority to place a lien against the personal and real property
of the licensee for the reimbursement of any state funds expended
pursuant to this section shall be given judgment creditor priority.

(3) For purposes of this subdivision, “entity related to the
licensee” means an entity, other than a natural person, of which
the licensee is a subsidiary or an entity in which any person who
was obligated to disclose information under Section 1520 possesses
an interest that would also require disclosure pursuant to Section
1520.

(l) (1) This section does not impair the right of the owner of a
community care facility to dispose of his or her property interests
in the facility, but any facility operated by a receiver pursuant to
this section shall remain subject to that administration until
terminated by the court. The termination shall be promptly
effectuated, provided that the interests of the clients have been
safeguarded as determined by the court.

(2) This section does not limit the power of the court to appoint
a receiver under any other applicable provision of law or to order
any other remedy available under law.

(m) (1) Notwithstanding any other provision of law, the receiver
shall be liable only for damages resulting from gross negligence
in the operation of the facility or intentional tortious acts.

(2) All governmental immunities otherwise applicable to the
State of California shall also apply in the use of a receiver in the
operation of a facility pursuant to this section.

(3) The licensee shall not be liable for any occurrences during
the receivership except to the extent that the occurrences are the
result of the licensee’s conduct.

(n) The department may adopt regulations for the administration
of this section. This section does not impair the authority of the
department to temporarily suspend licenses under Section 1550.5
or to reach a voluntary agreement with the licensee for alternate
management of a community care facility including the use of a
temporary manager under Section 1546.1. This section does not
authorize the department to interfere in a labor dispute.

(o) This section does not apply to a residential facility that serves
six or fewer persons and is also the principal residence of the
licensee.

(p) This section does not apply to a licensee that has obtained
a certificate of authority to offer continuing care contracts, as
defined in paragraph (8) of subdivision (c) of Section 1771.

begin delete SEC. 274. end delete
begin insert SEC. 275. end insert   

Section 1562 of the Health and Safety Code is
amended to read:

1562.  

(a) The director shall ensure that operators and staffs of
community care facilities have appropriate training to provide the
care and services for which a license or certificate is issued. This
section does not apply to a facility licensed as an Adult Residential
Facility for Persons with Special Health Care Needs pursuant to
Article 9 (commencing with Section 1567.50).

(b) It is the intent of the Legislature that children in foster care
reside in the least restrictive, family-based settings that can meet
their needs, and that group homes will be used only for short-term,
specialized, and intensive treatment purposes that are consistent
with a case plan that is determined by a child’s best interests.
Accordingly, the Legislature encourages the department to adopt
policies, practices, and guidance that ensure that the education,
qualification, and training requirements for child care staff in group
homes are consistent with the intended role of group homes to
provide short-term, specialized, and intensive treatment, with a
particular focus on crisis intervention, behavioral stabilization,
and other treatment-related goals, as well as the connections
between those efforts and work toward permanency for children.

(c) (1) On and after October 1, 2014, each person employed as
a facility manager or staff member of a group home, as defined in
paragraph (13) of subdivision (a) of Section 1502, who provides
direct care and supervision to children and youth residing in the
group home shall be at least 21 years of age.

(2) Paragraph (1) does not apply to a facility manager or staff
member employed at the group home before October 1, 2014.

(3) For purposes of this subdivision, “group home” does not
include a runaway and homeless youth shelter.

begin delete SEC. 275. end delete
begin insert SEC. 276. end insert   

Section 1567.62 of the Health and Safety Code is
amended to read:

1567.62.  

(a) Each enhanced behavioral supports home shall
be licensed as an adult residential facility or a group home and
certified by the State Department of Developmental Services.

(b) A certificate of program approval issued by the State
Department of Developmental Services shall be a condition of
licensure for the enhanced behavioral supports home by the State
Department of Social Services.

(c) An enhanced behavioral supports home shall not be licensed
by the State Department of Social Services until the certificate of
program approval, granted by the State Department of
Developmental Services, has been received.

(d) Placements of dual agency clients into enhanced behavioral
supports homes that are licensed as group homes shall be subject
to the limitations on the duration of the placement set forth in
Sections 319.2 and 319.3 of, and subparagraph (A) of paragraph
(8) and subparagraph (A) of paragraph (9) of subdivision (e) of
Section 361.2 of, the Welfare and Institutions Code.

(e) For the purpose of this article, dual agency clients are foster
children in temporary custody of the child welfare agency under
Section 319 of the Welfare and Institutions Code or under the
jurisdiction of the juvenile court pursuant to Section 300, 450, 601,
or 602 of the Welfare and Institutions Code who are also either a
consumer of regional center services, or who are receiving services
under the California Early Intervention Services Act (Title 14
(commencing with Section 95000) of the Government Code) but
who are under three years of age and have not yet been determined
to have a developmental disability.

(f) The State Department of Social Services is not responsible
for any of the following:

(1) Developing and approving a consumer’s individual behavior
supports plan in conjunction with the consumer’s individual
behavior supports team.

(2) (A) Oversight of any services that may be provided by a
licensed health professional or licensed mental health professional
to a consumer.

(B) Services provided by a licensed health or licensed mental
health professional means services that may only be provided under
the authority of the licensed health service provider’s or licensed
mental health service provider’s professional license.

(g) Subdivision (f) does not limit the State Department of Social
Services’ ability to enforce Chapter 3 (commencing with Section
1500), and applicable regulations.

begin delete SEC. 276. end delete
begin insert SEC. 277. end insert   

Section 1567.69 of the Health and Safety Code is
amended to read:

1567.69.  

This article does not interfere with the authority of
the State Department of Social Services to temporarily suspend or
revoke the license of an enhanced behavioral supports home
pursuant to Section 1550.

begin delete SEC. 277. end delete
begin insert SEC. 278. end insert   

Section 1568.07 of the Health and Safety Code is
amended to read:

1568.07.  

(a) (1)  Within 90 days after a facility accepts its
first resident for placement following its initial licensure, the
department shall conduct an unannounced inspection of the facility
to evaluate compliance with rules and regulations and to assess
the facility’s continuing ability to meet regulatory requirements.
The licensee shall notify the department, within five business days
after accepting its first resident for placement, that the facility has
commenced operating.

(2) The department may take appropriate remedial action as
provided for in this chapter.

(b) (1) Every licensed residential care facility shall be
periodically inspected and evaluated for quality of care by a
representative or representatives designated by the director.
Unannounced inspections shall be conducted at least annually and
as often as necessary to ensure the quality of care being provided.

(2) During each licensing inspection the department shall
determine if the facility meets regulatory standards, including, but
not limited to, providing residents with the appropriate level of
care based on the facility’s license, providing adequate staffing
and services, updated resident records and assessments, and
compliance with basic health and safety standards.

(3) If the department determines that a resident requires a higher
level of care than the facility is authorized to provide, the
department may initiate a professional level of care assessment by
an assessor approved by the department. An assessment shall be
conducted in consultation with the resident, the resident’s physician
and surgeon, and the resident’s case manager, and shall reflect the
desires of the resident, the resident’s physician and surgeon, and
the resident’s case manager. The assessment also shall recognize
that certain illnesses are episodic in nature and that the resident’s
need for a higher level of care may be temporary.

(4) The department shall notify the residential care facility in
writing of all deficiencies in its compliance with this chapter and
the rules and regulations adopted pursuant to this chapter, and shall
set a reasonable length of time for compliance by the facility.

(5) Reports on the results of each inspection or consultation
shall be kept on file in the department, and all inspection reports,
consultation reports, lists of deficiencies, and plans of correction
shall be open to public inspection.

(c) Any duly authorized officer, employee, or agent of the
department may, upon presentation of proper identification, enter
and inspect any place providing personal care, supervision, and
services, at any time, with or without advance notice, to secure
compliance with, or to prevent a violation of, this chapter.

(d) A licensee, or officer or employee of the licensee, shall not
discriminate or retaliate in any manner, including, but not limited
to, eviction or threat of eviction, against any person receiving the
services of the licensee’s facility, or against any employee of the
licensee’s facility, on the basis, or for the reason, that the person
or employee or any other person initiated or participated in the
filing of a complaint, grievance, or a request for inspection with
the department pursuant to this chapter or initiated or participated
in the filing of a complaint, grievance, or request for investigation
with the appropriate local or state ombudsman.

(e) A person who, without lawful authorization from a duly
authorized officer, employee, or agent of the department, informs
an owner, operator, employee, agent, or resident of a residential
care facility, of an impending or proposed inspection of that facility
by personnel of the department, is guilty of a misdemeanor and
upon conviction thereof shall be punished by a fine not to exceed
one thousand dollars ($1,000), by imprisonment in the county jail
for a period not to exceed 180 days, or by both a fine and
imprisonment.

begin delete SEC. 278. end delete
begin insert SEC. 279. end insert   

Section 1568.0823 of the Health and Safety Code,
as added by Section 3 of Chapter 888 of the Statutes of 1991, is
amended and renumbered to read:

1568.0824.  

A person who, without lawful authorization from
a duly authorized officer, employee, or agent of the department,
informs an owner, operator, employee, agent, or resident of a
residential care facility for persons with a chronic, life-threatening
illness of an impending and unannounced site visit to that facility
by personnel of the department, is guilty of a misdemeanor and
upon conviction thereof shall be punished by a fine not to exceed
one thousand dollars ($1,000), by imprisonment in the county jail
for a period not to exceed 180 days, or by both a fine and
imprisonment.

begin delete SEC. 279. end delete
begin insert SEC. 280. end insert   

Section 1569.335 of the Health and Safety Code is
amended to read:

1569.335.  

(a) The department shall provide the Office of the
State Long-Term Care Ombudsman, as defined in subdivision (c)
of Section 9701 of the Welfare and Institutions Code, with a
precautionary notification if the department begins to prepare to
issue a temporary suspension or revocation of any license, so that
the office may properly prepare to provide advocacy services if
and when necessary.

(b) The department shall notify affected public placement
agencies and the Office of the State Long-Term Care Ombudsman
whenever the department substantiates that a violation has occurred
that poses a serious threat to the health and safety of any resident
when the violation results in the assessment of any penalty or
causes an accusation to be filed for the revocation of a license.

(c) (1) If the violation is appealed by the facility within 10 days,
the department shall only notify placement agencies of the violation
when the appeal has been exhausted.

(2) If the appeal process has not been completed within 60 days,
the placement agency shall be notified with a notation that indicates
that the case is still under appeal.

(3) The notice to each placement agency shall be updated
monthly for the following 24-month period and shall include the
name and location of the facility, the amount of the fine, the nature
of the violation, the corrective action taken, the status of the
revocation, and the resolution of the complaint.

begin delete SEC. 280. end delete
begin insert SEC. 281. end insert   

Section 1569.481 of the Health and Safety Code is
amended to read:

1569.481.  

(a) (1) It is the intent of the Legislature in enacting
this section to authorize the department to take quick, effective
action to protect the health and safety of residents of residential
care facilities for the elderly and to minimize the effects of transfer
trauma that accompany the abrupt transfer of residents by
appointing a temporary manager to assume the operation of a
facility that is found to be in a condition in which continued
operation by the licensee or his or her representative presents a
substantial probability of imminent danger of serious physical
harm or death to the residents.

(2) A temporary manager appointed pursuant to this section
shall assume the operation of the facility in order to bring it into
compliance with the law, facilitate a transfer of ownership to a
new licensee, or ensure the orderly transfer of residents should the
facility be required to close. Upon a final decision and order of
revocation of the license, issuance of a temporary suspension, or
a forfeiture by operation of law, the department shall immediately
issue a provisional license to the appointed temporary manager.
Notwithstanding the applicable sections of this code governing
the revocation of a provisional license, the provisional license
issued to a temporary manager shall automatically expire upon the
termination of the temporary manager. The temporary manager
shall possess the provisional license solely for purposes of carrying
out the responsibilities authorized by this section and the duties
set forth in the written agreement between the department and the
temporary manager. The temporary manager does not have the
right to appeal the expiration of the provisional license.

(b) For purposes of this section, “temporary manager” means
the person, corporation, or other entity appointed temporarily by
the department as a substitute facility licensee or administrator
with authority to hire, terminate, reassign staff, obligate facility
funds, alter facility procedures, and manage the facility to correct
deficiencies identified in the facility’s operation. The temporary
manager has the final authority to direct the care and supervision
activities of any person associated with the facility, including
superseding the authority of the licensee and the administrator.

(c) The director, in order to protect the residents of the facility
from physical or mental abuse, abandonment, or any other
substantial threat to health or safety, may appoint a temporary
manager when any of the following circumstances exist:

(1) The director determines that it is necessary to temporarily
suspend the license of a residential care facility for the elderly
pursuant to Section 1569.50 and the immediate relocation of the
residents is not feasible based on transfer trauma, lack of available
alternative placements, or other emergency considerations for the
health and safety of the residents.

(2) The licensee is unwilling or unable to comply with the
requirements of Section 1569.525 or the requirements of Section
1569.682 regarding the safe and orderly relocation of residents
when ordered to do so by the department or when otherwise
required by law.

(3) The licensee has opted to secure a temporary manager
pursuant to Section 1569.525.

(d) (1) Upon appointment, the temporary manager shall
complete its application for a license to operate a residential care
facility for the elderly and take all necessary steps and make best
efforts to eliminate any substantial threat to the health and safety
to residents or complete the transfer of residents to alternative
placements pursuant to Section 1569.525 or 1569.682. For purposes
of a provisional license issued to a temporary manager, the
licensee’s existing fire safety clearance shall serve as the fire safety
clearance for the temporary manager’s provisional license.

(2) A person shall not impede the operation of a temporary
manager. The temporary manager’s access to, or possession of,
the property shall not be interfered with during the term of the
temporary manager’s appointment. There shall be an automatic
stay for a 60-day period subsequent to the appointment of a
temporary manager of any action that would interfere with the
functioning of the facility, including, but not limited to, termination
of utility services, attachments, or setoffs of resident trust funds,
and repossession of equipment in the facility.

(e) (1) The appointment of a temporary manager shall be
immediately effective and shall continue for a period not to exceed
60 days unless otherwise extended in accordance with paragraph
(2) of subdivision (h) at the discretion of the department or as
permitted by paragraph (2) of subdivision (d) of Section 1569.525,
or unless otherwise terminated earlier by any of the following
events:

(A) The temporary manager notifies the department, and the
department verifies, that the facility meets state and, if applicable,
federal standards for operation, and will be able to continue to
maintain compliance with those standards after the termination of
the appointment of the temporary manager.

(B) The department approves a new temporary manager.

(C) A new operator is licensed.

(D) The department closes the facility.

(E) A hearing or court order ends the temporary manager
appointment, including the appointment of a receiver under Section
1569.482.

(F) The appointment is terminated by the department or the
temporary manager.

(2) The appointment of a temporary manager shall authorize
the temporary manager to act pursuant to this section. The
appointment shall be made pursuant to a written agreement between
the temporary manager and the department that outlines the
circumstances under which the temporary manager may expend
funds. The department shall provide the licensee and administrator
with a copy of the accusation to appoint a temporary manager at
the time of appointment. The accusation shall notify the licensee
of the licensee’s right to petition the Office of Administrative
Hearings for a hearing to contest the appointment of the temporary
manager as described in subdivision (f) and shall provide the
licensee with a form and appropriate information for the licensee’s
use in requesting a hearing.

(3) The director may rescind the appointment of a temporary
manager and appoint a new temporary manager at any time that
the director determines the temporary manager is not adhering to
the conditions of the appointment.

(f) (1) The licensee of a residential care facility for the elderly
may contest the appointment of the temporary manager by filing
a petition for an order to terminate the appointment of the
temporary manager with the Office of Administrative Hearings
within 15 days from the date of mailing of the accusation to appoint
a temporary manager under subdivision (e). On the same day the
petition is filed with the Office of Administrative Hearings, the
licensee shall serve a copy of the petition to the office of the
director.

(2) Upon receipt of a petition under paragraph (1), the Office
of Administrative Hearings shall set a hearing date and time within
10 business days of the receipt of the petition. The office shall
promptly notify the licensee and the department of the date, time,
and place of the hearing. The office shall assign the case to an
administrative law judge. At the hearing, relevant evidence may
be presented pursuant to Section 11513 of the Government Code.
The administrative law judge shall issue a written decision on the
petition within 10 business days of the conclusion of the hearing.
The 10-day time period for holding the hearing and for rendering
a decision may be extended by the written agreement of the parties.

(3) The administrative law judge shall uphold the appointment
of the temporary manager if the department proves, by a
preponderance of the evidence, that the circumstances specified
in subdivision (c) applied to the facility at the time of the
appointment. The administrative law judge shall order the
termination of the temporary manager if the burden of proof is not
satisfied.

(4) The decision of the administrative law judge is subject to
judicial review as provided in Section 1094.5 of the Code of Civil
Procedure by the superior court of the county where the facility is
located. This review may be requested by the licensee of the facility
or the department by filing a petition seeking relief from the order.
The petition may also request the issuance of temporary injunctive
relief pending the decision on the petition. The superior court shall
hold a hearing within 10 business days of the filing of the petition
and shall issue a decision on the petition within 10 days of the
hearing. The department may be represented by legal counsel
within the department for purposes of court proceedings authorized
under this section.

(g) If the licensee does not protest the appointment or does not
prevail at either the administrative hearing under paragraph (2) of
subdivision (f) or the superior court hearing under paragraph (4)
of subdivision (f), the temporary manager shall continue in
accordance with subdivision (e).

(h) (1) If the licensee petitions the Office of Administrative
Hearings pursuant to subdivision (f), the appointment of the
temporary manager by the director pursuant to this section shall
continue until it is terminated by the administrative law judge or
by the superior court, or it shall continue until the conditions of
subdivision (e) are satisfied, whichever is earlier.

(2) At any time during the appointment of the temporary
manager, the director may request an extension of the appointment
by filing a petition for hearing with the Office of Administrative
Hearings and serving a copy of the petition on the licensee. The
office shall proceed as specified in paragraph (2) of subdivision
(f). The administrative law judge may extend the appointment of
the temporary manager an additional 60 days upon a showing by
the department that the conditions specified in subdivision (c)
continue to exist.

(3) The licensee or the department may request review of the
administrative law judge’s decision on the extension as provided
in paragraph (4) of subdivision (f).

(i) The temporary manager appointed pursuant to this section
shall meet the following qualifications:

(1) Be qualified to oversee correction of deficiencies in a
residential care facility for the elderly on the basis of experience
and education.

(2) Not be the subject of any pending actions by the department
or any other state agency nor have ever been excluded from a
department-licensed facility or had a license or certification
suspended or revoked by an administrative action by the
department or any other state agency.

(3) Not have a financial ownership interest in the facility and
not have a member of his or her immediate family who has a
financial ownership interest in the facility.

(4) Not currently serve, or within the past two years have served,
as a member of the staff of the facility.

(j) Payment of the costs of the temporary manager shall comply
with the following requirements:

(1) Upon agreement with the licensee, the costs of the temporary
manager and any other expenses in connection with the temporary
management shall be paid directly by the facility while the
temporary manager is assigned to that facility. Failure of the
licensee to agree to the payment of those costs may result in the
payment of the costs by the department and subsequent required
reimbursement of the department by the licensee pursuant to this
section.

(2) Direct costs of the temporary manager shall be equivalent
to the sum of the following:

(A) The prevailing fee paid by licensees for positions of the
same type in the facility’s geographic area.

(B) Additional costs that reasonably would have been incurred
by the licensee if the licensee and the temporary manager had been
in an employment relationship.

(C) Other reasonable costs incurred by the temporary manager
in furnishing services pursuant to this section.

(3) Direct costs may exceed the amount specified in paragraph
(2) if the department is otherwise unable to find a qualified
temporary manager.

(k) (1) The responsibilities of the temporary manager may
include, but are not limited to, the following:

(A) Paying wages to staff. The temporary manager shall have
the full power to hire, direct, manage, and discharge employees
of the facility, subject to any contractual rights they may have.
The temporary manager shall pay employees at the same rate of
compensation, including benefits, that the employees would have
received from the licensee or wages necessary to provide adequate
staff for the protection of clients and compliance with the law.

(B) Preserving resident funds. The temporary manager shall be
entitled to, and shall take possession of, all property or assets of
residents that are in the possession of the licensee or administrator
of the facility. The temporary manager shall preserve all property,
assets, and records of residents of which the temporary manager
takes possession.

(C) Contracting for outside services as may be needed for the
operation of the facility. A contract for outside services in excess
of five thousand dollars ($5,000) shall be approved by the director.

(D) Paying commercial creditors of the facility to the extent
required to operate the facility. The temporary manager shall honor
all leases, mortgages, and secured transactions affecting the
building in which the facility is located and all goods and fixtures
in the building, but only to the extent of payments that, in the case
of a rental agreement, are for the use of the property during the
period of the temporary management, or that, in the case of a
purchase agreement, come due during the period of the temporary
management.

(E) Performing all acts that are necessary and proper to maintain
and operate the facility in accordance with sound fiscal policies.
The temporary manager shall take action as is reasonably necessary
to protect or conserve the assets or property of which the temporary
manager takes possession and may use those assets or property
only in the performance of the powers and duties set forth in this
section.

(2) Expenditures by the temporary manager in excess of five
thousand dollars ($5,000) shall be approved by the director. Total
encumbrances and expenditures by the temporary manager for the
duration of the temporary management shall not exceed the sum
of forty-nine thousand nine hundred ninety-nine dollars ($49,999)
unless approved by the director in writing.

(3) The temporary manager shall not make capital improvements
to the facility in excess of five thousand dollars ($5,000) without
the approval of the director.

(l) (1) To the extent department funds are advanced for the
costs of the temporary manager or for other expenses in connection
with the temporary management, the department shall be
reimbursed from the revenues accruing to the facility or to the
licensee or an entity related to the licensee. Any reimbursement
received by the department shall be redeposited in the account
from which the department funds were advanced. If the revenues
are insufficient to reimburse the department, the unreimbursed
amount shall constitute grounds for a monetary judgment in civil
court and a subsequent lien upon the assets of the facility or the
proceeds from the sale thereof. Pursuant to Chapter 2 (commencing
with Section 697.010) of Division 2 of Title 9 of Part 2 of the Code
of Civil Procedure, a lien against the personal assets of the facility
or an entity related to the licensee based on the monetary judgment
obtained shall be filed with the Secretary of State on the forms
required for a notice of judgment lien. A lien against the real
property of the facility or an entity related to the licensee based
on the monetary judgment obtained shall be recorded with the
county recorder of the county where the facility of the licensee is
located or where the real property of the entity related to the
licensee is located. The lien shall not attach to the interests of a
lessor, unless the lessor is operating the facility. The authority to
place a lien against the personal and real property of the licensee
for the reimbursement of any state funds expended pursuant to this
section shall be given judgment creditor priority.

(2) For purposes of this section, “entity related to the licensee”
means an entity, other than a natural person, of which the licensee
is a subsidiary or an entity in which a person who was obligated
to disclose information under Section 1569.15 possesses an interest
that would also require disclosure pursuant to Section 1569.15.

(m) Appointment of a temporary manager under this section
does not relieve the licensee of any responsibility for the care and
supervision of residents under this chapter. The licensee, even if
the license is deemed surrendered or the facility abandoned, shall
be required to reimburse the department for all costs associated
with operation of the facility during the period the temporary
manager is in place that are not accounted for by using facility
revenues or for the relocation of residents handled by the
department if the licensee fails to comply with the relocation
requirements of Section 1569.525 or 1569.682 when required by
the department to do so. If the licensee fails to reimburse the
department under this section, then the department, along with
using its own remedies available under this chapter, may request
that the Attorney General’s office, the city attorney’s office, or the
local district attorney’s office seek any available criminal, civil,
or administrative remedy, including, but not limited to, injunctive
relief, restitution, and damages in the same manner as provided
for in Chapter 5 (commencing with Section 17200) of Part 2 of
Division 7 of the Business and Professions Code.

(n) The department may use funds from the emergency resident
contingency account pursuant to Section 1569.48 when needed to
supplement the operation of the facility or the transfer of residents
under the control of the temporary manager appointed under this
section if facility revenues are unavailable or exhausted when
needed. Pursuant to subdivision (l), the licensee shall be required
to reimburse the department for any funds used from the emergency
resident contingency account during the period of control of the
temporary manager and any incurred costs of collection.

(o) This section does not apply to a residential care facility for
the elderly that serves six or fewer persons and is also the principal
residence of the licensee.

(p) Notwithstanding any other provision of law, the temporary
manager shall be liable only for damages resulting from gross
negligence in the operation of the facility or intentional tortious
acts.

(q) All governmental immunities otherwise applicable to the
state shall also apply to the state in the use of a temporary manager
in the operation of a facility pursuant to this section.

(r) A licensee is not liable for any occurrences during the
temporary management under this section except to the extent that
the occurrences are the result of the licensee’s conduct.

(s) The department may adopt regulations for the administration
of this section.

begin delete SEC. 281. end delete
begin insert SEC. 282. end insert   

Section 1569.482 of the Health and Safety Code is
amended to read:

1569.482.  

(a) It is the intent of the Legislature in enacting this
section to authorize the department to take quick, effective action
to protect the health and safety of residents of residential care
facilities for the elderly and to minimize the effects of transfer
trauma that accompany the abrupt transfer of residents through a
system whereby the department may apply for a court order
appointing a receiver to temporarily operate a residential care
facility for the elderly. The receivership is not intended to punish
a licensee or to replace attempts to secure cooperative action to
protect the residents’ health and safety. The receivership is intended
to protect the residents in the absence of other reasonably available
alternatives. The receiver shall assume the operation of the facility
in order to bring it into compliance with law, facilitate a transfer
of ownership to a new licensee, or ensure the orderly transfer of
residents should the facility be required to close.

(b) (1) Whenever circumstances exist indicating that continued
management of a residential care facility by the current licensee
would present a substantial probability or imminent danger of
serious physical harm or death to the residents, or the facility is
closing or intends to terminate operation as a residential care
facility for the elderly and adequate arrangements for the relocation
of residents have not been made at least 30 days prior to the closing
or termination, the director may petition the superior court for the
county in which the facility is located for an order appointing a
receiver to temporarily operate the facility in accordance with this
section.

(2) The petition shall allege the facts upon which the action is
based and shall be supported by an affidavit of the director. A copy
of the petition and affidavit together with an order to appear and
show cause why temporary authority to operate the residential care
facility for the elderly should not be vested in a receiver pursuant
to this section, shall be delivered to the licensee, administrator, or
a responsible person at the facility to the attention of the licensee
and administrator. The order shall specify a hearing date, which
shall be not less than 10, nor more than 15, days following delivery
of the petition and order upon the licensee, except that the court
may shorten or lengthen the time upon a showing of just cause.

(c) (1) If the director files a petition pursuant to subdivision (b)
for appointment of a receiver to operate a residential care facility
for the elderly, in accordance with Section 564 of the Code of Civil
Procedure, the director may also petition the court, in accordance
with Section 527 of the Code of Civil Procedure, for an order
appointing a temporary receiver. A temporary receiver appointed
by the court pursuant to this subdivision shall serve until the court
has made a final determination on the petition for appointment of
a receiver filed pursuant to subdivision (b). A receiver appointed
pursuant to this subdivision shall have the same powers and duties
as a receiver would have if appointed pursuant to subdivision (b).
Upon the director filing a petition for a receiver, the receiver shall
complete its application for a provisional license to operate a
residential care facility for the elderly. For purposes of a
provisional license issued to a receiver, the licensee’s existing fire
safety clearance shall serve as the fire safety clearance for the
receiver’s provisional license.

(2) At the time of the hearing, the department shall advise the
licensee of the name of the proposed receiver. The receiver shall
be a certified residential care facility for the elderly administrator
or other responsible person or entity, as determined by the court,
from a list of qualified receivers established by the department,
and, if need be, with input from providers of residential care and
consumer representatives. Persons appearing on the list shall have
experience in the delivery of care services to clients of community
care facilities, and, if feasible, shall have experience with the
operation of a residential care facility for the elderly, shall not be
the subject of any pending actions by the department or any other
state agency, and shall not have ever been excluded from a
department licensed facility nor have had a license or certification
suspended or revoked by an administrative action by the
department or any other state agency. The receivers shall have
sufficient background and experience in management and finances
to ensure compliance with orders issued by the court. The owner,
licensee, or administrator shall not be appointed as the receiver
unless authorized by the court.

(3) If at the conclusion of the hearing, which may include oral
testimony and cross-examination at the option of any party, the
court determines that adequate grounds exist for the appointment
of a receiver and that there is no other reasonably available remedy
to protect the residents, the court may issue an order appointing a
receiver to temporarily operate the residential care facility for the
elderly and enjoining the licensee from interfering with the receiver
in the conduct of his or her duties. In these proceedings, the court
shall make written findings of fact and conclusions of law and
shall require an appropriate bond to be filed by the receiver and
paid for by the licensee. The bond shall be in an amount necessary
to protect the licensee in the event of any failure on the part of the
receiver to act in a reasonable manner. The bond requirement may
be waived by the licensee.

(4) The court may permit the licensee to participate in the
continued operation of the facility during the pendency of any
receivership ordered pursuant to this section and shall issue an
order detailing the nature and scope of participation.

(5) Failure of the licensee to appear at the hearing on the petition
shall constitute an admission of all factual allegations contained
in the petition for purposes of these proceedings only.

(6) The licensee shall receive notice and a copy of the
application each time the receiver applies to the court or the
department for instructions regarding his or her duties under this
section, when an accounting pursuant to subdivision (i) is
submitted, and when any other report otherwise required under
this section is submitted. The licensee shall have an opportunity
to present objections or otherwise participate in those proceedings.

(d) A person shall not impede the operation of a receivership
created under this section. The receiver’s access to, or possession
of, the property shall not be interfered with during the term of the
receivership. There shall be an automatic stay for a 60-day period
subsequent to the appointment of a receiver of any action that
would interfere with the functioning of the facility, including, but
not limited to, cancellation of insurance policies executed by the
licensees, termination of utility services, attachments, or setoffs
of resident trust funds and working capital accounts and
repossession of equipment in the facility.

(e) When a receiver is appointed, the licensee may, at the
discretion of the court, be divested of possession and control of
the facility in favor of the receiver. If the court divests the licensee
of possession and control of the facility in favor of the receiver,
the department shall immediately issue a provisional license to the
receiver. Notwithstanding the applicable sections of this code
governing the revocation of a provisional license, the provisional
license issued to a receiver shall automatically expire upon the
termination of the receivership. The receiver shall possess the
provisional license solely for purposes of carrying out the
responsibilities authorized by this section and the duties ordered
by the court. The receiver shall have no right to appeal the
expiration of the provisional license.

(f) A receiver appointed pursuant to this section:

(1) May exercise those powers and shall perform those duties
ordered by the court, in addition to other duties provided by statute.

(2) Shall operate the facility in a manner that ensures the safety
and adequate care for the residents.

(3) Shall have the same rights to possession of the building in
which the facility is located, and of all goods and fixtures in the
building at the time the petition for receivership is filed, as the
licensee and administrator would have had if the receiver had not
been appointed.

(4) May use the funds, building, fixtures, furnishings, and any
accompanying consumable goods in the provision of care and
services to residents and to any other persons receiving services
from the facility at the time the petition for receivership was filed.

(5) Shall take title to all revenue coming to the facility in the
name of the receiver who shall use it for the following purposes
in descending order of priority:

(A) To pay wages to staff. The receiver shall have full power
to hire, direct, manage, and discharge employees of the facility,
subject to any contractual rights they may have. The receiver shall
pay employees at the same rate of compensation, including
benefits, that the employees would have received from the licensee
or wages necessary to provide adequate staff for the protection of
the clients and compliance with the law.

(B) To preserve resident funds. The receiver shall be entitled
to, and shall take, possession of all property or assets of residents
that are in the possession of the licensee or operator of the facility.
The receiver shall preserve all property, assets, and records of
residents of which the receiver takes possession.

(C) To contract for outside services as may be needed for the
operation of the residential care facility for the elderly. A contract
for outside services in excess of five thousand dollars ($5,000)
shall be approved by the court.

(D) To pay commercial creditors of the facility to the extent
required to operate the facility. Except as provided in subdivision
(h), the receiver shall honor all leases, mortgages, and secured
transactions affecting the building in which the facility is located
and all goods and fixtures in the building of which the receiver
has taken possession, but only to the extent of payments which,
in the case of a rental agreement, are for the use of the property
during the period of receivership, or which, in the case of a
purchase agreement, come due during the period of receivership.

(E) To receive a salary, as approved by the court.

(F) To do all things necessary and proper to maintain and operate
the facility in accordance with sound fiscal policies. The receiver
shall take action as is reasonably necessary to protect or conserve
the assets or property of which the receiver takes possession and
may use those assets or property only in the performance of the
powers and duties set out in this section and by order of the court.

(G) To ask the court for direction in the treatment of debts
incurred prior to the appointment, if the licensee’s debts appear
extraordinary, of questionable validity, or unrelated to the normal
and expected maintenance and operation of the facility, or if
payment of the debts will interfere with the purposes of
receivership.

(g) (1) A person who is served with notice of an order of the
court appointing a receiver and of the receiver’s name and address
shall be liable to pay the receiver, rather than the licensee, for any
goods or services provided by the residential care facility for the
elderly after the date of the order. The receiver shall give a receipt
for each payment and shall keep a copy of each receipt on file.
The receiver shall deposit amounts received in a special account
and shall use this account for all disbursements. Payment to the
receiver pursuant to this subdivision shall discharge the obligation
to the extent of the payment and shall not thereafter be the basis
of a claim by the licensee or any other person. A resident shall not
be evicted nor may any contract or rights be forfeited or impaired,
nor may any forfeiture be effected or liability increased, by reason
of an omission to pay the licensee, operator, or other person a sum
paid to the receiver pursuant to this subdivision.

(2) This section shall not be construed to suspend, during the
temporary management by the receiver, any obligation of the
licensee for payment of local, state, or federal taxes. A licensee
shall not be held liable for acts or omissions of the receiver during
the term of the temporary management.

(3) Upon petition of the receiver, the court may order immediate
payment to the receiver for past services that have been rendered
and billed, and the court may also order a sum not to exceed one
month’s advance payment to the receiver of any sums that may
become payable under the Medi-Cal program.

(h) (1) A receiver shall not be required to honor a lease,
mortgage, or secured transaction entered into by the licensee of
the facility and another party if the court finds that the agreement
between the parties was entered into for a collusive, fraudulent
purpose or that the agreement is unrelated to the operation of the
facility.

(2) A lease, mortgage, or secured transaction or an agreement
unrelated to the operation of the facility that the receiver is
permitted to dishonor pursuant to this subdivision shall only be
subject to nonpayment by the receiver for the duration of the
receivership, and the dishonoring of the lease, mortgage, security
interest, or other agreement, to this extent, by the receiver shall
not relieve the owner or operator of the facility from any liability
for the full amount due under the lease, mortgage, security interest,
or other agreement.

(3) If the receiver is in possession of real estate or goods subject
to a lease, mortgage, or security interest that the receiver is
permitted to dishonor pursuant to paragraph (1), and if the real
estate or goods are necessary for the continued operation of the
facility, the receiver may apply to the court to set a reasonable
rent, price, or rate of interest to be paid by the receiver during the
duration of the receivership. The court shall hold a hearing on this
application within 15 days. The receiver shall send notice of the
application to any known owner of the property involved at least
10 days prior to the hearing.

(4) Payment by the receiver of the amount determined by the
court to be reasonable is a defense to any action against the receiver
for payment or possession of the goods or real estate, subject to
the lease or mortgage, which is brought by any person who received
the notice required by this subdivision. However, payment by the
receiver of the amount determined by the court to be reasonable
does not relieve the owner or operator of the facility from any
liability for the difference between the amount paid by the receiver
and the amount due under the original lease, mortgage, or security
interest.

(i) A monthly accounting shall be made by the receiver to the
department of all moneys received and expended by the receiver
on or before the 15th day of the following month or as ordered by
the court, and the remainder of income over expenses for that
month shall be returned to the licensee. A copy of the accounting
shall be provided to the licensee. The licensee or owner of the
residential care facility for the elderly may petition the court for
a determination as to the reasonableness of any expenditure made
pursuant to paragraph (5) of subdivision (f).

(j) (1) The receiver shall be appointed for an initial period of
not more than three months. The initial three-month period may
be extended for additional periods not exceeding three months, as
determined by the court pursuant to this section. At the end of one
month, the receiver shall report to the court on its assessment of
the probability that the residential care facility for the elderly will
meet state standards for operation by the end of the initial
three-month period and will continue to maintain compliance with
those standards after termination of the receiver’s management.
If it appears that the facility cannot be brought into compliance
with state standards within the initial three-month period, the court
shall take appropriate action as follows:

(A) Extend the receiver’s management for an additional three
months if there is a substantial likelihood that the facility will meet
state standards within that period and will maintain compliance
with the standards after termination of the receiver’s management.
The receiver shall report to the court in writing upon the facility’s
progress at the end of six weeks of any extension ordered pursuant
to this paragraph.

(B) Order the director to revoke or temporarily suspend, or both,
the license pursuant to Section 1569.50 and extend the receiver’s
management for the period necessary to transfer clients in
accordance with the transfer plan, but for not more than three
months from the date of initial appointment of a receiver, or 14
days, whichever is greater. An extension of an additional three
months may be granted if deemed necessary by the court.

(2) If it appears at the end of six weeks of an extension ordered
pursuant to subparagraph (A) of paragraph (1) that the facility
cannot be brought into compliance with state standards for
operation or that it will not maintain compliance with those
standards after the receiver’s management is terminated, the court
shall take appropriate action as specified in subparagraph (B) of
paragraph (1).

(3) In evaluating the probability that a residential care facility
for the elderly will maintain compliance with state standards of
operation after the termination of receiver management ordered
by the court, the court shall consider at least the following factors:

(A) The duration, frequency, and severity of past violations in
the facility.

(B) History of compliance in other care facilities operated by
the proposed licensee.

(C) Efforts by the licensee to prevent and correct past violations.

(D) The financial ability of the licensee to operate in compliance
with state standards.

(E) The recommendations and reports of the receiver.

(4) Management of a residential care facility for the elderly
operated by a receiver pursuant to this section shall not be returned
to the licensee, to any person related to the licensee, or to any
person who served as a member of the facility’s staff or who was
employed by the licensee prior to the appointment of the receiver
unless both of the following conditions are met:

(A) The department believes that it would be in the best interests
of the residents of the facility, requests that the court return the
operation of the facility to the former licensee, and provides clear
and convincing evidence to the court that it is in the best interests
of the facility’s residents to take that action.

(B) The court finds that the licensee has fully cooperated with
the department in the appointment and ongoing activities of a
receiver appointed pursuant to this section, and, if applicable, any
temporary manager appointed pursuant to Section 1569.481.

(5) The owner of the facility may at any time sell, lease, or close
the facility, subject to the following provisions:

(A) If the owner closes the facility, or the sale or lease results
in the closure of the facility, the court shall determine if a transfer
plan is necessary. If the court so determines, the court shall adopt
and implement a transfer plan consistent with the provisions of
Section 1569.682.

(B) If the licensee proposes to sell or lease the facility and the
facility will continue to operate as a residential care facility for
the elderly, the court and the department shall reevaluate any
proposed transfer plan. If the court and the department determine
that the sale or lease of the facility will result in compliance with
licensing standards, the transfer plan and the receivership shall,
subject to those conditions that the court may impose and enforce,
be terminated upon the effective date of the sale or lease.

(k) (1) The salary of the receiver shall be set by the court
commensurate with community care facility industry standards,
giving due consideration to the difficulty of the duties undertaken,
and shall be paid from the revenue coming to the facility. If the
revenue is insufficient to pay the salary in addition to other
expenses of operating the facility, the receiver’s salary shall be
paid from the emergency resident contingency account as provided
in Section 1569.48. State advances of funds in excess of five
thousand dollars ($5,000) shall be approved by the director. Total
advances for encumbrances and expenditures shall not exceed the
sum of forty-nine thousand nine hundred ninety-nine dollars
($49,999) unless approved by the director in writing.

(2) To the extent state funds are advanced for the salary of the
receiver or for other expenses in connection with the receivership,
as limited by subdivision (g), the state shall be reimbursed from
the revenues accruing to the facility or to the licensee or an entity
related to the licensee. Reimbursement received by the state shall
be redeposited in the account from which the state funds were
advanced. If the revenues are insufficient to reimburse the state,
the unreimbursed amount shall constitute grounds for a monetary
judgment in civil court and a subsequent lien upon the assets of
the facility or the proceeds from the sale thereof. Pursuant to
Chapter 2 (commencing with Section 697.010) of Division 2 of
Title 9 of Part 2 of the Code of Civil Procedure, a lien against the
personal assets of the facility or an entity related to the licensee
based on the monetary judgment obtained shall be filed with the
Secretary of State on the forms required for a notice of judgment
lien. A lien against the real property of the facility or an entity
related to the licensee based on the monetary judgment obtained
shall be recorded with the county recorder of the county where the
facility of the licensee is located or where the real property of the
entity related to the licensee is located. The lien shall not attach
to the interests of a lessor, unless the lessor is operating the facility.
The authority to place a lien against the personal and real property
of the licensee for the reimbursement of any state funds expended
pursuant to this section shall be given judgment creditor priority.

(3) For purposes of this subdivision, “entity related to the
licensee” means an entity, other than a natural person, of which
the licensee is a subsidiary or an entity in which any person who
was obligated to disclose information under Section 1569.15
possesses an interest that would also require disclosure pursuant
to Section 1569.15.

(l) (1) This section does not impair the right of the owner of a
residential care facility for the elderly to dispose of his or her
property interests in the facility, but any facility operated by a
receiver pursuant to this section shall remain subject to that
administration until terminated by the court. The termination shall
be promptly effectuated, provided that the interests of the residents
have been safeguarded as determined by the court.

(2) This section does not limit the power of the court to appoint
a receiver under any other applicable provision of law or to order
any other remedy available under law.

(m) (1) Notwithstanding any other provision of law, the receiver
shall be liable only for damages resulting from gross negligence
in the operation of the facility or intentional tortious acts.

(2) All governmental immunities otherwise applicable to the
State of California shall also apply in the use of a receiver in the
operation of a facility pursuant to this section.

(3) The licensee is not liable for any occurrences during the
receivership except to the extent that the occurrences are the result
of the licensee’s conduct.

(n) The department may adopt regulations for the administration
of this section. This section does not impair the authority of the
department to temporarily suspend licenses under Section 1569.50
or to reach a voluntary agreement with the licensee for alternate
management of a community care facility including the use of a
temporary manager under Section 1569.481. This section does not
authorize the department to interfere in a labor dispute.

(o) This section does not apply to a residential care facility for
the elderly that serves six or fewer persons and is also the principal
residence of the licensee.

(p) This section does not apply to a licensee that has obtained
a certificate of authority to offer continuing care contracts, as
defined in paragraph (8) of subdivision (c) of Section 1771.

begin delete SEC. 282. end delete
begin insert SEC. 283. end insert   

Section 1569.525 of the Health and Safety Code is
amended to read:

1569.525.  

(a) If the director determines that it is necessary to
temporarily suspend or to revoke any license of a residential care
facility for the elderly in order to protect the residents or clients
of the facility from physical or mental abuse, abandonment, or any
other substantial threat to health or safety pursuant to Section
1569.50, the department shall make every effort to minimize
trauma for the residents.

(b) (1) (A) After a decision is made to temporarily suspend or,
upon an order, to revoke the license of a residential care facility
for the elderly which is likely to result in closure of the facility,
the department shall contact both of the following:

(i) The Office of the State Long-Term Care Ombudsman.

(ii) Any local agency that may have placement or advocacy
responsibility for the residents of a residential care facility for the
elderly.

(B) The department shall work with these agencies, and the
licensee if the director determines it to be appropriate, to locate
alternative placement sites and to contact relatives or other persons
responsible for the care of these residents, and to assist in the
transfer of residents.

(2) The department shall use appropriately skilled professionals
deemed appropriate by the department to provide onsite evaluation
of the residents and assist in any transfers.

(3) The department shall require the licensee to prepare and
submit to the licensing agency a written plan for relocation and
compliance with the terms and conditions of the approved plans,
and to provide other information as necessary for the enforcement
of this section.

(c) Upon receipt of an order to temporarily suspend or revoke
a license, the licensee shall be prohibited from accepting new
residents or entering into admission agreements for new residents.

(d) Upon an order to temporarily suspend a license, the
following shall apply:

(1) The licensee shall immediately provide written notice of the
temporary suspension to the resident and initiate contact with the
resident’s responsible person, if applicable.

(2) The department may secure, or permit the licensee to secure,
the services of a temporary manager who is not an immediate
family member of the licensee or an entity that is not owned by
the licensee to manage the day-to-day operations of the facility.
The temporary manager shall be appointed and assume operation
of the facility in accordance with Section 1569.481.

(e) Upon an order to revoke a license following the temporary
suspension of a license pursuant to Section 1569.50 that led to the
transfer of all residents, the following applies:

(1) The licensee shall provide a 60-day written notice of license
revocation that may lead to closure to the resident and the resident’s
responsible person within 24 hours of receipt of the department’s
order of revocation.

(2) The department shall permit the licensee to secure the
services of a temporary manager who is not an immediate family
member of the licensee or an entity that is not owned by the
licensee to manage the day-to-day operations of the residential
care facility for the elderly for a period of at least 60 days, provided
that all of the following conditions are met:

(A) A proposal is submitted to the department within 72 hours
of the licensee’s receipt of the department’s order of revocation
that includes both of the following:

(i) A completed “Application for a Community Care Facility
or Residential Care Facility for the Elderly License” form (LIC
200), or similar form as determined by the department, signed and
dated by both the licensee and the person or entity described in
paragraph (2).

(ii) A copy of the executed agreement between the licensee and
the person or entity described in paragraph (2) that delineates the
roles and responsibilities of each party and specifies that the person
or entity described in paragraph (2) shall have the full authority
necessary to operate the facility, in compliance with all applicable
laws and regulations, and without interference from the licensee.

(B) The person or entity described in paragraph (2) shall be
currently licensed and in substantial compliance to operate a
residential care facility for the elderly that is of comparable size
or greater and has comparable programming to the facility. For
purposes of this subparagraph, the following definitions apply:

(i) “Comparable programming” includes, but is not limited to,
dementia care, hospice care, and care for residents with exempted
prohibited health care conditions.

(ii) “Comparable size” means a facility capacity of 1 to 15
residents, 16 to 49 residents, or 50 or more residents.

(C) The person or entity described in paragraph (2) is not subject
to the application fee specified in Section 1569.185.

(D) If the department denies a proposal to secure the services
of a person or entity pursuant to paragraph (2), this denial shall
not be deemed a denial of a license application subject to the right
to a hearing under Section 1569.22 and other procedural rights
under Section 1569.51.

(f) (1) Notwithstanding Section 1569.651 or any other law, for
paid preadmission fees, a resident who transfers from the facility
due to the notice of temporary suspension or revocation of a license
pursuant to this section is entitled to a refund in accordance with
all of the following:

(A) A 100-percent refund if preadmission fees were paid within
six months of either notice of closure required by this section.

(B) A 75-percent refund if preadmission fees were paid more
than six months, but not more than 12 months, before either notice
required by this section.

(C) A 50-percent refund if preadmission fees were paid more
than 12 months, but not more than 18 months, before either notice
required by this section.

(D) A 25-percent refund if preadmission fees were paid more
than 18 months, but not more than 25 months, before either notice
required by this section.

(2) A preadmission fee refund is not required if preadmission
fees were paid 25 months or more before either notice required by
this section.

(3) The preadmission fee refund required by this paragraph shall
be paid within 15 days of issuing either notice required by this
section. In lieu of the refund, the resident may request that the
licensee provide a credit toward the resident’s monthly fee
obligation in an amount equal to the preadmission fee refund due.

(4) If a resident transfers from the facility due to the revocation
of a license, and the resident gives notice at least five days before
leaving the facility, or if the transfer is due to a temporary
suspension of the license order, the licensee shall refund to the
resident or his or her legal representative a proportional per diem
amount of any prepaid monthly fees at the time the resident leaves
the facility and the unit is vacated. Otherwise the licensee shall
pay the refund within seven days from the date that the resident
leaves the facility and the unit is vacated.

(g) Within 24 hours after each resident who is transferring
pursuant to these provisions has left the facility, the licensee that
had his or her license temporarily suspended or revoked shall,
based on information provided by the resident or the resident’s
responsible person, submit a final list of names and new locations
of all residents to the department and the local ombudsman
program.

(h) If at any point during or following a temporary suspension
or revocation order of a license the director determines that there
is a risk to the residents of a facility of physical or mental abuse,
abandonment, or any other substantial threat to health or safety,
the department shall take any necessary action to minimize trauma
for the residents, including, but not limited to, all of the following:

(1) Contact any local agency that may have placement or
advocacy responsibility for the residents and work with those
agencies to locate alternative placement sites.

(2) Contact the residents’ relatives, legal representatives,
authorized agents in a health care directive, or responsible parties.

(3) Assist in the transfer of residents, and, if necessary, arrange
or coordinate transportation.

(4) Provide onsite evaluation of the residents and use any
medical personnel deemed appropriate by the department to provide
onsite evaluation of the residents and assist in any transfers.

(5) Arrange for or coordinate care and supervision.

(6) Arrange for the distribution of medications.

(7) Arrange for the preparation and service of meals and snacks.

(8) Arrange for the preparation of the residents’ records and
medications for transfer of each resident.

(9) Assist in any way necessary to facilitate a safe transfer of
all residents.

(10) Check on the status of each transferred resident within 24
hours of transfer.

(i) The participation of the department and local agencies in the
relocation of residents from a residential care facility for the elderly
shall not relieve the licensee of any responsibility under this
section. A licensee that fails to comply with the requirements of
this section shall be required to reimburse the department and local
agencies for the cost of providing those services. If the licensee
fails to provide the services required in this section, the department
shall request that the Attorney General’s office, the city attorney’s
office, or the local district attorney’s office seek injunctive relief
and damages.

(j) Notwithstanding Section 1569.49, a licensee who fails to
comply with the requirements of this section shall be liable for
civil penalties in the amount of five hundred dollars ($500) per
violation per day for each day that the licensee is in violation of
this section, until the violation has been corrected. The civil
penalties shall be issued immediately following the written notice
of violation.

(k) This section does not preclude the department from
amending the effective date in the order of suspension or revocation
of a license and closing the facility, or from pursuing any other
available remedies if necessary to protect the health and safety of
the residents in care.

begin delete SEC. 283. end delete
begin insert SEC. 284. end insert   

Section 1569.682 of the Health and Safety Code is
amended to read:

1569.682.  

(a) A licensee of a licensed residential care facility
for the elderly shall, prior to transferring a resident of the facility
to another facility or to an independent living arrangement as a
result of the forfeiture of a license, as described in subdivision (a),
(b), or (f) of Section 1569.19, or a change of use of the facility
pursuant to the department’s regulations, take all reasonable steps
to transfer affected residents safely and to minimize possible
transfer trauma, and shall, at a minimum, do all of the following:

(1) Prepare, for each resident, a relocation evaluation of the
needs of that resident, which shall include both of the following:

(A) Recommendations on the type of facility that would meet
the needs of the resident based on the current service plan.

(B) A list of facilities, within a 60-mile radius of the resident’s
current facility, that meet the resident’s present needs.

(2) Provide each resident or the resident’s responsible person
with a written notice no later than 60 days before the intended
eviction. The notice shall include all of the following:

(A) The reason for the eviction, with specific facts to permit a
determination of the date, place, witnesses, and circumstances
concerning the reasons.

(B) A copy of the resident’s current service plan.

(C) The relocation evaluation.

(D) A list of referral agencies.

(E) The right of the resident or resident’s legal representative
to contact the department to investigate the reasons given for the
eviction pursuant to Section 1569.35.

(F) The contact information for the local long-term care
ombudsman, including address and telephone number.

(3) Discuss the relocation evaluation with the resident and his
or her legal representative within 30 days of issuing the notice of
eviction.

(4) Submit a written report of any eviction to the licensing
agency within five days.

(5) Upon issuing the written notice of eviction, a licensee shall
not accept new residents or enter into new admission agreements.

(6) (A) For paid preadmission fees in excess of five hundred
dollars ($500), the resident is entitled to a refund in accordance
with all of the following:

(i) A 100-percent refund if preadmission fees were paid within
six months of notice of eviction.

(ii) A 75-percent refund if preadmission fees were paid more
than six months but not more than 12 months before notice of
eviction.

(iii) A 50-percent refund if preadmission fees were paid more
than 12 months but not more than 18 months before notice of
eviction.

(iv) A 25-percent refund if preadmission fees were paid more
than 18 months but less than 25 months before notice of eviction.

(B) No preadmission refund is required if preadmission fees
were paid 25 months or more before the notice of eviction.

(C) The preadmission refund required by this paragraph shall
be paid within 15 days of issuing the eviction notice. In lieu of the
refund, the resident may request that the licensee provide a credit
toward the resident’s monthly fee obligation in an amount equal
to the preadmission fee refund due.

(7) If the resident gives notice five days before leaving the
facility, the licensee shall refund to the resident or his or her legal
representative a proportional per diem amount of any prepaid
monthly fees at the time the resident leaves the facility and the
unit is vacated. Otherwise the licensee shall pay the refund within
seven days from the date that the resident leaves the facility and
the unit is vacated.

(8) Within 10 days of all residents having left the facility, the
licensee, based on information provided by the resident or
resident’s legal representative, shall submit a final list of names
and new locations of all residents to the department and the local
ombudsman program.

(b) If seven or more residents of a residential care facility for
the elderly will be transferred as a result of the forfeiture of a
license or change in the use of the facility pursuant to subdivision
(a), the licensee shall submit a proposed closure plan to the
department for approval. The department shall approve or
disapprove the closure plan, and monitor its implementation, in
accordance with the following requirements:

(1) Upon submission of the closure plan, the licensee shall be
prohibited from accepting new residents and entering into new
admission agreements for new residents.

(2) The closure plan shall meet the requirements described in
subdivision (a), and describe the staff available to assist in the
transfers. The department’s review shall include a determination
as to whether the licensee’s closure plan contains a relocation
evaluation for each resident.

(3) Within 15 working days of receipt, the department shall
approve or disapprove the closure plan prepared pursuant to this
subdivision, and, if the department approves the plan, it shall
become effective upon the date the department grants its written
approval of the plan.

(4) If the department disapproves a closure plan, the licensee
may resubmit an amended plan, which the department shall
promptly either approve or disapprove, within 10 working days
of receipt by the department of the amended plan. If the department
fails to approve a closure plan, it shall inform the licensee, in
writing, of the reasons for the disapproval of the plan.

(5) If the department fails to take action within 20 working days
of receipt of either the original or the amended closure plan, the
plan, or amended plan, as the case may be, shall be deemed
approved.

(6) Until the department has approved a licensee’s closure plan,
the facility shall not issue a notice of transfer or require any resident
to transfer.

(7) Upon approval by the department, the licensee shall send a
copy of the closure plan to the local ombudsman program.

(c) (1) If a licensee fails to comply with the requirements of
this section, or if the director determines that it is necessary to
protect the residents of a facility from physical or mental abuse,
abandonment, or any other substantial threat to health or safety,
the department shall take any necessary action to minimize trauma
for the residents, including caring for the residents through the use
of a temporary manager or receiver as provided for in Sections
1569.481 and 1569.482 when the director determines the immediate
relocation of the residents is not feasible based on transfer trauma
or other considerations such as the unavailability of alternative
placements. The department shall contact any local agency that
may have assessment, placement, protective, or advocacy
responsibility for the residents, and shall work together with those
agencies to locate alternative placement sites, contact relatives or
other persons responsible for the care of these residents, provide
onsite evaluation of the residents, and assist in the transfer of
residents.

(2) The participation of the department and local agencies in
the relocation of residents from a residential care facility for the
elderly does not relieve the licensee of any responsibility under
this section. A licensee that fails to comply with the requirements
of this section shall be required to reimburse the department and
local agencies for the cost of providing the relocation services or
the costs incurred in caring for the residents through the use of a
temporary manager or receiver as provided for in Sections
1569.481 and 1569.482. If the licensee fails to provide the
relocation services required in this section, then the department
may request that the Attorney General’s office, the city attorney’s
office, or the local district attorney’s office seek injunctive relief
and damages in the same manner as provided for in Chapter 5
(commencing with Section 17200) of Part 2 of Division 7 of the
Business and Professions Code, including restitution to the
department of any costs incurred in caring for the residents through
the use of a temporary manager or receiver as provided for in
Sections 1569.481 and 1569.482.

(d) A licensee who fails to comply with requirements of this
section shall be liable for the imposition of civil penalties in the
amount of one hundred dollars ($100) per violation per day for
each day that the licensee is in violation of this section, until such
time that the violation has been corrected. The civil penalties shall
be issued immediately following the written notice of violation.
However, if the violation does not present an immediate or
substantial threat to the health or safety of residents and the licensee
corrects the violation within three days after receiving the notice
of violation, the licensee shall not be liable for payment of any
civil penalties pursuant to this subdivision related to the corrected
violation.

(e) A licensee, on and after January 1, 2015, who fails to comply
with this section and abandons the facility and the residents in care
resulting in an immediate and substantial threat to the health and
safety of the abandoned residents, in addition to forfeiture of the
license pursuant to Section 1569.19, shall be excluded from
licensure in facilities licensed by the department without the right
to petition for reinstatement.

(f) A resident of a residential care facility for the elderly covered
under this section may bring a civil action against any person, firm,
partnership, or corporation who owns, operates, establishes,
manages, conducts, or maintains a residential care facility for the
elderly who violates the rights of a resident, as set forth in this
section. Any person, firm, partnership, or corporation who owns,
operates, establishes, manages, conducts, or maintains a residential
care facility for the elderly who violates this section shall be
responsible for the acts of the facility’s employees and shall be
liable for costs and attorney’s fees. Any such residential care
facility for the elderly may also be enjoined from permitting the
violation to continue. The remedies specified in this section are in
addition to any other remedy provided by law.

(g) This section does not apply to a licensee that has obtained
a certificate of authority to offer continuing care contracts, as
defined in paragraph (8) of subdivision (c) of Section 1771.

begin delete SEC. 284. end delete
begin insert SEC. 285. end insert   

Section 1597.58 of the Health and Safety Code, as
added by Section 10 of Chapter 813 of the Statutes of 2014, is
amended to read:

1597.58.  

(a) In addition to the suspension, temporary
suspension, or revocation of a license issued under this chapter,
the department may levy a civil penalty.

(b) The amount of the civil penalty shall not be less than
twenty-five dollars ($25) nor more than fifty dollars ($50) per day
for each violation of this chapter except where the nature or
seriousness of the violation or the frequency of the violation
warrants a higher penalty or an immediate civil penalty assessment
or both, as determined by the department. In no event shall a civil
penalty assessment exceed one hundred fifty dollars ($150) per
day per violation.

(c) Notwithstanding Sections 1596.893a, 1596.893b, 1597.56,
and 1597.62, the department shall assess an immediate civil penalty
of one hundred fifty dollars ($150) per day per violation for any
of the following serious violations:

(1) Any violation that results in the injury, illness, or death of
a child.

(2) Absence of supervision, including, but not limited to, a child
left unattended, a child left alone with a person under 18 years of
age, and lack of supervision resulting in a child wandering away.

(3) Accessible bodies of water.

(4) Accessible firearms, ammunition, or both.

(5) Refused entry to a facility or any part of a facility in violation
of Sections 1596.852, 1596.853, 1597.55a, and 1597.55b.

(6) The presence of an excluded person on the premises.

(d) For a violation that the department determines resulted in
the death of a child, the civil penalty shall be assessed as follows:

(1) Five thousand dollars ($5,000) for a small family day care
home, as described in Section 1597.44.

(2) Seven thousand five hundred dollars ($7,500) for a large
family day care home, as described in Section 1597.465.

(e) (1) For a violation that the department determines constitutes
physical abuse or resulted in serious injury, as defined in Section
1596.8865, to a child, the civil penalty shall be assessed as follows:

(A) One thousand dollars ($1,000) for a small family day care
home, as described in Section 1597.44.

(B) Two thousand dollars ($2,000) for a large family day care
home, as described in Section 1597.465.

(2) For purposes of this subdivision, “physical abuse” includes
physical injury inflicted upon a child by another person by other
than accidental means, sexual abuse as defined in Section 11165.1
of the Penal Code, neglect as defined in Section 11165.2 of the
Penal Code, or unlawful corporal punishment or injury as defined
in Section 11165.4 of the Penal Code when the person responsible
for the child’s welfare is a licensee, administrator, or employee of
any facility licensed to care for children, or an administrator or
employee of a public or private school or other institution or
agency.

(f) Prior to the issuance of a citation imposing a civil penalty
pursuant to subdivision (d) or (e), the decision shall be approved
by the director.

(g) Notwithstanding Sections 1596.893a, 1596.893b, 1597.56,
and 1597.62, any family day care home that is cited for repeating
the same violation of this chapter or Chapter 3.4 (commencing
with Section 1596.70), within 12 months of the first violation, is
subject to an immediate civil penalty assessment of up to one
hundred fifty dollars ($150) and may be assessed up to fifty dollars
($50) for each day the violation continues until the deficiency is
corrected.

(h) A family day care home that is assessed a civil penalty under
subdivision (g) that repeats the same violation of this chapter within
12 months of the violation subject to subdivision (g) shall be
assessed an immediate assessment of up to one hundred fifty dollars
($150) and may be assessed up to one hundred fifty dollars ($150)
for each day the violation continues until the deficiency is
corrected.

(i) Notwithstanding any other law, revenues received by the
state from the payment of civil penalties imposed on licensed
family day care homes pursuant to this chapter or Chapter 3.4
(commencing with Section 1596.70), shall be deposited in the
Child Health and Safety Fund, created pursuant to Chapter 4.6
(commencing with Section 18285) of Part 6 of Division 9 of the
Welfare and Institutions Code, and shall be expended, upon
appropriation by the Legislature, pursuant to subdivision (f) of
Section 18285 of the Welfare and Institutions Code exclusively
for the technical assistance, orientation, training, and education of
licensed family day care home providers, and to assist families
with the identification, transportation, and enrollment of children
to another family day care home when a family’s family day care
home’s license is revoked or temporarily suspended.

(j) (1) The department shall adopt regulations setting forth the
appeal procedures for deficiencies.

(2) A licensee may submit to the department a written request
for a formal review of a civil penalty assessed pursuant to
subdivisions (d) and (e) within 10 days of receipt of the notice of
a civil penalty assessment and shall provide all supporting
documentation at that time. The review shall be conducted by a
regional manager of the Community Care Licensing Division. If
the regional manager determines that the civil penalty was not
assessed in accordance with applicable statutes or regulations of
the department, he or she may amend or dismiss the civil penalty.
The licensee shall be notified in writing of the regional manager’s
decision within 60 days of the request to review the assessment of
the civil penalty.

(3) The licensee may further appeal to the program administrator
of the Community Care Licensing Division within 10 days of
receipt of the notice of the regional manager’s decision and shall
provide all supporting documentation at that time. If the program
administrator determines that the civil penalty was not assessed
in accordance with applicable statutes or regulations of the
department, he or she may amend or dismiss the civil penalty. The
licensee shall be notified in writing of the program administrator’s
decision within 60 days of the request to review the regional
manager’s decision.

(4) The licensee may further appeal to the deputy director of
the Community Care Licensing Division within 10 days of receipt
of the notice of the program director’s decision and shall provide
all supporting documentation at that time. If the deputy director
determines that the civil penalty was not assessed in accordance
with applicable statutes or regulations of the department, he or she
may amend or dismiss the civil penalty. The licensee shall be
notified in writing of the deputy director’s decision within 60 days
of the request to review the program administrator’s decision.

(5) Upon exhausting the deputy director review, a licensee may
appeal a civil penalty assessed pursuant to subdivision (d) or (e)
to an administrative law judge. Proceedings shall be conducted in
accordance with Chapter 5 (commencing with Section 11500) of
Part 1 of Division 3 of Title 2 of the Government Code, and the
department shall have all the powers granted by those provisions.
In all proceedings conducted in accordance with this section, the
standard of proof shall be by a preponderance of the evidence.

(6) If, in addition to an assessment of civil penalties, the
department elects to file an administrative action to suspend or
revoke the facility license that includes violations relating to the
assessment of the civil penalties, the department review of the
pending appeal shall cease and the assessment of the civil penalties
shall be heard as part of the administrative action process.

(k) The department shall, by January 1, 2016, amend its
regulations to reflect the changes to this section made by the act
that added this subdivision.

(l) This section shall become operative on July 1, 2015.

begin delete SEC. 285. end delete
begin insert SEC. 286. end insert   

Section 1635.1 of the Health and Safety Code is
amended to read:

1635.1.  

(a) Except as provided in subdivision (b), every tissue
bank operating in California on or after July 1, 1992, shall have a
current and valid tissue bank license issued or renewed by the
department pursuant to Section 1639.2 or 1639.3.

(b) This chapter does not apply to any of the following:

(1) The collection, processing, storage, or distribution of human
whole blood or its derivatives by blood banks licensed pursuant
to Chapter 4 (commencing with Section 1600) or any person
exempt from licensure under that chapter.

(2) The collection, processing, storage, or distribution of tissue
for autopsy, biopsy, training, education, or for other medical or
scientific research or investigation, when transplantation of the
tissue is not intended or reasonably foreseeable.

(3) The collection of tissue by an individual physician and
surgeon from his or her patient or the implantation of tissue by an
individual physician and surgeon into his or her patient. This
exemption shall not be interpreted to apply to any processing or
storage of the tissue, except for the processing and storage of semen
by an individual physician and surgeon when the semen was
collected by that physician and surgeon from a semen donor or
obtained by that physician and surgeon from a tissue bank licensed
under this chapter.

(4) The collection, processing, storage, or distribution of fetal
tissue or tissue derived from a human embryo or fetus.

(5) The collection, processing, storage, or distribution by an
organ procurement organization (OPO), as defined in Section
485.302 of Title 42 of the Code of Federal Regulations, if the OPO,
at the time of collection, processing, storage, and distribution of
the organ, has been designated by the Secretary of Health and
Human Services as an OPO, pursuant to Section 485.305 of Title
42 of the Code of Federal Regulations, and meets the requirements
of Sections 485.304 and 485.306 of Title 42 of the Code of Federal
Regulations, as applicable.

(6) The storage of prepackaged, freeze-dried bone by a general
acute care hospital.

(7) The storage of freeze-dried bone and dermis by any licensed
dentist practicing in a lawful practice setting, if begin delete that end delete the freeze-dried
bone and dermis has been obtained from a licensed tissue bank, is
stored in strict accordance with a kit’s package insert and any other
manufacturer instructions and guidelines, and is used for the
express purpose of implantation into a patient.

(8) The storage of a human cell, tissue, or cellular- or
tissue-based product, as defined by the federal Food and Drug
Administration, that is either a medical device approved pursuant
to Section 510 or 515 of the Federal Food, Drug, and Cosmetic
Act (21 U.S.C. begin delete Sec. 360,, end delete begin insert Secs. 360 and end insert 360e) or that is a biologic
product approved under Section 351 of the federal Public Health
Service Act (42 U.S.C. Sec. 262) by a licensed physician or
podiatrist acting within the scope and authority of his or her license
and practicing in a lawful practice setting. The medical device or
biologic product must have been obtained from a California
licensed tissue bank, been stored in strict accordance with the
device’s or product’s package insert and any other manufacturer
instructions, and used solely for the express purpose of direct
implantation into or application on the practitioner’s own patient.
In order to be eligible for the exemption in this paragraph, the
entity or organization where the physician or podiatrist who is
eligible for the exemption is practicing shall notify the department,
in writing, that the practitioner is licensed and meets the
requirements of this paragraph. The notification shall include all
of the following:

(A) A list of all practitioners to whom the notice applies.

(B) Acknowledgment that each listed practitioner uses the
medical device or biologic product in the scope and authority of
his or her license and practice for the purposes of direct patient
care as described in this paragraph.

(C) A statement that each listed practitioner agrees to strictly
abide by the directions for storage in the device’s or product’s
package insert and any other manufacturer instructions and
guidelines.

(D) Acknowledgment by each practitioner that the medical
device or biologic product shall not be resold or distributed.

begin delete SEC. 286. end delete
begin insert SEC. 287. end insert   

Section 1796.17 of the Health and Safety Code is
amended to read:

1796.17.  

(a) Each home care organization shall be separately
licensed. This chapter does not prevent a licensee from obtaining
more than one home care organization license or obtaining a home
care organization license in addition to other licenses issued by
the department, or both.

(b) A home care organization does not include the following:

(1) A home health agency licensed under Chapter 8
(commencing with Section 1725).

(2) A hospice licensed under Chapter 8.5 (commencing with
Section 1745).

(3) A health facility licensed under Chapter 2 (commencing
with Section 1250).

(4) A person who performs services through the In-Home
Supportive Services program pursuant to Article 7 (commencing
with Section 12300) of Chapter 3 of Part 3 of Division 9 of, or
Section 14132.95, 14132.952, or 14132.956 of, the Welfare and
Institutions Code.

(5) A home medical device retail facility licensed under Section
111656.

(6) An organization vendored or contracted through a regional
center or the State Department of Developmental Services pursuant
to the Lanterman Developmental Disabilities Services Act
(Division 4.5 (commencing with Section 4500) of the Welfare and
Institutions Code) and the California Early Intervention Services
Act (Title 14 (commencing with Section 95000) of the Government
Code) to provide services and supports for persons with
developmental disabilities, as defined in Section 4512 of the
Welfare and Institutions Code, when funding for those services is
provided through the State Department of Developmental Services
and more than 50 percent of the recipients of the home care services
provided by the organization are persons with developmental
disabilities.

(7) An employment agency, as defined in Section 1812.5095
of the Civil Code, that procures, offers, refers, provides, or attempts
to provide an independent home care aide who provides home care
services to clients.

(8) A community care facility licensed pursuant to Chapter 3
(commencing with Section 1500), a residential care facility for
persons with chronic life-threatening illness licensed pursuant to
Chapter 3.01 (commencing with Section 1568.01), a residential
care facility for the elderly licensed pursuant to Chapter 3.2
(commencing with Section 1569), or a facility licensed pursuant
to the California Child Day Care Facilities Act (Chapter 3.4
(commencing with Section 1596.70)), which includes day care
centers, as described in Chapter 3.5 (commencing with Section
1596.90), family day care homes, as described in Chapter 3.6
(commencing with Section 1597.30), and employer-sponsored
child care centers, as described in Chapter 3.65 (commencing with
Section 1597.70).

(9) An alcoholism or drug abuse recovery or treatment facility
as defined in Section 11834.02.

(10) A person providing services authorized pursuant to Section
2731 of the Business and Professions Code.

(11) A clinic licensed pursuant to Section 1204 or 1204.1.

(12) A nonrelative extended family member, as defined in
Section 362.7 of the Welfare and Institutions Code.

(13) A facility providing home care services in which only
Indian children who are eligible under the federal Indian Child
Welfare Act (25 U.S.C. Sec. 1901 et seq.) are placed and which
satisfies either of the following:

(A) An extended family member of the Indian child, as defined
in Section 1903 of Title 25 of the United States Code.

(B) A foster home that is licensed, approved, or specified by
the Indian child’s tribe pursuant to Section 1915 of Title 25 of the
United States Code.

(14) Any other individual or entity providing services similar
to those described in this chapter, as determined by the director.

(c) In the event of a conflict between this chapter and a provision
listed in subdivision (b), the provision in subdivision (b) controls.

begin delete SEC. 287. end delete
begin insert SEC. 288. end insert   

Section 1796.23 of the Health and Safety Code is
amended to read:

1796.23.  

(a) Each person initiating a background examination
to be a registered home care aide shall submit his or her fingerprints
to the Department of Justice by electronic transmission in a manner
approved by the department, unless exempt under subdivision (d).
Each person initiating a background examination to be a registered
home care aide shall also submit to the department a signed
declaration under penalty of perjury regarding any prior criminal
convictions pursuant to Section 1522 and a completed home care
aide application.

(b) A law enforcement agency or other local agency authorized
to take fingerprints may charge a reasonable fee to offset the costs
of fingerprinting for the purposes of this chapter. The fee revenues
shall be deposited in the Fingerprint Fees Account.

(c) The Department of Justice shall use the fingerprints to search
state and Federal Bureau of Investigation criminal offender record
information pursuant to Section 1522.

(d) A person who is a current licensee or employee in a facility
licensed by the department, a certified foster parent, a certified
administrator, or a registered TrustLine provider need not submit
fingerprints to the department, and may transfer his or her current
criminal record clearance or exemption pursuant to paragraph (1)
of subdivision (h) of Section 1522. The person shall instead submit
to the department, along with the person’s registration application,
a copy of the person’s identification card described in Section
1796.22 and sign a declaration verifying the person’s identity.

begin delete SEC. 288. end delete
begin insert SEC. 289. end insert   

Section 1796.25 of the Health and Safety Code is
amended to read:

1796.25.  

(a) (1) If the department finds that the home care
aide applicant or the registered home care aide has been convicted
of a crime, other than a minor traffic violation, the department
shall deny the home care aide application, or revoke the registered
home care aide’s registration unless the director grants an
exemption pursuant to subdivision (g) of Section 1522.

(2) If the department finds that the home care aide applicant or
registered home care aide has an arrest as described in subdivision
(a) of Section 1522, the department may deny the registration
application or registration renewal application, or revoke the
registered home care aide’s registration, if the home care aide or
registered home care aide may pose a risk to the health and safety
of any person who is or may become a client and the department
complies with subdivision (e) of Section 1522.

(3) The department may deny the home care aide application
or the renewal application of a registered home care aide, or revoke
the home care aide registration, if the department discovers that it
had previously revoked a license or certificate of approval to be a
certified family home, a certified administrator, or a registered
trustline provider held by the home care aide applicant or registered
home care aide, or that it had excluded the home care aide applicant
or registered home care aide from a licensed facility.

(4) The department may deny the home care aide application
or registered home care aide registration renewal application for
placement or retention upon the home care aide registry, or revoke
the registered home care aide’s registration, if the department
discovers that it had previously denied the home care aide
applicant’s or registered home care aide’s application for a license
from the department or certificate of approval to be a certified
family home, a certified administrator, or a registered trustline
provider.

(b) (1) If the department revokes or denies a home care aide
application or registered home care aide’s renewal application
pursuant to subdivision (a), the department shall advise the home
care aide applicant or registered home care aide, by written
notification, of the right to appeal. The home care aide applicant
or registered home care aide shall have 15 days from the date of
the written notification to appeal the denial or revocation.

(2) Upon receipt by the department of the appeal, the appeal
shall be set for hearing. The hearing shall be conducted in
accordance with Section 1551.

(c) If the home care aide application or registered home care
aide renewal application is denied, the home care aide applicant
or registered home care aide shall not reapply until he or she meets
the timeframe set forth in Sections 1796.40 and 1796.41.

begin delete SEC. 289. end delete
begin insert SEC. 290. end insert   

Section 1796.26 of the Health and Safety Code is
amended to read:

1796.26.  

(a) (1) The department may revoke or deny a
registered home care aide’s registration or request for registration
renewal if any of the following apply to the registered home care
aide:

(A)  He or she procured or attempted to procure his or her
registered home care aide registration or renewal by fraud or
misrepresentation.

(B)  He or she has a criminal conviction, other than a minor
traffic violation, unless an exemption is granted pursuant to Section
1522.

(C)  He or she engages or has engaged in conduct that is inimical
to the health, morals, welfare, or safety of the people of the State
of California or an individual receiving or seeking to receive home
care services.

(2) An individual whose registration has been revoked shall not
reapply until he or she meets the timeframe as set forth in Section
1796.40 or 1796.41.

(3) An individual whose criminal record exemption has been
denied shall not reapply for two years from the date of the
exemption denial.

(4) The hearing to revoke or deny the registered home care aide
registration or registration renewal request shall be conducted in
accordance with Section 1551.

(b) (1) The registered home care aide’s registration shall be
considered forfeited under the following conditions:

(A) The registered home care aide has had a license or certificate
of approval revoked, suspended, or denied as authorized under
Section 1534, 1550, 1568.082, 1569.50, 1596.608, or 1596.885.

(B) The registered home care aide has been denied employment,
residence, or presence in a facility or client’s home based on action
resulting from an administrative hearing pursuant to Section 1558,
1568.092, 1569.58, or 1596.8897.

(C) The registered home care aide fails to maintain a current
mailing address with the department.

(D) The registered home care aide’s registration is not renewed.

(E) The registered home care aide surrenders his or her
registration to the department.

(F) The registered home care aide dies.

(2) An individual whose registered home care aide registration
has been forfeited shall not reapply until he or she meets the
timeframe set forth by the department in Sections 1796.40 and
1796.41.

(c) A registered home care aide’s registration shall not be
transferred or sold to another individual or entity.

begin delete SEC. 290. end delete
begin insert SEC. 291. end insert   

Section 1796.29 of the Health and Safety Code is
amended to read:

1796.29.  

The department shall do both of the following in the
administration of the home care aide registry:

(a) Establish and maintain on the department’s Internet Web
site the registry of registered home care aides and home care aide
applicants.

(1) To expedite the ability of a consumer to search and locate
a registered home care aide or home care aide applicant, the
Internet Web site shall enable consumers to look up the registration
status by providing the registered home care aide’s or home care
aide applicant’s name, registration number, registration status,
registration expiration date, and, if applicable, the home care
organization with which the affiliated home care aide is associated.

(2) The Internet Web site shall not provide any additional,
individually identifiable information about a registered home care
aide or home care aide applicant. The department may request and
may maintain additional information for registered home care aides
or home care aide applicants, as necessary for the administration
of this chapter, that shall not be publicly available on the home
care aide registry.

(b) Update the home care registry upon receiving notification
from a home care organization that an affiliated home care aide is
no longer employed by the home care organization.

begin delete SEC. 291. end delete
begin insert SEC. 292. end insert   

Section 1796.34 of the Health and Safety Code is
amended to read:

1796.34.  

(a) A person or a private or public organization, with
the exception of any person who performs in-home supportive
services through the In-Home Supportive Services program
pursuant to Article 7 (commencing with Section 12300) of Chapter
3 of Part 3 of Division 9 of the Welfare and Institutions Code, or
Section 14132.95, 14132.952, or 14132.956 of the Welfare and
Institutions Code, and the exceptions provided for in subdivision
(b), shall not do any of the following, unless he, she, or it is
licensed pursuant to this chapter:

(1)  Own, manage, or represent himself, herself or itself to be
a home care organization by name, advertising, solicitation, or any
other presentments to the public, or in the context of services within
the scope of this chapter, imply that he, she, or it is licensed to
provide those services or to make any reference to employee
bonding in relation to those services.

(2) Use the terms “home care organization,” “home care,”
“in-home care,” or any combination of those terms, within its
name.

(b) This section does not apply to either of the following:

(1)  Any person who performs in-home supportive services
through the In-Home Supportive Services program pursuant to
Article 7 (commencing with Section 12300) of Chapter 3 of Part
3 of Division 9 of, or Section 14132.95, 14132.952, or 14132.956
of, the Welfare and Institutions Code.

(2) An employment agency, as defined in Section 1812.5095
of the Civil Code, that procures, offers, refers, provides, or attempts
to provide an independent home care aide who provides home care
to clients.

begin delete SEC. 292. end delete
begin insert SEC. 293. end insert   

Section 1796.37 of the Health and Safety Code is
amended to read:

1796.37.  

(a)  The department may issue a home care
organization license to a home care organization applicant that
satisfies the requirements set forth in this chapter, including all of
the following:

(1) Files a complete home care organization application,
including the fees required pursuant to Section 1796.49.

(2) Submits proof of general and professional liability insurance
in the amount of at least one million dollars ($1,000,000) per
occurrence and three million dollars ($3,000,000) in the aggregate.

(3) Submits proof of a valid workers’ compensation policy
covering its affiliated home care aides. The proof shall consist of
the policy number, the effective and expiration dates of the policy,
and the name and address of the policy carrier.

(4) Submits proof of an employee dishonesty bond, including
third-party coverage, with a minimum limit of ten thousand dollars
($10,000). This proof shall be submitted at each subsequent
renewal.

(5) Provides the department, upon request, with a complete list
of its affiliated home care aides, and proof that each satisfies the
requirements of Sections 1796.43, 1796.44, and 1796.45.

(6) Passes a background examination, as required pursuant to
Section 1796.33.

(7) Completes a department orientation.

(8) Does not have any outstanding fees or civil penalties due to
the department.

(9) Discloses prior or present service as an administrator, general
partner, corporate officer, or director of, or discloses that he or she
has held or holds a beneficial ownership of 10 percent or more in,
any of the following:

(A) A community care facility, as defined in Section 1502.

(B) A residential care facility, as defined in Section 1568.01.

(C) A residential care facility for the elderly, as defined in
Section 1569.2.

(D) A child day care facility, as defined in Section 1596.750.

(E) A day care center, as described in Chapter 3.5 (commencing
with Section 1596.90).

(F) A family day care home, as described in Chapter 3.6
(commencing with Section 1597.30).

(G) An employer-sponsored child care center, as described in
Chapter 3.65 (commencing with Section 1597.70).

(H) A home care organization licensed pursuant to this chapter.

(10) Discloses any revocation or other disciplinary action taken,
or in the process of being taken, against a license held or previously
held by the entities specified in paragraph (9).

(11) Provides evidence that every member of the board of
directors, if applicable, understands his or her legal duties and
obligations as a member of the board of directors and that the home
care organization’s operation is governed by laws and regulations
that are enforced by the department.

(12) Provides any other information as may be required by the
department for the proper administration and enforcement of this
chapter.

(13) Cooperates with the department in the completion of the
home care organization license application process. Failure of the
home care organization licensee to cooperate may result in the
withdrawal of the home care organization license application.
“Failure to cooperate” means that the information described in this
chapter and in any rules and regulations promulgated pursuant to
this chapter has not been provided, or not provided in the form
requested by the department, or both.

(b) A home care organization licensee shall renew the home
care organization license every two years. The department may
renew a home care organization license if the licensee satisfies the
requirements set forth in this chapter, including all of the following:

(1) Files a complete home care organization license renewal
application, including the nonrefundable fees required pursuant to
Section 1796.49, both of which shall be postmarked on or before
the expiration of the license.

(2) Submits proof of general and professional liability insurance
in the amount of at least one million dollars ($1,000,000) per
occurrence and three million dollars ($3,000,000) in the aggregate.

(3) Submits proof of a valid workers’ compensation policy
covering its affiliated home care aides. The proof shall consist of
the policy number, the effective and expiration dates of the policy,
and the name and address of the policy carrier.

(4) Submits proof of an employee dishonesty bond, including
third-party coverage, with a minimum limit of ten thousand dollars
($10,000).

(5) Does not have any outstanding fees or civil penalties due to
the department.

(6) Provides any other information as may be required by the
department for the proper administration and enforcement of this
chapter.

(7) Cooperates with the department in the completion of the
home care organization license renewal process. Failure of the
home care organization licensee to cooperate may result in the
withdrawal of the home care organization license renewal
application. “Failure to cooperate” means that the information
described in this chapter and in any rules and regulations
promulgated pursuant to this chapter has not been provided, or not
provided in the form requested by the department, or both.

(c) (1) The department shall notify a licensed home care
organization in writing of its registration expiration date and the
process of renewal.

(2) Written notification pursuant to this subdivision shall be
mailed to the registered home care organization’s mailing address
of record at least 60 days before the registration expiration date.

begin delete SEC. 293. end delete
begin insert SEC. 294. end insert   

Section 1796.38 of the Health and Safety Code is
amended to read:

1796.38.  

The department may deny an application for licensure
or suspend or revoke any license issued pursuant to this chapter,
pursuant to Sections 1550.5 and 1551 and in the manner provided
in this chapter on any of the following grounds:

(a) Violation by the licensee of this chapter or of the rules and
regulations promulgated under this chapter.

(b) Aiding, abetting, or permitting the violation of this chapter
or of the rules and regulations promulgated under this chapter.

(c) Conduct that is inimical to the health, morals, welfare, or
safety of either an individual receiving home care services or the
people of the State of California.

(d) The conviction of a licensee, or other person mentioned in
Section 1522, at any time before or during licensure, of a crime
described in Section 1522.

(e) Engaging in acts of financial malfeasance concerning the
operation of a home care organization.

begin delete SEC. 294. end delete
begin insert SEC. 295. end insert   

Section 1796.41 of the Health and Safety Code is
amended to read:

1796.41.  

(a) (1) If the department determines that a person
was issued a license pursuant to this chapter or Chapter 1
(commencing with Section 1200), Chapter 2 (commencing with
Section 1250), Chapter 3 (commencing with Section 1500), Chapter
3.01 (commencing with Section 1568.01), Chapter 3.2
(commencing with Section 1569), Chapter 3.4 (commencing with
Section 1596.70), Chapter 3.5 (commencing with Section 1596.90),
Chapter 3.6 (commencing with Section 1597.30), or Chapter 3.65
(commencing with Section 1597.70), and the prior license was
revoked within the preceding two years, the department shall
exclude the person from acting as, and require the home care
organization to remove him or her from his or her position as, a
member of the board of directors, an executive director, or an
officer of a licensee of any home care organizations licensed by
the department pursuant to this chapter.

(2) If the department determines that a person was previously
issued a certificate of approval by a foster family agency that was
revoked by the department pursuant to subdivision (b) of Section
1534 within the preceding two years, the department shall exclude
the person from acting as, and require the home care organization
to remove him or her from his or her position as, a member of the
board of directors, an executive director, or an officer of a licensee
of, any home care organizations licensed by the department
pursuant to this chapter.

(b) If the department determines that the person had previously
applied for a license under any of the chapters listed in paragraph
(1) of subdivision (a) and the application was denied within the
last year, the department shall exclude the person from acting as,
and require the home care organization to remove him or her from
his or her position as, a member of the board of directors, an
executive director, or an officer of a licensee of any home care
organizations licensed by the department pursuant to this chapter
as follows:

(1) In cases in which the home care organization applicant
petitioned for a hearing, the department shall exclude the person
from acting as, and require the home care organization to remove
him or her from his or her position as, a member of the board of
directors, an executive director, or an officer of a licensee of, any
home care organizations licensed by the department pursuant to
this chapter until one year has elapsed from the effective date of
the decision and order of the department upholding a denial.

(2) In cases in which the department informed the home care
organization applicant of his or her right to petition for a hearing
and the home care organization applicant did not petition for a
hearing, the department shall exclude the person from acting as,
and require the home care organization to remove him or her from
his or her position as, a member of the board of directors, an
executive director, or an officer of a licensee of, any home care
organizations licensed by the department pursuant to this chapter
until one year has elapsed from the date of the notification of the
denial and the right to petition for a hearing.

(c) If the department determines that the person had previously
applied for a certificate of approval with a foster family agency
and the department ordered the foster family agency to deny the
application pursuant to subdivision (b) of Section 1534, the
department shall exclude the person from acting as, and require
the home care organization to remove him or her from his or her
position as, a member of the board of directors, an executive
director, or an officer of a licensee of, any home care organizations
licensed by the department pursuant to this chapter and as follows:

(1) In cases in which the home care organization applicant
petitioned for a hearing, the department shall exclude the person
from acting as, and require the home care organization to remove
him or her from his or her position as, a member of the board of
directors, an executive director, or an officer of a licensee of, any
home care organizations licensed by the department pursuant to
this chapter until one year has elapsed from the effective date of
the decision and order of the department upholding a denial.

(2) In cases in which the department informed the home care
organization applicant of his or her right to petition for a hearing
and the home care organization applicant did not petition for a
hearing, the department shall exclude the person from acting as,
and require the home care organization to remove him or her from
his or her position as, a member of the board of directors, an
executive director, or an officer of a licensee of, any home care
organizations licensed by the department pursuant to this chapter
until one year has elapsed from the date of the notification of the
denial and the right to petition for a hearing.

(d) Exclusion or removal of an individual pursuant to this section
shall not be considered an order of exclusion for purposes of
Section 1796.25 or any other law.

(e) The department may determine not to exclude a person from
acting, or require that he or she be removed from his or her
position, as a member of the board of directors, an executive
director, or an officer of a licensee of, any home care organizations
licensed by the department pursuant to this chapter if it has been
determined that the reasons for the denial of the application or
revocation of the facility license or certificate of approval were
due to circumstances or conditions that either have been corrected
or are no longer in existence.

begin delete SEC. 295. end delete
begin insert SEC. 296. end insert   

Section 1796.44 of the Health and Safety Code is
amended to read:

1796.44.  

(a) A licensee shall ensure that prior to providing
home care services, an affiliated home care aide shall complete
the training requirements specified in this section.

(b) An affiliated home care aide shall complete a minimum of
five hours of entry-level training prior to presence with a client,
as follows:

(1) Two hours of orientation training regarding his or her role
as caregiver and the applicable terms of employment.

(2) Three hours of safety training, including basic safety
precautions, emergency procedures, and infection control.

(c) In addition to the requirements in subdivision (b), an
affiliated home care aide shall complete a minimum of five hours
of annual training. The annual training shall relate to core
competencies and be population specific, which shall include, but
not be limited to, the following areas:

(1) Clients’ rights and safety.

(2) How to provide for, and respond to, a client’s daily living
needs.

(3) How to report, prevent, and detect abuse and neglect.

(4) How to assist a client with personal hygiene and other home
care services.

(5) If transportation services are provided, how to safely
transport a client.

(d) The entry-level training and annual training described in
subdivisions (b) and (c) may be completed through an online
training program.

begin delete SEC. 296. end delete
begin insert SEC. 297. end insert   

Section 1796.45 of the Health and Safety Code is
amended to read:

1796.45.  

(a)  Affiliated home care aides hired on or after
January 1, 2016, shall submit to an examination 90 days prior to
employment, or within seven days after employment, to determine
that the individual is free of active tuberculosis disease.

(b) For purposes of this section, “examination” means a test for
tuberculosis infection that is recommended by the federal Centers
for Disease Control and Prevention (CDC) and licensed by the
federal Food and Drug Administration (FDA) and, if that test is
positive, an X-ray of the lungs. The aide shall not work as an
affiliated home care aide unless the licensee obtains documentation
from a licensed medical professional that there is no risk of
spreading the disease.

(c) After submitting to an examination, an affiliated home care
aide whose test for tuberculosis infection is negative shall be
required to undergo an examination at least once every two years.
Once an affiliated home care aide has a documented positive test
for tuberculosis infection that has been followed by an X-ray, the
examination is no longer required.

(d) After each examination, an affiliated home care aide shall
submit, and the home care organization shall keep on file, a
certificate from the examining practitioner showing that the
affiliated home care aide was examined and found free from active
tuberculosis disease.

(e) The examination is a condition of initial and continuing
employment with the home care organization.

(f) An affiliated home care aide who transfers employment from
one home care organization to another shall be deemed to meet
the requirements of subdivision (a) or (c) if the affiliated home
care aide can produce a certificate showing that he or she submitted
to the examination within the past two years and was found to be
free of active tuberculosis disease, or if it is verified by the home
care organization previously employing him or her that it has a
certificate on file that contains that showing and a copy of the
certificate is provided to the new home care organization prior to
the affiliated home care aide beginning employment.

begin delete SEC. 297. end delete
begin insert SEC. 298. end insert   

Section 4730.65 of the Health and Safety Code is
amended to read:

4730.65.  

(a)  Notwithstanding Sections 4730, 4730.1, and
4730.2, or any other law, the governing body of the Orange County
Sanitation District shall be a board of directors composed of all of
the following:

(1)  One member of the city council of each city located wholly
or partially within the district’s boundaries, except the City of
Yorba Linda, provided, however, a city within the Orange County
Sanitation District, the sewered portion of which city lies entirely
within another sanitary district, shall have no representation on
the board.

(2)  One member of the county board of supervisors.

(3)  One member of the governing body of each sanitary district,
the whole or part of which is included in the Orange County
Sanitation District.

(4)  One member of the governing body of a public agency
empowered to and engaged in the collection, transportation,
treatment, or disposal of sewage and that was a member agency
of a sanitation district consolidated into the Orange County
Sanitation District.

(5) One member of the governing body of the Yorba Linda
Water District.

(b) The governing body of the county and each city, sanitary
district, and public agency that is a member agency having a
representative on the board of directors of the Orange County
Sanitation District, may designate one of its members to act in the
place of its regular member in his or her absence or his or her
inability to act.

(c) An action shall not be taken at any meeting of the Orange
County Sanitation District’s board of directors unless a majority
of all authorized members of the board of directors is in attendance.

(d) A majority of the members of the board of directors present
is required to approve or otherwise act on any matter except as
otherwise required by law.

begin delete SEC. 298. end delete
begin insert SEC. 299. end insert   

Section 4766.5 of the Health and Safety Code, as
added by Section 21 of Chapter 158 of the Statutes of 2005, is
amended and renumbered to read:

4766.7.  

A district may destroy a record pursuant to Chapter 7
(commencing with Section 60200) of Division 1 of Title 6 of the
Government Code.

begin insert

begin insert SEC. 300. end insert   

end insert

begin insert Section 7158.3 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

7158.3.  

(a) The following definitions shall apply for purposes
of this section:

(1) “Cosmetic surgery” means surgery that is performed to alter
or reshape normal structures of the body in order to improve
appearance.

(2) “Donee” means a hospital, as defined in begin delete subdivision (f) of
Section 7150.1, end delete begin insert paragraph (12) of subdivision (a) of Section
7150.10, end insert or an organ procurement organization, as defined in
begin delete subdivision (j) of Section 7150.1, end delete begin insert paragraph (16) of subdivision
(a) of Section 7150.10, end insert or a tissue bank licensed pursuant to
Chapter 4.1 (commencing with Section 1635) of Division 2.

(3) “Reconstructive surgery” means surgery performed to correct
or repair abnormal structures of the body caused by congenital
defects, developmental abnormalities, trauma, infection, tumors,
or disease to do either of the following:

(A) To improve function.

(B) To create a normal appearance, to the extent possible.

(b) For purposes of accepting anatomical gifts, as defined in
begin insert paragraph (3) of end insert subdivision (a) of Section begin delete 7150.1, end delete begin insert 7150.10, end insert a
donee shall do all of the following:

(1) Revise existing informed consent forms and procedures to
advise a donor or, if the donor is deceased, the donor’s
representative, that tissue banks work with both nonprofit and
for-profit tissue processors and distributors, that it is possible that
donated skin may be used for cosmetic or reconstructive surgery
purposes, and that donated tissue may be used for transplants
outside of the United States.

(2) The revised consent form or procedure shall separately allow
the donor or donor’s representative to withhold consent for any of
the following:

(A) Donated skin to be used for cosmetic surgery purposes.

(B) Donated tissue to be used for applications outside of the
United States.

(C) Donated tissue to be used by for-profit tissue processors
and distributors.

(3) A donee shall be deemed to have complied with paragraph
(2) by designating tissue that has been donated with specific
restrictions on its use. Once the donee transfers the tissue to a
separate entity, the donee’s responsibility for compliance with any
restrictions on the tissue ceases.

(4) The donor may recover, in a civil action against any
individual or entity that fails to comply with this subdivision, civil
penalties to be assessed in an amount not less than one thousand
dollars ($1,000) and not more than five thousand dollars ($5,000),
plus court costs, as determined by the court. A separate penalty
shall be assessed for each individual or entity that fails to comply
with this subdivision. Any civil penalty provided under this
paragraph shall be in addition to any license revocation or
suspension, if appropriate, authorized under subdivision (c).

(5) If the consent of the donor or donor’s representative is
obtained in writing, the donee shall offer to provide the donor or
donor’s representative with a copy of the completed consent form.
If consent is obtained by telephone, the donee shall advise the
donor or donor’s representative that the conversation will be audio
recorded for verification and enforcement purposes, and shall offer
to provide the donor or donor’s representative with a written copy
of the recorded telephonic consent form.

(c) Violation of this section by a licensed health care provider
constitutes unprofessional conduct.

(d) This section shall not apply to the removal of sperm or ova
pursuant to Section 2260 of the Business and Professions Code.

begin delete SEC. 299. end delete
begin insert SEC. 301. end insert   

Section 8650.5 of the Health and Safety Code, as
added by Section 36 of Chapter 436 of the Statutes of 2001, is
repealed.

begin delete SEC. 300. end delete
begin insert SEC. 302. end insert   

The heading of Article 3 (commencing with Section
11140) of Chapter 3 of Division 10 of the Health and Safety Code
is repealed.

begin delete SEC. 301. end delete
begin insert SEC. 303. end insert   

The heading of Article 2 (commencing with Section
11760.5) of Chapter 1 of Part 2 of Division 10.5 of the Health and
Safety Code, as added by Chapter 679 of the Statutes of 1979, is
repealed.

begin delete SEC. 302. end delete
begin insert SEC. 304. end insert   

The heading of Article 6 (commencing with Section
11780) of Chapter 2 of Part 2 of Division 10.5 of the Health and
Safety Code is repealed.

begin delete SEC. 303. end delete
begin insert SEC. 305. end insert   

Division 10.10 (commencing with Section 11999.30)
of the Health and Safety Code is repealed.

begin delete SEC. 304. end delete
begin insert SEC. 306. end insert   

Section 13143.5 of the Health and Safety Code, as
added by Chapter 1204 of the Statutes of 1973, is amended and
renumbered to read:

13143.3 begin insert . end insert   

The State Fire Marshal or any local public entity shall
not charge any fee for enforcing the provisions of Section 13143
or regulations adopted pursuant thereto with respect to facilities
providing nonmedical board, room, and care for six or less children
which are required to be licensed under the provisions of Chapter
2 (commencing with Section 1250) of Division 2.

begin delete SEC. 305. end delete
begin insert SEC. 307. end insert   

The heading of Chapter 3 (commencing with Section
16500) of Division 12.5 of the Health and Safety Code, as added
by Section 2 of Chapter 953 of the Statutes of 1989, is amended
and renumbered to read:

 

Chapter  3.5. School Buildings

 

begin delete SEC. 306. end delete
begin insert SEC. 308. end insert   

Section 16500 of the Health and Safety Code is
amended to read:

16500.  

The State Architect shall adopt guidelines applicable
to substandard conditions of school buildings, as defined in Section
17283 of the Education Code, which guidelines shall take into
consideration the unique design, use, safety needs, and construction
of the school buildings.

begin delete SEC. 307. end delete
begin insert SEC. 309. end insert   

The heading of Article 5.5 (commencing with
Section 25159.10) of Chapter 6.5 of Division 20 of the Health and
Safety Code, as added by Section 1 of Chapter 1591 of the Statutes
of 1985, is amended and renumbered to read:

 

Article 5.6.  The Toxic Injection Well Control Act of 1985

 

begin delete SEC. 308. end delete
begin insert SEC. 310. end insert   

Section 25163.3 of the Health and Safety Code is
amended to read:

25163.3.  

A person who initially collects hazardous waste at a
remote site and transports that hazardous waste to a consolidation
site operated by the generator and who complies with the
notification requirements of subdivision (d) of Section 25110.10
shall be exempt from the manifest and transporter registration
requirements of Sections 25160 and 25163 with regard to the
hazardous waste if all of the following conditions are met:

(a) The hazardous waste is a non-RCRA hazardous waste, or
the hazardous waste or its transportation is otherwise exempt from,
or is not otherwise regulated pursuant to, the federal act.

(b) The conditions and requirements of Section 25121.3 are
met.

(c) The regulations adopted by the department pertaining to
personnel training requirements for generators are complied with
for all personnel handling the hazardous waste during transportation
from the remote site to the consolidation site.

(d) The hazardous waste is transported by employees of the
generator or by trained contractors under the control of the
generator, in vehicles that are under the control of the generator,
or by registered hazardous waste transporters. The generator shall
assume liability for a spill of hazardous waste being transported
under this section by the generator, or a contractor in a vehicle
under the control of the generator or contractor. This subdivision
does not bar any agreement to insure, hold harmless, or indemnify
a party to the agreement for any liability under this section or
otherwise bars any cause of action a generator would otherwise
have against any other party.

(e) The hazardous waste is not held at any interim location,
other than another remote site operated by the same generator, for
more than eight hours, unless that holding is required by other
provisions of law.

(f) Not more than 275 gallons or 2,500 pounds, whichever is
greater, of hazardous waste is transported in any single shipment,
except for the following:

(1) A generator who is a public utility, local publicly owned
utility, or municipal utility district may transport up to 1,600
gallons of hazardous wastewater from the dewatering of one or
more utility vaults, or up to 500 gallons of another liquid hazardous
waste in a single shipment.

(2) A generator who is a public utility, local publicly owned
utility, or municipal utility district may transport up to 5,000
gallons of mineral oil from a transformer, circuit breakers, or
capacitors, owned by the generator, in a single shipment if the oil
does not exhibit the characteristic of toxicity pursuant to the test
specified in subparagraph (B) of paragraph (2) of subdivision (a)
of Section 66261.24 of Title 22 of the California Code of
Regulations.

(3) (A) A generator who is a public utility, local publicly owned
utility, or municipal utility district may transport up to 5,000
gallons of hazardous wastewater from the dewatering of a utility
vault in an emergency situation.

(B) For the purposes of this paragraph “emergency situation”
means that utility vault dewatering necessitates immediate response
to avoid endangerment to human health, public safety, or the
environment, under one or more of the following circumstances:

(i) A vehicle hits a utility pole or stationary utility equipment
and knocks down a transformer that spills oil on a public area.

(ii) A spill occurs at or near a vault rendering the contents
potentially hazardous and crews need to remove the liquid to
decontaminate the vault and to access critical equipment to avoid
a service outage.

(iii) A spill occurs at or near a vault that renders the contents
potentially hazardous and rainwater flowing into the vault threatens
to cause an overflow that will spill into the surrounding area.

(iv) Groundwater intrusion threatens the electrical equipment
inside the vault and the reliability of the electrical system.

(v) Heavy rain events, due to the rate of rainfall, threaten the
cables and equipment inside the vault.

(C) In transporting hazardous waste pursuant to this paragraph,
the generator shall only collect hazardous waste from one utility
vault and shall not consolidate hazardous waste from multiple
sites.

(g) A shipping paper containing all of the following information
accompanies the hazardous waste while in transport, except as
provided in subdivision (h):

(1) A list of the hazardous wastes being transported.

(2) The type and number of containers being used to transport
each type of hazardous waste.

(3) The quantity, by weight or volume, of each type of hazardous
waste being transported.

(4) The physical state, such as solid, powder, liquid, semiliquid,
or gas, of each type of hazardous waste being transported.

(5) The location of the remote site where the hazardous waste
is initially collected.

(6) The location of any interim site where the hazardous waste
is held en route to the consolidation site.

(7) The name, address, and telephone number of the generator,
and, if different, the address and telephone number of the
consolidation site to which the hazardous waste is being
transported.

(8) The name and telephone number of an emergency response
contact, for use in the event of a spill or other release.

(9) The name of the individual or individuals who transport the
hazardous waste from the remote site to the consolidation site.

(10) The date that the generator first begins to actively manage
the hazardous waste at the remote site, the date that the shipment
leaves the remote site where the hazardous waste is initially
collected, and the date that the shipment arrives at the consolidation
site.

(h) A shipping paper is not required if the total quantity of the
shipment does not exceed 10 pounds of hazardous waste, except
that a shipping paper is required to transport any quantity of
extremely or acutely hazardous waste.

(i) All shipments conform with all applicable requirements of
the United States Department of Transportation for hazardous
materials shipments.

begin delete SEC. 309. end delete
begin insert SEC. 311. end insert   

Section 25262 of the Health and Safety Code is
amended to read:

25262.  

(a)  A responsible party for a hazardous materials
release site may request the committee at any time to designate an
administering agency to oversee a site investigation and remedial
action at the site. The committee shall designate an administering
agency as responsible for the site within 45 days of the date the
request is received. A request to designate an administering agency
may be denied only if the committee makes one of the following
findings:

(1)  No single agency in state or local government has the
expertise needed to adequately oversee a site investigation and
remedial action at the site.

(2)  Designating an administering agency will have the effect
of reversing a regulatory or enforcement action initiated by an
agency that has jurisdiction over the site, a facility on the site, or
an activity at the site.

(3)  Designating an administering agency will prevent a
regulatory or enforcement action required by federal law or
regulations.

(4)  The administering agency and the responsible party are
local agencies formed, in whole or in part, by the same political
subdivision.

(b)  A responsible party who requests the designation of an
administering agency for a hazardous materials release site shall
provide the committee with a brief description of the site, an
analysis of the known or suspected nature of the release or
threatened release that is the subject of required site investigation
or remedial action, a description of the type of facility from which
the release occurred or the type of activity that caused the release,
a specification of the regulatory or enforcement actions that have
been taken, or are pending, with respect to the release, and a
statement of which agency the responsible party believes should
be designated as administering agency for the site.

(c)  (1)  The committee shall take all of the following factors
into account in determining which agency to designate as
administering agency for a site:

(A)  The type of release that is the subject of site investigation
and remedial action.

(B)  The nature of the threat that the release poses to human
health and safety or to the environment.

(C)  The source of the release, the type of facility or activity
from which the release occurred, the regulatory programs that
govern the facility or activity involved, and the agency or agencies
that administer those regulatory programs.

(D)  The regulatory history of the site, the types of regulatory
actions or enforcement actions that have been taken with respect
to the site or the facility or activity from which the release occurred,
and the experience and involvement that various agencies have
had with the site.

(E)  The capabilities and expertise of the agencies that are
candidates for designation as the administering agency for the site
and the degree to which those capabilities and that expertise are
applicable to the type of release at the site, the nature of the threat
that the release poses to health and safety or the environment and
the probable remedial measures that will be required.

(2)  After weighing the factors described in paragraph (1) as
they apply to the site, the committee shall use the criteria specified
in subparagraphs (A), (B), (C), and (D) as guidelines for
designating the administering agency. If more than one of the
criteria apply to the site, the committee shall use its best judgment,
taking into account the known facts concerning the hazardous
materials release at the site and its regulatory history, in
determining which agency may best serve as the administering
agency. The criteria are as follows:

(A)  The administering agency shall be the Department of Toxic
Substances Control if one of the following applies:

(i)  The department has issued an order, or otherwise initiated
action, with respect to the release at the site pursuant to Section
25355, 25355.5, or 25358.3.

(ii)  The department has issued an order for corrective action at
the site pursuant to Section 25187.

(iii)  The source of the release is a facility or hazardous waste
management unit or an activity that is, or was, regulated by the
department pursuant to Chapter 6.5 (commencing with Section
25100).

(iv)  The department is conducting, or has conducted, oversight
of the site investigation and remedial action at the site at the request
of the responsible party.

(B)  The administering agency shall be the California regional
water quality control board for the region in which the site is
located, if one of the following applies:

(i)  The California regional water quality control board has
issued a cease and desist order pursuant to Section 13301, or a
cleanup and abatement order pursuant to Section 13304 of the
Water Code in connection with the release at the site.

(ii)  The source of the release is a facility or an activity that is
subject to waste discharge requirements issued by the California
regional water quality control board pursuant to Section 13263 of
the Water Code or that is regulated by the California regional water
quality control board pursuant to Article 5.6 (commencing with
Section 25159.10) of, or Article 9.5 (commencing with Section
25208) of, Chapter 6.5, or pursuant to Chapter 6.67 (commencing
with Section 25270).

(iii)  The California regional water quality control board has
jurisdiction over the site pursuant to Chapter 5.6 (commencing
with Section 13390) of Division 7 of the Water Code.

(C)  The administering agency shall be the Department of Fish
and Game if the release has polluted or contaminated the waters
of the state and the department has taken action against the
responsible party pursuant to Section 2014 or 12015 of, or Article
1 (commencing with Section 5650) of Chapter 2 of Part 1 of
Division 6 of, the Fish and Game Code, subsection (f) of Section
107 of the Comprehensive Environmental Response,
Compensation, and Liability Act, as amended, (42 U.S.C. Sec.
9607 (f)), or Section 311 of the Federal Water Pollution Act, as
amended (33 U.S.C. Sec. 1321).

(D)  The administering agency shall be a local agency if any
one of the following circumstances is applicable:

(i)  The source of the release at the site is an underground storage
tank, as defined in subdivision (y) of Section 25281, the local
agency is the agency described in subdivision (i) of Section 25281,
and there is no evidence of any extensive groundwater
contamination at the site.

(ii)  The local agency has accepted responsibility for overseeing
the site investigation or remedial action at the site and a state
agency is not involved.

(iii)  The local agency has agreed to oversee the site
investigation or remedial action at the site and is certified, or has
been approved, by a state agency to conduct that oversight.

(d)  A responsible party for a hazardous materials release site
may request the designation of an administering agency for the
site pursuant to this section only once. The action of the committee
on the request is a final action and is not subject to further
administrative or judicial review.

begin delete SEC. 310. end delete
begin insert SEC. 312. end insert   

The heading of Article 8 (commencing with Section
25299.80) of Chapter 6.75 of Division 20 of the Health and Safety
Code is repealed.

begin delete SEC. 311. end delete
begin insert SEC. 313. end insert   

The heading of Article 12 (commencing with Section
25299.97) of Chapter 6.75 of Division 20 of the Health and Safety
Code, as added by Section 7 of Chapter 814 of the Statutes of
1997, is repealed.

begin delete SEC. 312. end delete
begin insert SEC. 314. end insert   

Section 25299.97 of the Health and Safety Code, as
amended by Section 134 of Chapter 745 of the Statutes of 2001,
is repealed.

begin delete SEC. 313. end delete
begin insert SEC. 315. end insert   

Section 25299.97 of the Health and Safety Code, as
amended by Section 135 of Chapter 745 of the Statutes of 2001,
is amended to read:

25299.97.  

(a) For the purposes of this article, the following
definitions shall apply:

(1) “Public drinking water well” means a wellhead that provides
drinking water to a public water system, as that term is defined in
Section 116275, that is regulated by the State Water Resources
Control Board and that is subject to Section 116455.

(2) “MTBE” means methyl tertiary-butyl ether.

(3) “GIS mapping system” means a geographic information
system that collects, stores, retrieves, analyzes, and displays
environmental geographic data in a data base that is accessible to
the public.

(4) “Motor vehicle fuel” includes gasoline, natural gasoline,
blends of gasoline and alcohol or gasoline and oxygenates, and
any inflammable liquid, by whatever name the liquid may be
known or sold, that is used or usable for propelling motor vehicles
operated by the explosion type engine. It does not include kerosine,
liquefied petroleum gas, or natural gas, in liquid or gaseous form.

(5) “Oxygenated motor vehicle fuel” is motor vehicle fuel, as
defined in paragraph (4), that meets the federal definition for
“Oxygenated fuel” in Section 7545(m) of Title 42 of the United
States Code.

(6) “Oxygenate” means an organic compound containing oxygen
that has been approved by the United States Environmental
Protection Agency as a gasoline additive to meet the requirements
for an “oxygenated fuel” pursuant to Section 7545 of Title 42 of
the United States Code.

(b) The State Water Resources Control Board shall upgrade the
data base created by Section 25296.35. This upgrade shall include
the establishment of a statewide GIS mapping system as described
in this section only upon an appropriation by the Legislature for
this purpose.

(c) (1) For purposes of subdivision (b), the board shall create
a GIS Mapping and Data Management Advisory Committee. The
committee shall give the board advice on location standards,
protocols, metadata, and the appropriate data to expand the data
base to create a cost-effective GIS mapping system that will
provide the appropriate information to allow agencies to better
protect public drinking water wells and, if feasible, nearby aquifers
that are reasonably expected to be used as drinking water, from
contamination by motor vehicle fuel from underground storage
tanks and intrastate and interstate pipelines that are regulated by
the State Fire Marshal pursuant to the California Pipeline Safety
Act of 1981, Chapter 5.5 (commencing with Section 51010.5) of
Part 1 of Division 1 of Title 5 of the Government Code.

(2) The advisory committee shall include, at a minimum,
members from appropriate state and local agencies, affected
industry and business, the water agencies that provide drinking
water in Santa Monica, the water agencies that provide drinking
water in the Santa Clara Valley, nonprofit environmental groups
dedicated to the conservation and preservation of natural resources,
and underground storage tank owners.

(d) (1) The board shall create two pilot projects, the Santa
Monica Groundwater Pilot Project and the Santa Clara Valley
Groundwater Pilot Project, which shall terminate on July 1, 1999.

(2) The board shall create the pilot projects with the advice of
the advisory committee so as to expedite and prioritize the
upgrading of the data base for those regions of the state where
groundwater provides, or would be called on in an emergency to
provide, a significant portion of the region’s drinking water.

(3) The board shall use the pilot projects to define and assess
the parameters of the data base, identify data needs, develop
opportunities to electronically link data bases and electronic
submission of information, offer access to the public via the
Internet, streamline existing processes, and work out the details
for data management and a GIS mapping system as described in
this article.

(4) The pilot projects shall study appropriate notification to
public water systems and response times.

(e) To upgrade the data base as required by this section, the
board, in consultation with the advisory committee, shall do all of
the following:

(1) Coordinate with the Department of Water Resources and
the State Department of Public Health to obtain the location of
existing drinking water wells and appropriate water resource and
quality data to meet the requirements of this article.

(2) Coordinate with local agencies authorized to implement this
chapter to obtain the location of all underground storage tanks that
store motor vehicle fuel that are within 1,000 feet of a public
drinking water well.

(3) Coordinate with local agencies authorized to implement this
chapter to add the location of all known releases of motor vehicle
fuel from underground storage tanks that are within 1,000 feet of
a drinking water well.

(4) Coordinate with the State Fire Marshal to add the location
and leak history of all pipelines or segments of pipelines that
transport motor vehicle fuel and that are regulated by the State
Fire Marshal pursuant to Chapter 5.5 (commencing with Section
51010) of Part 1 of Division 1 of Title 5 of the Government Code
that are within 1,000 feet of an existing public drinking water well.

(f) The board may expend up to four hundred thousand dollars
($400,000) from the Underground Storage Tank Cleanup Fund for
the purposes set forth in Section 25299.36 to fund the GIS mapping
system projects referred to in this section.

begin delete SEC. 314. end delete
begin insert SEC. 316. end insert   

Section 25507.2 of the Health and Safety Code is
amended to read:

25507.2.  

Unless otherwise required by a local ordinance, the
unified program agency shall exempt a business operating an
unstaffed facility located at least one-half mile from the nearest
occupied structure from Sections 25508.2 and 25511, and shall
subject the business to Sections 25505, 25506, and 25507 only as
specified in this section, if the business is not otherwise subject to
the requirements of applicable federal law, and all of the following
requirements are met:

(a) The types and quantities of materials onsite are limited to
one or more of the following:

(1) One thousand standard cubic feet of compressed inert gases
(asphyxiation and pressure hazards only).

(2) Five hundred gallons of combustible liquid used as a fuel
source.

(3) Corrosive liquids, not to exceed 500 pounds of extremely
hazardous substances, used as electrolytes, and in closed containers.

(4) Five hundred gallons of lubricating and hydraulic fluids.

(5) One thousand two hundred gallons of hydrocarbon gas used
as a fuel source.

(6) Any quantity of mineral oil contained within electrical
equipment, such as transformers, bushings, electrical switches,
and voltage regulators, if the spill prevention control and
countermeasure plan has been prepared for quantities that meet or
exceed 1,320 gallons.

(b) The facility is secured and not accessible to the public.

(c) Warning signs are posted and maintained for hazardous
materials pursuant to the California Fire Code.

(d) (1) Notwithstanding Sections 25505 and 25507, a one-time
business plan, except for the emergency response plan and training
elements specified in paragraphs (3) and (4) of subdivision (a) of
Section 25505, is submitted to the statewide information
management system. This one-time business plan submittal is
subject to a verification inspection by the unified program agency
and the unified program agency may assess a fee not to exceed the
actual costs of processing and for inspection, if an inspection is
conducted.

(2) If the information contained in the one-time submittal of the
business plan changes and the time period of the change is longer
than 30 days, the business plan shall be resubmitted within 30 days
to the statewide information management system to reflect any
change in the business plan. A fee not to exceed the actual costs
of processing and inspection, if conducted, may be assessed by
the unified program agency.

begin delete SEC. 315. end delete
begin insert SEC. 317. end insert   

Section 25997 of the Health and Safety Code, as
added by Section 1 of Chapter 51 of the Statutes of 2010, is
amended and renumbered to read:

25996.1.  

A person who violates this chapter is guilty of a
misdemeanor, and upon conviction thereof shall be punished by
a fine not to exceed one thousand dollars ($1,000) or by
imprisonment in the county jail for a period not to exceed 180 days
or by both that fine and imprisonment.

begin delete SEC. 316. end delete
begin insert SEC. 318. end insert   

Section 25997.1 of the Health and Safety Code is
amended and renumbered to read:

25996.3.  

The provisions of this chapter are in addition to, and
not in lieu of, any other laws protecting animal welfare, including
the Penal Code. This chapter shall not be construed to limit any
state law or regulation protecting the welfare of animals, nor shall
anything in this chapter prevent a local governing body from
adopting and enforcing its own animal welfare laws and
regulations.

begin delete SEC. 317. end delete
begin insert SEC. 319. end insert   

Section 33492.78 of the Health and Safety Code is
amended to read:

33492.78.  

(a) Section 33607.5 does not apply to an agency
created pursuant to this article. For purposes of Sections 42238.02,
84750.5, and 84751 of the Education Code, funds allocated
pursuant to this section shall be treated as if they were allocated
pursuant to Section 33607.5.

(1) This section applies to each redevelopment project area
created pursuant to a redevelopment plan that contains the
provisions required by Section 33670 and is created pursuant to
this article. All the amounts calculated pursuant to this section
shall be calculated after the amount required to be deposited in the
Low and Moderate Income Housing Fund pursuant to Sections
33334.2, 33334.3, and 33334.6, as modified by Section 33492.76,
has been deducted from the total amount of tax-increment funds
received by the agency in the applicable fiscal year.

(2) The payments made pursuant to this section are in addition
to any amounts the school district or districts and community
college district or districts receive pursuant to subdivision (a) of
Section 33670. The agency shall reduce its payments pursuant to
this section to an affected school or community college district by
any amount the agency has paid, directly or indirectly, pursuant
to Section 33445, 33445.5, or 33446, or any provision of law other
than this section for, or in connection with, a public facility owned
or leased by that affected school or community college district.

(3) (A) Of the total amount paid each year pursuant to this
section to school districts, 43.9 percent shall be considered to be
property taxes for the purposes of paragraph (1) of subdivision (j)
of Section 42238.02 of the Education Code, and 56.1 percent shall
not be considered to be property taxes for the purposes of that
section, and shall be available to be used for educational facilities.

(B) Of the total amount paid each year pursuant to this section
to community college districts, 47.5 percent shall be considered
to be property taxes for the purposes of Section 84751 of the
Education Code, and 52.5 percent shall not be considered to be
property taxes for the purposes of that section, and shall be
available to be used for educational facilities.

(C) Of the total amount paid each year pursuant to this section
to county offices of education, 19 percent shall be considered to
be property taxes for the purposes of paragraph (1) of subdivision
(c) of Section 2575 of the Education Code, and 81 percent shall
not be considered to be property taxes for the purposes of that
section, and shall be available to be used for educational facilities.

(D) Of the total amount paid each year pursuant to this section
to special education, 19 percent shall be considered to be property
taxes for the purposes of paragraph (1) of subdivision (j) of Section
42238.02 of the Education Code, and 81 percent shall not be
considered to be property taxes for the purposes of that section,
and shall be available to be used for educational facilities.

(4) Local educational agencies that use funds received pursuant
to this section for educational facilities shall spend these funds at
schools that are any one of the following:

(A) Within the project area.

(B) Attended by students from the project area.

(C) Attended by students generated by projects that are assisted
directly by the redevelopment agency.

(D) Determined by a local educational agency to be of benefit
to the project area.

(b) Commencing with the first fiscal year in which the agency
receives tax increments, and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment
agency created pursuant to this article shall pay to each affected
school and community college district an amount equal to the
product of 25 percent times the percentage share of total property
taxes collected that are allocated to each affected school or
community college district, including any amount allocated to each
district pursuant to Sections 97.03 and 97.035 of the Revenue and
Taxation Code times the total of the tax increments received by
the agency after the amount required to be deposited in the Low
and Moderate Income Housing Fund has been deducted.

(c) Commencing with the 11th fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment
agency created pursuant to this article shall pay to each affected
school and community college district, in addition to the amounts
paid pursuant to subdivision (b), an amount equal to the product
of 21 percent times the percentage share of total property taxes
collected that are allocated to each affected school or community
college district, including any amount allocated to each district
pursuant to Sections 97.03 and 97.035 of the Revenue and Taxation
Code times the total of the first adjusted tax increments received
by the agency after the amount required to be deposited in the Low
and Moderate Income Housing Fund has been deducted. The first
adjusted tax increments received by the agency shall be calculated
by applying the tax rate against the amount of assessed value by
which the current year assessed value exceeds the first adjusted
base year assessed value. The first adjusted base year assessed
value is the assessed value of the project area in the 10th fiscal
year in which the agency receives tax increment.

(d) Commencing with the 31st fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment
agency shall pay to the affected school and community college
districts, in addition to the amounts paid pursuant to subdivisions
(b) and (c), an amount equal to 14 percent times the percentage
share of total property taxes collected that are allocated to each
affected school or community college district, including any
amount allocated to each district pursuant to Sections 97.03 and
97.035 of the Revenue and Taxation Code times the total of the
second adjusted tax increments received by the agency after the
amount required to be deposited in the Low and Moderate Income
Housing Fund has been deducted. The second adjusted tax
increments received by the agency shall be calculated by applying
the tax rate against the amount of assessed value by which the
current year assessed value exceeds the second adjusted base year
assessed value. The second adjusted base year assessed value is
the assessed value of the project area in the 30th fiscal year in
which the agency receives tax increments.

(e) (1) The Legislature finds and declares both of the following:

(A) The payments made pursuant to this section are necessary
in order to alleviate the financial burden and detriment that affected
school and community college districts may incur as a result of
the adoption of a redevelopment plan, and payments made pursuant
to this section will benefit redevelopment project areas.

(B) The payments made pursuant to this section are the exclusive
payments that are required to be made by a redevelopment agency
to affected school and community college districts during the term
of a redevelopment plan.

(2) Notwithstanding any other law, a redevelopment agency
shall not be required, either directly or indirectly, as a measure to
mitigate a significant environmental effect or as part of any
settlement agreement or judgment brought in any action to contest
the validity of a redevelopment plan pursuant to Section 33501,
to make any other payments to affected school or community
college districts, or to pay for public facilities that will be owned
or leased to an affected school or community college district.

(f) As used in this section, a “local educational agency” includes
a school district, a community college district, or a county office
of education.

begin delete SEC. 318. end delete
begin insert SEC. 320. end insert   

Section 34177 of the Health and Safety Code is
amended to read:

34177.  

Successor agencies are required to do all of the
following:

(a) Continue to make payments due for enforceable obligations.

(1) On and after February 1, 2012, and until a Recognized
Obligation Payment Schedule becomes operative, only payments
required pursuant to an enforceable obligations payment schedule
shall be made. The initial enforceable obligation payment schedule
shall be the last schedule adopted by the redevelopment agency
under Section 34169. However, payments associated with
obligations excluded from the definition of enforceable obligations
by paragraph (2) of subdivision (d) of Section 34171 shall be
excluded from the enforceable obligations payment schedule and
be removed from the last schedule adopted by the redevelopment
agency under Section 34169 prior to the successor agency adopting
it as its enforceable obligations payment schedule pursuant to this
subdivision. The enforceable obligation payment schedule may
be amended by the successor agency at any public meeting and
shall be subject to the approval of the oversight board as soon as
the board has sufficient members to form a quorum. In recognition
of the fact that the timing of the California Supreme Court’s ruling
in the case California Redevelopment Association v. Matosantos
(2011) 53 Cal.4th 231 delayed the preparation by successor
agencies and the approval by oversight boards of the January 1,
2012, through June 30, 2012, Recognized Obligation Payment
Schedule, a successor agency may amend the Enforceable
Obligation Payment Schedule to authorize the continued payment
of enforceable obligations until the time that the January 1, 2012,
through June 30, 2012, Recognized Obligation Payment Schedule
has been approved by the oversight board and by the Department
of Finance. The successor agency may utilize reasonable estimates
and projections to support payment amounts for enforceable
obligations if the successor agency submits appropriate supporting
documentation of the basis for the estimate or projection to the
Department of Finance and the auditor-controller.

(2) The Department of Finance and the Controller shall each
have the authority to require any documents associated with the
enforceable obligations to be provided to them in a manner of their
choosing. Any taxing entity, the department, and the Controller
shall each have standing to file a judicial action to prevent a
violation under this part and to obtain injunctive or other
appropriate relief.

(3) Commencing on the date the Recognized Obligation Payment
Schedule is valid pursuant to subdivision (l), only those payments
listed in the Recognized Obligation Payment Schedule may be
made by the successor agency from the funds specified in the
Recognized Obligation Payment Schedule. In addition, after it
becomes valid, the Recognized Obligation Payment Schedule shall
supersede the Statement of Indebtedness, which shall no longer
be prepared nor have any effect under the Community
Redevelopment Law (Part 1 (commencing with Section 33000)).

(4) The act adding this part shall not be construed as preventing
a successor agency, with the prior approval of the oversight board,
as described in Section 34179, from making payments for
enforceable obligations from sources other than those listed in the
Recognized Obligation Payment Schedule.

(5) From February 1, 2012, to July 1, 2012, a successor agency
does not have authority and is hereby prohibited from accelerating
payment or making any lump-sum payments that are intended to
prepay loans unless the accelerated repayments were required prior
to the effective date of this part.

(b) Maintain reserves in the amount required by indentures,
trust indentures, or similar documents governing the issuance of
outstanding redevelopment agency bonds.

(c) Perform obligations required pursuant to any enforceable
obligation.

(d) Remit unencumbered balances of redevelopment agency
funds to the county auditor-controller for distribution to the taxing
entities, including, but not limited to, the unencumbered balance
of the Low and Moderate Income Housing Fund of a former
redevelopment agency. In making the distribution, the county
auditor-controller shall utilize the same methodology for allocation
and distribution of property tax revenues provided in Section
34188.

(e) Dispose of assets and properties of the former redevelopment
agency as directed by the oversight board; provided, however, that
the oversight board may instead direct the successor agency to
transfer ownership of certain assets pursuant to subdivision (a) of
Section 34181. The disposal is to be done expeditiously and in a
manner aimed at maximizing value. Proceeds from asset sales and
related funds that are no longer needed for approved development
projects or to otherwise wind down the affairs of the agency, each
as determined by the oversight board, shall be transferred to the
county auditor-controller for distribution as property tax proceeds
under Section 34188. The requirements of this subdivision do not
apply to a successor agency that has been issued a finding of
completion by the Department of Finance pursuant to Section
34179.7.

(f) Enforce all former redevelopment agency rights for the
benefit of the taxing entities, including, but not limited to,
continuing to collect loans, rents, and other revenues that were due
to the redevelopment agency.

(g) Effectuate transfer of housing functions and assets to the
appropriate entity designated pursuant to Section 34176.

(h) Expeditiously wind down the affairs of the redevelopment
agency pursuant to the provisions of this part and in accordance
with the direction of the oversight board.

(i) Continue to oversee development of properties until the
contracted work has been completed or the contractual obligations
of the former redevelopment agency can be transferred to other
parties. Bond proceeds shall be used for the purposes for which
bonds were sold unless the purposes can no longer be achieved,
in which case, the proceeds may be used to defease the bonds.

(j) Prepare a proposed administrative budget and submit it to
the oversight board for its approval. The proposed administrative
budget shall include all of the following:

(1) Estimated amounts for successor agency administrative costs
for the upcoming six-month fiscal period.

(2) Proposed sources of payment for the costs identified in
paragraph (1).

(3) Proposals for arrangements for administrative and operations
services provided by a city, county, city and county, or other entity.

(k) Provide administrative cost estimates, from its approved
administrative budget that are to be paid from property tax revenues
deposited in the Redevelopment Property Tax Trust Fund, to the
county auditor-controller for each six-month fiscal period.

(l) (1) Before each six-month fiscal period, prepare a
Recognized Obligation Payment Schedule in accordance with the
requirements of this paragraph. For each recognized obligation,
the Recognized Obligation Payment Schedule shall identify one
or more of the following sources of payment:

(A) Low and Moderate Income Housing Fund.

(B) Bond proceeds.

(C) Reserve balances.

(D) Administrative cost allowance.

(E) The Redevelopment Property Tax Trust Fund, but only to
the extent no other funding source is available or when payment
from property tax revenues is required by an enforceable obligation
or by the provisions of this part.

(F) Other revenue sources, including rents, concessions, asset
sale proceeds, interest earnings, and any other revenues derived
from the former redevelopment agency, as approved by the
oversight board in accordance with this part.

(2) A Recognized Obligation Payment Schedule shall not be
deemed valid unless all of the following conditions have been met:

(A) A Recognized Obligation Payment Schedule is prepared
by the successor agency for the enforceable obligations of the
former redevelopment agency. The initial schedule shall project
the dates and amounts of scheduled payments for each enforceable
obligation for the remainder of the time period during which the
redevelopment agency would have been authorized to obligate
property tax increment had the redevelopment agency not been
dissolved.

(B) The Recognized Obligation Payment Schedule is submitted
to and duly approved by the oversight board. The successor agency
shall submit a copy of the Recognized Obligation Payment
Schedule to the county administrative officer, the county
auditor-controller, and the Department of Finance at the same time
that the successor agency submits the Recognized Obligation
Payment Schedule to the oversight board for approval.

(C) A copy of the approved Recognized Obligation Payment
Schedule is submitted to the county auditor-controller, the
Controller’s office, and the Department of Finance, and is posted
on the successor agency’s Internet Web site.

(3) The Recognized Obligation Payment Schedule shall be
forward looking to the next six months. The first Recognized
Obligation Payment Schedule shall be submitted to the Controller’s
office and the Department of Finance by April 15, 2012, for the
period of January 1, 2012, to June 30, 2012, inclusive. This
Recognized Obligation Payment Schedule shall include all
payments made by the former redevelopment agency between
January 1, 2012, through January 31, 2012, and shall include all
payments proposed to be made by the successor agency from
February 1, 2012, through June 30, 2012. Former redevelopment
agency enforceable obligation payments due, and reasonable or
necessary administrative costs due or incurred, prior to January 1,
2012, shall be made from property tax revenues received in the
spring of 2011 property tax distribution, and from other revenues
and balances transferred to the successor agency.

(m) The Recognized Obligation Payment Schedule for the period
of January 1, 2013, to June 30, 2013, shall be submitted by the
successor agency, after approval by the oversight board, no later
than September 1, 2012. Commencing with the Recognized
Obligation Payment Schedule covering the period July 1, 2013,
through December 31, 2013, successor agencies shall submit an
oversight board-approved Recognized Obligation Payment
Schedule to the Department of Finance and to the county
auditor-controller no fewer than 90 days before the date of property
tax distribution. The Department of Finance shall make its
determination of the enforceable obligations and the amounts and
funding sources of the enforceable obligations no later than 45
days after the Recognized Obligation Payment Schedule is
submitted. Within five business days of the department’s
determination, a successor agency may request additional review
by the department and an opportunity to meet and confer on
disputed items. The meet and confer period may vary; an untimely
submittal of a Recognized Obligation Payment Schedule may result
in a meet and confer period of less than 30 days. The department
shall notify the successor agency and the county auditor-controllers
as to the outcome of its review at least 15 days before the date of
property tax distribution.

(1) The successor agency shall submit a copy of the Recognized
Obligation Payment Schedule to the Department of Finance
electronically, and the successor agency shall complete the
Recognized Obligation Payment Schedule in the manner provided
for by the department. A successor agency is in noncompliance
with this paragraph if it only submits to the department an
electronic message or a letter stating that the oversight board has
approved a Recognized Obligation Payment Schedule.

(2) If a successor agency does not submit a Recognized
Obligation Payment Schedule by the deadlines provided in this
subdivision, the city, county, or city and county that created the
redevelopment agency shall be subject to a civil penalty equal to
ten thousand dollars ($10,000) per day for every day the schedule
is not submitted to the department. The civil penalty shall be paid
to the county auditor-controller for allocation to the taxing entities
under Section 34183. If a successor agency fails to submit a
Recognized Obligation Payment Schedule by the deadline, any
creditor of the successor agency or the Department of Finance or
any affected taxing entity shall have standing to and may request
a writ of mandate to require the successor agency to immediately
perform this duty. Those actions may be filed only in the County
of Sacramento and shall have priority over other civil matters.
Additionally, if an agency does not submit a Recognized Obligation
Payment Schedule within 10 days of the deadline, the maximum
administrative cost allowance for that period shall be reduced by
25 percent.

(3) If a successor agency fails to submit to the department an
oversight board-approved Recognized Obligation Payment
Schedule that complies with all requirements of this subdivision
within five business days of the date upon which the Recognized
Obligation Payment Schedule is to be used to determine the amount
of property tax allocations, the department may determine if any
amount should be withheld by the county auditor-controller for
payments for enforceable obligations from distribution to taxing
entities, pending approval of a Recognized Obligation Payment
Schedule. The county auditor-controller shall distribute the portion
of any of the sums withheld pursuant to this paragraph to the
affected taxing entities in accordance with paragraph (4) of
subdivision (a) of Section 34183 upon notice by the department
that a portion of the withheld balances are in excess of the amount
of enforceable obligations. The county auditor-controller shall
distribute withheld funds to the successor agency only in
accordance with a Recognized Obligation Payment Schedule
approved by the department. County auditor-controllers shall lack
the authority to withhold any other amounts from the allocations
provided for under Section 34183 or 34188 unless required by a
court order.

(4) (A) The Recognized Obligation Payment Schedule payments
required pursuant to this subdivision may be scheduled beyond
the existing Recognized Obligation Payment Schedule cycle upon
a showing that a lender requires cash on hand beyond the
Recognized Obligation Payment Schedule cycle.

(B) When a payment is shown to be due during the Recognized
Obligation Payment Schedule period, but an invoice or other billing
document has not yet been received, the successor agency may
utilize reasonable estimates and projections to support payment
amounts for enforceable obligations if the successor agency submits
appropriate supporting documentation of the basis for the estimate
or projection to the department and the auditor-controller.

(C) A Recognized Obligation Payment Schedule may also
include appropriation of moneys from bonds subject to passage
during the Recognized Obligation Payment Schedule cycle when
an enforceable obligation requires the agency to issue the bonds
and use the proceeds to pay for project expenditures.

(n) Cause a postaudit of the financial transactions and records
of the successor agency to be made at least annually by a certified
public accountant.

begin delete SEC. 319. end delete
begin insert SEC. 321. end insert   

Section 39945 of the Health and Safety Code is
amended to read:

39945.  

(a) For purposes of this chapter, “unsafe tire” means
any tire considered unsafe in accordance with standard industry
practices due to tire tread wear, tread irregularity, or damage.
Examples include any tire with an exposed ply or cord, a sidewall
crack, a bulge, a knot, or a ply separation.

(b) For purposes of a regulation adopted pursuant to Division
25.5 (commencing with Section 38500) that requires an automotive
service provider to check and inflate a vehicle’s tires while
performing automotive maintenance or repair service, a tire
pressure gauge used by the provider to inflate a tire pursuant to
that regulation shall be accurate within a range of plus or minus
two pounds per square inch of pressure (2 psi).

(c) An automotive service provider shall not be required to
check and inflate a vehicle’s tire pursuant to subdivision (b) if that
tire is determined to be an unsafe tire.

(d) This chapter shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2018, deletes or extends that date.

begin delete SEC. 320. end delete
begin insert SEC. 322. end insert   

Section 42301.16 of the Health and Safety Code is
amended to read:

42301.16.  

(a)  In addition to complying with the requirements
of this chapter, a permit system established by a district pursuant
to Section 42300 shall ensure that any agricultural source that is
required to obtain a permit pursuant to Title I (42 U.S.C. Sec. 7401
et seq.) or Title V (42 U.S.C. Sec. 7661 et seq.) of the federal Clean
Air Act is required by district regulation to obtain a permit in a
manner that is consistent with the federal requirements.

(b)  Except as provided in subdivision (c), a district shall require
an agricultural source of air pollution to obtain a permit unless it
makes all of the following findings in a public hearing:

(1)  The source is subject to a permit requirement pursuant to
Section 40724.6.

(2)  A permit is not necessary to impose or enforce reductions
of emissions of air pollutants that the district shows cause or
contribute to the violation of a state or federal ambient air quality
standard.

(3)  The requirement for the source or category of sources to
obtain a permit would impose a burden on those sources that is
significantly more burdensome than permits required for other
similar sources of air pollution.

(c)  Prior to requiring a permit for an agricultural source of air
pollution with actual emissions that are less than one-half of any
applicable emissions threshold for a major source in the district
for any air contaminant, but excluding fugitive dust, a district shall,
in a public hearing, make all of the following findings:

(1)  The source is not subject to a permit requirement pursuant
to Section 40724.6.

(2)  A permit is necessary to impose or enforce reductions of
emissions of air pollutants that the district shows cause or
contribute to a violation of a state or federal ambient air quality
standard.

(3)  The requirement for a source or category of sources to obtain
a permit would not impose a burden on those sources that is
significantly more burdensome than permits required for other
similar sources of air pollution.

begin delete SEC. 321. end delete
begin insert SEC. 323. end insert   

Section 44246 of the Health and Safety Code is
repealed.

begin delete SEC. 322. end delete
begin insert SEC. 324. end insert   

Section 44525.5 of the Health and Safety Code is
repealed.

begin delete SEC. 323. end delete
begin insert SEC. 325. end insert   

Section 44525.7 of the Health and Safety Code, as
amended by Section 11 of Chapter 643 of the Statutes of 2009, is
repealed.

begin delete SEC. 324. end delete
begin insert SEC. 326. end insert   

Section 50561 of the Health and Safety Code is
amended to read:

50561.  

(a) The department may approve an extension of an
existing rental housing development loan, the reinstatement of a
qualifying unpaid matured loan, the subordination of a department
loan to new debt, or an investment of tax credit equity as long as
the rental housing development is being operated in a manner
consistent with the regulatory agreement and the development
requires an extension in order to continue to operate in a manner
consistent with this chapter. Each extension shall be for a period
of not less than 10 years and each extension shall not exceed 55
years, or 58 years if needed to match the term of tax credit
restrictions. The interest rate shall be 3 percent simple interest. All
loan payments shall be deferred for the full term of the loan, except
for residual receipts payments. These residual receipts payments
shall be structured to avoid reducing the amount of payments on
local public agency loans resulting solely from changes in the
payment terms on the department’s loan, and not resulting from
fees or other payments to the borrower, and shall otherwise be
consistent with the provisions of the department’s Uniform
Multifamily Regulations or successor regulations. The department
may charge a monitoring fee to cover the aggregate monitoring
costs it incurs in years that the loan is extended and charge a
transaction fee to cover its costs for processing restructuring
transactions. The department may waive or defer some or all fees,
if it determines that a particular development or class of
developments does not have the ability to make these payments.
In determining the fees and payments to be charged, the department
shall seek to share monitoring activities with other regulatory
agencies and to minimize the impact on tenants with the lowest
incomes and on the capacity of the developments to support private
debt or secure tax credit investments.

(b) To the minimum extent necessary to support new debt to
pay for rehabilitation, rents for assisted units in these developments
may be adjusted. This rehabilitation shall be determined by the
department to be demonstrably necessary, based on third-party
assessment and on the department’s own inspection. Assisted units
in developments with a specific, department-approved plan to
undertake the necessary rehabilitation, at a level that equals or
exceeds the minimum per-unit rehabilitation cost standards under
the low-income housing tax credit program, may be adjusted as
follows:

(1) For developments originally financed under the bond-funded
component of the Rental Housing Construction Program pursuant
to Section 50771.1, and the Family Housing Demonstration
Program, rents may be increased up to a maximum of 30 percent
of 60 percent of area median income, for units designated in the
development’s original regulatory agreement as lower income
units, and up to a maximum of 30 percent of 35 percent of area
median income, for units designated in the development’s original
regulatory agreement as very low income units.

(2) For developments originally financed under other programs,
rents for at least 35 percent of the assisted units, or as specified in
the original regulatory agreement governing the development,
whichever is greater, shall be restricted to the midlevel target used
by the Multifamily Housing Program. Rents for the balance of the
assisted units may be increased up to a maximum of 30 percent of
60 percent of area median income. For purposes of this paragraph,
“midlevel target used by the Multifamily Housing Program” shall
mean either of the following:

(A) For counties with an area median income of 110 percent or
less of state median income, it shall mean 30 percent of 30 percent
of state median income, expressed as a percentage of area median
income.

(B) For counties with an area median income that exceeds 110
percent of the state median income, it shall mean 30 percent of 35
percent of state median income, expressed as a percentage of area
median income.

(c) Rent increases for tenants living in assisted units at the time
of restructuring pursuant to this chapter shall be limited as follows:

(1) For existing tenants with incomes not exceeding 35 percent
of area median income, increases shall be limited to 5 percent per
year, until the rents reach the levels set under subdivision (b).

(2) For existing tenants with incomes exceeding 35 percent of
area median income, increases shall be limited to 10 percent per
year, until they reach the levels specified in paragraphs (1) and (2)
of subdivision (b) of Section 50561.

(3) It is the intent of the Legislature that rent increases for
existing tenants authorized by this subdivision shall not be greater
than necessary to ensure the financial feasibility of the project.
The projected maximum rent for tenants in assisted units, as
determined by subdivision (b), shall not exceed 50 percent of the
household’s actual income. This requirement shall be applied using
maximum rent levels and household incomes determined at the
time of restructuring or at the time of the department’s approval
of the restructuring.

(4) If the refinance of a loan results in a rent increase, the project
sponsor shall provide tenants with the following notifications:

(A) Notice six months prior to the scheduled rent increase with
an estimate of the amount of the increase.

(B) Notice 90 days prior to the actual increase with the exact
amount of the new rent.

(d) If existing tenants move, the rent for these units may be
increased immediately up to the level specified in paragraphs (1)
and (2) of subdivision (b). The income limit for new tenants shall
correspond with the rent limit set pursuant to paragraphs (1) and
(2) of subdivision (b).

(e) Once rents achieve the levels set forth in paragraphs (1) and
(2) of subdivision (b), income levels and rent limits shall be
calculated consistent with the calculation methodology used under
the Low Income Housing Tax Credit program and the Multifamily
Housing Program, and rent increases shall be based on increases
in the area median income.

(f) Eligible households displaced as a result of rehabilitation
pursuant to this section shall be accorded first priority in occupying
comparable units in the development from which they were
displaced, subsequent to rehabilitation. Tenants of rental housing
developments repaired with assistance provided under this chapter
who are temporarily or permanently displaced as a result of
rehabilitation or other repair work, shall be entitled to relocation
benefits pursuant to, and subject to, the requirements of Section
7260 of the Government Code. Sponsors of assisted rental housing
developments shall be responsible for providing the benefits and
assistance. The costs of the benefits and the assistance provided
to tenants shall be eligible for funding by a loan provided pursuant
to this section.

(g) The guidelines adopted by the department pursuant to
subdivision (h) of Section 50560 shall be patterned after the
regulations governing the Multifamily Housing Program, including
the Uniform Multifamily Regulations, except that the department
may adopt different standards for the following factors:

(1) Commercial vacancy loss assumptions must reflect project
operating history.

(2) Debt service coverage ratios.

(3) Payment terms and principal amount of senior debt,
considering financial market conditions, including costs and
department risk, as determined by the department.

(4) Developer fee limitations shall be consistent with California
Tax Credit Allocation Committee regulations for inclusion in the
basis for projects receiving 9 percent tax credits, for projects
receiving the special rent increases contemplated by this chapter,
and, consistent with the requirements of other funding sources, for
projects not receiving special rent increases.

(5) Replacement reserve deposit amounts must be based on
projected costs over 20 years, adjusted for inflation, and as shown
in an independent replacement reserve analysis.

(h) It is the intent of the Legislature in enacting this section that
the department shall manage its reserves for the original Rental
Housing Construction Program in a manner that will allow for the
continuation of benefits to current low-income tenants for the
longest period of time possible up to the term of the original
regulatory agreement or the depletion of the annuity funds,
whichever occurs first. Accordingly, rents for those households in
units subsidized by the annuity fund established pursuant to Section
50748 may be increased to 30 percent of household income. A
household affected by the rent increase permitted by this
subdivision shall be given at least 90 days advanced notice of the
increase.

(i) (1) The department shall, within available resources, post
on its Internet Web site information regarding household incomes
and rents for developments approved for restructuring.

(2) The information shall be provided within six months of a
restructuring and, thereafter, no less than every three years.

(3) The information shall include the following or similar
information:

(A) The monthly rent of each household at the time of
restructuring.

(B) The current monthly rent of each household.

(C) The annual income of each household as a percentage of
area median income at the time of restructuring.

(D) The current income of each household as a percentage of
area median income.

begin delete SEC. 325. end delete
begin insert SEC. 327. end insert   

Section 51505 of the Health and Safety Code is
amended to read:

51505.  

(a) In addition to the downpayment assistance program
authorized by Section 51504, and notwithstanding any provision
of Section 51504 to the contrary, the agency shall provide
downpayment assistance from the funds set aside pursuant to
subparagraph (D) of paragraph (7) of subdivision (a) of Section
53533 for the purposes of the portion of the Extra Credit Teacher
Home Purchase Program provided for in subdivision (g) of Section
8869.84 of the Government Code and any other school personnel
home ownership assistance programs as set forth by the California
Debt Limit Allocation Committee, as operated by the agency.
Notwithstanding the foregoing, the agency may, but is not required
to, provide downpayment assistance pursuant to this section to any
local issuer participating in the Extra Credit Teacher Home
Purchase Program and any other school personnel home ownership
assistance programs as set forth by the California Debt Limit
Allocation Committee.

(b) (1) Downpayment assistance for purposes of this section
shall be subject to, and shall meet the requirements of, the Extra
Credit Teacher Home Purchase Program and any other school
personnel home ownership programs as set forth by the California
Debt Limit Allocation Committee, and shall include, but not be
limited to, deferred payment, low interest rate loans.

(2) Except as provided in paragraphs (3) and (5), payment of
principal and interest is deferred until the time that the home is
sold or refinanced.

(3) The agency may, in its discretion, permit the downpayment
assistance loan to be subordinated to refinancing if it determines
that the borrower has demonstrated hardship, subordination is
required to avoid foreclosure, and the new loan meets the agency’s
underwriting requirements. The agency may permit subordination
on those terms and conditions as it determines are reasonable, but
subordination is not permitted if the borrower has sufficient equity
to repay the loan.

(4) This downpayment assistance shall meet the requirements
of paragraph (3) of, and subparagraph (A) of paragraph (4) of,
subdivision (a) of Section 51504.

(5) The amount of the downpayment assistance shall not be due
and payable upon sale of the home if the first mortgage loan is
insured by the Federal Housing Administration (FHA) or if the
first mortgage loan is, or has been, transferred to the FHA, or if
the requirement is otherwise contrary to regulations of the United
States Department of Housing and Urban Development governing
FHA insured first mortgage loans.

(c) Loans made pursuant to this section may include a provision
whereby interest, principal, or both, of the loan is forgiven upon
conditions to be established by the agency, or any other provision
designed to carry out the purposes of the Extra Credit Teacher
Home Purchase Program and any other school personnel home
ownership programs as set forth by the California Debt Limit
Allocation Committee.

(d) Downpayment assistance pursuant to this section shall not
exceed the greater of seven thousand five hundred dollars ($7,500)
or 3 percent of the home sales price. However, the agency may,
with the concurrence of the California Debt Limit Allocation
Committee, establish higher assistance limits as necessary to ensure
sufficient assistance to allow program participation in high cost
areas.

begin delete SEC. 326. end delete
begin insert SEC. 328. end insert   

The heading of Chapter 3 (commencing with Section
101000) of Part 2 of Division 101 of the Health and Safety Code
is repealed.

begin delete SEC. 327. end delete
begin insert SEC. 329. end insert   

The heading of Article 5 (commencing with Section
101150) of Chapter 2 of Part 3 of Division 101 of the Health and
Safety Code, as added by Section 3 of Chapter 415 of the Statutes
of 1995, is repealed.

begin delete SEC. 328. end delete
begin insert SEC. 330. end insert   

The heading of Chapter 4 (commencing with Section
101325) of Part 3 of Division 101 of the Health and Safety Code,
as added by Section 3 of Chapter 415 of the Statutes of 1995, is
repealed.

begin delete SEC. 329. end delete
begin insert SEC. 331. end insert   

Section 101661 of the Health and Safety Code is
amended to read:

101661.  

(a) The authority, in addition to any other powers
granted to the authority pursuant to this chapter, shall have the
following powers:

(1) To have the duties, privileges, immunities, rights, liabilities,
and limitations of a local unit of government within the state.

(2) To have perpetual existence.

(3) To adopt, have, and use a seal, and to alter it at its pleasure.

(4) To sue and be sued in the name of the authority in all actions
and proceedings in all courts and tribunals of competent
jurisdiction.

(5) To purchase, lease, trade, exchange, or otherwise acquire,
maintain, hold, improve, mortgage, lease, sell, and dispose of real
and personal property of any kind necessary or convenient to
perform its functions and fully exercise its powers.

(6) To appoint and employ a chief executive officer and other
officers and employees that may be necessary or appropriate,
including legal counsel, to establish their compensation, provide
for their health, retirement, and other employment benefits, and
to define the power and duties of officers and employees.

(7) (A) To incur indebtedness and to borrow money and issue
bonds evidencing the same, including the authority to issue, from
time to time, notes and revenue bonds in principal amounts that
the authority determines to be necessary to provide sufficient funds
for achieving any of its purposes, including, but not limited to,
assumption or refinancing of debt service for capital projects
eligible for Medi-Cal supplemental payments pursuant to Section
14085.5 of the Welfare and Institutions Code, the payment of
interest on notes and bonds of the authority, the establishment of
reserves to secure these notes and bonds, and all other expenditures
of the authority incident to and necessary or convenient to carry
out its purposes and powers.

(B) Any notes, bonds, or other securities issued, and the income
from them, including any profit from the sale thereof, shall at all
times be free from taxation by the state or any agency, political
subdivision, or instrumentality of the state.

(C) Notwithstanding the provisions of subparagraph (A), for
any indebtedness, notes, bonds, or other securities that require
voter approval pursuant to state law, the prior approval of the board
of supervisors shall be required. Notwithstanding the required prior
approval of the board of supervisors, any indebtedness incurred,
or notes, bonds, or other securities issued pursuant to this
subparagraph shall be the indebtedness, notes, bonds, or securities
of the authority and not of the county, and the credit of the county
shall not be pledged or relied upon in any manner in order to incur
the indebtedness, or issue the notes, bonds, or other securities,
unless the board of supervisors explicitly authorizes the use of the
county’s credit. The authority shall reimburse the county for all
costs associated with the county’s consideration of the
indebtedness, notes, bonds, or securities, and the authority shall
defend, indemnify, and hold harmless the county from any and all
liability, costs, or expenses arising from or related to the
indebtedness, notes, bonds, or securities.

(8) To pursue its own credit rating.

(9) To enter into any contract or agreement consistent with this
chapter or the laws of this state, and to authorize the chief executive
officer to enter into contracts, execute all instruments, and do all
things necessary or convenient in the exercise of the powers granted
in this chapter, and to secure the payment of bonds.

(10) To purchase supplies, equipment, materials, property, and
services.

(11) To establish policies relating to its purposes.

(12) To acquire or contract to acquire, rights-of-way, easements,
privileges, and property, and to construct, equip, maintain, and
operate any and all works or improvements wherever located that
are necessary, convenient, or proper to carry out any of the
provisions, objects, or purposes of this chapter, and to complete,
extend, add to, repair, or otherwise improve any works or
improvements acquired by it.

(13) To contract for and to accept gifts, grants, and loans of
funds, property, or other aid in any form from the federal
government, the state, a state agency, or other source, or
combination thereof, and to comply, subject to this chapter, with
the terms and conditions thereof.

(14) To invest surplus money in its own treasury, manage
investments, and engage third-party investment managers, in
accordance with state law.

(15) To arrange for guarantees or insurance of its bonds, notes,
or other obligations by the federal or state government or by a
private insurer, and to pay the premiums thereof.

(16) To engage in managed care contracting, joint ventures,
affiliations with other health care facilities, other health care
providers and payers, management agreements, or to participate
in alliances, purchasing consortia, health insurance pools,
accountable care organizations, alternative delivery systems, or
other cooperative arrangements, with any public or private entity.

(17) To enter into joint powers agreements pursuant to Chapter
5 (commencing with Section 6500) of Division 7 of Title 1 of the
Government Code.

(18) To establish nonprofit, for profit, or other entities necessary
to carry out the duties of the authority.

(19) To elect to transfer funds to the state and incur certified
public expenditures in support of the Medi-Cal program and other
programs for which federal financial participation is available.

(20) To use a computerized management information system,
including an electronic health records system, in connection with
the administration of its facilities.

(21) To request that the board of supervisors levy a tax on behalf
of the authority. If the board of supervisors approves the proposal
to levy the tax, the board shall call the election to seek voter
approval and place the appropriate measure on the ballot for that
election. The proceeds of these taxes shall be tax proceeds of the
authority and not of the county. The authority shall reimburse the
county for all costs associated with the county’s consideration of
these taxes, and shall defend, indemnify, and hold harmless the
county from any liability, costs, or expenses arising from or related
to the imposition of these taxes.

(22) To contract with the county for the provision of indigent
care services on behalf of the county. The contract shall specify
that county policies consistent with the county’s obligations under
Section 17000 of the Welfare and Institutions Code shall be
applicable. Notwithstanding any other provision of this chapter,
the authority shall not undertake any of the county’s obligations
under Section 17000 of the Welfare and Institutions Code, nor
shall the authority have an entitlement to receive any revenue for
the discharge of the county’s obligations, without a written
agreement with the county.

(23) To engage in other activities that may be in the best interests
of the authority and the persons served by the authority, as
determined by the board of trustees, in order to respond to changes
in the health care industry.

(b) The authority shall conform to the following requirements:

(1) Be a government entity separate and apart for all purposes
from the county and any other public entity, and shall not be
considered to be an agency, division, or department of the county
or any other public entity. The authority shall not be governed by,
or subject to, the policies or operational rules of the county or any
other public entity.

(2) Be subject to state and federal taxation laws that are
applicable to public entities generally, except that the authority
may, to the extent permitted by federal law, apply for an exemption
from social security taxation if there is a mutual agreement with
the exclusive representatives of the affected employees.

(3) Comply with the Meyers-Milias-Brown Act (Chapter 10
(commencing with Section 3500) of Division 4 of Title 1 of the
Government Code), the Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code), and the Ralph M. Brown Act (Chapter 9
(commencing with Section 54950) of Division 2 of Title 5 of the
Government Code).

(4) To the extent the authority is permitted by federal law to
participate in the Public Employees’ Retirement System, assume
the assets and liabilities for Public Employees’ Retirement System
benefits, consistent with the requirements of Section 20508 and
other applicable provisions of Part 3 (commencing with Section
20000) of Division 5 of Title 2 of the Government Code and
assume workers’ compensation liabilities and other employee
benefits and liabilities with respect to employees of the authority,
unless otherwise agreed to by the authority, the county, and the
governing board.

(5) Carry professional and general liability insurance or
programs to the extent sufficient to cover its activities.

(6) Comply with the requirements of Sections 53260 and 53261
of the Government Code.

(7) Meet all local, state, and federal data reporting requirements.

(8) Be subject to the jurisdiction of the Public Employment
Relations Board.

(c) Open sessions of the authority constitute official proceedings
authorized by law within the meaning of Section 47 of the Civil
Code. The privileges set forth in that section with respect to official
proceedings apply to open sessions of the authority.

(d) The authority is a public agency for purposes of eligibility
with respect to grants and other funding and loan guarantee
programs. Contributions to the authority are tax deductible to the
extent permitted by state and federal law. Nonproprietary income
of the authority is exempt from state income taxation.

(e) The authority is not a “person” subject to suit under the
Cartwright Act (Chapter 2 (commencing with Section 16700) of
Part 2 of Division 7 of the Business and Professions Code).

(f) The statutory authority of a board of supervisors to prescribe
rules that authorize a county hospital to integrate its services with
those of other providers into a system of community service that
offers free choice of hospitals to those requiring hospital care, as
set forth in Section 14000.2 of the Welfare and Institutions Code,
apply to the authority and the board of trustees.

(g) Unless otherwise agreed to by the authority and the board
of supervisors, or the authority and a governing board, an obligation
of the authority, statutory, contractual or otherwise, is the obligation
solely of the authority and notthe obligation of the county or any
other entity, and any contract executed by and between the county
and the authority, or any other entity and the authority, shall contain
a provision that liabilities or obligations of the authority with
respect to its activities pursuant to the contract shall be the
liabilities or obligations of the authority and shall not be or become
the liabilities or obligations of the county or the other entity,
respectively.

(h) An obligation of the authority, statutory, contractual or
otherwise, is the obligation solely of the authority and not the
obligation of the state.

(i) In the event of a change of license ownership, the board of
trustees shall comply with the obligations of governing bodies of
general acute care hospitals generally as set forth in Section 70701
of Title 22 of the California Code of Regulations, as currently
written or subsequently amended, as well as the terms and
conditions of the license. The authority is the responsible party
with respect to compliance with these obligations, terms, and
conditions.

(j) (1) Provisions of the Evidence Code, the Government Code,
including the Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code),
the Civil Code, the Business and Professions Code, and other
applicable law pertaining to the confidentiality of peer review
activities of peer review bodies apply to the peer review activities
of the authority. Peer review proceedings constitute an official
proceeding authorized by law within the meaning of Section 47
of the Civil Code and those privileges set forth in that section with
respect to official proceedings apply to peer review proceedings
of the authority. If the authority is required by law or contractual
obligation to submit to the state or federal government peer review
information or information relevant to the credentialing of a
participating provider, that submission does not constitute a waiver
of confidentiality. The laws pertaining to the confidentiality of
peer review activities shall be together construed as extending, to
the extent permitted by law, the maximum degree of protection of
confidentiality.

(2) Notwithstanding any other law, Section 1461 applies to
hearings on reports of hospital medical audit or quality assurance
committees.

(k) (1) A transfer by the county to the authority, or by the
governing board to the authority, of the maintenance, operation,
and management or ownership of the medical center or the other
health care facility, respectively, whether or not the transfer
includes the surrendering by the county or the governing board of
any existing general acute care hospital license and corresponding
application for a change of ownership of the license, does not affect
the eligibility of the county or the governing board to undertake,
and authorizes the authority, subject to applicable requirements,
to do, any of the following:

(A) With the written consent of the county, participate in and
receive allocations pursuant to the California Health Care for
Indigents Program pursuant to Chapter 5 (commencing with
Section 16940) of Part 4.7 of Division 9 of the Welfare and
Institutions Code, or similar programs, as may be identified or
earmarked by the county for indigent health care services of the
type provided by the medical center.

(B) With the written consent of the county, participate in and
receive allocations of local revenue fund amounts provided
pursuant to Chapter 6 (commencing with Section 17600) of Part
5 of Division 9 of the Welfare and Institutions Code as may be
identified or earmarked by the county for indigent health care
services of the type provided by the medical center.

(C) Participate in the financing of, and receive, Medicaid
disproportionate share hospital payments available to a county
hospital or designated public hospital, or any other successor or
modified payment or funding that is intended to assist hospitals
that serve a disproportionate share of low-income patients with
special needs. The allocation of Medicaid disproportionate share
hospital payments shall be made in consultation with the State
Department of Health Care Services and other designated safety
net hospitals.

(D) Participate in the financing of, and receive, Medi-Cal
supplemental reimbursements, including, but not limited to,
payments made pursuant to Sections 14105.96, 14105.965,
14166.4, and 14182.15 of the Welfare and Institutions Code,
payments described in paragraph (4) of subdivision (b) of Section
14301.4 of the Welfare and Institutions Code, and payments made
available to a county provider or designated public hospital, or
governmental entity with which it is affiliated, under any other
successor or modified Medicaid payment system.

(E) Participate in the financing of, and receive, safety net care
pool funding, stabilization funding, delivery system reform
incentive pool payments, and any other funding available to a
county provider or designated public hospital, or governmental
entities with which it is affiliated under the Medicaid demonstration
project authorized pursuant to Article 5.2 (commencing with
Section 14166) and Article 5.4 (commencing with Section 14180)
of Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions
Code, or under any other successor or modified Medicaid
demonstration project or Medicaid payment system. The allocation
of safety net care pool funds shall be made in consultation with
the State Department of Health Care Services and other designated
safety net hospitals.

(F) Participate in the financing, administration, and provision
of services under the Low Income Health Program authorized
pursuant to Part 3.6 (commencing with Section 15909) of Division
9 of the Welfare and Institutions Code, or under any other successor
or modified Medicaid demonstration project or Medicaid payment
system if the authority enters into an agreement with the county
concerning the provision of services by, and payment for these
services to, the county.

(G) Participate in and receive direct grant and payment
allocations pursuant to Article 5.228 (commencing with Section
14169.1) of Chapter 7 of Part 3 of Division 9 of the Welfare and
Institutions Code, or under any other successor or modified direct
grant and payment systems funded by hospital or other provider
fee assessments.

(H) Receive Medi-Cal capital supplements pursuant to Section
14085.5 of the Welfare and Institutions Code. Notwithstanding
any other provision of law, supplemental payments shall be made
to the medical center under Section 14085.5 of the Welfare and
Institutions Code for the debt service costs incurred by the county,
and, if applicable, by the authority to the extent that debt service
responsibility is refinanced, transferred to, or otherwise assumed
by, directly or indirectly, the authority.

(I) Receive any other funds that would otherwise be available
to a county provider or designated public hospital, or governmental
entity with which it is affiliated.

(2) A transfer described in paragraph (1) shall not otherwise
disqualify the county or the governing board, or in the case of a
change in license ownership, the authority, from participating in
any of the following:

(A) Local, state, and federal funding sources either specific to
county or district hospitals, county or district ambulatory care
clinics, designated public hospitals, or government entities with
which they are affiliated, for which there are special provisions
specific to those hospitals, ambulatory care clinics, or government
entities.

(B) Funding programs in which the county or the governing
board, by themselves or on behalf of the medical center or the
other health care facility, respectively, had participated prior to
the creation of the authority, or would otherwise be qualified to
participate in had the authority not been created, and the
maintenance, operation, and management or ownership of the
medical center and the other health care facility not been transferred
by the county and the governing board to the authority pursuant
to this chapter.

(l) The authority, the county, and the governing board, or any
combination thereof, may engage in marketing, advertising, and
promotion of the medical and health care services made available
to the community by the authority.

(m) The board of trustees has authority over procurement and
contracts for the authority. The board of trustees shall adopt written
rules, regulations, and procedures with regard to these functions.
Contracts by and between the authority and any public agency,
and contracts by and between the authority and providers of health
care, goods, or services, may be let on a nonbid basis and shall be
exempt from Chapter 2 (commencing with Section 10290) of Part
2 of Division 2 of the Public Contract Code. Notwithstanding any
other provision of this section, the authority shall not subcontract
work performed by classifications represented by employee
organizations without mutual agreement between the authority
and the exclusive representatives, except that a subcontract entered
into prior to the formation of the authority may remain in effect
until its termination or completion and may be modified or renewed
to a later termination or completion date upon agreement between
the authority and the exclusive representatives of the affected
classifications.

(n) The authority shall be responsible for human resource
functions, including, but not limited to, position classification,
compensation, recruitment, selection, hiring, discipline,
termination, grievance, equal opportunity, performance
management, probationary periods, training, promotion, and
maintenance of records. The board of trustees shall adopt written
rules, regulations, and procedures with regard to these functions.
Until the time that the board of trustees adopts its own rules,
regulations, or procedures with regard to these functions, the
existing rules, regulations, and procedures set forth in any
memorandum of understanding described in paragraph (3) of
subdivision (d) of Section 101658 apply. If the memoranda do not
provide for the exercise of these functions, the rules, regulations,
and procedures of the county apply.

(o) The authority may contract with the county or the governing
board for services and personnel upon mutually agreeable terms.

(p) Notwithstanding Article 4.7 (commencing with Section
1125) of Chapter 1 of Division 4 of Title 1 of the Government
Code, related to incompatible activities, a member of the
authority’s administrative staff shall not be considered to be
engaged in activities inconsistent and incompatible with his or her
duties as a result of prior employment or affiliation with the county
or the governing board.

(q) The board of trustees and the officers and employees of the
authority are public employees for purposes of Division 3.6
(commencing with Section 810) of Title 1 of the Government
Code, relating to claims and actions against public entities and
public employees, and shall be protected by the immunities
applicable to public entities and public employees governed by
Part 2 (commencing with Section 814) of Division 3.6 of Title 1
of the Government Code, except as provided by other statutes or
regulations that apply expressly to the authority.

(r) Except for Part 3 (commencing with Section 20000) of
Division 5 of Title 2 of the Government Code, this chapter shall
prevail over any inconsistent statutes governing employees of the
authority, including, but not limited to, the Meyers-Milias-Brown
Act (Chapter 10 (commencing with Section 3500) of Division 1
of Title 1 of the Government Code).

begin delete SEC. 330. end delete
begin insert SEC. 332. end insert   

Section 101850 of the Health and Safety Code is
amended to read:

101850.  

The Legislature finds and declares the following:

(a) (1) Due to the challenges facing the Alameda Health System
arising from changes in the public and private health industries,
the Alameda County Board of Supervisors has determined that a
transfer of governance of the Alameda Health System to an
independent governing body, a hospital authority, is needed to
improve the efficiency, effectiveness, and economy of the
community health services provided at the medical center. The
board of supervisors has further determined that the creation of an
independent hospital authority strictly and exclusively dedicated
to the management, administration, and control of the medical
center, in a manner consistent with the county’s obligations under
Section 17000 of the Welfare and Institutions Code, is the best
way to fulfill its commitment to the medically indigent, special
needs, and general populations of Alameda County. To accomplish
this, it is necessary that the board of supervisors be given authority
to create a hospital authority. Because there is no general law under
which this authority could be formed, the adoption of a special act
and the formation of a special authority is required.

(2) The following definitions apply for purposes of this section:

(A) “The county” means the County of Alameda.

(B) “Governing board” means the governing body of the hospital
authority.

(C) “Hospital authority” means the separate public agency
established by the Board of Supervisors of Alameda County to
manage, administer, and control the Alameda Health System.

(D) “Medical center” means the Alameda Health System, which
was formerly known as the Alameda County Medical Center.

(b) The board of supervisors of the county may, by ordinance,
establish a hospital authority separate and apart from the county
for the purpose of effecting a transfer of the management,
administration, and control of the medical center in accordance
with Section 14000.2 of the Welfare and Institutions Code. A
hospital authority established pursuant to this chapter shall be
strictly and exclusively dedicated to the management,
administration, and control of the medical center within parameters
set forth in this chapter, and in the ordinance, bylaws, and contracts
adopted by the board of supervisors that shall not be in conflict
with this chapter, Section 1442.5 of this code, or Section 17000
of the Welfare and Institutions Code.

(c) A hospital authority established pursuant to this chapter shall
be governed by a board that is appointed, both initially and
continually, by the Board of Supervisors of the County of Alameda.
This hospital authority governing board shall reflect both the
expertise necessary to maximize the quality and scope of care at
the medical center in a fiscally responsible manner and the diverse
interest that the medical center serves. The enabling ordinance
shall specify the membership of the hospital authority governing
board, the qualifications for individual members, the manner of
appointment, selection, or removal of governing board members,
their terms of office, and all other matters that the board of
supervisors deems necessary or convenient for the conduct of the
hospital authority’s activities.

(d) The mission of the hospital authority shall be the
management, administration, and other control, as determined by
the board of supervisors, of the group of public hospitals, clinics,
and programs that comprise the medical center, in a manner that
ensures appropriate, quality, and cost-effective medical care as
required of counties by Section 17000 of the Welfare and
Institutions Code, and, to the extent feasible, other populations,
including special populations in the County of Alameda.

(e) The board of supervisors shall adopt bylaws for the medical
center that set forth those matters related to the operation of the
medical center by the hospital authority that the board of
supervisors deems necessary and appropriate. The bylaws shall
become operative upon approval by a majority vote of the board
of supervisors. Any changes or amendments to the bylaws shall
be by majority vote of the board of supervisors.

(f) The hospital authority created and appointed pursuant to this
section is a duly constituted governing body within the meaning
of Section 1250 of this code and Section 70035 of Title 22 of the
California Code of Regulations as currently written or subsequently
amended.

(g) Unless otherwise provided by the board of supervisors by
way of resolution, the hospital authority is empowered, or the
board of supervisors is empowered on behalf of the hospital
authority, to apply as a public agency for one or more licenses for
the provision of health care pursuant to statutes and regulations
governing licensing as currently written or subsequently amended.

(h) In the event of a change of license ownership, the governing
body of the hospital authority shall comply with the obligations
of governing bodies of general acute care hospitals generally as
set forth in Section 70701 of Title 22 of the California Code of
Regulations, as currently written or subsequently amended, as well
as the terms and conditions of the license. The hospital authority
is the responsible party with respect to compliance with these
obligations, terms, and conditions.

(i) (1) A transfer by the county to the hospital authority of the
administration, management, and control of the medical center,
whether or not the transfer includes the surrendering by the county
of the existing general acute care hospital license and corresponding
application for a change of ownership of the license, does not affect
the eligibility of the county, or in the case of a change of license
ownership, the hospital authority, to do any of the following:

(A) Participate in, and receive allocations pursuant to, the
California Healthcare for the Indigents Program (CHIP).

(B) Receive supplemental reimbursements from the Emergency
Services and Supplemental Payments Fund created pursuant to
Section 14085.6 of the Welfare and Institutions Code.

(C) Receive appropriations from the Medi-Cal Inpatient Payment
Adjustment Fund without relieving the county of its obligation to
make intergovernmental transfer payments related to the Medi-Cal
Inpatient Payment Adjustment Fund pursuant to Section 14163 of
the Welfare and Institutions Code.

(D) Receive Medi-Cal capital supplements pursuant to Section
14085.5 of the Welfare and Institutions Code.

(E) Receive any other funds that would otherwise be available
to a county hospital.

(2) A transfer described in paragraph (1) does not otherwise
disqualify the county, or in the case of a change in license
ownership, the hospital authority, from participating in any of the
following:

(A) Other funding sources either specific to county hospitals or
county ambulatory care clinics or for which there are special
provisions specific to county hospitals or to county ambulatory
care clinics.

(B) Funding programs in which the county, on behalf of the
medical center and the Alameda County Health Care Services
Agency, had participated prior to the creation of the hospital
authority, or would otherwise be qualified to participate in had the
hospital authority not been created, and administration,
management, and control not been transferred by the county to the
hospital authority, pursuant to this chapter.

(j) A hospital authority created pursuant to this chapter shall be
a legal entity separate and apart from the county and shall file the
statement required by Section 53051 of the Government Code.
The hospital authority shall be a government entity separate and
apart from the county, and shall not be considered to be an agency,
division, or department of the county. The hospital authority shall
not be governed by, nor be subject to, the charter of the county
and shall not be subject to policies or operational rules of the
county, including, but not limited to, those relating to personnel
and procurement.

(k) (1) A contract executed by and between the county and the
hospital authority shall provide that liabilities or obligations of the
hospital authority with respect to its activities pursuant to the
contract shall be the liabilities or obligations of the hospital
authority, and shall not become the liabilities or obligations of the
county.

(2) Liabilities or obligations of the hospital authority with
respect to the liquidation or disposition of the hospital authority’s
assets upon termination of the hospital authority shall not become
the liabilities or obligations of the county.

(3) An obligation of the hospital authority, statutory, contractual,
or otherwise, shall be the obligation solely of the hospital authority
and shall not be the obligation of the county or the state.

(l) (1) Notwithstanding any other provision of this section, a
transfer of the administration, management, or assets of the medical
center, whether or not accompanied by a change in licensing, does
not relieve the county of the ultimate responsibility for indigent
care pursuant to Section 17000 of the Welfare and Institutions
Code or any obligation pursuant to Section 1442.5 of this code.

(2) A contract executed by and between the county and the
hospital authority shall provide for the indemnification of the
county by the hospital authority for liabilities as specifically set
forth in the contract, except that the contract shall include a
provision that the county shall remain liable for its own negligent
acts.

(3) Indemnification by the hospital authority shall not be
construed as divesting the county from its ultimate responsibility
for compliance with Section 17000 of the Welfare and Institutions
Code.

(m) Notwithstanding the provisions of this section relating to
the obligations and liabilities of the hospital authority, a transfer
of control or ownership of the medical center shall confer onto the
hospital authority all the rights and duties set forth in state law
with respect to hospitals owned or operated by a county.

(n) (1) A transfer of the maintenance, operation, and
management or ownership of the medical center to the hospital
authority shall comply with the provisions of Section 14000.2 of
the Welfare and Institutions Code.

(2) A transfer of maintenance, operation, and management or
ownership to the hospital authority may be made with or without
the payment of a purchase price by the hospital authority and
otherwise upon the terms and conditions that the parties may
mutually agree, which terms and conditions shall include those
found necessary by the board of supervisors to ensure that the
transfer will constitute an ongoing material benefit to the county
and its residents.

(3) A transfer of the maintenance, operation, and management
to the hospital authority shall not be construed as empowering the
hospital authority to transfer any ownership interest of the county
in the medical center except as otherwise approved by the board
of supervisors.

(o) The board of supervisors shall retain control over the use of
the medical center physical plant and facilities except as otherwise
specifically provided for in lawful agreements entered into by the
board of supervisors. Any lease agreement or other agreement
between the county and the hospital authority shall provide that
county premises shall not be sublet without the approval of the
board of supervisors.

(p) The statutory authority of a board of supervisors to prescribe
rules that authorize a county hospital to integrate its services with
those of other hospitals into a system of community service that
offers free choice of hospitals to those requiring hospital care, as
set forth in Section 14000.2 of the Welfare and Institutions Code,
shall apply to the hospital authority upon a transfer of maintenance,
operation, and management or ownership of the medical center by
the county to the hospital authority.

(q) The hospital authority may acquire and possess real or
personal property and may dispose of real or personal property
other than that owned by the county, as may be necessary for the
performance of its functions. The hospital authority may sue or be
sued, to employ personnel, and to contract for services required
to meet its obligations. Before January 1, 2024, the hospital
authority shall not enter into a contract with any other person or
entity, including, but not limited to, a subsidiary or other entity
established by the authority, to replace services being provided by
physicians and surgeons who are employed by the hospital
authority and in a recognized collective bargaining unit as of March
31, 2013, with services provided by that other person or entity
without clear and convincing evidence that the needed medical
care can only be delivered cost effectively by that other person or
entity. Prior to entering into a contract for any of those services,
the authority shall negotiate with the representative of the
recognized collective bargaining unit of its physician and surgeon
employees over the decision to privatize and, if unable to resolve
any dispute through negotiations, shall submit the matter to final
binding arbitration.

(r) Any agreement between the county and the hospital authority
shall provide that all existing services provided by the medical
center shall continue to be provided to the county through the
medical center subject to the policy of the county and consistent
with the county’s obligations under Section 17000 of the Welfare
and Institutions Code.

(s) A hospital authority to which the maintenance, operation,
and management or ownership of the medical center is transferred
shall be a “district” within the meaning set forth in the County
Employees Retirement Law of 1937 (Chapter 3 (commencing with
Section 31450) of Part 3 of Division 4 of Title 3 of the Government
Code). Employees of a hospital authority are eligible to participate
in the County Employees Retirement System to the extent
permitted by law, except as described in Section 101851.

(t) Members of the governing board of the hospital authority
shall not be vicariously liable for injuries caused by the act or
omission of the hospital authority to the extent that protection
applies to members of governing boards of local public entities
generally under Section 820.9 of the Government Code.

(u) The hospital authority shall be a public agency subject to
the Meyers-Milias-Brown Act (Chapter 10 (commencing with
Section 3500) of Division 4 of Title 1 of the Government Code).

(v) Any transfer of functions from county employee
classifications to a hospital authority established pursuant to this
section shall result in the recognition by the hospital authority of
the employee organization that represented the classifications
performing those functions at the time of the transfer.

(w) (1) In exercising its powers to employ personnel, as set
forth in subdivision (p), the hospital authority shall implement,
and the board of supervisors shall adopt, a personnel transition
plan. The personnel transition plan shall require all of the
following:

(A) Ongoing communications to employees and recognized
employee organizations regarding the impact of the transition on
existing medical center employees and employee classifications.

(B) Meeting and conferring on all of the following issues:

(i) The timeframe for which the transfer of personnel shall occur.
The timeframe shall be subject to modification by the board of
supervisors as appropriate, but in no event shall it exceed one year
from the effective date of transfer of governance from the board
of supervisors to the hospital authority.

(ii) A specified period of time during which employees of the
county impacted by the transfer of governance may elect to be
appointed to vacant positions with the Alameda County Health
Care Services Agency for which they have tenure.

(iii) A specified period of time during which employees of the
county impacted by the transfer of governance may elect to be
considered for reinstatement into positions with the county for
which they are qualified and eligible.

(iv) Compensation for vacation leave and compensatory leave
accrued while employed with the county in a manner that grants
affected employees the option of either transferring balances or
receiving compensation to the degree permitted employees laid
off from service with the county.

(v) A transfer of sick leave accrued while employed with the
county to hospital authority employment.

(vi) The recognition by the hospital authority of service with
the county in determining the rate at which vacation accrues.

(vii) The possible preservation of seniority, pensions, health
benefits, and other applicable accrued benefits of employees of
the county impacted by the transfer of governance.

(2) This subdivision shall not be construed as prohibiting the
hospital authority from determining the number of employees, the
number of full-time equivalent positions, the job descriptions, and
the nature and extent of classified employment positions.

(3) Employees of the hospital authority are public employees
for purposes of Division 3.6 (commencing with Section 810) of
Title 1 of the Government Code relating to claims and actions
against public entities and public employees.

(x) Any hospital authority created pursuant to this section shall
be bound by the terms of the memorandum of understanding
executed by and between the county and health care and
management employee organizations that is in effect as of the date
this legislation becomes operative in the county. Upon the
expiration of the memorandum of understanding, the hospital
authority has sole authority to negotiate subsequent memorandums
of understanding with appropriate employee organizations.
Subsequent memorandums of understanding shall be approved by
the hospital authority.

(y) The hospital authority created pursuant to this section may
borrow from the county and the county may lend the hospital
authority funds or issue revenue anticipation notes to obtain those
funds necessary to operate the medical center and otherwise provide
medical services.

(z) The hospital authority is subject to state and federal taxation
laws that are applicable to counties generally.

(aa) The hospital authority, the county, or both, may engage in
marketing, advertising, and promotion of the medical and health
care services made available to the community at the medical
center.

(ab) The hospital authority is not a “person” subject to suit under
the Cartwright Act (Chapter 2 (commencing with Section 16700)
of Part 2 of Division 7 of the Business and Professions Code).

(ac) Notwithstanding Article 4.7 (commencing with Section
1125) of Chapter 1 of Division 4 of Title 1 of the Government
Code related to incompatible activities, a member of the hospital
authority administrative staff shall not be considered to be engaged
in activities inconsistent and incompatible with his or her duties
as a result of employment or affiliation with the county.

(ad) (1) The hospital authority may use a computerized
management information system in connection with the
administration of the medical center.

(2) Information maintained in the management information
system or in other filing and records maintenance systems that is
confidential and protected by law shall not be disclosed except as
provided by law.

(3) The records of the hospital authority, whether paper records,
records maintained in the management information system, or
records in any other form, that relate to trade secrets or to payment
rates or the determination thereof, or which relate to contract
negotiations with providers of health care, shall not be subject to
disclosure pursuant to the California Public Records Act (Chapter
5 (commencing with Section 6250) of Division 7 of Title 1 of the
Government Code). The transmission of the records, or the
information contained therein in an alternative form, to the board
of supervisors does not constitute a waiver of exemption from
disclosure, and the records and information once transmitted shall
be subject to this same exemption. The information, if compelled
pursuant to an order of a court of competent jurisdiction or
administrative body in a manner permitted by law, shall be limited
to in-camera review, which, at the discretion of the court, may
include the parties to the proceeding, and shall not be made a part
of the court file unless sealed.

(ae) (1) Notwithstanding any other law, the governing board
may order that a meeting held solely for the purpose of discussion
or taking action on hospital authority trade secrets, as defined in
subdivision (d) of Section 3426.1 of the Civil Code, shall be held
in closed session. The requirements of making a public report of
actions taken in closed session and the vote or abstention of every
member present may be limited to a brief general description
devoid of the information constituting the trade secret.

(2) The governing board may delete the portion or portions
containing trade secrets from any documents that were finally
approved in the closed session that are provided to persons who
have made the timely or standing request.

(3) This section shall not be construed as preventing the
governing board from meeting in closed session as otherwise
provided by law.

(af) Open sessions of the hospital authority constitute official
proceedings authorized by law within the meaning of Section 47
of the Civil Code. The privileges set forth in that section with
respect to official proceedings apply to open sessions of the hospital
authority.

(ag) The hospital authority is a public agency for purposes of
eligibility with respect to grants and other funding and loan
guarantee programs. Contributions to the hospital authority are
tax deductible to the extent permitted by state and federal law.
Nonproprietary income of the hospital authority is exempt from
state income taxation.

(ah) Contracts by and between the hospital authority and the
state and contracts by and between the hospital authority and
providers of health care, goods, or services may be let on a nonbid
basis and shall be exempt from Chapter 2 (commencing with
Section 10290) of Part 2 of Division 2 of the Public Contract Code.

(ai) (1) Provisions of the Evidence Code, the Government Code,
including the California Public Records Act (Chapter 5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code), the Civil Code, the Business and Professions
Code, and other applicable law pertaining to the confidentiality of
peer review activities of peer review bodies apply to the peer
review activities of the hospital authority. Peer review proceedings
constitute an official proceeding authorized by law within the
meaning of Section 47 of the Civil Code and those privileges set
forth in that section with respect to official proceedings shall apply
to peer review proceedings of the hospital authority. If the hospital
authority is required by law or contractual obligation to submit to
the state or federal government peer review information or
information relevant to the credentialing of a participating provider,
that submission does not constitute a waiver of confidentiality.
The laws pertaining to the confidentiality of peer review activities
shall be together construed as extending, to the extent permitted
by law, the maximum degree of protection of confidentiality.

(2) Notwithstanding any other law, Section 1461 applies to
hearings on the reports of hospital medical audit or quality
assurance committees.

(aj) The hospital authority shall carry general liability insurance
to the extent sufficient to cover its activities.

(ak) In the event the board of supervisors determines that the
hospital authority should no longer function for the purposes as
set forth in this chapter, the board of supervisors may, by ordinance,
terminate the activities of the hospital authority and expire the
hospital authority as an entity.

(al) A hospital authority that is created pursuant to this section,
but does not obtain the administration, management, and control
of the medical center or has those duties and responsibilities
revoked by the board of supervisors, shall not be empowered with
the powers enumerated in this section.

(am) (1) The county shall establish baseline data reporting
requirements for the medical center consistent with the Medically
Indigent Health Care Reporting System (MICRS) program
established pursuant to Section 16910 of the Welfare and
Institutions Code and shall collect that data for at least one year
prior to the final transfer of the medical center to the hospital
authority established pursuant to this chapter. The baseline data
shall include, but not be limited to, all of the following:

(A) Inpatient days by facility by quarter.

(B) Outpatient visits by facility by quarter.

(C) Emergency room visits by facility by quarter.

(D) Number of unduplicated users receiving services within the
medical center.

(2) Upon transfer of the medical center, the county shall
establish baseline data reporting requirements for each of the
medical center inpatient facilities consistent with data reporting
requirements of the Office of Statewide Health Planning and
Development, including, but not limited to, monthly average daily
census by facility for all of the following:

(A) Acute care, excluding newborns.

(B) Newborns.

(C) Skilled nursing facility, in a distinct part.

(3) From the date of transfer of the medical center to the hospital
authority, the hospital authority shall provide the county with
quarterly reports specified in paragraphs (1) and (2) and any other
data required by the county. The county, in consultation with health
care consumer groups, shall develop other data requirements that
shall include, at a minimum, reasonable measurements of the
changes in medical care for the indigent population of Alameda
County that result from the transfer of the administration,
management, and control of the medical center from the county
to the hospital authority.

(an) A hospital authority established pursuant to this section
shall comply with the requirements of Sections 53260 and 53261
of the Government Code.

(ao) This section shall become operative January 1, 2015.

begin delete SEC. 331. end delete
begin insert SEC. 333. end insert   

Section 101853 of the Health and Safety Code is
amended to read:

101853.  

(a) Pursuant to this chapter, the board of supervisors
may establish by ordinance the Kern County Hospital Authority,
which shall be a public agency that is a local unit of government
separate and apart from the county and any other public entity for
all purposes. The authority established pursuant to this chapter
shall file the statement required by Section 53051 of the
Government Code, and is a public entity for purposes of Division
3.6 (commencing with Section 810) of Title 1 of the Government
Code.

(b) The purpose of the authority is to do all of the following:

(1) Provide management, administration, and other controls
consistent with this chapter as needed to operate the medical center
and maintain its status as a designated public hospital, as defined
in subdivision (d) of Section 14166.1 of the Welfare and
Institutions Code, and for the operation of additional programs,
clinics and other facilities, care organizations, health care service
and physician practice plans, and delivery systems that may be
affiliated or consolidated with the medical center, to ensure the
viability of the health care safety net in the county in a manner
consistent with the county’s requirements under Section 17000 of
the Welfare and Institutions Code.

(2) Provide management, administration, and other controls
consistent with this chapter to negotiate and enter into contracts
to provide or arrange, or provide directly, on a fee-for-service,
capitated, or other basis, health care services to individuals
including, but not limited to, those covered under Subchapters
XVIII (commencing with Section 1395), XIX (commencing with
Section 1396), and XXI (commencing with Section 1397aa) of
Chapter 7 of Title 42 of the United States Code, those entitled to
coverage under private group coverage, private individual coverage,
including, without limitation, coverage through Covered California,
other publicly supported programs, those employed by public
agencies or private businesses, and uninsured or indigent
individuals.

(c) Subject to the requirements of this chapter, the authority has
and is charged with authority for the management, administration,
and control of the medical center and other health-related resources.
The State Department of Health Care Services shall take all
necessary steps to ensure all of the following:

(1) The authority is permitted to operate the medical center.

(2) The medical center continues its status as a designated public
hospital to at least the same extent as it would be designated in the
absence of its transfer to the authority pursuant to this chapter.

(3) The authority may participate as a contributing public agency
for all of the purposes specified in Section 433.51 of Title 42 of
the Code of Federal Regulations, to the extent permitted by federal
law.

(d) The board of supervisors, in the enabling ordinance, shall
establish the terms and conditions of the transfer to the authority
from the county, including, but not limited to, all of the following:

(1) A transfer of real and personal property, assets, and
liabilities, including, but not limited to, liabilities of the medical
center determined and assigned by the county for county funds
previously advanced, but not repaid or otherwise recovered, to
fund the operations of the medical center.

(2) Transfer of employees, including any necessary personnel
transition plan, as specified in Section 101853.1, allocation of
credit for funded pension assets and responsibility for any unfunded
pension liabilities under the Kern County Employees’ Retirement
Association or other retirement plans, and funding of the accrued
benefits of employees of the authority in the event of withdrawal
from the plan or dissolution of the authority. An allocation of credit
for funded pension assets and responsibility for unfunded pension
liabilities with respect to the Kern County Employees’ Retirement
Association shall be approved by its governing board of retirement
after consideration of legal and actuarial analysis, and an allocation
shall not be made that would jeopardize the qualified status of the
Kern County Employees’ Retirement Association under the federal
Internal Revenue Code.

(3) Maintenance, operation, and management or ownership of
the medical center.

(4) Transfer of licenses.

(5) Any other matters as the board of supervisors deems
necessary, appropriate, or convenient for the conduct of the
authority’s activities.

(e) (1) Notwithstanding any other law, a transfer of
maintenance, operation, and management or ownership or lease
of the medical center to the authority may be made, with or without
the payment of a purchase price by the authority, and otherwise
upon the terms and conditions as found necessary by the board of
supervisors and specified in the enabling ordinance to ensure that
the transfer will constitute an ongoing material benefit to the county
and its residents.

(2) A transfer of the maintenance, operation, and management,
or ownership or lease of the medical center to the authority shall
not be construed as empowering the authority to transfer any
ownership interest of the county in any portion of the medical
center, except as otherwise approved by the board of supervisors.

(3) The authority shall not transfer the maintenance, operation,
and management or ownership or lease of the medical center to
any other person or entity without the prior written approval of
the board of supervisors. This paragraph does not prevent the
county, by ordinance, from allowing the disposal of obsolete or
surplus equipment, supplies, or furnishings of the medical center
by the authority.

(4) With respect to the maintenance, operation, and management
or ownership or lease of the medical center, the authority shall
conform to both of the following requirements:

(A) Comply with any applicable requirements of Section
14000.2 of the Welfare and Institutions Code.

(B) Comply with any applicable requirements of Section 1442.5.

(5) The board of supervisors may retain control of the medical
center physical plant and facilities, as specifically provided for in
the enabling ordinance or other lawful agreements entered into by
the board of supervisors. Any lease agreement between the county
and the authority shall provide that county premises shall not be
sublet without the approval of the board of supervisors.

(6) Notwithstanding any other provision of this chapter, and
whether or not accompanied by a change in licensing, the
authority’s responsibility for the maintenance, operation, and
management of the medical center, or any ownership or leasehold
interest of the authority in the medical center, does not relieve the
county of the ultimate responsibility for indigent care pursuant to
Section 17000 of the Welfare and Institutions Code.

(7) For purposes of Article 12 (commencing with Section
17612.1) of Chapter 6 of Part 5 of Division 9 of the Welfare and
Institutions Code, and the definition set forth in subdivision (f) of
Section 17612.2 of the Welfare and Institutions Code, the medical
center, excluding components that provide predominately public
health services, and the county are affiliated governmental entities.

(f) The board of supervisors may contract with the authority for
the provision of indigent care services on behalf of the county.
The contract shall specify that county policies, as may be modified
from time to time and consistent with the county’s obligations
under Section 17000 of the Welfare and Institutions Code, shall
be applicable. Notwithstanding any other provision of this chapter,
the authority shall not undertake any of the county’s obligations
under Section 17000 of the Welfare and Institutions Code, nor
shall the authority have an entitlement to receive any revenue for
the discharge of the county’s obligations, without a written
agreement with the county. A contract executed by and between
the county and the authority shall provide for the indemnification
of the county by the authority for liabilities as specifically set forth
in the contract, except that the contract shall include a provision
that the county remains liable for its own negligent acts.
Indemnification by the authority does not divest the county from
its ultimate responsibility for compliance with Section 17000 of
the Welfare and Institutions Code.

(g) Unless otherwise agreed to by the authority and the board
of supervisors, an obligation of the authority, statutory, contractual,
or otherwise, is the obligation solely of the authority and is not the
obligation of the county or any other entity, and a contract executed
by and between the county and the authority, or any other entity
and the authority, shall contain a provision that liabilities or
obligations of the authority with respect to its activities pursuant
to the contract are the liabilities or obligations of the authority and
are not and will not become the liabilities or obligations of the
county or the other entity, respectively. An obligation of the
authority, statutory, contractual, or otherwise, is not the obligation
of the state.

(h) The authority is not a “person” subject to suit under the
Cartwright Act (Chapter 2 (commencing with Section 16700) of
Part 2 of Division 7 of the Business and Professions Code).

(i)  The authority is not subject to the jurisdiction of a local
agency formation commission pursuant to the
Cortese-Knox-Hertzberg Local Government Reorganization Act
of 2000 (Division 3 (commencing with Section 56000) of Title 5
of the Government Code), or any successor statute.

(j) The authority is a “district” within the meaning set forth in
the County Employees Retirement Law of 1937 (Chapter 3
(commencing with Section 31450) of Part 3 of Division 4 of Title
3 of the Government Code). Employees of the authority are eligible
to become members or maintain membership, as applicable, in the
Kern County Employees’ Retirement Association, to the extent
described in subdivision (g) of Section 101853.1.

(k) A determination with respect to the manner in which the
authority qualifies as a governmental plan sponsor under Section
414(d) of the Internal Revenue Code shall be limited to relevant
employee benefits purposes of that code only, and shall not change
or otherwise modify the authority’s status as a public agency that
is a unit of local government for other purposes specified in this
chapter.

begin delete SEC. 332. end delete
begin insert SEC. 334. end insert   

Section 101853.1 of the Health and Safety Code is
amended to read:

101853.1.  

(a) In exercising its powers to employ personnel,
the authority shall implement, and the board of supervisors shall
adopt, a personnel transition plan. The personnel transition plan
shall require all of the following:

(1) Ongoing communication to employees and recognized
employee organizations regarding the impact of the transition on
existing medical center, county, and other health care facility
employees and employee classifications.

(2) Meeting and conferring with representatives of affected
bargaining unit employees on both of the following issues:

(A) A timeframe for which the transfer of personnel shall occur.

(B) Specified periods of time during which county or medical
center employees affected by the establishment of the authority
may elect to be considered for appointment and exercise
reinstatement rights, if applicable, to funded, equivalent, vacant
county positions for which they are qualified and eligible. An
employee who first elects to remain with the county may
subsequently seek reinstatement with the authority within 30 days
of the election to remain with the county and shall be subject to
the requirements of this article.

(3) Acknowledgment that the authority, to the extent permitted
by federal and state law, shall be bound by the terms of the
memoranda of understanding executed between the county and its
exclusive employee representatives that are in effect on the date
the county adopts the enabling ordinance pursuant to this chapter.
Subsequent memoranda of understanding with exclusive employee
representatives shall be subject to approval only by the board of
governors.

(4) Communication to the Board of Retirement of the Kern
County Employees’ Retirement Association or other retirement
plan of any personnel transition plan, memoranda of understanding,
or other arrangements that are related to the participation of the
authority’s employees or the addition of new employees in the
retirement plan.

(b) Implementation of this chapter is not a cause for the
modification of the medical center or county employment benefits.
Upon the execution of the enabling ordinance, employees of the
medical center or county on the date of execution, who become
authority employees, shall retain their existing or equivalent
classifications and job descriptions upon transfer to the authority,
comparable pension benefits (if permissible pursuant to relevant
plan terms), and their existing salaries and other benefits that
include, but are not limited to, accrued and unused vacation, sick
leave, personal leave, health care, retiree health benefits, and
deferred compensation plans. The transfer of an employee from
the medical center or county does not constitute a termination of
employment for purposes of Section 227.3 of the Labor Code, or
employee benefit plans and arrangements maintained by the
medical center or county, except as otherwise provided in the
enabling ordinance or personnel transition plan, and it shall not be
counted as a break in uninterrupted employment for purposes of
Section 31641 of the Government Code with respect to the Kern
County Employees’ Retirement Association, or state service for
purposes of the Public Employees’ Retirement System (Part 3
(commencing with Section 20000) of Division 5 of Title 2 of the
Government Code).

(c) Subject to applicable state law, the authority shall recognize
the exclusive employee representatives of those authority
employees who are transferred from the county or medical center
to the authority pursuant to this chapter.

(d) In order to stabilize labor and employment relations and
provide continuity of care and services to the people of the county,
and notwithstanding any other law, the authority shall do all of the
following for a period of 24 months after the effective date of the
transfer of the medical center to the authority:

(1) Continue to recognize each exclusive employee
representative of each bargaining unit.

(2) Continue to provide the same level of employee benefits to
authority employees, whether the obligation to provide those
benefits arise out of a memorandum of understanding, or other
agreements or law.

(3) Extend and continue to be bound by any existing memoranda
of understanding covering the terms and conditions of employment
for employees of the authority, including the level of wages and
benefits, and any county rules, ordinances, or policies specifically
identified and incorporated by reference in a memoranda of
understanding for 24 months or through the term of the
memorandum of understanding, whichever shall be the longer,
unless modified by mutual agreement with each of the exclusive
employee representatives. The authority shall continue to provide
those pension benefits specified in any memoranda of agreement
as long as doing so does not conflict with any Kern County
Employee Retirement Association plan provisions, or federal or
state law including the County Employees Retirement Law of 1937
(Chapter 3 (commencing with Section 31450) of Part 3 of Division
4 of Title 3 of the Government Code and the federal Internal
Revenue Code).

(4) Meet and confer with the exclusive employee representatives
to develop processes and procedures to address employee
disciplinary action taken against permanent employees. If the
authority terminates, suspends, demotes, or reduces the pay of a
permanent employee for disciplinary reasons, those actions shall
only be for cause consistent with state law, and an employee shall
be afforded applicable due process protections granted to public
employees under state law. Permanent employees laid off by the
authority within six months of the date the ordinance is adopted
shall remain on the county reemployment list for two years.
Inclusion on the county reemployment list is not a guarantee of
reemployment. For the purposes of this paragraph, the term
“permanent employees” excludes probationary employees,
temporary employees, seasonal employees, provisional employees,
extra help employees, and per diem employees.

(5) To the extent layoffs occur, and provided that all other
previously agreed upon factors are equal, ensure that seniority
shall prevail. The authority shall meet and confer with the exclusive
employee representatives to address layoff procedures and the
manner in which, and the extent to which, seniority shall be
measured for employees who transfer from the medical center or
county.

(e) Permanent employees of the medical center or county on
the effective date of the transfer of the medical center to the
authority, shall be deemed qualified for employment in equivalent
positions at the authority, and no other qualifications shall be
required except as otherwise required by state or federal law.
Probationary employees on the effective date of the transfer, as
set forth in this paragraph, shall retain their probationary status
and rights and shall not be required to serve a new probationary
or extend their probationary period by reason of the transfer. To
the extent possible, employees who transfer to equivalent positions
at the authority shall retain their existing classifications and job
descriptions, but if there is a dispute over this issue, the authority
agrees to meet and confer with the exclusive employee
representatives of the transferred employees.

(f) Employees who transfer from the medical center or county
to the authority shall retain the seniority they earned at the medical
center or county and any benefits or privileges based on the
seniority.

(g) Notwithstanding any other law, employees of the authority
may participate in the Kern County Employees’ Retirement
Association, operated pursuant to the County Employees
Retirement Law of 1937 (Chapter 3 (commencing with Section
31450) of Part 3 of Division 4 of Title 3 of the Government Code)
as set forth below. However, the authority and employees of the
authority, or certain designated parts thereof, shall not participate
in the Kern County Employees’ Retirement Association if the
board of retirement, in its sole discretion, determines that their
participation could jeopardize the Kern County Employees’
Retirement Association’s tax-qualified or governmental plan status
under federal law, or if a contract or related contract amendment
proposed by the authority contains any benefit provisions that are
not specifically authorized by Chapters 3 (commencing with
Section 31450) and 3.9 (commencing with Section 31899) of Part
3 of Division 4 of Title 3 of the Government Code or Article 4
(commencing with Section 7522) of Chapter 21 of Division 7 of
Title 1 of the Government Code, and that the board determines
would adversely affect the administration of the system. There
shall not be any individual employee elections regarding
participation in the Kern County Employees’ Retirement
Association or other retirement plans except to the extent the
retirement plans provide for elective employee salary deferral
contributions in accordance with federal Internal Revenue Code
rules.

(1) Employees transferred from the county or medical center to
the authority who are subject to a memorandum of understanding
between the authority and an exclusive employee representative,
as described in paragraphs (2) and (3) of subdivision (d), and who
were members of the Kern County Employees’ Retirement
Association at the time of their transfer of employment, shall
continue to be a member of the Kern County Employees’
Retirement Association, retaining service credit earned to the date
of transfer, to the extent provided for in the applicable
memorandum of understanding.

(2) Employees transferred from the county or medical center to
the authority who are subject to a memorandum of understanding
between the authority and an exclusive employee representative,
as described in paragraphs (2) and (3) of subdivision (d), and who
were not members of the Kern County Employees’ Retirement
Association at the time of their transfer of employment, shall
subsequently become a member of the Kern County Employees’
Retirement Association only to the extent provided for in the
applicable memorandum of understanding.

(3) Employees transferred from the county or medical center to
the authority who are not subject to a memorandum of
understanding between the authority and an exclusive employee
representative, as described in paragraphs (2) and (3) of subdivision
(d), and who were members of the Kern County Employees’
Retirement Association at the time of their transfer of employment,
shall continue to be a member of the Kern County Employees’
Retirement Association, retaining service credit earned to the date
of transfer, as provided in the enabling ordinance or the personnel
transition plan.

(4) Employees transferred from the county or medical center to
the authority who are not subject to a memorandum of
understanding between the authority and an exclusive employee
representative, as described in paragraphs (2) and (3) of subdivision
(d), and who were not members of the Kern County Employees’
Retirement Association at the time of their transfer of employment,
shall subsequently become a member of the Kern County
Employees’ Retirement Association only to the extent provided
in the enabling ordinance or the personnel transition plan.

(5) Employees hired by the authority on or after the effective
date of the enabling ordinance shall become a member of the Kern
County Employees’ Retirement Association only to the extent
provided in the enabling ordinance or personnel transition plan
described in subdivision (a), or, if subject to a memorandum of
understanding between the authority and an exclusive employee
representative as described in paragraphs (2) and (3) of subdivision
(d), to the extent provided for in the applicable memorandum of
understanding.

(6) Notwithstanding any other law, for purposes of the California
Public Employees’ Pension Reform Act of 2013 (Article 4
(commencing with Section 7522) of Chapter 21 of Division 7 of
Title 1 of the Government Code), an individual who was employed
by the county or the medical center when it was a constituent
department of the county, and is a member of the Kern County
Employees’ Retirement Association or the Public Employees’
Retirement System, as set forth in Part 3 (commencing with Section
20000) of Division 5 of Title 2 of the Government Code, prior to
January 1, 2013, and who transfers, directly or after a break in
service of less than six months, to the authority, in which the
individual continues to be a member of either the Kern County
Employees’ Retirement Association or the Public Employees’
Retirement System, as applicable, shall not be deemed to be a new
employee or a new member within the meaning of Section 7522.04
of the Government Code, and shall continue to be subject to the
same defined benefit formula, as defined in Section 7522.04 of
the Government Code, to which the member was subject
immediately prior to the transfer.

(h) This chapter does not prohibit the authority from contracting
with the Public Employees’ Retirement System, in accordance
with the requirements of Section 20508 and any other applicable
provisions of Part 3 (commencing with Section 20000) of Division
5 of Title 2 of the Government Code, for the purpose of providing
employee participation in that system, or from establishing an
alternative or supplemental retirement system or arrangement,
including, but not limited to, deferred compensation arrangements,
to the extent permitted by law and subject to any applicable
agreement between the authority and the exclusive employee
representatives, and as provided in the enabling ordinance or the
personnel transition plan. Notwithstanding any other law, the
authority and employees of the authority shall not participate in
the Public Employees’ Retirement System if the Board of
Administration of the Public Employees’ Retirement System, in
its sole discretion, determines that their participation could
jeopardize the Public Employees’ Retirement System’s
tax-qualified or governmental plan status under federal law, or if
a contract or related contract amendment proposed by the authority
contains any benefit provisions that are not specifically authorized
by Part 3 (commencing with Section 20000) of Division 5 of Title
2 of the Government Code, and that the board determines would
adversely affect the administration of the system.

(i) Provided that this is not inconsistent with anything in this
chapter, this chapter does not prohibit the authority from
determining the number of employees, the number of full-time
equivalent positions, job descriptions, the nature and extent of
classified employment positions, and salaries of employees.

begin delete SEC. 333. end delete
begin insert SEC. 335. end insert   

Section 101855 of the Health and Safety Code is
amended to read:

101855.  

(a) The authority, in addition to any other powers
granted pursuant to this chapter, has the following powers:

(1) To have the duties, privileges, immunities, rights, liabilities,
and limitations of a local unit of government within the state.

(2) To have perpetual existence, subject to Article 5
(commencing with Section 101856).

(3) To adopt, have, and use a seal, and to alter it at its pleasure.

(4) To sue and be sued in the name of the authority in all actions
and proceedings in all courts and tribunals of competent
jurisdiction.

(5) To purchase, lease, trade, exchange, or otherwise acquire,
maintain, hold, improve, mortgage, lease, sell, and dispose of real
and personal property of any kind necessary or convenient to
perform its functions and fully exercise its powers.

(6) To appoint and employ a chief executive officer and other
officers and employees that may be necessary or appropriate,
including legal counsel, to establish their compensation, provide
for their health, retirement, and other employment benefits, and
to define the power and duties of officers and employees.

(7) (A) To incur indebtedness and to borrow money and issue
bonds evidencing the same, including the authority to issue, from
time to time, notes and revenue bonds in principal amounts that
the authority determines to be necessary to provide sufficient funds
for achieving any of its purposes, including, but not limited to,
assumption or refinancing of debt service for capital projects
eligible for Medi-Cal supplemental payments pursuant to Section
14085.5 of the Welfare and Institutions Code, or any successor or
modified Medi-Cal debt service reimbursement program, the
payment of interest on notes and bonds of the authority, the
establishment of reserves to secure those notes and bonds, and all
other expenditures of the authority incident to and necessary or
convenient to carry out its purposes and powers.

(B) Any notes, bonds, or other securities issued, and the income
from them, including any profit from the sale thereof, shall at all
times be free from taxation by the state or any agency, political
subdivision, or instrumentality of the state.

(C) Notwithstanding the provisions of subparagraph (A), for
any indebtedness, notes, bonds, or other securities that require
voter approval pursuant to state law, the prior approval of the board
of supervisors shall be required. Notwithstanding the required prior
approval of the board of supervisors, any indebtedness incurred,
or notes, bonds, or other securities issued pursuant to this
subparagraph shall be the indebtedness, notes, bonds, or securities
of the authority and not of the county, and the credit of the county
shall not be pledged or relied upon in any manner in order to incur
the indebtedness, or issue the notes, bonds, or other securities,
unless the board of supervisors explicitly authorizes the use of the
county’s credit. The authority shall reimburse the county for all
costs associated with the county’s consideration of the
indebtedness, notes, bonds, or securities, and the authority shall
defend, indemnify, and hold harmless the county from any and all
liability, costs, or expenses arising from or related to the
indebtedness, notes, bonds, or securities.

(D) This section does not preclude the authority from repayment
of its debts or other liabilities, using funds that are not otherwise
encumbered.

(8) To pursue its own credit rating.

(9) To enter into a contract or agreement consistent with this
chapter or the laws of this state, including, but not limited to,
contracting with any public or private entity or person for
management or other services and personnel, and to authorize the
chief executive officer to enter into contracts, execute all
instruments, and do all things necessary or convenient in the
exercise of the powers granted in this chapter.

(10) To purchase supplies, equipment, materials, property, and
services.

(11) To establish policies relating to its purposes.

(12) To acquire or contract to acquire, rights-of-way, easements,
privileges, and property, and to construct, equip, maintain, and
operate any and all works or improvements wherever located that
are necessary, convenient, or proper to carry out any of the
provisions, objects, or purposes of this chapter, and to complete,
extend, add to, repair, or otherwise improve any works or
improvements acquired by it.

(13) To participate in, contract for, and to accept, gifts, grants,
and loans of funds, property, or other aid or finance opportunity
in any form from the federal government, the state, a state agency,
or other source, or combination thereof, as otherwise would be
available to a public, government, or private entity, and to comply,
subject to this chapter, with the terms and conditions thereof.

(14) To invest surplus money in its own treasury, manage
investments, and engage third-party investment managers, in
accordance with state law.

(15) To arrange for guarantees or insurance of its bonds, notes,
or other obligations by the federal or state government or by a
private insurer, and to pay the premiums thereof.

(16) To engage in managed care contracting, joint ventures,
affiliations with other health care facilities, other health care
providers and payers, management agreements, or to participate
in alliances, purchasing consortia, health insurance pools,
accountable care organizations, alternative delivery systems, or
other cooperative arrangements, with any public or private entity.

(17) To enter into joint powers agreements pursuant to Chapter
5 (commencing with Section 6500) of Division 7 of Title 1 of the
Government Code. Notwithstanding any other law, the authority
may enter into a joint powers agreement as described in Section
6523.5 of the Government Code as though that section applied to
hospitals and other health care facilities in the County of Kern.

(18) To establish nonprofit, for-profit, or other entities necessary
to carry out the duties of the authority.

(19) To elect to transfer funds to the state and incur certified
public expenditures in support of the Medi-Cal program and other
programs for which federal financial participation is available.

(20) To use a computerized management information system,
including an electronic health records system, in connection with
its operations, including, without limitation, the administration of
its facilities.

(21) To request that the board of supervisors levy a tax on behalf
of the authority. If the board of supervisors approves the proposal
to levy the tax, it shall call the election to seek voter approval and
place the appropriate measure on the ballot for that election. The
proceeds of these taxes shall be tax proceeds of the authority and
not of the county. The authority shall reimburse the county for all
costs associated with the county’s consideration of those taxes,
and shall defend, indemnify, and hold harmless the county from
any liability, costs, or expenses arising from or related to the
imposition of these taxes.

(22) Notwithstanding the provisions of this chapter relating to
the obligations and liabilities of the authority, or any other law, a
transfer of control or ownership of the medical center to the
authority pursuant to this chapter shall confer onto the authority
all the rights, privileges, and authority set forth in state law to own,
operate, and provide coverage and services through hospitals,
clinics and other health facilities, health programs, care
organizations, physician practice plans, delivery systems, health
care service plans, and other coverage mechanisms that may be
owned or operated by a county.

(23) To engage in other activities that may be in the best interests
of the authority and the persons served by the authority, as
determined by the board of governors, in order to respond to
changes in the health care industry.

(b) The authority shall conform to the following requirements:

(1) (A) Be a government agency that is a local unit of
government separate and apart for all purposes from the county
and any other public entity, and shall not be considered to be an
agency, division, or department of the county or any other public
entity. The authority shall not be governed by or subject to the
civil service requirements of the county. Except as otherwise
provided for in the enabling ordinance consistent with this chapter,
and as set forth in Section 101853.1 relating to the personnel
transition plan, the authority is not governed by, or subject to, other
policies or operational rules of the county, medical center, or any
other public entity, including, but not limited to, those relating to
personnel and procurement.

(B) The board of governors shall adopt written rules, regulations,
and procedures with regard to basic human resource functions not
inconsistent with memoranda of understanding covering employees
represented by employee organizations or the provisions of this
chapter. Until the time that the board of governors adopts its own
rules, regulations, or procedures with regard to these functions,
the existing rules, regulations, and procedures set forth in any
memoranda of understanding described in Section 101853.1, and
the rules and regulations adopted by the county and described in
paragraph (4), shall continue to apply.

(2) Be subject to state and federal taxation laws that are
applicable to public entities generally.

(3) Except as otherwise specifically provided in this chapter,
comply with the Meyers-Milias-Brown Act (Chapter 10
(commencing with Section 3500) of Division 4 of Title 1 of the
Government Code), the California Public Records Act (Chapter
3.5 (commencing with Section 6250) of Division 7 of Title 1 of
the Government Code), and the Ralph M. Brown Act (Chapter 9
(commencing with Section 54950) of Part 1 of Division 2 of Title
5 of the Government Code).

(4) Be subject to the jurisdiction of the Public Employment
Relations Board. Until the authority adopts rules and regulations
pursuant to subdivision (a) of Section 3507 of the Government
Code, the existing rules adopted by the county and contained in
the county’s employer-employee relations resolution, as amended,
shall apply, modified to account for the creation of the authority,
and provided further that the resolution shall not contain any
incorporation of the county’s civil service rules or county
ordinances unless specifically addressed in this chapter.

(5) Carry professional and general liability insurance or
programs to the extent sufficient to cover its activities.

(6) Comply with the requirements of Sections 53260 and 53261
of the Government Code.

(7) Maintain financial and accounting records.

(8) Meet all local, state, and federal data reporting requirements.

(c) Subject to any restrictions applicable to public agencies, and
subject to any limitations or conditions set forth in the enabling
ordinance adopted by the board of supervisors, the authority may
borrow money from the county, repay debt it owes to the county,
and use the borrowed funds to provide for its operating and capital
needs. The county may lend the authority funds or issue revenue
anticipation notes to obtain those funds necessary to meet its
operating or capital needs.

(d) Open sessions of the authority constitute official proceedings
authorized by law within the meaning of Section 47 of the Civil
Code. The privileges set forth in that section with respect to official
proceedings apply to open sessions of the authority.

(e) (1) Notwithstanding any other law, the board of governors
may order that a meeting held solely for the purpose of discussion
or taking action on authority trade secrets, as defined in subdivision
(d) of Section 3426.1 of the Civil Code, or to consider and take
action on matters pertaining to contracts and contract negotiations
concerning all matters related to rates of payment for health care
services arranged or provided by the authority, shall be held in
closed session. Trade secrets, for purposes of this chapter, also
include information for which the secrecy of the information is
necessary for the authority to initiate a new service, program,
marketing strategy, business plan, or technology, or to add a benefit
or product, and premature disclosure of the trade secret would
create a substantial probability of depriving the authority of a
substantial economic benefit or opportunity.

(2) The requirements of making a public report of actions taken
in closed session and the vote or abstention of every member
present may be limited to a brief general description devoid of the
information constituting the trade secret or concerning the matters
related to rates of payment.

(3) Records of the authority that reveal the authority’s trade
secrets are exempt from disclosure pursuant to the California Public
Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code), or any similar local
law requiring the disclosure of public records. This exemption
shall apply for a period of two years after the service, program,
marketing strategy, business plan, technology, benefit, or product
that is the subject of the trade secret is formally adopted by the
governing body of the authority, provided that the service, program,
marketing strategy, business plan, technology, benefit, or product
continues to be a trade secret. The board of governors may delete
the portion or portions containing trade secrets from any documents
that were finally approved in the closed session that are provided
to persons who have made the timely or standing request.

(4) This chapter does not prevent the board of governors from
meeting in closed session as otherwise provided by law.

(f) Notwithstanding any other law, those records of the authority
and of the county that reveal the authority’s rates of payment for
health care services arranged or provided by the authority or its
deliberative processes, strategies, discussions, communications,
or any other portion of the negotiations with providers of health
care services or Medi-Cal, health care plans, or other payers for
rates of payment, shall not be required to be disclosed pursuant to
the California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code),
or any similar local law requiring the disclosure of public records.
However, three years after a contract or amendment to a contract
is fully executed, the portion of the contract or amendment
containing the rates of payment shall be open to inspection.

(g) The authority is a public agency that is a local unit of
government for purposes of eligibility with respect to grants and
other funding and loan guarantee programs. Contributions to the
authority are tax deductible to the extent permitted by state and
federal law. Nonproprietary income of the authority is exempt
from state income taxation.

(h) Unless otherwise provided by the board of supervisors by
way of resolution, the authority is empowered, or the board of
supervisors is empowered on behalf of the authority, to apply as
a public agency for one or more licenses for the provision of health
care or the operation of a health care service plan pursuant to
statutes and regulations governing licensing as currently written
or subsequently amended.

(i) The statutory authority of a board of supervisors to prescribe
rules that authorize a county hospital to integrate its services with
those of other providers into a system of community service that
offers free choice of hospitals to those requiring hospital care, as
set forth in Section 14000.2 of the Welfare and Institutions Code,
apply to the authority and the board of governors.

(j) (1) Except as otherwise provided in this chapter, provisions
of the Evidence Code, the Government Code, including the
California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code),
the Civil Code, the Business and Professions Code, and other
applicable law pertaining to the confidentiality of peer review
activities of peer review bodies apply to the peer review activities
of the authority, or any peer review body, as defined in paragraph
(1) of subdivision (a) of Section 805 of the Business and
Professions Code, formed pursuant to the powers granted to the
authority. The laws pertaining to the confidentiality of peer review
activities shall be together construed as extending, to the extent
permitted by law, the maximum degree of protection of
confidentiality.

(2) Notwithstanding Article 9 (commencing with Section 11120)
of Chapter 1 of Part 1 of Division 3 of Title 2 of, and Chapter 9
(commencing with Section 54950) of Part 1 of Division 2 of Title
5 of, the Government Code, or any other provision of law, any
peer review body formed pursuant to the powers granted to the
authority, may, at its discretion and without notice to the public,
meet in closed session, so long as the purpose of the meeting is
the peer review body’s discharge of its responsibility to evaluate
and improve the quality of care rendered by health facilities and
health practitioners. The peer review body and its members shall
receive, to the fullest extent, all immunities, privileges, and
protections available to those peer review bodies, their individual
members, and persons or entities assisting in the peer review
process, including those afforded by Section 1157 of the Evidence
Code and Section 1370. Peer review proceedings shall constitute
an official proceeding authorized by law within the meaning of
Section 47 of the Civil Code and those privileges set forth in that
section with respect to official proceedings shall apply to peer
review proceedings of the authority.

(3) Notwithstanding the California Public Records Act (Chapter
3.5 (commencing with Section 6250) of Division 7 of Title 1 of
the Government Code), or Article 9 (commencing with Section
11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of, and
Chapter 9 (commencing with Section 54950) of Part 1 of Division
2 of Title 5 of, the Government Code, or any other provision of
state or local law requiring disclosure of public records, those
records of a peer review body formed pursuant to the powers
granted to the authority, shall not be required to be disclosed. The
records and proceedings of the peer review body and its individual
members shall receive, to the fullest extent, all immunities,
privileges, and protections available to those records and
proceedings, including those afforded by Section 1157 of the
Evidence Code and Section 1370.

(4) If the authority is required by law or contractual obligation
to submit to the state or federal government peer review
information or information relevant to the credentialing of a
participating provider, that submission does not constitute a waiver
of confidentiality.

(5) Notwithstanding any other law, Section 1461 applies to
hearings on reports of hospital medical audit or quality assurance
committees.

(k) Except as expressly provided by other provisions of this
section, all exemptions and exclusions from disclosure as public
records pursuant to this chapter and the California Public Records
Act, including, but not limited to, those pertaining to trade secrets
and information withheld in the public interest, are fully applicable
to the authority, and for the board of supervisors, and all state and
local agencies with respect to all writings that the authority is
required to prepare, produce, or submit, and which shall not
constitute a waiver of exemption from disclosure.

(l) The authority and the county, or any combination thereof,
may engage in marketing, advertising, and promotion of the
medical and health care services made available to the community
by the authority.

(m) The board of governors has authority over procurement and
contracts for the authority. The board of governors shall adopt
written rules, regulations, and procedures with regard to these
functions. Contracts by and between the authority and a public
agency, and contracts by and between the authority and providers
of health care, goods, or services, may be let on a nonbid basis and
shall be exempt from Chapter 2 (commencing with Section 10290)
of Part 2 of Division 2 of the Public Contract Code.

(n) The authority may contract with the county for services and
personnel upon mutually agreeable terms.

(o) Notwithstanding Article 4.7 (commencing with Section
1125) of Chapter 1 of Division 4 of Title 1 of the Government
Code, related to incompatible activities, Section 1099 of the
Government Code, related to incompatible offices, or any other
law, a member of the authority’s administrative staff shall not be
considered to hold an incompatible office or to be engaged in
activities inconsistent and incompatible with his or her duties as
a result of his or her employment or affiliation with the county or
an agency of the county.

(p) The board of governors and the officers and employees of
the authority are public employees for purposes of Division 3.6
(commencing with Section 810) of Title 1 of the Government
Code, relating to claims and actions against public entities and
public employees, and shall be protected by the immunities
applicable to public entities and public employees governed by
Part 2 (commencing with Section 814) of Division 3.6 of Title 1
of the Government Code, except as provided by other statutes or
regulations that apply expressly to the authority.

begin delete SEC. 334. end delete
begin insert SEC. 336. end insert   

Section 101855.1 of the Health and Safety Code is
amended to read:

101855.1.  

(a) Transfer by the county to the authority of the
maintenance, operation, and management or ownership of the
medical center, whether or not the transfer includes the
surrendering by the county of the existing general acute care
hospital license and corresponding application for a change of
ownership of the license, does not affect the eligibility of the county
to undertake, and authorizes the authority, subject to applicable
requirements, to do any of the following:

(1) With the written consent of the county, participate in and
receive allocations pursuant to the California Health Care for
Indigents Program pursuant to Chapter 5 (commencing with
Section 16940) of Part 4.7 of Division 9 of the Welfare and
Institutions Code, or similar programs, as may be identified or
earmarked by the county for indigent health care services of the
type provided by the medical center.

(2) With the written consent of the county, participate in and
receive allocations of local revenue fund amounts provided
pursuant to Chapter 6 (commencing with Section 17600) of Part
5 of Division 9 of the Welfare and Institutions Code as may be
identified or earmarked by the county for indigent health care
services of the type provided by the medical center.

(3) Participate in the financing of, as applicable, and receive,
Medicaid disproportionate share hospital payments available to a
county hospital or designated public hospital, or any other
successor or modified payment or funding that is intended to assist
hospitals that serve a disproportionate share of low-income patients
with special needs. The allocation of Medicaid disproportionate
share hospital payments shall be made in consultation with the
State Department of Health Care Services and other designated
safety net hospitals.

(4) Participate in the financing of, as applicable, and receive,
Medi-Cal payments and supplemental reimbursements, including,
but not limited to, payments made pursuant to Sections 14105.96,
14105.965, 14166.4, 14182.15, and 14199.2 of the Welfare and
Institutions Code, payments described in paragraph (4) of
subdivision (b) of Section 14301.4 of, and Section 14301.5 of, the
Welfare and Institutions Code, and payments made available to a
county provider or designated public hospital, or governmental
entity with which it is affiliated, under any other successor or
modified Medicaid payment system.

(5) Participate in the financing of, as applicable, and receive,
safety net care pool funding, stabilization funding, delivery system
reform incentive pool payments, and any other funding available
to a county provider or designated public hospital, or governmental
entities with which it is affiliated under the Medicaid demonstration
project authorized pursuant to Article 5.2 (commencing with
Section 14166) and Article 5.4 (commencing with Section 14180)
of Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions
Code, or under any other successor or modified Medicaid
demonstration project or Medicaid payment system. The allocation
of safety net care pool funds shall be made in consultation with
the State Department of Health Care Services and other designated
safety net hospitals.

(6) Participate in the financing, administration, and provision
of services under the Low Income Health Program authorized
pursuant to Part 3.6 (commencing with Section 15909) of Division
9 of the Welfare and Institutions Code, or under any other successor
or modified Medicaid demonstration project or Medicaid payment
system if the authority enters into an agreement with the county
concerning the provision of services by, and payment for these
services to, the county.

(7) Participate in and receive direct grant and payment
allocations pursuant to Article 5.230 (commencing with Section
14169.50) of Chapter 7 of Part 3 of Division 9 of the Welfare and
Institutions Code, or under any other successor or modified direct
grant and payment systems funded by hospital or other provider
fee assessments.

(8) Receive Medi-Cal capital supplements pursuant to Section
14085.5 of the Welfare and Institutions Code, or any other
successor or modified Medi-Cal debt service reimbursement
program. Notwithstanding any other law, supplemental payments
shall be made to the medical center under those programs for the
debt service costs incurred by the county, and, if applicable, by
the authority to the extent that debt service responsibility is
refinanced, transferred to, or otherwise assumed by, directly or
indirectly, the authority.

(9) Receive any other funds, or preference in the assignment of
health care plan enrollees, that would otherwise be available to a
county health plan, provider, or designated public hospital, or
governmental entity with which it is affiliated.

(b) The transfer of the medical center to the authority pursuant
to this chapter does not otherwise disqualify the county or the
authority from participating in any of the following:

(1) Local, state, and federal funding sources either specific to
county or other publicly owned or operated health care service
plans, hospitals, or other health care providers, including, but not
limited to, ambulatory care clinics, health systems, practices,
designated public hospitals, or governmental entities with which
they are affiliated, for which there are special provisions specific
to those plans, hospitals, ambulatory care clinics, health systems,
practices, other health care providers or governmental entities with
which they are affiliated.

(2) All funding programs in which the county, by itself or on
behalf of the medical center, had participated prior to the creation
of the authority, or would otherwise be qualified to participate in
had the authority not been created, and the maintenance, operation,
and management or ownership of the medical center not been
transferred to the authority pursuant to this chapter.

begin delete SEC. 335. end delete
begin insert SEC. 337. end insert   

Chapter 6 (commencing with Section 101860) of
Part 4 of Division 101 of the Health and Safety Code, as added by
Section 2 of Chapter 925 of the Statutes of 1997, is repealed.

begin delete SEC. 336. end delete
begin insert SEC. 338. end insert   

Section 102430 of the Health and Safety Code, as
added by Section 7 of Chapter 334 of the Statutes of 2014, is
amended to read:

102430.  

(a) The second section of the certificate of live birth
as specified in subdivision (b) of Section 102425, the electronic
file of birth information collected pursuant to subparagraphs (B)
to (F), inclusive, of paragraph (2) of subdivision (a) of Section
102426, the birth mother linkage collected pursuant to Section
102425.2, and the second section of the certificate of fetal death
as specified in Section 103025, are confidential. Access to the
confidential portion of any certificate of live birth or fetal death,
the electronic file of birth information collected pursuant to
subparagraphs (B) to (F), inclusive, of paragraph (2) of subdivision
(a) of Section 102426, and the birth mother linkage collected
pursuant to Section 102425.2 shall be limited to the following:

(1) Department staff.

(2) Local registrar’s staff and local health department staff when
approved by the local registrar or local health officer, respectively.

(3) The county coroner.

(4) Persons with a valid scientific interest as determined by the
State Registrar, who are engaged in demographic, epidemiological,
or other similar studies related to health, and who agree to maintain
confidentiality as prescribed by this part and by regulation of the
State Registrar.

(5) The parent who signed the certificate or, if no parent signed
the certificate, the mother.

(6) The person named on the certificate.

(7) A person who has petitioned to adopt the person named on
the certificate of live birth, subject to Section 102705 of the Health
and Safety Code and Sections 9200 and 9203 of the Family Code.

(b) (1) The department shall maintain an accurate record of all
persons who are given access to the confidential portion of the
certificates. The record shall include all of the following:

(A) The name of the person authorizing access.

(B) The name, title, and organizational affiliation of persons
given access.

(C) The dates of access.

(D) The specific purpose for which the information is to be
used.

(2) The record of access shall be open to public inspection
during normal operating hours of the department.

(c) All research proposed to be conducted using the confidential
medical and social information on the birth certificate or fetal death
certificate shall first be reviewed by the appropriate committee
constituted for the protection of human subjects that is approved
by the federal Department of Health and Human Services and has
a general assurance pursuant to Part 46 of Title 45 of the Code of
Federal Regulations. Information shall not be released until the
request for information has been reviewed by the Vital Statistics
Advisory Committee and the committee has recommended to the
State Registrar that the information shall be released.

(d) This section shall become operative on January 1, 2016.

begin insert

begin insert SEC. 339. end insert   

end insert

begin insert Section 102825 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

102825.  

begin delete The end delete begin insert (a) end insert begin insert   end insert begin insert The end insert physician and surgeon last in attendance,
or in the case of a patient in a skilled nursing or intermediate care
facility at the time of death, the physician and surgeon last in
attendance or a licensed physician assistant under the supervision
of the physician and surgeon last in attendance, on a deceased
person shall state on the certificate of death the disease or condition
directly leading to death, antecedent causes, other significant
conditions contributing to death and any other medical and health
section data as may be required on the certificate; he or she shall
also specify the time in attendance, the time he or she last saw the
deceased person alive, and the hour and day on which death
occurred, except in deaths required to be investigated by the
coroner. The physician and surgeon or physician assistant shall
specifically indicate the existence of any cancer as defined in
subdivision begin delete (e) end delete begin insert (h) end insert of Section 103885, of which the physician and
surgeon or physician assistant has actual knowledge.

begin delete

A

end delete

begin insert (b) end insert begin insert   end insert begin insert A end insert physician and surgeon may designate, one or more other
physicians and surgeons who have access to the physician and
surgeon’s records, to act as agent for the physician and surgeon
for purposes of the performance of his or her duties under this
section, provided that any person so designated acts in consultation
with the physician and surgeon.

begin delete SEC. 337. end delete
begin insert SEC. 340. end insert   

The heading of Chapter 2 (commencing with Section
104145) of Part 1 of Division 103 of the Health and Safety Code
is amended to read:

 

Chapter  2. Cancer

 

begin delete SEC. 338. end delete
begin insert SEC. 341. end insert   

Section 111825 of the Health and Safety Code is
amended to read:

111825.  

(a) A person who violates a provision of this part or
a regulation adopted pursuant to this part shall, if convicted, be
subject to imprisonment for not more than one year in a county
jail or a fine of not more than one thousand dollars ($1,000), or
both the imprisonment and fine.

(b) Notwithstanding subdivision (a), a person who violates
Section 111865 by removing, selling, or disposing of an embargoed
food, drug, device, or cosmetic without the permission of an
authorized agent of the department or court shall, if convicted, be
subject to imprisonment for not more than one year in a county
jail or a fine of not more than ten thousand dollars ($10,000), or
both the fine and imprisonment.

(c) (1) Notwithstanding subdivision (a), a person who purchases
or sells a foreign dangerous drug or medical device, an illegitimate
product, as defined in Section 360eee(8) of Title 21 of the United
States Code, or a suspect product, as defined in Section 360eee(21)
of Title 21 of the United States Code, that is not approved or
otherwise authorized by the United States Food and Drug
Administration or that is obtained outside of the licensed supply
chain regulated by the United States Food and Drug
Administration, California State Board of Pharmacy, or State
Department of Public Health is guilty of a misdemeanor and subject
to imprisonment for not more than one year in a county jail, a fine
of not more than ten thousand dollars ($10,000) per occurrence,
or both the imprisonment and fine.

(2) This subdivision does not apply to those individuals
determined by the United States Food and Drug Administration
to have acted in compliance with the requirements under Part H
(commencing with Section 360eee) of Subchapter V of Chapter 9
of Title 21 of the United States Code with regard to the illegitimate
or suspect products.

(d) If the violation is committed after a previous conviction
under this section that has become final, or if the violation is
committed with intent to defraud or mislead, or if the person
committed a violation of Section 110625 or 111300 that was
intentional or that was intended to cause injury, the person shall
be subject to imprisonment for not more than one year in a county
jail, imprisonment in the state prison, or a fine of not more than
ten thousand dollars ($10,000), or both the imprisonment and fine.

(e) This section does not preclude punishment under any other
law that provides for a greater punishment.

begin delete SEC. 339. end delete
begin insert SEC. 342. end insert   

Section 115880 of the Health and Safety Code is
amended to read:

115880.  

(a) The department shall, by regulation and in
consultation with the board, local health officers, and the public,
establish, maintain, and amend as necessary, minimum standards
for the sanitation of public beaches, including, but not limited to,
the removal of refuse, as it determines are reasonably necessary
for the protection of the public health and safety.

(b) Prior to final adoption or amendment by the department, the
regulations and standards required by this section shall undergo
an external comprehensive review process similar to the process
set forth in Section 57004.

(c) The regulations shall, at a minimum, do all of the following:

(1) Require the testing of the waters adjacent to all public
beaches for microbiological contaminants, including, but not
limited to, total coliform, fecal coliform, and enterococci bacteria.
The department may require the testing of waters adjacent to all
public beaches for microbiological indicators other than those set
forth in this paragraph, or a subset of those set forth in this
paragraph, if the department affirmatively establishes, based on
the best available scientific studies and the weight of the evidence,
that the alternative indicators are as protective of the public health.

(2) Establish protective minimum standards for total coliform,
fecal coliform, and enterococci bacteria, or for other
microbiological indicators that the department determines are
appropriate for testing pursuant to paragraph (1).

(3) Require that the waters adjacent to public beaches are tested
for total coliform, fecal coliform, and enterococci bacteria, or for
other microbiological indicators that the department determines
are appropriate for testing pursuant to paragraph (1). Except as set
forth in subdivision (e), testing shall be conducted on at least a
weekly basis from April 1 to October 31, inclusive, of each year
beginning in 2012, if both of the following apply:

(A) The beach is visited by more than 50,000 people annually.

(B) The beach is located on an area adjacent to a storm drain
that flows in the summer.

(d) Notwithstanding subdivision (a), if a local health officer
demonstrates or has demonstrated through side-by-side testing
over a beach season that the use of United States Environmental
Protection Agency method 1609 or 1611, or any equivalent or
improved rapid detection method published by the United States
Environmental Protection Agency for use in beach water quality
assessment or approved as an alternative test procedure pursuant
to Part 136 of Title 40 of the Code of Federal Regulations, to
determine the level of enterococci bacteria as a single indicator
provides a reliable indication of overall microbiological
contamination conditions at one or more beach locations within
that health officer’s jurisdiction, the department may authorize the
use of that testing method at those beach locations instead of other
testing methods. In making that determination, the department
shall take into account whether an alternative indicator or subset
of indicators, with the associated test method, can provide results
more quickly, thereby reducing the period of time the public is at
risk while waiting for contamination to be confirmed.

(e) The monitoring frequency and locations established pursuant
to this section and related regulations may be reduced or altered
only after the testing required pursuant to paragraph (3) of
subdivision (c) reveals levels of microbiological contaminants that
do not exceed, for a period of two years, the minimum protective
standards established pursuant to this section.

(f) The local health officer is responsible for testing the waters
adjacent to, and coordinating the testing of, all public beaches
within his or her jurisdiction.

(g) The local health officer may meet the testing requirements
of this section by utilizing test results from other parties conducting
microbiological contamination testing of the waters under his or
her jurisdiction.

(h) This section does not require a wastewater treatment agency
or other party conducting microbiological contamination testing
of the waters under his or her jurisdiction, who provides those test
results to a local health officer pursuant to this section, to use
United States Environmental Protection Agency method 1609 or
1611, or any equivalent or improved rapid detection method
published by the United States Environmental Protection Agency
for use in beach water quality assessment or approved as an
alternative test procedure pursuant to Part 136 of Title 40 of the
Code of Federal Regulations, for total maximum daily load
implementation, waste discharge requirements, or other monitoring
programs required to be implemented pursuant to Division 7
(commencing with Section 13000) of the Water Code.

(i) Any city or county may adopt standards for the sanitation of
public beaches within its jurisdiction that are stricter than the
standards adopted by the department pursuant to this section.

begin delete SEC. 340. end delete
begin insert SEC. 343. end insert   

Section 116283 of the Health and Safety Code, as
amended by Section 11 of Chapter 298 of the Statutes of 2009, is
repealed.

begin delete SEC. 341. end delete
begin insert SEC. 344. end insert   

Section 116612 of the Health and Safety Code, as
added by Section 11 of Chapter 814 of the Statutes of 1997, is
repealed.

begin delete SEC. 342. end delete
begin insert SEC. 345. end insert   

Section 116612 of the Health and Safety Code, as
added by Section 3 of Chapter 815 of the Statutes of 1997, is
amended to read:

116612.  

On or before January 1, 1999, the California Drinking
Water and Toxic Enforcement Act scientific advisory panel shall
make a recommendation to the Office of Environmental Health
Hazard Assessment on whether MTBE should be listed as a
carcinogenic or reproductive toxin as set forth in Chapter 1
(commencing with Section 25102) of Division 4 of Title 27 of the
California Code of Regulations.

begin delete SEC. 343. end delete
begin insert SEC. 346. end insert   

Section 119316 of the Health and Safety Code is
amended to read:

119316.  

(a) A mobile body art facility shall meet all the
applicable requirements in Article 1 (commencing with Section
119300) to Article 4 (commencing with Section 119312), inclusive,
and Article 6 (commencing with Section 119319), unless
specifically exempted by this article.

(b) A mobile body art facility that is either a special purpose
commercial modular and coach, as defined by Section 18012.5,
or a commercial modular coach, as defined by Section 18001.8,
shall be certified by the Department of Housing and Community
Development, consistent with Chapter 4 (commencing with Section
18025) of Part 2 of Division 13, and regulations promulgated
pursuant to that chapter.

(c) The Department of Motor Vehicles occupational licensing
requirements, Division 5 (commencing with Section 11100) of the
Vehicle Code, also apply to these mobile body art facilities.

(d) The local enforcement agency shall approve all equipment
installation prior to operation.

begin delete SEC. 344. end delete
begin insert SEC. 347. end insert   

Section 120155 of the Health and Safety Code, as
amended by Section 174 of Chapter 130 of the Statutes of 2007,
is amended and renumbered to read:

120160.  

(a) Any manufacturer or distributor of the influenza
vaccine, or nonprofit health care service plan that exclusively
contracts with a single medical group in a specified geographic
area to provide, or to arrange for the provision of, medical services
to its enrollees, shall report the information described in subdivision
(c) relating to the supply of the influenza vaccine to the department
upon notice from the department.

(b) Within each county or city health jurisdiction, entities that
have possession of, or have a legal right to obtain possession of,
the influenza vaccine, or entities that are conducting or intend to
conduct influenza clinics for the public, their residents, or their
employees, except those entities described in subdivision (a), shall
cooperate with the local health officer in determining local
inventories of influenza vaccine, including providing inventory,
orders, and distribution lists in a timely manner, when necessary.

(c) The information reported pursuant to subdivision (a) shall
include, but is not limited to, the amount of the influenza vaccine
that has been shipped, and the name, address, and, if applicable,
the telephone number of the recipient.

(d) Subdivisions (a), (b), and (c) do not apply to a physician
and surgeon practice, unless the practice is an occupational health
provider who conducts influenza vaccination campaigns on behalf
of a corporation.

(e) It is the intent of the Legislature in enacting this section to
assist small physician and surgeon practices, nursing facilities, and
other health care providers that provide care for patients at risk of
illness or death from influenza by facilitating the sharing of vaccine
supplies, if necessary, between providers within a local jurisdiction.

(f) If a business believes that the information required by this
section involves the release of a trade secret, the business shall
nevertheless disclose the information to the department, and shall
notify the department in writing of that belief at the time of
disclosure. As used in this section, “trade secret” has the meanings
given to it by Section 6254.7 of the Government Code and Section
1061 of the Evidence Code. Any information, including identifying
information, including, but not limited to, the name of the agent
or contact person of an entity that receives the influenza vaccine
from a manufacturer or distributor, or nonprofit health care service
plan described in subdivision (a), and the receiving entity’s address
and telephone number, that is reported pursuant to this section
shall not be disclosed by the department to anyone, except to an
officer or employee of the county, city, city and county, or the
state in connection with the official duties of that officer or
employee to protect the public health.

begin insert

begin insert SEC. 348. end insert   

end insert

begin insert Section 120262 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

120262.  

Notwithstanding Chapter 7 (commencing with Section
120975) or any other begin delete provision of end delete law, the blood or other tissue
or material of a source patient may be tested, and an exposed
individual may be informed whether the patient has tested positive
or negative for a communicable disease if the exposed individual
and the health care facility, if any, have substantially complied
with the then applicable guidelines of the Division of Occupational
Safety and Health and the State Department of Health Services
and if the following procedure is followed:

(a)  (1)   begin delete Whenever end delete begin insert If end insert a person becomes an exposed individual
by experiencing an exposure to the blood or other potentially
infectious material of a patient during the course of rendering
health care-related services or occupational services, the exposed
individual may request an evaluation of the exposure by a physician
to determine if it is a significant exposure, as defined in subdivision
(h) of Section 120261. begin delete No end delete begin insert A end insert physician or other exposed individual
shall begin insert not end insert certify his or her own significant exposure. However, an
employing physician may certify the exposure of one of his or her
employees. Requests for certification shall be made in writing
within 72 hours of the exposure.

(2)  A written certification by a physician of the significance of
the exposure shall be obtained within 72 hours of the request. The
certification shall include the nature and extent of the exposure.

(b)  (1)  The exposed individual shall be counseled regarding
the likelihood of transmission, the limitations of the testing
performed, the need for followup testing, and the procedures that
the exposed individual must follow regardless of whether the
source patient has tested positive or negative for a communicable
disease. The exposed individual may be tested in accordance with
the then applicable guidelines or standards of the Division of
Occupational Safety and Health. The result of this test shall be
confirmed as negative before available blood or other patient
samples of the source patient may be tested for evidence of
infection to a communicable disease, without the consent of the
source patient pursuant to subdivision (d).

(2)  Within 72 hours of certifying the exposure as significant,
the certifying physician shall provide written certification to an
attending physician of the source patient that a significant exposure
to an exposed individual has occurred, and shall request
information on whether the source patient has tested positive or
negative for a communicable disease, and the availability of blood
or other patient samples. An attending physician shall respond to
the request for information within three working days.

(c)  If test results of the source patient are already known to be
positive for a communicable disease then, except as provided in
subdivisions (b) and (c) of Section 121010, when the exposed
individual is a health care provider or an employee or agent of the
health care provider of the source patient, an attending physician
and surgeon of the source patient shall attempt to obtain the consent
of the source patient to disclose to the exposed begin insert individual end insert the
testing results of the source patient regarding communicable
diseases. If the source patient cannot be contacted or refuses to
consent to the disclosure, then the exposed individual may be
informed of the test results regarding communicable diseases of
the source patient by an attending physician of the source patient
as soon as possible after the exposure has been certified as
significant, notwithstanding Section 120980 or any other begin delete provision
of end delete law.

(d)  If the communicable disease status of the source patient is
unknown to the certifying physician or an attending physician, if
blood or other patient samples are available, and if the exposed
individual has tested negative on a baseline test for communicable
diseases, the source patient shall be given the opportunity to give
informed consent to a test for communicable diseases in accordance
with the following:

(1)  Within 72 hours after receiving a written certification of
significant exposure, an attending physician of the source patient
shall do all of the following:

(A)  Make a good faith effort to notify the source patient or the
authorized legal representative of the source patient about the
significant exposure. A good faith effort to notify includes, but is
not limited to, a documented attempt to locate the source patient
by telephone or by first-class mail with a certificate of mailing.
An attempt to locate the source patient and the results of that
attempt shall be documented in the medical record of the source
patient. An inability to contact the source patient, or legal
representative of the source patient, after a good faith effort to do
so as provided in this subdivision, shall constitute a refusal of
consent pursuant to paragraph (2). An inability of the source patient
to provide informed consent shall constitute a refusal of consent
pursuant to paragraph (2), provided all of the following conditions
are met:

(i)  The source patient has no authorized legal representative.

(ii)  The source patient is incapable of giving consent.

(iii)  In the opinion of the attending physician, it is likely that
the source patient will be unable to grant informed consent within
the 72-hour period during which the physician is required to
respond pursuant to paragraph (1).

(B)  Attempt to obtain the voluntary informed consent of the
source patient or the authorized legal representative of the source
patient to perform a test for a communicable disease, on the source
patient or on any available blood or patient sample of the source
patient. The voluntary informed consent shall be in writing. The
source patient shall have the option not to be informed of the test
result. An exposed individual shall be prohibited from attempting
to obtain directly informed consent for testing for communicable
diseases from the source patient.

(C)  Provide the source patient with medically appropriate
pretest counseling and refer the source patient to appropriate
posttest counseling and followup, if necessary. The source patient
shall be offered medically appropriate counseling whether or not
he or she consents to testing.

(2)  If the source patient or the authorized legal representative
of the source patient refuses to consent to test for a communicable
disease after a documented effort has been made to obtain consent,
any available blood or patient sample of the source patient may
be tested. The source patient or authorized legal representative of
the source patient shall be informed that an available blood sample
or other tissue or material will be tested despite his or her refusal,
and that the exposed individual shall be informed of the test results
regarding communicable diseases.

(3)  If the informed consent of the source patient cannot be
obtained because the source patient is deceased, consent to perform
a test for a communicable disease on any blood or patient sample
of the source patient legally obtained in the course of providing
health care services at the time of the exposure event shall be
deemed granted.

(4)  A source patient or the authorized legal representative of a
source patient shall be advised that he or she shall be informed of
the results of the test for communicable diseases only if he or she
wishes to be so informed. If a patient refuses to provide informed
consent to testing for communicable diseases and refuses to learn
the results of the testing, he or she shall sign a form documenting
this refusal. The source patient’s refusal to sign this form shall be
construed to be a refusal to be informed of the test results regarding
communicable diseases. Test results for communicable diseases
shall only be placed in the medical record when the patient has
agreed in writing to be informed of the results.

(5)  Notwithstanding any other begin delete provision of end delete law, if the source
patient or authorized legal representative of a source patient refuses
to be informed of the results of the test, the test results regarding
communicable diseases of that source patient shall only be provided
to the exposed individual in accordance with the then applicable
regulations established by the Division of Occupational Safety and
Health.

(6)  The source patient’s identity shall be encoded on the
communicable disease test result record.

(e)  If an exposed individual is informed of the status of a source
patient with regard to a communicable disease pursuant to this
section, the exposed individual shall be informed that he or she is
subject to existing confidentiality protections for any identifying
information about the communicable disease test results, and that
medical information regarding the communicable disease status
of the source patient shall be kept confidential and may not be
further disclosed, except as otherwise authorized by law. The
exposed individual shall be informed of the penalties for which
he or she would be personally liable for violation of Section
120980.

(f)  The costs for the test and counseling for communicable
diseases of the exposed individual, or the source patient, or both,
shall be borne by the employer of the exposed individual, if any.
An employer who directs and controls the exposed individual shall
provide the postexposure evaluation and followup required by the
begin delete California end delete Division of Occupational Safety and Health as well as
the testing and counseling for source patients required under this
chapter. If an exposed individual is a volunteer or a student, then
the health care provider or first responder that assigned a task to
the volunteer or student may pay for the costs of testing and
counseling as if that volunteer or student were an employee. If an
exposed individual, who is not an employee of a health facility or
of another health care provider, chooses to obtain postexposure
evaluation or followup counseling, or both, or treatment, he or she
shall be financially responsible for the costs thereof and shall be
responsible for the costs of the testing and counseling for the source
patient.

(g)   begin delete Nothing in this end delete begin insert This end insert section begin delete authorizes end delete begin insert does not authorize end insert
the disclosure of the source patient’s identity.

(h)   begin delete Nothing in this end delete begin insert This end insert section begin delete shall end delete begin insert does not end insert authorize a health
care provider to draw blood or other body fluids except as
otherwise authorized by law.

(i)  The provisions of this section are cumulative only and shall
not preclude testing of source patients for a communicable disease,
as authorized by any other begin delete provision of end delete law.

(j)  Except as otherwise provided under this section, all
confidentiality requirements regarding medical records that are
provided for under existing law apply to this section.

begin delete SEC. 345. end delete
begin insert SEC. 349. end insert   

Section 120393 of the Health and Safety Code is
amended to read:

120393.  

(a) The State Department of Public Health shall post
educational information, in accordance with the latest
recommendations of the federal Centers for Disease Control and
Prevention, regarding influenza disease and the availability of
influenza vaccinations on the department’s Internet Web site. It is
the intent of the Legislature to increase the average number of
Californians who receive an influenza vaccination.

(b) The educational information posted on the department’s
Internet Web site pursuant to subdivision (a) shall include, but not
be limited to, all of the following:

(1) The health benefits of an influenza vaccination.

(2) That the influenza vaccination may be a covered benefit for
those with health insurance coverage.

(3) That influenza vaccinations may be available for a minimal
fee to those individuals who do not have health insurance coverage.

(4) The locations where free or low-cost vaccinations are
available.

(c) The department may use additional available resources to
educate the public about the information described in subdivision
(b), including public service announcements, media events, public
outreach to individuals and groups who are susceptible to influenza,
and any other preventive and wellness education efforts
recommended by public health officials.

begin delete SEC. 346. end delete
begin insert SEC. 350. end insert   

Section 121025 of the Health and Safety Code is
amended to read:

121025.  

(a) Public health records relating to human
immunodeficiency virus (HIV) or acquired immunodeficiency
syndrome (AIDS), containing personally identifying information,
that were developed or acquired by a state or local public health
agency, or an agent of that agency, are confidential and shall not
be disclosed, except as otherwise provided by law for public health
purposes or pursuant to a written authorization by the person who
is the subject of the record or by his or her guardian or conservator.

(b) In accordance with subdivision (g) of Section 121022, a
state or local public health agency, or an agent of that agency, may
disclose personally identifying information in public health records,
as described in subdivision (a), to other local, state, or federal
public health agencies or to corroborating medical researchers,
when the confidential information is necessary to carry out the
duties of the agency or researcher in the investigation, control, or
surveillance of disease, as determined by the state or local public
health agency.

(c) Any disclosures authorized by subdivision (a), (b), or this
subdivision shall include only the information necessary for the
purpose of that disclosure and shall be made only upon the
agreement that the information will be kept confidential as
described in subdivision (a). Except as provided in paragraphs (1)
to (3), inclusive, or as otherwise provided by law, any disclosure
authorized by subdivision (a) or (b) shall not be made without
written authorization as described in subdivision (a). Any
unauthorized further disclosure shall be subject to the penalties
described in subdivision (e).

(1) Notwithstanding any other law, the following disclosures
are authorized for the purpose of enhancing the completeness of
reporting to the federal Centers for Disease Control and Prevention
(CDC) of HIV/AIDS and coinfection with tuberculosis, syphilis,
gonorrhea, chlamydia, hepatitis B, hepatitis C, and meningococcal
infection:

(A) The local public health agency HIV surveillance staff may
further disclose the information to the health care provider who
provides HIV care to the HIV-positive person who is the subject
of the record for the purpose of assisting in compliance with
subdivision (a) of Section 121022.

(B) Local public health agency tuberculosis control staff may
further disclose the information to state public health agency
tuberculosis control staff, who may further disclose the information,
without disclosing patient identifying information, to the CDC, to
the extent the information is requested by the CDC and permitted
by subdivision (b), for purposes of the investigation, control, or
surveillance of HIV and tuberculosis coinfections.

(C) Local public health agency sexually transmitted disease
control staff may further disclose the information to state public
health agency sexually transmitted disease control staff, who may
further disclose the information, without disclosing patient
identifying information, to the CDC, to the extent it is requested
by the CDC and permitted by subdivision (b), for the purposes of
the investigation, control, or surveillance of HIV and syphilis,
gonorrhea, or chlamydia coinfection.

(D) For purposes of the investigation, control, or surveillance
of HIV and its coinfection with hepatitis B, hepatitis C, and
meningococcal infection, local public health agency communicable
disease staff may further disclose the information to state public
health agency staff, who may further disclose the information,
without disclosing patient identifying information, to the CDC to
the extent the information is requested by the CDC and permitted
by subdivision (b).

(2) Notwithstanding any other law, the following disclosures
are authorized for the purpose of facilitating appropriate HIV/AIDS
medical care and treatment:

(A) State public health agency HIV surveillance staff, AIDS
Drug Assistance Program staff, and care services staff may further
disclose the information to local public health agency staff, who
may further disclose the information to the HIV-positive person
who is the subject of the record, or the health care provider who
provides his or her HIV care, for the purpose of proactively offering
and coordinating care and treatment services to him or her.

(B) AIDS Drug Assistance Program staff and care services staff
in the State Department of Public Health may further disclose the
information directly to the HIV-positive person who is the subject
of the record or the health care provider who provides his or her
HIV care, for the purpose of proactively offering and coordinating
care and treatment services to him or her.

(C) Local public health agency staff may further disclose
acquired or developed information to the HIV-positive person who
is the subject of the record or the health care provider who provides
his or her HIV care for the purpose of proactively offering and
coordinating care and treatment services to him or her.

(3) Notwithstanding any other law, for the purpose of facilitating
appropriate medical care and treatment of persons coinfected with
HIV and tuberculosis, syphilis, gonorrhea, chlamydia, hepatitis B,
hepatitis C, or meningococcal infection, local public health agency
sexually transmitted disease control, communicable disease control,
and tuberculosis control staff may further disclose the information
to state or local public health agency sexually transmitted disease
control, communicable disease control, and tuberculosis control
staff, the HIV-positive person who is the subject of the record, or
the health care provider who provides his or her HIV, tuberculosis,
hepatitis B, hepatitis C, meningococcal infection, and sexually
transmitted disease care.

(4) For the purposes of paragraphs (2) and (3), “staff” does not
include nongovernmental entities, but shall include state and local
contracted employees who work within state and local public health
departments.

(d) A confidential public health record, as defined in subdivision
(c) of Section 121035, shall not be disclosed, discoverable, or
compelled to be produced in any civil, criminal, administrative,
or other proceeding.

(e) (1) A person who negligently discloses the content of a
confidential public health record, as defined in subdivision (c) of
Section 121035, to a third party, except pursuant to a written
authorization, as described in subdivision (a), or as otherwise
authorized by law, shall be subject to a civil penalty in an amount
not to exceed five thousand dollars ($5,000), plus court costs, as
determined by the court. The penalty and costs shall be paid to the
person whose record was disclosed.

(2) A person who willfully or maliciously discloses the content
of any confidential public health record, as defined in subdivision
(c) of Section 121035, to a third party, except pursuant to a written
authorization, or as otherwise authorized by law, shall be subject
to a civil penalty in an amount not less than five thousand dollars
($5,000) and not more than twenty-five thousand dollars ($25,000),
plus court costs, as determined by the court. The penalty and costs
shall be paid to the person whose confidential public health record
was disclosed.

(3) A person who willfully, maliciously, or negligently discloses
the content of a confidential public health record, as defined in
subdivision (c) of Section 121035, to a third party, except pursuant
to a written authorization, or as otherwise authorized by law, that
results in economic, bodily, or psychological harm to the person
whose confidential public health record was disclosed, is guilty
of a misdemeanor, punishable by imprisonment in a county jail
for a period not to exceed one year, or a fine of not to exceed
twenty-five thousand dollars ($25,000), or both, plus court costs,
as determined by the court. The penalty and costs shall be paid to
the person whose confidential public health record was disclosed.

(4) A person who commits an act described in paragraph (1),
(2), or (3) is liable to the person whose confidential public health
record was disclosed for all actual damages for economic, bodily,
or psychological harm that is a proximate result of the act.

(5) Each violation of this section is a separate and actionable
offense.

(6) This section does not limit or expand the right of an injured
person whose confidential public health record was disclosed to
recover damages under any other applicable law.

(f) In the event that a confidential public health record, as
defined in subdivision (c) of Section 121035, is disclosed, the
information shall not be used to determine employability or
insurability of a person.

begin delete SEC. 347. end delete
begin insert SEC. 351. end insert   

Section 123223 of the Health and Safety Code is
amended to read:

123223.  

(a)  The Children’s Medical Services Rebate Fund is
hereby created as a special fund in the State Treasury.

(b)  All rebates for the delivery of health care, medical supplies,
pharmaceuticals, including blood replacement products, and
equipment for clients enrolled in the state funded Genetically
Handicapped Persons Program, Chapter 2 (commencing with
Section 125125) of Part 5, and the California Children’s Services
Program, Article 5 (commencing with Section 123800) of Chapter
3 of Part 2, and, notwithstanding Section 16305.7 of the
Government Code, interest earned on these moneys, shall be
deposited in the Children’s Medical Services Rebate Fund
exclusively to cover costs related to services, and the administration
of services, provided through the Genetically Handicapped Persons
Program and California Children’s Services Program.

(c)  Notwithstanding Section 13340 of the Government Code,
moneys in the Children’s Medical Services Rebate Fund are
continuously appropriated without regard to fiscal year to the State
Department of Health Care Services and available for expenditure
for those purposes specified under this section.

begin delete SEC. 348. end delete
begin insert SEC. 352. end insert   

Section 124995 of the Health and Safety Code is
amended to read:

124995.  

The following programs shall comply with the
regulations established pursuant to the Hereditary Disorders Act,
as defined in Section 27:

(a)  The California Children’s Services Program under Article
5 (commencing with Section 123800) of Chapter 3 of Part 2.

(b)  Prenatal testing programs for newborns under Sections
125050 to 125065, inclusive.

(c)  Medical testing programs for newborns under the Maternal
and Child Health Program Act, as defined in Section 27.

(d)  Programs of the genetic disease unit under Section 125000.

(e)  Child health and disability prevention programs under
Article 6 (commencing with Section 124025) of Chapter 3 of Part
2 and Section 120475.

(f)  Genetically Handicapped Persons Program under Article 1
(commencing with Section 125125) of Chapter 2.

(g)  Medi-Cal Benefits Program under Article 4 (commencing
with Section 14131) of Chapter 7 of Part 3 of Division 9 of the
Welfare and Institutions Code.

begin delete SEC. 349. end delete
begin insert SEC. 353. end insert   

Section 125125 of the Health and Safety Code is
amended to read:

125125.  

This article shall be known and may be cited as the
Holden-Moscone-Garamendi Genetically Handicapped Persons
Program.

begin delete SEC. 350. end delete
begin insert SEC. 354. end insert   

Section 125130 of the Health and Safety Code is
amended to read:

125130.  

(a) The Director of Health Care Services shall
establish and administer a program for the medical care of persons
with genetically handicapping conditions, including cystic fibrosis,
hemophilia, sickle cell disease, Huntington’s disease, Friedreich’s
Ataxia, Joseph’s disease, Von Hippel-Landau syndrome, and the
following hereditary metabolic disorders: phenylketonuria,
homocystinuria, branched chain amino acidurias, disorders of
propionate and methylmalonate metabolism, urea cycle disorders,
hereditary orotic aciduria, Wilson’s Disease, galactosemia,
disorders of lactate and pyruvate metabolism, tyrosinemia,
hyperornithinemia, and other genetic organic acidemias that require
specialized treatment or service available from only a limited
number of program-approved sources.

(b) The program shall also provide access to social support
services, that may help ameliorate the physical, psychological, and
economic problems attendant to genetically handicapping
conditions, in order that the genetically handicapped person may
function at an optimal level commensurate with the degree of
impairment.

(c) The medical and social support services may be obtained
through physicians and surgeons Genetically Handicapped Persons
Program specialized centers, and other providers that qualify
pursuant to the regulations of the department to provide the
services. “Medical care,” as used in this section, is limited to
noncustodial medical and support services.

(d) The director shall adopt regulations that are necessary for
the implementation of this article.

begin delete SEC. 351. end delete
begin insert SEC. 355. end insert   

Section 125160 of the Health and Safety Code is
amended to read:

125160.  

The department shall receive and expend all funds
made available to it by the federal government, the state, its
political subdivisions or from other sources for the purposes of
this article. Payment for the Genetically Handicapped Persons
Program shall be made by the department.

begin delete SEC. 352. end delete
begin insert SEC. 356. end insert   

Section 125175 of the Health and Safety Code is
amended to read:

125175.  

The health care benefits and services specified in this
article, to the extent that the benefits and services are neither
provided under any other federal or state law nor provided nor
available under other contractual or legal entitlements of the person,
shall be provided to any patient who is a resident of this state and
is made eligible by this article. After the patient has utilized the
contractual or legal entitlements, the payment liability under
Section 125166 shall then be applied to the remaining cost of
genetically handicapped persons’ services.

begin delete SEC. 353. end delete
begin insert SEC. 357. end insert   

Section 125190 of the Health and Safety Code is
amended to read:

125190.  

Notwithstanding any other law, the department is
considered to be the purchaser, but not the dispenser or distributor,
of blood factor products under the Genetically Handicapped
Persons Program. The department may receive manufacturers’
discounts, rebates, or refunds based on the quantities purchased
under the Genetically Handicapped Persons Program. The
discounts, rebates, or refunds received pursuant to this section
shall be separate from any agreements for discounts, rebates, or
refunds negotiated pursuant to Section 14105.3 of the Welfare and
Institutions Code or any other program.

begin delete SEC. 354. end delete
begin insert SEC. 358. end insert   

Section 125191 of the Health and Safety Code is
amended to read:

125191.  

(a) The department may enter into contracts with one
or more manufacturers on a negotiated or bid basis as the purchaser,
but not the dispenser or distributor, of factor replacement therapies
under the Genetically Handicapped Persons Program for the
purpose of enabling the department to obtain the full range of
available therapies and services required for clients with
hematological disorders at the most favorable price and to enable
the department, notwithstanding any other state law, to obtain
discounts, rebates, or refunds from the manufacturers based upon
the large quantities purchased under the program. This subdivision
does not interfere with the usual and customary distribution
practices of factor replacement therapies. In order to achieve
maximum cost savings, the Legislature hereby determines that an
expedited contract process under this section is necessary.
Therefore, a contract under this subdivision may be entered into
on a negotiated basis and is exempt from Chapter 2 (commencing
with Section 10290) of Part 2 of Division 2 of the Public Contract
Code and Chapter 6 (commencing with Section 14825) of Part 5.5
of Division 3 of Title 2 of the Government Code. Contracts entered
pursuant to this subdivision shall be confidential and shall be
exempt from disclosure under the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of
Title 1 of the Government Code).

(b) (1) Factor replacement therapy manufacturers shall calculate
and pay interest on late or unpaid rebates. The interest does not
apply to any prior period adjustments of unit rebate amounts or
department utilization adjustments. Manufacturers shall calculate
and pay interest on late or unpaid rebates for quarters that begin
on or after the effective date of the act that added this subdivision.

(2) Following the final resolution of any dispute regarding the
amount of a rebate, any underpayment by a manufacturer shall be
paid with interest calculated pursuant to paragraph (4), and any
overpayment, together with interest at the rate calculated pursuant
to paragraph (4), shall be credited by the department against future
rebates due.

(3) Interest pursuant to paragraphs (1) and (2) shall begin
accruing 38 calendar days from the date of mailing the invoice,
including supporting utilization data sent to the manufacturer.
Interest shall continue to accrue until the date of mailing of the
manufacturer’s payment.

(4) Interest rates and calculations pursuant to paragraphs (1)
and (2) shall be identical to interest rates and calculations set forth
in the federal Centers for Medicare and Medicaid Services’
Medicaid Drug Rebate Program Releases or regulations.

(c) If the department has not received a rebate payment,
including interest, within 180 days of the date of mailing of the
invoice, including supporting utilization data, a factor replacement
therapy manufacturer’s contract with the department shall be
deemed to be in default and the contract may be terminated in
accordance with the terms of the contract. This subdivision does
not limit the department’s right to otherwise terminate a contract
in accordance with the terms of that contract.

(d) The department may enter into contracts on a bid or
negotiated basis with manufacturers, distributors, dispensers, or
suppliers of pharmaceuticals, appliances, durable medical
equipment, medical supplies, and other product-type health care
services and laboratories for the purpose of obtaining the most
favorable prices to the state and to assure adequate access and
quality of the product or service. In order to achieve maximum
cost savings, the Legislature hereby determines that an expedited
contract process under this subdivision is necessary. Therefore,
contracts under this subdivision may be entered into on a negotiated
basis and shall be exempt from Chapter 2 (commencing with
Section 10290) of Part 2 of Division 2 of the Public Contract Code
and Chapter 6 (commencing with Section 14825) of Part 5.5 of
Division 3 of Title 2 of the Government Code.

(e) The department may contract with one or more
manufacturers of each multisource prescribed product or supplier
of outpatient clinical laboratory services on a bid or negotiated
basis. Contracts for outpatient clinical laboratory services shall
require that the contractor be a clinical laboratory licensed or
certified by the State of California or certified under Section 263a
of Title 42 of the United States Code. This subdivision shall not
be construed as prohibiting the department from contracting with
less than all manufacturers or clinical laboratories, including just
one manufacturer or clinical laboratory, on a bid or negotiated
basis.

begin delete SEC. 355. end delete
begin insert SEC. 359. end insert   

The heading of Part 8 (commencing with Section
125700) of Division 106 of the Health and Safety Code is amended
to read:

 

PART 8.  ADULT HEALTH

 

begin delete SEC. 356. end delete
begin insert SEC. 360. end insert   

Chapter 4 (commencing with Section 128200) of
Part 3 of Division 107 of the Health and Safety Code, as added by
Section 9 of Chapter 415 of the Statutes of 1995, is repealed.

begin delete SEC. 357. end delete
begin insert SEC. 361. end insert   

The heading of Article 4 (commencing with Section
128454) of Chapter 5 of Part 3 of Division 107 of the Health and
Safety Code, as added by Section 5 of Chapter 437 of the Statutes
of 2003, is amended and renumbered to read:

 

Article 3.5.  Licensed Mental Health Service Provider Education
Program

 

begin delete SEC. 358. end delete
begin insert SEC. 362. end insert   

Section 130060 of the Health and Safety Code is
amended to read:

130060.  

(a) (1) After January 1, 2008, any general acute care
hospital building that is determined to be a potential risk of collapse
or pose significant loss of life shall only be used for nonacute care
hospital purposes, unless an extension of this deadline has been
granted and either of the following occurs before the end of the
extension:

(A) A replacement building has been constructed and a
certificate of occupancy has been granted by the office for the
replacement building.

(B) A retrofit has been performed on the building and a
construction final has been obtained by the office.

(2) An extension of the deadline may be granted by the office
upon a demonstration by the owner that compliance will result in
a loss of health care capacity that may not be provided by other
general acute care hospitals within a reasonable proximity. In its
request for an extension of the deadline, a hospital shall state why
the hospital is unable to comply with the January 1, 2008, deadline
requirement.

(3) Prior to granting an extension of the January 1, 2008,
deadline pursuant to this section, the office shall do all of the
following:

(A) Provide public notice of a hospital’s request for an extension
of the deadline. The notice, at a minimum, shall be posted on the
office’s Internet Web site, and shall include the facility’s name
and identification number, the status of the request, and the
beginning and ending dates of the comment period, and shall advise
the public of the opportunity to submit public comments pursuant
to subparagraph (C). The office shall also provide notice of all
requests for the deadline extension directly to interested parties
upon request of the interested parties.

(B) Provide copies of extension requests to interested parties
within 10 working days to allow interested parties to review and
provide comment within the 45-day comment period. The copies
shall include those records that are available to the public pursuant
to the California Public Records Act (Chapter 3.5 (commencing
with Section 6250) of Division 7 of Title 1 of the Government
Code).

(C) Allow the public to submit written comments on the
extension proposal for a period of not less than 45 days from the
date of the public notice.

(b) (1) It is the intent of the Legislature, in enacting this
subdivision, to facilitate the process of having more hospital
buildings in substantial compliance with this chapter and to take
nonconforming general acute care hospital inpatient buildings out
of service more quickly.

(2) The functional contiguous grouping of hospital buildings of
a general acute care hospital, each of which provides, as the
primary source, one or more of the hospital’s eight basic services
as specified in subdivision (a) of Section 1250, may receive a
five-year extension of the January 1, 2008, deadline specified in
subdivision (a) of this section pursuant to this subdivision for both
structural and nonstructural requirements. A functional contiguous
grouping refers to buildings containing one or more basic hospital
services that are either attached or connected in a way that is
acceptable to the State Department of Health Care Services. These
buildings may be either on the existing site or a new site.

(3) To receive the five-year extension, a single building
containing all of the basic services or at least one building within
the contiguous grouping of hospital buildings shall have obtained
a building permit prior to 1973 and this building shall be evaluated
and classified as a nonconforming, Structural Performance
Category-1 (SPC-1) building. The classification shall be submitted
to and accepted by the Office of Statewide Health Planning and
Development. The identified hospital building is exempt from the
requirement in subdivision (a) until January 1, 2013, if the hospital
agrees that the basic service or services that were provided in that
building shall be provided, on or before January 1, 2013, as
follows:

(A) Moved into an existing conforming Structural Performance
Category-3 (SPC-3), Structural Performance Category-4 (SPC-4),
or Structural Performance Category-5 (SPC-5) and Non-Structural
Performance Category-4 (NPC-4) or Non-Structural Performance
Category-5 (NPC-5) building.

(B) Relocated to a newly built compliant SPC-5 and NPC-4 or
NPC-5 building.

(C) Continued in the building if the building is retrofitted to a
SPC-5 and NPC-4 or NPC-5 building.

(4) A five-year extension is also provided to a post-1973
building if the hospital owner informs the Office of Statewide
Health Planning and Development that the building is classified
as SPC-1, SPC-3, or SPC-4 and will be closed to general acute
care inpatient service use by January 1, 2013. The basic services
in the building shall be relocated into a SPC-5 and NPC-4 or NPC-5
building by January 1, 2013.

(5) SPC-1 buildings, other than the building identified in
paragraph (3) or (4), in the contiguous grouping of hospital
buildings is also exempt from the requirement in subdivision (a)
until January 1, 2013. However, on or before January 1, 2013, at
a minimum, each of these buildings shall be retrofitted to a SPC-2
and NPC-3 building, or no longer be used for general acute care
hospital inpatient services.

(c) On or before March 1, 2001, the office shall establish a
schedule of interim work progress deadlines that hospitals shall
be required to meet to be eligible for the extension specified in
subdivision (b). To receive this extension, the hospital building or
buildings shall meet the year 2002 nonstructural requirements.

(d) A hospital building that is eligible for an extension pursuant
to this section shall meet the January 1, 2030, nonstructural and
structural deadline requirements if the building is to be used for
general acute care inpatient services after January 1, 2030.

(e) Upon compliance with subdivision (b), the hospital shall be
issued a written notice of compliance by the office. The office
shall send a written notice of violation to hospital owners that fail
to comply with this section. The office shall make copies of these
notices available on its Internet Web site.

(f) (1) A hospital that has received an extension of the January
1, 2008, deadline pursuant to subdivision (a) or (b) may request
an additional extension of up to two years for a hospital building
that it owns or operates and that meets the criteria specified in
paragraph (2), (3), or (5).

(2) The office may grant the additional extension if the hospital
building subject to the extension meets all of the following criteria:

(A) The hospital building is under construction at the time of
the request for extension under this subdivision and the purpose
of the construction is to meet the requirements of subdivision (a)
to allow the use of the building as a general acute care hospital
building after the extension deadline granted by the office pursuant
to subdivision (a) or (b).

(B) The hospital building plans were submitted to the office
and were deemed ready for review by the office at least four years
prior to the applicable deadline for the building. The hospital shall
indicate, upon submission of its plans, the SPC-1 building or
buildings that will be retrofitted or replaced to meet the
requirements of this section as a result of the project.

(C) The hospital received a building permit for the construction
described in subparagraph (A) at least two years prior to the
applicable deadline for the building.

(D) The hospital submitted a construction timeline at least two
years prior to the applicable deadline for the building demonstrating
the hospital’s intent to meet the applicable deadline. The timeline
shall include all of the following:

(i) The projected construction start date.

(ii) The projected construction completion date.

(iii) Identification of the contractor.

(E) The hospital is making reasonable progress toward meeting
the timeline set forth in subparagraph (D), but factors beyond the
hospital’s control make it impossible for the hospital to meet the
deadline.

(3) The office may grant the additional extension if the hospital
building subject to the extension meets all of the following criteria:

(A) The hospital building is owned by a health care district that
has, as owner, received the extension of the January 1, 2008,
deadline, but the hospital is operated by an unaffiliated third-party
lessee pursuant to a facility lease that extends at least through
December 31, 2009. The district shall file a declaration with the
office with a request for an extension stating that, as of the date
of the filing, the district has lacked, and continues to lack,
unrestricted access to the subject hospital building for seismic
planning purposes during the term of the lease, and that the district
is under contract with the county to maintain hospital services
when the hospital comes under district control. The office shall
not grant the extension if an unaffiliated third-party lessee will
operate the hospital beyond December 31, 2010.

(B) The hospital building plans were submitted to the office
and were deemed ready for review by the office at least four years
prior to the applicable deadline for the building. The hospital shall
indicate, upon submission of its plans, the SPC-1 building or
buildings that will be retrofitted or replaced to meet the
requirements of this section as a result of the project.

(C) The hospital received a building permit for the construction
described in subparagraph (B) by December 31, 2011.

(D) The hospital submitted, by December 31, 2011, a
construction timeline for the building demonstrating the hospital’s
intent and ability to meet the deadline of December 31, 2014. The
timeline shall include all of the following:

(i) The projected construction start date.

(ii) The projected construction completion date.

(iii) Identification of the contractor.

(E) The hospital building is under construction at the time of
the request for the extension, the purpose of the construction is to
meet the requirements of subdivision (a) to allow the use of the
building as a general acute care hospital building after the extension
deadline granted by the office pursuant to subdivision (a) or (b),
and the hospital is making reasonable progress toward meeting
the timeline set forth in subparagraph (D).

(F) The hospital granted an extension pursuant to this paragraph
shall submit an additional status report to the office, equivalent to
that required by subdivision (c) of Section 130061, no later than
June 30, 2013.

(4) An extension granted pursuant to paragraph (3) is applicable
only to the health care district applicant and its affiliated hospital
while the hospital is operated by the district or an entity under the
control of the district.

(5) The office may grant the additional extension if the hospital
building subject to the extension meets all of the following criteria:

(A) The hospital owner submitted to the office, prior to June
30, 2009, a request for review using current computer modeling
utilized by the office and based upon software developed by the
Federal Emergency Management Agency (FEMA), referred to as
Hazards US, and the building was deemed SPC-1 after that review.

(B) The hospital building plans for the building are submitted
to the office and deemed ready for review by the office prior to
July 1, 2010. The hospital shall indicate, upon submission of its
plans, the SPC-1 building or buildings that shall be retrofitted or
replaced to meet the requirements of this section as a result of the
project.

(C) The hospital receives a building permit from the office for
the construction described in subparagraph (B) prior to January 1,
2012.

(D) The hospital submits, prior to January 1, 2012, a
construction timeline for the building demonstrating the hospital’s
intent and ability to meet the applicable deadline. The timeline
shall include all of the following:

(i) The projected construction start date.

(ii) The projected construction completion date.

(iii) Identification of the contractor.

(E) The hospital building is under construction at the time of
the request for the extension, the purpose of the construction is to
meet the requirements of subdivision (a) to allow the use of the
building as a general acute care hospital building after the extension
deadline granted by the office pursuant to subdivision (a) or (b),
and the hospital is making reasonable progress toward meeting
the timeline set forth in subparagraph (D).

(F) The hospital owner completes construction such that the
hospital meets all criteria to enable the office to issue a certificate
of occupancy by the applicable deadline for the building.

(6) A hospital located in the County of Sacramento, San Mateo,
or Santa Barbara or the City of San Jose that has received an
additional extension pursuant to paragraph (2) or (5) may request
an additional extension until September 1, 2015, to obtain either
a certificate of occupancy from the office for a replacement
building, or a construction final from the office for a building on
which a retrofit has been performed.

(7) A hospital denied an extension pursuant to this subdivision
may appeal the denial to the Hospital Building Safety Board.

(8) The office may revoke an extension granted pursuant to this
subdivision for any hospital building where the work of
construction is abandoned or suspended for a period of at least one
year, unless the hospital demonstrates in a public document that
the abandonment or suspension was caused by factors beyond its
control.

(g) (1) Notwithstanding subdivisions (a), (b), (c), and (f), and
Sections 130061.5 and 130064, a hospital that has received an
extension of the January 1, 2008, deadline pursuant to subdivision
(a) or (b) also may request an additional extension of up to seven
years for a hospital building that it owns or operates. The office
may grant the extension subject to the hospital meeting the
milestones set forth in paragraph (2).

(2) The hospital building subject to the extension shall meet all
of the following milestones, unless the hospital building is
reclassified as SPC-2 or higher as a result of its Hazards US score:

(A) The hospital owner submits to the office, no later than
September 30, 2012, a letter of intent stating whether it intends to
rebuild, replace, or retrofit the building, or remove all general acute
care beds and services from the building, and the amount of time
necessary to complete the construction.

(B) The hospital owner submits to the office, no later than
September 30, 2012, a schedule detailing why the requested
extension is necessary, and specifically how the hospital intends
to meet the requested deadline.

(C) The hospital owner submits to the office, no later than
September 30, 2012, an application ready for review seeking
structural reassessment of each of its SPC-1 buildings using current
computer modeling based upon software developed by FEMA,
referred to as Hazards US.

(D) The hospital owner submits to the office, no later than
January 1, 2015, plans ready for review consistent with the letter
of intent submitted pursuant to subparagraph (A) and the schedule
submitted pursuant to subparagraph (B).

(E) The hospital owner submits a financial report to the office
at the time the plans are submitted pursuant to subparagraph (D).
The report shall demonstrate the hospital owner’s financial capacity
to implement the construction plans submitted pursuant to
subparagraph (D).

(F) The hospital owner receives a building permit consistent
with the letter of intent submitted pursuant to subparagraph (A)
and the schedule submitted pursuant to subparagraph (B), no later
than July 1, 2018.

(3) To evaluate public safety and determine whether to grant
an extension of the deadline, the office shall consider the structural
integrity of the hospital’s SPC-1 buildings based on its Hazards
US scores, community access to essential hospital services, and
the hospital owner’s financial capacity to meet the deadline as
determined by either a bond rating of BBB or below or the financial
report on the hospital owner’s financial capacity submitted pursuant
to subparagraph (E) of paragraph (2). The criteria contained in this
paragraph shall be considered by the office in its determination of
the length of an extension or whether an extension should be
granted.

(4) The extension or subsequent adjustments granted pursuant
to this subdivision may not exceed the amount of time that is
reasonably necessary to complete the construction specified in
paragraph (2).

(5) If the circumstances underlying the request for extension
submitted to the office pursuant to paragraph (2) change, the
hospital owner shall notify the office as soon as practicable, but
in no event later than six months after the hospital owner
discovered the change of circumstances. The office may adjust the
length of the extension granted pursuant to paragraphs (2) and (3)
as necessary, but in no event longer than the period specified in
paragraph (1).

(6) A hospital denied an extension pursuant to this subdivision
may appeal the denial to the Hospital Building Safety Board.

(7) The office may revoke an extension granted pursuant to this
subdivision for any hospital building when it is determined that
any information submitted pursuant to this section was falsified,
or if the hospital failed to meet a milestone set forth in paragraph
(2), or when the work of construction is abandoned or suspended
for a period of at least six months, unless the hospital demonstrates
in a publicly available document that the abandonment or
suspension was caused by factors beyond its control.

(8) Regulatory submissions made by the office to the California
Building Standards Commission to implement this section shall
be deemed to be emergency regulations and shall be adopted as
emergency regulations.

(9) The hospital owner that applies for an extension pursuant
to this subdivision shall pay the office an additional fee, to be
determined by the office, sufficient to cover the additional
reasonable costs incurred by the office for maintaining the
additional reporting requirements established under this section,
including, but not limited to, the costs of reviewing and verifying
the extension documentation submitted pursuant to this subdivision.
This additional fee shall not include any cost for review of the
plans or other duties related to receiving a building or occupancy
permit.

(10) This subdivision shall become operative on the date that
the State Department of Health Care Services receives all necessary
federal approvals for a 2011-12 fiscal year hospital quality
assurance fee program that includes three hundred twenty million
dollars ($320,000,000) in fee revenue to pay for health care
coverage for children, which is made available as a result of the
legislative enactment of a 2011-12 fiscal year hospital quality
assurance fee program.

begin delete SEC. 359. end delete
begin insert SEC. 363. end insert   

Section 136000 of the Health and Safety Code is
amended to read:

136000.  

(a) (1) The Office of Patient Advocate is hereby
established within the California Health and Human Services
Agency, to provide assistance to, and advocate on behalf of, health
care consumers. The goal of the office shall be to coordinate
amongst, provide assistance to, and collect data from, all of the
state agency consumer assistance or patient assistance programs
and call centers, to better enable health care consumers to access
the health care services to which they are eligible under the law,
including, but not limited to, commercial and Exchange coverage,
Medi-Cal, Medicare, and federal veterans health benefits.
Notwithstanding any provision of this division, each regulator and
health coverage program shall retain its respective authority,
including its authority to resolve complaints, grievances, and
appeals.

(2) The office shall be headed by a patient advocate appointed
by the Governor. The patient advocate shall serve at the pleasure
of the Governor.

(b) (1) The duties of the office shall include, but not be limited
to, all of the following:

(A) Coordinate and work in consultation with state agency and
local, nongovernment health care consumer or patient assistance
programs and health care ombudsperson programs.

(B) Produce a baseline review and annual report to be made
publically available on the office’s Internet Web site by July 1,
2015, and annually thereafter, of health care consumer or patient
assistance help centers, call centers, ombudsperson, or other
assistance centers operated by the Department of Managed Health
Care, the State Department of Health Care Services, the Department
of Insurance, and the Exchange, that includes, at a minimum, all
of the following:

(i) The types of calls received and the number of calls.

(ii) The call center’s role with regard to each type of call,
question, complaint, or grievance.

(iii) The call center’s protocol for responding to requests for
assistance from health care consumers, including any performance
standards.

(iv) The protocol for referring or transferring calls outside the
jurisdiction of the call center.

(v) The call center’s methodology of tracking calls, complaints,
grievances, or inquiries.

(C) (i) Collect, track, and analyze data on problems and
complaints by, and questions from, consumers about health care
coverage for the purpose of providing public information about
problems faced and information needed by consumers in obtaining
coverage and care. The data collected shall include demographic
data, source of coverage, regulator, type of problem or issue or
comparable types of problems or issues, and resolution of
complaints, including timeliness of resolution. Notwithstanding
Section 10231.5 of the Government Code, the office shall submit
a report by July 1, 2015, and annually thereafter to the Legislature.
The report shall be submitted in compliance with Section 9795 of
the Government Code. The format may be modified annually as
needed based upon comments from the Legislature and
stakeholders.

(ii) For the purpose of publically reporting information as
required in subparagraph (B) and this subparagraph about the
problems faced by consumers in obtaining care and coverage, the
office shall analyze data on consumer complaints and grievances
resolved by the agencies listed in subdivision (c), including
demographic data, source of coverage, insurer or plan, resolution
of complaints, and other information intended to improve health
care and coverage for consumers.

(D) Make recommendations, in consultation with stakeholders,
for improvement or standardization of the health consumer
assistance functions, referral process, and data collection and
analysis.

(E) Develop model protocols, in consultation with consumer
assistance call centers and stakeholders, that may be used by call
centers for responding to and referring calls that are outside the
jurisdiction of the call center, program, or regulator.

(F) Compile an annual publication, to be made publically
available on the office’s Internet Web site, of a quality of care
report card, including, but not limited, to health care service plans,
preferred provider organizations, and medical groups.

(G) Make referrals to the appropriate state agency, whether
further or additional actions may be appropriate, to protect the
interests of consumers or patients.

(H) Assist in the development of educational and informational
guides for consumers and patients describing their rights and
responsibilities and informing them on effective ways to exercise
their rights to secure and access health care coverage, produced
by the Department of Managed Health Care, the State Department
of Health Care Services, the Exchange, and the Department of
Insurance, and to endeavor to make those materials easy to read
and understand and available in all threshold languages, using an
appropriate literacy level and in a culturally competent manner.

(I) Coordinate with other state and federal agencies engaged in
outreach and education regarding the implementation of federal
health care reform, and to assist in these duties, may provide or
assist in the provision of grants to community-based consumer
assistance organizations for these purposes.

(J) If appropriate, refer consumers to the appropriate regulator
of their health coverage programs for filing complaints or
grievances.

(2) The office shall employ necessary staff. The office may
employ or contract with experts when necessary to carry out the
functions of the office. The patient advocate shall make an annual
budget request for the office that shall be identified in the annual
Budget Act.

(3) The patient advocate shall annually issue a public report on
the activities of the office, and shall appear before the appropriate
policy and fiscal committees of the Senate and Assembly, if
requested, to report and make recommendations on the activities
of the office.

(4) The office shall adopt standards for the organizations with
which it contracts pursuant to this section to ensure compliance
with the privacy and confidentiality laws of this state, including,
but not limited to, the Information Practices Act of 1977 (Chapter
1 (commencing with Section 1798) of Title 1.8 of Part 4 of
Division 3 of the Civil Code). The office shall conduct privacy
trainings as necessary, and regularly verify that the organizations
have measures in place to ensure compliance with this provision.

(c) The Department of Managed Health Care, the State
Department of Health Care Services, the Department of Insurance,
the Exchange, and any other public health coverage programs shall
provide to the office data concerning call centers to meet the
reporting requirements in subparagraph (B) of paragraph (1) of
subdivision (b) and consumer complaints and grievances to meet
the reporting requirements in clause (i) of subparagraph (C) of
paragraph (1) of subdivision (b).

(d) For purposes of this section, the following definitions apply:

(1) “Consumer” or “individual” includes the individual or his
or her parent, guardian, conservator, or authorized representative.

(2) “Exchange” means the California Health Benefit Exchange
established pursuant to Title 22 (commencing with Section 100500)
of the Government Code.

(3) “Health care” includes services provided by any of the health
care coverage programs.

(4) “Health care service plan” has the same meaning as that set
forth in subdivision (f) of Section 1345. Health care service plan
includes “specialized health care service plans,” including
behavioral health plans.

(5) “Health coverage program” includes the Medi-Cal program,
Healthy Families Program, tax subsidies and premium credits
under the Exchange, the Basic Health Program, if enacted, county
health coverage programs, and the Access for Infants and Mothers
Program.

(6) “Health insurance” has the same meaning as set forth in
Section 106 of the Insurance Code.

(7) “Health insurer” means an insurer that issues policies of
health insurance.

(8) “Office” means the Office of Patient Advocate.

(9) “Threshold languages” has the same meaning as for
Medi-Cal managed care.

begin delete SEC. 360. end delete
begin insert SEC. 364. end insert   

Section 926.1 of the Insurance Code is amended to
read:

926.1.  

As used in this article, the following terms shall have
the following meanings:

(a) “Area median income” (AMI) means either of the following:

(1) The median family income for the Metropolitan Statistical
Area (MSA), if a person or geography is located in an MSA, or
for the metropolitan division, if a person or geography is located
in an MSA that has been subdivided into metropolitan divisions.

(2) The statewide nonmetropolitan median family income, if a
person or geography is located outside an MSA.

(b) “Community development investment” means an investment
where all or a portion of the investment has as its primary purpose
community development for, or that directly benefits, California
low- or moderate-income individuals, families, or communities.
“Community development investment” includes, but is not limited
to, investments in California in the following:

(1) Affordable housing, including multifamily rental and
ownership housing, for low- or moderate-income individuals or
families.

(2) Community facilities or community services providers
(including providers of education, health, or social services)
directly benefiting low- or moderate-income individuals, families,
or communities.

(3) Economic development that demonstrates benefits, including,
but not limited to, job creation, retention, or improvement, or
provision of needed capital, to low- or moderate-income
individuals, families, or communities, including urban or rural
communities, or businesses or nonprofit community service
organizations that serve these communities.

(4) Activities that revitalize or stabilize low- or moderate-income
communities.

(5) Investments in or through California Organized Investment
Network (COIN)-certified community development financial
institutions (CDFIs) and investments made pursuant to the
requirements of federal, state, or local community development
investment programs or community development investment tax
incentive programs, including green investments, if these
investments directly benefit low- or moderate-income individuals,
families, and communities and are consistent with this article.

(6) Community development infrastructure investments.

(7) Investments in a commercial property or properties located
in low- or moderate-income geographical areas and are consistent
with this article.

(c) “Community development infrastructure” means California
public debt (including all debt issued by the State of California or
a California state or local government agency) where all or a
portion of the debt has as its primary purpose community
development for, or that directly benefits, low- or moderate-income
communities and is consistent with subdivision (b).

(d) “Geography” means a census tract delineated by the United
States Bureau of the Census in the most recent decennial census.

(e) “Green investments” means investments that emphasize
renewable energy projects, economic development, and affordable
housing focused on infill sites so as to reduce the degree of
automobile dependency and promote the use and reuse of existing
urbanized lands supplied with infrastructure for the purpose of
accommodating new growth and jobs. “Green investments” also
means investments that can help communities grow through new
capital investment in the maintenance and rehabilitation of existing
infrastructure so that the reuse and reinvention of city centers and
existing transportation corridors and community space, including
projects offering energy efficiency improvements and renewable
energy generation, including, but not limited to, solar and wind
power, mixed-use development, affordable housing opportunities,
multimodal transportation systems, and transit-oriented
development, can advance economic development, jobs, and
housing.

(f) “High-impact investments” means investments that are
innovative, responsive to community needs, not routinely provided
by insurers, or have a high degree of positive impact on the
economic welfare of low- or moderate-income individuals,
families, or communities in urban or rural areas of California.

(g) “Insurer” means an admitted insurer as defined in Section
24, including the State Compensation Insurance Fund, or a
domestic fraternal benefit society as defined in Section 10990.

(h) “Investment” means a lawful equity or debt investment, or
loan, or deposit obligation, or other investment or investment
transaction allowed by the Insurance Code.

(i) “Low-income” means an individual income that is less than
50 percent of the AMI, or a median family income that is less than
50 percent of the AMI in the case of a geographical area.

(j) “MSA” means a metropolitan statistical area as defined by
the Director of the Office of Management and Budget.

(k) “Moderate-income” means an individual income that is at
least 50 percent but less than 80 percent of the AMI, or a median
family income that is at least 50 percent but less than 80 percent
of the AMI in the case of a geographical area.

(l) “Nonmetropolitan area” means any area that is not located
in an MSA.

begin delete SEC. 361. end delete
begin insert SEC. 365. end insert   

Section 926.2 of the Insurance Code is amended to
read:

926.2.  

(a) (1) Each admitted insurer with annual premiums
written in California equal to or in excess of one hundred million
dollars ($100,000,000) for any reporting year shall provide
information to the commissioner on all of its community
development investments, community development infrastructure
investments, and green investments in California. This information
shall be reported by July 1, 2016, on investments made or held
during the calendar years 2013, 2014, and 2015 and list, if
applicable, investments that are high-impact, green, or rural. The
information reported by insurers may include investments both
held and originated, the percentage of any investment that qualifies,
and why an investment qualifies. This information shall be
provided as part of the required filing pursuant to Section 900 or
11131, or through a data call, or by other means as determined by
the commissioner. The California Organized Investment Network
(COIN) shall provide insurers with information on why
investments, if any, were found not to be qualified by the
commissioner.

(2) This subdivision does not preclude an insurer that is a
member of an insurance holding company system, as defined in
Article 4.7 (commencing with Section 1215) of Chapter 2, from
complying with paragraph (1) through a single filing on behalf of
the entire group of affiliated companies, provided that the data so
filed accurately reflects the investments made by each of the
affiliates, and accurately attributes, by National Association of
Insurance Commissioners (NAIC) number or other identifier
required by the commissioner, which of the investments were made
by each affiliated company.

(3) This subdivision does not preclude an insurer from satisfying
the requirements of paragraph (1) through a filing made by a
community development financial institution, provided all of the
following conditions are met:

(A) The insurer has no less than a 10 percent ownership interest
in a COIN-certified community development financial institution.

(B) The insurer makes community development investments
and community development infrastructure investments in and
through the community development financial institution.

(C) The community development financial institution accurately
files the information required by paragraph (1) with the
commissioner on behalf of the insurer and accurately attributes,
by NAIC number or other identifier required by the commissioner,
which investments, including the dollar amounts of the investments,
were made by each insurer on whose behalf the community
development financial institution is reporting.

(b) The commissioner shall, by December 31, 2016, provide all
of the following:

(1) Information on the department’s Internet Web site on the
aggregate insurer community development investments and
community development infrastructure investments. Insurers that
make high-impact investments that are defined as innovative,
responsive to community needs, not routinely provided by insurers,
or have a high degree of positive impact on the economic welfare
of low- or moderate-income individuals, families, or communities
in urban or rural areas of California shall be identified.

(2) Information on the department’s Internet Web site on the
actions taken by COIN to analyze the data by insurers for the
purpose of creating and identifying potential investment
opportunities, including the development of investment opportunity
bulletins. This information shall state the efforts made by COIN
to market and expand outreach to communities.

(c) The department shall also, by December 31, 2016, provide
information on the department’s Internet Web site regarding the
aggregate amount of California public debt (including all debt
issued by the State of California or a California state or local
government agency) purchased by insurers as reported to the
department in their NAIC annual statement filing pursuant to
Section 900 or 11131.

(d) The department shall also, by December 31, 2016, provide
on its Internet Web site the aggregate amount of identified
California investments, as reported to the NAIC in the annual
statement filed pursuant to Section 900 or 11131.

(e) The department shall also by December 31, 2016, provide
information on its Internet Web site regarding the aggregate amount
of identified California insurer investments in green investments.

(f) This article shall remain in effect only until January 1, 2020,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2020, deletes or extends that date.

begin delete SEC. 362. end delete
begin insert SEC. 366. end insert   

Section 1215.8 of the Insurance Code is amended
to read:

1215.8.  

(a) All information, documents, and copies thereof
obtained by or disclosed to the commissioner or any other person
in the course of an examination or investigation made pursuant to
Sections 1215.4 and 1215.5, and all information reported pursuant
to Section 1215.4, shall be kept confidential, is not subject to
disclosure by the commissioner pursuant to the California Public
Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code), is not subject to
subpoena, and is not subject to discovery from the commissioner
or admissible into evidence in any private civil action if obtained
from the commissioner in any manner. This information shall not
be made public by the commissioner or any other person except
to insurance departments of other states without the prior written
consent of the insurance company to which it pertains, unless the
commissioner, after giving the insurer and its affiliates who would
be affected thereby notice and opportunity to be heard, determines
that the interests of policyholders, shareholders, or the public will
be served by the publication thereof, in which event he or she may
publish all or any part thereof in a manner as he or she may deem
appropriate.

(b) In order to assist in the performance of the commissioner’s
duties, the commissioner:

(1) May, upon request, be required to share documents,
materials, or other information, including the confidential and
privileged documents, materials, or information subject to
subdivision (a), with other state, federal, and international
regulatory agencies, with the National Association of Insurance
Commissioners (NAIC) and its affiliates and subsidiaries, and with
state, federal, and international law enforcement authorities,
including members of any supervisory college described in Section
1215.7; provided that the recipient agrees in writing to maintain
the confidentiality and privileged status of the documents,
materials, or other information, and has verified in writing the
legal authority to maintain confidentiality.

(2) Notwithstanding paragraph (1), may only share confidential
and privileged documents, materials, or information reported
pursuant to subdivision (m) of Section 1215.4 with commissioners
of states having statutes or regulations substantially similar to
subdivision (a) and who have agreed in writing not to disclose the
information.

(3) May receive documents, materials, or information, including
otherwise confidential and privileged documents, materials, or
information, from the NAIC and its affiliates and subsidiaries and
from regulatory and law enforcement officials of other foreign or
domestic jurisdictions, and shall maintain as confidential or
privileged any documents, materials, or information received with
notice or the understanding that it is confidential or privileged
under the laws of the jurisdiction that is the source of the
documents, materials, or information.

(4) May enter into written agreements with the NAIC governing
sharing and use of information provided pursuant to this
subdivision consistent with this subdivision that shall do the
following:

(A) Specify procedures and protocols regarding the
confidentiality and security of information shared with the NAIC
and its affiliates and subsidiaries pursuant to this subdivision,
including procedures and protocols for sharing by the NAIC with
other state, federal, or international regulators.

(B) Specify that ownership of information shared with the NAIC
and its affiliates and subsidiaries pursuant to this subdivision
remains with the commissioner and the NAIC’s use of the
information is subject to the direction of the commissioner.

(C) Require prompt notice to be given to an insurer whose
confidential information in the possession of the NAIC pursuant
to this subdivision is subject to a request or subpoena to the NAIC
for disclosure or production.

(D) Require the NAIC and its affiliates and subsidiaries to
consent to intervention by an insurer in any judicial or
administrative action in which the NAIC and its affiliates and
subsidiaries may be required to disclose confidential information
about the insurer shared with the NAIC and its affiliates and
subsidiaries pursuant to this subdivision.

(c) The sharing of information by the commissioner pursuant
to this subdivision shall not constitute a delegation of regulatory
authority or rulemaking, and the commissioner is solely responsible
for the administration, execution, and enforcement of the provisions
of this article.

(d) A waiver of any applicable privilege or claim of
confidentiality in the documents, materials, or information does
not occur as a result of disclosure to the commissioner under this
section or as a result of sharing as authorized in subdivision (c).

(e) Documents, materials, or other information filed in the
possession or control of the NAIC pursuant to this subdivision are
confidential by law and privileged, are not subject to subpoena,
and are not subject to discovery or admissible in evidence in any
private civil action.

begin delete SEC. 363. end delete
begin insert SEC. 367. end insert   

Section 10112.26 of the Insurance Code is amended
to read:

10112.26.  

(a) A health insurer that issues, sells, renews, or
offers a specialized health insurance policy covering dental services
shall, no later than September 30, 2015, and each year thereafter,
file a report, which shall be known as the MLR annual report, with
the department that is organized by market and product type and
contains the same information required in the 2013 federal Medical
Loss Ratio (MLR) Annual Reporting Form (CMS-10418).

(b) The MLR reporting year shall be for the calendar year during
which dental coverage is provided by the plan. All terms used in
the MLR annual report shall have the same meaning as used in the
federal Public Health Service Act (42 U.S.C. Sec. 300gg-18) and
Part 158 (commencing with Section 158.101) of Title 45 of the
Code of Federal Regulations.

(c) If the commissioner decides to conduct an examination, as
described in Section 730, because the commissioner finds it
necessary to verify the health insurer’s representations in the MLR
annual report, the department shall provide the health insurer with
a notification 30 days before the commencement of the
examination.

(d) The health insurer shall have 30 days from the date of
notification to electronically submit to the department all requested
records, books, and papers specified in subdivision (a) of Section
733. The commissioner may extend the time for a health insurer
to comply with this subdivision upon a finding of good cause.

(e) The department shall make available to the public all of the
data provided to the department pursuant to this section.

(f) This section does not apply to an insurance policy issued,
sold, renewed, or offered for health care services or coverage
provided in the Medi-Cal program (Chapter 7 (commencing with
Section 14000) of Part 3 of Division 9 of the Welfare and
Institutions Code), the Healthy Families Program (Part 6.2
(commencing with Section 12693) of Division 2 of the Insurance
Code), the Access for Infants and Mothers Program (Part 6.3
(commencing with Section 12695) of Division 2 of the Insurance
Code), the California Major Risk Medical Insurance Program (Part
6.5 (commencing with Section 12700) of Division 2 of the
Insurance Code), or the Federal Temporary High Risk Insurance
Pool (Part 6.6 (commencing with Section 12739.5) of Division 2
of the Insurance Code), to the extent consistent with the federal
Patient Protection and Affordable Care Act (Public Law 111-148).

(g) This section does not apply to disability insurance for
covered benefits in the single specialized area of dental-only health
care that pays benefits on a fixed benefit, cash payment only basis.

(h) It is the intent of the Legislature that the data reported
pursuant to this section be considered by the Legislature in adopting
a medical loss ratio standard for specialized health insurance
policies that cover dental services that would take effect no later
than January 1, 2018.

(i) Until January 1, 2018, the department may issue guidance
to health insurers of specialized health insurance policies subject
to this section regarding compliance with this section. This
guidance shall not be subject to the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code). Guidance issued
pursuant to this subdivision is effective only until the department
adopts regulations pursuant to the Administrative Procedure Act.
The department shall consult with the Department of Managed
Health Care in issuing guidance pursuant to this subdivision.

begin delete SEC. 364. end delete
begin insert SEC. 368. end insert   

Section 10112.35 of the Insurance Code is amended
to read:

10112.35.  

(a) An insurer providing individual coverage in the
Exchange shall cooperate with requests from the Exchange to
collaborate in the development of, and participate in the
implementation of, the Medi-Cal program’s premium and
cost-sharing payments under Sections 14102 and 14148.65 of the
Welfare and Institutions Code for eligible Exchange insureds.

(b) An insurer providing individual coverage in the Exchange
shall not charge, bill, ask, or require an insured receiving benefits
under Section 14102 or 14148.65 of the Welfare and Institutions
Code to make any premium or cost-sharing payments for any
services that are subject to premium or cost-sharing payments by
the State Department of Health Care Services under Section 14102
or 14148.65 of the Welfare and Institutions Code.

(c) For purposes of this section, “Exchange” means the
California Health Benefit Exchange established pursuant to Title
22 (commencing with Section 100500) of the Government Code.

begin delete SEC. 365. end delete
begin insert SEC. 369. end insert   

Section 10123.196 of the Insurance Code is amended
to read:

10123.196.  

(a) An individual or group policy of disability
insurance issued, amended, renewed, or delivered on or after
January 1, 2000, through December 31, 2015, inclusive, that
provides coverage for hospital, medical, or surgical expenses, shall
provide coverage for the following, under the same terms and
conditions as applicable to all benefits:

(1) A disability insurance policy that provides coverage for
outpatient prescription drug benefits shall include coverage for a
variety of federal Food and Drug Administration (FDA)-approved
prescription contraceptive methods, as designated by the insurer.
If an insured’s health care provider determines that none of the
methods designated by the disability insurer is medically
appropriate for the insured’s medical or personal history, the insurer
shall, in the alternative, provide coverage for some other
FDA-approved prescription contraceptive method prescribed by
the patient’s health care provider.

(2) Coverage with respect to an insured under this subdivision
shall be identical for an insured’s covered spouse and covered
nonspouse dependents.

(b) (1) A group or individual policy of disability insurance,
except for a specialized health insurance policy, that is issued,
amended, renewed, or delivered on or after January 1, 2016, shall
provide coverage for all of the following services and contraceptive
methods for women:

(A) Except as provided in subparagraphs (B) and (C) of
paragraph (2), all FDA-approved contraceptive drugs, devices,
and other products for women, including all FDA-approved
contraceptive drugs, devices, and products available over the
counter, as prescribed by the insured’s provider.

(B) Voluntary sterilization procedures.

(C) Patient education and counseling on contraception.

(D) Followup services related to the drugs, devices, products,
and procedures covered under this subdivision, including, but not
limited to, management of side effects, counseling for continued
adherence, and device insertion and removal.

(2) (A) Except for a grandfathered health plan, a disability
insurer subject to this subdivision shall not impose a deductible,
coinsurance, copayment, or any other cost-sharing requirement on
the coverage provided pursuant to this subdivision.

(B) If the FDA has approved one or more therapeutic equivalents
of a contraceptive drug, device, or product, a disability insurer is
not required to cover all of those therapeutically equivalent versions
in accordance with this subdivision, as long as at least one is
covered without cost sharing in accordance with this subdivision.

(C) If a covered therapeutic equivalent of a drug, device, or
product is not available, or is deemed medically inadvisable by
the insured’s provider, a disability insurer shall provide coverage,
subject to an insurer’s utilization management procedures, for the
prescribed contraceptive drug, device, or product without cost
sharing. Any request by a contracting provider shall be responded
to by the disability insurer in compliance with Section 10123.191.

(3) Except as otherwise authorized under this section, an insurer
shall not impose any restrictions or delays on the coverage required
under this subdivision.

(4) Coverage with respect to an insured under this subdivision
shall be identical for an insured’s covered spouse and covered
nonspouse dependents.

(c) This section shall not be construed to deny or restrict in any
way any existing right or benefit provided under law or by contract.

(d) This section shall not be construed to require an individual
or group disability insurance policy to cover experimental or
investigational treatments.

(e) Notwithstanding any other provision of this section, a
religious employer may request a disability insurance policy
without coverage for contraceptive methods that are contrary to
the religious employer’s religious tenets. If so requested, a
disability insurance policy shall be provided without coverage for
contraceptive methods.

(1) For purposes of this section, a “religious employer” is an
entity for which each of the following is true:

(A) The inculcation of religious values is the purpose of the
entity.

(B) The entity primarily employs persons who share the religious
tenets of the entity.

(C) The entity serves primarily persons who share the religious
tenets of the entity.

(D) The entity is a nonprofit organization pursuant to Section
6033(a)(3)(A)(i) or (iii) of the Internal Revenue Code of 1986, as
amended.

(2) Every religious employer that invokes the exemption
provided under this section shall provide written notice to any
prospective employee once an offer of employment has been made,
and prior to that person commencing that employment, listing the
contraceptive health care services the employer refuses to cover
for religious reasons.

(f) This section shall not be construed to exclude coverage for
contraceptive supplies as prescribed by a provider, acting within
his or her scope of practice, for reasons other than contraceptive
purposes, such as decreasing the risk of ovarian cancer or
eliminating symptoms of menopause, or for contraception that is
necessary to preserve the life or health of an insured.

(g) This section only applies to disability insurance policies or
contracts that are defined as health benefit plans pursuant to
subdivision (a) of Section 10198.6, except that for accident only,
specified disease, or hospital indemnity coverage, coverage for
benefits under this section applies to the extent that the benefits
are covered under the general terms and conditions that apply to
all other benefits under the policy or contract. This section shall
not be construed as imposing a new benefit mandate on accident
only, specified disease, or hospital indemnity insurance.

(h) For purposes of this section, the following definitions apply:

(1) “Grandfathered health plan” has the meaning set forth in
Section 1251 of PPACA.

(2) “PPACA” means the federal Patient Protection and
Affordable Care Act (Public Law 111-148), as amended by the
federal Health Care and Education Reconciliation Act of 2010
(Public Law 111-152), and any rules, regulations, or guidance
issued thereunder.

(3) With respect to policies of disability insurance issued,
amended, or renewed on or after January 1, 2016, “health care
provider” means an individual who is certified or licensed pursuant
to Division 2 (commencing with Section 500) of the Business and
Professions Code, or an initiative act referred to in that division,
or Division 2.5 (commencing with Section 1797) of the Health
and Safety Code.

begin delete SEC. 366. end delete
begin insert SEC. 370. end insert   

Section 10123.21 of the Insurance Code, as added
by Section 2 of Chapter 419 of the Statutes of 2005, is amended
and renumbered to read:

10123.22.  

(a) A health insurer shall not deny coverage that is
otherwise available under the health insurance policy for the costs
of solid organ or other tissue transplantation services based upon
the insured or policyholder being infected with the human
immunodeficiency virus.

(b) Notwithstanding any other provision of law, in the provision
of benefits required by this section, a health insurer may utilize
case management, managed care, or utilization review, subject to
the terms and conditions of the policy and consistent with sound
clinical processes and guidelines.

begin delete SEC. 367. end delete
begin insert SEC. 371. end insert   

Section 10192.18 of the Insurance Code is amended
to read:

10192.18.  

(a) Application forms shall include the following
questions designed to elicit information as to whether, as of the
date of the application, the applicant currently has Medicare
supplement, Medicare Advantage, Medi-Cal coverage, or another
health insurance policy or certificate in force or whether a Medicare
supplement policy or certificate is intended to replace any other
disability policy or certificate presently in force. A supplementary
application or other form to be signed by the applicant and agent
containing those questions and statements may be used.

 

(Statements)

 

(1) You do not need more than one Medicare supplement policy.

(2) If you purchase this policy, you may want to evaluate your
existing health coverage and decide if you need multiple coverages.

(3) You may be eligible for benefits under Medi-Cal and may
not need a Medicare supplement policy.

(4)  If after purchasing this policy you become eligible for
Medi-Cal, the benefits and premiums under your Medicare
supplement policy can be suspended, if requested, during your
entitlement to benefits under Medi-Cal for 24 months. You must
request this suspension within 90 days of becoming eligible for
Medi-Cal. If you are no longer entitled to Medi-Cal, your
suspended Medicare supplement policy or if that is no longer
available, a substantially equivalent policy, will be reinstituted if
requested within 90 days of losing Medi-Cal eligibility. If the
Medicare supplement policy provided coverage for outpatient
prescription drugs and you enrolled in Medicare Part D while your
policy was suspended, the reinstituted policy will not have
outpatient prescription drug coverage, but will otherwise be
substantially equivalent to your coverage before the date of the
suspension.

(5) If you are eligible for, and have enrolled in, a Medicare
supplement policy by reason of disability and you later become
covered by an employer or union-based group health plan, the
benefits and premiums under your Medicare supplement policy
can be suspended, if requested, while you are covered under the
employer or union-based group health plan. If you suspend your
Medicare supplement policy under these circumstances and later
lose your employer or union-based group health plan, your
suspended Medicare supplement policy or if that is no longer
available, a substantially equivalent policy, will be reinstituted if
requested within 90 days of losing your employer or union-based
group health plan. If the Medicare supplement policy provided
coverage for outpatient prescription drugs and you enrolled in
Medicare Part D while your policy was suspended, the reinstituted
policy will not have outpatient prescription drug coverage, but will
otherwise be substantially equivalent to your coverage before the
date of the suspension.

(6) Counseling services are available in this state to provide
advice concerning your purchase of Medicare supplement insurance
and concerning medical assistance through the Medi-Cal program,
including benefits as a qualified Medicare beneficiary (QMB) and
a specified low-income Medicare beneficiary (SLMB). If you want
to discuss buying Medicare supplement insurance with a trained
insurance counselor, call the California Department of Insurance’s
toll-free telephone number 1-800-927-HELP, and ask how to
contact your local Health Insurance Counseling and Advocacy
Program (HICAP) office. HICAP is a service provided free of
charge by the State of California.

 

(Questions)

 

If you lost or are losing other health insurance coverage and
received a notice from your prior insurer saying you were eligible
for guaranteed issue of a Medicare supplement insurance policy
or that you had certain rights to buy such a policy, you may be
guaranteed acceptance in one or more of our Medicare supplement
plans. Please include a copy of the notice from your prior insurer
with your application. PLEASE ANSWER ALL QUESTIONS.

[Please mark Yes or No below with an “X.”]

To the best of your knowledge,

(1) (a) Did you turn 65 years of age in the last 6 months?

Yes____ No____

(b) Did you enroll in Medicare Part B in the last 6 months?

Yes____ No____

(c) If yes, what is the effective date? ___________________

(2) Are you covered for medical assistance through California’s
Medi-Cal program?

NOTE TO APPLICANT: If you have a share of cost under the
Medi-Cal program, please answer NO to this question.

Yes____ No____

If yes,

(a) Will Medi-Cal pay your premiums for this Medicare
supplement policy?

Yes____ No____

(b) Do you receive benefits from Medi-Cal OTHER THAN
payments toward your Medicare Part B premium?

Yes____ No____

(3) (a) If you had coverage from any Medicare plan other than
original Medicare within the past 63 days (for example, a Medicare
Advantage plan or a Medicare HMO or PPO), fill in your start and
end dates below. If you are still covered under this plan, leave
“END” blank.

START __/__/__ END __/__/__

(b) If you are still covered under the Medicare plan, do you
intend to replace your current coverage with this new Medicare
supplement policy?

Yes____ No____

(c) Was this your first time in this type of Medicare plan?

Yes____ No____

(d) Did you drop a Medicare supplement policy to enroll in the
Medicare plan?

Yes____ No____

(4) (a) Do you have another Medicare supplement policy in
force?

Yes____ No____

(b) If so, with what company, and what plan do you have
[optional for direct mailers]?

Yes____ No____

(c) If so, do you intend to replace your current Medicare
supplement policy with this policy?

Yes____ No____

(5) Have you had coverage under any other health insurance
within the past 63 days? (For example, an employer, union, or
individual plan)

Yes____ No____

(a) If so, with what companies and what kind of policy?

________________________________________________

________________________________________________

________________________________________________

________________________________________________

(b) What are your dates of coverage under the other policy?

START __/__/__ END __/__/__

(If you are still covered under the other policy, leave “END”
blank.)”

 

(b) Agents shall list any other health insurance policies they
have sold to the applicant as follows:

(1) List policies sold that are still in force.

(2) List policies sold in the past five years that are no longer in
force.

(c) In the case of a direct response issuer, a copy of the
application or supplemental form, signed by the applicant, and
acknowledged by the issuer, shall be returned to the applicant by
the issuer upon delivery of the policy.

(d) Upon determining that a sale will involve replacement of
Medicare supplement coverage, any issuer, other than a direct
response issuer, or its agent, shall furnish the applicant, prior to
issuance for delivery of the Medicare supplement policy or
certificate, a notice regarding replacement of Medicare supplement
coverage. One copy of the notice signed by the applicant and the
agent, except where the coverage is sold without an agent, shall
be provided to the applicant and an additional signed copy shall
be retained by the issuer as provided in Section 10508. A direct
response issuer shall deliver to the applicant at the time of the
issuance of the policy the notice regarding replacement of Medicare
supplement coverage.

(e) The notice required by subdivision (d) for an issuer shall be
in the form specified by the commissioner, using, to the extent
practicable, a model notice prepared by the National Association
of Insurance Commissioners for this purpose. The replacement
notice shall be printed in no less than 12-point type in substantially
the following form:

 

[Insurer’s name and address]

 

NOTICE TO APPLICANT REGARDING REPLACEMENT
OF MEDICARE SUPPLEMENT COVERAGE OR MEDICARE
ADVANTAGE

 

SAVE THIS NOTICE! IT MAY BE IMPORTANT IN THE
FUTURE.

If you intend to cancel or terminate existing Medicare supplement
or Medicare Advantage insurance and replace it with coverage
issued by [company name], please review the new coverage
carefully and replace the existing coverage ONLY if the new
coverage materially improves your position. DO NOT CANCEL
YOUR PRESENT COVERAGE UNTIL YOU HAVE RECEIVED
YOUR NEW POLICY AND ARE SURE THAT YOU WANT
TO KEEP IT.

If you decide to purchase the new coverage, you will have 30
days after you receive the policy to return it to the insurer, for any
reason, and receive a refund of your money.

If you want to discuss buying Medicare supplement or Medicare
Advantage coverage with a trained insurance counselor, call the
California Department of Insurance’s toll-free telephone number
1-800-927-HELP, and ask how to contact your local Health
Insurance Counseling and Advocacy Program (HICAP) office.
HICAP is a service provided free of charge by the State of
California.

STATEMENT TO APPLICANT FROM THE INSURER AND
AGENT: I have reviewed your current health insurance coverage.
To the best of my knowledge, the replacement of insurance
involved in this transaction does not duplicate coverage or, if
applicable, Medicare Advantage coverage because you intend to
terminate your existing Medicare supplement coverage or leave
your Medicare Advantage plan. In addition, the replacement
coverage contains benefits that are clearly and substantially greater
than your current benefits for the following reasons:

__ Additional benefits that are: ______

__ No change in benefits, but lower premiums.

__ Fewer benefits and lower premiums.

__ Plan has outpatient prescription drug coverage and applicant
is enrolled in Medicare Part D.

__ Disenrollment from a Medicare Advantage plan. Reasons for
disenrollment:

__ Other reasons specified here: ______

1. Note: If the issuer of the Medicare supplement policy being
applied for does not impose, or is otherwise prohibited from
imposing, preexisting condition limitations, please skip to statement
3 below. Health conditions that you may presently have
(preexisting conditions) may not be immediately or fully covered
under the new policy. This could result in denial or delay of a claim
for benefits under the new policy, whereas a similar claim might
have been payable under your present policy.

2. State law provides that your replacement Medicare supplement
policy may not contain new preexisting conditions, waiting periods,
elimination periods, or probationary periods. The insurer will waive
any time periods applicable to preexisting conditions, waiting
periods, elimination periods, or probationary periods in the new
coverage for similar benefits to the extent that time was spent
(depleted) under the original policy.

3. If you still wish to terminate your present policy and replace
it with new coverage, be certain to truthfully and completely
answer any and all questions on the application concerning your
medical and health history. Failure to include all material medical
information on an application requesting that information may
provide a basis for the insurer to deny any future claims and to
refund your premium as though your policy had never been in
force. After the application has been completed and before you
sign it, review it carefully to be certain that all information has
been properly recorded. [If the policy or certificate is guaranteed
issue, this paragraph need not appear.]

DO NOT CANCEL YOUR PRESENT POLICY UNTIL YOU
HAVE RECEIVED YOUR NEW POLICY AND ARE SURE
THAT YOU WANT TO KEEP IT.

 

(Signature of Agent, Broker, or Other Representative)

(Signature of Applicant)

(Date)

 

 

(f) An issuer, broker, agent, or other person shall not cause an
insured to replace a Medicare supplement insurance policy
unnecessarily. In recommending replacement of any Medicare
supplement insurance, an agent shall make reasonable efforts to
determine the appropriateness to the potential insured.

(g) An issuer shall not require, request, or obtain health
information as part of the application process for an applicant who
is eligible for guaranteed issuance of, or open enrollment for, any
Medicare supplement coverage pursuant to Section 10192.11 or
10192.12, except for purposes of paragraph (1) or (2) of subdivision
(a) of Section 10192.11 when the applicant is first enrolled in
Medicare Part B. The application form shall include a clear and
conspicuous statement that the applicant is not required to provide
health information during a period where guaranteed issue or open
enrollment applies, as specified in Section 10192.11 or 10192.12,
except for purposes of paragraph (1) or (2) of subdivision (a) of
Section 10192.11 when the applicant is first enrolled in Medicare
Part B, and shall inform the applicant of those periods of
guaranteed issuance of Medicare supplement coverage. This
subdivision does not prohibit an issuer from requiring proof of
eligibility for a guaranteed issuance of Medicare supplement
coverage.

begin delete SEC. 368. end delete
begin insert SEC. 372. end insert   

Section 10753.06.5 of the Insurance Code is
amended to read:

10753.06.5.  

(a) With respect to small employer health benefit
plans offered outside the Exchange, after a small employer submits
a completed application, the carrier shall, within 30 days, notify
the employer of the employer’s actual rates in accordance with
Section 10753.14. The employer has 30 days in which to exercise
the right to buy coverage at the quoted rates.

(b) Except as required under subdivision (c), when a small
employer submits a premium payment, based on the quoted rates,
and that payment is delivered or postmarked, whichever occurs
earlier, within the first 15 days of a month, coverage shall become
effective no later than the first day of the following month. When
that payment is neither delivered nor postmarked until after the
15th day of a month, coverage shall become effective no later than
the first day of the second month following delivery or postmark
of the payment.

(c) (1) With respect to a small employer health benefit plan
offered through the Exchange, a carrier shall apply coverage
effective dates consistent with those required under Section
155.720 of Title 45 of the Code of Federal Regulations and of
subdivision (e) of Section 10965.3.

(2) With respect to a small employer health benefit plan offered
outside the Exchange for which an individual applies during a
special enrollment period described in paragraph (3) of subdivision
(b) of Section 10753.05, the following provisions shall apply:

(A) Coverage under the plan shall become effective no later
than the first day of the first calendar month beginning after the
date the carrier receives the request for special enrollment.

(B) Notwithstanding subparagraph (A), in the case of a birth,
adoption, or placement for adoption, coverage under the plan shall
become effective on the date of birth, adoption, or placement for
adoption.

(d) During the first 30 days of coverage, the small employer
shall have the option of changing coverage to a different health
benefit plan offered by the same carrier. If a small employer
notifies the carrier of the change within the first 15 days of a month,
coverage under the new health benefit plan shall become effective
no later than the first day of the following month. If a small
employer notifies the carrier of the change after the 15th day of a
month, coverage under the new health benefit plan shall become
effective no later than the first day of the second month following
notification.

(e) All eligible employees and dependents listed on a small
employer’s completed application shall be covered on the effective
date of the health benefit plan.

begin delete SEC. 369. end delete
begin insert SEC. 373. end insert   

The heading of Chapter 17 (commencing with
Section 12693.99) of Part 6.2 of Division 2 of the Insurance Code
is repealed.

begin delete SEC. 370. end delete
begin insert SEC. 374. end insert   

Section 12880.4 of the Insurance Code is amended
to read:

12880.4.  

(a) Whenever the commissioner shall have reason
to believe that a person has engaged or is engaging in this state in
a violation of this part, and that a proceeding by the commissioner
in respect thereto would be to the interest of the public, he or she
shall issue and serve upon that person an order to show cause
containing a statement of the charges in that respect, a statement
of that person’s potential liability under this part, and a notice of
a hearing thereon to be held at a time and place fixed therein, which
shall not be less than 30 days after the service thereof, for the
purpose of determining whether the commissioner should issue
an order to that person to pay the penalty imposed by Section
12880.3 and to cease and desist those methods, acts, or practices,
or any of them, that violate this part.

(b) If the charges or any of them are found to be justified, the
commissioner shall issue and cause to be served upon that person
an order requiring that person to pay the penalty imposed by
Section 12880.3 and to cease and desist from engaging in those
methods, acts, or practices found to be in violation of this part.

(c) The hearing shall be conducted in accordance with the
Administrative Procedure Act (Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code), except that the hearings may be conducted by an
administrative law judge in the administrative law bureau when
the proceedings involve a common question of law or fact with
another proceeding arising under other Insurance Code sections
that may be conducted by administrative law bureau administrative
law judges. The commissioner and the appointed administrative
law judge shall have all the powers granted under the
Administrative Procedure Act.

(d) The person is entitled to have the proceedings and the order
reviewed by means of any remedy provided by Section 12940 or
by the Administrative Procedure Act.

begin delete SEC. 371. end delete
begin insert SEC. 375. end insert   

Section 1019 of the Labor Code is amended to read:

1019.  

(a) It is unlawful for an employer or any other person
or entity to engage in, or to direct another person or entity to engage
in, unfair immigration-related practices against any person for the
purpose of, or with the intent of, retaliating against any person for
exercising any right protected under this code or by any local
ordinance applicable to employees. Exercising a right protected
by this code or local ordinance includes the following:

(1) Filing a complaint or informing any person of an employer’s
or other party’s alleged violation of this code or local ordinance,
so long as the complaint or disclosure is made in good faith.

(2) Seeking information regarding whether an employer or other
party is in compliance with this code or local ordinance.

(3) Informing a person of his or her potential rights and remedies
under this code or local ordinance, and assisting him or her in
asserting those rights.

(b) (1) As used in this chapter, “unfair immigration-related
practice” means any of the following practices, when undertaken
for the retaliatory purposes prohibited by subdivision (a):

(A) Requesting more or different documents than are required
under Section 1324a(b) of Title 8 of the United States Code, or a
refusal to honor documents tendered pursuant to that section that
on their face reasonably appear to be genuine.

(B) Using the federal E-Verify system to check the employment
authorization status of a person at a time or in a manner not
required under Section 1324a(b) of Title 8 of the United States
Code, or not authorized under any memorandum of understanding
governing the use of the federal E-Verify system.

(C) Threatening to file or the filing of a false police report, or
a false report or complaint with any state or federal agency.

(D) Threatening to contact or contacting immigration authorities.

(2) “Unfair immigration-related practice” does not include
conduct undertaken at the express and specific direction or request
of the federal government.

(c) Engaging in an unfair immigration-related practice against
a person within 90 days of the person’s exercise of rights protected
under this code or local ordinance applicable to employees shall
raise a rebuttable presumption of having done so in retaliation for
the exercise of those rights.

(d) (1) An employee or other person who is the subject of an
unfair immigration-related practice prohibited by this section, or
a representative of that employee or person, may bring a civil
action for equitable relief and any applicable damages or penalties.

(2) Upon a finding by a court of applicable jurisdiction of a
violation of this section, upon application by a party or on its own
motion, a court may do the following:

(A) For a first violation, order the appropriate government
agencies to suspend all licenses that are held by the violating party
for a period of up to 14 days. On receipt of the court’s order and
notwithstanding any other law, the appropriate agencies shall
suspend the licenses according to the court’s order.

(B) For a second violation, order the appropriate government
agencies to suspend all licenses that are held by the violating party
for a period of up to 30 days. On receipt of the court’s order and
notwithstanding any other law, the appropriate agencies shall
immediately suspend the licenses.

(C) For a third or subsequent violation, order the appropriate
government agencies to suspend for a period of up to 90 days all
licenses that are held by the violating party. On receipt of the
court’s order and notwithstanding any other law, the appropriate
agencies shall immediately suspend the licenses.

(3) In determining whether a suspension of all licenses is
appropriate under this subdivision, the court shall consider whether
the employer knowingly committed an unfair immigration-related
practice, the good faith efforts of the employer to resolve any
alleged unfair immigration-related practice after receiving notice
of the violations, as well as the harm other employees of the
employer, or employees of other employers on a multiemployer
job site, will suffer as a result of the suspension of all licenses.

(4) An employee or other person who is the subject of an unfair
immigration-related practice prohibited by this section, and who
prevails in an action authorized by this section, shall recover his
or her reasonable attorney’s fees and costs, including any expert
witness costs.

(e) As used in this chapter:

(1) “License” means any agency permit, certificate, approval,
registration, or charter that is required by law and that is issued by
any agency for the purposes of operating a business in this state
and that is specific to the business location or locations where the
unfair immigration-related practice occurred. “License” does not
include a professional license.

(2) “Violation” means each incident when an unfair
immigration-related practice was committed, without reference to
the number of employees involved in the incident.

begin delete SEC. 372. end delete
begin insert SEC. 376. end insert   

Section 1311.5 of the Labor Code is amended to
read:

1311.5.  

(a) This section shall be known and may be cited as
the Child Labor Protection Act of 2014.

(b) The statute of limitations for claims arising under this code
shall be tolled until an individual allegedly aggrieved by an
unlawful practice attains the age of majority. This subdivision is
declaratory of existing law.

(c) In addition to other remedies available, an individual who
is discharged, threatened with discharge, demoted, suspended,
retaliated against, subjected to an adverse action, or in any other
manner discriminated against in the terms or conditions of his or
her employment because the individual filed a claim or civil action
alleging a violation of this code that arose while the individual
was a minor, whether the claim or civil action was filed before or
after the individual reached the age of majority, is entitled to treble
damages.

(d) A class “A” violation, as defined in subdivision (a) of Section
1288, that involves a minor 12 years of age or younger shall be
subject to a civil penalty in an amount not less than twenty-five
thousand dollars ($25,000) and not exceeding fifty thousand dollars
($50,000) for each violation.

begin delete SEC. 373. end delete
begin insert SEC. 377. end insert   

Section 1741.1 of the Labor Code is amended to
read:

1741.1.  

(a) The period for service of assessments shall be
tolled for the period of time required by the Director of Industrial
Relations to determine whether a project is a public work, including
a determination on administrative appeal, if applicable, pursuant
to subdivisions (b) and (c) of Section 1773.5. The period for service
of assessments shall also be tolled for the period of time that a
contractor or subcontractor fails to provide in a timely manner
certified payroll records pursuant to a request from the Labor
Commissioner or a joint labor-management committee under
Section 1776, or an approved labor compliance program under
Section 1771.5 or 1771.7.

(b) (1) The body awarding the contract for a public work shall
furnish, within 10 days after receipt of a written request from the
Labor Commissioner, a copy of the valid notice of completion for
the public work filed in the office of the county recorder, or a
document evidencing the awarding body’s acceptance of the public
work on a particular date, whichever occurs later, by first-class
mail addressed to the office of the Labor Commissioner that is
listed on the written request. If, at the time of receipt of the Labor
Commissioner’s written request, a valid notice of completion has
not been filed by the awarding body in the office of the county
recorder and there is no document evidencing the awarding body’s
acceptance of the public work on a particular date, the awarding
body shall so notify the office of the Labor Commissioner that is
listed on the written request. Thereafter, the awarding body shall
furnish copies of the applicable document within 10 days after
filing a valid notice of completion with the county recorder’s office,
or within 10 days of the awarding body’s acceptance of the public
work on a particular date.

(2) If the awarding body fails to timely furnish the Labor
Commissioner with the documents identified in paragraph (1), the
period for service of assessments under Section 1741 shall be tolled
until the Labor Commissioner’s actual receipt of the valid notice
of completion for the public work or a document evidencing the
awarding body’s acceptance of the public work on a particular
date.

(c) The tolling provisions in this section shall also apply to the
period of time for commencing an action brought by a joint
labor-management committee pursuant to Section 1771.2.

begin delete SEC. 374. end delete
begin insert SEC. 378. end insert   

Section 5406 of the Labor Code is amended to read:

5406.  

(a) Except as provided in Section 5406.5, 5406.6, or
5406.7, the period within which may be commenced proceedings
for the collection of the benefits provided by Article 4
(commencing with Section 4700) of Chapter 2 of Part 2 is one
year from:

(1) The date of death if death occurs within one year from date
of injury.

(2) The date of last furnishing of any benefits under Chapter 2
(commencing with Section 4550) of Part 2, if death occurs more
than one year from the date of injury.

(3) The date of death, if death occurs more than one year after
the date of injury and compensation benefits have been furnished.

(b) Proceedings shall not be commenced more than one year
after the date of death, nor more than 240 weeks from the date of
injury.

begin delete SEC. 375. end delete
begin insert SEC. 379. end insert   

Section 6319 of the Labor Code is amended to read:

6319.  

(a) If, after an inspection or investigation, the division
issues a citation pursuant to Section 6317 or an order pursuant to
Section 6308, it shall, within a reasonable time after the termination
of the inspection or investigation, notify the employer by certified
mail of the citation or order, and that the employer has 15 working
days from receipt of the notice within which to notify the appeals
board that he or she wishes to contest the citation or order for any
reason set forth in Section 6600 or 6600.5.

(b) An employer served by certified mail with a notice of civil
penalty may appeal to the appeals board within 15 working days
from receipt of that notice for any reason set forth in Section 6600.
If the citation is issued for a violation involving the condition or
operation of any machine, device, apparatus, or equipment, and a
person other than the employer is obligated to the employer to
repair the machine, device, apparatus, or equipment and to pay
any penalties assessed against the employer, the other person may
appeal to the appeals board within 15 working days of the receipt
of the citation by the employer for any reasons set forth in Section
6600.

(c) The director shall promulgate regulations covering the
assessment of civil penalties under this chapter which give due
consideration to the appropriateness of the penalty with respect to
the following factors:

(1) The size of the business of the employer being charged.

(2) The gravity of the violation.

(3) The good faith of the employer, including timely abatement.

(4) The history of previous violations.

(d) Notwithstanding subdivision (c), if serious injury, illness,
exposure, or death is caused by a serious, willful, or repeated
violation, or by a failure to correct a serious violation within the
time permitted for its correction, the penalty shall not be reduced
for a reason other than the size of the business of the employer
being charged. Whenever the division issues a citation for a
violation covered by this subdivision, it shall notify the employer
of its determination that serious injury, illness, exposure or death
was caused by the violation and shall, upon request, provide the
employer with a copy of the inspection report.

(e) The employer is not liable for a civil penalty under this part
for any citation issued by a division representative providing
consulting services pursuant to Sections 6354 and 6355.

(f) Whenever a citation of a self-insured employer for a willful
or repeat serious violation of the standard adopted pursuant to
Section 6401.7 becomes final, the division shall notify the director
so that a hearing may be held to determine whether good cause
exists to revoke the employer’s certificate of consent to self-insure
as provided in Section 3702.

(g) Based upon the evidence, the division may propose
appropriate modifications concerning the characterization of
violations and corresponding modifications to civil penalties as a
result thereof. For serious violations, the division shall not grant
a proposed modification to civil penalties for abatement or credit
for abatement unless the employer has done any of the following:

(1) Abated the violation at the time of the initial inspection.

(2) Abated the violation at the time of a subsequent inspection
prior to the issuance of a citation.

(3) Submitted a signed statement under penalty of perjury and
supporting evidence, when necessary to prove abatement, in
accordance with subdivision (b) of Section 6320.

begin delete SEC. 376. end delete
begin insert SEC. 380. end insert   

Section 6404.5 of the Labor Code is amended to
read:

6404.5.  

(a) The Legislature finds and declares that regulation
of smoking in the workplace is a matter of statewide interest and
concern. It is the intent of the Legislature in enacting this section
to prohibit the smoking of tobacco products in all (100 percent of)
enclosed places of employment in this state, as covered by this
section, thereby eliminating the need of local governments to enact
workplace smoking restrictions within their respective jurisdictions.
It is further the intent of the Legislature to create a uniform
statewide standard to restrict and prohibit the smoking of tobacco
products in enclosed places of employment, as specified in this
section, in order to reduce employee exposure to environmental
tobacco smoke to a level that will prevent anything other than
insignificantly harmful effects to exposed employees, and also to
eliminate the confusion and hardship that can result from enactment
or enforcement of disparate local workplace smoking restrictions.
Notwithstanding any other provision of this section, it is the intent
of the Legislature that an area not defined as a “place of
employment” pursuant to subdivision (d) or in which the smoking
of tobacco products is not regulated pursuant to subdivision (e) is
subject to local regulation of smoking of tobacco products.

(b) An employer shall not knowingly or intentionally permit,
and a person shall not engage in, the smoking of tobacco products
in an enclosed space at a place of employment. “Enclosed space”
includes lobbies, lounges, waiting areas, elevators, stairwells, and
restrooms that are a structural part of the building and not
specifically defined in subdivision (d).

(c) For purposes of this section, an employer who permits any
nonemployee access to his or her place of employment on a regular
basis has not acted knowingly or intentionally in violation of this
section if he or she has taken the following reasonable steps to
prevent smoking by a nonemployee:

(1) Posted clear and prominent signs, as follows:

(A) Where smoking is prohibited throughout the building or
structure, a sign stating “No smoking” shall be posted at each
entrance to the building or structure.

(B) Where smoking is permitted in designated areas of the
building or structure, a sign stating “Smoking is prohibited except
in designated areas” shall be posted at each entrance to the building
or structure.

(2) Has requested, when appropriate, that a nonemployee who
is smoking refrain from smoking in the enclosed workplace.

For purposes of this subdivision, “reasonable steps” does not
include (A) the physical ejection of a nonemployee from the place
of employment or (B) any requirement for making a request to a
nonemployee to refrain from smoking, under circumstances
involving a risk of physical harm to the employer or any employee.

(d) For purposes of this section, “place of employment” does
not include any of the following:

(1) Sixty-five percent of the guestroom accommodations in a
hotel, motel, or similar transient lodging establishment.

(2) Areas of the lobby in a hotel, motel, or other similar transient
lodging establishment designated for smoking by the establishment.
An establishment may permit smoking in a designated lobby area
that does not exceed 25 percent of the total floor area of the lobby
or, if the total area of the lobby is 2,000 square feet or less, that
does not exceed 50 percent of the total floor area of the lobby. For
purposes of this paragraph, “lobby” means the common public
area of an establishment in which registration and other similar or
related transactions, or both, are conducted and in which the
establishment’s guests and members of the public typically
congregate.

(3) Meeting and banquet rooms in a hotel, motel, other transient
lodging establishment similar to a hotel or motel, restaurant, or
public convention center, except while food or beverage functions
are taking place, including setup, service, and cleanup activities,
or when the room is being used for exhibit purposes. At times
when smoking is not permitted in a meeting or banquet room
pursuant to this paragraph, the establishment may permit smoking
in corridors and prefunction areas adjacent to and serving the
meeting or banquet room if no employee is stationed in that
corridor or area on other than a passing basis.

(4) Retail or wholesale tobacco shops and private smokers’
lounges. For purposes of this paragraph:

(A) “Private smokers’ lounge” means any enclosed area in or
attached to a retail or wholesale tobacco shop that is dedicated to
the use of tobacco products, including, but not limited to, cigars
and pipes.

(B) “Retail or wholesale tobacco shop” means any business
establishment the main purpose of which is the sale of tobacco
products, including, but not limited to, cigars, pipe tobacco, and
smoking accessories.

(5) Cabs of motortrucks, as defined in Section 410 of the Vehicle
Code, or truck tractors, as defined in Section 655 of the Vehicle
Code, if nonsmoking employees are not present.

(6) Warehouse facilities. For purposes of this paragraph,
“warehouse facility” means a warehouse facility with more than
100,000 square feet of total floorspace, and 20 or fewer full-time
employees working at the facility, but does not include any area
within a facility that is utilized as office space.

(7) Gaming clubs, in which smoking is permitted by subdivision
(f). For purposes of this paragraph, “gaming club” means any
gaming club, as defined in Section 19802 of the Business and
Professions Code, or bingo facility, as defined in Section 326.5 of
the Penal Code, that restricts access to minors under 18 years of
age.

(8) Bars and taverns, in which smoking is permitted by
subdivision (f). For purposes of this paragraph, “bar” or “tavern”
means a facility primarily devoted to the serving of alcoholic
beverages for consumption by guests on the premises, in which
the serving of food is incidental. “Bar or tavern” includes those
facilities located within a hotel, motel, or other similar transient
occupancy establishment. However, when located within a building
in conjunction with another use, including a restaurant, “bar” or
“tavern” includes only those areas used primarily for the sale and
service of alcoholic beverages. “Bar” or “tavern” does not include
the dining areas of a restaurant, regardless of whether alcoholic
beverages are served therein.

(9) Theatrical production sites, if smoking is an integral part of
the story in the theatrical production.

(10) Medical research or treatment sites, if smoking is integral
to the research and treatment being conducted.

(11) Private residences, except for private residences licensed
as family day care homes where smoking is prohibited pursuant
to Section 1596.795 of the Health and Safety Code.

(12) Patient smoking areas in long-term health care facilities,
as defined in Section 1418 of the Health and Safety Code.

(13) Breakrooms designated by employers for smoking, provided
that all of the following conditions are met:

(A) Air from the smoking room shall be exhausted directly to
the outside by an exhaust fan. Air from the smoking room shall
not be recirculated to other parts of the building.

(B) The employer shall comply with any ventilation standard
or other standard utilizing appropriate technology, including, but
not limited to, mechanical, electronic, and biotechnical systems,
adopted by the Occupational Safety and Health Standards Board
or the federal Environmental Protection Agency. If both adopt
inconsistent standards, the ventilation standards of the Occupational
Safety and Health Standards Board shall be no less stringent than
the standards adopted by the federal Environmental Protection
Agency.

(C) The smoking room shall be located in a nonwork area where
no one, as part of his or her work responsibilities, is required to
enter. For purposes of this subparagraph, “work responsibilities”
does not include any custodial or maintenance work carried out in
the breakroom when it is unoccupied.

(D) There are sufficient nonsmoking breakrooms to
accommodate nonsmokers.

(14) Employers with a total of five or fewer employees, either
full time or part time, may permit smoking where all of the
following conditions are met:

(A) The smoking area is not accessible to minors.

(B) All employees who enter the smoking area consent to permit
smoking. No one, as part of his or her work responsibilities, shall
be required to work in an area where smoking is permitted. An
employer who is determined by the division to have used coercion
to obtain consent or who has required an employee to work in the
smoking area shall be subject to the penalty provisions of Section
6427.

(C) Air from the smoking area shall be exhausted directly to
the outside by an exhaust fan. Air from the smoking area shall not
be recirculated to other parts of the building.

(D) The employer shall comply with any ventilation standard
or other standard utilizing appropriate technology, including, but
not limited to, mechanical, electronic, and biotechnical systems,
adopted by the Occupational Safety and Health Standards Board
or the federal Environmental Protection Agency. If both adopt
inconsistent standards, the ventilation standards of the Occupational
Safety and Health Standards Board shall be no less stringent than
the standards adopted by the federal Environmental Protection
Agency.

This paragraph shall not be construed to (i) supersede or render
inapplicable any condition or limitation on smoking areas made
applicable to specific types of business establishments by any other
paragraph of this subdivision or (ii) apply in lieu of any otherwise
applicable paragraph of this subdivision that has become
inoperative.

(e) Paragraphs (13) and (14) of subdivision (d) shall not be
construed to require employers to provide reasonable
accommodation to smokers, or to provide breakrooms for smokers
or nonsmokers.

(f) (1) Except as otherwise provided in this subdivision,
smoking may be permitted in gaming clubs, as defined in paragraph
(7) of subdivision (d), and in bars and taverns, as defined in
paragraph (8) of subdivision (d), until the earlier of the following:

(A) January 1, 1998.

(B) The date of adoption of a regulation (i) by the Occupational
Safety and Health Standards Board reducing the permissible
employee exposure level to environmental tobacco smoke to a
level that will prevent anything other than insignificantly harmful
effects to exposed employees or (ii) by the federal Environmental
Protection Agency establishing a standard for reduction of
permissible exposure to environmental tobacco smoke to an
exposure level that will prevent anything other than insignificantly
harmful effects to exposed persons.

(2) If a regulation specified in subparagraph (B) of paragraph
(1) is adopted on or before January 1, 1998, smoking may thereafter
be permitted in gaming clubs and in bars and taverns, subject to
full compliance with, or conformity to, the standard in the
regulation within two years following the date of adoption of the
regulation. An employer failing to achieve compliance with, or
conformity to, the regulation within this two-year period shall
prohibit smoking in the gaming club, bar, or tavern until
compliance or conformity is achieved. If the Occupational Safety
and Health Standards Board and the federal Environmental
Protection Agency both adopt regulations specified in subparagraph
(B) of paragraph (1) that are inconsistent, the regulations of the
Occupational Safety and Health Standards Board shall be no less
stringent than the regulations of the federal Environmental
Protection Agency.

(3) If a regulation specified in subparagraph (B) of paragraph
(1) is not adopted on or before January 1, 1998, the exemptions
specified in paragraphs (7) and (8) of subdivision (d) shall become
inoperative on and after January 1, 1998, until a regulation is
adopted. Upon adoption of such a regulation on or after January
1, 1998, smoking may thereafter be permitted in gaming clubs and
in bars and taverns, subject to full compliance with, or conformity
to, the standard in the regulation within two years following the
date of adoption of the regulation. An employer failing to achieve
compliance with, or conformity to, the regulation within this
two-year period shall prohibit smoking in the gaming club, bar,
or tavern until compliance or conformity is achieved. If the
Occupational Safety and Health Standards Board and the federal
Environmental Protection Agency both adopt regulations specified
in subparagraph (B) of paragraph (1) that are inconsistent, the
regulations of the Occupational Safety and Health Standards Board
shall be no less stringent than the regulations of the federal
Environmental Protection Agency.

(4) From January 1, 1997, to December 31, 1997, inclusive,
smoking may be permitted in gaming clubs, as defined in paragraph
(7) of subdivision (d), and in bars and taverns, as defined in
paragraph (8) of subdivision (d), subject to both of the following
conditions:

(A) If practicable, the gaming club or bar or tavern shall
establish a designated nonsmoking area.

(B) If feasible, an employee shall not be required, in the
performance of ordinary work responsibilities, to enter any area
in which smoking is permitted.

(g) The smoking prohibition set forth in this section constitutes
a uniform statewide standard for regulating the smoking of tobacco
products in enclosed places of employment and supersedes and
render unnecessary the local enactment or enforcement of local
ordinances regulating the smoking of tobacco products in enclosed
places of employment. Insofar as the smoking prohibition set forth
in this section is applicable to all (100-percent) places of
employment within this state and, therefore, provides the maximum
degree of coverage, the practical effect of this section is to
eliminate the need of local governments to enact enclosed
workplace smoking restrictions within their respective jurisdictions.

(h) This section does not prohibit an employer from prohibiting
smoking in an enclosed place of employment for any reason.

(i) The enactment of local regulation of smoking of tobacco
products in enclosed places of employment by local governments
shall be suspended only for as long as, and to the extent that, the
(100-percent) smoking prohibition provided for in this section
remains in effect. In the event this section is repealed or modified
by subsequent legislative or judicial action so that the (100-percent)
smoking prohibition is no longer applicable to all enclosed places
of employment in California, local governments shall have the full
right and authority to enforce previously enacted, and to enact and
enforce new, restrictions on the smoking of tobacco products in
enclosed places of employment within their jurisdictions, including
a complete prohibition of smoking. Notwithstanding any other
provision of this section, an area not defined as a “place of
employment” or in which smoking is not regulated pursuant to
subdivision (d) or (e), is subject to local regulation of smoking of
tobacco products.

(j) A violation of the prohibition set forth in subdivision (b) is
an infraction, punishable by a fine not to exceed one hundred
dollars ($100) for a first violation, two hundred dollars ($200) for
a second violation within one year, and five hundred dollars ($500)
for a third and for each subsequent violation within one year. This
subdivision shall be enforced by local law enforcement agencies,
including, but not limited to, local health departments, as
determined by the local governing body.

(k) Notwithstanding Section 6309, the division shall not be
required to respond to any complaint regarding the smoking of
tobacco products in an enclosed space at a place of employment,
unless the employer has been found guilty pursuant to subdivision
(j) of a third violation of subdivision (b) within the previous year.

(l) If a provision of this act or the application thereof to any
person or circumstances is held invalid, that invalidity shall not
affect other provisions or applications of the act that can be given
effect without the invalid provision or application, and to this end
the provisions of this act are severable.

begin delete SEC. 377. end delete
begin insert SEC. 381. end insert   

Section 6625 of the Labor Code is amended to read:

6625.  

(a) (1) Except as provided in subdivision (b), the filing
of a petition for reconsideration suspends for a period of 10 days
the order or decision affected, insofar as it applies to the parties
to the petition, unless otherwise ordered by the appeals board.

(2) Except as provided in subdivision (b), the appeals board,
upon the terms and conditions which it by order directs, may stay,
suspend, or postpone the order or decision during the pendency of
the reconsideration.

(b) The filing of a petition for, or the pendency of,
reconsideration of a final order or decision involving a citation
classified as serious, repeat serious, or willful serious does not stay
or suspend the requirement to abate the hazards affirmed by the
decision or order unless the employer demonstrates by a
preponderance of the evidence that a stay or suspension of
abatement will not adversely affect the health and safety of
employees. The employer must request a stay or suspension of
abatement by filing a written, verified petition with supporting
declarations within 10 days after the issuance of the order or
decision.

begin delete SEC. 378. end delete
begin insert SEC. 382. end insert   

Section 7873 of the Labor Code is amended to read:

7873.  

(a) As used in this section, “trade secret” means a trade
secret as defined in subdivision (d) of Section 6254.7 of the
Government Code or Section 1061 of the Evidence Code, and shall
include the schedule submitted to the division pursuant to
subdivision (b) of Section 7872 of this code, and the scheduling,
duration, layout, configuration, and type of work to be performed
during a turnaround. Upon completion of a turnaround, the
scheduling and duration of that turnaround shall no longer be
considered a trade secret. The wages, hours, benefits, job
classifications, and training standards for employees performing
work for petroleum refinery employers is not a trade secret.

(b) (1) If a petroleum refinery employer believes that
information submitted to the division pursuant to Section 7872
may involve the release of a trade secret, the petroleum refinery
employer shall nevertheless provide this information to the
division. The petroleum refinery employer may, at the time of
submission, identify all or a portion of the information submitted
to the division as trade secret and, to the extent feasible, segregate
records designated as trade secret from the other records.

(2) Subject to subdivisions (c), (d), and (e), the division shall
not release to the public any information designated as a trade
secret by the petroleum refinery employer pursuant to paragraph
(1).

(c) (1) Upon the receipt of a request for the release of
information to the public that includes information that the
petroleum refinery employer has notified the division is a trade
secret pursuant to paragraph (1) of subdivision (b), the division
shall notify the petroleum refinery employer in writing of the
request by certified mail, return receipt requested.

(2) The division shall release the requested information to the
public, unless both of the following occur:

(A) Within 30 days of receipt of the notice of the request for
information, the petroleum refinery employer files an action in an
appropriate court for a declaratory judgment that the information
is subject to protection under subdivision (b) and promptly notifies
the division of that action.

(B) Within 120 days of receipt of the notice of the request for
information, the petroleum refinery employer obtains an order
prohibiting disclosure of the information to the public and promptly
notifies the division of that action.

(3) This subdivision shall not be construed to allow a petroleum
refinery employer to refuse to disclose the information required
pursuant to this section to the division.

(d) (1) Except as provided in subdivision (c), information that
has been designated as a trade secret by a petroleum refinery
employer shall not be released to any member of the public, except
that this information may be disclosed to other officers or
employees of the division when relevant in a proceeding of the
division.

(2) If the person requesting the release of the information or the
petroleum refinery employer files an action to order or prohibit
disclosure of trade secret information, the person instituting the
proceeding shall name the person or the petroleum refinery
employer as a real party in interest.

(A) The petroleum refinery employer filing an action pursuant
to paragraph (2) of subdivision (c) shall provide notice of the action
to the person requesting the release of the information at the same
time that the defendant in the action is served.

(B) The person filing an action to compel the release of
information that includes information that the petroleum refinery
employer has notified the division is a trade secret pursuant to
paragraph (1) of subdivision (b) shall provide notice of the action
to the petroleum refinery employer that submitted the information
at the same time that the defendant in the action is served.

(3) The court shall award costs and reasonable attorneys’ fees
to the party that prevails in litigation filed pursuant to this section.
The public agency shall not bear the court costs for any party
named in litigation filed pursuant to this section.

(e) This section shall not be construed to prohibit the exchange
of trade secrets between local, state, or federal public agencies or
state officials when those trade secrets are relevant and reasonably
necessary to the exercise of their authority.

(f) An officer or employee of the division who, by virtue of that
employment or official position, has possession of, or has access
to, trade secret information, and who, knowing that disclosure of
the information to the general public is prohibited by this section,
knowingly and willfully discloses the information in any manner
to a person he or she knows is not entitled to receive it, is guilty
of a misdemeanor. A contractor with the division and an employee
of the contractor, who has been furnished information as authorized
by this section, shall be considered an employee of the division
for purposes of this section.

begin delete SEC. 379. end delete
begin insert SEC. 383. end insert   

Section 19.8 of the Penal Code is amended to read:

19.8.  

(a) The following offenses are subject to subdivision (d)
of Section 17: Sections 193.8, 330, 415, 485, 490.7, 555, 602.13,
and 853.7 of this code; subdivision (c) of Section 532b, and
subdivision (o) of Section 602 of this code; subdivision (b) of
Section 25658 and Sections 21672, 25661, and 25662 of the
Business and Professions Code; Section 27204 of the Government
Code; subdivision (c) of Section 23109 and Sections 5201.1, 12500,
14601.1, 27150.1, 40508, and 42005 of the Vehicle Code, and any
other offense that the Legislature makes subject to subdivision (d)
of Section 17. Except where a lesser maximum fine is expressly
provided for a violation of those sections, a violation that is an
infraction is punishable by a fine not exceeding two hundred fifty
dollars ($250).

(b) Except in cases where a different punishment is prescribed,
every offense declared to be an infraction is punishable by a fine
not exceeding two hundred fifty dollars ($250).

(c) Except for the violations enumerated in subdivision (d) of
Section 13202.5 of the Vehicle Code, and Section 14601.1 of the
Vehicle Code based upon failure to appear, a conviction for an
offense made an infraction under subdivision (d) of Section 17 is
not grounds for the suspension, revocation, or denial of a license,
or for the revocation of probation or parole of the person convicted.

begin delete SEC. 380. end delete
begin insert SEC. 384. end insert   

Section 132.5 of the Penal Code, as amended by
Section 223 of Chapter 62 of the Statutes of 2003, is amended to
read:

132.5.  

(a) The Legislature supports and affirms the
constitutional right of every person to communicate on any subject.
This section is intended to preserve the right of every accused
person to a fair trial, the right of the people to due process of law,
and the integrity of judicial proceedings. This section is not
intended to prevent any person from disseminating any information
or opinion.

The Legislature hereby finds and declares that the disclosure for
valuable consideration of information relating to crimes by
prospective witnesses can cause the loss of credible evidence in
criminal trials and threatens to erode the reliability of verdicts.

The Legislature further finds and declares that the disclosure for
valuable consideration of information relating to crimes by
prospective witnesses creates an appearance of injustice that is
destructive of public confidence.

(b) A person who is a witness to an event or occurrence that he
or she knows is a crime or who has personal knowledge of facts
that he or she knows or reasonably should know may require that
person to be called as a witness in a criminal prosecution shall not
accept or receive, directly or indirectly, any money or its equivalent
in consideration for providing information obtained as a result of
witnessing the event or occurrence or having personal knowledge
of the facts.

(c) A person who is a witness to an event or occurrence that he
or she reasonably should know is a crime shall not accept or
receive, directly or indirectly, any money or its equivalent in
consideration for providing information obtained as a result of his
or her witnessing the event or occurrence.

(d) The Attorney General or the district attorney of the county
in which an alleged violation of subdivision (c) occurs may institute
a civil proceeding. Where a final judgment is rendered in the civil
proceeding, the defendant shall be punished for the violation of
subdivision (c) by a fine equal to 150 percent of the amount
received or contracted for by the person.

(e) A violation of subdivision (b) is a misdemeanor punishable
by imprisonment for a term not exceeding six months in a county
jail, a fine not exceeding three times the amount of compensation
requested, accepted, or received, or both the imprisonment and
fine.

(f) This section does not apply if more than one year has elapsed
from the date of any criminal act related to the information that is
provided under subdivision (b) or (c) unless prosecution has
commenced for that criminal act. If prosecution has commenced,
this section shall remain applicable until the final judgment in the
action.

(g) This section does not apply to any of the following
circumstances:

(1) Lawful compensation paid to expert witnesses, investigators,
employees, or agents by a prosecutor, law enforcement agency,
or an attorney employed to represent a person in a criminal matter.

(2) Lawful compensation provided to an informant by a
prosecutor or law enforcement agency.

(3) Compensation paid to a publisher, editor, reporter, writer,
or other person connected with or employed by a newspaper,
magazine, or other publication or a television or radio news reporter
or other person connected with a television or radio station, for
disclosing information obtained in the ordinary course of business.

(4) Statutorily authorized rewards offered by governmental
agencies or private reward programs offered by victims of crimes
for information leading to the arrest and conviction of specified
offenders.

(5) Lawful compensation provided to a witness participating in
the Witness Relocation and Assistance Program established
pursuant to Title 7.5 (commencing with Section 14020) of Part 4.

(h) For purposes of this section, “information” does not include
a photograph, videotape, audiotape, or any other direct recording
of an event or occurrence.

(i) For purposes of this section, “victims of crimes” shall be
construed in a manner consistent with Section 28 of Article I of
the California Constitution, and shall include victims, as defined
in subdivision (3) of Section 136.

begin delete SEC. 381. end delete
begin insert SEC. 385. end insert   

Section 264.2 of the Penal Code is amended to read:

264.2.  

(a) Whenever there is an alleged violation or violations
of subdivision (e) of Section 243, or Section 261, 261.5, 262, 273.5,
286, 288a, or 289, the law enforcement officer assigned to the case
shall immediately provide the victim of the crime with the “Victims
of Domestic Violence” card, as specified in subparagraph (H) of
paragraph (9) of subdivision (c) of Section 13701.

(b) (1) The law enforcement officer, or his or her agency, shall
immediately notify the local rape victim counseling center,
whenever a victim of an alleged violation of Section 261, 261.5,
262, 286, 288a, or 289 is transported to a hospital for any medical
evidentiary or physical examination. The hospital may notify the
local rape victim counseling center, when the victim of the alleged
violation of Section 261, 261.5, 262, 286, 288a, or 289 is presented
to the hospital for the medical or evidentiary physical examination,
upon approval of the victim. The victim has the right to have a
sexual assault counselor, as defined in Section 1035.2 of the
Evidence Code, and a support person of the victim’s choosing
present at any medical evidentiary or physical examination.

(2) Prior to the commencement of any initial medical evidentiary
or physical examination arising out of a sexual assault, a victim
shall be notified orally or in writing by the medical provider that
the victim has the right to have present a sexual assault counselor
and at least one other support person of the victim’s choosing.

(3) The hospital may verify with the law enforcement officer,
or his or her agency, whether the local rape victim counseling
center has been notified, upon the approval of the victim.

(4) A support person may be excluded from a medical
evidentiary or physical examination if the law enforcement officer
or medical provider determines that the presence of that individual
would be detrimental to the purpose of the examination.

begin delete SEC. 382. end delete
begin insert SEC. 386. end insert   

Section 295.2 of the Penal Code is amended to read:

295.2.  

The DNA and forensic identification database and
databank and the Department of Justice DNA Laboratory shall not
be used as a source of genetic material for testing, research, or
experiments, by any person, agency, or entity seeking to find a
causal link between genetics and behavior or health.

begin delete SEC. 383. end delete
begin insert SEC. 387. end insert   

Section 300.2 of the Penal Code, as added by Section
2 of Chapter 696 of the Statutes of 1998, is amended and
renumbered to read:

300.4.  

The provisions of this chapter are severable. If any
provision of this chapter or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application.

begin delete SEC. 384. end delete
begin insert SEC. 388. end insert   

Section 308 of the Penal Code is amended to read:

308.  

(a) (1) Every person, firm, or corporation that knowingly
or under circumstances in which it has knowledge, or should
otherwise have grounds for knowledge, sells, gives, or in any way
furnishes to another person who is under the age of 18 years any
tobacco, cigarette, or cigarette papers, or blunt wraps, or any other
preparation of tobacco, or any other instrument or paraphernalia
that is designed for the smoking or ingestion of tobacco, products
prepared from tobacco, or any controlled substance, is subject to
either a criminal action for a misdemeanor or to a civil action
brought by a city attorney, a county counsel, or a district attorney,
punishable by a fine of two hundred dollars ($200) for the first
offense, five hundred dollars ($500) for the second offense, and
one thousand dollars ($1,000) for the third offense.

Notwithstanding Section 1464 or any other law, 25 percent of
each civil and criminal penalty collected pursuant to this
subdivision shall be paid to the office of the city attorney, county
counsel, or district attorney, whoever is responsible for bringing
the successful action, and 25 percent of each civil and criminal
penalty collected pursuant to this subdivision shall be paid to the
city or county for the administration and cost of the community
service work component provided in subdivision (b).

Proof that a defendant, or his or her employee or agent,
demanded, was shown, and reasonably relied upon evidence of
majority shall be defense to any action brought pursuant to this
subdivision. Evidence of majority of a person is a facsimile of or
a reasonable likeness of a document issued by a federal, state,
county, or municipal government, or subdivision or agency thereof,
including, but not limited to, a motor vehicle operator’s license, a
registration certificate issued under the federal Selective Service
Act, or an identification card issued to a member of the Armed
Forces.

For purposes of this section, the person liable for selling or
furnishing tobacco products to minors by a tobacco vending
machine shall be the person authorizing the installation or
placement of the tobacco vending machine upon premises he or
she manages or otherwise controls and under circumstances in
which he or she has knowledge, or should otherwise have grounds
for knowledge, that the tobacco vending machine will be utilized
by minors.

(2) For purposes of this section, “blunt wraps” means cigar
papers or cigar wrappers of all types that are designed for smoking
or ingestion of tobacco products and contain less than 50 percent
tobacco.

(b) Every person under the age of 18 years who purchases,
receives, or possesses any tobacco, cigarette, or cigarette papers,
or any other preparation of tobacco, or any other instrument or
paraphernalia that is designed for the smoking of tobacco, products
prepared from tobacco, or any controlled substance shall, upon
conviction, be punished by a fine of seventy-five dollars ($75) or
30 hours of community service work.

(c) Every person, firm, or corporation that sells, or deals in
tobacco or any preparation thereof, shall post conspicuously and
keep so posted in his, her, or their place of business at each point
of purchase the notice required pursuant to subdivision (b) of
Section 22952 of the Business and Professions Code, and any
person failing to do so shall, upon conviction, be punished by a
fine of fifty dollars ($50) for the first offense, one hundred dollars
($100) for the second offense, two hundred fifty dollars ($250) for
the third offense, and five hundred dollars ($500) for the fourth
offense and each subsequent violation of this provision, or by
imprisonment in a county jail not exceeding 30 days.

(d) For purposes of determining the liability of persons, firms,
or corporations controlling franchises or business operations in
multiple locations for the second and subsequent violations of this
section, each individual franchise or business location shall be
deemed a separate entity.

(e) Notwithstanding subdivision (b), any person under 18 years
of age who purchases, receives, or possesses any tobacco, cigarette,
or cigarette papers, or any other preparation of tobacco, any other
instrument or paraphernalia that is designed for the smoking of
tobacco, or products prepared from tobacco is immune from
prosecution for that purchase, receipt, or possession while
participating in either of the following:

(1) An enforcement activity that complies with the guidelines
adopted pursuant to subdivisions (c) and (d) of Section 22952 of
the Business and Professions Code.

(2) An activity conducted by the State Department of Public
Health, a local health department, or a law enforcement agency
for the purpose of determining or evaluating youth tobacco
purchase rates.

(f) It is the Legislature’s intent to regulate the subject matter of
this section. As a result, a city, county, or city and county shall not
adopt any ordinance or regulation inconsistent with this section.

begin delete SEC. 385. end delete
begin insert SEC. 389. end insert   

Section 602 of the Penal Code is amended to read:

602.  

Except as provided in subdivisions (u), (v), and (x), and
Section 602.8, every person who willfully commits a trespass by
any of the following acts is guilty of a misdemeanor:

(a) Cutting down, destroying, or injuring any kind of wood or
timber standing or growing upon the lands of another.

(b) Carrying away any kind of wood or timber lying on those
lands.

(c) Maliciously injuring or severing from the freehold of another
anything attached to it, or its produce.

(d) Digging, taking, or carrying away from any lot situated
within the limits of any incorporated city, without the license of
the owner or legal occupant, any earth, soil, or stone.

(e) Digging, taking, or carrying away from land in any city or
town laid down on the map or plan of the city, or otherwise
recognized or established as a street, alley, avenue, or park, without
the license of the proper authorities, any earth, soil, or stone.

(f) Maliciously tearing down, damaging, mutilating, or
destroying any sign, signboard, or notice placed upon, or affixed
to, any property belonging to the state, or to any city, county, city
and county, town, or village, or upon any property of any person,
by the state or by an automobile association, which sign, signboard,
or notice is intended to indicate or designate a road or a highway,
or is intended to direct travelers from one point to another, or
relates to fires, fire control, or any other matter involving the
protection of the property, or putting up, affixing, fastening,
printing, or painting upon any property belonging to the state, or
to any city, county, town, or village, or dedicated to the public, or
upon any property of any person, without license from the owner,
any notice, advertisement, or designation of, or any name for any
commodity, whether for sale or otherwise, or any picture, sign, or
device intended to call attention to it.

(g) Entering upon any lands owned by any other person whereon
oysters or other shellfish are planted or growing; or injuring,
gathering, or carrying away any oysters or other shellfish planted,
growing, or on any of those lands, whether covered by water or
not, without the license of the owner or legal occupant; or
damaging, destroying, or removing, or causing to be removed,
damaged, or destroyed, any stakes, marks, fences, or signs intended
to designate the boundaries and limits of any of those lands.

(h) (1) Entering upon lands or buildings owned by any other
person without the license of the owner or legal occupant, where
signs forbidding trespass are displayed, and whereon cattle, goats,
pigs, sheep, fowl, or any other animal is being raised, bred, fed,
or held for the purpose of food for human consumption; or injuring,
gathering, or carrying away any animal being housed on any of
those lands, without the license of the owner or legal occupant; or
damaging, destroying, or removing, or causing to be removed,
damaged, or destroyed, any stakes, marks, fences, or signs intended
to designate the boundaries and limits of any of those lands.

(2) In order for there to be a violation of this subdivision, the
trespass signs under paragraph (1) shall be displayed at intervals
not less than three per mile along all exterior boundaries and at all
roads and trails entering the land.

(3) This subdivision shall not be construed to preclude
prosecution or punishment under any other law, including, but not
limited to, grand theft or any provision that provides for a greater
penalty or longer term of imprisonment.

(i) Willfully opening, tearing down, or otherwise destroying
any fence on the enclosed land of another, or opening any gate,
bar, or fence of another and willfully leaving it open without the
written permission of the owner, or maliciously tearing down,
mutilating, or destroying any sign, signboard, or other notice
forbidding shooting on private property.

(j) Building fires upon any lands owned by another where signs
forbidding trespass are displayed at intervals not greater than one
mile along the exterior boundaries and at all roads and trails
entering the lands, without first having obtained written permission
from the owner of the lands or the owner’s agent, or the person in
lawful possession.

(k) Entering any lands, whether unenclosed or enclosed by
fence, for the purpose of injuring any property or property rights
or with the intention of interfering with, obstructing, or injuring
any lawful business or occupation carried on by the owner of the
land, the owner’s agent, or the person in lawful possession.

(l) Entering any lands under cultivation or enclosed by fence,
belonging to, or occupied by, another, or entering upon uncultivated
or unenclosed lands where signs forbidding trespass are displayed
at intervals not less than three to the mile along all exterior
boundaries and at all roads and trails entering the lands without
the written permission of the owner of the land, the owner’s agent,
or the person in lawful possession, and any of the following:

(1) Refusing or failing to leave the lands immediately upon
being requested by the owner of the land, the owner’s agent, or by
the person in lawful possession to leave the lands.

(2) Tearing down, mutilating, or destroying any sign, signboard,
or notice forbidding trespass or hunting on the lands.

(3) Removing, injuring, unlocking, or tampering with any lock
on any gate on or leading into the lands.

(4) Discharging any firearm.

(m) Entering and occupying real property or structures of any
kind without the consent of the owner, the owner’s agent, or the
person in lawful possession.

(n) Driving any vehicle, as defined in Section 670 of the Vehicle
Code, upon real property belonging to, or lawfully occupied by,
another and known not to be open to the general public, without
the consent of the owner, the owner’s agent, or the person in lawful
possession. This subdivision does not apply to any person described
in Section 22350 of the Business and Professions Code who is
making a lawful service of process, provided that upon exiting the
vehicle, the person proceeds immediately to attempt the service
of process, and leaves immediately upon completing the service
of process or upon the request of the owner, the owner’s agent, or
the person in lawful possession.

(o) Refusing or failing to leave land, real property, or structures
belonging to or lawfully occupied by another and not open to the
general public, upon being requested to leave by (1) a peace officer
at the request of the owner, the owner’s agent, or the person in
lawful possession, and upon being informed by the peace officer
that he or she is acting at the request of the owner, the owner’s
agent, or the person in lawful possession, or (2) the owner, the
owner’s agent, or the person in lawful possession. The owner, the
owner’s agent, or the person in lawful possession shall make a
separate request to the peace officer on each occasion when the
peace officer’s assistance in dealing with a trespass is requested.
However, a single request for a peace officer’s assistance may be
made to cover a limited period of time not to exceed 30 days and
identified by specific dates, during which there is a fire hazard or
the owner, owner’s agent, or person in lawful possession is absent
from the premises or property. In addition, a single request for a
peace officer’s assistance may be made for a period not to exceed
12 months when the premises or property is closed to the public
and posted as being closed. The requestor shall inform the law
enforcement agency to which the request was made when the
assistance is no longer desired, before the period not exceeding
12 months expires. The request for assistance shall expire upon
transfer of ownership of the property or upon a change in the person
in lawful possession. However, this subdivision does not apply to
persons engaged in lawful labor union activities which are
permitted to be carried out on the property by the
Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations
Act of 1975 (Part 3.5 (commencing with Section 1140) of Division
2 of the Labor Code) or by the federal National Labor Relations
Act. For purposes of this section, land, real property, or structures
owned or operated by any housing authority for tenants, as defined
in Section 34213.5 of the Health and Safety Code, constitutes
property not open to the general public; however, this subdivision
shall not apply to persons on the premises who are engaging in
activities protected by the California or United States Constitution,
or to persons who are on the premises at the request of a resident
or management and who are not loitering or otherwise suspected
of violating or actually violating any law or ordinance.

(p) Entering upon any lands declared closed to entry as provided
in Section 4256 of the Public Resources Code, if the closed areas
have been posted with notices declaring the closure, at intervals
not greater than one mile along the exterior boundaries or along
roads and trails passing through the lands.

(q) Refusing or failing to leave a public building of a public
agency during those hours of the day or night when the building
is regularly closed to the public upon being requested to do so by
a regularly employed guard, watchperson, or custodian of the
public agency owning or maintaining the building or property, if
the surrounding circumstances would indicate to a reasonable
person that the person has no apparent lawful business to pursue.

(r) Knowingly skiing in an area or on a ski trail that is closed
to the public and that has signs posted indicating the closure.

(s) Refusing or failing to leave a hotel or motel, where he or
she has obtained accommodations and has refused to pay for those
accommodations, upon request of the proprietor or manager, and
the occupancy is exempt, pursuant to subdivision (b) of Section
1940 of the Civil Code, from Chapter 2 (commencing with Section
1940) of Title 5 of Part 4 of Division 3 of the Civil Code. For
purposes of this subdivision, occupancy at a hotel or motel for a
continuous period of 30 days or less shall, in the absence of a
written agreement to the contrary, or other written evidence of a
periodic tenancy of indefinite duration, be exempt from Chapter
2 (commencing with Section 1940) of Title 5 of Part 4 of Division
3 of the Civil Code.

(t) (1) Entering upon private property, including contiguous
land, real property, or structures thereon belonging to the same
owner, whether or not generally open to the public, after having
been informed by a peace officer at the request of the owner, the
owner’s agent, or the person in lawful possession, and upon being
informed by the peace officer that he or she is acting at the request
of the owner, the owner’s agent, or the person in lawful possession,
that the property is not open to the particular person; or refusing
or failing to leave the property upon being asked to leave the
property in the manner provided in this subdivision.

(2) This subdivision applies only to a person who has been
convicted of a crime committed upon the particular private
property.

(3) A single notification or request to the person as set forth
above shall be valid and enforceable under this subdivision unless
and until rescinded by the owner, the owner’s agent, or the person
in lawful possession of the property.

(4) Where the person has been convicted of a violent felony, as
described in subdivision (c) of Section 667.5, this subdivision
applies without time limitation. Where the person has been
convicted of any other felony, this subdivision applies for no more
than five years from the date of conviction. Where the person has
been convicted of a misdemeanor, this subdivision applies for no
more than two years from the date of conviction. Where the person
was convicted for an infraction pursuant to Section 490.1, this
subdivision applies for no more than one year from the date of
conviction. This subdivision does not apply to convictions for any
other infraction.

(u) (1) Knowingly entering, by an unauthorized person, upon
any airport operations area, passenger vessel terminal, or public
transit facility if the area has been posted with notices restricting
access to authorized personnel only and the postings occur not
greater than every 150 feet along the exterior boundary, to the
extent, in the case of a passenger vessel terminal, as defined in
subparagraph (B) of paragraph (3), that the exterior boundary
extends shoreside. To the extent that the exterior boundary of a
passenger vessel terminal operations area extends waterside, this
prohibition applies if notices have been posted in a manner
consistent with the requirements for the shoreside exterior
boundary, or in any other manner approved by the captain of the
port.

(2) A person convicted of a violation of paragraph (1) shall be
punished as follows:

(A) By a fine not exceeding one hundred dollars ($100).

(B) By imprisonment in a county jail not exceeding six months,
or by a fine not exceeding one thousand dollars ($1,000), or by
both that fine and imprisonment, if the person refuses to leave the
airport or passenger vessel terminal after being requested to leave
by a peace officer or authorized personnel.

(C) By imprisonment in a county jail not exceeding six months,
or by a fine not exceeding one thousand dollars ($1,000), or by
both that fine and imprisonment, for a second or subsequent
offense.

(3) As used in this subdivision, the following definitions shall
control:

(A) “Airport operations area” means that part of the airport used
by aircraft for landing, taking off, surface maneuvering, loading
and unloading, refueling, parking, or maintenance, where aircraft
support vehicles and facilities exist, and which is not for public
use or public vehicular traffic.

(B) “Passenger vessel terminal” means only that portion of a
harbor or port facility, as described in Section 105.105(a)(2) of
Title 33 of the Code of Federal Regulations, with a secured area
that regularly serves scheduled commuter or passenger operations.
For the purposes of this section, “passenger vessel terminal” does
not include any area designated a public access area pursuant to
Section 105.106 of Title 33 of the Code of Federal Regulations.

(C) “Public transit facility” has the same meaning as specified
in Section 171.7.

(D) “Authorized personnel” means any person who has a valid
airport identification card issued by the airport operator or has a
valid airline identification card recognized by the airport operator,
or any person not in possession of an airport or airline identification
card who is being escorted for legitimate purposes by a person
with an airport or airline identification card. “Authorized
personnel” also means any person who has a valid port
identification card issued by the harbor operator, or who has a
valid company identification card issued by a commercial maritime
enterprise recognized by the harbor operator, or any other person
who is being escorted for legitimate purposes by a person with a
valid port or qualifying company identification card. “Authorized
personnel” also means any person who has a valid public transit
employee identification.

(E) “Airport” means any facility whose function is to support
commercial aviation.

(v) (1) Except as permitted by federal law, intentionally
avoiding submission to the screening and inspection of one’s
person and accessible property in accordance with the procedures
being applied to control access when entering or reentering a sterile
area of an airport, passenger vessel terminal, as defined in
subdivision (u), or public transit facility, as defined in Section
171.7, if the sterile area is posted with a statement providing
reasonable notice that prosecution may result from a trespass
described in this subdivision, is a violation of this subdivision,
punishable by a fine of not more than five hundred dollars ($500)
for the first offense. A second and subsequent violation is a
misdemeanor, punishable by imprisonment in a county jail for a
period of not more than one year, or by a fine not to exceed one
thousand dollars ($1,000), or by both that fine and imprisonment.

(2) Notwithstanding paragraph (1), if a first violation of this
subdivision is responsible for the evacuation of an airport terminal,
passenger vessel terminal, or public transit facility and is
responsible in any part for delays or cancellations of scheduled
flights or departures, it is punishable by imprisonment of not more
than one year in a county jail.

(w) Refusing or failing to leave a battered women’s shelter at
any time after being requested to leave by a managing authority
of the shelter.

(1) A person who is convicted of violating this subdivision shall
be punished by imprisonment in a county jail for not more than
one year.

(2) The court may order a defendant who is convicted of
violating this subdivision to make restitution to a battered woman
in an amount equal to the relocation expenses of the battered
woman and her children if those expenses are incurred as a result
of trespass by the defendant at a battered women’s shelter.

(x) (1) Knowingly entering or remaining in a neonatal unit,
maternity ward, or birthing center located in a hospital or clinic
without lawful business to pursue therein, if the area has been
posted so as to give reasonable notice restricting access to those
with lawful business to pursue therein and the surrounding
circumstances would indicate to a reasonable person that he or she
has no lawful business to pursue therein. Reasonable notice is that
which would give actual notice to a reasonable person, and is
posted, at a minimum, at each entrance into the area.

(2) A person convicted of a violation of paragraph (1) shall be
punished as follows:

(A) As an infraction, by a fine not exceeding one hundred dollars
($100).

(B) By imprisonment in a county jail not exceeding one year,
or by a fine not exceeding one thousand dollars ($1,000), or by
both that fine and imprisonment, if the person refuses to leave the
posted area after being requested to leave by a peace officer or
other authorized person.

(C) By imprisonment in a county jail not exceeding one year,
or by a fine not exceeding two thousand dollars ($2,000), or by
both that fine and imprisonment, for a second or subsequent
offense.

(D) If probation is granted or the execution or imposition of
sentencing is suspended for any person convicted under this
subdivision, it shall be a condition of probation that the person
participate in counseling, as designated by the court, unless the
court finds good cause not to impose this requirement. The court
shall require the person to pay for this counseling, if ordered, unless
good cause not to pay is shown.

(y) Except as permitted by federal law, intentionally avoiding
submission to the screening and inspection of one’s person and
accessible property in accordance with the procedures being applied
to control access when entering or reentering a courthouse or a
city, county, city and county, or state building if entrances to the
courthouse or the city, county, city and county, or state building
have been posted with a statement providing reasonable notice
that prosecution may result from a trespass described in this
subdivision.

begin delete SEC. 386. end delete
begin insert SEC. 390. end insert   

Section 626.9 of the Penal Code is amended to read:

626.9.  

(a) This section shall be known, and may be cited, as
the Gun-Free School Zone Act of 1995.

(b) A person who possesses a firearm in a place that the person
knows, or reasonably should know, is a school zone, as defined in
paragraph (1) of subdivision (e), unless it is with the written
permission of the school district superintendent, his or her designee,
or equivalent school authority, shall be punished as specified in
subdivision (f).

(c) Subdivision (b) does not apply to the possession of a firearm
under any of the following circumstances:

(1) Within a place of residence or place of business or on private
property, if the place of residence, place of business, or private
property is not part of the school grounds and the possession of
the firearm is otherwise lawful.

(2) When the firearm is an unloaded pistol, revolver, or other
firearm capable of being concealed on the person and is in a locked
container or within the locked trunk of a motor vehicle.

This section does not prohibit or limit the otherwise lawful
transportation of any other firearm, other than a pistol, revolver,
or other firearm capable of being concealed on the person, in
accordance with state law.

(3) When the person possessing the firearm reasonably believes
that he or she is in grave danger because of circumstances forming
the basis of a current restraining order issued by a court against
another person or persons who has or have been found to pose a
threat to his or her life or safety. This subdivision may not apply
when the circumstances involve a mutual restraining order issued
pursuant to Division 10 (commencing with Section 6200) of the
Family Code absent a factual finding of a specific threat to the
person’s life or safety. Upon a trial for violating subdivision (b),
the trier of a fact shall determine whether the defendant was acting
out of a reasonable belief that he or she was in grave danger.

(4) When the person is exempt from the prohibition against
carrying a concealed firearm pursuant to Section 25615, 25625,
25630, or 25645.

(d) Except as provided in subdivision (b), it shall be unlawful
for any person, with reckless disregard for the safety of another,
to discharge, or attempt to discharge, a firearm in a school zone,
as defined in paragraph (1) of subdivision (e).

The prohibition contained in this subdivision does not apply to
the discharge of a firearm to the extent that the conditions of
paragraph (1) of subdivision (c) are satisfied.

(e) As used in this section, the following definitions shall apply:

(1) “School zone” means an area in, or on the grounds of, a
public or private school providing instruction in kindergarten or
grades 1 to 12, inclusive, or within a distance of 1,000 feet from
the grounds of the public or private school.

(2) “Firearm” has the same meaning as that term is given in
subdivisions (a) to (d), inclusive, of Section 16520.

(3) “Locked container” has the same meaning as that term is
given in Section 16850.

(4) “Concealed firearm” has the same meaning as that term is
given in Sections 25400 and 25610.

(f) (1) Any person who violates subdivision (b) by possessing
a firearm in, or on the grounds of, a public or private school
providing instruction in kindergarten or grades 1 to 12, inclusive,
shall be punished by imprisonment pursuant to subdivision (h) of
Section 1170 for two, three, or five years.

(2) Any person who violates subdivision (b) by possessing a
firearm within a distance of 1,000 feet from the grounds of a public
or private school providing instruction in kindergarten or grades
1 to 12, inclusive, shall be punished as follows:

(A) By imprisonment pursuant to subdivision (h) of Section
1170 for two, three, or five years, if any of the following
circumstances apply:

(i) If the person previously has been convicted of any felony,
or of any crime made punishable by any provision listed in Section
16580.

(ii) If the person is within a class of persons prohibited from
possessing or acquiring a firearm pursuant to Chapter 2
(commencing with Section 29800) or Chapter 3 (commencing with
Section 29900) of Division 9 of Title 4 of Part 6 of this code or
Section 8100 or 8103 of the Welfare and Institutions Code.

(iii) If the firearm is any pistol, revolver, or other firearm capable
of being concealed upon the person and the offense is punished as
a felony pursuant to Section 25400.

(B) By imprisonment in a county jail for not more than one year
or by imprisonment pursuant to subdivision (h) of Section 1170
for two, three, or five years, in all cases other than those specified
in subparagraph (A).

(3) Any person who violates subdivision (d) shall be punished
by imprisonment pursuant to subdivision (h) of Section 1170 for
three, five, or seven years.

(g) (1) Every person convicted under this section for a
misdemeanor violation of subdivision (b) who has been convicted
previously of a misdemeanor offense enumerated in Section 23515
shall be punished by imprisonment in a county jail for not less
than three months, or if probation is granted or if the execution or
imposition of sentence is suspended, it shall be a condition thereof
that he or she be imprisoned in a county jail for not less than three
months.

(2) Every person convicted under this section of a felony
violation of subdivision (b) or (d) who has been convicted
previously of a misdemeanor offense enumerated in Section 23515,
if probation is granted or if the execution of sentence is suspended,
it shall be a condition thereof that he or she be imprisoned in a
county jail for not less than three months.

(3) Every person convicted under this section for a felony
violation of subdivision (b) or (d) who has been convicted
previously of any felony, or of any crime made punishable by any
provision listed in Section 16580, if probation is granted or if the
execution or imposition of sentence is suspended, it shall be a
condition thereof that he or she be imprisoned in a county jail for
not less than three months.

(4) The court shall apply the three-month minimum sentence
specified in this subdivision, except in unusual cases where the
interests of justice would best be served by granting probation or
suspending the execution or imposition of sentence without the
minimum imprisonment required in this subdivision or by granting
probation or suspending the execution or imposition of sentence
with conditions other than those set forth in this subdivision, in
which case the court shall specify on the record and shall enter on
the minutes the circumstances indicating that the interests of justice
would best be served by this disposition.

(h) Notwithstanding Section 25605, a person who brings or
possesses a loaded firearm upon the grounds of a campus of, or
buildings owned or operated for student housing, teaching,
research, or administration by, a public or private university or
college, that are contiguous or are clearly marked university
property, unless it is with the written permission of the university
or college president, his or her designee, or equivalent university
or college authority, shall be punished by imprisonment pursuant
to subdivision (h) of Section 1170 for two, three, or four years.
Notwithstanding subdivision (k), a university or college shall post
a prominent notice at primary entrances on noncontiguous property
stating that firearms are prohibited on that property pursuant to
this subdivision.

(i) Notwithstanding Section 25605, a person who brings or
possesses a firearm upon the grounds of a campus of, or buildings
owned or operated for student housing, teaching, research, or
administration by, a public or private university or college, that
are contiguous or are clearly marked university property, unless
it is with the written permission of the university or college
president, his or her designee, or equivalent university or college
authority, shall be punished by imprisonment pursuant to
subdivision (h) of Section 1170 for one, two, or three years.
Notwithstanding subdivision (k), a university or college shall post
a prominent notice at primary entrances on noncontiguous property
stating that firearms are prohibited on that property pursuant to
this subdivision.

(j) For purposes of this section, a firearm shall be deemed to be
loaded when there is an unexpended cartridge or shell, consisting
of a case that holds a charge of powder and a bullet or shot, in, or
attached in any manner to, the firearm, including, but not limited
to, in the firing chamber, magazine, or clip thereof attached to the
firearm. A muzzle-loader firearm shall be deemed to be loaded
when it is capped or primed and has a powder charge and ball or
shot in the barrel or cylinder.

(k) This section does not require that notice be posted regarding
the proscribed conduct.

(l) This section does not apply to a duly appointed peace officer
as defined in Chapter 4.5 (commencing with Section 830) of Title
3 of Part 2, a full-time paid peace officer of another state or the
federal government who is carrying out official duties while in
California, any person summoned by any of these officers to assist
in making arrests or preserving the peace while he or she is actually
engaged in assisting the officer, a member of the military forces
of this state or of the United States who is engaged in the
performance of his or her duties, a person holding a valid license
to carry the firearm pursuant to Chapter 4 (commencing with
Section 26150) of Division 5 of Title 4 of Part 6, or an armored
vehicle guard, engaged in the performance of his or her duties, as
defined in subdivision (d) of Section 7582.1 of the Business and
Professions Code.

(m) This section does not apply to a security guard authorized
to carry a loaded firearm pursuant to Article 4 (commencing with
Section 26000) of Chapter 3 of Division 5 of Title 4 of Part 6.

(n) This section does not apply to an existing shooting range at
a public or private school or university or college campus.

(o) This section does not apply to an honorably retired peace
officer authorized to carry a concealed or loaded firearm pursuant
to any of the following:

(1) Article 2 (commencing with Section 25450) of Chapter 2
of Division 5 of Title 4 of Part 6.

(2) Section 25650.

(3) Sections 25900 to 25910, inclusive.

(4) Section 26020.

begin delete SEC. 387. end delete
begin insert SEC. 391. end insert   

Section 814 of the Penal Code is amended to read:

814.  

A warrant of arrest issued under Section 813 may be in
substantially the following form:

 

County of ____

The people of the State of California to any peace officer of said
State:

Complaint on oath having this day been laid before me that the
crime of ____ (designating it generally) has been committed and
accusing ____ (naming defendant) thereof, you are therefore
commanded forthwith to arrest the above named defendant and
bring him or her before me at ____ (naming the place), or in case
of my absence or inability to act, before the nearest or most
accessible magistrate in this county.

 

Dated at     (place) this ______ day of ______, 20__.

(Signature and full official title of magistrate.)

 

 

begin delete SEC. 388. end delete
begin insert SEC. 392. end insert   

Section 830.14 of the Penal Code is amended to
read:

830.14.  

(a) A local or regional transit agency or a joint powers
agency operating rail service identified in an implementation
program adopted pursuant to Article 10 (commencing with Section
130450) of Chapter 4 of Division 12 of the Public Utilities Code
may authorize by contract designated persons as conductors
performing fare inspection duties who are employed by a railroad
corporation that operates public rail commuter transit services for
that agency to act as its agent in the enforcement of subdivisions
(a) to (d), inclusive, of Section 640 relating to the operation of the
rail service if they complete the training requirement specified in
this section.

(b) The governing board of the Altamont Commuter Express
Authority, a joint powers agency duly formed pursuant to Article
1 (commencing with Section 6500) of Chapter 5 of Division 7 of
Title 1 of the Government Code, by and between the Alameda
County Congestion Management Agency, the Santa Clara Valley
Transportation Authority, and the San Joaquin Regional Rail
Commission, may contract with designated persons to act as its
agents in the enforcement of subdivisions (a) to (d), inclusive, of
Section 640 relating to the operation of a public transportation
system if these persons complete the training requirement specified
in this section.

(c) The governing board of the Peninsula Corridor Joint Powers
Board, a joint powers agency duly formed pursuant to Article 1
(commencing with Section 6500) of Chapter 5 of Division 7 of
Title 1 of the Government Code, by and between the San Mateo
County Transit District, the Santa Clara Valley Transportation
Authority, and the City and County of San Francisco, may appoint
designated persons to act as its agents in the enforcement of
subdivisions (a) to (d), inclusive, of Section 640 relating to the
operation of a public transportation system if these persons
complete the training requirement specified in this section.

(d) The governing board of Foothill Transit, a joint powers
agency duly formed pursuant to Article 1 (commencing with
Section 6500) of Chapter 5 of Division 7 of Title 1 of the
Government Code, by and between the Cities of Arcadia, Azusa,
Baldwin Park, Bradbury, Claremont, Covina, Diamond Bar, Duarte,
El Monte, Glendora, Industry, Irwindale, La Habra Heights, La
Puente, La Verne, Monrovia, Pomona, San Dimas, South El Monte,
Temple City, Walnut, West Covina, and the County of Los
Angeles, may resolve to contract with designated persons to act
as its agents in the enforcement of subdivisions (a) to (d), inclusive,
of Section 640 relating to the operation of a public transportation
system if these persons complete the training requirement specified
in this section.

(e) The governing board of the Sacramento Regional Transit
District, a transit district duly formed pursuant to Part 14
(commencing with Section 102000) of Division 10 of the Public
Utilities Code, may designate persons regularly employed by the
district as inspectors or supervisors to enforce subdivisions (a) to
(d), inclusive, of Section 640, relating to the operation of a public
transportation system, and any ordinance adopted by the district
pursuant to subdivision (a) of Section 102122 of the Public Utilities
Code, if these persons complete the training requirement specified
in this section.

(f) The governing board of a transit district, as defined in
subdivision (b) of Section 99170 of the Public Utilities Code, may
designate employees, except for union-represented employees
employed to drive revenue-generating transit vehicles, or security
officers contracted by the transit district, to enforce subdivisions
(a) to (d), inclusive, of Section 640, and Section 640.5, and
violations of Section 99170 of the Public Utilities Code.

(g) Persons authorized pursuant to this section to enforce
subdivisions (a) to (d), inclusive, of Section 640, or Section 640.5,
or Section 99170 of the Public Utilities Code, shall complete a
specialized fare compliance course that shall be provided by the
authorizing agency. This training course shall include, but not be
limited to, the following topics:

(1) An overview of barrier-free fare inspection concepts.

(2) The scope and limitations of inspector authority.

(3) Familiarization with the elements of the infractions
enumerated in subdivisions (a) to (d), inclusive, of Section 640,
and, as applicable, the crimes enumerated in Section 640.5, and
Section 99170 of the Public Utilities Code.

(4) Techniques for conducting fare checks, including inspection
procedures, demeanor, and contacting violators.

(5) Citation issuance and court appearances.

(6) Fare media recognition.

(7) Handling argumentative violators and diffusing conflict.

(8) The mechanics of law enforcement support and interacting
with law enforcement for effective incident resolution.

(h) Persons described in this section are public officers, not
peace officers, have no authority to carry firearms or any other
weapon while performing the duties authorized in this section, and
may not exercise the powers of arrest of a peace officer while
performing the duties authorized in this section. These persons
may be authorized by the agencies specified in this section to issue
citations involving infractions relating to the operation of the rail
service specified in this section.

(i) This section does not affect the retirement or disability
benefits provided to employees described in this section or be in
violation of any collective bargaining agreement between a labor
organization and a railroad corporation.

(j) Notwithstanding any other provision of this section, the
primary responsibility of a conductor of a commuter passenger
train shall be functions related to safe train operation.

begin delete SEC. 389. end delete
begin insert SEC. 393. end insert   

The heading of Chapter 5a (commencing with
Section 852) of Title 3 of Part 2 of the Penal Code is amended and
renumbered to read:

 

Chapter  5A. Uniform Act on Fresh Pursuit

 

begin delete SEC. 390. end delete
begin insert SEC. 394. end insert   

Section 1191.15 of the Penal Code is amended to
read:

1191.15.  

(a) The court may permit the victim of any crime,
his or her parent or guardian if the victim is a minor, or the next
of kin of the victim if the victim has died, to file with the court a
written, audiotaped, or videotaped statement, or statement stored
on a CD-ROM, DVD, or any other recording medium acceptable
to the court, expressing his or her views concerning the crime, the
person responsible, and the need for restitution, in lieu of or in
addition to the person personally appearing at the time of judgment
and sentence. The court shall consider the statement filed with the
court prior to imposing judgment and sentence.

Whenever an audio or video statement or statement stored on a
CD-ROM, DVD, or other medium is filed with the court, a written
transcript of the statement shall also be provided by the person
filing the statement, and shall be made available as a public record
of the court after the judgment and sentence have been imposed.

(b) Whenever a written, audio, or video statement or statement
stored on a CD-ROM, DVD, or other medium is filed with the
court, it shall remain sealed until the time set for imposition of
judgment and sentence except that the court, the probation officer,
and counsel for the parties may view and listen to the statement
not more than two court days prior to the date set for imposition
of judgment and sentence.

(c) A person or a court shall not permit any person to duplicate,
copy, or reproduce by audio or visual means a statement submitted
to the court under the provisions of this section.

(d) Nothing in this section shall be construed to prohibit the
prosecutor from representing to the court the views of the victim,
his or her parent or guardian, the next of kin, or the California
Victim Compensation and Government Claims Board.

(e) In the event the court permits an audio or video statement
or statement stored on a CD-ROM, DVD, or other medium to be
filed, the court shall not be responsible for providing any equipment
or resources needed to assist the victim in preparing the statement.

begin delete SEC. 391. end delete
begin insert SEC. 395. end insert   

Section 2905 of the Penal Code is amended to read:

2905.  

(a) For purposes of this section, a “youth offender” is
an individual committed to the Department of Corrections and
Rehabilitation who is under 22 years of age.

(b) (1) The department shall conduct a youth offender
Institutional Classification Committee review at reception to
provide special classification consideration for every youth
offender. The youth offender Institutional Classification Committee
shall consist of the staff required by department regulations at any
Institutional Classification Committee, however at least one
member shall be a department staff member specially trained in
conducting the reviews. Training shall include, but not be limited
to, adolescent and young adult development and evidence-based
interviewing processes employing positive and motivational
techniques.

(2) The purpose of the youth offender Institutional Classification
Committee review is to meet with the youth offender and assess
the readiness of a youth offender for a lower security level or
placement permitting increased access to programs and to
encourage the youth offender to commit to positive change and
self-improvement.

(c) A youth offender shall be considered for placement at a
lower security level than corresponds with his or her classification
score or placement in a facility that permits increased access to
programs based on the Institutional Classification Committee
review and factors including, but not limited to, the following:

(1) Recent in-custody behavior while housed in juvenile or adult
facilities.

(2) Demonstrated efforts of progress toward self-improvement
in juvenile or adult facilities.

(3) Family or community ties supportive of rehabilitation.

(4) Evidence of commitment to working toward
self-improvement with a goal of being a law-abiding member of
society upon release.

(d) If the department determines, based on the review described
in subdivisions (b) and (c), that the youth offender may be
appropriately placed at a lower security level, the department shall
transfer the youth offender to a lower security level facility. If the
youth offender is denied a lower security level, then he or she shall
be considered for placement in a facility that permits increased
access to programs. If the department determines a youth offender
may appropriately be placed in a facility permitting increased
access to programs, the youth offender shall be transferred to such
a facility.

(e) If the youth offender demonstrates he or she is a safety risk
to inmates, staff, or the public, and does not otherwise demonstrate
a commitment to rehabilitation, the youth offender shall be
reclassified and placed at a security level that is consistent with
department regulations and procedures.

(f) A youth offender who at his or her initial youth offender
Institutional Classification Committee review is denied a lower
security level than corresponds with his or her placement score or
did not qualify for a placement permitting increased access to
programs due to previous incarceration history and was placed in
the highest security level shall nevertheless be eligible to have his
or her placement reconsidered pursuant to subdivisions (b) to (d),
inclusive, at his or her annual review until reaching 25 years of
age. If at an annual review it is determined that the youth offender
has had no serious rule violations for one year, the department
shall consider whether the youth would benefit from placement in
a lower level facility or placement permitting increased access to
programs.

(g) The department shall review and, as necessary, revise
existing regulations and adopt new regulations regarding
classification determinations made pursuant to this section, and
provide for training for staff.

(h) This section shall become operative on July 1, 2015.

begin delete SEC. 392. end delete
begin insert SEC. 396. end insert   

Section 3016 of the Penal Code is amended to read:

3016.  

(a) The Secretary of the Department of Corrections and
Rehabilitation shall establish the Case Management Reentry Pilot
Program for offenders under the jurisdiction of the department
who have been sentenced to a term of imprisonment under Section
1170 and are likely to benefit from a case management reentry
strategy designed to address homelessness, joblessness, mental
disorders, and developmental disabilities among offenders
transitioning from prison into the community. The purpose of the
pilot program is to implement promising and evidence-based
practices and strategies that promote improved public safety
outcomes for offenders reentering society after serving a term in
state prison and while released to parole.

(b) The program shall be initiated in at least three counties over
three years, supported by department employees focusing primarily
on case management services for eligible parolees selected for the
pilot program. Department employees shall be experienced or
trained to work as social workers with a parole population.
Selection of a parolee for participation in the pilot program does
not guarantee the availability of services.

(c) Case management social workers shall assist offenders on
parole who are assigned to the program in managing basic needs,
including housing, job training and placement, medical and mental
health care, and any additional programming or responsibilities
attendant to the terms of the offender’s reentry requirements. Case
management social workers also shall work closely with offenders
to prepare, monitor, revise, and fulfill individualized offender
reentry plans consistent with this section during the term of the
program.

(d) Individualized offender reentry plans shall focus on
connecting offenders to services for which the offender is eligible
under existing federal, state, and local rules.

(e) Case management services shall be prioritized for offenders
identified as potentially benefiting from assistance with the
following:

(1) Food, including the immediate need and long-term planning
for obtaining food.

(2) Clothing, including the immediate need to obtain appropriate
clothing.

(3) Shelter, including obtaining housing consistent with the
goals of the most independent, least restrictive and potentially
durable housing in the local community and that are feasible for
the circumstances of each reentering offender.

(4) Benefits, including, but not limited to, the California Work
Opportunity and Responsibility to Kids program, general
assistance, benefits administered by the federal Social Security
Administration, Medi-Cal, and veterans benefits.

(5) Health services, including assisting parolee clients with
accessing community mental health, medical, and dental treatment.

(6) Substance abuse services, including assisting parolee clients
with obtaining community substance abuse treatment or related
12-step program information and locations.

(7) Income, including developing and implementing a feasible
plan to obtain an income and employment reflecting the highest
level of work appropriate for a reentering offender’s abilities and
experience.

(8) Identification cards, including assisting reentering offenders
with obtaining state identification cards.

(9) Life skills, including assisting with the development of skills
concerning money management, job interviewing, resume writing,
and activities of daily living.

(10) Activities, including working with reentering offenders in
choosing and engaging in suitable and productive activities.

(11) Support systems, including working with reentering
offenders on developing a support system, which may consist of
prosocial friends, family, and community groups and activities,
such as religious activities, recovery groups, and other social
events.

(12) Academic and vocational programs, including assisting
reentering offenders in developing and implementing a realistic
plan to achieve an academic education, or vocational training, or
both.

(13) Discharge planning, including developing postparole plans
to sustain parolees’ achievements and goals to ensure long-term
community success.

(f) The department shall contract for an evaluation of the pilot
program that will assess its effectiveness in reducing recidivism
among offenders transitioning from prison into the community.

(g) The department shall submit a final report of the findings
from its evaluation of the pilot program to the Legislature and the
Governor no later than three years after the enactment of Assembly
Bill 1457 or Senate Bill 851 of the 2013?14 Regular Session. The
report shall be submitted in compliance with Section 9795 of the
Government Code.

(h) Implementation of this article is contingent on the availability
of funds and the pilot program may be limited in scope or duration
based on the availability of funds.

begin delete SEC. 393. end delete
begin insert SEC. 397. end insert   

Section 3043 of the Penal Code is amended to read:

3043.  

(a) (1) Upon request to the Department of Corrections
and Rehabilitation and verification of the identity of the requester,
notice of any hearing to review or consider the parole suitability
or the setting of a parole date for any prisoner in a state prison
shall be given by telephone, certified mail, regular mail, or
electronic mail, using the method of communication selected by
the requesting party, if that method is available, by the Board of
Parole Hearings at least 90 days before the hearing to any victim
of any crime committed by the prisoner, or to the next of kin of
the victim if the victim has died, to include the commitment crimes,
determinate term commitment crimes for which the prisoner has
been paroled, and any other felony crimes or crimes against the
person for which the prisoner has been convicted. The requesting
party shall keep the board apprised of his or her current contact
information in order to receive the notice.

(2) No later than 30 days prior to the date selected for the
hearing, any person, other than the victim, entitled to attend the
hearing shall inform the board of his or her intention to attend the
hearing and the name and identifying information of any other
person entitled to attend the hearing who will accompany him or
her.

(3) No later than 14 days prior to the date selected for the
hearing, the board shall notify every person entitled to attend the
hearing confirming the date, time, and place of the hearing.

(b) (1) The victim, next of kin, members of the victim’s family,
and two representatives designated as provided in paragraph (2)
of this subdivision have the right to appear, personally or by
counsel, at the hearing and to adequately and reasonably express
his, her, or their views concerning the prisoner and the case,
including, but not limited to, the commitment crimes, determinate
term commitment crimes for which the prisoner has been paroled,
any other felony crimes or crimes against the person for which the
prisoner has been convicted, the effect of the enumerated crimes
on the victim and the family of the victim, the person responsible
for these enumerated crimes, and the suitability of the prisoner for
parole.

(2) A statement provided by a representative designated by the
victim or next of kin may cover any subject about which the victim
or next of kin has the right to be heard, including any
recommendation regarding the granting of parole. The
representatives shall be designated by the victim or, in the event
that the victim is deceased or incapacitated, by the next of kin.
They shall be designated in writing for the particular hearing prior
to the hearing.

(c) A representative designated by the victim or the victim’s
next of kin for purposes of this section may be an adult person
selected by the victim or the family of the victim. The board shall
permit a representative designated by the victim or the victim’s
next of kin to attend a particular hearing, to provide testimony at
a hearing, and to submit a statement to be included in the hearing
as provided in Section 3043.2, even though the victim, next of kin,
or a member of the victim’s immediate family is present at the
hearing, and even though the victim, next of kin, or a member of
the victim’s immediate family has submitted a statement as
described in Section 3043.2.

(d) The board, in deciding whether to release the person on
parole, shall consider the entire and uninterrupted statements of
the victim or victims, next of kin, immediate family members of
the victim, and the designated representatives of the victim or next
of kin, if applicable, made pursuant to this section and shall include
in its report a statement whether the person would pose a threat to
public safety if released on parole.

(e) In those cases where there are more than two immediate
family members of the victim who wish to attend any hearing
covered in this section, the board shall allow attendance of
additional immediate family members to include the following:
spouse, children, parents, siblings, grandchildren, and grandparents.

begin delete SEC. 394. end delete
begin insert SEC. 398. end insert   

Section 3063.1 of the Penal Code is amended to
read:

3063.1.  

(a) Notwithstanding any other provision of law, and
except as provided in subdivision (d), parole shall not be suspended
or revoked for commission of a nonviolent drug possession offense
or for violating any drug-related condition of parole.

As an additional condition of parole for all such offenses or
violations, the Parole Authority shall require participation in and
completion of an appropriate drug treatment program. Vocational
training, family counseling and literacy training may be imposed
as additional parole conditions.

The Parole Authority may require any person on parole who
commits a nonviolent drug possession offense or violates any
drug-related condition of parole, and who is reasonably able to do
so, to contribute to the cost of his or her own placement in a drug
treatment program.

(b) Subdivision (a) does not apply to:

(1) Any parolee who has been convicted of one or more serious
or violent felonies in violation of subdivision (c) of Section 667.5
or Section 1192.7.

(2) A parolee who, while on parole, commits one or more
nonviolent drug possession offenses and is found to have
concurrently committed a misdemeanor not related to the use of
drugs or any felony.

(3) A parolee who refuses drug treatment as a condition of
parole.

(c) Within seven days of a finding that the parolee has either
committed a nonviolent drug possession offense or violated any
drug-related condition of parole, the Department of Corrections
and Rehabilitation, Division of Adult Parole Operations shall notify
the treatment provider designated to provide drug treatment under
subdivision (a). Within 30 days thereafter the treatment provider
shall prepare an individualized drug treatment plan and forward
it to the Parole Authority and to the California Department of
Corrections and Rehabilitation, Division of Adult Parole Operations
agent responsible for supervising the parolee. On a quarterly basis
after the parolee begins drug treatment, the treatment provider
shall prepare and forward a progress report on the individual
parolee to these entities and individuals.

(1) If at any point during the course of drug treatment the
treatment provider notifies the Department of Corrections and
Rehabilitation, Division of Adult Parole Operations that the parolee
is unamenable to the drug treatment provided, but amenable to
other drug treatments or related programs, the Department of
Corrections and Rehabilitation, Division of Adult Parole Operations
may act to modify the terms of parole to ensure that the parolee
receives the alternative drug treatment or program.

(2) If at any point during the course of drug treatment the
treatment provider notifies the Department of Corrections and
Rehabilitation, Division of Adult Parole Operations that the parolee
is unamenable to the drug treatment provided and all other forms
of drug treatment provided pursuant to subdivision (b) of Section
1210 and the amenability factors described in subparagraph (B)
of paragraph (3) of subdivision (f) of Section 1210.1, the
Department of Corrections and Rehabilitation, Division of Adult
Parole Operations may act to revoke parole. At the revocation
hearing, parole may be revoked if it is proved that the parolee is
unamenable to all drug treatment.

(3) Drug treatment services provided by subdivision (a) as a
required condition of parole may not exceed 12 months, unless
the Department of Corrections and Rehabilitation, Division of
Adult Parole Operations makes a finding supported by the record
that the continuation of treatment services beyond 12 months is
necessary for drug treatment to be successful. If that finding is
made, the Department of Corrections and Rehabilitation, Division
of Adult Parole Operations may order up to two six-month
extensions of treatment services. The provision of treatment
services under this act shall not exceed 24 months.

(d) (1) If parole is revoked pursuant to the provisions of this
subdivision, the defendant may be incarcerated pursuant to
otherwise applicable law without regard to the provisions of this
section. Parole shall be revoked if the parole violation is proved
and a preponderance of the evidence establishes that the parolee
poses a danger to the safety of others.

(2) If a parolee receives drug treatment under subdivision (a),
and during the course of drug treatment violates parole either by
committing an offense other than a nonviolent drug possession
offense, or by violating a non-drug-related condition of parole,
and the Department of Corrections and Rehabilitation, Division
of Adult Parole Operations acts to revoke parole, a hearing shall
be conducted to determine whether parole shall be revoked.

Parole may be modified or revoked if the parole violation is
proved.

(3) (A) If a parolee receives drug treatment under subdivision
(a), and during the course of drug treatment violates parole either
by committing a nonviolent drug possession offense, or a
misdemeanor for simple possession or use of drugs or drug
paraphernalia, being present where drugs are used, or failure to
register as a drug offender, or any activity similar to those listed
in subdivision (d) of Section 1210, or by violating a drug-related
condition of parole, and the Department of Corrections and
Rehabilitation, Division of Adult Parole Operations acts to revoke
parole, a hearing shall be conducted to determine whether parole
shall be revoked. Parole shall be revoked if the parole violation is
proved and a preponderance of the evidence establishes that the
parolee poses a danger to the safety of others. If parole is not
revoked, the conditions of parole may be intensified to achieve
the goals of drug treatment.

(B) If a parolee receives drug treatment under subdivision (a),
and during the course of drug treatment for the second time violates
that parole either by committing a nonviolent drug possession
offense, or by violating a drug-related condition of parole, and the
Department of Corrections and Rehabilitation, Division of Adult
Parole Operations acts for a second time to revoke parole, a hearing
shall be conducted to determine whether parole shall be revoked.
If the alleged parole violation is proved, the parolee is not eligible
for continued parole under any provision of this section and may
be reincarcerated.

(C) If a parolee already on parole at the effective date of this
act violates that parole either by committing a nonviolent drug
possession offense, or a misdemeanor for simple possession or use
of drugs or drug paraphernalia, being present where drugs are used,
or failure to register as a drug offender, or any activity similar to
those listed in paragraph (1) of subdivision (d) of Section 1210,
or by violating a drug-related condition of parole, and the
Department of Corrections and Rehabilitation, Division of Adult
Parole Operations acts to revoke parole, a hearing shall be
conducted to determine whether parole shall be revoked. Parole
shall be revoked if the parole violation is proved and a
preponderance of the evidence establishes that the parolee poses
a danger to the safety of others. If parole is not revoked, the
conditions of parole may be modified to include participation in
a drug treatment program as provided in subdivision (a). This
paragraph does not apply to any parolee who at the effective date
of this act has been convicted of one or more serious or violent
felonies in violation of subdivision (c) of Section 667.5 or Section
1192.7.

(D) If a parolee already on parole at the effective date of this
act violates that parole for the second time either by committing
a nonviolent drug possession offense, or by violating a drug-related
condition of parole, and the parole authority acts for a second time
to revoke parole, a hearing shall be conducted to determine whether
parole shall be revoked. If the alleged parole violation is proved,
the parolee may be reincarcerated or the conditions of parole may
be intensified to achieve the goals of drug treatment.

(e) The term “drug-related condition of parole” shall include a
parolee’s specific drug treatment regimen, and, if ordered by the
Department of Corrections and Rehabilitation, Division of Adult
Parole Operations pursuant to this section, employment, vocational
training, educational programs, psychological counseling, and
family counseling.

begin delete SEC. 395. end delete
begin insert SEC. 399. end insert   

Section 3440 of the Penal Code is amended to read:

3440.  

(a) Sterilization for the purpose of birth control,
including, but not limited to, during labor and delivery, of an
individual under the control of the department or a county and
imprisoned in the state prison or a reentry facility, community
correctional facility, county jail, or any other institution in which
an individual is involuntarily confined or detained under a civil or
criminal statute, is prohibited.

(b) Sterilization of an individual under the control of the
department or a county and imprisoned in the state prison or a
reentry facility, community correctional facility, county jail, or
any other institution in which an individual is involuntarily
confined or detained under a civil or criminal statute, through tubal
ligation, hysterectomy, oophorectomy, salpingectomy, or any other
means rendering an individual permanently incapable of
reproducing, is prohibited except in either of the following
circumstances:

(1) The procedure is required for the immediate preservation
of the individual’s life in an emergency medical situation.

(2) The sterilizing procedure is medically necessary, as
determined by contemporary standards of evidence-based medicine,
to treat a diagnosed condition, and all of the following requirements
are satisfied:

(A) Less invasive measures to address the medical need are
nonexistent, are refused by the individual, or are first attempted
and deemed unsuccessful by the individual, in consultation with
his or her medical provider.

(B) A second physician, independent of, and not employed by,
but authorized to provide services to individuals in the custody of,
and to receive payment for those services from, the department or
county department overseeing the confinement of the individual,
conducts an in-person consultation with the individual and confirms
the need for a medical intervention resulting in sterilization to
address the medical need.

(C) Patient consent is obtained after the individual is made aware
of the full and permanent impact the procedure will have on his
or her reproductive capacity, that future medical treatment while
under the control of the department or county will not be withheld
should the individual refuse consent to the procedure, and the side
effects of the procedure.

(c) If a sterilization procedure is performed pursuant to
paragraph (1) or (2) of subdivision (b), presterilization and
poststerilization psychological consultation and medical followup,
including providing relevant hormone therapy to address surgical
menopause, shall be made available to the individual sterilized
while under the control of the department or the county.

(d) (1) The department shall, if a sterilization procedure is
performed on one or more individuals under its control, annually
publish on its Internet Web site data related to the number of
sterilizations performed, disaggregated by race, age, medical
justification, and method of sterilization.

(2) (A) Each county jail or other institution of confinement
shall, if a sterilization procedure is performed on one or more
individuals under its control, annually submit to the Board of State
and Community Corrections data related to the number of
sterilizations performed, disaggregated by race, age, medical
justification, and method of sterilization.

(B) The Board of State and Community Corrections shall
annually publish the data received pursuant to subparagraph (A)
on its Internet Web site.

(e) The department and all county jails or other institutions of
confinement shall provide notification to all individuals under their
custody and to all employees who are involved in providing health
care services of their rights and responsibilities under this section.

(f) An employee of the department or of a county jail or other
institution of confinement who reports the sterilization of an
individual performed in violation of this section is entitled to the
protection available under subparagraphs (A) and (B) of paragraph
(2) of subdivision (a) of Section 6129, or under the California
Whistleblower Protection Act (Article 3 (commencing with Section
8547) of Chapter 6.5 of Division 1 of Title 2 of the Government
Code) or the Whistleblower Protection Act (Article 10
(commencing with Section 9149.20) of Chapter 1.5 of Part 1 of
Division 2 of Title 2 of the Government Code).

begin insert

begin insert SEC. 400. end insert   

end insert

begin insert Section 3502 of the end insert begin insert Penal Code end insert begin insert is amended to read: end insert

3502.  

begin delete Except as provided in Section 1706 of the Welfare and
Institutions Code, no biomedical end delete begin insert Biomedical end insert research shall begin insert not end insert be
conducted on any prisoner in this state.

begin delete SEC. 396. end delete
begin insert SEC. 401. end insert   

Section 4501 of the Penal Code is amended to read:

4501.  

(a) Except as provided in Section 4500, every person
confined in the state prison of this state who commits an assault
upon the person of another with a deadly weapon or instrument
shall be guilty of a felony and shall be imprisoned in the state
prison for two, four, or six years to be served consecutively.

(b) Except as provided in Section 4500, every person confined
in the state prison of this state who commits an assault upon the
person of another by any means of force likely to produce great
bodily injury shall be guilty of a felony and shall be imprisoned
in the state prison for two, four, or six years to be served
consecutively.

begin delete SEC. 397. end delete
begin insert SEC. 402. end insert   

Section 4852.08 of the Penal Code is amended to
read:

4852.08.  

During the proceedings upon the petition, the
petitioner may be represented by counsel of his or her own
selection. If the petitioner does not have counsel, he or she shall
be represented by the public defender, if there is one in the county,
and if there is none, by the adult probation officer of the county,
or if in the opinion of the court the petitioner needs counsel, the
court shall assign counsel to represent him or her.

begin delete SEC. 398. end delete
begin insert SEC. 403. end insert   

Section 4852.11 of the Penal Code is amended to
read:

4852.11.  

A peace officer shall report to the court, upon
receiving a request as provided in Section 4852.1, all known
violations of law committed by the petitioner. Upon receiving
satisfactory proof of a violation the court may deny the petition
and determine a new period of rehabilitation not to exceed the
original period of rehabilitation for the same crime. In that event,
before granting the petition, the court may require the petitioner
to fulfill all the requirements provided to be fulfilled before the
granting of the certificate under the original petition.

begin delete SEC. 399. end delete
begin insert SEC. 404. end insert   

Section 4852.12 of the Penal Code is amended to
read:

4852.12.  

(a) In a proceeding for the ascertainment and
declaration of the fact of rehabilitation under this chapter, the court,
upon the filing of the application for petition of rehabilitation, may
request from the district attorney an investigation of the residence
of the petitioner, the criminal record of the petitioner as shown by
the records of the Department of Justice, any representation made
to the court by the applicant, the conduct of the petitioner during
the period of rehabilitation, including all matters mentioned in
Section 4852.11, and any other information the court deems
necessary in making its determination. The district attorney shall,
upon request of the court, provide the court with a full and
complete report of the investigations.

(b) In any proceeding for the ascertainment and declaration of
the fact of rehabilitation under this chapter of a person convicted
of a crime the accusatory pleading of which has been dismissed
pursuant to Section 1203.4, the district attorney, upon request of
the court, shall deliver to the court the criminal record of petitioner
as shown by the records of the Department of Justice. The district
attorney may investigate any representation made to the court by
petitioner and may file with the court a report of the investigation
including all matters known to the district attorney relating to the
conduct of the petitioner, the place and duration of residence of
the petitioner during the period of rehabilitation, and all known
violations of law committed by the petitioner.

begin delete SEC. 400. end delete
begin insert SEC. 405. end insert   

Section 4852.14 of the Penal Code is amended to
read:

4852.14.  

The clerk of the court shall immediately transmit
certified copies of the certificate of rehabilitation to the Governor,
to the Board of Parole Hearings and the Department of Justice,
and, in the case of persons twice convicted of a felony, to the
Supreme Court.

begin delete SEC. 401. end delete
begin insert SEC. 406. end insert   

Section 4852.18 of the Penal Code is amended to
read:

4852.18.  

The Board of Parole Hearings shall furnish to the
clerk of the superior court of each county a set of sample forms
for a petition for certificate of rehabilitation and pardon, a notice
of filing of petition for certificate of rehabilitation and pardon, and
a certificate of rehabilitation. The clerk of the court shall have a
sufficient number of these forms printed to meet the needs of the
people of the county, and shall make these forms available at no
charge to persons requesting them.

begin delete SEC. 402. end delete
begin insert SEC. 407. end insert   

Section 11105.05 of the Penal Code is repealed.

begin delete SEC. 403. end delete
begin insert SEC. 408. end insert   

Section 13510.5 of the Penal Code is amended to
read:

13510.5.  

For the purpose of maintaining the level of
competence of state law enforcement officers, the commission
shall adopt, and may, from time to time amend, rules establishing
minimum standards for training of peace officers as defined in
Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2,
who are employed by any railroad company, the University of
California police department, a California State University police
department, the Department of Alcoholic Beverage Control, the
Division of Investigation of the Department of Consumer Affairs,
the Wildlife Protection Branch of the Department of Fish and
Wildlife, the Department of Forestry and Fire Protection, including
the Office of the State Fire Marshal, the Department of Motor
Vehicles, the California Horse Racing Board, the Food and Drug
Section of the State Department of Public Health, the Division of
Labor Standards Enforcement, the Director of Parks and
Recreation, the State Department of Health Care Services, the
Department of Toxic Substances Control, the State Department of
Social Services, the State Department of State Hospitals, the State
Department of Developmental Services, the Office of Statewide
Health Planning and Development, and the Department of Justice.
All rules shall be adopted and amended pursuant to Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code.

begin delete SEC. 404. end delete
begin insert SEC. 409. end insert   

Section 13980 of the Penal Code is amended and
renumbered to read:

13908.  

(a) The Office of Criminal Justice Planning shall
undertake a study to determine whether it would be feasible to
develop a state-operated center on computer forensics for the
purpose of collecting, compiling, and analyzing information,
including evidence seized in connection with criminal proceedings,
in computer formats to provide assistance to state and local law
enforcement agencies in the investigation and prosecution of crimes
involving computer technology.

(b) The office shall involve state and local law enforcement
agencies as well as representatives of the computer industry in the
development of the feasibility study required by this section.

(c) The office shall report its findings and conclusions to the
Legislature on or before June 30, 2000.

begin delete SEC. 405. end delete
begin insert SEC. 410. end insert   

The heading of Title 6.7 (commencing with Section
13990) of Part 4 of the Penal Code is repealed.

begin delete SEC. 406. end delete
begin insert SEC. 411. end insert   

Section 18115 of the Penal Code is amended to read:

18115.  

(a) The court shall notify the Department of Justice
when a gun violence restraining order has been issued or renewed
under this division no later than one court day after issuing or
renewing the order.

(b) The court shall notify the Department of Justice when a gun
violence restraining order has been dissolved or terminated under
this division no later than five court days after dissolving or
terminating the order. Upon receipt of either a notice of dissolution
or a notice of termination of a gun violence restraining order, the
Department of Justice shall, within 15 days, document the updated
status of any order issued under this division.

(c) The notices required to be submitted to the Department of
Justice pursuant to this section shall be submitted in an electronic
format, in a manner prescribed by the department.

(d) When notifying the Department of Justice pursuant to
subdivision (a) or (b), the court shall indicate in the notice whether
the person subject to the gun violence restraining order was present
in court to be informed of the contents of the order or if the person
failed to appear. The person’s presence in court constitutes proof
of service of notice of the terms of the order.

(e) (1) Within one business day of service, a law enforcement
officer who served a gun violence restraining order shall submit
the proof of service directly into the California Restraining and
Protective Order System, including his or her name and law
enforcement agency, and shall transmit the original proof of service
form to the issuing court.

(2) Within one business day of receipt of proof of service by a
person other than a law enforcement officer, the clerk of the court
shall submit the proof of service of a gun violence restraining order
directly into the California Restraining and Protective Order
System, including the name of the person who served the order.
If the court is unable to provide this notification to the Department
of Justice by electronic transmission, the court shall, within one
business day of receipt, transmit a copy of the proof of service to
a local law enforcement agency. The local law enforcement agency
shall submit the proof of service directly into the California
Restraining and Protective Order System within one business day
of receipt from the court.

begin delete SEC. 407. end delete
begin insert SEC. 412. end insert   

Section 18150 of the Penal Code is amended to read:

18150.  

(a) (1) An immediate family member of a person or
a law enforcement officer may file a petition requesting that the
court issue an ex parte gun violence restraining order enjoining
the subject of the petition from having in his or her custody or
control, owning, purchasing, possessing, or receiving a firearm or
ammunition.

(2) For purposes of this subdivision, “immediate family
member” has the same meaning as in paragraph (3) of subdivision
(b) of Section 422.4.

(b) A court may issue an ex parte gun violence restraining order
if the petition, supported by an affidavit made in writing and signed
by the petitioner under oath, or an oral statement taken pursuant
to subdivision (a) of Section 18155, and any additional information
provided to the court shows that there is a substantial likelihood
that both of the following are true:

(1) The subject of the petition poses a significant danger, in the
near future, of causing personal injury to himself, herself, or
another by having in his or her custody or control, owning,
purchasing, possessing, or receiving a firearm as determined by
considering the factors listed in Section 18155.

(2) An ex parte gun violence restraining order is necessary to
prevent personal injury to the subject of the petition or another
because less restrictive alternatives either have been tried and
found to be ineffective, or are inadequate or inappropriate for the
circumstances of the subject of the petition.

(c) An affidavit supporting a petition for the issuance of an ex
parte gun violence restraining order shall set forth the facts tending
to establish the grounds of the petition, or the reason for believing
that they exist.

(d) An ex parte order under this chapter shall be issued or denied
on the same day that the petition is submitted to the court, unless
the petition is filed too late in the day to permit effective review,
in which case the order shall be issued or denied on the next day
of judicial business in sufficient time for the order to be filed that
day with the clerk of the court.

begin delete SEC. 408. end delete
begin insert SEC. 413. end insert   

Section 18155 of the Penal Code is amended to read:

18155.  

(a) (1) The court, before issuing an ex parte gun
violence restraining order, shall examine on oath, the petitioner
and any witness the petitioner may produce.

(2) In lieu of examining the petitioner and any witness the
petitioner may produce, the court may require the petitioner and
any witness to submit a written affidavit signed under oath.

(b) (1) In determining whether grounds for a gun violence
restraining order exist, the court shall consider all evidence of the
following:

(A) A recent threat of violence or act of violence by the subject
of the petition directed toward another.

(B) A recent threat of violence or act of violence by the subject
of the petition directed toward himself or herself.

(C) A violation of an emergency protective order issued pursuant
to Section 646.91 or Part 3 (commencing with Section 6240) of
Division 10 of the Family Code that is in effect at the time the
court is considering the petition.

(D) A recent violation of an unexpired protective order issued
pursuant to Part 4 (commencing with Section 6300) of Division
10 of the Family Code, Section 136.2, Section 527.6 of the Code
of Civil Procedure, or Section 213.5 or 15657.03 of the Welfare
and Institutions Code.

(E) A conviction for any offense listed in Section 29805.

(F) A pattern of violent acts or violent threats within the past
12 months, including, but not limited to, threats of violence or acts
of violence by the subject of the petition directed toward himself,
herself, or another.

(2) In determining whether grounds for a gun violence
restraining order exist, the court may consider any other evidence
of an increased risk for violence, including, but not limited to,
evidence of any of the following:

(A) The unlawful and reckless use, display, or brandishing of
a firearm by the subject of the petition.

(B) The history of use, attempted use, or threatened use of
physical force by the subject of the petition against another person.

(C) A prior arrest of the subject of the petition for a felony
offense.

(D) A history of a violation by the subject of the petition of an
emergency protective order issued pursuant to Section 646.91 or
Part 3 (commencing with Section 6240) of Division 10 of the
Family Code.

(E) A history of a violation by the subject of the petition of a
protective order issued pursuant to Part 4 (commencing with
Section 6300) of Division 10 of the Family Code, Section 136.2,
Section 527.6 of the Code of Civil Procedure, or Section 213.5 or
15657.03 of the Welfare and Institutions Code.

(F) Documentary evidence, including, but not limited to, police
reports and records of convictions, of either recent criminal
offenses by the subject of the petition that involve controlled
substances or alcohol or ongoing abuse of controlled substances
or alcohol by the subject of the petition.

(G) Evidence of recent acquisition of firearms, ammunition, or
other deadly weapons.

(3) For the purposes of this subdivision, “recent” means within
the six months prior to the date the petition was filed.

(c) If the court determines that the grounds to issue an ex parte
gun violence restraining order exist, it shall issue an ex parte gun
violence restraining order that prohibits the subject of the petition
from having in his or her custody or control, owning, purchasing,
possessing, or receiving, or attempting to purchase or receive, a
firearm or ammunition, and expires no later than 21 days from the
date of the order.

begin delete SEC. 409. end delete
begin insert SEC. 414. end insert   

Section 18175 of the Penal Code is amended to read:

18175.  

(a) In determining whether to issue a gun violence
restraining order under this chapter, the court shall consider
evidence of the facts identified in paragraph (1) of subdivision (b)
of Section 18155 and may consider any other evidence of an
increased risk for violence, including, but not limited to, evidence
of the facts identified in paragraph (2) of subdivision (b) of Section
18155.

(b) At the hearing, the petitioner shall have the burden of
proving, by clear and convincing evidence, that both of the
following are true:

(1) The subject of the petition, or a person subject to an ex parte
gun violence restraining order, as applicable, poses a significant
danger of causing personal injury to himself, herself, or another
by having in his or her custody or control, owning, purchasing,
possessing, or receiving a firearm or ammunition.

(2) A gun violence restraining order is necessary to prevent
personal injury to the subject of the petition, or the person subject
to an ex parte gun violence restraining order, as applicable, or
another because less restrictive alternatives either have been tried
and found to be ineffective, or are inadequate or inappropriate for
the circumstances of the subject of the petition, or the person
subject to an ex parte gun violence restraining order, as applicable.

(c) (1) If the court finds that there is clear and convincing
evidence to issue a gun violence restraining order, the court shall
issue a gun violence restraining order that prohibits the subject of
the petition from having in his or her custody or control, owning,
purchasing, possessing, or receiving, or attempting to purchase or
receive, a firearm or ammunition.

(2) If the court finds that there is not clear and convincing
evidence to support the issuance of a gun violence restraining
order, the court shall dissolve any temporary emergency or ex
parte gun violence restraining order then in effect.

(d) A gun violence restraining order issued under this chapter
has a duration of one year, subject to termination by further order
of the court at a hearing held pursuant to Section 18185 and
renewal by further order of the court pursuant to Section 18190.

begin delete SEC. 410. end delete
begin insert SEC. 415. end insert   

Section 27210 of the Penal Code is amended to read:

27210.  

(a) The producer and facility’s manager of a gun show
or event shall prepare an annual event and security plan and
schedule that shall include, at a minimum, the following
information for each show or event:

(1) The type of show or event, including, but not limited to,
antique or general firearms.

(2) The estimated number of vendors offering firearms for sale
or display.

(3) The estimated number of attendees.

(4) The number of entrances and exits at the gun show or event
site.

(5) The location, dates, and times of the show or event.

(6) The contact person and telephone number for both the
producer and the facility.

(7) The number of sworn peace officers employed by the
producer or the facility’s manager who will be present at the show
or event.

(8) The number of nonsworn security personnel employed by
the producer or the facility’s manager who will be present at the
show or event.

(b) The annual event and security plan shall be submitted by
either the producer or the facility’s manager to the Department of
Justice and the law enforcement agency with jurisdiction over the
facility.

(c) If significant changes have been made since the annual plan
was submitted, the producer shall, not later than 15 days before
commencement of the gun show or event, submit to the department,
the law enforcement agency with jurisdiction over the facility site,
and the facility’s manager, a revised event and security plan,
including a revised list of vendors that the producer knows, or
reasonably should know, will be renting tables, space, or otherwise
participating in the gun show or event.

(d) The event and security plan shall be approved by the
facility’s manager before the event or show, after consultation with
the law enforcement agency with jurisdiction over the facility.

(e) A gun show or event shall not commence unless the
requirements of subdivisions (b), (c), and (d) are met.

begin delete SEC. 411. end delete
begin insert SEC. 416. end insert   

Section 30625 of the Penal Code is amended to read:

30625.  

Sections 30600, 30605, and 30610 do not apply to the
sale of an assault weapon or .50 BMG rifle to, or the purchase,
importation, or possession of an assault weapon or a .50 BMG
rifle by, the Department of Justice, police departments, sheriffs’
offices, marshals’ offices, the Department of Corrections and
Rehabilitation, the Department of the California Highway Patrol,
district attorneys’ offices, the Department of Fish and Wildlife,
the Department of Parks and Recreation, or the military or naval
forces of this state or of the United States, or any federal law
enforcement agency for use in the discharge of their official duties.

begin delete SEC. 412. end delete
begin insert SEC. 417. end insert   

The heading of Part 14 (commencing with Section
900) of Division 2 of the Probate Code, as added by Section 14 of
Chapter 79 of the Statutes of 1990, is repealed.

begin delete SEC. 413. end delete
begin insert SEC. 418. end insert   

The heading of Article 1 (commencing with Section
7200) of Chapter 3 of Part 1 of Division 7 of the Probate Code is
repealed.

begin insert

begin insert SEC. 419. end insert   

end insert

begin insert Section 6100 of the end insert begin insert Public Contract Code end insert begin insert is amended
to read: end insert

6100.  

(a)  begin delete Any end delete begin insert A end insert state begin delete agency or department, end delete begin insert agency, end insert as defined
in Section begin delete 10357, which end delete begin insert 10335.7 that end insert is subject to this code, shall,
prior to awarding a contract for work to be performed by a
contractor, as defined by Section 7026 of the Business and
Professions Code, verify with the begin delete Contractors’ end delete begin insert Contractors end insert State
License Board that the person seeking the contract is licensed in
a classification appropriate to the work to be undertaken.
Verification as required by this section need only be made once
every two years with respect to the same contractor.

(b) In lieu of the verification, the state entity may require the
person seeking the contract to present his or her pocket license or
certificate of licensure and provide a signed statement which
swears, under penalty of perjury, that the pocket license or
certificate of licensure presented is his or hers, is current and valid,
and is in a classification appropriate to the work to be undertaken.

begin insert

begin insert SEC. 420. end insert   

end insert

begin insert Section 6101 of the end insert begin insert Public Contract Code end insert begin insert is amended
to read: end insert

6101.  

begin delete No end delete begin insert A end insert state begin delete agency or department, end delete begin insert agency, end insert as defined in
Section begin delete 10357, end delete begin insert 10335.7, end insert that is subject to this code, shall begin insert not end insert award
a public works or purchase contract to a bidder or contractor, nor
shall a bidder or contractor be eligible to bid for or receive a public
works or purchase contract, who has, in the preceding five years,
been convicted of violating a state or federal law respecting the
employment of undocumented aliens.

begin delete SEC. 414. end delete
begin insert SEC. 421. end insert   

Section 10299 of the Public Contract Code, as added
by Section 33 of Chapter 71 of the Statutes of 2000, is repealed.

begin delete SEC. 415. end delete
begin insert SEC. 422. end insert   

Section 20427 of the Public Contract Code is
amended to read:

20427.  

At any time prior to publication and posting notice
inviting bids, the legislative body by resolution, may determine
that if the contractor, contracting owners included, does not
complete the work within the time limit specified in the contract
or within the further time that the legislative body authorized, the
contractor or contracting owners, as the case may be, shall pay to
the city liquidated damages in the amount fixed by the legislative
body in the resolution. The amount so fixed is valid as liquidated
damages unless manifestly unreasonable under the circumstances
existing at the time the contract was made. If this determination
is made, the plans or specifications and the contract shall contain
provisions in accordance with that determination.

Any moneys received by the city on account of those liquidated
damages shall be applied as follows:

(1) If received prior to confirmation of the assessment, those
moneys shall be applied as a contribution against the assessment.

(2) If received after the confirmation of the assessment, those
moneys shall be applied in the manner provided in Section 5132.05
of the Streets and Highways Code for the disposition of excess
acquisition funds.

(3) If a contribution has previously been made or ordered by
any agency, the legislative body may order a refund to the
contributing agency in the proportion that the contribution bears
to the total costs and expenses of the work.

begin delete SEC. 416. end delete
begin insert SEC. 423. end insert   

Section 541.5 of the Public Resources Code is
amended to read:

541.5.  

(a) The department shall not close, or propose to close,
a state park in the 2012-13 or 2013-14 fiscal year. The commission
and the department shall recommend all necessary steps to establish
a sustainable funding strategy for the department to the Legislature
on or before January 1, 2015.

(b) There is hereby appropriated twenty million five hundred
thousand dollars ($20,500,000) to the department from the State
Parks and Recreation Fund, which shall be available for
encumbrance until June 30, 2016, and for liquidation until June
30, 2018, to be expended as follows:

(1) Ten million dollars ($10,000,000) shall be available to
provide for matching funds pursuant to subdivision (c).

(2) Ten million dollars ($10,000,000) shall be available for the
department to direct funds to parks that remain at risk of closure
or that will keep parks open during the 2012-13 to 2015-16 fiscal
years, inclusive. Priority may be given to parks subject to a donor
or operating agreement or other contractual arrangement with the
department.

(3) Up to five hundred thousand dollars ($500,000) shall be
available for the department to pay for ongoing audits and
investigations as directed by the Joint Legislative Audit Committee,
the office of the Attorney General, the Department of Finance, or
other state agency.

(c) The department shall match on a dollar-for-dollar basis all
financial contributions contributed by a donor pursuant to an
agreement for the 2012-13 fiscal year for which the department
received funds as of July 31, 2013, and for agreements entered
into in the 2013-14 fiscal year. These matching funds shall be
used exclusively in the park unit subject to those agreements.

(d) The department shall notify the Joint Legislative Budget
Committee in writing not less than 30 days before the expenditure
of funds under this section of the funding that shall be expended,
the manner of the expenditure, and the recipient of the expenditure.

(e) The prohibition on the closure, or proposed closure, of a
state park in the 2012-13 or 2013-14 fiscal year, pursuant to
paragraph (a), does not limit or affect the department’s authority
to enter into an operating agreement, pursuant to Section 5080.42,
during the 2012-13 or 2013-14 fiscal year, for purposes of the
operation of the entirety of a state park during the 2012-13 or
2013-14 fiscal year.

begin delete SEC. 417. end delete
begin insert SEC. 424. end insert   

Section 4598.1 of the Public Resources Code is
amended to read:

4598.1.  

(a) The purpose of this article is to encourage private
investments in, and improved long-term management of,
timberlands and resources within the state to promote carbon
sequestration through increased timber growth and inventory,
reduced carbon emissions from wildland fires by creating fire
resiliency on private timberlands, and the protection, maintenance,
and enhancement of a productive and stable forest resource system
for the benefit of present and future generations.

(b) The primary emphasis of the program established by this
article shall be upon increasing carbon sequestration in timberlands
and reducing carbon emissions from wildland fires. Consistent
with this primary emphasis, the program shall also be managed to
maintain or improve all forest resources, such as fish and wildlife
habitat and soil resources, so that the overall effect of the program
is to improve the total forest resource system.

begin delete SEC. 418. end delete
begin insert SEC. 425. end insert   

Section 4598.6 of the Public Resources Code is
amended to read:

4598.6.  

To be eligible for participation in an agreement or grant
pursuant to Section 4598.5, the following conditions shall be met:

(a) The application requirements established by the board are
satisfied.

(b) The landowner is a smaller nonindustrial landowner, as
defined in Section 4598.3. Where the timberland is owned jointly
by more than one individual, group, association, or corporation,
as joint tenants, tenants in common, tenants by the entirety, or
otherwise, the joint owners shall be considered, for the purposes
of this article, as one landowner.

(c) The parcel or parcels of timberland to which the PTEIR shall
apply is either:

(1) Within a timber preserve zone established pursuant to Article
6.7 (commencing with Section 51100) of Part 1 of Division 1 of
Title 5 of the Government Code and not the subject of an
application for rezoning or immediate rezoning pursuant to Section
51120 of, or Article 4 (commencing with Section 51130) of
Chapter 6.7 of Part 1 of Division 1 of Title 5, of the Government
Code.

(2) Subject to a contract signed by the landowner in which the
landowner agrees not to develop the parcel of timberland for uses
incompatible with the PTEIR within 20 years following the
execution of an agreement or the making of a grant pursuant to
Section 4598.5. The director shall record the contract in the office
of the county recorder in the county in which the parcel of
timberland is located and, upon recordation, the contract shall be
binding upon any person to whom the parcel of timberland is sold,
assigned, devised, or otherwise transferred by agreement or
operation of law.

begin delete SEC. 419. end delete
begin insert SEC. 426. end insert   

Section 4598.7 of the Public Resources Code is
amended to read:

4598.7.  

Payments or grants pursuant to this article may be
made for work that is also the subject of payments or other
assistance provided pursuant to federal law. Payments or grants
shall not be made pursuant to this article to satisfy landowner cost
share requirements of, or repay loans received pursuant to, federal
law. The combined state and federal payments or other assistance
shall not together exceed the amount of the actual cost of the
PTEIR to the landowner.

begin delete SEC. 420. end delete
begin insert SEC. 427. end insert   

Section 5080.16 of the Public Resources Code is
amended to read:

5080.16.  

If the director determines that it is in the best interests
of the state, the director, upon giving notice to the State Park and
Recreation Commission, may negotiate or renegotiate a contract,
including terms and conditions, when one or more of the following
conditions exist:

(a) The bid process as prescribed in this article has failed to
produce a best responsible bidder.

(b) The negotiation or renegotiation would constitute an
extension of an existing contract obtained through the process
required by this article and the extended contract would provide
for substantial and additional concession facilities, which would
be constructed at the sole expense of the concessionaire and which
are set forth in the general plan for the unit and are needed to
accommodate existing or projected increased public usage.

(c) Lands in the state park system administered by the
department and lands under the legal control of the prospective
concessionaire are so situated that the concession is dependent
upon the use of those public and private lands for the physical or
economic success, or both, of the concession.

(d) A concession is desired for particular interpretive purposes
in a unit of the state park system and the prospective concessionaire
possesses special knowledge, experience, skills, or ability
appropriate to the particular interpretive purposes.

(e) The concession has been severely and adversely impacted
through no fault of the concessionaire by an unanticipated calamity,
park closure, major construction, or other harmful event or action.

(f) The estimated administrative costs for the bid process exceed
the projected annual net rental revenue to the state.

begin delete SEC. 421. end delete
begin insert SEC. 428. end insert   

Section 5096.955 of the Public Resources Code, as
added by Section 14 of Chapter 178 of the Statutes of 2007, is
amended and renumbered to read:

5096.9545  

(a) For the purposes of any levee evaluation
activities funded by the department, the department shall not
require a local cost-share for the following levee evaluations:

(1) Evaluations of levees that are part of the facilities of the
State Plan of Flood Control.

(2) Evaluations of levees located in the Central Valley that are
not part of the State Plan of Flood Control, and that protect an
urban area, as defined by subdivision (k) of Section 5096.805.

(3) Evaluations of levees chosen to be performed by the
department as part of an effort to protect critical water conveyance
infrastructure through the Sacramento-San Joaquin Delta.

(b) The department shall identify the levees described in
paragraph (2) of subdivision (a) in the Bond Expenditure Disaster
Preparedness and Flood Prevention Plan described in Section
5096.820 and notify the Governor and the Legislature of the
location of these levees.

begin delete SEC. 422. end delete
begin insert SEC. 429. end insert   

Section 6217.2 of the Public Resources Code, as
added by Section 5 of Chapter 326 of the Statutes of 1998, is
repealed.

begin delete SEC. 423. end delete
begin insert SEC. 430. end insert   

The heading of Chapter 6 (commencing with Section
12292) of Division 10.5 of the Public Resources Code is repealed.

begin delete SEC. 424. end delete
begin insert SEC. 431. end insert   

Section 14591.2 of the Public Resources Code is
amended to read:

14591.2.  

(a) The department may take disciplinary action
against any party responsible for directing, contributing to,
participating in, or otherwise influencing the operations of a
certified or registered facility or program. A responsible party
includes, but is not limited to, the certificate holder, registrant,
officer, director, or managing employee. Except as otherwise
provided in this division, the department shall provide a notice
and hearing in accordance with Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code before taking any disciplinary action against a certificate
holder.

(b) All of the following are grounds for disciplinary action, in
the form determined by the department in accordance with
subdivision (c):

(1) The responsible party engaged in fraud or deceit to obtain
a certificate or registration.

(2) The responsible party engaged in dishonesty, incompetence,
negligence, or fraud in performing the functions and duties of a
certificate holder or registrant.

(3) The responsible party violated this division or any regulation
adopted pursuant to this division, including, but not limited to, any
requirements concerning auditing, reporting, standards of operation,
or being open for business.

(4) The responsible party is convicted of any crime of moral
turpitude or fraud, any crime involving dishonesty, or any crime
substantially related to the qualifications, functions, or duties of a
certificate holder.

(c) The department may take disciplinary action pursuant to this
section, by taking any one of, or any combination of, the following:

(1) Immediate revocation of the certificate or registration, or
revocation of a certificate or registration as of a specific date in
the future.

(2) Immediate suspension of the certificate or registration for a
specified period of time, or suspension of the certificate or
registration as of a specific date in the future. Notwithstanding
subdivision (a), the department may impose a suspension of five
days or less through an informal notice, if the action is subject to
a stay on appeal, pending an informal hearing convened in
accordance with Article 10 (commencing with Section 11445.10)
of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government
Code.

(3) Imposition on the certificate or registration of any condition
that the department determines would further the goals of this
division.

(4) Issuance of a probationary certificate or registration with
conditions determined by the department.

(5) Collection of amounts in restitution of any money improperly
paid to the certificate holder or registrant from the fund.

(6) Imposition of civil penalties pursuant to Section 14591.1.

(7) Suspension for a specified period of time or permanent
revocation of eligibility of a supermarket site, rural region recycler,
or a nonprofit convenience zone recycler to receive handling fees
at one or more of the certificate holder’s certified recycling centers.

(d) The department may do any of the following in taking
disciplinary action pursuant to this section:

(1) If a certificate holder or registrant holds certificates or is
registered to operate at more than one site or to operate in more
than one capacity at one location, such as an entity certified as
both a processor and a recycling center, the department may
simultaneously revoke, suspend, or impose conditions upon some,
or all, of the certificates held by the responsible party.

(2) If the responsible party is an officer, director, partner,
manager, employee, or the owner of a controlling ownership
interest of another certificate holder or registrant, that other
operator’s certificate or registration may also be revoked,
suspended, or conditioned by the department in the same
proceeding, if the other certificate holder or registrant is given
notice of that proceeding, or in a subsequent proceeding.

(3) (A) If, pursuant to notice and a hearing conducted by the
director or the director’s designee in accordance with Article 10
(commencing with Section 11445.10) of Chapter 4.5 of Part 1 of
Division 3 of Title 2 of the Government Code, the department
determines that the continued operation of a certified or registered
entity poses an immediate and significant threat to the fund, the
department may order the immediate suspension of the certificate
holder or registrant, pending revocation of the certificate or
registration, or the issuance of a probationary certificate imposing
reasonable terms and conditions. The department shall record the
testimony at the hearing and, upon request, prepare a transcript.
For purposes of this section, an immediate and significant threat
to the fund means any of the following:

(i) A loss to the fund of at least ten thousand dollars ($10,000)
during the six-month period immediately preceding the order of
suspension.

(ii) Missing or fraudulent records associated with a claim or
claims totaling at least ten thousand dollars ($10,000) during the
six-month period immediately preceding the order of suspension.

(iii) A pattern of deceit, fraud, or intentional misconduct in
carrying out the duties and responsibilities of a certificate holder
during the six-month period immediately preceding the order of
suspension. For purposes of this section, a pattern of deceit, fraud,
or intentional misconduct in carrying out the duties of a certificate
holder includes, but is not limited to, the destruction or concealment
of any records six months immediately preceding the order of
suspension.

(iv) At least three claims submitted for ineligible material in
violation of this division, including, but not limited to, a violation
of Section 14595.5, during the six-month period immediately
preceding the order of suspension.

(B) An order of suspension or probation may be issued to any
or all certified or registered facilities or programs operated by a
person or entity that the department determines to be culpable or
responsible for the loss or conduct identified pursuant to
subparagraph (A).

(C) The order of suspension or issuance of a probationary
certificate imposing terms or conditions shall become effective
upon written notice of the order to the certificate holder or
registrant. Within 20 days after notice of the order of suspension,
the department shall file an accusation seeking revocation of any
or all certificates or registrations held by the certificate holder or
registrant. The certificate holder or registrant may, upon receiving
the notice of the order of suspension or probation, appeal the order
by requesting a hearing in accordance with Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code. A request for a hearing or appeal from an order
of the department does not stay the action of the department for
which the notice of the order is given. The department may
combine hearings to appeal an order of suspension and a hearing
for the proposed revocation of a certificate or registration into one
proceeding.

(D) This section does not prohibit the department from
immediately revoking a probationary certificate pursuant to
subdivision (b) of Section 14541 or from taking other disciplinary
action pursuant to Section 14591.2.

begin delete SEC. 425. end delete
begin insert SEC. 432. end insert   

Section 21080.35 of the Public Resources Code, as
added by Section 1 of Chapter 534 of the Statutes of 2001, is
amended and renumbered to read:

21080.34  

For the purposes of Section 21069, the phrase
“carrying out or approving a project” shall include the carrying
out or approval of a plan for a project that expands or enlarges an
existing publicly owned airport by any political subdivision, as
described in Section 21661.6 of the Public Utilities Code.

begin delete SEC. 426. end delete
begin insert SEC. 433. end insert   

Section 21082.3 of the Public Resources Code is
amended to read:

21082.3.  

(a) Any mitigation measures agreed upon in the
consultation conducted pursuant to Section 21080.3.2 shall be
recommended for inclusion in the environmental document and
in an adopted mitigation monitoring and reporting program, if
determined to avoid or lessen the impact pursuant to paragraph
(2) of subdivision (b), and shall be fully enforceable.

(b) If a project may have a significant impact on a tribal cultural
resource, the lead agency’s environmental document shall discuss
both of the following:

(1) Whether the proposed project has a significant impact on
an identified tribal cultural resource.

(2) Whether feasible alternatives or mitigation measures,
including those measures that may be agreed to pursuant to
subdivision (a), avoid or substantially lessen the impact on the
identified tribal cultural resource.

(c) (1) Any information, including, but not limited to, the
location, description, and use of the tribal cultural resources, that
is submitted by a California Native American tribe during the
environmental review process shall not be included in the
environmental document or otherwise disclosed by the lead agency
or any other public agency to the public, consistent with
subdivision (r) of Section 6254 of, and Section 6254.10 of, the
Government Code, and subdivision (d) of Section 15120 of Title
14 of the California Code of Regulations, without the prior consent
of the tribe that provided the information. If the lead agency
publishes any information submitted by a California Native
American tribe during the consultation or environmental review
process, that information shall be published in a confidential
appendix to the environmental document unless the tribe that
provided the information consents, in writing, to the disclosure of
some or all of the information to the public. This subdivision does
not prohibit the confidential exchange of the submitted information
between public agencies that have lawful jurisdiction over the
preparation of the environmental document.

(2) (A) This subdivision does not prohibit the confidential
exchange of information regarding tribal cultural resources
submitted by a California Native American tribe during the
consultation or environmental review process among the lead
agency, the California Native American tribe, the project applicant,
or the project applicant’s agent. Except as provided in subparagraph
(B) or unless the California Native American tribe providing the
information consents, in writing, to public disclosure, the project
applicant or the project applicant’s legal advisers, using a
reasonable degree of care, shall maintain the confidentiality of the
information exchanged for the purposes of preventing looting,
vandalism, or damage to tribal cultural resources and shall not
disclose to a third party confidential information regarding tribal
cultural resources.

(B) This paragraph does not apply to data or information that
are or become publicly available, are already in the lawful
possession of the project applicant before the provision of the
information by the California Native American tribe, are
independently developed by the project applicant or the project
applicant’s agents, or are lawfully obtained by the project applicant
from a third party that is not the lead agency, a California Native
American tribe, or another public agency.

(3) This subdivision does not affect or alter the application of
subdivision (r) of Section 6254 of the Government Code, Section
6254.10 of the Government Code, or subdivision (d) of Section
15120 of Title 14 of the California Code of Regulations.

(4) This subdivision does not prevent a lead agency or other
public agency from describing the information in general terms in
the environmental document so as to inform the public of the basis
of the lead agency’s or other public agency’s decision without
breaching the confidentiality required by this subdivision.

(d) In addition to other provisions of this division, the lead
agency may certify an environmental impact report or adopt a
mitigated negative declaration for a project with a significant
impact on an identified tribal cultural resource only if one of the
following occurs:

(1) The consultation process between the California Native
American tribe and the lead agency has occurred as provided in
Sections 21080.3.1 and 21080.3.2 and concluded pursuant to
subdivision (b) of Section 21080.3.2.

(2) The California Native American tribe has requested
consultation pursuant to Section 21080.3.1 and has failed to provide
comments to the lead agency, or otherwise failed to engage, in the
consultation process.

(3) The lead agency has complied with subdivision (d) of Section
21080.3.1 and the California Native American tribe has failed to
request consultation within 30 days.

(e) If the mitigation measures recommended by the staff of the
lead agency as a result of the consultation process are not included
in the environmental document or if there are no agreed upon
mitigation measures at the conclusion of the consultation or if
consultation does not occur, and if substantial evidence
demonstrates that a project will cause a significant effect to a tribal
cultural resource, the lead agency shall consider feasible mitigation
pursuant to subdivision (b) of Section 21084.3.

(f) Consistent with subdivision (c), the lead agency shall publish
confidential information obtained from a California Native
American tribe during the consultation process in a confidential
appendix to the environmental document and shall include a
general description of the information, as provided in paragraph
(4) of subdivision (c) in the environmental document for public
review during the public comment period provided pursuant to
this division.

(g) This section is not intended, and may not be construed, to
limit consultation between the state and tribal governments,
existing confidentiality provisions, or the protection of religious
exercise to the fullest extent permitted under state and federal law.

begin delete SEC. 427. end delete
begin insert SEC. 434. end insert   

Section 30103 of the Public Resources Code is
amended to read:

30103.  

(a) “Coastal zone” means that land and water area of
the State of California from the Oregon border to the border of the
Republic of Mexico, specified on the maps identified and set forth
in Section 17 of Chapter 1330 of the Statutes of 1976, extending
seaward to the state’s outer limit of jurisdiction, including all
offshore islands, and extending inland generally 1,000 yards from
the mean high tide line of the sea. In significant coastal estuarine,
habitat, and recreational areas it extends inland to the first major
ridgeline paralleling the sea or five miles from the mean high tide
line of the sea, whichever is less, and in developed urban areas the
zone generally extends inland less than 1,000 yards. The coastal
zone does not include the area of jurisdiction of the San Francisco
Bay Conservation and Development Commission, established
pursuant to Title 7.2 (commencing with Section 66600) of the
Government Code, nor any area contiguous thereto, including any
river, stream, tributary, creek, or flood control or drainage channel
flowing into such area.

(b) The commission shall, within 60 days after its first meeting,
prepare and adopt a detailed map, on a scale of one inch equals
24,000 inches for the coastal zone and shall file a copy of the map
with the county clerk of each coastal county. The purpose of this
provision is to provide greater detail than is provided by the maps
identified in Section 17 of Chapter 1330 of the Statutes of 1976.
The commission may adjust the inland boundary of the coastal
zone the minimum landward distance necessary up to a maximum
of 100 yards except as otherwise provided in this subdivision, or
the minimum distance seaward necessary up to a maximum of 200
yards, to avoid bisecting any single lot or parcel or to conform it
to readily identifiable natural or manmade features. Where a
landward adjustment is requested by the local government and
agreed to by the property owner, the maximum distance shall be
200 yards.

begin delete SEC. 428. end delete
begin insert SEC. 435. end insert   

Chapter 1 (commencing with Section 32600) of
Division 22.8 of the Public Resources Code, as added by Section
1 of Chapter 788 of the Statutes of 1999, is repealed.

begin delete SEC. 429. end delete
begin insert SEC. 436. end insert   

Section 42356 of the Public Resources Code is
amended to read:

42356.  

For purposes of this chapter, the following definitions
apply:

(a) “ASTM” means the ASTM International.

(b) (1) “ASTM standard specification” means one of the
following:

(A) The ASTM Standard Specification for Compostable Plastics
D6400, as published in September 2004, except as provided in
subdivision (c) of Section 42356.1.

(B) The ASTM Standard Specification for Non-Floating
Biodegradable Plastics in the Marine Environment D7081, as
published in August 2005, except as provided in subdivision (c)
of Section 42356.1.

(C) The ASTM Standard Specification for Biodegradable
Plastics Used as Coatings on Paper and Other Compostable
Substrates D6868, as published in August 2003, except as specified
in subdivision (c) of Section 42356.1.

(2) “ASTM standard specification” does not include an ASTM
Standard Guide, a Standard Practice, or a Standard Test Method.

(c) “Department” means the Department of Resources Recycling
and Recovery.

(d) “Manufacturer” means a person, firm, association,
partnership, or corporation that produces a plastic product.

(e) “OK home compost” means conformity with the existing
Vincotte certification “OK Compost HOME certification” which,
as of January 1, 2011, uses European Norm 13432 standard adapted
to low-temperature composting in accordance with the Vincotte
program “OK 2-Home Compostability of Products.”

(f) “Plastic product” means a product made of plastic, whether
alone or in combination with other material, including, but not
limited to, paperboard. A plastic product includes, but is not limited
to, any of the following:

(1) (A) A consumer product.

(B) For purposes of this paragraph, “consumer product” means
a product or part of a product that is used, bought, or leased for
use by a person for any purpose.

(2) A package or a packaging component.

(3) A bag, sack, wrap, or other thin plastic sheet film product.

(4) A food or beverage container or a container component,
including, but not limited to, a straw, lid, or utensil.

(g) “Supplier” means a person who does one or more of the
following:

(1) Sells, offers for sale, or offers for promotional purposes, a
plastic product that is used.

(2) Takes title to a plastic product, produced either domestically
or in a foreign country, that is purchased for resale or promotional
purposes.

(h) “Vincotte certification” means a certification of a European
norm (EN) standard adopted by the Belgian-accredited inspection
and certification organization Vincotte.

begin delete SEC. 430. end delete
begin insert SEC. 437. end insert   

Section 42649.82 of the Public Resources Code is
amended to read:

42649.82.  

(a) (1) In addition to the requirements of Section
42649.3, on and after January 1, 2016, each jurisdiction shall
implement an organic waste recycling program that is appropriate
for that jurisdiction and designed specifically to divert organic
waste generated by businesses subject to Section 42649.81, whether
or not the jurisdiction has met the requirements of Section 41780.

(2) (A) A county board of supervisors of a rural county may
adopt a resolution, as prescribed in this paragraph, to make the
rural county exempt from the requirements of this section. If a
rural jurisdiction is a city, the city council may adopt a resolution,
as prescribed in this paragraph, to make the rural jurisdiction
exempt from this section. If a rural jurisdiction is a regional agency
comprised of jurisdictions that are located entirely within one or
more rural counties, the board of the regional agency may adopt
a resolution, as prescribed in this paragraph, to make the rural
jurisdiction exempt from the requirements of this section.

(B) A resolution adopted pursuant to subparagraph (A) shall
include findings as to the purpose of and need for the exemption.

(C) A resolution to exempt a rural jurisdiction pursuant to
subparagraph (A) shall be submitted to the department at least six
months before the operative date of the exemption.

(D) On or after January 1, 2020, if the department determines
that statewide disposal of organic waste has not been reduced to
50 percent of the level of disposal during the 2014 calendar year,
all exemptions authorized by this paragraph shall terminate unless
the department determines that applying this chapter to rural
jurisdictions will not result in significant additional reductions of
disposal of organic waste.

(b) If a jurisdiction, as of January 1, 2016, has in place an
organic waste recycling program that meets the requirements of
this section, it is not required to implement a new or expanded
organic waste recycling program.

(c) The organic waste recycling program required by this section
shall be directed at organic waste generators and may include, but
is not limited to, one or more of the following:

(1) Implementing a mandatory commercial organic waste
recycling policy or ordinance that addresses organic waste
recycling.

(2) Requiring a mandatory commercial organic waste recycling
program through a franchise contract or agreement.

(3) Requiring organic waste to go through a source separated
or mixed processing system that diverts material from disposal.

(d) (1) The organic waste recycling program shall do all of the
following:

(A) Identify all of the following:

(i) Existing organic waste recycling facilities within a reasonable
vicinity and the capacities available for materials to be accepted
at each facility.

(ii) Existing solid waste and organic waste recycling facilities
within the jurisdiction that may be suitable for potential expansion
or colocation of organic waste processing or recycling facilities.

(iii) Efforts of which the jurisdiction is aware that are underway
to develop new private or public regional organic waste recycling
facilities that may serve some or all of the organic waste recycling
needs of the commercial waste generators within the jurisdiction
subject to this chapter, and the anticipated timeframe for
completion of those facilities.

(iv) Closed or abandoned sites that might be available for new
organic waste recycling facilities.

(v) Other nondisposal opportunities and markets.

(vi) Appropriate zoning and permit requirements for the location
of new organic waste recycling facilities.

(vii) Incentives available, if any, for developing new organic
waste recycling facilities within the jurisdiction.

(B) Identify barriers to siting new or expanded compostable
materials handling operations, as defined in paragraph (12) of
subdivision (a) of Section 17852 of Title 14 of the California Code
of Regulations, and specify a plan to remedy those barriers that
are within the control of the local jurisdiction.

(C) Provide for the education of, outreach to, and monitoring
of, businesses. The program shall require the jurisdiction to notify
a business if the business is not in compliance with Section
42649.81.

(2) For purposes of subparagraph (A) of paragraph (1), an
“organic waste recycling facility” shall include compostable
materials handling operations, as defined in paragraph (12) of
subdivision (a) of Section 17852 of Title 14 of the California Code
of Regulations, and may include other facilities that recycle organic
waste.

(e) The organic waste recycling program may include any one
or more of the following:

(1) Enforcement provisions that are consistent with the
jurisdiction’s authority, including a structure for fines and penalties.

(2) Certification requirements for self-haulers.

(3) Exemptions, on a case-by-case basis, from the requirements
of Section 42649.81 that are deemed appropriate by the jurisdiction
for any of the following reasons:

(A) Lack of sufficient space in multifamily complexes or
businesses to provide additional organic material recycling bins.

(B) The current implementation by a business of actions that
result in the recycling of a significant portion of its organic waste.

(C) The business or group of businesses does not generate at
least one-half of a cubic yard of organic waste per week.

(D) Limited-term exemptions for extraordinary and unforeseen
events.

(E) (i) The business or group of businesses does not generate
at least one cubic yard of organic waste per week, if the local
jurisdiction provides the department with information that explains
the need for this higher exemption than that authorized by
subparagraph (C).

(ii) The information described in clause (i) shall be provided to
the department with the information provided pursuant to
subdivision (f).

(iii) This subparagraph shall not be operative on or after January
1, 2020, if the department, pursuant to paragraph (4) of subdivision
(a) of Section 42649.81, determines that statewide disposal of
organic waste has not been reduced to 50 percent of the level of
disposal during the 2014 calendar year.

(f) (1) Each jurisdiction shall provide the department with
information on the number of regulated businesses that generate
organic waste and, if available, the number that are recycling
organic waste. The jurisdiction shall include this information as
part of the annual report required pursuant to Section 41821.

(2) On and after August 1, 2017, in addition to the information
required by paragraph (1), each jurisdiction shall report to the
department on the progress achieved in implementing its organic
waste recycling program, including education, outreach,
identification, and monitoring, on its rationale for allowing
exemptions, and, if applicable, on enforcement efforts. The
jurisdiction shall include this information as part of the annual
report required pursuant to Section 41821.

(g) (1) The department shall review a jurisdiction’s compliance
with this section as part of the department’s review required by
Section 41825.

(2) The department also may review whether a jurisdiction is
in compliance with this section at any time that the department
receives information that a jurisdiction has not implemented, or is
not making a good faith effort to implement, an organic waste
recycling program.

(h) During a review pursuant to subdivision (g), the department
shall determine whether the jurisdiction has made a good faith
effort to implement its selected organic waste recycling program.
For purposes of this section, “good faith effort” means all
reasonable and feasible efforts by a jurisdiction to implement its
organic waste recycling program. During its review, the department
may include, but is not limited to, consideration of the following
factors in its evaluation of a jurisdiction’s good faith effort:

(1) The extent to which businesses have complied with Section
42649.81, including information on the amount of disposal that is
being diverted from the businesses, if available, and on the number
of businesses that are complying with Section 42649.81.

(2) The recovery rate of the organic waste from the material
recovery facilities that are utilized by the businesses, all
information, methods, and calculations, and any additional
performance data, as requested by the department from the material
recovery facilities pursuant to Section 18809.4 of Title 14 of the
California Code of Regulations.

(3) The extent to which the jurisdiction is conducting education
and outreach to businesses.

(4) The extent to which the jurisdiction is monitoring businesses
and notifying those businesses that are not in compliance.

(5) The appropriateness of exemptions allowed by the
jurisdiction.

(6) The availability of markets for collected organic waste
recyclables.

(7) Budgetary constraints.

(8) In the case of a rural jurisdiction, the effects of small
geographic size, low population density, or distance to markets.

(9) The availability, or lack thereof, of sufficient organic waste
processing infrastructure, organic waste recycling facilities, and
other nondisposal opportunities and markets.

(10) The extent to which the jurisdiction has taken steps that
are under its control to remove barriers to siting and expanding
organic waste recycling facilities.

begin delete SEC. 431. end delete
begin insert SEC. 438. end insert   

Section 42987 of the Public Resources Code is
amended to read:

42987.  

(a) (1) A qualified industry association or a successor
organization may establish a mattress recycling organization for
purposes of this chapter, which shall be composed of
manufacturers, renovators, and retailers and be certified pursuant
to this section to develop, implement, and administer the mattress
recycling program established pursuant to this chapter.

(2) Within 60 days of receipt of a request for certification, the
department shall notify the requesting qualified industry association
of the department’s decision whether or not to certify that a
mattress recycling organization has been established by the
qualified industry association or successor organization and is
composed of manufacturers, renovators, and retailers for purposes
of establishing the mattress recycling plan.

(3) Prior to certification by the department, the department’s
director shall appoint an advisory committee to be part of the
mattress recycling organization.

(A) The advisory committee may be comprised of members of
the environmental community, solid waste industry, and local
government public and private representatives involved in the
collection, processing, and recycling of used mattresses, and other
interested parties.

(B) The mattress recycling organization shall consult the
advisory committee at least once during the development and
implementation of the plan required pursuant to Section 42987.1,
and annually prior to the submittal of both an annual report required
pursuant to Section 42990.1 and an annual budget required pursuant
to Section 42988.

(b) (1) Each manufacturer, retailer, and renovator shall register
with the mattress recycling organization.

(2) A retailer may register with the mattress recycling
organization as a manufacturer for a brand for which there is not
a registered manufacturer.

(c) On and after January 1, 2016, a retailer shall not sell,
distribute, or offer for sale a mattress in the state unless the retailer
is in compliance with this chapter and the manufacturer or
renovator of the mattress sold by the retailer is listed in compliance
with this chapter.

(d) On and after January 1, 2016, a manufacturer or renovator
shall not sell, offer for sale, or import a mattress in this state, or
sell or distribute a mattress to a distributor or retailer, unless the
manufacturer or renovator is in compliance with this chapter.

begin delete SEC. 432. end delete
begin insert SEC. 439. end insert   

Section 42987.1 of the Public Resources Code is
amended to read:

42987.1.  

On or before July 1, 2015, the mattress recycling
organization shall develop and submit to the department a plan for
recycling used mattresses in the state in an economically efficient
and practical manner that includes all of the following goals and
elements:

(a) Program objectives consistent with the state’s solid waste
management hierarchy.

(b) The names of manufacturers, renovators, and brands covered
under the plan.

(c) A consultation process with affected stakeholders, including,
but not limited to, local government representatives, recyclers, and
solid waste industry representatives.

(d) Methods to increase the number of used mattresses diverted
from landfills, reduce the number of illegally dumped used
mattresses, and increase the quantity of used materials recovered
through this process and recycled for other uses.

(e) (1) The establishment and administration of a means for
funding the plan in a manner that distributes the mattress recycling
organization’s costs uniformly over all mattresses sold in the state.

(2) The funding mechanism shall provide sufficient funding for
the mattress recycling organization to carry out the plan, including
the administrative, operational, and capital costs of the plan.

(f) The publishing of an annual report for each calendar year of
operation.

(g) Conducting research, as needed, related to improving used
mattress collection, dismantling, and recycling operations,
including pilot programs to test new processes, methods, or
equipment on a local, regional, or otherwise limited basis.

(h) A program performance measurement that shall collect
program data for the purpose of the annual report. The information
shall include:

(1) A methodology for estimating the amount of mattresses sold
in the state and used mattresses available for collection in the state,
and for quantifying the number of used mattresses collected and
recycled in the state.

(2) A methodology for determining mattresses sold in the state
by the manufacturers and renovators of the mattress recycling
organization.

(i) A description of methods used to coordinate activities with
existing used mattress collecting and recycling programs, including
existing nonprofit mattress recyclers, and with other relevant parties
as appropriate, with regard to the proper management or recycling
of discarded or abandoned mattresses, for purposes of providing
the efficient delivery of services and avoiding unnecessary
duplication of effort and expense.

(j) Entering into contracts or agreements, which may include
contracts and agreements with existing nonprofit or for-profit
recyclers, that are necessary and proper for the mattress recycling
organization to carry out these duties consistent with the terms of
this chapter.

(k) Establishing a financial incentive to encourage parties to
collect for recycling used mattresses discarded or illegally dumped
in the state.

(l) Ensuring, to the maximum extent possible, that urban and
rural local governments and participating permitted solid waste
facilities and authorized solid waste operations that accept
mattresses are provided with a mechanism for the recovery of
illegally disposed used mattresses that is funded at no additional
cost to the local government, solid waste facility, or solid waste
operation.

(m) Developing processes to collect used mattresses from
low-income communities for recycling in accordance with the
poverty line annually established by the Secretary of California
Health and Human Services pursuant to the federal Omnibus
Budget Reconciliation Act of 1981 (Public Law 97-35), as
amended.

(n) Providing outreach efforts and education to consumers,
manufacturers, and retailers, for the purpose of promoting the
recycling of used mattresses and options available to consumers
for the free dropoff of used mattresses.

(o) A provision that allows an individual to drop off, at no
charge, a mattress at a recycler, renovator, mattress recycling
center, permitted solid waste facility, authorized solid waste
operation, or other municipal facility that accepts mattresses
consistent with state solid waste regulations, and that provides for
the payment to a municipal or solid waste facility or operation that
accepts mattresses an amount determined by the municipal or solid
waste facility or operation and the mattress recycling organization
to be reasonable for accepting, collecting, storing, transporting,
and handling used mattresses.

(p) Ensuring that the impact of Article XIII C of the California
Constitution is addressed for local governments participating in
the program.

(q) A report from the advisory committee, established pursuant
to paragraph (3) of subdivision (a) of Section 42987, that includes
a summary of the consultative process between the advisory
committee and the mattress recycling organization during the
development of the plan, as well as any other information deemed
pertinent by the advisory committee to maximizing the recovery
and recycling of used mattresses in the state.

(r) Other information requested by the department that is
reasonably related to compliance with the recycling plan and that
the organization can reasonably compile.

begin delete SEC. 433. end delete
begin insert SEC. 440. end insert   

Section 42989.1 of the Public Resources Code is
amended to read:

42989.1.  

(a) Commencing 90 days after the date the department
approves the budget pursuant to Section 42988.1, each
manufacturer, renovator, retailer, or distributor that sells a mattress
to a consumer or to the ultimate end user of the mattress in the
state shall add the charge to the purchase price of the mattress and
shall remit the charge collected to the mattress recycling
organization.

(b) In each transaction described in subdivision (a), the charge
shall be clearly visible as a separate line item on the invoice,
receipt, or functionally equivalent billing document provided by
the seller to the consumer.

(c) The mattress recycling organization shall develop
reimbursement criteria to enable retailers to recover administrative
costs associated with collecting the charge.

(d) The mattress recycling organization shall determine the rules
and procedures that are necessary and proper to implement the
collection of the charge in a fair, efficient, and lawful manner.

begin delete SEC. 434. end delete
begin insert SEC. 441. end insert   

Section 44107 of the Public Resources Code is
amended to read:

44107.  

(a) A solid waste facility, as defined in Section 40194,
sending materials to a biomass conversion facility, shall ensure
that the materials are limited to those listed in subdivision (a) of
Section 40106. The enforcement agency may inspect solid waste
facilities and operations for compliance with this section.

(b) On or before April 1, 2016, and on or before April 1 of each
year thereafter, the operator or owner of a biomass conversion
facility shall provide an annual report to the department, in writing,
for the preceding year, containing all of the following information:

(1) The name, address, and telephone number of the facility,
the operator, and the owner.

(2) The total amount and type of material accepted by the
facility.

(3) The name and address, or the physical location, of the source
of each type of material accepted by the facility. A facility that
cannot provide the name and address, or the physical location, of
a source of material accepted by the facility shall provide an
explanation why the information is not available.

(4) The total amount and type of material that was rejected by
the facility.

(5) The name and address, or physical location, of the source
of each type of material rejected by the facility and the reasons for
the rejection. A facility that cannot provide the name and address,
or the physical location, of a source of material rejected by the
facility shall provide an explanation why the information is not
available.

(6) The name and address, or physical location, of the final end
user of ash or other byproducts produced by the facility. Until
January 1, 2017, a facility that cannot provide the name and
address, or physical location, of the final end user of ash or
byproducts shall provide an explanation why that information is
not available.

(7) Signatures of the operator and owner of the facility certifying
the accuracy of the information provided under the penalty of
perjury.

(8) Any other information that is necessary for the department
to determine the accuracy of the information provided pursuant to
this subdivision.

(c) To the extent that information specified in subdivision (b)
has previously been submitted by the owner or operator of a
biomass conversion facility in reports to another state agency or
instrument of a state agency, the owner or operator of the facility
may submit those reports to the department in satisfaction of the
requirements of subdivision (b) regarding that information.
Information required by subdivision (b) and not contained in the
previously submitted reports shall be provided separately to the
department.

(d) If information provided by a biomass conservation facility
pursuant to this section is designated as confidential, the department
shall treat that information in accordance with Section 40062 and
its implementing regulations.

begin delete SEC. 435. end delete
begin insert SEC. 442. end insert   

Section 75220 of the Public Resources Code is
amended to read:

75220.  

(a) The Transit and Intercity Rail Capital Program is
hereby created to fund capital improvements and operational
investments that will reduce greenhouse gas emissions, modernize
California’s intercity, commuter, and urban rail systems to achieve
all of the following policy objectives:

(1) Reduce greenhouse gas emissions.

(2) Expand and improve rail service to increase ridership.

(3) Integrate the rail service of the state’s various rail operators,
including integration with the high-speed rail system.

(4) Improve rail safety.

(b) The Transportation Agency shall evaluate applications for
funding under the program consistent with the criteria set forth in
this part and prepare a list of projects recommended for funding.
The list may be revised at any time.

(c) The California Transportation Commission shall award
grants to applicants pursuant to the list prepared by the
Transportation Agency.

begin delete SEC. 436. end delete
begin insert SEC. 443. end insert   

Section 765 of the Public Utilities Code is amended
to read:

765.  

(a) When the federal National Transportation Safety
Board (NTSB) submits a safety recommendation letter concerning
rail safety to the commission, the commission shall provide the
NTSB with a formal written response to each recommendation no
later than 90 days after receiving the letter. The response shall
state one of the following:

(1) The commission’s intent to implement the recommendations
in full, with a proposed timetable for implementation of the
recommendations.

(2) The commission’s intent to implement part of the
recommendations, with a proposed timetable for implementation
of those recommendations, and detailed reasons for the
commission’s refusal to implement those recommendations that
the commission does not intend to implement.

(3) The commission’s refusal to implement the
recommendations, with detailed reasons for the commission’s
refusal to implement the recommendations.

(b) If the NTSB issues a safety recommendation letter
concerning any commission-regulated rail facility to the United
States Department of Transportation, the Federal Transit
Administration, a commission-regulated rail operator, or the
commission, or if the Federal Transit Administration issues a safety
advisory concerning any commission-regulated rail facility, the
commission shall determine if implementation of the
recommendation or advisory is appropriate. The basis for the
commission’s determination shall be detailed in writing and shall
be approved by a majority vote of the commission.

(c) If the commission determines that a safety recommendation
made by the NTSB is appropriate, or that action concerning a
safety advisory is necessary, the commission shall issue orders or
adopt rules to implement the safety recommendation or advisory
as soon as practicable. In implementing the safety recommendation
or advisory, the commission shall consider whether a more
effective, or equally effective and less costly, alternative exists to
address the safety issue that the recommendation or advisory
addresses.

(d) An action taken by the commission on a safety
recommendation letter or safety advisory shall be reported
annually, in detail, to the Legislature with the report required by
Section 321.6. Correspondence from the NTSB indicating that a
recommendation has been closed following an action that the
NTSB finds unacceptable shall be noted in the report required by
Section 321.6.

begin delete SEC. 437. end delete
begin insert SEC. 444. end insert   

Section 957 of the Public Utilities Code, as added
by Section 2 of Chapter 519 of the Statutes of 2011, is repealed.

begin delete SEC. 438. end delete
begin insert SEC. 445. end insert   

Section 960 of the Public Utilities Code is amended
to read:

960.  

(a) When the federal National Transportation Safety
Board (NTSB) submits a safety recommendation letter concerning
gas pipeline safety to the commission, the commission shall provide
the NTSB with a formal written response to each recommendation
not later than 90 days after receiving the letter. The response shall
state one of the following:

(1) The commission’s intent to implement the recommendations
in full, with a proposed timetable for implementation of the
recommendations.

(2) The commission’s intent to implement part of the
recommendations, with a proposed timetable for implementation
of those recommendations, and detailed reasons for the
commission’s refusal to implement those recommendations that
the commission does not intend to implement.

(3) The commission’s refusal to implement the
recommendations, with detailed reasons for the commission’s
refusal to implement the recommendations.

(b) If the NTSB issues a safety recommendation letter
concerning any commission-regulated gas pipeline facility to the
United States Department of Transportation, the federal Pipeline
and Hazardous Materials Safety Administration (PHMSA), a gas
corporation, or the commission, or the PHMSA issues an advisory
bulletin concerning any commission-regulated gas pipeline facility,
the commission shall determine if implementation of the
recommendation or advisory is appropriate. The basis for the
commission’s determination shall be detailed in writing and shall
be approved by a majority vote of the commission.

(c) If the commission determines that a safety recommendation
made by the NTSB is appropriate or that action concerning an
advisory bulletin is necessary, the commission shall issue orders
or adopt rules to implement the safety recommendation or advisory
as soon as practicable. In implementing the safety recommendation
or advisory, the commission shall consider whether a more
effective, or equally effective and less costly, alternative exists to
address the safety issue that the recommendation or advisory
addresses.

(d) An action taken by the commission on a safety
recommendation letter or advisory bulletin shall be reported
annually, in detail, to the Legislature with the report required by
Section 321.6. Correspondence from the NTSB that indicates that
a recommendation of the NTSB has been closed following an
action that the NTSB finds unacceptable shall be noted in the report
required by Section 321.6.

begin delete SEC. 439. end delete
begin insert SEC. 446. end insert   

Section 5384.2 of the Public Utilities Code, as added
by Section 2 of Chapter 649 of the Statutes of 2008, is amended
and renumbered to read:

5395.  

A school, school district, or the state is not liable for
transportation services provided by an operator of a charter-party
carrier operating a motor vehicle as specified in subdivision (k)
of Section 545 of the Vehicle Code for which the school or school
district has not contracted, arranged, or otherwise provided.

begin delete SEC. 440. end delete
begin insert SEC. 447. end insert   

Section 120260 of the Public Utilities Code is
amended to read:

120260.  

The board shall provide input to the San Diego
Association of Governments on the planning and construction of
exclusive public mass transit guideways in the area under its
jurisdiction in conformance with the California Transportation
Plan and the regional transportation plan developed pursuant to
Chapter 2.5 (commencing with Section 65080) of Division 1 of
Title 7 of the Government Code.

begin delete SEC. 441. end delete
begin insert SEC. 448. end insert   

The heading of Article 5 (commencing with Section
125300) of Chapter 4 of Division 11.5 of the Public Utilities Code
is repealed.

begin delete SEC. 442. end delete
begin insert SEC. 449. end insert   

Section 125450 of the Public Utilities Code, as added
by Section 7 of Chapter 990 of the Statutes of 1993, is repealed.

begin delete SEC. 443. end delete
begin insert SEC. 450. end insert   

Section 125500 of the Public Utilities Code, as added
by Chapter 1188 of the Statutes of 1975, is repealed.

begin delete SEC. 444. end delete
begin insert SEC. 451. end insert   

Section 54 of the Revenue and Taxation Code is
repealed.

begin delete SEC. 445. end delete
begin insert SEC. 452. end insert   

Section 196.91 of the Revenue and Taxation Code,
as added by Section 1 of Chapter 3 of the First Extraordinary
Session of the Statutes of 1995, is repealed.

begin delete SEC. 446. end delete
begin insert SEC. 453. end insert   

Section 196.91 of the Revenue and Taxation Code,
as added by Section 1 of Chapter 4 of the First Extraordinary
Session of the Statutes of 1995, is repealed.

begin delete SEC. 447. end delete
begin insert SEC. 454. end insert   

Section 196.92 of the Revenue and Taxation Code,
as added by Section 2 of Chapter 3 of the First Extraordinary
Session of the Statutes of 1995, is repealed.

begin delete SEC. 448. end delete
begin insert SEC. 455. end insert   

Section 196.92 of the Revenue and Taxation Code,
as added by Section 2 of Chapter 4 of the First Extraordinary
Session of the Statutes of 1995, is repealed.

begin delete SEC. 449. end delete
begin insert SEC. 456. end insert   

Section 441 of the Revenue and Taxation Code is
amended to read:

441.  

(a) Each person owning taxable personal property, other
than a manufactured home subject to Part 13 (commencing with
Section 5800), having an aggregate cost of one hundred thousand
dollars ($100,000) or more for any assessment year shall file a
signed property statement with the assessor. Every person owning
personal property that does not require the filing of a property
statement or real property shall, upon request of the assessor, file
a signed property statement. Failure of the assessor to request or
secure the property statement does not render any assessment
invalid.

(b) The property statement shall be declared to be true under
the penalty of perjury and filed annually with the assessor between
the lien date and 5 p.m. on April 1. The penalty provided by Section
463 applies for property statements not filed by May 7. If May 7
falls on a Saturday, Sunday, or legal holiday, a property statement
that is mailed and postmarked on the next business day shall be
deemed to have been filed between the lien date and 5 p.m. on
May 7. If, on the dates specified in this subdivision, the county’s
offices are closed for the entire day, that day is considered a legal
holiday for purposes of this section.

(c) The property statement may be filed with the assessor
through the United States mail, properly addressed with postage
prepaid. For purposes of determining the date upon which the
property statement is deemed filed with the assessor, the date of
postmark as affixed by the United States Postal Service, or the
date certified by a bona fide private courier service on the envelope
containing the application, shall control. This subdivision applies
to every taxing agency, including, but not limited to, a chartered
city and county, or chartered city.

(d) (1) At any time, as required by the assessor for assessment
purposes, every person shall make available for examination
information or records regarding his or her property or any other
personal property located on premises he or she owns or controls.
In this connection details of property acquisition transactions,
construction and development costs, rental income, and other data
relevant to the determination of an estimate of value are to be
considered as information essential to the proper discharge of the
assessor’s duties.

(2) (A) This subdivision also applies to an owner-builder or an
owner-developer of new construction that is sold to a third party,
is constructed on behalf of a third party, or is constructed for the
purpose of selling that property to a third party.

(B) The owner-builder or owner-developer of new construction
described in subparagraph (A), shall, within 45 days of receipt of
a written request by the assessor for information or records, provide
the assessor with all information and records regarding that
property. The information and records provided to the assessor
shall include the total consideration provided either by the
purchaser or on behalf of the purchaser that was paid or provided
either, as part of or outside of the purchase agreement, including,
but not limited to, consideration paid or provided for the purchase
or acquisition of upgrades, additions, or for any other additional
or supplemental work performed or arranged for by the
owner-builder or owner-developer on behalf of the purchaser.

(e) In the case of a corporate owner of property, the property
statement shall be signed either by an officer of the corporation or
an employee or agent who has been designated in writing by the
board of directors to sign the statements on behalf of the
corporation.

(f) In the case of property owned by a bank or other financial
institution and leased to an entity other than a bank or other
financial institution, the property statement shall be submitted by
the owner bank or other financial institution.

(g)  The assessor may refuse to accept any property statement
he or she determines to be in error.

(h) If a taxpayer fails to provide information to the assessor
pursuant to subdivision (d) and introduces any requested materials
or information at any assessment appeals board hearing, the
assessor may request and shall be granted a continuance for a
reasonable period of time. The continuance shall extend the
two-year period specified in subdivision (c) of Section 1604 for a
period of time equal to the period of the continuance.

(i) Notwithstanding any other provision of law, every person
required to file a property statement pursuant to this section shall
be permitted to amend that property statement until May 31 of the
year in which the property statement is due, for errors and
omissions not the result of willful intent to erroneously report. The
penalty authorized by Section 463 does not apply to an amended
statement received prior to May 31, provided the original statement
is not subject to penalty pursuant to subdivision (b). The amended
property statement shall otherwise conform to the requirements
of a property statement as provided in this article.

(j) This subdivision applies to the oil, gas, and mineral extraction
industry only. Any information that is necessary to file a true,
correct, and complete statement shall be made available by the
assessor, upon request, to the taxpayer by mail or at the office of
the assessor by February 28. For each business day beyond
February 28 that the information is unavailable, the filing deadline
in subdivision (b) shall be extended in that county by one business
day, for those statements affected by the delay. In no case shall
the filing deadline be extended beyond June 1 or the first business
day thereafter.

(k) The assessor may accept the filing of a property statement
by the use of electronic media. In lieu of the signature required by
subdivision (a) and the declaration under penalty of perjury
required by subdivision (b), property statements filed using
electronic media shall be authenticated pursuant to methods
specified by the assessor and approved by the board. Electronic
media includes, but is not limited to, computer modem, magnetic
media, optical disk, and facsimile machine.

(l) (1) After receiving the notice required by Section 1162, the
manager in control of a fleet of fractionally owned aircraft shall
file with the lead county assessor’s office one signed property
statement for all of its aircraft that have acquired situs in the state,
as described in Section 1161.

(2) Flight data required to compute fractionally owned aircraft
allocation under Section 1161 shall be segregated by airport.

(m) (1) After receiving the notice required by paragraph (5) of
subdivision (b) of Section 1153.5, a commercial air carrier whose
certificated aircraft is subject to Article 6 (commencing with
Section 1150) of Chapter 5 shall file with the lead county assessor’s
office designated under Section 1153.5 one signed property
statement for its personal property at all airport locations and
fixtures at all airport locations.

(2) Each commercial air carrier may file one schedule for all of
its certificated aircraft that have acquired situs in this state under
Section 1151.

(3) Flight data required to compute certificated aircraft allocation
under Section 1152 and subdivision (g) of Section 202 of Title 18
of the California Code of Regulations shall be segregated by airport
location.

(4) Beginning with the 2006 assessment year, a commercial air
carrier may file a statement described in this subdivision
electronically by means of the California Assessor’s Standard Data
Record (SDR) network. If the SDR is not equipped to accept
electronic filings for the 2006 assessment year, an air carrier may
file a printed version of its property statement for that year with
its lead county assessor’s office.

(5) This subdivision shall become inoperative on December 31,
2015.

begin delete SEC. 450. end delete
begin insert SEC. 457. end insert   

Section 6051.7 of the Revenue and Taxation Code
is repealed.

begin delete SEC. 451. end delete
begin insert SEC. 458. end insert   

The heading of Article 1.5 (commencing with
Section 7063) of Chapter 8 of Part 1 of Division 2 of the Revenue
and Taxation Code, as added by Section 1 of Chapter 443 of the
Statutes of 1999, is repealed.

begin delete SEC. 452. end delete
begin insert SEC. 459. end insert   

Chapter 3.5 (commencing with Section 7288.1) of
Part 1.7 of Division 2 of the Revenue and Taxation Code, as added
by Section 2 of Chapter 14 of the 1st Extraordinary Session of the
Statutes of 1991, is repealed.

begin delete SEC. 453. end delete
begin insert SEC. 460. end insert   

The heading of Part 5.5 (commencing with Section
11151) of Division 2 of the Revenue and Taxation Code, as added
by Section 1 of Chapter 966 of the Statutes of 1993, is amended
and renumbered to read:

 

PART 5.6.  LOCAL VEHICLE LICENSE FEE SURCHARGE

 

begin delete SEC. 454. end delete
begin insert SEC. 461. end insert   

Section 17053.34 of the Revenue and Taxation Code
is amended to read:

17053.34.  

(a) For each taxable year beginning on or after
January 1, 1998, there shall be allowed a credit against the “net
tax” (as defined in Section 17039) to a qualified taxpayer who
employs a qualified employee in a targeted tax area during the
taxable year. The credit shall be equal to the sum of each of the
following:

(1) Fifty percent of qualified wages in the first year of
employment.

(2) Forty percent of qualified wages in the second year of
employment.

(3) Thirty percent of qualified wages in the third year of
employment.

(4) Twenty percent of qualified wages in the fourth year of
employment.

(5) Ten percent of qualified wages in the fifth year of
employment.

(b) For purposes of this section:

(1) “Qualified wages” means:

(A) That portion of wages paid or incurred by the qualified
taxpayer during the taxable year to qualified employees that does
not exceed 150 percent of the minimum wage.

(B) Wages received during the 60-month period beginning with
the first day the employee commences employment with the
qualified taxpayer. Reemployment in connection with any increase,
including a regularly occurring seasonal increase, in the trade or
business operations of the qualified taxpayer does not constitute
commencement of employment for purposes of this section.

(C) Qualified wages do not include any wages paid or incurred
by the qualified taxpayer on or after the targeted tax area expiration
date. However, wages paid or incurred with respect to qualified
employees who are employed by the qualified taxpayer within the
targeted tax area within the 60-month period prior to the targeted
tax area expiration date shall continue to qualify for the credit
under this section after the targeted tax area expiration date, in
accordance with all provisions of this section applied as if the
targeted tax area designation were still in existence and binding.

(2) “Minimum wage” means the wage established by the
Industrial Welfare Commission as provided for in Chapter 1
(commencing with Section 1171) of Part 4 of Division 2 of the
Labor Code.

(3) “Targeted tax area expiration date” means the date the
targeted tax area designation expires, is revoked, is no longer
binding, becomes inoperative, or is repealed.

(4) (A) “Qualified employee” means an individual who meets
all of the following requirements:

(i) At least 90 percent of his or her services for the qualified
taxpayer during the taxable year are directly related to the conduct
of the qualified taxpayer’s trade or business located in a targeted
tax area.

(ii) Performs at least 50 percent of his or her services for the
qualified taxpayer during the taxable year in a targeted tax area.

(iii) Is hired by the qualified taxpayer after the date of original
designation of the area in which services were performed as a
targeted tax area.

(iv) Is any of the following:

(I) Immediately preceding the qualified employee’s
commencement of employment with the qualified taxpayer, was
a person eligible for services under the federal Job Training
Partnership Act (29 U.S.C. Sec. 1501 et seq.), or its successor,
who is receiving, or is eligible to receive, subsidized employment,
training, or services funded by the federal Job Training Partnership
Act, or its successor.

(II) Immediately preceding the qualified employee’s
commencement of employment with the qualified taxpayer, was
a person eligible to be a voluntary or mandatory registrant under
the Greater Avenues for Independence Act of 1985 (GAIN)
provided for pursuant to Article 3.2 (commencing with Section
11320) of Chapter 2 of Part 3 of Division 9 of the Welfare and
Institutions Code, or its successor.

(III) Immediately preceding the qualified employee’s
commencement of employment with the qualified taxpayer, was
an economically disadvantaged individual 14 years of age or older.

(IV) Immediately preceding the qualified employee’s
commencement of employment with the qualified taxpayer, was
a dislocated worker who meets any of the following:

(ia) Has been terminated or laid off or who has received a notice
of termination or layoff from employment, is eligible for or has
exhausted entitlement to unemployment insurance benefits, and
is unlikely to return to his or her previous industry or occupation.

(ib) Has been terminated or has received a notice of termination
of employment as a result of any permanent closure or any
substantial layoff at a plant, facility, or enterprise, including an
individual who has not received written notification but whose
employer has made a public announcement of the closure or layoff.

(ic) Is long-term unemployed and has limited opportunities for
employment or reemployment in the same or a similar occupation
in the area in which the individual resides, including an individual
55 years of age or older who may have substantial barriers to
employment by reason of age.

(id) Was self-employed (including farmers and ranchers) and
is unemployed as a result of general economic conditions in the
community in which he or she resides or because of natural
disasters.

(ie) Was a civilian employee of the Department of Defense
employed at a military installation being closed or realigned under
the Defense Base Closure and Realignment Act of 1990.

(if) Was an active member of the Armed Forces or National
Guard as of September 30, 1990, and was either involuntarily
separated or separated pursuant to a special benefits program.

(ig) Is a seasonal or migrant worker who experiences chronic
seasonal unemployment and underemployment in the agriculture
industry, aggravated by continual advancements in technology and
mechanization.

(ih) Has been terminated or laid off, or has received a notice of
termination or layoff, as a consequence of compliance with the
Clean Air Act.

(V) Immediately preceding the qualified employee’s
commencement of employment with the qualified taxpayer, was
a disabled individual who is eligible for or enrolled in, or has
completed a state rehabilitation plan or is a service-connected
disabled veteran, veteran of the Vietnam era, or veteran who is
recently separated from military service.

(VI) Immediately preceding the qualified employee’s
commencement of employment with the qualified taxpayer, was
an ex-offender. An individual shall be treated as convicted if he
or she was placed on probation by a state court without a finding
of guilty.

(VII) Immediately preceding the qualified employee’s
commencement of employment with the qualified taxpayer, was
a person eligible for or a recipient of any of the following:

(ia) Federal Supplemental Security Income benefits.

(ib) Aid to Families with Dependent Children.

(ic) CalFresh benefits.

(id) State and local general assistance.

(VIII) Immediately preceding the qualified employee’s
commencement of employment with the qualified taxpayer, was
a member of a federally recognized Indian tribe, band, or other
group of Native American descent.

(IX) Immediately preceding the qualified employee’s
commencement of employment with the qualified taxpayer, was
a resident of a targeted tax area.

(X) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was a member
of a targeted group as defined in Section 51(d) of the Internal
Revenue Code, or its successor.

(B) Priority for employment shall be provided to an individual
who is enrolled in a qualified program under the federal Job
Training Partnership Act or the Greater Avenues for Independence
Act of 1985 or who is eligible as a member of a targeted group
under the Work Opportunity Tax Credit (Section 51 of the Internal
Revenue Code), or its successor.

(5) (A) “Qualified taxpayer” means a person or entity that meets
both of the following:

(i) Is engaged in a trade or business within a targeted tax area
designated pursuant to Chapter 12.93 (commencing with Section
7097) of Division 7 of Title 1 of the Government Code.

(ii) Is engaged in those lines of business described in Codes
2000 to 2099, inclusive; 2200 to 3999, inclusive; 4200 to 4299,
inclusive; 4500 to 4599, inclusive; and 4700 to 5199, inclusive,
of the Standard Industrial Classification (SIC) Manual published
by the United States Office of Management and Budget, 1987
edition.

(B) In the case of any passthrough entity, the determination of
whether a taxpayer is a qualified taxpayer under this section shall
be made at the entity level and any credit under this section or
Section 23634 shall be allowed to the passthrough entity and passed
through to the partners or shareholders in accordance with
applicable provisions of this part or Part 11 (commencing with
Section 23001). For purposes of this subdivision, the term
“passthrough entity” means any partnership or S corporation.

(6) “Seasonal employment” means employment by a qualified
taxpayer that has regular and predictable substantial reductions in
trade or business operations.

(c) If the qualified taxpayer is allowed a credit for qualified
wages pursuant to this section, only one credit shall be allowed to
the taxpayer under this part with respect to those qualified wages.

(d) The qualified taxpayer shall do both of the following:

(1) Obtain from the Employment Development Department, as
permitted by federal law, the local county or city Job Training
Partnership Act administrative entity, the local county GAIN office
or social services agency, or the local government administering
the targeted tax area, a certification that provides that a qualified
employee meets the eligibility requirements specified in clause
(iv) of subparagraph (A) of paragraph (4) of subdivision (b). The
Employment Development Department may provide preliminary
screening and referral to a certifying agency. The Department of
Housing and Community Development shall develop regulations
governing the issuance of certificates pursuant to subdivision (g)
of Section 7097 of the Government Code, and shall develop forms
for this purpose.

(2) Retain a copy of the certification and provide it upon request
to the Franchise Tax Board.

(e) (1) For purposes of this section:

(A) All employees of trades or businesses, which are not
incorporated, that are under common control shall be treated as
employed by a single taxpayer.

(B) The credit, if any, allowable by this section with respect to
each trade or business shall be determined by reference to its
proportionate share of the expense of the qualified wages giving
rise to the credit, and shall be allocated in that manner.

(C) Principles that apply in the case of controlled groups of
corporations, as specified in subdivision (e) of Section 23634,
apply with respect to determining employment.

(2) If an employer acquires the major portion of a trade or
business of another employer (hereinafter in this paragraph referred
to as the “predecessor”) or the major portion of a separate unit of
a trade or business of a predecessor, then, for purposes of applying
this section (other than subdivision (f)) for any calendar year ending
after that acquisition, the employment relationship between a
qualified employee and an employer shall not be treated as
terminated if the employee continues to be employed in that trade
or business.

(f) (1) (A) If the employment, other than seasonal employment,
of any qualified employee, with respect to whom qualified wages
are taken into account under subdivision (a) is terminated by the
qualified taxpayer at any time during the first 270 days of that
employment (whether or not consecutive) or before the close of
the 270th calendar day after the day in which that employee
completes 90 days of employment with the qualified taxpayer, the
tax imposed by this part for the taxable year in which that
employment is terminated shall be increased by an amount equal
to the credit allowed under subdivision (a) for that taxable year
and all prior taxable years attributable to qualified wages paid or
incurred with respect to that employee.

(B) If the seasonal employment of any qualified employee, with
respect to whom qualified wages are taken into account under
subdivision (a) is not continued by the qualified taxpayer for a
period of 270 days of employment during the 60-month period
beginning with the day the qualified employee commences seasonal
employment with the qualified taxpayer, the tax imposed by this
part, for the taxable year that includes the 60th month following
the month in which the qualified employee commences seasonal
employment with the qualified taxpayer, shall be increased by an
amount equal to the credit allowed under subdivision (a) for that
taxable year and all prior taxable years attributable to qualified
wages paid or incurred with respect to that qualified employee.

(2) (A) Subparagraph (A) of paragraph (1) does not apply to
any of the following:

(i) A termination of employment of a qualified employee who
voluntarily leaves the employment of the qualified taxpayer.

(ii) A termination of employment of a qualified employee who,
before the close of the period referred to in subparagraph (A) of
paragraph (1), becomes disabled and unable to perform the services
of that employment, unless that disability is removed before the
close of that period and the qualified taxpayer fails to offer
reemployment to that employee.

(iii) A termination of employment of a qualified employee, if
it is determined that the termination was due to the misconduct (as
defined in Sections 1256-30 to 1256-43, inclusive, of Title 22 of
the California Code of Regulations) of that employee.

(iv) A termination of employment of a qualified employee due
to a substantial reduction in the trade or business operations of the
qualified taxpayer.

(v) A termination of employment of a qualified employee, if
that employee is replaced by other qualified employees so as to
create a net increase in both the number of employees and the
hours of employment.

(B) Subparagraph (B) of paragraph (1) shall not apply to any
of the following:

(i) A failure to continue the seasonal employment of a qualified
employee who voluntarily fails to return to the seasonal
employment of the qualified taxpayer.

(ii) A failure to continue the seasonal employment of a qualified
employee who, before the close of the period referred to in
subparagraph (B) of paragraph (1), becomes disabled and unable
to perform the services of that seasonal employment, unless that
disability is removed before the close of that period and the
qualified taxpayer fails to offer seasonal employment to that
qualified employee.

(iii) A failure to continue the seasonal employment of a qualified
employee, if it is determined that the failure to continue the
seasonal employment was due to the misconduct (as defined in
Sections 1256-30 to 1256-43, inclusive, of Title 22 of the California
Code of Regulations) of that qualified employee.

(iv) A failure to continue seasonal employment of a qualified
employee due to a substantial reduction in the regular seasonal
trade or business operations of the qualified taxpayer.

(v) A failure to continue the seasonal employment of a qualified
employee, if that qualified employee is replaced by other qualified
employees so as to create a net increase in both the number of
seasonal employees and the hours of seasonal employment.

(C) For purposes of paragraph (1), the employment relationship
between the qualified taxpayer and a qualified employee shall not
be treated as terminated by reason of a mere change in the form
of conducting the trade or business of the qualified taxpayer, if the
qualified employee continues to be employed in that trade or
business and the qualified taxpayer retains a substantial interest
in that trade or business.

(3) An increase in tax under paragraph (1) shall not be treated
as tax imposed by this part for purposes of determining the amount
of any credit allowable under this part.

(g) In the case of an estate or trust, both of the following apply:

(1) The qualified wages for any taxable year shall be apportioned
between the estate or trust and the beneficiaries on the basis of the
income of the estate or trust allocable to each.

(2) A beneficiary to whom any qualified wages have been
apportioned under paragraph (1) shall be treated, for purposes of
this part, as the employer with respect to those wages.

(h) For purposes of this section, “targeted tax area” means an
area designated pursuant to Chapter 12.93 (commencing with
Section 7097) of Division 7 of Title 1 of the Government Code.

(i) In the case in which the credit otherwise allowed under this
section exceeds the “net tax” for the taxable year, that portion of
the credit that exceeds the “net tax” may be carried over and added
to the credit, if any, in the succeeding 10 taxable years, if necessary,
until the credit is exhausted. The credit shall be applied first to the
earliest taxable years possible.

(j) (1) The amount of the credit otherwise allowed under this
section and Section 17053.33, including any credit carryover from
prior years, that may reduce the “net tax” for the taxable year shall
not exceed the amount of tax that would be imposed on the
qualified taxpayer’s business income attributable to the targeted
tax area determined as if that attributable income represented all
of the income of the qualified taxpayer subject to tax under this
part.

(2) Attributable income shall be that portion of the taxpayer’s
California source business income that is apportioned to the
targeted tax area. For that purpose, the taxpayer’s business income
attributable to sources in this state first shall be determined in
accordance with Chapter 17 (commencing with Section 25101) of
Part 11. That business income shall be further apportioned to the
targeted tax area in accordance with Article 2 (commencing with
Section 25120) of Chapter 17 of Part 11, modified for purposes
of this section in accordance with paragraph (3).

(3) Business income shall be apportioned to the targeted tax
area by multiplying the total California business income of the
taxpayer by a fraction, the numerator of which is the property
factor plus the payroll factor, and the denominator of which is two.
For purposes of this paragraph:

(A) The property factor is a fraction, the numerator of which is
the average value of the taxpayer’s real and tangible personal
property owned or rented and used in the targeted tax area during
the taxable year, and the denominator of which is the average value
of all the taxpayer’s real and tangible personal property owned or
rented and used in this state during the taxable year.

(B) The payroll factor is a fraction, the numerator of which is
the total amount paid by the taxpayer in the targeted tax area during
the taxable year for compensation, and the denominator of which
is the total compensation paid by the taxpayer in this state during
the taxable year.

(4) The portion of any credit remaining, if any, after application
of this subdivision, shall be carried over to succeeding taxable
years, if necessary, until the credit is exhausted, as if it were an
amount exceeding the “net tax” for the taxable year, as provided
in subdivision (i). However, the portion of any credit remaining
for carryover to taxable years beginning on or after January 1,
2014, if any, after application of this subdivision, shall be carried
over only to the succeeding 10 taxable years, if necessary, until
the credit is exhausted, as if it were an amount exceeding the “net
tax” for the taxable year, as provided in subdivision (i).

(5) In the event that a credit carryover is allowable under
subdivision (i) for any taxable year after the targeted tax area
expiration date, the targeted tax area shall be deemed to remain in
existence for purposes of computing the limitation specified in
this subdivision.

(k) (1) Except as provided in paragraph (2), this section shall
cease to be operative for taxable years beginning on or after January
1, 2014, and shall be repealed on December 1, 2019.

(2) The section shall continue to apply with respect to qualified
employees who are employed by the qualified taxpayer within the
targeted tax area within the 60-month period immediately preceding
January 1, 2014, and qualified wages paid or incurred with respect
to those qualified employees shall continue to qualify for the credit
under this section for taxable years beginning on or after January
1, 2014, in accordance with this section, as amended by the act
adding this subdivision.

begin delete SEC. 455. end delete
begin insert SEC. 462. end insert   

Section 17053.46 of the Revenue and Taxation Code
is amended to read:

17053.46.  

(a) For each taxable year beginning on or after
January 1, 1995, there shall be allowed as a credit against the “net
tax” (as defined in Section 17039) to a qualified taxpayer for hiring
a qualified disadvantaged individual or a qualified displaced
employee during the taxable year for employment in the LAMBRA.
The credit shall be equal to the sum of each of the following:

(1) Fifty percent of the qualified wages in the first year of
employment.

(2) Forty percent of the qualified wages in the second year of
employment.

(3) Thirty percent of the qualified wages in the third year of
employment.

(4) Twenty percent of the qualified wages in the fourth year of
employment.

(5) Ten percent of the qualified wages in the fifth year of
employment.

(b) For purposes of this section:

(1) “Qualified wages” means:

(A) That portion of wages paid or incurred by the employer
during the taxable year to qualified disadvantaged individuals or
qualified displaced employees that does not exceed 150 percent
of the minimum wage.

(B) The total amount of qualified wages which may be taken
into account for purposes of claiming the credit allowed under this
section shall not exceed two million dollars ($2,000,000) per
taxable year.

(C) Wages received during the 60-month period beginning with
the first day the individual commences employment with the
taxpayer. Reemployment in connection with any increase, including
a regularly occurring seasonal increase, in the trade or business
operations of the qualified taxpayer does not constitute
commencement of employment for purposes of this section.

(D) Qualified wages do not include any wages paid or incurred
by the qualified taxpayer on or after the LAMBRA expiration date.
However, wages paid or incurred with respect to qualified
disadvantaged individuals or qualified displaced employees who
are employed by the qualified taxpayer within the LAMBRA within
the 60-month period prior to the LAMBRA expiration date shall
continue to qualify for the credit under this section after the
LAMBRA expiration date, in accordance with all provisions of
this section applied as if the LAMBRA designation were still in
existence and binding.

(2) “Minimum wage” means the wage established by the
Industrial Welfare Commission as provided for in Chapter 1
(commencing with Section 1171) of Part 4 of Division 2 of the
Labor Code.

(3) “LAMBRA” means a local agency military base recovery
area designated in accordance with Section 7114 of the Government
Code.

(4) “Qualified disadvantaged individual” means an individual
who satisfies all of the following requirements:

(A) (i) At least 90 percent of whose services for the taxpayer
during the taxable year are directly related to the conduct of the
taxpayer’s trade or business located in a LAMBRA.

(ii) Who performs at least 50 percent of his or her services for
the taxpayer during the taxable year in the LAMBRA.

(B) Who is hired by the employer after the designation of the
area as a LAMBRA in which the individual’s services were
primarily performed.

(C) Who is any of the following immediately preceding the
individual’s commencement of employment with the taxpayer:

(i) An individual who has been determined eligible for services
under the federal Job Training Partnership Act (29 U.S.C. Sec.
1501 et seq.).

(ii) Any voluntary or mandatory registrant under the Greater
Avenues for Independence Act of 1985 as provided pursuant to
Article 3.2 (commencing with Section 11320) of Chapter 2 of Part
3 of Division 9 of the Welfare and Institutions Code.

(iii) An economically disadvantaged individual age 16 years or
older.

(iv) A dislocated worker who meets any of the following
conditions:

(I) Has been terminated or laid off or who has received a notice
of termination or layoff from employment, is eligible for or has
exhausted entitlement to unemployment insurance benefits, and
is unlikely to return to his or her previous industry or occupation.

(II) Has been terminated or has received a notice of termination
of employment as a result of any permanent closure or any
substantial layoff at a plant, facility, or enterprise, including an
individual who has not received written notification but whose
employer has made a public announcement of the closure or layoff.

(III) Is long-term unemployed and has limited opportunities for
employment or reemployment in the same or a similar occupation
in the area in which the individual resides, including an individual
55 years of age or older who may have substantial barriers to
employment by reason of age.

(IV) Was self-employed (including farmers and ranchers) and
is unemployed as a result of general economic conditions in the
community in which he or she resides or because of natural
disasters.

(V) Was a civilian employee of the Department of Defense
employed at a military installation being closed or realigned under
the Defense Base Closure and Realignment Act of 1990.

(VI) Was an active member of the Armed Forces or National
Guard as of September 30, 1990, and was either involuntarily
separated or separated pursuant to a special benefits program.

(VII) Experiences chronic seasonal unemployment and
underemployment in the agriculture industry, aggravated by
continual advancements in technology and mechanization.

(VIII) Has been terminated or laid off or has received a notice
of termination or layoff as a consequence of compliance with the
Clean Air Act.

(v) An individual who is enrolled in or has completed a state
rehabilitation plan or is a service-connected disabled veteran,
veteran of the Vietnam era, or veteran who is recently separated
from military service.

(vi) An ex-offender. An individual shall be treated as convicted
if he or she was placed on probation by a state court without a
finding of guilty.

(vii) A recipient of:

(I) Federal Supplemental Security Income benefits.

(II) Aid to Families with Dependent Children.

(III) CalFresh benefits.

(IV) State and local general assistance.

(viii) Is a member of a federally recognized Indian tribe, band,
or other group of Native American descent.

(5) “Qualified taxpayer” means a taxpayer or partnership that
conducts a trade or business within a LAMBRA and, for the first
two taxable years, has a net increase in jobs (defined as 2,000 paid
hours per employee per year) of one or more employees in the
LAMBRA.

(A) The net increase in the number of jobs shall be determined
by subtracting the total number of full-time employees (defined
as 2,000 paid hours per employee per year) the taxpayer employed
in this state in the taxable year prior to commencing business
operations in the LAMBRA from the total number of full-time
employees the taxpayer employed in this state during the second
taxable year after commencing business operations in the
LAMBRA. For taxpayers who commence doing business in this
state with their LAMBRA business operation, the number of
employees for the taxable year prior to commencing business
operations in the LAMBRA shall be zero. If the taxpayer has a net
increase in jobs in the state, the credit shall be allowed only if one
or more full-time employees is employed within the LAMBRA.

(B) The total number of employees employed in the LAMBRA
shall equal the sum of both of the following:

(i) The total number of hours worked in the LAMBRA for the
taxpayer by employees (not to exceed 2,000 hours per employee)
who are paid an hourly wage divided by 2,000.

(ii) The total number of months worked in the LAMBRA for
the taxpayer by employees who are salaried employees divided
by 12.

(C) In the case of a taxpayer who first commences doing
business in the LAMBRA during the taxable year, for purposes of
clauses (i) and (ii), respectively, of subparagraph (B), the divisors
“2,000” and “12” shall be multiplied by a fraction, the numerator
of which is the number of months of the taxable year that the
taxpayer was doing business in the LAMBRA and the denominator
of which is 12.

(6) “Qualified displaced employee” means an individual who
satisfies all of the following requirements:

(A) Any civilian or military employee of a base or former base
who has been displaced as a result of a federal base closure act.

(B) (i) At least 90 percent of whose services for the taxpayer
during the taxable year are directly related to the conduct of the
taxpayer’s trade or business located in a LAMBRA.

(ii) Who performs at least 50 percent of his or her services for
the taxpayer during the taxable year in a LAMBRA.

(C) Who is hired by the employer after the designation of the
area in which services were performed as a LAMBRA.

(7) “Seasonal employment” means employment by a qualified
taxpayer that has regular and predictable substantial reductions in
trade or business operations.

(8) “LAMBRA expiration date” means the date the LAMBRA
designation expires, is no longer binding, becomes inoperative, or
is repealed.

(c) For qualified disadvantaged individuals or qualified displaced
employees hired on or after January 1, 2001, the taxpayer shall do
both of the following:

(1) Obtain from the Employment Development Department, as
permitted by federal law, the local county or city Job Training
Partnership Act administrative entity, the local county GAIN office
or social services agency, or the local government administering
the LAMBRA, a certification that provides that a qualified
disadvantaged individual or qualified displaced employee meets
the eligibility requirements specified in subparagraph (C) of
paragraph (4) of subdivision (b) or subparagraph (A) of paragraph
(6) of subdivision (b). The Employment Development Department
may provide preliminary screening and referral to a certifying
agency. The Department of Housing and Community Development
shall develop regulations governing the issuance of certificates
pursuant to Section 7114.2 of the Government Code and shall
develop forms for this purpose.

(2) Retain a copy of the certification and provide it upon request
to the Franchise Tax Board.

(d) (1) For purposes of this section, both of the following apply:

(A) All employees of trades or businesses that are under
common control shall be treated as employed by a single employer.

(B) The credit (if any) allowable by this section with respect to
each trade or business shall be determined by reference to its
proportionate share of the qualified wages giving rise to the credit.

The regulations prescribed under this paragraph shall be based
on principles similar to the principles that apply in the case of
controlled groups of corporations as specified in paragraph (1) of
subdivision (d) of Section 23622.7.

(2) If an employer acquires the major portion of a trade or
business of another employer (hereinafter in this paragraph referred
to as the “predecessor”) or the major portion of a separate unit of
a trade or business of a predecessor, then, for purposes of applying
this section (other than subdivision (d)) for any calendar year
ending after that acquisition, the employment relationship between
an employee and an employer shall not be treated as terminated if
the employee continues to be employed in that trade or business.

(e) (1) (A) If the employment, other than seasonal employment,
of any employee, with respect to whom qualified wages are taken
into account under subdivision (a), is terminated by the taxpayer
at any time during the first 270 days of that employment (whether
or not consecutive) or before the close of the 270th calendar day
after the day in which that employee completes 90 days of
employment with the taxpayer, the tax imposed by this part for
the taxable year in which that employment is terminated shall be
increased by an amount (determined under those regulations) equal
to the credit allowed under subdivision (a) for that taxable year
and all prior taxable years attributable to qualified wages paid or
incurred with respect to that employee.

(B) If the seasonal employment of a qualified disadvantaged
individual, with respect to whom qualified wages are taken into
account under subdivision (a), is not continued by the qualified
taxpayer for a period of 270 days of employment during the
60-month period beginning with the day the qualified
disadvantaged individual commences seasonal employment with
the qualified taxpayer, the tax imposed by this part, for the taxable
year that includes the 60th month following the month in which
the qualified disadvantaged individual commences seasonal
employment with the qualified taxpayer, shall be increased by an
amount equal to the credit allowed under subdivision (a) for that
taxable year and all prior taxable years attributable to qualified
wages paid or incurred with respect to that qualified disadvantaged
individual.

(2) (A) Subparagraph (A) of paragraph (1) does not apply to
any of the following:

(i) A termination of employment of an employee who voluntarily
leaves the employment of the taxpayer.

(ii) A termination of employment of an individual who, before
the close of the period referred to in subparagraph (A) of paragraph
(1), becomes disabled to perform the services of that employment,
unless that disability is removed before the close of that period
and the taxpayer fails to offer reemployment to that individual.

(iii) A termination of employment of an individual, if it is
determined that the termination was due to the misconduct (as
defined in Sections 1256-30 to 1256-43, inclusive, of Title 22 of
the California Code of Regulations) of that individual.

(iv) A termination of employment of an individual due to a
substantial reduction in the trade or business operations of the
taxpayer.

(v) A termination of employment of an individual, if that
individual is replaced by other qualified employees so as to create
a net increase in both the number of employees and the hours of
employment.

(B) Subparagraph (B) of paragraph (1) does not apply to any
of the following:

(i) A failure to continue the seasonal employment of a qualified
disadvantaged individual who voluntarily fails to return to the
seasonal employment of the qualified taxpayer.

(ii) A failure to continue the seasonal employment of a qualified
disadvantaged individual who, before the close of the period
referred to in subparagraph (B) of paragraph (1), becomes disabled
and unable to perform the services of that seasonal employment,
unless that disability is removed before the close of that period
and the qualified taxpayer fails to offer seasonal employment to
that individual.

(iii) A failure to continue the seasonal employment of a qualified
disadvantaged individual, if it is determined that the failure to
continue the seasonal employment was due to the misconduct (as
defined in Sections 1256-30 to 1256-43, inclusive, of Title 22 of
the California Code of Regulations) of that qualified disadvantaged
individual.

(iv) A failure to continue seasonal employment of a qualified
disadvantaged individual due to a substantial reduction in the
regular seasonal trade or business operations of the qualified
taxpayer.

(v) A failure to continue the seasonal employment of a qualified
disadvantaged individual, if that individual is replaced by other
qualified displaced employees so as to create a net increase in both
the number of seasonal employees and the hours of seasonal
employment.

(C) For purposes of paragraph (1), the employment relationship
between the taxpayer and an employee shall not be treated as
terminated by reason of a mere change in the form of conducting
the trade or business of the taxpayer, if the employee continues to
be employed in that trade or business and the taxpayer retains a
substantial interest in that trade or business.

(3) An increase in tax under paragraph (1) shall not be treated
as tax imposed by this part for purposes of determining the amount
of any credit allowable under this part.

(4) At the close of the second taxable year, if the taxpayer has
not increased the number of its employees as determined by
paragraph (5) of subdivision (b), then the amount of the credit
previously claimed shall be added to the taxpayer’s net tax for the
taxpayer’s second taxable year.

(f) In the case of an estate or trust, both of the following apply:

(1) The qualified wages for any taxable year shall be apportioned
between the estate or trust and the beneficiaries on the basis of the
income of the estate or trust allocable to each.

(2) A beneficiary to whom any qualified wages have been
apportioned under paragraph (1) shall be treated (for purposes of
this part) as the employer with respect to those wages.

(g) The credit shall be reduced by the credit allowed under
Section 17053.7. The credit shall also be reduced by the federal
credit allowed under Section 51 of the Internal Revenue Code.

In addition, any deduction otherwise allowed under this part for
the wages or salaries paid or incurred by the taxpayer upon which
the credit is based shall be reduced by the amount of the credit,
prior to any reduction required by subdivision (h) or (i).

(h) In the case where the credit otherwise allowed under this
section exceeds the “net tax” for the taxable year, that portion of
the credit that exceeds the “net tax” may be carried over and added
to the credit, if any, in the succeeding 10 taxable years, if necessary,
until the credit is exhausted. The credit shall be applied first to the
earliest taxable years possible.

(i) (1) The amount of credit otherwise allowed under this section
and Section 17053.45, including prior year credit carryovers, that
may reduce the “net tax” for the taxable year shall not exceed the
amount of tax that would be imposed on the taxpayer’s business
income attributed to a LAMBRA determined as if that attributed
income represented all of the net income of the taxpayer subject
to tax under this part.

(2) Attributable income shall be that portion of the taxpayer’s
California source business income that is apportioned to the
LAMBRA. For that purpose, the taxpayer’s business income that
is attributable to sources in this state first shall be determined in
accordance with Chapter 17 (commencing with Section 25101) of
Part 11. That business income shall be further apportioned to the
LAMBRA in accordance with Article 2 (commencing with Section
25120) of Chapter 17 of Part 11, modified for purposes of this
section in accordance with paragraph (3).

(3) Income shall be apportioned to a LAMBRA by multiplying
the total California business income of the taxpayer by a fraction,
the numerator of which is the property factor plus the payroll factor,
and the denominator of which is two. For purposes of this
paragraph:

(A) The property factor is a fraction, the numerator of which is
the average value of the taxpayer’s real and tangible personal
property owned or rented and used in the LAMBRA during the
taxable year, and the denominator of which is the average value
of all the taxpayer’s real and tangible personal property owned or
rented and used in this state during the taxable year.

(B) The payroll factor is a fraction, the numerator of which is
the total amount paid by the taxpayer in the LAMBRA during the
taxable year for compensation, and the denominator of which is
the total compensation paid by the taxpayer in this state during the
taxable year.

(4) The portion of any credit remaining, if any, after application
of this subdivision, shall be carried over to succeeding taxable
years, if necessary, until the credit is exhausted, as if it were an
amount exceeding the “net tax” for the taxable year, as provided
in subdivision (h). However, the portion of any credit remaining
for carryover to taxable years beginning on or after January 1,
2014, if any, after application of this subdivision, shall be carried
over only to the succeeding 10 taxable years if necessary, until the
credit is exhausted, as if it were an amount exceeding the “net tax”
for the taxable year, as provided in subdivision (h).

(j) If the taxpayer is allowed a credit pursuant to this section for
qualified wages paid or incurred, only one credit shall be allowed
to the taxpayer under this part with respect to any wage consisting
in whole or in part of those qualified wages.

(k) (1) Except as provided in paragraph (2), this section shall
cease to be operative on January 1, 2014, and shall be repealed on
December 1, 2019. A credit shall not be allowed under this section
with respect to an employee who first commences employment
with a qualified taxpayer on or after January 1, 2014.

(2) This section shall continue to apply with respect to qualified
disadvantaged individuals or qualified displaced employees who
are employed by the qualified taxpayer within the LAMBRA within
the 60-month period immediately preceding January 1, 2014, and
qualified wages paid or incurred with respect to those qualified
disadvantaged individuals or qualified displaced employees shall
continue to qualify for the credit under this section for taxable
years beginning on or after January 1, 2014, in accordance with
this section, as amended by the act adding this subdivision.

begin delete SEC. 456. end delete
begin insert SEC. 463. end insert   

Section 17053.73 of the Revenue and Taxation Code
is amended to read:

17053.73.  

(a) (1) For each taxable year beginning on or after
January 1, 2014, and before January 1, 2021, there shall be allowed
to a qualified taxpayer that hires a qualified full-time employee
and pays or incurs qualified wages attributable to work performed
by the qualified full-time employee in a designated census tract
or economic development area, and that receives a tentative credit
reservation for that qualified full-time employee, a credit against
the “net tax,” as defined in Section 17039, in an amount calculated
under this section.

(2) The amount of the credit allowable under this section for a
taxable year shall be equal to the product of the tentative credit
amount for the taxable year and the applicable percentage for that
taxable year.

(3) (A) If a qualified taxpayer relocates to a designated census
tract or economic development area, the qualified taxpayer shall
be allowed a credit with respect to qualified wages for each
qualified full-time employee employed within the new location
only if the qualified taxpayer provides each employee at the
previous location or locations a written offer of employment at the
new location in the designated census tract or economic
development area with comparable compensation.

(B) For purposes of this paragraph, “relocates to a designated
census tract or economic development area” means an increase in
the number of qualified full-time employees, employed by a
qualified taxpayer, within a designated census tract or tracts or
economic development areas within a 12-month period in which
there is a decrease in the number of full-time employees, employed
by the qualified taxpayer in this state, but outside of designated
census tracts or economic development areas.

(C) This paragraph does not apply to a small business.

(4) The credit allowed by this section may be claimed only on
a timely filed original return of the qualified taxpayer and only
with respect to a qualified full-time employee for whom the
qualified taxpayer has received a tentative credit reservation.

(b) For purposes of this section:

(1) The “tentative credit amount” for a taxable year shall be
equal to the product of the applicable credit percentage for each
qualified full-time employee and the qualified wages paid by the
qualified taxpayer during the taxable year to that qualified full-time
employee.

(2) The “applicable percentage” for a taxable year shall be equal
to a fraction, the numerator of which is the net increase in the total
number of full-time employees employed in this state during the
taxable year, determined on an annual full-time equivalent basis,
as compared with the total number of full-time employees
employed in this state during the base year, determined on the
same basis, and the denominator of which shall be the total number
of qualified full-time employees employed in this state during the
taxable year. The applicable percentage shall not exceed 100
percent.

(3) The “applicable credit percentage” means the credit
percentage for the calendar year during which a qualified full-time
employee was first employed by the qualified taxpayer. The
applicable credit percentage for all calendar years shall be 35
percent.

(4) “Base year” means the 2013 taxable year, except in the case
of a qualified taxpayer who first hires a qualified full-time
employee in a taxable year beginning on or after January 1, 2015,
the base year means the taxable year immediately preceding the
taxable year in which a qualified full-time employee was first hired
by the qualified taxpayer.

(5) “Acquired” includes any gift, inheritance, transfer incident
to divorce, or any other transfer, whether or not for consideration.

(6) “Annual full-time equivalent” means either of the following:

(A) In the case of a full-time employee paid hourly qualified
wages, “annual full-time equivalent” means the total number of
hours worked for the qualified taxpayer by the employee, not to
exceed 2,000 hours per employee, divided by 2,000.

(B) In the case of a salaried full-time employee, “annual
full-time equivalent” means the total number of weeks worked for
the qualified taxpayer by the employee divided by 52.

(7) “Designated census tract” means a census tract within the
state that is determined by the Department of Finance to have a
civilian unemployment rate that is within the top 25 percent of all
census tracts within the state and has a poverty rate within the top
25 percent of all census tracts within the state, as prescribed in
Section 13073.5 of the Government Code.

(8) “Economic development area” means either of the following:

(A) A former enterprise zone. For purposes of this section,
“former enterprise zone” means an enterprise zone designated and
in effect as of December 31, 2011, any enterprise zone designated
during 2012, and any revision of an enterprise zone prior to June
30, 2013, under former Chapter 12.8 (commencing with Section
7070) of Division 7 of Title 1 of the Government Code, as in effect
on December 31, 2012, excluding any census tract within an
enterprise zone that is identified by the Department of Finance
pursuant to Section 13073.5 of the Government Code as a census
tract within the lowest quartile of census tracts with the lowest
civilian unemployment and poverty.

(B) A local agency military base recovery area designated as
of the effective date of the act adding this subparagraph, in
accordance with Section 7114 of the Government Code.

(9) “Minimum wage” means the wage established pursuant to
Chapter 1 (commencing with Section 1171) of Part 4 of Division
2 of the Labor Code.

(10) (A) “Qualified full-time employee” means an individual
who meets all of the following requirements:

(i) Performs at least 50 percent of his or her services for the
qualified taxpayer during the taxable year in a designated census
tract or economic development area.

(ii) Receives starting wages that are at least 150 percent of the
minimum wage.

(iii) Is hired by the qualified taxpayer on or after January 1,
2014.

(iv) Is hired by the qualified taxpayer after the date the
Department of Finance determines that the census tract referred
to in clause (i) is a designated census tract or that the census tracts
within a former enterprise zone are not census tracts with the lowest
civilian unemployment and poverty.

(v) Satisfies either of the following conditions:

(I) Is paid qualified wages by the qualified taxpayer for services
not less than an average of 35 hours per week.

(II) Is a salaried employee and was paid compensation during
the taxable year for full-time employment, within the meaning of
Section 515 of the Labor Code, by the qualified taxpayer.

(vi) Upon commencement of employment with the qualified
taxpayer, satisfies any of the following conditions:

(I) Was unemployed for the six months immediately preceding
employment with the qualified taxpayer. In the case of an
individual that completed a program of study at a college,
university, or other postsecondary educational institution, received
a baccalaureate, postgraduate, or professional degree, and was
unemployed for the six months immediately preceding employment
with the qualified taxpayer, that individual must have completed
that program of study at least 12 months prior to the individual’s
commencement of employment with the qualified taxpayer.

(II) Is a veteran who separated from service in the Armed Forces
of the United States within the 12 months preceding
commencement of employment with the qualified taxpayer.

(III) Was a recipient of the credit allowed under Section 32 of
the Internal Revenue Code, relating to earned income, as applicable
for federal purposes, for the previous taxable year.

(IV) Is an ex-offender previously convicted of a felony.

(V) Is a recipient of either CalWORKs, in accordance with
Article 2 (commencing with Section 11250) of Chapter 2 of Part
3 of Division 9 of the Welfare and Institutions Code, or general
assistance, in accordance with Section 17000.5 of the Welfare and
Institutions Code.

(B) An individual may be considered a qualified full-time
employee only for the period of time commencing with the date
the individual is first employed by the qualified taxpayer and
ending 60 months thereafter.

(11) (A) “Qualified taxpayer” means a person or entity engaged
in a trade or business within a designated census tract or economic
development area that, during the taxable year, pays or incurs
qualified wages.

(B) In the case of any pass-thru entity, the determination of
whether a taxpayer is a qualified taxpayer under this section shall
be made at the entity level and any credit under this section or
Section 23626 shall be allowed to the pass-thru entity and passed
through to the partners and shareholders in accordance with
applicable provisions of this part or Part 11 (commencing with
Section 23001). For purposes of this subdivision, the term
“pass-thru entity” means any partnership or “S” corporation.

(C) “Qualified taxpayers” shall not include any of the following:

(i) Employers that provide temporary help services, as described
in Code 561320 of the North American Industry Classification
System (NAICS) published by the United States Office of
Management and Budget, 2012 edition.

(ii) Employers that provide retail trade services, as described
in Sector 44-45 of the North American Industry Classification
System (NAICS) published by the United States Office of
Management and Budget, 2012 edition.

(iii) Employers that are primarily engaged in providing food
services, as described in Code 711110, 722511, 722513, 722514,
or 722515 of the North American Industry Classification System
(NAICS) published by the United States Office of Management
and Budget, 2012 edition.

(iv) Employers that are primarily engaged in services as
described in Code 713210, 721120, or 722410 of the North
American Industry Classification System (NAICS) published by
the United States Office of Management and Budget, 2012 edition.

(v) (I) An employer that is a sexually oriented business.

(II) For purposes of this clause:

(ia) “Sexually oriented business” means a nightclub, bar,
restaurant, or similar commercial enterprise that provides for an
audience of two or more individuals live nude entertainment or
live nude performances where the nudity is a function of everyday
business operations and where nudity is a planned and intentional
part of the entertainment or performance.

(ib) “Nude” means clothed in a manner that leaves uncovered
or visible, through less than fully opaque clothing, any portion of
the genitals or, in the case of a female, any portion of the breasts
below the top of the areola of the breasts.

(D) Subparagraph (C) shall not apply to a taxpayer that is a
“small business.”

(12) “Qualified wages” means those wages that meet all of the
following requirements:

(A) (i) Except as provided in clause (ii), that portion of wages
paid or incurred by the qualified taxpayer during the taxable year
to each qualified full-time employee that exceeds 150 percent of
minimum wage, but does not exceed 350 percent of minimum
wage.

(ii) (I) In the case of a qualified full-time employee employed
in a designated pilot area, that portion of wages paid or incurred
by the qualified taxpayer during the taxable year to each qualified
full-time employee that exceeds ten dollars ($10) per hour or an
equivalent amount for salaried employees, but does not exceed
350 percent of minimum wage. For qualified full-time employees
described in the preceding sentence, clause (ii) of subparagraph
(A) of paragraph (10) is modified by substituting “ten dollars ($10)
per hour or an equivalent amount for salaried employees” for “150
percent of the minimum wage.”

(II) For purposes of this clause:

(ia) “Designated pilot area” means an area designated as a
designated pilot area by the Governor’s Office of Business and
Economic Development.

(ib) Areas that may be designated as a designated pilot area are
limited to areas within a designated census tract or an economic
development area with average wages less than the statewide
average wages, based on information from the Labor Market
Division of the Employment Development Department, and areas
within a designated census tract or an economic development area
based on high poverty or high unemployment.

(ic) The total number of designated pilot areas that may be
designated is limited to five, one or more of which must be an area
within five or fewer designated census tracts within a single county
based on high poverty or high unemployment or an area within an
economic development area based on high poverty or high
unemployment.

(id) The designation of a designated pilot area shall be applicable
for a period of four calendar years, commencing with the first
calendar year for which the designation of a designated pilot area
is effective. The applicable period of a designated pilot area may
be extended, in the sole discretion of the Governor’s Office of
Business and Economic Development, for an additional period of
up to three calendar years. The applicable period, and any extended
period, shall not extend beyond December 31, 2020.

(III) The designation of an area as a designated pilot area and
the extension of the applicable period of a designated pilot area
shall be at the sole discretion of the Governor’s Office of Business
and Economic Development and shall not be subject to
administrative appeal or judicial review.

(B) Wages paid or incurred during the 60-month period
beginning with the first day the qualified full-time employee
commences employment with the qualified taxpayer. In the case
of any employee who is reemployed, including a regularly
occurring seasonal increase, in the trade or business operations of
the qualified taxpayer, this reemployment shall not be treated as
constituting commencement of employment for purposes of this
section.

(C) Except as provided in paragraph (3) of subdivision (n),
qualified wages shall not include any wages paid or incurred by
the qualified taxpayer on or after the date that the Department of
Finance’s redesignation of designated census tracts is effective,
as provided in paragraph (2) of subdivision (g), so that a census
tract is no longer a designated census tract.

(13) “Seasonal employment” means employment by a qualified
taxpayer that has regular and predictable substantial reductions in
trade or business operations.

(14) (A) “Small business” means a trade or business that has
aggregate gross receipts, less returns and allowances reportable to
this state, of less than two million dollars ($2,000,000) during the
previous taxable year.

(B) (i) For purposes of this paragraph, “gross receipts, less
returns and allowances reportable to this state,” means the sum of
the gross receipts from the production of business income, as
defined in subdivision (a) of Section 25120, and the gross receipts
from the production of nonbusiness income, as defined in
subdivision (d) of Section 25120.

(ii) In the case of any trade or business activity conducted by a
partnership or an “S” corporation, the limitations set forth in
subparagraph (A) shall be applied to the partnership or “S”
corporation and to each partner or shareholder.

(C) (i) “Small business” shall not include a sexually oriented
business.

(ii) For purposes of this subparagraph:

(I) “Sexually oriented business” means a nightclub, bar,
restaurant, or similar commercial enterprise that provides for an
audience of two or more individuals live nude entertainment or
live nude performances where the nudity is a function of everyday
business operations and where nudity is a planned and intentional
part of the entertainment or performance.

(II) “Nude” means clothed in a manner that leaves uncovered
or visible, through less than fully opaque clothing, any portion of
the genitals or, in the case of a female, any portion of the breasts
below the top of the areola of the breasts.

(15) An individual is “unemployed” for any period for which
the individual is all of the following:

(A) Not in receipt of wages subject to withholding under Section
13020 of the Unemployment Insurance Code for that period.

(B) Not a self-employed individual (within the meaning of
Section 401(c)(1)(B) of the Internal Revenue Code, relating to
self-employed individual) for that period.

(C) Not a registered full-time student at a high school, college,
university, or other postsecondary educational institution for that
period.

(c) The net increase in full-time employees of a qualified
taxpayer shall be determined as provided by this subdivision:

(1) (A) The net increase in full-time employees shall be
determined on an annual full-time equivalent basis by subtracting
from the amount determined in subparagraph (C) the amount
determined in subparagraph (B).

(B) The total number of full-time employees employed in the
base year by the taxpayer and by any trade or business acquired
by the taxpayer during the current taxable year.

(C) The total number of full-time employees employed in the
current taxable year by the taxpayer and by any trade or business
acquired during the current taxable year.

(2) For taxpayers who first commence doing business in this
state during the taxable year, the number of full-time employees
for the base year shall be zero.

(d) For purposes of this section:

(1) All employees of the trades or businesses that are treated as
related under Section 267, 318, or 707 of the Internal Revenue
Code shall be treated as employed by a single taxpayer.

(2) In determining whether the taxpayer has first commenced
doing business in this state during the taxable year, the provisions
of subdivision (f) of Section 17276, without application of
paragraph (7) of that subdivision, shall apply.

(e) (1) To be eligible for the credit allowed by this section, a
qualified taxpayer shall, upon hiring a qualified full-time employee,
request a tentative credit reservation from the Franchise Tax Board
within 30 days of complying with the Employment Development
Department’s new hire reporting requirements as provided in
Section 1088.5 of the Unemployment Insurance Code, in the form
and manner prescribed by the Franchise Tax Board.

(2) To obtain a tentative credit reservation with respect to a
qualified full-time employee, the qualified taxpayer shall provide
necessary information, as determined by the Franchise Tax Board,
including the name, social security number, the start date of
employment, the rate of pay of the qualified full-time employee,
the qualified taxpayer’s gross receipts, less returns and allowances,
for the previous taxable year, and whether the qualified full-time
employee is a resident of a targeted employment area, as defined
in former Section 7072 of the Government Code, as in effect on
December 31, 2013.

(3) The qualified taxpayer shall provide the Franchise Tax Board
an annual certification of employment with respect to each
qualified full-time employee hired in a previous taxable year, on
or before, the 15th day of the third month of the taxable year. The
certification shall include necessary information, as determined
by the Franchise Tax Board, including the name, social security
number, start date of employment, and rate of pay for each qualified
full-time employee employed by the qualified taxpayer.

(4) A tentative credit reservation provided to a taxpayer with
respect to an employee of that taxpayer shall not constitute a
determination by the Franchise Tax Board with respect to any of
the requirements of this section regarding a taxpayer’s eligibility
for the credit authorized by this section.

(f) The Franchise Tax Board shall do all of the following:

(1) Approve a tentative credit reservation with respect to a
qualified full-time employee hired during a calendar year.

(2) Determine the aggregate tentative reservation amount and
the aggregate small business tentative reservation amount for a
calendar year.

(3) A tentative credit reservation request from a qualified
taxpayer with respect to a qualified full-time employee who is a
resident of a targeted employment area, as defined in former
Section 7072 of the Government Code, as in effect on December
31, 2013, shall be expeditiously processed by the Franchise Tax
Board. The residence of a qualified full-time employee in a targeted
employment area shall have no other effect on the eligibility of an
individual as a qualified full-time employee or the eligibility of a
qualified taxpayer for the credit authorized by this section.

(4) Notwithstanding Section 19542, provide as a searchable
database on its Internet Web site, for each taxable year beginning
on or after January 1, 2014, and before January 1, 2021, the
employer names, amounts of tax credit claimed, and number of
new jobs created for each taxable year pursuant to this section and
Section 23626.

(g) (1) The Department of Finance shall, by January 1, 2014,
and by January 1 of every fifth year thereafter, provide the
Franchise Tax Board with a list of the designated census tracts and
a list of census tracts with the lowest civilian unemployment rate.

(2) The redesignation of designated census tracts and lowest
civilian unemployment census tracts by the Department of Finance
as provided in Section 13073.5 of the Government Code shall be
effective, for purposes of this credit, one year after the date the
Department of Finance redesignates the designated census tracts.

(h) For purposes of this section:

(1) All employees of the trades or businesses that are treated as
related under Section 267, 318, or 707 of the Internal Revenue
Code shall be treated as employed by a single taxpayer.

(2) All employees of trades or businesses that are not
incorporated, and that are under common control, shall be treated
as employed by a single taxpayer.

(3) The credit, if any, allowable by this section with respect to
each trade or business shall be determined by reference to its
proportionate share of the expense of the qualified wages giving
rise to the credit, and shall be allocated to that trade or business in
that manner.

(4) Principles that apply in the case of controlled groups of
corporations, as specified in subdivision (h) of Section 23626,
shall apply with respect to determining employment.

(5) If an employer acquires the major portion of a trade or
business of another employer, hereinafter in this paragraph referred
to as the predecessor, or the major portion of a separate unit of a
trade or business of a predecessor, then, for purposes of applying
this section, other than subdivision (i), for any taxable year ending
after that acquisition, the employment relationship between a
qualified full-time employee and an employer shall not be treated
as terminated if the employee continues to be employed in that
trade or business.

(i) (1) If the employment of any qualified full-time employee,
with respect to whom qualified wages are taken into account under
subdivision (a), is terminated by the qualified taxpayer at any time
during the first 36 months after commencing employment with
the qualified taxpayer, whether or not consecutive, the tax imposed
by this part for the taxable year in which that employment is
terminated shall be increased by an amount equal to the credit
allowed under subdivision (a) for that taxable year and all prior
taxable years attributable to qualified wages paid or incurred with
respect to that employee.

(2) Paragraph (1) does not apply to any of the following:

(A) A termination of employment of a qualified full-time
employee who voluntarily leaves the employment of the qualified
taxpayer.

(B) A termination of employment of a qualified full-time
employee who, before the close of the period referred to in
paragraph (1), becomes disabled and unable to perform the services
of that employment, unless that disability is removed before the
close of that period and the qualified taxpayer fails to offer
reemployment to that employee.

(C) A termination of employment of a qualified full-time
employee, if it is determined that the termination was due to the
misconduct, as defined in Sections 1256-30 to 1256-43, inclusive,
of Title 22 of the California Code of Regulations, of that employee.

(D) A termination of employment of a qualified full-time
employee due to a substantial reduction in the trade or business
operations of the qualified taxpayer, including reductions due to
seasonal employment.

(E) A termination of employment of a qualified full-time
employee, if that employee is replaced by other qualified full-time
employees so as to create a net increase in both the number of
employees and the hours of employment.

(F) A termination of employment of a qualified full-time
employee, when that employment is considered seasonal
employment and the qualified employee is rehired on a seasonal
basis.

(3) For purposes of paragraph (1), the employment relationship
between the qualified taxpayer and a qualified full-time employee
shall not be treated as terminated by reason of a mere change in
the form of conducting the trade or business of the qualified
taxpayer, if the qualified full-time employee continues to be
employed in that trade or business and the qualified taxpayer retains
a substantial interest in that trade or business.

(4) An increase in tax under paragraph (1) shall not be treated
as tax imposed by this part for purposes of determining the amount
of any credit allowable under this part.

(j) In the case of an estate or trust, both of the following apply:

(1) The qualified wages for a taxable year shall be apportioned
between the estate or trust and the beneficiaries on the basis of the
income of the estate or trust allocable to each.

(2) A beneficiary to whom any qualified wages have been
apportioned under paragraph (1) shall be treated, for purposes of
this part, as the employer with respect to those wages.

(k) In the case in which the credit allowed by this section
exceeds the “net tax,” the excess may be carried over to reduce
the “net tax” in the following year, and the succeeding four years
if necessary, until the credit is exhausted.

(l) The Franchise Tax Board may prescribe rules, guidelines,
or procedures necessary or appropriate to carry out the purposes
of this section, including any guidelines regarding the allocation
of the credit allowed under this section. Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code shall not apply to any rule, guideline, or
procedure prescribed by the Franchise Tax Board pursuant to this
section.

(m) (1) Upon the effective date of this section, the Department
of Finance shall estimate the total dollar amount of credits that
will be claimed under this section with respect to each fiscal year
from the 2013-14 fiscal year to the 2020-21 fiscal year, inclusive.

(2) The Franchise Tax Board shall annually provide to the Joint
Legislative Budget Committee, by no later than March 1, a report
of the total dollar amount of the credits claimed under this section
with respect to the relevant fiscal year. The report shall compare
the total dollar amount of credits claimed under this section with
respect to that fiscal year with the department’s estimate with
respect to that same fiscal year. If the total dollar amount of credits
claimed for the fiscal year is less than the estimate for that fiscal
year, the report shall identify options for increasing annual claims
of the credit so as to meet estimated amounts.

(n) (1) This section shall remain in effect only until December
1, 2024, and as of that date is repealed.

(2) Notwithstanding paragraph (1) of subdivision (a), this section
shall continue to be operative for taxable years beginning on or
after January 1, 2021, but only with respect to qualified full-time
employees who commenced employment with a qualified taxpayer
in a designated census tract or economic development area in a
taxable year beginning before January 1, 2021.

(3) This section shall remain operative for any qualified taxpayer
with respect to any qualified full-time employee after the
designated census tract is no longer designated or an economic
development area ceases to be an economic development area, as
defined in this section, for the remaining period, if any, of the
60-month period after the original date of hiring of an otherwise
qualified full-time employee and any wages paid or incurred with
respect to those qualified full-time employees after the designated
census tract is no longer designated or an economic development
area ceases to be an economic development area, as defined in this
section, shall be treated as qualified wages under this section,
provided the employee satisfies any other requirements of
paragraphs (10) and (12) of subdivision (b), as if the designated
census tract was still designated and binding or the economic
development area was still in existence.

begin delete SEC. 457. end delete
begin insert SEC. 464. end insert   

Section 17053.74 of the Revenue and Taxation Code
is amended to read:

17053.74.  

(a) There shall be allowed a credit against the “net
tax” (as defined in Section 17039) to a taxpayer who employs a
qualified employee in an enterprise zone during the taxable year.
The credit shall be equal to the sum of each of the following:

(1) Fifty percent of qualified wages in the first year of
employment.

(2) Forty percent of qualified wages in the second year of
employment.

(3) Thirty percent of qualified wages in the third year of
employment.

(4) Twenty percent of qualified wages in the fourth year of
employment.

(5) Ten percent of qualified wages in the fifth year of
employment.

(b) For purposes of this section:

(1) “Qualified wages” means:

(A) (i) Except as provided in clause (ii), that portion of wages
paid or incurred by the taxpayer during the taxable year to qualified
employees that does not exceed 150 percent of the minimum wage.

(ii) For up to 1,350 qualified employees who are employed by
the taxpayer in the Long Beach Enterprise Zone in aircraft
manufacturing activities described in Codes 3721 to 3728,
inclusive, and Code 3812 of the Standard Industrial Classification
(SIC) Manual published by the United States Office of
Management and Budget, 1987 edition, “qualified wages” means
that portion of hourly wages that does not exceed 202 percent of
the minimum wage.

(B) Wages received during the 60-month period beginning with
the first day the employee commences employment with the
taxpayer. Reemployment in connection with any increase, including
a regularly occurring seasonal increase, in the trade or business
operations of the taxpayer does not constitute commencement of
employment for purposes of this section.

(C) Qualified wages do not include any wages paid or incurred
by the taxpayer on or after the zone expiration date. However,
wages paid or incurred with respect to qualified employees who
are employed by the taxpayer within the enterprise zone within
the 60-month period prior to the zone expiration date shall continue
to qualify for the credit under this section after the zone expiration
date, in accordance with all provisions of this section applied as
if the enterprise zone designation were still in existence and
binding.

(2) “Minimum wage” means the wage established by the
Industrial Welfare Commission as provided for in Chapter 1
(commencing with Section 1171) of Part 4 of Division 2 of the
Labor Code.

(3) “Zone expiration date” means the date the enterprise zone
designation expires, is no longer binding, becomes inoperative, or
is repealed.

(4) (A) “Qualified employee” means an individual who meets
all of the following requirements:

(i) At least 90 percent of whose services for the taxpayer during
the taxable year are directly related to the conduct of the taxpayer’s
trade or business located in an enterprise zone.

(ii) Performs at least 50 percent of his or her services for the
taxpayer during the taxable year in an enterprise zone.

(iii) Is hired by the taxpayer after the date of original designation
of the area in which services were performed as an enterprise zone.

(iv) Is any of the following:

(I) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was a person
eligible for services under the federal Job Training Partnership
Act (29 U.S.C. Sec. 1501 et seq.), or its successor, who is receiving,
or is eligible to receive, subsidized employment, training, or
services funded by the federal Job Training Partnership Act, or its
successor.

(II) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was a person
eligible to be a voluntary or mandatory registrant under the Greater
Avenues for Independence Act of 1985 (GAIN) provided for
pursuant to Article 3.2 (commencing with Section 11320) of
Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions
Code, or its successor.

(III) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was an
economically disadvantaged individual 14 years of age or older.

(IV) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was a dislocated
worker who meets any of the following:

(ia) Has been terminated or laid off or who has received a notice
of termination or layoff from employment, is eligible for or has
exhausted entitlement to unemployment insurance benefits, and
is unlikely to return to his or her previous industry or occupation.

(ib) Has been terminated or has received a notice of termination
of employment as a result of any permanent closure or any
substantial layoff at a plant, facility, or enterprise, including an
individual who has not received written notification but whose
employer has made a public announcement of the closure or layoff.

(ic) Is long-term unemployed and has limited opportunities for
employment or reemployment in the same or a similar occupation
in the area in which the individual resides, including an individual
55 years of age or older who may have substantial barriers to
employment by reason of age.

(id) Was self-employed (including farmers and ranchers) and
is unemployed as a result of general economic conditions in the
community in which he or she resides or because of natural
disasters.

(ie) Was a civilian employee of the Department of Defense
employed at a military installation being closed or realigned under
the Defense Base Closure and Realignment Act of 1990.

(if) Was an active member of the armed forces or National
Guard as of September 30, 1990, and was either involuntarily
separated or separated pursuant to a special benefits program.

(ig) Is a seasonal or migrant worker who experiences chronic
seasonal unemployment and underemployment in the agriculture
industry, aggravated by continual advancements in technology and
mechanization.

(ih) Has been terminated or laid off, or has received a notice of
termination or layoff, as a consequence of compliance with the
Clean Air Act.

(V) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was a disabled
individual who is eligible for or enrolled in, or has completed a
state rehabilitation plan or is a service-connected disabled veteran,
veteran of the Vietnam era, or veteran who is recently separated
from military service.

(VI) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was an
ex-offender. An individual shall be treated as convicted if he or
she was placed on probation by a state court without a finding of
guilt.

(VII) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was a person
eligible for or a recipient of any of the following:

(ia) Federal Supplemental Security Income benefits.

(ib) Aid to Families with Dependent Children.

(ic) CalFresh benefits.

(id) State and local general assistance.

(VIII) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was a member
of a federally recognized Indian tribe, band, or other group of
Native American descent.

(IX) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was a resident
of a targeted employment area, as defined in Section 7072 of the
Government Code.

(X) An employee who qualified the taxpayer for the enterprise
zone hiring credit under former Section 17053.8 or the program
area hiring credit under former Section 17053.11.

(XI) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was a member
of a targeted group, as defined in Section 51(d) of the Internal
Revenue Code, or its successor.

(B) Priority for employment shall be provided to an individual
who is enrolled in a qualified program under the federal Job
Training Partnership Act or the Greater Avenues for Independence
Act of 1985 or who is eligible as a member of a targeted group
under the Work Opportunity Tax Credit (Section 51 of the Internal
Revenue Code), or its successor.

(5) “Taxpayer” means a person or entity engaged in a trade or
business within an enterprise zone designated pursuant to Chapter
12.8 (commencing with Section 7070) of the Government Code.

(6) “Seasonal employment” means employment by a taxpayer
that has regular and predictable substantial reductions in trade or
business operations.

(c) The taxpayer shall do both of the following:

(1) Obtain from the Employment Development Department, as
permitted by federal law, the local county or city Job Training
Partnership Act administrative entity, the local county GAIN office
or social services agency, or the local government administering
the enterprise zone, a certification which provides that a qualified
employee meets the eligibility requirements specified in clause
(iv) of subparagraph (A) of paragraph (4) of subdivision (b). The
Employment Development Department may provide preliminary
screening and referral to a certifying agency. The Employment
Development Department shall develop a form for this purpose.
The Department of Housing and Community Development shall
develop regulations governing the issuance of certificates by local
governments pursuant to subdivision (a) of Section 7086 of the
Government Code.

(2) Retain a copy of the certification and provide it upon request
to the Franchise Tax Board.

(d) (1) For purposes of this section:

(A) All employees of trades or businesses, which are not
incorporated, that are under common control shall be treated as
employed by a single taxpayer.

(B) The credit, if any, allowable by this section with respect to
each trade or business shall be determined by reference to its
proportionate share of the expense of the qualified wages giving
rise to the credit, and shall be allocated in that manner.

(C) Principles that apply in the case of controlled groups of
corporations, as specified in paragraph (1) of subdivision (d) of
Section 23622.7, apply with respect to determining employment.

(2) If an employer acquires the major portion of a trade or
business of another employer (hereinafter in this paragraph referred
to as the “predecessor”) or the major portion of a separate unit of
a trade or business of a predecessor, then, for purposes of applying
this section (other than subdivision (e)) for any calendar year
ending after that acquisition, the employment relationship between
a qualified employee and an employer shall not be treated as
terminated if the employee continues to be employed in that trade
or business.

(e) (1) (A) If the employment, other than seasonal employment,
of any qualified employee, with respect to whom qualified wages
are taken into account under subdivision (a), is terminated by the
taxpayer at any time during the first 270 days of that employment
(whether or not consecutive) or before the close of the 270th
calendar day after the day in which that employee completes 90
days of employment with the taxpayer, the tax imposed by this
part for the taxable year in which that employment is terminated
shall be increased by an amount equal to the credit allowed under
subdivision (a) for that taxable year and all prior taxable years
attributable to qualified wages paid or incurred with respect to that
employee.

(B) If the seasonal employment of any qualified employee, with
respect to whom qualified wages are taken into account under
subdivision (a), is not continued by the taxpayer for a period of
270 days of employment during the 60-month period beginning
with the day the qualified employee commences seasonal
employment with the taxpayer, the tax imposed by this part, for
the taxable year that includes the 60th month following the month
in which the qualified employee commences seasonal employment
with the taxpayer, shall be increased by an amount equal to the
credit allowed under subdivision (a) for that taxable year and all
prior taxable years attributable to qualified wages paid or incurred
with respect to that qualified employee.

(2) (A) Subparagraph (A) of paragraph (1) does not apply to
any of the following:

(i) A termination of employment of a qualified employee who
voluntarily leaves the employment of the taxpayer.

(ii) A termination of employment of a qualified employee who,
before the close of the period referred to in paragraph (1), becomes
disabled and unable to perform the services of that employment,
unless that disability is removed before the close of that period
and the taxpayer fails to offer reemployment to that employee.

(iii) A termination of employment of a qualified employee, if
it is determined that the termination was due to the misconduct (as
defined in Sections 1256-30 to 1256-43, inclusive, of Title 22 of
the California Code of Regulations) of that employee.

(iv) A termination of employment of a qualified employee due
to a substantial reduction in the trade or business operations of the
taxpayer.

(v) A termination of employment of a qualified employee, if
that employee is replaced by other qualified employees so as to
create a net increase in both the number of employees and the
hours of employment.

(B) Subparagraph (B) of paragraph (1) does not apply to any
of the following:

(i) A failure to continue the seasonal employment of a qualified
employee who voluntarily fails to return to the seasonal
employment of the taxpayer.

(ii) A failure to continue the seasonal employment of a qualified
employee who, before the close of the period referred to in
subparagraph (B) of paragraph (1), becomes disabled and unable
to perform the services of that seasonal employment, unless that
disability is removed before the close of that period and the
taxpayer fails to offer seasonal employment to that qualified
employee.

(iii) A failure to continue the seasonal employment of a qualified
employee, if it is determined that the failure to continue the
seasonal employment was due to the misconduct (as defined in
Sections 1256-30 to 1256-43, inclusive, of Title 22 of the California
Code of Regulations) of that qualified employee.

(iv) A failure to continue seasonal employment of a qualified
employee due to a substantial reduction in the regular seasonal
trade or business operations of the taxpayer.

(v) A failure to continue the seasonal employment of a qualified
employee, if that qualified employee is replaced by other qualified
employees so as to create a net increase in both the number of
seasonal employees and the hours of seasonal employment.

(C) For purposes of paragraph (1), the employment relationship
between the taxpayer and a qualified employee shall not be treated
as terminated by reason of a mere change in the form of conducting
the trade or business of the taxpayer, if the qualified employee
continues to be employed in that trade or business and the taxpayer
retains a substantial interest in that trade or business.

(3) An increase in tax under paragraph (1) shall not be treated
as tax imposed by this part for purposes of determining the amount
of any credit allowable under this part.

(f) In the case of an estate or trust, both of the following apply:

(1) The qualified wages for any taxable year shall be apportioned
between the estate or trust and the beneficiaries on the basis of the
income of the estate or trust allocable to each.

(2) A beneficiary to whom any qualified wages have been
apportioned under paragraph (1) shall be treated, for purposes of
this part, as the employer with respect to those wages.

(g) For purposes of this section, “enterprise zone” means an
area designated as an enterprise zone pursuant to Chapter 12.8
(commencing with Section 7070) of Division 7 of Title 1 of the
Government Code.

(h) The credit allowable under this section shall be reduced by
the credit allowed under Sections 17053.10, 17053.17, and
17053.46 claimed for the same employee. The credit shall also be
reduced by the federal credit allowed under Section 51 of the
Internal Revenue Code.

In addition, any deduction otherwise allowed under this part for
the wages or salaries paid or incurred by the taxpayer upon which
the credit is based shall be reduced by the amount of the credit,
prior to any reduction required by subdivision (i) or (j).

(i) In the case where the credit otherwise allowed under this
section exceeds the “net tax” for the taxable year, that portion of
the credit that exceeds the “net tax” may be carried over and added
to the credit, if any, in the succeeding 10 taxable years, if necessary,
until the credit is exhausted. The credit shall be applied first to the
earliest taxable years possible.

(j) (1) The amount of the credit otherwise allowed under this
section and Section 17053.70, including any credit carryover from
prior years, that may reduce the “net tax” for the taxable year shall
not exceed the amount of tax which would be imposed on the
taxpayer’s business income attributable to the enterprise zone
determined as if that attributable income represented all of the
income of the taxpayer subject to tax under this part.

(2) Attributable income shall be that portion of the taxpayer’s
California source business income that is apportioned to the
enterprise zone. For that purpose, the taxpayer’s business income
attributable to sources in this state first shall be determined in
accordance with Chapter 17 (commencing with Section 25101) of
Part 11. That business income shall be further apportioned to the
enterprise zone in accordance with Article 2 (commencing with
Section 25120) of Chapter 17 of Part 11, modified for purposes
of this section in accordance with paragraph (3).

(3) Business income shall be apportioned to the enterprise zone
by multiplying the total California business income of the taxpayer
by a fraction, the numerator of which is the property factor plus
the payroll factor, and the denominator of which is two. For
purposes of this paragraph:

(A) The property factor is a fraction, the numerator of which is
the average value of the taxpayer’s real and tangible personal
property owned or rented and used in the enterprise zone during
the taxable year, and the denominator of which is the average value
of all the taxpayer’s real and tangible personal property owned or
rented and used in this state during the taxable year.

(B) The payroll factor is a fraction, the numerator of which is
the total amount paid by the taxpayer in the enterprise zone during
the taxable year for compensation, and the denominator of which
is the total compensation paid by the taxpayer in this state during
the taxable year.

(4) The portion of any credit remaining, if any, after application
of this subdivision, shall be carried over to succeeding taxable
years, if necessary, until the credit is exhausted, as if it were an
amount exceeding the “net tax” for the taxable year, as provided
in subdivision (i). However, the portion of any credit remaining
for carryover to taxable years beginning on or after January 1,
2014, if any, after application of this subdivision, shall be carried
over only to the succeeding 10 taxable years if necessary, until the
credit is exhausted, as if it were an amount exceeding the “net tax”
for the taxable year, as provided in subdivision (i).

(k) The changes made to this section by the act adding this
subdivision apply to taxable years beginning on or after January
1, 1997.

(l) (1) Except as provided in paragraph (2), this section shall
cease to be operative on January 1, 2014, and shall be repealed on
December 1, 2019. A credit shall not be allowed under this section
with respect to an employee who first commences employment
with a taxpayer on or after January 1, 2014.

(2) This section shall continue to apply with respect to qualified
employees who are employed by the taxpayer within the enterprise
zone within the 60-month period immediately preceding January
1, 2014, and qualified wages paid or incurred with respect to those
qualified employees shall continue to qualify for the credit under
this section for taxable years beginning on or after January 1, 2014,
in accordance with this section, as amended by the act adding this
subdivision.

begin delete SEC. 458. end delete
begin insert SEC. 465. end insert   

Section 17058 of the Revenue and Taxation Code
is amended to read:

17058.  

(a) (1) There shall be allowed as a credit against the
“net tax” (as defined in Section 17039) a state low-income housing
credit in an amount equal to the amount determined in subdivision
(c), computed in accordance with the provisions of Section 42 of
the Internal Revenue Code, except as otherwise provided in this
section.

(2) “Taxpayer” for purposes of this section means the sole owner
in the case of an individual, the partners in the case of a partnership,
and the shareholders in the case of an “S” corporation.

(3) “Housing sponsor” for purposes of this section means the
sole owner in the case of an individual, the partnership in the case
of a partnership, and the “S” corporation in the case of an “S”
corporation.

(b) (1) The amount of the credit allocated to any housing
sponsor shall be authorized by the California Tax Credit Allocation
Committee, or any successor thereof, based on a project’s need
for the credit for economic feasibility in accordance with the
requirements of this section.

(A) The low-income housing project shall be located in
California and shall meet either of the following requirements:

(i) Except for projects to provide farmworker housing, as defined
in subdivision (h) of Section 50199.7 of the Health and Safety
Code, that are allocated credits solely under the set-aside described
in subdivision (c) of Section 50199.20 of the Health and Safety
Code, the project’s housing sponsor has been allocated by the
California Tax Credit Allocation Committee a credit for federal
income tax purposes under Section 42 of the Internal Revenue
Code.

(ii) It qualifies for a credit under Section 42(h)(4)(B) of the
Internal Revenue Code.

(B) The California Tax Credit Allocation Committee shall not
require fees for the credit under this section in addition to those
fees required for applications for the tax credit pursuant to Section
42 of the Internal Revenue Code. The committee may require a
fee if the application for the credit under this section is submitted
in a calendar year after the year the application is submitted for
the federal tax credit.

(C) (i) For a project that receives a preliminary reservation of
the state low-income housing tax credit, allowed pursuant to
subdivision (a), on or after January 1, 2009, and before January 1,
2016, the credit shall be allocated to the partners of a partnership
owning the project in accordance with the partnership agreement,
regardless of how the federal low-income housing tax credit with
respect to the project is allocated to the partners, or whether the
allocation of the credit under the terms of the agreement has
substantial economic effect, within the meaning of Section 704(b)
of the Internal Revenue Code.

(ii) To the extent the allocation of the credit to a partner under
this section lacks substantial economic effect, any loss or deduction
otherwise allowable under this part that is attributable to the sale
or other disposition of that partner’s partnership interest made prior
to the expiration of the federal credit shall not be allowed in the
taxable year in which the sale or other disposition occurs, but shall
instead be deferred until and treated as if it occurred in the first
taxable year immediately following the taxable year in which the
federal credit period expires for the project described in clause (i).

(iii) This subparagraph does not apply to a project that receives
a preliminary reservation of state low-income housing tax credits
under the set-aside described in subdivision (c) of Section 50199.20
of the Health and Safety Code unless the project also receives a
preliminary reservation of federal low-income housing tax credits.

(iv) This subparagraph shall cease to be operative with respect
to any project that receives a preliminary reservation of a credit
on or after January 1, 2016.

(2) (A) The California Tax Credit Allocation Committee shall
certify to the housing sponsor the amount of tax credit under this
section allocated to the housing sponsor for each credit period.

(B) In the case of a partnership or an “S” corporation, the
housing sponsor shall provide a copy of the California Tax Credit
Allocation Committee certification to the taxpayer.

(C) The taxpayer shall, upon request, provide a copy of the
certification to the Franchise Tax Board.

(D) All elections made by the taxpayer pursuant to Section 42
of the Internal Revenue Code apply to this section.

(E) (i) Except as described in clause (ii), for buildings located
in designated difficult development areas (DDAs) or qualified
census tracts (QCTs), as defined in Section 42(d)(5)(B) of the
Internal Revenue Code, credits may be allocated under this section
in the amounts prescribed in subdivision (c), provided that the
amount of credit allocated under Section 42 of the Internal Revenue
Code is computed on 100 percent of the qualified basis of the
building.

(ii) Notwithstanding clause (i), the California Tax Credit
Allocation Committee may allocate the credit for buildings located
in DDAs or QCTs that are restricted to having 50 percent of its
occupants be special needs households, as defined in the California
Code of Regulations by the California Tax Credit Allocation
Committee, even if the taxpayer receives federal credits pursuant
to Section 42(d)(5)(B) of the Internal Revenue Code, provided
that the credit allowed under this section shall not exceed 30
percent of the eligible basis of the building.

(F) (i) The California Tax Credit Allocation Committee may
allocate a credit under this section in exchange for a credit allocated
pursuant to Section 42(d)(5)(B) of the Internal Revenue Code in
amounts up to 30 percent of the eligible basis of a building if the
credits allowed under Section 42 of the Internal Revenue Code are
reduced by an equivalent amount.

(ii) An equivalent amount shall be determined by the California
Tax Credit Allocation Committee based upon the relative amount
required to produce an equivalent state tax credit to the taxpayer.

(c) Section 42(b) of the Internal Revenue Code shall be modified
as follows:

(1) In the case of any qualified low-income building placed in
service by the housing sponsor during 1987, the term “applicable
percentage” means 9 percent for each of the first three years and
3 percent for the fourth year for new buildings (whether or not the
building is federally subsidized) and for existing buildings.

(2) In the case of any qualified low-income building that receives
an allocation after 1989 and is a new building not federally
subsidized, the term “applicable percentage” means the following:

(A) For each of the first three years, the percentage prescribed
by the Secretary of the Treasury for new buildings that are not
federally subsidized for the taxable year, determined in accordance
with the requirements of Section 42(b)(2) of the Internal Revenue
Code, in lieu of the percentage prescribed in Section 42(b)(1)(B)
of the Internal Revenue Code.

(B) For the fourth year, the difference between 30 percent and
the sum of the applicable percentages for the first three years.

(3) In the case of any qualified low-income building that receives
an allocation after 1989 and that is a new building that is federally
subsidized or that is an existing building that is “at risk of
conversion,” the term “applicable percentage” means the following:

(A) For each of the first three years, the percentage prescribed
by the Secretary of the Treasury for new buildings that are federally
subsidized for the taxable year.

(B) For the fourth year, the difference between 13 percent and
the sum of the applicable percentages for the first three years.

(4) For purposes of this section, the term “at risk of conversion,”
with respect to an existing property means a property that satisfies
all of the following criteria:

(A) The property is a multifamily rental housing development
in which at least 50 percent of the units receive governmental
assistance pursuant to any of the following:

(i) New construction, substantial rehabilitation, moderate
rehabilitation, property disposition, and loan management set-aside
programs, or any other program providing project-based assistance
pursuant to Section 8 of the United States Housing Act of 1937,
Section 1437f of Title 42 of the United States Code, as amended.

(ii) The Below-Market-Interest-Rate Program pursuant to
Section 221(d)(3) of the National Housing Act, Sections
1715l(d)(3) and (5) of Title 12 of the United States Code.

(iii) Section 236 of the National Housing Act, Section 1715z-1
of Title 12 of the United States Code.

(iv) Programs for rent supplement assistance pursuant to Section
101 of the Housing and Urban Development Act of 1965, Section
1701s of Title 12 of the United States Code, as amended.

(v) Programs pursuant to Section 515 of the Housing Act of
1949, Section 1485 of Title 42 of the United States Code, as
amended.

(vi) The low-income housing credit program set forth in Section
42 of the Internal Revenue Code.

(B) The restrictions on rent and income levels will terminate or
the federal insured mortgage on the property is eligible for
prepayment any time within five years before or after the date of
application to the California Tax Credit Allocation Committee.

(C) The entity acquiring the property enters into a regulatory
agreement that requires the property to be operated in accordance
with the requirements of this section for a period equal to the
greater of 55 years or the life of the property.

(D) The property satisfies the requirements of Section 42(e) of
the Internal Revenue Code regarding rehabilitation expenditures,
except that the provisions of Section 42(e)(3)(A)(ii)(I) do not apply.

(d) The term “qualified low-income housing project” as defined
in Section 42(c)(2) of the Internal Revenue Code is modified by
adding the following requirements:

(1) The taxpayer shall be entitled to receive a cash distribution
from the operations of the project, after funding required reserves,
that, at the election of the taxpayer, is equal to:

(A) An amount not to exceed 8 percent of the lesser of:

(i) The owner equity that shall include the amount of the capital
contributions actually paid to the housing sponsor and shall not
include any amounts until they are paid on an investor note.

(ii) Twenty percent of the adjusted basis of the building as of
the close of the first taxable year of the credit period.

(B) The amount of the cashflow from those units in the building
that are not low-income units. For purposes of computing cashflow
under this subparagraph, operating costs shall be allocated to the
low-income units using the “floor space fraction,” as defined in
Section 42 of the Internal Revenue Code.

(C) Any amount allowed to be distributed under subparagraph
(A) that is not available for distribution during the first five years
of the compliance period may be accumulated and distributed any
time during the first 15 years of the compliance period but not
thereafter.

(2) The limitation on return applies in the aggregate to the
partners if the housing sponsor is a partnership and in the aggregate
to the shareholders if the housing sponsor is an “S” corporation.

(3) The housing sponsor shall apply any cash available for
distribution in excess of the amount eligible to be distributed under
paragraph (1) to reduce the rent on rent-restricted units or to
increase the number of rent-restricted units subject to the tests of
Section 42(g)(1) of the Internal Revenue Code.

(e) The provisions of Section 42(f) of the Internal Revenue Code
shall be modified as follows:

(1) The term “credit period” as defined in Section 42(f)(1) of
the Internal Revenue Code is modified by substituting “four taxable
years” for “10 taxable years.”

(2) The special rule for the first taxable year of the credit period
under Section 42(f)(2) of the Internal Revenue Code does not apply
to the tax credit under this section.

(3) Section 42(f)(3) of the Internal Revenue Code is modified
to read:

If, as of the close of any taxable year in the compliance period,
after the first year of the credit period, the qualified basis of any
building exceeds the qualified basis of that building as of the close
of the first year of the credit period, the housing sponsor, to the
extent of its tax credit allocation, shall be eligible for a credit on
the excess in an amount equal to the applicable percentage
determined pursuant to subdivision (c) for the four-year period
beginning with the taxable year in which the increase in qualified
basis occurs.

(f) The provisions of Section 42(h) of the Internal Revenue
Code shall be modified as follows:

(1) Section 42(h)(2) of the Internal Revenue Code does not
apply and instead the following provisions apply:

The total amount for the four-year period of the housing credit
dollars allocated in a calendar year to any building shall reduce
the aggregate housing credit dollar amount of the California Tax
Credit Allocation Committee for the calendar year in which the
allocation is made.

(2) Paragraphs (3), (4), (5), (6)(E)(i)(II), (6)(F), (6)(G), (6)(I),
(7), and (8) of Section 42(h) of the Internal Revenue Code do not
apply to this section.

(g) The aggregate housing credit dollar amount that may be
allocated annually by the California Tax Credit Allocation
Committee pursuant to this section, Section 12206, and Section
23610.5 shall be an amount equal to the sum of all the following:

(1) Seventy million dollars ($70,000,000) for the 2001 calendar
year, and, for the 2002 calendar year and each calendar year
thereafter, seventy million dollars ($70,000,000) increased by the
percentage, if any, by which the Consumer Price Index for the
preceding calendar year exceeds the Consumer Price Index for the
2001 calendar year. For the purposes of this paragraph, the term
“Consumer Price Index” means the last Consumer Price Index for
All Urban Consumers published by the federal Department of
Labor.

(2) The unused housing credit ceiling, if any, for the preceding
calendar years.

(3) The amount of housing credit ceiling returned in the calendar
year. For purposes of this paragraph, the amount of housing credit
dollar amount returned in the calendar year equals the housing
credit dollar amount previously allocated to any project that does
not become a qualified low-income housing project within the
period required by this section or to any project with respect to
which an allocation is canceled by mutual consent of the California
Tax Credit Allocation Committee and the allocation recipient.

(4) Five hundred thousand dollars ($500,000) per calendar year
for projects to provide farmworker housing, as defined in
subdivision (h) of Section 50199.7 of the Health and Safety Code.

(5) The amount of any unallocated or returned credits under
former Sections 17053.14, 23608.2, and 23608.3, as those sections
read prior to January 1, 2009, until fully exhausted for projects to
provide farmworker housing, as defined in subdivision (h) of
Section 50199.7 of the Health and Safety Code.

(h) The term “compliance period” as defined in Section 42(i)(1)
of the Internal Revenue Code is modified to mean, with respect to
any building, the period of 30 consecutive taxable years beginning
with the first taxable year of the credit period with respect thereto.

(i) Section 42(j) of the Internal Revenue Code does not apply
and the following requirements of this section shall be set forth in
a regulatory agreement between the California Tax Credit
Allocation Committee and the housing sponsor, which agreement
shall be subordinated, when required, to any lien or encumbrance
of any banks or other institutional lenders to the project. The
regulatory agreement entered into pursuant to subdivision (f) of
Section 50199.14 of the Health and Safety Code shall apply,
provided that the agreement includes all of the following
provisions:

(1) A term not less than the compliance period.

(2) A requirement that the agreement be recorded in the official
records of the county in which the qualified low-income housing
project is located.

(3) A provision stating which state and local agencies can
enforce the regulatory agreement in the event the housing sponsor
fails to satisfy any of the requirements of this section.

(4) A provision that the regulatory agreement shall be deemed
a contract enforceable by tenants as third-party beneficiaries thereto
and that allows individuals, whether prospective, present, or former
occupants of the building, who meet the income limitation
applicable to the building, the right to enforce the regulatory
agreement in any state court.

(5) A provision incorporating the requirements of Section 42
of the Internal Revenue Code as modified by this section.

(6) A requirement that the housing sponsor notify the California
Tax Credit Allocation Committee or its designee if there is a
determination by the Internal Revenue Service that the project is
not in compliance with Section 42(g) of the Internal Revenue Code.

(7) A requirement that the housing sponsor, as security for the
performance of the housing sponsor’s obligations under the
regulatory agreement, assign the housing sponsor’s interest in rents
that it receives from the project, provided that until there is a
default under the regulatory agreement, the housing sponsor is
entitled to collect and retain the rents.

(8) The remedies available in the event of a default under the
regulatory agreement that is not cured within a reasonable cure
period, include, but are not limited to, allowing any of the parties
designated to enforce the regulatory agreement to collect all rents
with respect to the project; taking possession of the project and
operating the project in accordance with the regulatory agreement
until the enforcer determines the housing sponsor is in a position
to operate the project in accordance with the regulatory agreement;
applying to any court for specific performance; securing the
appointment of a receiver to operate the project; or any other relief
as may be appropriate.

(j) (1) The committee shall allocate the housing credit on a
regular basis consisting of two or more periods in each calendar
year during which applications may be filed and considered. The
committee shall establish application filing deadlines, the maximum
percentage of federal and state low-income housing tax credit
ceiling that may be allocated by the committee in that period, and
the approximate date on which allocations shall be made. If the
enactment of federal or state law, the adoption of rules or
regulations, or other similar events prevent the use of two allocation
periods, the committee may reduce the number of periods and
adjust the filing deadlines, maximum percentage of credit allocated,
and the allocation dates.

(2) The committee shall adopt a qualified allocation plan, as
provided in Section 42(m)(1) of the Internal Revenue Code. In
adopting this plan, the committee shall comply with the provisions
of Sections 42(m)(1)(B) and 42(m)(1)(C) of the Internal Revenue
Code.

(3) Notwithstanding Section 42(m) of the Internal Revenue
Code, the California Tax Credit Allocation Committee shall
allocate housing credits in accordance with the qualified allocation
plan and regulations, which shall include the following provisions:

(A) All housing sponsors, as defined by paragraph (3) of
subdivision (a), shall demonstrate at the time the application is
filed with the committee that the project meets the following
threshold requirements:

(i) The housing sponsor shall demonstrate there is a need and
demand for low-income housing in the community or region for
which it is proposed.

(ii) The project’s proposed financing, including tax credit
proceeds, shall be sufficient to complete the project and that the
proposed operating income shall be adequate to operate the project
for the extended use period.

(iii) The project shall have enforceable financing commitments,
either construction or permanent financing, for at least 50 percent
of the total estimated financing of the project.

(iv) The housing sponsor shall have and maintain control of the
site for the project.

(v) The housing sponsor shall demonstrate that the project
complies with all applicable local land use and zoning ordinances.

(vi) The housing sponsor shall demonstrate that the project
development team has the experience and the financial capacity
to ensure project completion and operation for the extended use
period.

(vii) The housing sponsor shall demonstrate the amount of tax
credit that is necessary for the financial feasibility of the project
and its viability as a qualified low-income housing project
throughout the extended use period, taking into account operating
expenses, a supportable debt service, reserves, funds set aside for
rental subsidies and required equity, and a development fee that
does not exceed a specified percentage of the eligible basis of the
project prior to inclusion of the development fee in the eligible
basis, as determined by the committee.

(B) The committee shall give a preference to those projects
satisfying all of the threshold requirements of subparagraph (A)
if both of the following apply:

(i) The project serves the lowest income tenants at rents
affordable to those tenants.

(ii) The project is obligated to serve qualified tenants for the
longest period.

(C) In addition to the provisions of subparagraphs (A) and (B),
the committee shall use the following criteria in allocating housing
credits:

(i) Projects serving large families in which a substantial number,
as defined by the committee, of all residential units is comprised
of low-income units with three and more bedrooms.

(ii) Projects providing single-room occupancy units serving
very low income tenants.

(iii) Existing projects that are “at risk of conversion,” as defined
by paragraph (4) of subdivision (c).

(iv) Projects for which a public agency provides direct or indirect
long-term financial support for at least 15 percent of the total
project development costs or projects for which the owner’s equity
constitutes at least 30 percent of the total project development
costs.

(v) Projects that provide tenant amenities not generally available
to residents of low-income housing projects.

(4) For purposes of allocating credits pursuant to this section,
the committee shall not give preference to any project by virtue
of the date of submission of its application.

(k) Section 42(l) of the Internal Revenue Code shall be modified
as follows:

The term “secretary” shall be replaced by the term “California
Franchise Tax Board.”

(l) In the case in which the credit allowed under this section
exceeds the net tax, the excess credit may be carried over to reduce
the net tax in the following year, and succeeding taxable years, if
necessary, until the credit has been exhausted.

(m) A project that received an allocation of a 1989 federal
housing credit dollar amount shall be eligible to receive an
allocation of a 1990 state housing credit dollar amount, subject to
all of the following conditions:

(1) The project was not placed in service prior to 1990.

(2) To the extent the amendments made to this section by the
Statutes of 1990 conflict with any provisions existing in this section
prior to those amendments, the prior provisions of law shall prevail.

(3) Notwithstanding paragraph (2), a project applying for an
allocation under this subdivision is subject to the requirements of
paragraph (3) of subdivision (j).

(n) The credit period with respect to an allocation of credit in
1989 by the California Tax Credit Allocation Committee of which
any amount is attributable to unallocated credit from 1987 or 1988
shall not begin until after December 31, 1989.

(o) The provisions of Section 11407(a) of Public Law 101-508,
relating to the effective date of the extension of the low-income
housing credit, apply to calendar years after 1989.

(p) The provisions of Section 11407(c) of Public Law 101-508,
relating to election to accelerate credit, do not apply.

(q) The amendments to this section made by the act adding this
subdivision apply only to taxable years beginning on or after
January 1, 1994.

(r) This section shall remain in effect on and after December 1,
1990, for as long as Section 42 of the Internal Revenue Code,
relating to low-income housing credits, remains in effect. Any
unused credit may continue to be carried forward, as provided in
subdivision (l), until the credit has been exhausted.

begin delete SEC. 459. end delete
begin insert SEC. 466. end insert   

Section 17132.6 of the Revenue and Taxation Code
is repealed.

begin delete SEC. 460. end delete
begin insert SEC. 467. end insert   

Section 17141 of the Revenue and Taxation Code,
as added by Section 1 of Chapter 439 of the Statutes of 2013, is
amended and renumbered to read:

17141.3 begin insert . end insert   

(a) Gross income shall not include any amount
received by an employee from an employer to compensate for the
additional federal income tax liability incurred by the employee
because, for federal income tax purposes, the same-sex spouse or
domestic partner of the employee is not considered the spouse of
the employee under Section 105(a) or Section 106(a) of the Internal
Revenue Code, including any compensation for the additional
federal income tax liability incurred with respect to those amounts.

(b) This section shall remain in effect only until January 1, 2019,
and as of that date is repealed.

begin delete SEC. 461. end delete
begin insert SEC. 468. end insert   

Section 17155 of the Revenue and Taxation Code,
as added by Section 2 of Chapter 28 of the Statutes of 1996, is
repealed.

begin delete SEC. 462. end delete
begin insert SEC. 469. end insert   

Section 17207.7 of the Revenue and Taxation Code
is amended to read:

17207.7.  

(a) An excess disaster loss, as defined in subdivision
(c), shall be carried to other taxable years as provided in
subdivision (b), with respect to losses sustained in the County of
Mendocino as a result of the tsunami that occurred in March 2011.

(b) (1) In the case of any loss allowed under Section 165(c) of
the Internal Revenue Code, relating to limitation of losses of
individuals, any excess disaster loss shall be carried forward to
each of the five taxable years following the taxable year for which
the loss is claimed. However, if there is any excess disaster loss
remaining after the five-year period, then the applicable percentage,
as set forth in paragraph (1) of subdivision (b) of Section 17276,
of that excess disaster loss shall be carried forward to each of the
next 10 taxable years.

(2) The entire amount of any excess disaster loss as defined in
subdivision (c) shall be carried to the earliest of the taxable years
to which, by reason of subdivision (b), the loss may be carried.
The portion of the loss which shall be carried to each of the other
taxable years shall be the excess, if any, of the amount of excess
disaster loss over the sum of the adjusted taxable income for each
of the prior taxable years to which that excess disaster loss is
carried.

(c) “Excess disaster loss” means a disaster loss computed
pursuant to Section 165 of the Internal Revenue Code which
exceeds the adjusted taxable income of the year of loss or, if the
election under Section 165(i) of the Internal Revenue Code is
made, the adjusted taxable income of the year preceding the loss.

(d) This section and Section 165(i) of the Internal Revenue Code
apply to any of the losses listed in subdivision (a) sustained in any
county or city in this state which was proclaimed by the Governor
to be in a state of disaster.

(e) Losses allowable under this section shall not be taken into
account in computing a net operating loss deduction under Section
172 of the Internal Revenue Code.

(f) For purposes of this section, “adjusted taxable income” shall
be defined by Section 1212(b)(2)(B) of the Internal Revenue Code.

(g) For losses described in subdivision (a), the election under
Section 165(i) of the Internal Revenue Code may be made on a
return or amended return filed on or before the due date of the
return (determined with regard to extension) for the taxable year
in which the disaster occurred.

begin delete SEC. 463. end delete
begin insert SEC. 470. end insert   

Section 17207.8 of the Revenue and Taxation Code
is amended to read:

17207.8.  

(a) An excess disaster loss, as defined in subdivision
(c), shall be carried to other taxable years as provided in
subdivision (b), with respect to losses sustained in the County of
San Mateo as a result of the explosion and fire that occurred in
September 2010.

(b) (1) In the case of any loss allowed under Section 165(c) of
the Internal Revenue Code, relating to limitation of losses of
individuals, any excess disaster loss shall be carried forward to
each of the five taxable years following the taxable year for which
the loss is claimed. However, if there is any excess disaster loss
remaining after the five-year period, then the applicable percentage,
as set forth in paragraph (1) of subdivision (b) of Section 17276,
of that excess disaster loss shall be carried forward to each of the
next 10 taxable years.

(2) The entire amount of any excess disaster loss as defined in
subdivision (c) shall be carried to the earliest of the taxable years
to which, by reason of subdivision (b), the loss may be carried.
The portion of the loss which shall be carried to each of the other
taxable years shall be the excess, if any, of the amount of excess
disaster loss over the sum of the adjusted taxable income for each
of the prior taxable years to which that excess disaster loss is
carried.

(c) “Excess disaster loss” means a disaster loss computed
pursuant to Section 165 of the Internal Revenue Code which
exceeds the adjusted taxable income of the year of loss or, if the
election under Section 165(i) of the Internal Revenue Code is
made, the adjusted taxable income of the year preceding the loss.

(d) This section and Section 165(i) of the Internal Revenue Code
apply to any of the losses listed in subdivision (a) sustained in any
county or city in this state which was proclaimed by the Governor
to be in a state of disaster.

(e) Losses allowable under this section shall not be taken into
account in computing a net operating loss deduction under Section
172 of the Internal Revenue Code.

(f) For purposes of this section, “adjusted taxable income” shall
be defined by Section 1212(b)(2)(B) of the Internal Revenue Code.

(g) For losses described in subdivision (a), the election under
Section 165(i) of the Internal Revenue Code may be made on a
return or amended return filed on or before the due date of the
return (determined with regard to extension) for the taxable year
in which the disaster occurred.

begin delete SEC. 464. end delete
begin insert SEC. 471. end insert   

Section 17276.20 of the Revenue and Taxation Code
is amended and renumbered to read:

17276.  

Except as provided in Sections 17276.1, 17276.2,
17276.4, 17276.5, 17276.6, and 17276.7, the deduction provided
by Section 172 of the Internal Revenue Code, relating to net
operating loss deduction, shall be modified as follows:

(a) (1) Net operating losses attributable to taxable years
beginning before January 1, 1987, shall not be allowed.

(2) A net operating loss shall not be carried forward to any
taxable year beginning before January 1, 1987.

(b) (1) Except as provided in paragraphs (2) and (3), the
provisions of Section 172(b)(2) of the Internal Revenue Code,
relating to amount of carrybacks and carryovers, shall be modified
so that the applicable percentage of the entire amount of the net
operating loss for any taxable year shall be eligible for carryover
to any subsequent taxable year. For purposes of this subdivision,
the applicable percentage shall be:

(A) Fifty percent for any taxable year beginning before January
1, 2000.

(B) Fifty-five percent for any taxable year beginning on or after
January 1, 2000, and before January 1, 2002.

(C) Sixty percent for any taxable year beginning on or after
January 1, 2002, and before January 1, 2004.

(D) One hundred percent for any taxable year beginning on or
after January 1, 2004.

(2) In the case of a taxpayer who has a net operating loss in any
taxable year beginning on or after January 1, 1994, and who
operates a new business during that taxable year, each of the
following shall apply to each loss incurred during the first three
taxable years of operating the new business:

(A) If the net operating loss is equal to or less than the net loss
from the new business, 100 percent of the net operating loss shall
be carried forward as provided in subdivision (d).

(B) If the net operating loss is greater than the net loss from the
new business, the net operating loss shall be carried over as
follows:

(i) With respect to an amount equal to the net loss from the new
business, 100 percent of that amount shall be carried forward as
provided in subdivision (d).

(ii) With respect to the portion of the net operating loss that
exceeds the net loss from the new business, the applicable
percentage of that amount shall be carried forward as provided in
subdivision (d).

(C) For purposes of Section 172(b)(2) of the Internal Revenue
Code, the amount described in clause (ii) of subparagraph (B) shall
be absorbed before the amount described in clause (i) of
subparagraph (B).

(3) In the case of a taxpayer who has a net operating loss in any
taxable year beginning on or after January 1, 1994, and who
operates an eligible small business during that taxable year, each
of the following shall apply:

(A) If the net operating loss is equal to or less than the net loss
from the eligible small business, 100 percent of the net operating
loss shall be carried forward to the taxable years specified in
subdivision (d).

(B) If the net operating loss is greater than the net loss from the
eligible small business, the net operating loss shall be carried over
as follows:

(i) With respect to an amount equal to the net loss from the
eligible small business, 100 percent of that amount shall be carried
forward as provided in subdivision (d).

(ii) With respect to that portion of the net operating loss that
exceeds the net loss from the eligible small business, the applicable
percentage of that amount shall be carried forward as provided in
subdivision (d).

(C) For purposes of Section 172(b)(2) of the Internal Revenue
Code, the amount described in clause (ii) of subparagraph (B) shall
be absorbed before the amount described in clause (i) of
subparagraph (B).

(4) In the case of a taxpayer who has a net operating loss in a
taxable year beginning on or after January 1, 1994, and who
operates a business that qualifies as both a new business and an
eligible small business under this section, that business shall be
treated as a new business for the first three taxable years of the
new business.

(5) In the case of a taxpayer who has a net operating loss in a
taxable year beginning on or after January 1, 1994, and who
operates more than one business, and more than one of those
businesses qualifies as either a new business or an eligible small
business under this section, paragraph (2) shall be applied first,
except that if there is any remaining portion of the net operating
loss after application of clause (i) of subparagraph (B) of that
paragraph, paragraph (3) shall be applied to the remaining portion
of the net operating loss as though that remaining portion of the
net operating loss constituted the entire net operating loss.

(6) For purposes of this section, the term “net loss” means the
amount of net loss after application of Sections 465 and 469 of the
Internal Revenue Code.

(c) Section 172(b)(1) of the Internal Revenue Code, relating to
years to which the loss may be carried, is modified as follows:

(1) Net operating loss carrybacks shall not be allowed for any
net operating losses attributable to taxable years beginning before
January 1, 2013.

(2) A net operating loss attributable to taxable years beginning
on or after January 1, 2013, shall be a net operating loss carryback
to each of the two taxable years preceding the taxable year of the
loss in lieu of the number of years provided therein.

(A) For a net operating loss attributable to a taxable year
beginning on or after January 1, 2013, and before January 1, 2014,
the amount of carryback to any taxable year shall not exceed 50
percent of the net operating loss.

(B) For a net operating loss attributable to a taxable year
beginning on or after January 1, 2014, and before January 1, 2015,
the amount of carryback to any taxable year shall not exceed 75
percent of the net operating loss.

(C) For a net operating loss attributable to a taxable year
beginning on or after January 1, 2015, the amount of carryback to
any taxable year shall not exceed 100 percent of the net operating
loss.

(3) Notwithstanding paragraph (2), Section 172(b)(1)(B) of the
Internal Revenue Code, relating to special rules for REITs, and
Section 172(b)(1)(E) of the Internal Revenue Code, relating to
excess interest loss, and Section 172(h) of the Internal Revenue
Code, relating to corporate equity reduction interest losses, shall
apply as provided.

(4) A net operating loss carryback shall not be carried back to
any taxable year beginning before January 1, 2011.

(d) (1) (A) For a net operating loss for any taxable year
beginning on or after January 1, 1987, and before January 1, 2000,
Section 172(b)(1)(A)(ii) of the Internal Revenue Code is modified
to substitute “five taxable years” in lieu of “20 taxable years”
except as otherwise provided in paragraphs (2) and (3).

(B) For a net operating loss for any taxable year beginning on
or after January 1, 2000, and before January 1, 2008, Section
172(b)(1)(A)(ii) of the Internal Revenue Code is modified to
substitute “10 taxable years” in lieu of “20 taxable years.”

(2) For any taxable year beginning before January 1, 2000, in
the case of a “new business,” the “five taxable years” in paragraph
(1) shall be modified to read as follows:

(A) “Eight taxable years” for a net operating loss attributable
to the first taxable year of that new business.

(B) “Seven taxable years” for a net operating loss attributable
to the second taxable year of that new business.

(C) “Six taxable years” for a net operating loss attributable to
the third taxable year of that new business.

(3) For any carryover of a net operating loss for which a
deduction is denied by Section 17276.3, the carryover period
specified in this subdivision shall be extended as follows:

(A) By one year for a net operating loss attributable to taxable
years beginning in 1991.

(B) By two years for a net operating loss attributable to taxable
years beginning prior to January 1, 1991.

(4) The net operating loss attributable to taxable years beginning
on or after January 1, 1987, and before January 1, 1994, shall be
a net operating loss carryover to each of the 10 taxable years
following the year of the loss if it is incurred by a taxpayer that is
under the jurisdiction of the court in a Title 11 or similar case at
any time during the income year. The loss carryover provided in
the preceding sentence shall not apply to any loss incurred after
the date the taxpayer is no longer under the jurisdiction of the court
in a Title 11 or similar case.

(e) For purposes of this section:

(1) “Eligible small business” means any trade or business that
has gross receipts, less returns and allowances, of less than one
million dollars ($1,000,000) during the taxable year.

(2) Except as provided in subdivision (f), “new business” means
any trade or business activity that is first commenced in this state
on or after January 1, 1994.

(3) “Title 11 or similar case” shall have the same meaning as
in Section 368(a)(3) of the Internal Revenue Code.

(4) In the case of any trade or business activity conducted by a
partnership or “S” corporation paragraphs (1) and (2) shall be
applied to the partnership or “S” corporation.

(f) For purposes of this section, in determining whether a trade
or business activity qualifies as a new business under paragraph
(2) of subdivision (e), the following rules apply:

(1) In any case where a taxpayer purchases or otherwise acquires
all or any portion of the assets of an existing trade or business
(irrespective of the form of entity) that is doing business in this
state (within the meaning of Section 23101), the trade or business
thereafter conducted by the taxpayer (or any related person) shall
not be treated as a new business if the aggregate fair market value
of the acquired assets (including real, personal, tangible, and
intangible property) used by the taxpayer (or any related person)
in the conduct of its trade or business exceeds 20 percent of the
aggregate fair market value of the total assets of the trade or
business being conducted by the taxpayer (or any related person).
For purposes of this paragraph only, the following rules apply:

(A) The determination of the relative fair market values of the
acquired assets and the total assets shall be made as of the last day
of the first taxable year in which the taxpayer (or any related
person) first uses any of the acquired trade or business assets in
its business activity.

(B) Acquired assets that constituted property described in
Section 1221(a)(1) of the Internal Revenue Code in the hands of
the transferor shall not be treated as assets acquired from an
existing trade or business, unless those assets also constitute
property described in Section 1221(a)(1) of the Internal Revenue
Code in the hands of the acquiring taxpayer (or related person).

(2) In a case in which a taxpayer (or any related person) is
engaged in one or more trade or business activities in this state, or
has been engaged in one or more trade or business activities in this
state within the preceding 36 months (“prior trade or business
activity”), and thereafter commences an additional trade or business
activity in this state, the additional trade or business activity shall
only be treated as a new business if the additional trade or business
activity is classified under a different division of the Standard
Industrial Classification (SIC) Manual published by the United
States Office of Management and Budget, 1987 edition, than are
any of the taxpayer’s (or any related person’s) current or prior
trade or business activities.

(3) In a case in which a taxpayer, including all related persons,
is engaged in trade or business activities wholly outside of this
state and the taxpayer first commences doing business in this state
(within the meaning of Section 23101) after December 31, 1993
(other than by purchase or other acquisition described in paragraph
(1)), the trade or business activity shall be treated as a new business
under paragraph (2) of subdivision (e).

(4) In a case in which the legal form under which a trade or
business activity is being conducted is changed, the change in form
shall be disregarded and the determination of whether the trade or
business activity is a new business shall be made by treating the
taxpayer as having purchased or otherwise acquired all or any
portion of the assets of an existing trade or business under the rules
of paragraph (1).

(5) “Related person” shall mean any person that is related to
the taxpayer under either Section 267 or 318 of the Internal
Revenue Code.

(6) “Acquire” shall include any gift, inheritance, transfer incident
to divorce, or any other transfer, whether or not for consideration.

(7) (A) For taxable years beginning on or after January 1, 1997,
the term “new business” shall include any taxpayer that is engaged
in biopharmaceutical activities or other biotechnology activities
that are described in Codes 2833 to 2836, inclusive, of the Standard
Industrial Classification (SIC) Manual published by the United
States Office of Management and Budget, 1987 edition, and as
further amended, and that has not received regulatory approval for
any product from the Food and Drug Administration.

(B) For purposes of this paragraph:

(i) “Biopharmaceutical activities” means those activities that
use organisms or materials derived from organisms, and their
cellular, subcellular, or molecular components, in order to provide
pharmaceutical products for human or animal therapeutics and
diagnostics. Biopharmaceutical activities make use of living
organisms to make commercial products, as opposed to
pharmaceutical activities that make use of chemical compounds
to produce commercial products.

(ii) “Other biotechnology activities” means activities consisting
of the application of recombinant DNA technology to produce
commercial products, as well as activities regarding pharmaceutical
delivery systems designed to provide a measure of control over
the rate, duration, and site of pharmaceutical delivery.

(g) In computing the modifications under Section 172(d)(2) of
the Internal Revenue Code, relating to capital gains and losses of
taxpayers other than corporations, the exclusion provided by
Section 18152.5 shall not be allowed.

(h) Notwithstanding any provisions of this section to the
contrary, a deduction shall be allowed to a “qualified taxpayer” as
provided in Sections 17276.1, 17276.2, 17276.4, 17276.5, 17276.6,
and 17276.7.

(i) The Franchise Tax Board may prescribe appropriate
regulations to carry out the purposes of this section, including any
regulations necessary to prevent the avoidance of the purposes of
this section through splitups, shell corporations, partnerships, tiered
ownership structures, or otherwise.

(j) The Franchise Tax Board may reclassify any net operating
loss carryover determined under either paragraph (2) or (3) of
subdivision (b) as a net operating loss carryover under paragraph
(1) of subdivision (b) upon a showing that the reclassification is
necessary to prevent evasion of the purposes of this section.

(k) Except as otherwise provided, the amendments made by
Chapter 107 of the Statutes of 2000 apply to net operating losses
for taxable years beginning on or after January 1, 2000.

begin delete SEC. 465. end delete
begin insert SEC. 472. end insert   

Section 17276.21 of the Revenue and Taxation Code
is amended to read:

17276.21.  

(a) Notwithstanding Sections 17276, 17276.1,
17276.2, 17276.4, 17276.5, 17276.6, and 17276.7 of this code and
Section 172 of the Internal Revenue Code, no net operating loss
deduction shall be allowed for any taxable year beginning on or
after January 1, 2008, and before January 1, 2012.

(b) For any net operating loss or carryover of a net operating
loss for which a deduction is denied by subdivision (a), the
carryover period under Section 172 of the Internal Revenue Code
shall be extended as follows:

(1) By one year, for losses incurred in taxable years beginning
on or after January 1, 2010, and before January 1, 2011.

(2) By two years, for losses incurred in taxable years beginning
on or after January 1, 2009, and before January 1, 2010.

(3) By three years, for losses incurred in taxable years beginning
on or after January 1, 2008, and before January 1, 2009.

(4) By four years, for losses incurred in taxable years beginning
before January 1, 2008.

(c) Notwithstanding subdivision (a), a net operating loss
deduction shall be allowed for carryback of a net operating loss
attributable to a taxable year beginning on or after January 1, 2013.

(d) The provisions of this section do not apply to the following
taxpayers:

(1) For a taxable year beginning on or after January 1, 2008,
and before January 1, 2010, this section does not apply to a
taxpayer with net business income of less than five hundred
thousand dollars ($500,000) for the taxable year. For purposes of
this paragraph, business income means:

(A) Income from a trade or business, whether conducted by the
taxpayer or by a passthrough entity owned directly or indirectly
by the taxpayer. For purposes of this paragraph, the term
“passthrough entity” means a partnership or an “S” corporation.

(B) Income from rental activity.

(C) Income attributable to a farming business.

(2) For a taxable year beginning on or after January 1, 2010,
and before January 1, 2012, this section does not apply to a
taxpayer with modified adjusted gross income of less than three
hundred thousand dollars ($300,000) for the taxable year. For
purposes of this paragraph, “modified adjusted gross income”
means the amount described in paragraph (2) of subdivision (h)
of Section 17024.5, determined without regard to the deduction
allowed under Section 172 of the Internal Revenue Code, relating
to net operating loss deduction.

begin delete SEC. 466. end delete
begin insert SEC. 473. end insert   

Section 17507.6 of the Revenue and Taxation Code
is repealed.

begin delete SEC. 467. end delete
begin insert SEC. 474. end insert   

Section 17565 of the Revenue and Taxation Code,
as added by Chapter 362 of the Statutes of 1989, is repealed.

begin delete SEC. 468. end delete
begin insert SEC. 475. end insert   

The heading of Chapter 10.5 (commencing with
Section 17940) of Part 10 of Division 2 of the Revenue and
Taxation Code, as added by Section 1 of Chapter 339 of the
Statutes of 1987, is repealed.

begin delete SEC. 469. end delete
begin insert SEC. 476. end insert   

Section 18407 of the Revenue and Taxation Code,
as amended by Section 326 of Chapter 183 of the Statutes of 2004,
is repealed.

begin delete SEC. 470. end delete
begin insert SEC. 477. end insert   

Section 18805 of the Revenue and Taxation Code
is amended to read:

18805.  

(a) A taxpayer may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
California Peace Officer Memorial Foundation Fund, which is
established by Section 18806. That designation is to be used as a
voluntary checkoff on the tax return.

(b) The contributions shall be in full dollar amounts and may
be made individually by each signatory on the joint return.

(c) A designation shall be made for any taxable year on the
initial return for that taxable year, and once made shall be
irrevocable. In the event that payments and credits reported on the
return, together with any other credits associated with the
taxpayer’s account, do not exceed the taxpayer’s liability, the return
shall be treated as though no designation has been made. In the
event that no designee is specified, the contribution shall be
transferred to the General Fund, after reimbursement of the direct
actual costs of the Franchise Tax Board for the collection and the
administration of funds under this article.

(d) In the event a taxpayer designates a contribution to more
than one account or fund listed on the tax return, and the amount
available for designation is insufficient to satisfy the total amount
designated, the contribution shall be allocated among the designees
on a pro rata basis.

(e) The Franchise Tax Board shall revise the forms of the return
to include a space labeled the “California Peace Officer Memorial
Foundation Fund” to allow for the designation permitted. The
forms shall also include in the instructions information that the
contribution may be in the amount of one dollar ($1) or more and
that the contribution shall be used to build and maintain the
California Peace Officers’ Memorial in Sacramento, California,
and for activities performed by the California Peace Officers’
Memorial Foundation in support of families of slain peace officers.

(f) A deduction shall be allowed under Article 6 (commencing
with Section 17201) of Chapter 3 for any contribution made
pursuant to subdivision (a).

begin delete SEC. 471. end delete
begin insert SEC. 478. end insert   

Section 18807 of the Revenue and Taxation Code
is amended to read:

18807.  

All money transferred to the California Peace Officer
Memorial Foundation Fund, upon appropriation by the Legislature,
shall be allocated as follows:

(a) To the Franchise Tax Board and the Controller for
reimbursement of all costs incurred by the Franchise Tax Board
and the Controller in connection with their duties under this article.

(b) To the Department of the California Highway Patrol for
allocation to the California Peace Officers’ Memorial Commission
for building and maintaining the California Peace Officers’
Memorial in Sacramento, California, and for activities performed
by the California Peace Officer Memorial Foundation in support
of families of slain peace officers.

(c) All money transferred to the California Peace Officer
Memorial Foundation Fund prior to the enactment of the act adding
this subdivision is hereby appropriated for allocation as described
in subdivisions (a) and (b).

begin delete SEC. 472. end delete
begin insert SEC. 479. end insert   

Section 18808 of the Revenue and Taxation Code
is amended to read:

18808.  

(a) This article shall remain in effect only until January
1, 2021, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2021, deletes that date.

(b) If the repeal date specified in subdivision (a) has been
deleted, all of the following apply:

(1) By September 1 of the calendar year beginning after the
effective date of the act deleting the repeal date and by September
1 of each subsequent calendar year that the California Peace
Officers’ Memorial Foundation Fund appears on a tax return, the
Franchise Tax Board shall do all of the following:

(A) Determine the minimum contribution amount required to
be received during the next calendar year for the fund to appear
on the tax return for the taxable year that includes that next calendar
year.

(B) Provide written notification to the California Peace Officer
Memorial Commission of the amount determined in subparagraph
(A).

(C) Determine whether the amount of contributions estimated
to be received during the calendar year will equal or exceed the
minimum contribution amount determined by the Franchise Tax
Board for the calendar year pursuant to subparagraph (A). The
Franchise Tax Board shall estimate the amount of contributions
to be received by using the actual amounts received and an estimate
of the contributions that will be received by the end of that calendar
year.

(2) If the Franchise Tax Board determines that the amount of
contributions estimated to be received during a calendar year will
not at least equal the minimum contribution amount for the calendar
year, this article is repealed with respect to taxable years beginning
on or after January 1 of that calendar year.

(3) For purposes of this section, the minimum contribution
amount for a calendar year means two hundred fifty thousand
dollars ($250,000) for the first calendar year beginning after the
effective date of the act that deleted the repeal date specified in
subdivision (a), or the minimum contribution amount adjusted
pursuant to subdivision (c).

(c) For each calendar year, beginning with calendar year 2005,
the Franchise Tax Board shall adjust, on or before September 1 of
that calendar year, the minimum contribution amount specified in
subdivision (b) as follows:

(1) The minimum contribution amount for the calendar year
shall be an amount equal to the product of the minimum
contribution amount for the prior calendar year multiplied by the
inflation factor adjustment as specified in paragraph (2) of
subdivision (h) of Section 17041, rounded off to the nearest dollar.

(2) The inflation factor adjustment used for the calendar year
shall be based on the figures for the percentage change in the
California Consumer Price Index received on or before August 1
of the calendar year pursuant to paragraph (1) of subdivision (h)
of Section 17041.

(d) Notwithstanding the repeal of this article, any contribution
amounts designated pursuant to this article prior to its repeal shall
continue to be transferred and disbursed in accordance with this
article as in effect immediately prior to that repeal.

begin delete SEC. 473. end delete
begin insert SEC. 480. end insert   

Section 19183 of the Revenue and Taxation Code
is amended to read:

19183.  

(a) (1) A penalty shall be imposed for failure to file
correct information returns, as required by this part, and that
penalty shall be determined in accordance with Section 6721 of
the Internal Revenue Code.

(2) Section 6721(e) of the Internal Revenue Code is modified
to the extent that the reference to Section 6041A(b) of the Internal
Revenue Code does not apply.

(b) (1) A penalty shall be imposed for failure to furnish correct
payee statements as required by this part, and that penalty shall be
determined in accordance with Section 6722 of the Internal
Revenue Code.

(2) Section 6722(c) of the Internal Revenue Code is modified
to the extent that the references to Sections 6041A(b) and 6041A(e)
of the Internal Revenue Code do not apply.

(c) A penalty shall be imposed for failure to comply with other
information reporting requirements under this part, and that penalty
shall be determined in accordance with Section 6723 of the Internal
Revenue Code.

(d) (1) The provisions of Section 6724 of the Internal Revenue
Code relating to waiver, definitions, and special rules, shall apply,
except as otherwise provided.

(2) Section 6724(d)(1) of the Internal Revenue Code is modified
as follows:

(A) The following references are substituted:

(i) Subdivision (a) of Section 18640, in lieu of Section
6044(a)(1) of the Internal Revenue Code.

(ii) Subdivision (a) of Section 18644, in lieu of Section 6050A(a)
of the Internal Revenue Code.

(B) References to Sections 4093(c)(4), 4093(e), 4101(d),
6041(b), 6041A(b), 6045(d), 6051(d), and 6053(c)(1) of the Internal
Revenue Code do not apply.

(C) The term “information return” shall also include both of the
following:

(i) The return required by paragraph (1) of subdivision (g) of
Section 18662.

(ii) The return required by subdivision (a) of Section 18631.7.

(3) Section 6724(d)(2) of the Internal Revenue Code is modified
as follows:

(A) The following references are substituted:

(i) Subdivision (b) of Section 18640, in lieu of Section 6044(e)
of the Internal Revenue Code.

(ii) Subdivision (b) of Section 18644, in lieu of Section
6050A(b) of the Internal Revenue Code.

(B) References to Sections 4093(c)(4)(B), 6031(b), 6037(b),
6041A(e), 6045(d), 6051(d), 6053(b), and 6053(c) of the Internal
Revenue Code do not apply.

(C) The term “payee statement” shall also include the statement
required by paragraph (2) of subdivision (g) of Section 18662.

(e) In the case of each failure to provide a written explanation
as required by Section 402(f) of the Internal Revenue Code, at the
time prescribed therefor, unless it is shown that the failure is due
to reasonable cause and not to willful neglect, there shall be paid,
on notice and demand of the Franchise Tax Board and in the same
manner as tax, by the person failing to provide that written
explanation, an amount equal to ten dollars ($10) for each failure,
but the total amount imposed on that person for all those failures
during a calendar year shall not exceed five thousand dollars
($5,000).

(f) A penalty imposed by this part shall be paid on notice and
demand by the Franchise Tax Board and in the same manner as
tax.

begin delete SEC. 474. end delete
begin insert SEC. 481. end insert   

Section 19191 of the Revenue and Taxation Code
is amended to read:

19191.  

(a) The Franchise Tax Board may enter into a voluntary
disclosure agreement with any qualified entity, qualified
shareholder, qualified member, or qualified beneficiary as defined
in Section 19192, that is binding on both the Franchise Tax Board
and the qualified entity, qualified shareholder, qualified member,
or qualified beneficiary.

(b) The Franchise Tax Board shall do all of the following:

(1) Provide guidelines and establish procedures for qualified
entities and their qualified shareholders, qualified members, or
qualified beneficiaries to apply for voluntary disclosure agreements.

(2) Accept applications on an anonymous basis from qualified
entities and their qualified shareholders, qualified members, or
qualified beneficiaries for voluntary disclosure agreements.

(3) Implement procedures for accepting applications for
voluntary disclosure agreements through the National Nexus
Program administered by the Multistate Tax Commission.

(4) For purposes of considering offers from qualified entities
and their qualified shareholders, qualified members, or qualified
beneficiaries to enter into voluntary disclosure agreements, take
into account the following criteria:

(A) The nature and magnitude of the qualified entity’s previous
presence and activity in this state and the facts and circumstances
by which the nexus of the qualified entity or qualified shareholder,
qualified member, or qualified beneficiary was established.

(B) The extent to which the weight of the factual circumstances
demonstrates that a prudent business person exercising reasonable
care would conclude that the previous activities and presence in
this state were or were not immune from taxation by this state by
reason of Public Law 86-272 or otherwise.

(C) Reasonable reliance on the advice of a person in a fiduciary
position or other competent advice that the qualified entity or
qualified shareholder, qualified member, or qualified beneficiary
activities were immune from taxation by this state.

(D) Lack of evidence of willful disregard or neglect of the tax
laws of this state on the part of the qualified entity or qualified
shareholder, qualified member, or qualified beneficiary.

(E) Demonstrations of good faith on the part of the qualified
entity, qualified shareholder, qualified member, or qualified
beneficiary.

(F) Benefits that will accrue to the state by entering into a
voluntary disclosure agreement.

(5) Act on any application of a voluntary disclosure agreement
within 120 days of receipt.

(6) Enter into voluntary disclosure agreements with qualified
entities, qualified shareholders, qualified members, or qualified
beneficiaries, as authorized in subdivision (a) and based on the
criteria set forth in paragraph (4).

(c) Before any voluntary disclosure agreement becomes binding,
the Franchise Tax Board, itself, shall approve the agreement in the
following manner:

(1) The Executive Officer and Chief Counsel of the Franchise
Tax Board shall recommend and submit the voluntary disclosure
agreement to the Franchise Tax Board for approval.

(2) Each voluntary disclosure agreement recommendation shall
be submitted in a manner as to maintain the anonymity of the
taxpayer applying for the voluntary disclosure agreement.

(3) A recommendation for approval of a voluntary disclosure
agreement shall be approved or disapproved by the Franchise Tax
Board, itself, within 45 days of the submission of that
recommendation to the board.

(4) A recommendation of a voluntary disclosure agreement that
is not either approved or disapproved by the board within 45 days
of the submission of that recommendation shall be deemed
approved.

(5) Disapproval of a recommendation of a voluntary disclosure
agreement shall be made only by a majority vote of the Franchise
Tax Board.

(6) The members of the Franchise Tax Board shall not
participate in any voluntary disclosure agreement except as
provided in this subdivision.

(d) The voluntary disclosure agreement entered into by the
Franchise Tax Board and the qualified entity, qualified shareholder,
qualified member, or qualified beneficiary as provided for in
subdivision (a) shall to the extent applicable specify that:

(1) The Franchise Tax Board shall with respect to a qualified
entity, qualified shareholder, qualified member, or qualified
beneficiary, except as provided in paragraph (4), (6), or (9) of
subdivision (a) of Section 19192:

(A) Waive its authority under this part, Part 10 (commencing
with Section 17001), or Part 11 (commencing with Section 23001)
to assess or propose to assess taxes, additions to tax, fees, or
penalties with respect to each taxable year ending prior to six years
from the signing date of the voluntary disclosure agreement.

(B) With respect to each of the six taxable years ending
immediately preceding the signing date of the voluntary disclosure
agreement, based on its discretion, agree to waive any or all of the
following:

(i) A penalty related to a failure to make and file a return, as
provided in Section 19131.

(ii) A penalty related to a failure to pay any amount due by the
date prescribed for payment, as provided in Section 19132.

(iii) An addition to tax related to an underpayment of estimated
tax, as provided in Section 19136.

(iv) A penalty related to Section 6810 or subdivision (a) of
Section 8810 of the Corporations Code, as provided in Section
19141 of this code.

(v) A penalty related to a failure to furnish information or
maintain records, as provided in Section 19141.5.

(vi) An addition to tax related to an underpayment of tax
imposed under Part 11 (commencing with Section 23001), as
provided in Section 19142.

(vii) A penalty related to a partnership required to file a return
under Section 18633, as provided in Section 19172.

(viii) A penalty related to a failure to file information returns,
as provided in Section 19183.

(ix) A penalty related to relief from contract voidability, as
provided in Section 23305.1.

(2) The qualified entity, qualified shareholder, qualified member,
or qualified beneficiary shall:

(A) With respect to each of the six taxable years ending
immediately preceding the signing date of the written agreement:

(i) Voluntarily and fully disclose on the qualified entity’s
application all material facts pertinent to the qualified entity’s,
shareholder’s, member’s, or beneficiary’s liability for any taxes
imposed under Part 10 (commencing with Section 17001) or Part
11 (commencing with Section 23001).

(ii) Except as provided in paragraph (3), within 30 days from
the signing date of the voluntary disclosure agreement:

(I) File all returns required under this part, Part 10 (commencing
with Section 17001), or Part 11 (commencing with Section 23001).

(II) Pay in full any tax, interest, fee, and penalties, other than
those penalties specifically waived by the Franchise Tax Board
under the terms of the voluntary disclosure agreement, imposed
under this part, Part 10 (commencing with Section 17001), or Part
11 (commencing with Section 23001) in a manner as may be
prescribed by the Franchise Tax Board. Paragraph (1) of
subdivision (f) of Section 23153 shall not apply to qualified entities
admitted into the voluntary disclosure program.

(B) Agree to comply with all franchise and income tax laws of
this state in subsequent taxable years by filing all returns required
and paying all amounts due under this part, Part 10 (commencing
with Section 17001), or Part 11 (commencing with Section 23001).

(3) The Franchise Tax Board may extend the time for filing
returns and paying amounts due to 120 days from the signing date
of the voluntary disclosure agreement or to the latest extended due
date of the return for a taxable year for which relief is granted,
whichever is later.

(e) An addition to tax under Section 19136 or 19142 shall not
be made for any underpayment of estimated tax attributable to the
underpayment of an installment of estimated tax due before the
signing date of the voluntary disclosure agreement.

(f) The amendments to this section made by Chapter 954 of the
Statutes of 1996 shall apply to taxable years beginning on or after
January 1, 1997.

(g) The amendments to this section made by Chapter 543 of the
Statutes of 2001 shall apply to voluntary disclosure agreements
entered into on or after January 1, 2002.

(h) The amendments to this section made by Chapter 543 of the
Statutes of 2001 shall apply to voluntary disclosure agreements
entered into on or after January 1, 2005.

(i) The amendments to this section made by Chapter 296 of the
Statutes of 2011 shall apply to voluntary disclosure agreements
entered into on or after January 1, 2011.

begin delete SEC. 475. end delete
begin insert SEC. 482. end insert   

Section 19255 of the Revenue and Taxation Code
is amended to read:

19255.  

(a) Except as otherwise provided in subdivisions (b)
and (e), after 20 years have lapsed from the date the latest tax
liability for a taxable year or the date any other liability that is not
associated with a taxable year becomes “due and payable” within
the meaning of Section 19221, the Franchise Tax Board may not
collect that amount and the taxpayer’s liability to the state for that
liability is abated by reason of lapse of time. Any actions taken by
the Franchise Tax Board to collect an uncollectible liability shall
be released, withdrawn, or otherwise terminated by the Franchise
Tax Board, and no subsequent administrative or civil action shall
be taken or brought to collect all or part of that uncollectible
amount. Any amounts received in contravention of this section
shall be considered an overpayment that may be credited and
refunded in accordance with Article 1 (commencing with Section
19301) of Chapter 6.

(b) If a timely civil action filed pursuant to Article 2 of Chapter
6 of this part is commenced, or a claim is filed in a probate action,
the period for which the liability is collectable shall be extended
and shall not expire until that liability, probate claim, or judgment
against the taxpayer arising from that liability is satisfied or
becomes unenforceable under the laws applicable to the
enforcement of civil judgments.

(c) For purposes of this section, both of the following apply:

(1) “Tax liability” means a liability imposed under Part 10
(commencing with Section 17001), Part 11 (commencing with
Section 23001), or this part, and includes any additions to tax,
interest, penalties, fees and any other amounts relating to the
imposed liability.

(2) If more than one liability is “due and payable” for a particular
taxable year, with the exception of a liability resulting from a
penalty imposed under Section 19777.5, the “due and payable”
date that is later in time shall be the date upon which the 20-year
limitation of subdivision (a) commences.

(d) This section shall not apply to amounts subject to collection
by the Franchise Tax Board pursuant to Article 5, 5.5, or 6 of this
chapter, or any other amount that is not a tax imposed under Part
10 or Part 11, but which the Franchise Tax Board is collecting as
though it were a final personal income tax delinquency.

(e) (1) The expiration of the period of limitation on collection
under this section shall be suspended for the following periods:

(A) The period that the Franchise Tax Board is prohibited from
involuntary collection under subparagraph (B) of paragraph (1) of
subdivision (b) of Section 19271 relating to collection of child
support delinquencies, plus 60 days thereafter.

(B) The period during which the Franchise Tax Board is
prohibited by reason of a bankruptcy case from collecting, plus
six months thereafter.

(C) The period described under subdivision (d) of Section 19008
relating to installment payment agreements.

(D) The period during which collection is postponed by
operation of law under Section 18571, related to postponement by
reason of service in a combat zone, or under Section 18572, related
to postponement by reason of presidentially declared disaster or
terroristic or military action.

(E) During any other period during which collection of a tax is
suspended, postponed, or extended by operation of law.

(2) A suspension of the period of limitation under this
subdivision shall apply with respect to both parties of any liability
that is joint and several.

(f) This section shall be applied on and after July 1, 2006, to
any liability “due and payable” before, on, or after that date.

begin delete SEC. 476. end delete
begin insert SEC. 483. end insert   

Chapter 9.5 (commencing with Section 19778) of
Part 10.2 of Division 2 of the Revenue and Taxation Code, as
added by Section 13 of Chapter 654 of the Statutes of 2003, is
repealed.

begin delete SEC. 477. end delete
begin insert SEC. 484. end insert   

Section 23151 of the Revenue and Taxation Code
is amended to read:

23151.  

(a) With the exception of banks and financial
corporations, every corporation doing business within the limits
of this state and not expressly exempted from taxation by the
provisions of the Constitution of this state or by this part, shall
annually pay to the state, for the privilege of exercising its
corporate franchises within this state, a tax according to or
measured by its net income, to be computed at the rate of 7.6
percent upon the basis of its net income for the next preceding
income year, or if greater, the minimum tax specified in Section
23153.

(b) For calendar or fiscal years ending after June 30, 1973, the
rate of tax shall be 9 percent instead of 7.6 percent as provided by
subdivision (a).

(c) For calendar or fiscal years ending in 1980 to 1986, inclusive,
the rate of tax shall be 9.6 percent.

(d) For calendar or fiscal years ending in 1987 to 1996,
inclusive, and for any income year beginning before January 1,
1997, the tax rate shall be 9.3 percent.

(e) For any income year beginning on or after January 1, 1997,
and before the income year identified in subparagraph (A) of
paragraph (1) of subdivision (f), the tax rate shall be 8.84 percent.
The change in rate provided in this subdivision shall be made
without proration otherwise required by Section 24251.

(f) (1) For the first taxable year beginning on or after January
1, 2000, the tax imposed under this section shall be the sum of
both of the following:

(A) A tax according to or measured by net income, to be
computed at the rate of 8.84 percent upon the basis of the net
income for the next preceding income year, but not less than the
minimum tax specified in Section 23153.

(B) A tax according to or measured by net income, to be
computed at the rate of 8.84 percent upon the basis of the net
income for the first taxable year beginning on or after January 1,
2000, but not less than the minimum tax specified in Section 23153.

(2) Except as provided in paragraph (1), for taxable years
beginning on or after January 1, 2000, the tax imposed under this
section shall be a tax according to or measured by net income, to
be computed at the rate of 8.84 percent upon the basis of the net
income for that taxable year, but not less than the minimum tax
specified in Section 23153.

begin delete SEC. 478. end delete
begin insert SEC. 485. end insert   

The heading of Article 3 (commencing with Section
23571) of Chapter 3 of Part 11 of Division 2 of the Revenue and
Taxation Code is repealed.

begin delete SEC. 479. end delete
begin insert SEC. 486. end insert   

Section 23610.5 of the Revenue and Taxation Code
is amended to read:

23610.5.  

(a) (1) There shall be allowed as a credit against the
“tax” (as defined by Section 23036) a state low-income housing
tax credit in an amount equal to the amount determined in
subdivision (c), computed in accordance with Section 42 of the
Internal Revenue Code of 1986, except as otherwise provided in
this section.

(2) “Taxpayer,” for purposes of this section, means the sole
owner in the case of a “C” corporation, the partners in the case of
a partnership, and the shareholders in the case of an “S”
corporation.

(3) “Housing sponsor,” for purposes of this section, means the
sole owner in the case of a “C” corporation, the partnership in the
case of a partnership, and the “S” corporation in the case of an “S”
corporation.

(b) (1) The amount of the credit allocated to any housing
sponsor shall be authorized by the California Tax Credit Allocation
Committee, or any successor thereof, based on a project’s need
for the credit for economic feasibility in accordance with the
requirements of this section.

(A) The low-income housing project shall be located in
California and shall meet either of the following requirements:

(i) Except for projects to provide farmworker housing, as defined
in subdivision (h) of Section 50199.7 of the Health and Safety
Code, that are allocated credits solely under the set-aside described
in subdivision (c) of Section 50199.20 of the Health and Safety
Code, the project’s housing sponsor has been allocated by the
California Tax Credit Allocation Committee a credit for federal
income tax purposes under Section 42 of the Internal Revenue
Code.

(ii) It qualifies for a credit under Section 42(h)(4)(B) of the
Internal Revenue Code.

(B) The California Tax Credit Allocation Committee shall not
require fees for the credit under this section in addition to those
fees required for applications for the tax credit pursuant to Section
42 of the Internal Revenue Code. The committee may require a
fee if the application for the credit under this section is submitted
in a calendar year after the year the application is submitted for
the federal tax credit.

(C) (i) For a project that receives a preliminary reservation of
the state low-income housing tax credit, allowed pursuant to
subdivision (a), on or after January 1, 2009, and before January 1,
2016, the credit shall be allocated to the partners of a partnership
owning the project in accordance with the partnership agreement,
regardless of how the federal low-income housing tax credit with
respect to the project is allocated to the partners, or whether the
allocation of the credit under the terms of the agreement has
substantial economic effect, within the meaning of Section 704(b)
of the Internal Revenue Code.

(ii) To the extent the allocation of the credit to a partner under
this section lacks substantial economic effect, any loss or deduction
otherwise allowable under this part that is attributable to the sale
or other disposition of that partner’s partnership interest made prior
to the expiration of the federal credit shall not be allowed in the
taxable year in which the sale or other disposition occurs, but shall
instead be deferred until and treated as if it occurred in the first
taxable year immediately following the taxable year in which the
federal credit period expires for the project described in clause (i).

(iii) This subparagraph does not apply to a project that receives
a preliminary reservation of state low-income housing tax credits
under the set-aside described in subdivision (c) of Section 50199.20
of the Health and Safety Code unless the project also receives a
preliminary reservation of federal low-income housing tax credits.

(iv) This subparagraph shall cease to be operative with respect
to any project that receives a preliminary reservation of a credit
on or after January 1, 2016.

(2) (A) The California Tax Credit Allocation Committee shall
certify to the housing sponsor the amount of tax credit under this
section allocated to the housing sponsor for each credit period.

(B) In the case of a partnership or an “S” corporation, the
housing sponsor shall provide a copy of the California Tax Credit
Allocation Committee certification to the taxpayer.

(C) The taxpayer shall, upon request, provide a copy of the
certification to the Franchise Tax Board.

(D) All elections made by the taxpayer pursuant to Section 42
of the Internal Revenue Code apply to this section.

(E) (i) Except as described in clause (ii), for buildings located
in designated difficult development areas (DDAs) or qualified
census tracts (QCTs), as defined in Section 42(d)(5)(B) of the
Internal Revenue Code, credits may be allocated under this section
in the amounts prescribed in subdivision (c), provided that the
amount of credit allocated under Section 42 of the Internal Revenue
Code is computed on 100 percent of the qualified basis of the
building.

(ii) Notwithstanding clause (i), the California Tax Credit
Allocation Committee may allocate the credit for buildings located
in DDAs or QCTs that are restricted to having 50 percent of its
occupants be special needs households, as defined in the California
Code of Regulations by the California Tax Credit Allocation
Committee, even if the taxpayer receives federal credits pursuant
to Section 42(d)(5)(B) of the Internal Revenue Code, provided
that the credit allowed under this section shall not exceed 30
percent of the eligible basis of the building.

(F) (i) The California Tax Credit Allocation Committee may
allocate a credit under this section in exchange for a credit allocated
pursuant to Section 42(d)(5)(B) of the Internal Revenue Code in
amounts up to 30 percent of the eligible basis of a building if the
credits allowed under Section 42 of the Internal Revenue Code are
reduced by an equivalent amount.

(ii) An equivalent amount shall be determined by the California
Tax Credit Allocation Committee based upon the relative amount
required to produce an equivalent state tax credit to the taxpayer.

(c) Section 42(b) of the Internal Revenue Code shall be modified
as follows:

(1) In the case of any qualified low-income building placed in
service by the housing sponsor during 1987, the term “applicable
percentage” means 9 percent for each of the first three years and
3 percent for the fourth year for new buildings (whether or not the
building is federally subsidized) and for existing buildings.

(2) In the case of any qualified low-income building that receives
an allocation after 1989 and is a new building not federally
subsidized, the term “applicable percentage” means the following:

(A) For each of the first three years, the percentage prescribed
by the Secretary of the Treasury for new buildings that are not
federally subsidized for the taxable year, determined in accordance
with the requirements of Section 42(b)(2) of the Internal Revenue
Code, in lieu of the percentage prescribed in Section 42(b)(1)(A)
of the Internal Revenue Code.

(B) For the fourth year, the difference between 30 percent and
the sum of the applicable percentages for the first three years.

(3) In the case of any qualified low-income building that receives
an allocation after 1989 and that is a new building that is federally
subsidized or that is an existing building that is “at risk of
conversion,” the term “applicable percentage” means the following:

(A) For each of the first three years, the percentage prescribed
by the Secretary of the Treasury for new buildings that are federally
subsidized for the taxable year.

(B) For the fourth year, the difference between 13 percent and
the sum of the applicable percentages for the first three years.

(4) For purposes of this section, the term “at risk of conversion,”
with respect to an existing property means a property that satisfies
all of the following criteria:

(A) The property is a multifamily rental housing development
in which at least 50 percent of the units receive governmental
assistance pursuant to any of the following:

(i) New construction, substantial rehabilitation, moderate
rehabilitation, property disposition, and loan management set-aside
programs, or any other program providing project-based assistance
pursuant to Section 8 of the United States Housing Act of 1937,
Section 1437f of Title 42 of the United States Code, as amended.

(ii) The Below-Market-Interest-Rate Program pursuant to
Section 221(d)(3) of the National Housing Act, Sections
1715l(d)(3) and (5) of Title 12 of the United States Code.

(iii) Section 236 of the National Housing Act, Section 1715z-1
of Title 12 of the United States Code.

(iv) Programs for rent supplement assistance pursuant to Section
101 of the Housing and Urban Development Act of 1965, Section
1701s of Title 12 of the United States Code, as amended.

(v) Programs pursuant to Section 515 of the Housing Act of
1949, Section 1485 of Title 42 of the United States Code, as
amended.

(vi) The low-income housing credit program set forth in Section
42 of the Internal Revenue Code.

(B) The restrictions on rent and income levels will terminate or
the federally insured mortgage on the property is eligible for
prepayment any time within five years before or after the date of
application to the California Tax Credit Allocation Committee.

(C) The entity acquiring the property enters into a regulatory
agreement that requires the property to be operated in accordance
with the requirements of this section for a period equal to the
greater of 55 years or the life of the property.

(D) The property satisfies the requirements of Section 42(e) of
the Internal Revenue Code regarding rehabilitation expenditures,
except that the provisions of Section 42(e)(3)(A)(ii)(I) shall not
apply.

(d) The term “qualified low-income housing project” as defined
in Section 42(c)(2) of the Internal Revenue Code is modified by
adding the following requirements:

(1) The taxpayer shall be entitled to receive a cash distribution
from the operations of the project, after funding required reserves,
that at the election of the taxpayer, is equal to:

(A) An amount not to exceed 8 percent of the lesser of:

(i) The owner equity, that shall include the amount of the capital
contributions actually paid to the housing sponsor and shall not
include any amounts until they are paid on an investor note.

(ii) Twenty percent of the adjusted basis of the building as of
the close of the first taxable year of the credit period.

(B) The amount of the cashflow from those units in the building
that are not low-income units. For purposes of computing cashflow
under this subparagraph, operating costs shall be allocated to the
low-income units using the “floor space fraction,” as defined in
Section 42 of the Internal Revenue Code.

(C) Any amount allowed to be distributed under subparagraph
(A) that is not available for distribution during the first five years
of the compliance period may be accumulated and distributed any
time during the first 15 years of the compliance period but not
thereafter.

(2) The limitation on return applies in the aggregate to the
partners if the housing sponsor is a partnership and in the aggregate
to the shareholders if the housing sponsor is an “S” corporation.

(3) The housing sponsor shall apply any cash available for
distribution in excess of the amount eligible to be distributed under
paragraph (1) to reduce the rent on rent-restricted units or to
increase the number of rent-restricted units subject to the tests of
Section 42(g)(1) of the Internal Revenue Code.

(e) The provisions of Section 42(f) of the Internal Revenue Code
shall be modified as follows:

(1) The term “credit period” as defined in Section 42(f)(1) of
the Internal Revenue Code is modified by substituting “four taxable
years” for “10 taxable years.”

(2) The special rule for the first taxable year of the credit period
under Section 42(f)(2) of the Internal Revenue Code shall not apply
to the tax credit under this section.

(3) Section 42(f)(3) of the Internal Revenue Code is modified
to read:

If, as of the close of any taxable year in the compliance period,
after the first year of the credit period, the qualified basis of any
building exceeds the qualified basis of that building as of the close
of the first year of the credit period, the housing sponsor, to the
extent of its tax credit allocation, shall be eligible for a credit on
the excess in an amount equal to the applicable percentage
determined pursuant to subdivision (c) for the four-year period
beginning with the later of the taxable years in which the increase
in qualified basis occurs.

(f) The provisions of Section 42(h) of the Internal Revenue
Code shall be modified as follows:

(1) Section 42(h)(2) of the Internal Revenue Code does not
apply and instead the following provisions apply:

The total amount for the four-year credit period of the housing
credit dollars allocated in a calendar year to any building shall
reduce the aggregate housing credit dollar amount of the California
Tax Credit Allocation Committee for the calendar year in which
the allocation is made.

(2) Paragraphs (3), (4), (5), (6)(E)(i)(II), (6)(F), (6)(G), (6)(I),
(7), and (8) of Section 42(h) of the Internal Revenue Code do not
apply.

(g) The aggregate housing credit dollar amount that may be
allocated annually by the California Tax Credit Allocation
Committee pursuant to this section, Section 12206, and Section
17058 shall be an amount equal to the sum of all the following:

(1) Seventy million dollars ($70,000,000) for the 2001 calendar
year, and, for the 2002 calendar year and each calendar year
thereafter, seventy million dollars ($70,000,000) increased by the
percentage, if any, by which the Consumer Price Index for the
preceding calendar year exceeds the Consumer Price Index for the
2001 calendar year. For the purposes of this paragraph, the term
“Consumer Price Index” means the last Consumer Price Index for
All Urban Consumers published by the federal Department of
Labor.

(2) The unused housing credit ceiling, if any, for the preceding
calendar years.

(3) The amount of housing credit ceiling returned in the calendar
year. For purposes of this paragraph, the amount of housing credit
dollar amount returned in the calendar year equals the housing
credit dollar amount previously allocated to any project that does
not become a qualified low-income housing project within the
period required by this section or to any project with respect to
which an allocation is canceled by mutual consent of the California
Tax Credit Allocation Committee and the allocation recipient.

(4) Five hundred thousand dollars ($500,000) per calendar year
for projects to provide farmworker housing, as defined in
subdivision (h) of Section 50199.7 of the Health and Safety Code.

(5) The amount of any unallocated or returned credits under
former Sections 17053.14, 23608.2, and 23608.3, as those sections
read prior to January 1, 2009, until fully exhausted for projects to
provide farmworker housing, as defined in subdivision (h) of
Section 50199.7 of the Health and Safety Code.

(h) The term “compliance period” as defined in Section 42(i)(1)
of the Internal Revenue Code is modified to mean, with respect to
any building, the period of 30 consecutive taxable years beginning
with the first taxable year of the credit period with respect thereto.

(i) Section 42(j) of the Internal Revenue Code does not apply
and the following shall be substituted in its place:

The requirements of this section shall be set forth in a regulatory
agreement between the California Tax Credit Allocation Committee
and the housing sponsor, and this agreement shall be subordinated,
when required, to any lien or encumbrance of any banks or other
institutional lenders to the project. The regulatory agreement
entered into pursuant to subdivision (f) of Section 50199.14 of the
Health and Safety Code shall apply, provided that the agreement
includes all of the following provisions:

(1) A term not less than the compliance period.

(2) A requirement that the agreement be recorded in the official
records of the county in which the qualified low-income housing
project is located.

(3) A provision stating which state and local agencies can
enforce the regulatory agreement in the event the housing sponsor
fails to satisfy any of the requirements of this section.

(4) A provision that the regulatory agreement shall be deemed
a contract enforceable by tenants as third-party beneficiaries
thereto, and that allows individuals, whether prospective, present,
or former occupants of the building, who meet the income
limitation applicable to the building, the right to enforce the
regulatory agreement in any state court.

(5) A provision incorporating the requirements of Section 42
of the Internal Revenue Code as modified by this section.

(6) A requirement that the housing sponsor notify the California
Tax Credit Allocation Committee or its designee if there is a
determination by the Internal Revenue Service that the project is
not in compliance with Section 42(g) of the Internal Revenue Code.

(7) A requirement that the housing sponsor, as security for the
performance of the housing sponsor’s obligations under the
regulatory agreement, assign the housing sponsor’s interest in rents
that it receives from the project, provided that until there is a
default under the regulatory agreement, the housing sponsor is
entitled to collect and retain the rents.

(8) A provision that the remedies available in the event of a
default under the regulatory agreement that is not cured within a
reasonable cure period include, but are not limited to, allowing
any of the parties designated to enforce the regulatory agreement
to collect all rents with respect to the project; taking possession of
the project and operating the project in accordance with the
regulatory agreement until the enforcer determines the housing
sponsor is in a position to operate the project in accordance with
the regulatory agreement; applying to any court for specific
performance; securing the appointment of a receiver to operate
the project; or any other relief as may be appropriate.

(j) (1) The committee shall allocate the housing credit on a
regular basis consisting of two or more periods in each calendar
year during which applications may be filed and considered. The
committee shall establish application filing deadlines, the maximum
percentage of federal and state low-income housing tax credit
ceiling that may be allocated by the committee in that period, and
the approximate date on which allocations shall be made. If the
enactment of federal or state law, the adoption of rules or
regulations, or other similar events prevent the use of two allocation
periods, the committee may reduce the number of periods and
adjust the filing deadlines, maximum percentage of credit allocated,
and allocation dates.

(2) The committee shall adopt a qualified allocation plan, as
provided in Section 42(m)(1) of the Internal Revenue Code. In
adopting this plan, the committee shall comply with the provisions
of Sections 42(m)(1)(B) and 42(m)(1)(C) of the Internal Revenue
Code.

(3) Notwithstanding Section 42(m) of the Internal Revenue
Code, the California Tax Credit Allocation Committee shall
allocate housing credits in accordance with the qualified allocation
plan and regulations, which shall include the following provisions:

(A) All housing sponsors, as defined by paragraph (3) of
subdivision (a), shall demonstrate at the time the application is
filed with the committee that the project meets the following
threshold requirements:

(i) The housing sponsor shall demonstrate that there is a need
for low-income housing in the community or region for which it
is proposed.

(ii) The project’s proposed financing, including tax credit
proceeds, shall be sufficient to complete the project and shall be
adequate to operate the project for the extended use period.

(iii) The project shall have enforceable financing commitments,
either construction or permanent financing, for at least 50 percent
of the total estimated financing of the project.

(iv) The housing sponsor shall have and maintain control of the
site for the project.

(v) The housing sponsor shall demonstrate that the project
complies with all applicable local land use and zoning ordinances.

(vi) The housing sponsor shall demonstrate that the project
development team has the experience and the financial capacity
to ensure project completion and operation for the extended use
period.

(vii) The housing sponsor shall demonstrate the amount of tax
credit that is necessary for the financial feasibility of the project
and its viability as a qualified low-income housing project
throughout the extended use period, taking into account operating
expenses, a supportable debt service, reserves, funds set aside for
rental subsidies and required equity, and a development fee that
does not exceed a specified percentage of the eligible basis of the
project prior to inclusion of the development fee in the eligible
basis, as determined by the committee.

(B) The committee shall give a preference to those projects
satisfying all of the threshold requirements of subparagraph (A)
if both of the following apply:

(i) The project serves the lowest income tenants at rents
affordable to those tenants.

(ii) The project is obligated to serve qualified tenants for the
longest period.

(C) In addition to the provisions of subparagraphs (A) and (B),
the committee shall use the following criteria in allocating housing
credits:

(i) Projects serving large families in which a substantial number,
as defined by the committee, of all residential units are low-income
units with three and more bedrooms.

(ii) Projects providing single-room occupancy units serving
very low income tenants.

(iii) Existing projects that are “at risk of conversion,” as defined
by paragraph (4) of subdivision (c).

(iv) Projects for which a public agency provides direct or indirect
long-term financial support for at least 15 percent of the total
project development costs or projects for which the owner’s equity
constitutes at least 30 percent of the total project development
costs.

(v) Projects that provide tenant amenities not generally available
to residents of low-income housing projects.

(4) For purposes of allocating credits pursuant to this section,
the committee shall not give preference to any project by virtue
of the date of submission of its application except to break a tie
when two or more of the projects have an equal rating.

(5) Not less than 20 percent of the low-income housing tax
credits available annually under this section, Section 12206, and
Section 17058 shall be set aside for allocation to rural areas as
defined in Section 50199.21 of the Health and Safety Code. Any
amount of credit set aside for rural areas remaining on or after
October 31 of any calendar year shall be available for allocation
to any eligible project. No amount of credit set aside for rural areas
shall be considered available for any eligible project so long as
there are eligible rural applications pending on October 31.

(k) Section 42(l) of the Internal Revenue Code shall be modified
as follows:

The term “secretary” shall be replaced by the term “California
Franchise Tax Board.”

(l) In the case in which the state credit allowed under this section
exceeds the “tax,” the excess may be carried over to reduce the
“tax” in the following year, and succeeding years if necessary,
until the credit has been exhausted.

(m) A project that received an allocation of a 1989 federal
housing credit dollar amount shall be eligible to receive an
allocation of a 1990 state housing credit dollar amount, subject to
all of the following conditions:

(1) The project was not placed in service prior to 1990.

(2) To the extent the amendments made to this section by the
Statutes of 1990 conflict with any provisions existing in this section
prior to those amendments, the prior provisions of law shall prevail.

(3) Notwithstanding paragraph (2), a project applying for an
allocation under this subdivision shall be subject to the
requirements of paragraph (3) of subdivision (j).

(n) The credit period with respect to an allocation of credit in
1989 by the California Tax Credit Allocation Committee of which
any amount is attributable to unallocated credit from 1987 or 1988
shall not begin until after December 31, 1989.

(o) The provisions of Section 11407(a) of Public Law 101-508,
relating to the effective date of the extension of the low-income
housing credit, apply to calendar years after 1989.

(p) The provisions of Section 11407(c) of Public Law 101-508,
relating to election to accelerate credit, do not apply.

(q) (1) A corporation may elect to assign any portion of any
credit allowed under this section to one or more affiliated
corporations for each taxable year in which the credit is allowed.
For purposes of this subdivision, “affiliated corporation” has the
meaning provided in subdivision (b) of Section 25110, as that
section was amended by Chapter 881 of the Statutes of 1993, as
of the last day of the taxable year in which the credit is allowed,
except that “100 percent” is substituted for “more than 50 percent”
wherever it appears in the section, as that section was amended by
Chapter 881 of the Statutes of 1993, and “voting common stock”
is substituted for “voting stock” wherever it appears in the section,
as that section was amended by Chapter 881 of the Statutes of
1993.

(2) The election provided in paragraph (1):

(A) May be based on any method selected by the corporation
that originally receives the credit.

(B) Shall be irrevocable for the taxable year the credit is allowed,
once made.

(C) May be changed for any subsequent taxable year if the
election to make the assignment is expressly shown on each of the
returns of the affiliated corporations that assign and receive the
credits.

(r) Any unused credit may continue to be carried forward, as
provided in subdivision (l), until the credit has been exhausted.

This section shall remain in effect on and after December 1,
1990, for as long as Section 42 of the Internal Revenue Code,
relating to low-income housing credits, remains in effect.

(s) The amendments to this section made by the act adding this
subdivision shall apply only to taxable years beginning on or after
January 1, 1994, except that paragraph (1) of subdivision (q), as
amended, shall apply to taxable years beginning on or after January
1, 1993.

begin delete SEC. 480. end delete
begin insert SEC. 487. end insert   

Section 23622.7 of the Revenue and Taxation Code
is amended to read:

23622.7.  

(a) There shall be allowed a credit against the “tax”
(as defined by Section 23036) to a taxpayer who employs a
qualified employee in an enterprise zone during the taxable year.
The credit shall be equal to the sum of each of the following:

(1) Fifty percent of qualified wages in the first year of
employment.

(2) Forty percent of qualified wages in the second year of
employment.

(3) Thirty percent of qualified wages in the third year of
employment.

(4) Twenty percent of qualified wages in the fourth year of
employment.

(5) Ten percent of qualified wages in the fifth year of
employment.

(b) For purposes of this section:

(1) “Qualified wages” means:

(A) (i) Except as provided in clause (ii), that portion of wages
paid or incurred by the taxpayer during the taxable year to qualified
employees that does not exceed 150 percent of the minimum wage.

(ii) For up to 1,350 qualified employees who are employed by
the taxpayer in the Long Beach Enterprise Zone in aircraft
manufacturing activities described in Codes 3721 to 3728,
inclusive, and Code 3812 of the Standard Industrial Classification
(SIC) Manual published by the United States Office of
Management and Budget, 1987 edition, “qualified wages” means
that portion of hourly wages that does not exceed 202 percent of
the minimum wage.

(B) Wages received during the 60-month period beginning with
the first day the employee commences employment with the
taxpayer. Reemployment in connection with any increase, including
a regularly occurring seasonal increase, in the trade or business
operations of the taxpayer does not constitute commencement of
employment for purposes of this section.

(C) Qualified wages do not include any wages paid or incurred
by the taxpayer on or after the zone expiration date. However,
wages paid or incurred with respect to qualified employees who
are employed by the taxpayer within the enterprise zone within
the 60-month period prior to the zone expiration date shall continue
to qualify for the credit under this section after the zone expiration
date, in accordance with all provisions of this section applied as
if the enterprise zone designation were still in existence and
binding.

(2) “Minimum wage” means the wage established by the
Industrial Welfare Commission as provided for in Chapter 1
(commencing with Section 1171) of Part 4 of Division 2 of the
Labor Code.

(3) “Zone expiration date” means the date the enterprise zone
designation expires, is no longer binding, becomes inoperative, or
is repealed.

(4) (A) “Qualified employee” means an individual who meets
all of the following requirements:

(i) At least 90 percent of whose services for the taxpayer during
the taxable year are directly related to the conduct of the taxpayer’s
trade or business located in an enterprise zone.

(ii) Performs at least 50 percent of his or her services for the
taxpayer during the taxable year in an enterprise zone.

(iii) Is hired by the taxpayer after the date of original designation
of the area in which services were performed as an enterprise zone.

(iv) Is any of the following:

(I) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was a person
eligible for services under the federal Job Training Partnership
Act (29 U.S.C. Sec. 1501 et seq.), or its successor, who is receiving,
or is eligible to receive, subsidized employment, training, or
services funded by the federal Job Training Partnership Act, or its
successor.

(II) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was a person
eligible to be a voluntary or mandatory registrant under the Greater
Avenues for Independence Act of 1985 (GAIN) provided for
pursuant to Article 3.2 (commencing with Section 11320) of
Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions
Code, or its successor.

(III) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was an
economically disadvantaged individual 14 years of age or older.

(IV) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was a dislocated
worker who meets any of the following:

(ia) Has been terminated or laid off or who has received a notice
of termination or layoff from employment, is eligible for or has
exhausted entitlement to unemployment insurance benefits, and
is unlikely to return to his or her previous industry or occupation.

(ib) Has been terminated or has received a notice of termination
of employment as a result of any permanent closure or any
substantial layoff at a plant, facility, or enterprise, including an
individual who has not received written notification but whose
employer has made a public announcement of the closure or layoff.

(ic) Is long-term unemployed and has limited opportunities for
employment or reemployment in the same or a similar occupation
in the area in which the individual resides, including an individual
55 years of age or older who may have substantial barriers to
employment by reason of age.

(id) Was self-employed (including farmers and ranchers) and
is unemployed as a result of general economic conditions in the
community in which he or she resides or because of natural
disasters.

(ie) Was a civilian employee of the Department of Defense
employed at a military installation being closed or realigned under
the Defense Base Closure and Realignment Act of 1990.

(if) Was an active member of the armed forces or National
Guard as of September 30, 1990, and was either involuntarily
separated or separated pursuant to a special benefits program.

(ig) Is a seasonal or migrant worker who experiences chronic
seasonal unemployment and underemployment in the agriculture
industry, aggravated by continual advancements in technology and
mechanization.

(ih) Has been terminated or laid off, or has received a notice of
termination or layoff, as a consequence of compliance with the
Clean Air Act.

(V) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was a disabled
individual who is eligible for or enrolled in, or has completed a
state rehabilitation plan or is a service-connected disabled veteran,
veteran of the Vietnam era, or veteran who is recently separated
from military service.

(VI) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was an
ex-offender. An individual shall be treated as convicted if he or
she was placed on probation by a state court without a finding of
guilt.

(VII) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was a person
eligible for or a recipient of any of the following:

(ia) Federal Supplemental Security Income benefits.

(ib) Aid to Families with Dependent Children.

(ic) CalFresh benefits.

(id) State and local general assistance.

(VIII) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was a member
of a federally recognized Indian tribe, band, or other group of
Native American descent.

(IX) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was a resident
of a targeted employment area (as defined in Section 7072 of the
Government Code).

(X) An employee who qualified the taxpayer for the enterprise
zone hiring credit under former Section 23622 or the program area
hiring credit under former Section 23623.

(XI) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was a member
of a targeted group, as defined in Section 51(d) of the Internal
Revenue Code, or its successor.

(B) Priority for employment shall be provided to an individual
who is enrolled in a qualified program under the federal Job
Training Partnership Act or the Greater Avenues for Independence
Act of 1985 or who is eligible as a member of a targeted group
under the Work Opportunity Tax Credit (Section 51 of the Internal
Revenue Code), or its successor.

(5) “Taxpayer” means a corporation engaged in a trade or
business within an enterprise zone designated pursuant to Chapter
12.8 (commencing with Section 7070) of Division 7 of Title 1 of
the Government Code.

(6) “Seasonal employment” means employment by a taxpayer
that has regular and predictable substantial reductions in trade or
business operations.

(c) The taxpayer shall do both of the following:

(1) Obtain from the Employment Development Department, as
permitted by federal law, the local county or city Job Training
Partnership Act administrative entity, the local county GAIN office
or social services agency, or the local government administering
the enterprise zone, a certification that provides that a qualified
employee meets the eligibility requirements specified in clause
(iv) of subparagraph (A) of paragraph (4) of subdivision (b). The
Employment Development Department may provide preliminary
screening and referral to a certifying agency. The Employment
Development Department shall develop a form for this purpose.
The Department of Housing and Community Development shall
develop regulations governing the issuance of certificates by local
governments pursuant to subdivision (a) of Section 7086 of the
Government Code.

(2) Retain a copy of the certification and provide it upon request
to the Franchise Tax Board.

(d) (1) For purposes of this section:

(A) All employees of all corporations which are members of
the same controlled group of corporations shall be treated as
employed by a single taxpayer.

(B) The credit, if any, allowable by this section to each member
shall be determined by reference to its proportionate share of the
expense of the qualified wages giving rise to the credit, and shall
be allocated in that manner.

(C) For purposes of this subdivision, “controlled group of
corporations” means “controlled group of corporations” as defined
in Section 1563(a) of the Internal Revenue Code, except that:

(i) “More than 50 percent” shall be substituted for “at least 80
percent” each place it appears in Section 1563(a)(1) of the Internal
Revenue Code.

(ii) The determination shall be made without regard to
subsections (a)(4) and (e)(3)(C) of Section 1563 of the Internal
Revenue Code.

(2) If an employer acquires the major portion of a trade or
business of another employer (hereinafter in this paragraph referred
to as the “predecessor”) or the major portion of a separate unit of
a trade or business of a predecessor, then, for purposes of applying
this section (other than subdivision (e)) for any calendar year
ending after that acquisition, the employment relationship between
a qualified employee and an employer shall not be treated as
terminated if the employee continues to be employed in that trade
or business.

(e) (1) (A) If the employment, other than seasonal employment,
of any qualified employee with respect to whom qualified wages
are taken into account under subdivision (a) is terminated by the
taxpayer at any time during the first 270 days of that employment,
whether or not consecutive, or before the close of the 270th
calendar day after the day in which that employee completes 90
days of employment with the taxpayer, the tax imposed by this
part for the taxable year in which that employment is terminated
shall be increased by an amount equal to the credit allowed under
subdivision (a) for that taxable year and all prior taxable years
attributable to qualified wages paid or incurred with respect to that
employee.

(B) If the seasonal employment of any qualified employee, with
respect to whom qualified wages are taken into account under
subdivision (a) is not continued by the taxpayer for a period of
270 days of employment during the 60-month period beginning
with the day the qualified employee commences seasonal
employment with the taxpayer, the tax imposed by this part, for
the taxable year that includes the 60th month following the month
in which the qualified employee commences seasonal employment
with the taxpayer, shall be increased by an amount equal to the
credit allowed under subdivision (a) for that taxable year and all
prior taxable years attributable to qualified wages paid or incurred
with respect to that qualified employee.

(2) (A) Subparagraph (A) of paragraph (1) does not apply to
any of the following:

(i) A termination of employment of a qualified employee who
voluntarily leaves the employment of the taxpayer.

(ii) A termination of employment of a qualified employee who,
before the close of the period referred to in subparagraph (A) of
paragraph (1), becomes disabled and unable to perform the services
of that employment, unless that disability is removed before the
close of that period and the taxpayer fails to offer reemployment
to that employee.

(iii) A termination of employment of a qualified employee, if
it is determined that the termination was due to the misconduct (as
defined in Sections 1256-30 to 1256-43, inclusive, of Title 22 of
the California Code of Regulations) of that employee.

(iv) A termination of employment of a qualified employee due
to a substantial reduction in the trade or business operations of the
taxpayer.

(v) A termination of employment of a qualified employee, if
that employee is replaced by other qualified employees so as to
create a net increase in both the number of employees and the
hours of employment.

(B) Subparagraph (B) of paragraph (1) does not apply to any
of the following:

(i) A failure to continue the seasonal employment of a qualified
employee who voluntarily fails to return to the seasonal
employment of the taxpayer.

(ii) A failure to continue the seasonal employment of a qualified
employee who, before the close of the period referred to in
subparagraph (B) of paragraph (1), becomes disabled and unable
to perform the services of that seasonal employment, unless that
disability is removed before the close of that period and the
taxpayer fails to offer seasonal employment to that qualified
employee.

(iii) A failure to continue the seasonal employment of a qualified
employee, if it is determined that the failure to continue the
seasonal employment was due to the misconduct (as defined in
Sections 1256-30 to 1256-43, inclusive, of Title 22 of the California
Code of Regulations) of that qualified employee.

(iv) A failure to continue seasonal employment of a qualified
employee due to a substantial reduction in the regular seasonal
trade or business operations of the taxpayer.

(v) A failure to continue the seasonal employment of a qualified
employee, if that qualified employee is replaced by other qualified
employees so as to create a net increase in both the number of
seasonal employees and the hours of seasonal employment.

(C) For purposes of paragraph (1), the employment relationship
between the taxpayer and a qualified employee shall not be treated
as terminated by either of the following:

(i) By a transaction to which Section 381(a) of the Internal
Revenue Code applies, if the qualified employee continues to be
employed by the acquiring corporation.

(ii) By reason of a mere change in the form of conducting the
trade or business of the taxpayer, if the qualified employee
continues to be employed in that trade or business and the taxpayer
retains a substantial interest in that trade or business.

(3) Any increase in tax under paragraph (1) shall not be treated
as tax imposed by this part for purposes of determining the amount
of any credit allowable under this part.

(f) Rules similar to the rules provided in Section 46(e) and (h)
of the Internal Revenue Code shall apply to both of the following:

(1) An organization to which Section 593 of the Internal
Revenue Code applies.

(2) A regulated investment company or a real estate investment
trust subject to taxation under this part.

(g) For purposes of this section, “enterprise zone” means an
area designated as an enterprise zone pursuant to Chapter 12.8
(commencing with Section 7070) of Division 7 of Title 1 of the
Government Code.

(h) The credit allowable under this section shall be reduced by
the credit allowed under Sections 23623.5, 23625, and 23646
claimed for the same employee. The credit shall also be reduced
by the federal credit allowed under Section 51 of the Internal
Revenue Code.

In addition, any deduction otherwise allowed under this part for
the wages or salaries paid or incurred by the taxpayer upon which
the credit is based shall be reduced by the amount of the credit,
prior to any reduction required by subdivision (i) or (j).

(i) In the case where the credit otherwise allowed under this
section exceeds the “tax” for the taxable year, that portion of the
credit that exceeds the “tax” may be carried over and added to the
credit, if any, in the succeeding 10 taxable years, if necessary, until
the credit is exhausted. The credit shall be applied first to the
earliest taxable years possible.

(j) (1) The amount of the credit otherwise allowed under this
section and Section 23612.2, including any credit carryover from
prior years, that may reduce the “tax” for the taxable year shall
not exceed the amount of tax which would be imposed on the
taxpayer’s business income attributable to the enterprise zone
determined as if that attributable income represented all of the
income of the taxpayer subject to tax under this part.

(2) Attributable income shall be that portion of the taxpayer’s
California source business income that is apportioned to the
enterprise zone. For that purpose, the taxpayer’s business
attributable to sources in this state first shall be determined in
accordance with Chapter 17 (commencing with Section 25101).
That business income shall be further apportioned to the enterprise
zone in accordance with Article 2 (commencing with Section
25120) of Chapter 17, modified for purposes of this section in
accordance with paragraph (3).

(3) Business income shall be apportioned to the enterprise zone
by multiplying the total California business income of the taxpayer
by a fraction, the numerator of which is the property factor plus
the payroll factor, and the denominator of which is two. For
purposes of this paragraph:

(A) The property factor is a fraction, the numerator of which is
the average value of the taxpayer’s real and tangible personal
property owned or rented and used in the enterprise zone during
the income year, and the denominator of which is the average value
of all the taxpayer’s real and tangible personal property owned or
rented and used in this state during the income year.

(B) The payroll factor is a fraction, the numerator of which is
the total amount paid by the taxpayer in the enterprise zone during
the income year for compensation, and the denominator of which
is the total compensation paid by the taxpayer in this state during
the income year.

(4) The portion of any credit remaining, if any, after application
of this subdivision, shall be carried over to succeeding taxable
years, if necessary, until the credit is exhausted, as if it were an
amount exceeding the “tax” for the taxable year, as provided in
subdivision (i). However, the portion of any credit remaining for
carryover to taxable years beginning on or after January 1, 2014,
if any, after application of this subdivision, shall be carried over
only to the succeeding 10 taxable years if necessary, until the credit
is exhausted, as if it were an amount exceeding the “tax” for the
taxable year, as provided in subdivision (i).

(k) The changes made to this section by the act adding this
subdivision apply to taxable years on or after January 1, 1997.

(l) (1) Except as provided in paragraph (2), this section shall
cease to be operative on January 1, 2014, and shall be repealed on
December 1, 2019. A credit shall not be allowed under this section
with respect to an employee who first commences employment
with a taxpayer on or after January 1, 2014.

(2) This section shall continue to apply with respect to qualified
employees who are employed by the taxpayer within the enterprise
zone within the 60-month period immediately preceding January
1, 2014, and qualified wages paid or incurred with respect to those
qualified employees shall continue to qualify for the credit under
this section for taxable years beginning on or after January 1, 2014,
in accordance with this section, as amended by the act adding this
subdivision.

begin delete SEC. 481. end delete
begin insert SEC. 488. end insert   

Section 23626 of the Revenue and Taxation Code
is amended to read:

23626.  

(a) (1) For each taxable year beginning on or after
January 1, 2014, and before January 1, 2021, there shall be allowed
to a qualified taxpayer that hires a qualified full-time employee
and pays or incurs qualified wages attributable to work performed
by the qualified full-time employee in a designated census tract
or economic development area, and that receives a tentative credit
reservation for that qualified full-time employee, a credit against
the “tax,” as defined by Section 23036, in an amount calculated
under this section.

(2) The amount of the credit allowable under this section for a
taxable year shall be equal to the product of the tentative credit
amount for the taxable year and the applicable percentage for the
taxable year.

(3) (A) If a qualified taxpayer relocates to a designated census
tract or economic development area, the qualified taxpayer shall
be allowed a credit with respect to qualified wages for each
qualified full-time employee who is employed within the new
location only if the qualified taxpayer provides each employee at
the previous location or locations a written offer of employment
at the new location in the designated census tract or economic
development area with comparable compensation.

(B) For purposes of this paragraph, “relocates to a designated
census tract or economic development area” means an increase in
the number of qualified full-time employees, employed by a
qualified taxpayer, within a designated census tract or tracts or
economic development areas within a 12-month period in which
there is a decrease in the number of full-time employees, employed
by the qualified taxpayer in this state, but outside of designated
census tracts or economic development areas.

(C) This paragraph does not apply to a small business.

(4) The credit allowed by this section may only be claimed on
a timely filed original return of the qualified taxpayer and only
with respect to a qualified full-time employee for whom the
qualified taxpayer has received a tentative credit reservation.

(b) For purposes of this section:

(1) The “tentative credit amount” for a taxable year shall be
equal to the product of the applicable credit percentage for each
qualified full-time employee and the qualified wages paid by the
qualified taxpayer during the taxable year to that qualified full-time
employee.

(2) The “applicable percentage” for a taxable year shall be equal
to a fraction, the numerator of which is the net increase in the total
number of full-time employees employed in this state during the
taxable year, determined on an annual full-time equivalent basis,
as compared with the total number of full-time employees
employed in this state during the base year, determined on the
same basis, and the denominator of which shall be the total number
of qualified full-time employees employed in this state during the
taxable year. The applicable percentage shall not exceed 100
percent.

(3) The “applicable credit percentage” means the credit
percentage for the calendar year during which a qualified full-time
employee was first employed by the qualified taxpayer. The
applicable credit percentage for all calendar years shall be 35
percent.

(4) “Base year” means the 2013 taxable year, or in the case of
a qualified taxpayer who first hires a qualified full-time employee
in a taxable year beginning on or after January 2015, the taxable
year immediately preceding the taxable year in which the qualified
full-time employee was hired.

(5) “Acquired” includes any gift, inheritance, transfer incident
to divorce, or any other transfer, whether or not for consideration.

(6) “Annual full-time equivalent” means either of the following:

(A) In the case of a full-time employee paid hourly qualified
wages, “annual full-time equivalent” means the total number of
hours worked for the qualified taxpayer by the employee (not to
exceed 2,000 hours per employee) divided by 2,000.

(B) In the case of a salaried full-time employee, “annual
full-time equivalent” means the total number of weeks worked for
the qualified taxpayer by the employee divided by 52.

(7) “Designated census tract” means a census tract within the
state that is determined by the Department of Finance to have a
civilian unemployment rate that is within the top 25 percent of all
census tracts within the state and has a poverty rate within the top
25 percent of all census tracts within the state, as prescribed in
Section 13073.5 of the Government Code.

(8) “Economic development area” means either of the following:

(A) A former enterprise zone. For purposes of this section,
“former enterprise zone” means an enterprise zone designated and
in effect as of December 31, 2011, any enterprise zone designated
during 2012, and any revision of an enterprise zone prior to June
30, 2013, under former Chapter 12.8 (commencing with Section
7070) of Division 7 of Title 1 of the Government Code, as in effect
on December 31, 2012, excluding any census tract within an
enterprise zone that is identified by the Department of Finance
pursuant to Section 13073.5 of the Government Code as a census
tract within the lowest quartile of census tracts with the lowest
civilian unemployment and poverty.

(B) A local agency military base recovery area designated as
of the effective date of the act adding this subparagraph, in
accordance with Section 7114 of the Government Code.

(9) “Minimum wage” means the wage established pursuant to
Chapter 1 (commencing with Section 1171) of Part 4 of Division
2 of the Labor Code.

(10) (A) “Qualified full-time employee” means an individual
who meets all of the following requirements:

(i) Performs at least 50 percent of his or her services for the
qualified taxpayer during the taxable year in a designated census
tract or economic development area.

(ii) Receives starting wages that are at least 150 percent of the
minimum wage.

(iii) Is hired by the qualified taxpayer on or after January 1,
2014.

(iv) Is hired by the qualified taxpayer after the date the
Department of Finance determines that the census tract referred
to in clause (i) is a designated census tract or that the census tracts
within a former enterprise zone are not census tracts with the lowest
civilian unemployment and poverty.

(v) Satisfies either of the following conditions:

(I) Is paid qualified wages by the qualified taxpayer for services
not less than an average of 35 hours per week.

(II) Is a salaried employee and was paid compensation during
the taxable year for full-time employment, within the meaning of
Section 515 of the Labor Code, by the qualified taxpayer.

(vi) Upon commencement of employment with the qualified
taxpayer, satisfies any of the following conditions:

(I) Was unemployed for the six months immediately preceding
employment with the qualified taxpayer. In the case of an
individual who completed a program of study at a college,
university, or other postsecondary educational institution, received
a baccalaureate, postgraduate, or professional degree, and was
unemployed for the six months immediately preceding employment
with the qualified taxpayer, that individual must have completed
that program of study at least 12 months prior to the individual’s
commencement of employment with the qualified taxpayer.

(II) Is a veteran who separated from service in the Armed Forces
of the United States within the 12 months preceding
commencement of employment with the qualified taxpayer.

(III) Was a recipient of the credit allowed under Section 32 of
the Internal Revenue Code, relating to earned income, as applicable
for federal purposes, for the previous taxable year.

(IV) Is an ex-offender previously convicted of a felony.

(V) Is a recipient of either CalWORKs, in accordance with
Article 2 (commencing with Section 11250) of Chapter 2 of Part
3 of Division 9 of the Welfare and Institutions Code, or general
assistance, in accordance with Section 17000.5 of the Welfare and
Institutions Code.

(B) An individual may only be considered a qualified full-time
employee for the period of time commencing with the date the
individual is first employed by the qualified taxpayer and ending
60 months thereafter.

(11) (A) “Qualified taxpayer” means a corporation engaged in
a trade or business within designated census tract or economic
development area that, during the taxable year, pays or incurs
qualified wages.

(B) In the case of any pass-thru entity, the determination of
whether a taxpayer is a qualified taxpayer under this section shall
be made at the entity level and any credit under this section or
Section 17053.73 shall be allowed to the pass-thru entity and
passed through to the partners and shareholders in accordance with
applicable provisions of this part or Part 10 (commencing with
Section 17001). For purposes of this subdivision, the term
“pass-thru entity” means any partnership or “S” corporation.

(C) “Qualified taxpayer” shall not include any of the following:

(i) Employers that provide temporary help services, as described
in Code 561320 of the North American Industry Classification
System (NAICS) published by the United States Office of
Management and Budget, 2012 edition.

(ii) Employers that provide retail trade services, as described
in Sector 44-45 of the North American Industry Classification
System (NAICS) published by the United States Office of
Management and Budget, 2012 edition.

(iii) Employers that are primarily engaged in providing food
services, as described in Code 711110, 722511, 722513, 722514,
or 722515 of the North American Industry Classification System
(NAICS) published by the United States Office of Management
and Budget, 2012 edition.

(iv) Employers that are primarily engaged in services as
described in Code 713210, 721120, or 722410 of the North
American Industry Classification System (NAICS) published by
the United States Office of Management and Budget, 2012 edition.

(v) (I) An employer that is a sexually oriented business.

(II) For purposes of this clause:

(ia) “Sexually oriented business” means a nightclub, bar,
restaurant, or similar commercial enterprise that provides for an
audience of two or more individuals live nude entertainment or
live nude performances where the nudity is a function of everyday
business operations and where nudity is a planned and intentional
part of the entertainment or performance.

(ib) “Nude” means clothed in a manner that leaves uncovered
or visible, through less than fully opaque clothing, any portion of
the genitals or, in the case of a female, any portion of the breasts
below the top of the areola of the breasts.

(D) Subparagraph (C) shall not apply to a taxpayer that is a
“small business.”

(12) “Qualified wages” means those wages that meet all of the
following requirements:

(A) (i) Except as provided in clause (ii), that portion of wages
paid or incurred by the qualified taxpayer during the taxable year
to each qualified full-time employee that exceeds 150 percent of
minimum wage, but does not exceed 350 percent of the minimum
wage.

(ii) (I) In the case of a qualified full-time employee employed
in a designated pilot area, that portion of wages paid or incurred
by the qualified taxpayer during the taxable year to each qualified
full-time employee that exceeds ten dollars ($10) per hour or an
equivalent amount for salaried employees, but does not exceed
350 percent of the minimum wage. For qualified full-time
employees described in the preceding sentence, clause (ii) of
subparagraph (A) of paragraph (10) is modified by substituting
“ten dollars ($10) per hour or an equivalent amount for salaried
employees” for “150 percent of the minimum wage.”

(II) For purposes of this clause:

(ia) “Designated pilot area” means an area designated as a
designated pilot area by the Governor’s Office of Business and
Economic Development.

(ib) Areas that may be designated as a designated pilot area are
limited to areas within a designated census tract or an economic
development area with average wages less than the statewide
average wages, based on information from the Labor Market
Division of the Employment Development Department, and areas
within a designated census tract or an economic development area
based on high poverty or high unemployment.

(ic) The total number of designated pilot areas that may be
designated is limited to five, one or more of which must be an area
within five or fewer designated census tracts within a single county
based on high poverty or high unemployment or an area within an
economic development area based on high poverty or high
unemployment.

(id) The designation of a designated pilot area shall be applicable
for a period of four calendar years, commencing with the first
calendar year for which the designation of a designated pilot area
is effective. The applicable period of a designated pilot area may
be extended, in the sole discretion of the Governor’s Office of
Business and Economic Development, for an additional period of
up to three calendar years. The applicable period, and any extended
period, shall not extend beyond December 31, 2020.

(III) The designation of an area as a designated pilot area and
the extension of the applicable period of a designated pilot area
shall be at the sole discretion of the Governor’s Office of Business
and Economic Development and shall not be subject to
administrative appeal or judicial review.

(B) Wages paid or incurred during the 60-month period
beginning with the first day the qualified full-time employee
commences employment with the qualified taxpayer. In the case
of any employee who is reemployed, including regularly occurring
seasonal increase, in the trade or business operations of the
qualified taxpayer, this reemployment shall not be treated as
constituting commencement of employment for purposes of this
section.

(C) Except as provided in paragraph (3) of subdivision (m),
qualified wages shall not include any wages paid or incurred by
the qualified taxpayer on or after the date that the Department of
Finance’s redesignation of designated census tracts is effective,
as provided in paragraph (2) of subdivision (g), so that a census
tract is no longer determined to be a designated census tract.

(13) “Seasonal employment” means employment by a qualified
taxpayer that has regular and predictable substantial reductions in
trade or business operations.

(14) (A) “Small business” means a trade or business that has
aggregate gross receipts, less returns and allowances reportable to
this state, of less than two million dollars ($2,000,000) during the
previous taxable year.

(B) (i) For purposes of this paragraph, “gross receipts, less
returns and allowances reportable to this state,” means the sum of
the gross receipts from the production of business income, as
defined in subdivision (a) of Section 25120, and the gross receipts
from the production of nonbusiness income, as defined in
subdivision (d) of Section 25120.

(ii) In the case of any trade or business activity conducted by a
partnership or an “S” corporation, the limitations set forth in
subparagraph (A) shall be applied to the partnership or “S”
corporation and to each partner or shareholder.

(iii) For taxpayers that are required to be included in a combined
report under Section 25101 or authorized to be included in a
combined report under Section 25101.15, the dollar amount
specified in subparagraph (A) shall apply to the aggregate gross
receipts of all taxpayers that are required to be or authorized to be
included in a combined report.

(C) (i) “Small business” shall not include a sexually oriented
business.

(ii) For purposes of this subparagraph:

(I) “Sexually oriented business” means a nightclub, bar,
restaurant, or similar commercial enterprise that provides for an
audience of two or more individuals live nude entertainment or
live nude performances where the nudity is a function of everyday
business operations and where nudity is a planned and intentional
part of the entertainment or performance.

(II) “Nude” means clothed in a manner that leaves uncovered
or visible, through less than fully opaque clothing, any portion of
the genitals or, in the case of a female, any portion of the breasts
below the top of the areola of the breasts.

(15) An individual is “unemployed” for any period for which
the individual is all of the following:

(A) Not in receipt of wages subject to withholding under Section
13020 of the Unemployment Insurance Code for that period.

(B) Not a self-employed individual (within the meaning of
Section 401(c)(1)(B) of the Internal Revenue Code, relating to
self-employed individual) for that period.

(C) Not a registered full-time student at a high school, college,
university, or other postsecondary educational institution for that
period.

(c) The net increase in full-time employees of a qualified
taxpayer shall be determined as provided by this subdivision:

(1) (A) The net increase in full-time employees shall be
determined on an annual full-time equivalent basis by subtracting
from the amount determined in subparagraph (C) the amount
determined in subparagraph (B).

(B) The total number of full-time employees employed in the
base year by the taxpayer and by any trade or business acquired
by the taxpayer during the current taxable year.

(C) The total number of full-time employees employed in the
current taxable year by the taxpayer and by any trade or business
acquired during the current taxable year.

(2) For taxpayers who first commence doing business in this
state during the taxable year, the number of full-time employees
for the base year shall be zero.

(d) For purposes of this section:

(1) All employees of the trades or businesses that are treated as
related under Section 267, 318, or 707 of the Internal Revenue
Code shall be treated as employed by a single taxpayer.

(2) In determining whether the taxpayer has first commenced
doing business in this state during the taxable year, the provisions
of subdivision (g) of Section 24416, without application of
paragraph (7) of that subdivision, apply.

(e) (1) To be eligible for the credit allowed by this section, a
qualified taxpayer shall, upon hiring a qualified full-time employee,
request a tentative credit reservation from the Franchise Tax Board
within 30 days of complying with the Employment Development
Department’s new hire reporting requirement as provided in
Section 1088.5 of the Unemployment Insurance Code, in the form
and manner prescribed by the Franchise Tax Board.

(2) To obtain a tentative credit reservation with respect to a
qualified full-time employee, the qualified taxpayer shall provide
necessary information, as determined by the Franchise Tax Board,
including the name, the social security number, the start date of
employment, the rate of pay of the qualified full-time employee,
the qualified taxpayer’s gross receipts, less returns and allowances,
for the previous taxable year, and whether the qualified full-time
employee is a resident of a targeted employment area, as defined
in former Section 7072 of the Government Code, as in effect on
December 31, 2013.

(3) The qualified taxpayer shall provide the Franchise Tax Board
an annual certification of employment with respect to each
qualified full-time employee hire in a previous taxable year, on or
before the 15th day of the third month of the taxable year. The
certification shall include necessary information, as determined
by the Franchise Tax Board, including the name, social security
number, start date of employment, and rate of pay for each qualified
full-time employee employed by the qualified taxpayer.

(4) A tentative credit reservation provided to a taxpayer with
respect to an employee of that taxpayer shall not constitute a
determination by the Franchise Tax Board with respect to any of
the requirements of this section regarding a taxpayer’s eligibility
for the credit authorized by this section.

(f) The Franchise Tax Board shall do all of the following:

(1) Approve a tentative credit reservation with respect to a
qualified full-time employee hired during a calendar year.

(2) Determine the aggregate tentative reservation amount and
the aggregate small business tentative reservation amount for a
calendar year.

(3) A tentative credit reservation request from a qualified
taxpayer with respect to a qualified full-time employee who is a
resident of a targeted employment area, as defined in former
Section 7072 of the Government Code, as in effect on December
31, 2013, shall be expeditiously processed by the Franchise Tax
Board. The residence of a qualified full-time employee in a targeted
employment area shall have no other effect on the eligibility of an
individual as a qualified full-time employee or the eligibility of a
qualified taxpayer for the credit authorized by this section.

(4) Notwithstanding Section 19542, provide as a searchable
database on its Internet Web site, for each taxable year beginning
on or after January 1, 2014, and before January 1, 2021, the
employer names, amounts of tax credit claimed, and number of
new jobs created for each taxable year pursuant to this section and
Section 17053.73.

(g) (1) The Department of Finance shall, by January 1, 2014,
and by January 1 of every fifth year thereafter, provide the
Franchise Tax Board with a list of the designated census tracts and
a list of census tracts with the lowest civilian unemployment rate.

(2) The redesignation of designated census tracts and lowest
civilian unemployment census tracts by the Department of Finance
as provided in Section 13073.5 of the Government Code shall be
effective, for purposes of this credit, one year after the date that
the Department of Finance redesignates the designated census
tracts.

(h) (1) For purposes of this section:

(A) All employees of the trades or businesses that are treated
as related under Section 267, 318, or 707 of the Internal Revenue
Code shall be treated as employed by a single qualified taxpayer.

(B) All employees of all corporations that are members of the
same controlled group of corporations shall be treated as employed
by a single qualified taxpayer.

(C) The credit, if any, allowable by this section to each member
shall be determined by reference to its proportionate share of the
expense of the qualified wages giving rise to the credit, and shall
be allocated in that manner.

(D) If a qualified taxpayer acquires the major portion of a trade
or business of another taxpayer, hereinafter in this paragraph
referred to as the predecessor, or the major portion of a separate
unit of a trade or business of a predecessor, then, for purposes of
applying this section for any taxable year ending after that
acquisition, the employment relationship between a qualified
full-time employee and a qualified taxpayer shall not be treated
as terminated if the employee continues to be employed in that
trade or business.

(2) For purposes of this subdivision, “controlled group of
corporations” means a controlled group of corporations as defined
in Section 1563(a) of the Internal Revenue Code, except that:

(A) “More than 50 percent” shall be substituted for “at least 80
percent” each place it appears in Section 1563(a)(1) of the Internal
Revenue Code.

(B) The determination shall be made without regard to
subsections (a)(4) and (e)(3)(C) of Section 1563 of the Internal
Revenue Code.

(3) Rules similar to the rules provided in Sections 46(e) and
46(h) of the Internal Revenue Code, as in effect on November 4,
1990, shall apply to both of the following:

(A) An organization to which Section 593 of the Internal
Revenue Code applies.

(B) A regulated investment company or a real estate investment
trust subject to taxation under this part.

(i) (1) If the employment of any qualified full-time employee,
with respect to whom qualified wages are taken into account under
subdivision (a), is terminated by the qualified taxpayer at any time
during the first 36 months after commencing employment with
the qualified taxpayer, whether or not consecutive, the tax imposed
by this part for the taxable year in which that employment is
terminated shall be increased by an amount equal to the credit
allowed under subdivision (a) for that taxable year and all prior
taxable years attributable to qualified wages paid or incurred with
respect to that employee.

(2) Paragraph (1) does not apply to any of the following:

(A) A termination of employment of a qualified full-time
employee who voluntarily leaves the employment of the qualified
taxpayer.

(B) A termination of employment of a qualified full-time
employee who, before the close of the period referred to in
paragraph (1), becomes disabled and unable to perform the services
of that employment, unless that disability is removed before the
close of that period and the qualified taxpayer fails to offer
reemployment to that employee.

(C) A termination of employment of a qualified full-time
employee, if it is determined that the termination was due to the
misconduct, as defined in Sections 1256-30 to 1256-43, inclusive,
of Title 22 of the California Code of Regulations, of that employee.

(D) A termination of employment of a qualified full-time
employee due to a substantial reduction in the trade or business
operations of the qualified taxpayer, including reductions due to
seasonal employment.

(E) A termination of employment of a qualified full-time
employee, if that employee is replaced by other qualified full-time
employees so as to create a net increase in both the number of
employees and the hours of employment.

(F) A termination of employment of a qualified full-time
employee, when that employment is considered seasonal
employment and the qualified employee is rehired on a seasonal
basis.

(3) For purposes of paragraph (1), the employment relationship
between the qualified taxpayer and a qualified full-time employee
shall not be treated as terminated by reason of a mere change in
the form of conducting the trade or business of the qualified
taxpayer, if the qualified full-time employee continues to be
employed in that trade or business and the qualified taxpayer retains
a substantial interest in that trade or business.

(4) An increase in tax under paragraph (1) shall not be treated
as tax imposed by this part for purposes of determining the amount
of any credit allowable under this part.

(j) In the case where the credit allowed by this section exceeds
the “tax,” the excess may be carried over to reduce the “tax” in
the following year, and the succeeding four years if necessary,
until exhausted.

(k) The Franchise Tax Board may prescribe rules, guidelines,
or procedures necessary or appropriate to carry out the purposes
of this section, including any guidelines regarding the allocation
of the credit allowed under this section. Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code shall not apply to any rule, guideline, or
procedure prescribed by the Franchise Tax Board pursuant to this
section.

(l) (1) Upon the effective date of this section, the Department
of Finance shall estimate the total dollar amount of credits that
will be claimed under this section with respect to each fiscal year
from the 2013-14 fiscal year to the 2020-21 fiscal year, inclusive.

(2) The Franchise Tax Board shall annually provide to the Joint
Legislative Budget Committee, by no later than March 1, a report
of the total dollar amount of the credits claimed under this section
with respect to the relevant fiscal year. The report shall compare
the total dollar amount of credits claimed under this section with
respect to that fiscal year with the department’s estimate with
respect to that same fiscal year. If the total dollar amount of credits
claimed for the fiscal year is less than the estimate for that fiscal
year, the report shall identify options for increasing annual claims
of the credit so as to meet estimated amounts.

(m) (1) This section shall remain in effect only until December
1, 2024, and as of that date is repealed.

(2) Notwithstanding paragraph (1) of subdivision (a), this section
shall continue to be operative for taxable years beginning on or
after January 1, 2021, but only with respect to qualified full-time
employees who commenced employment with a qualified taxpayer
in a designated census tract or economic development area in a
taxable year beginning before January 1, 2021.

(3) This section shall remain operative for any qualified taxpayer
with respect to any qualified full-time employee after the
designated census tract is no longer designated or an economic
development area ceases to be an economic development area, as
defined in this section, for the remaining period, if any, of the
60-month period after the original date of hiring of an otherwise
qualified full-time employee and any wages paid or incurred with
respect to those qualified full-time employees after the designated
census tract is no longer designated or an economic development
area ceases to be an economic development area, as defined in this
section, shall be treated as qualified wages under this section,
provided the employee satisfies any other requirements of
paragraphs (10) and (12) of subdivision (b), as if the designated
census tract was still designated and binding or the economic
development area was still in existence.

begin delete SEC. 482. end delete
begin insert SEC. 489. end insert   

Section 23634 of the Revenue and Taxation Code
is amended to read:

23634.  

(a) For each taxable year beginning on or after January
1, 1998, there shall be allowed a credit against the “tax” (as defined
by Section 23036) to a qualified taxpayer who employs a qualified
employee in a targeted tax area during the taxable year. The credit
shall be equal to the sum of each of the following:

(1) Fifty percent of qualified wages in the first year of
employment.

(2) Forty percent of qualified wages in the second year of
employment.

(3) Thirty percent of qualified wages in the third year of
employment.

(4) Twenty percent of qualified wages in the fourth year of
employment.

(5) Ten percent of qualified wages in the fifth year of
employment.

(b) For purposes of this section:

(1) “Qualified wages” means:

(A) That portion of wages paid or incurred by the qualified
taxpayer during the taxable year to qualified employees that does
not exceed 150 percent of the minimum wage.

(B) Wages received during the 60-month period beginning with
the first day the employee commences employment with the
qualified taxpayer. Reemployment in connection with any increase,
including a regularly occurring seasonal increase, in the trade or
business operations of the qualified taxpayer does not constitute
commencement of employment for purposes of this section.

(C) Qualified wages do not include any wages paid or incurred
by the qualified taxpayer on or after the targeted tax area expiration
date. However, wages paid or incurred with respect to qualified
employees who are employed by the qualified taxpayer within the
targeted tax area within the 60-month period prior to the targeted
tax area expiration date shall continue to qualify for the credit
under this section after the targeted tax area expiration date, in
accordance with all provisions of this section applied as if the
targeted tax area designation were still in existence and binding.

(2) “Minimum wage” means the wage established by the
Industrial Welfare Commission as provided for in Chapter 1
(commencing with Section 1171) of Part 4 of Division 2 of the
Labor Code.

(3) “Targeted tax area expiration date” means the date the
targeted tax area designation expires, is revoked, is no longer
binding, becomes inoperative, or is repealed.

(4) (A) “Qualified employee” means an individual who meets
all of the following requirements:

(i) At least 90 percent of his or her services for the qualified
taxpayer during the taxable year are directly related to the conduct
of the qualified taxpayer’s trade or business located in a targeted
tax area.

(ii) Performs at least 50 percent of his or her services for the
qualified taxpayer during the taxable year in a targeted tax area.

(iii) Is hired by the qualified taxpayer after the date of original
designation of the area in which services were performed as a
targeted tax area.

(iv) Is any of the following:

(I) Immediately preceding the qualified employee’s
commencement of employment with the qualified taxpayer, was
a person eligible for services under the federal Job Training
Partnership Act (29 U.S.C. Sec. 1501 et seq.), or its successor,
who is receiving, or is eligible to receive, subsidized employment,
training, or services funded by the federal Job Training Partnership
Act, or its successor.

(II) Immediately preceding the qualified employee’s
commencement of employment with the qualified taxpayer, was
a person eligible to be a voluntary or mandatory registrant under
the Greater Avenues for Independence Act of 1985 (GAIN)
provided for pursuant to Article 3.2 (commencing with Section
11320) of Chapter 2 of Part 3 of Division 9 of the Welfare and
Institutions Code, or its successor.

(III) Immediately preceding the qualified employee’s
commencement of employment with the qualified taxpayer, was
an economically disadvantaged individual 14 years of age or older.

(IV) Immediately preceding the qualified employee’s
commencement of employment with the qualified taxpayer, was
a dislocated worker who meets any of the following:

(ia) Has been terminated or laid off or who has received a notice
of termination or layoff from employment, is eligible for or has
exhausted entitlement to unemployment insurance benefits, and
is unlikely to return to his or her previous industry or occupation.

(ib) Has been terminated or has received a notice of termination
of employment as a result of any permanent closure or any
substantial layoff at a plant, facility, or enterprise, including an
individual who has not received written notification but whose
employer has made a public announcement of the closure or layoff.

(ic) Is long-term unemployed and has limited opportunities for
employment or reemployment in the same or a similar occupation
in the area in which the individual resides, including an individual
55 years of age or older who may have substantial barriers to
employment by reason of age.

(id) Was self-employed (including farmers and ranchers) and
is unemployed as a result of general economic conditions in the
community in which he or she resides or because of natural
disasters.

(ie) Was a civilian employee of the Department of Defense
employed at a military installation being closed or realigned under
the Defense Base Closure and Realignment Act of 1990.

(if) Was an active member of the Armed Forces or National
Guard as of September 30, 1990, and was either involuntarily
separated or separated pursuant to a special benefits program.

(ig) Is a seasonal or migrant worker who experiences chronic
seasonal unemployment and underemployment in the agriculture
industry, aggravated by continual advancements in technology and
mechanization.

(ih) Has been terminated or laid off, or has received a notice of
termination or layoff, as a consequence of compliance with the
Clean Air Act.

(V) Immediately preceding the qualified employee’s
commencement of employment with the qualified taxpayer, was
a disabled individual who is eligible for or enrolled in, or has
completed a state rehabilitation plan or is a service-connected
disabled veteran, veteran of the Vietnam era, or veteran who is
recently separated from military service.

(VI) Immediately preceding the qualified employee’s
commencement of employment with the qualified taxpayer, was
an ex-offender. An individual shall be treated as convicted if he
or she was placed on probation by a state court without a finding
of guilt.

(VII) Immediately preceding the qualified employee’s
commencement of employment with the qualified taxpayer, was
a person eligible for or a recipient of any of the following:

(ia) Federal Supplemental Security Income benefits.

(ib) Aid to Families with Dependent Children.

(ic) CalFresh benefits.

(id) State and local general assistance.

(VIII) Immediately preceding the qualified employee’s
commencement of employment with the qualified taxpayer, was
a member of a federally recognized Indian tribe, band, or other
group of Native American descent.

(IX) Immediately preceding the qualified employee’s
commencement of employment with the qualified taxpayer, was
a resident of a targeted tax area.

(X) Immediately preceding the qualified employee’s
commencement of employment with the taxpayer, was a member
of a targeted group, as defined in Section 51(d) of the Internal
Revenue Code, or its successor.

(B) Priority for employment shall be provided to an individual
who is enrolled in a qualified program under the federal Job
Training Partnership Act or the Greater Avenues for Independence
Act of 1985 or who is eligible as a member of a targeted group
under the Work Opportunity Tax Credit (Section 51 of the Internal
Revenue Code), or its successor.

(5) (A) “Qualified taxpayer” means a person or entity that meets
both of the following:

(i) Is engaged in a trade or business within a targeted tax area
designated pursuant to Chapter 12.93 (commencing with Section
7097) of Division 7 of Title 1 of the Government Code.

(ii) Is engaged in those lines of business described in Codes
2000 to 2099, inclusive; 2200 to 3999, inclusive; 4200 to 4299,
inclusive; 4500 to 4599, inclusive; and 4700 to 5199, inclusive,
of the Standard Industrial Classification (SIC) Manual published
by the United States Office of Management and Budget, 1987
edition.

(B) In the case of any passthrough entity, the determination of
whether a taxpayer is a qualified taxpayer under this section shall
be made at the entity level and any credit under this section or
Section 17053.34 shall be allowed to the passthrough entity and
passed through to the partners or shareholders in accordance with
applicable provisions of this part or Part 10 (commencing with
Section 17001). For purposes of this subparagraph, the term
“passthrough entity” means any partnership or S corporation.

(6) “Seasonal employment” means employment by a qualified
taxpayer that has regular and predictable substantial reductions in
trade or business operations.

(c) If the qualified taxpayer is allowed a credit for qualified
wages pursuant to this section, only one credit shall be allowed to
the taxpayer under this part with respect to those qualified wages.

(d) The qualified taxpayer shall do both of the following:

(1) Obtain from the Employment Development Department, as
permitted by federal law, the local county or city Job Training
Partnership Act administrative entity, the local county GAIN office
or social services agency, or the local government administering
the targeted tax area, a certification that provides that a qualified
employee meets the eligibility requirements specified in clause
(iv) of subparagraph (A) of paragraph (4) of subdivision (b). The
Employment Development Department may provide preliminary
screening and referral to a certifying agency. The Department of
Housing and Community Development shall develop regulations
for the issuance of certificates pursuant to subdivision (g) of
Section 7097 of the Government Code, and shall develop forms
for this purpose.

(2) Retain a copy of the certification and provide it upon request
to the Franchise Tax Board.

(e) (1) For purposes of this section:

(A) All employees of all corporations that are members of the
same controlled group of corporations shall be treated as employed
by a single taxpayer.

(B) The credit, if any, allowable by this section to each member
shall be determined by reference to its proportionate share of the
expense of the qualified wages giving rise to the credit, and shall
be allocated in that manner.

(C) For purposes of this subdivision, “controlled group of
corporations” means “controlled group of corporations” as defined
in Section 1563(a) of the Internal Revenue Code, except that:

(i) “More than 50 percent” shall be substituted for “at least 80
percent” each place it appears in Section 1563(a)(1) of the Internal
Revenue Code.

(ii) The determination shall be made without regard to
subsections (a)(4) and (e)(3)(C) of Section 1563 of the Internal
Revenue Code.

(2) If an employer acquires the major portion of a trade or
business of another employer (hereinafter in this paragraph referred
to as the “predecessor”) or the major portion of a separate unit of
a trade or business of a predecessor, then, for purposes of applying
this section (other than subdivision (f)) for any calendar year ending
after that acquisition, the employment relationship between a
qualified employee and an employer shall not be treated as
terminated if the employee continues to be employed in that trade
or business.

(f) (1) (A) If the employment, other than seasonal employment,
of any qualified employee with respect to whom qualified wages
are taken into account under subdivision (a) is terminated by the
qualified taxpayer at any time during the first 270 days of that
employment (whether or not consecutive) or before the close of
the 270th calendar day after the day in which that employee
completes 90 days of employment with the qualified taxpayer, the
tax imposed by this part for the taxable year in which that
employment is terminated shall be increased by an amount equal
to the credit allowed under subdivision (a) for that taxable year
and all prior taxable years attributable to qualified wages paid or
incurred with respect to that employee.

(B) If the seasonal employment of any qualified employee, with
respect to whom qualified wages are taken into account under
subdivision (a) is not continued by the qualified taxpayer for a
period of 270 days of employment during the 60-month period
beginning with the day the qualified employee commences seasonal
employment with the qualified taxpayer, the tax imposed by this
part, for the taxable year that includes the 60th month following
the month in which the qualified employee commences seasonal
employment with the qualified taxpayer, shall be increased by an
amount equal to the credit allowed under subdivision (a) for that
taxable year and all prior taxable years attributable to qualified
wages paid or incurred with respect to that qualified employee.

(2) (A) Subparagraph (A) of paragraph (1) does not apply to
any of the following:

(i) A termination of employment of a qualified employee who
voluntarily leaves the employment of the qualified taxpayer.

(ii) A termination of employment of a qualified employee who,
before the close of the period referred to in subparagraph (A) of
paragraph (1), becomes disabled and unable to perform the services
of that employment, unless that disability is removed before the
close of that period and the qualified taxpayer fails to offer
reemployment to that employee.

(iii) A termination of employment of a qualified employee, if
it is determined that the termination was due to the misconduct (as
defined in Sections 1256-30 to 1256-43, inclusive, of Title 22 of
the California Code of Regulations) of that employee.

(iv) A termination of employment of a qualified employee due
to a substantial reduction in the trade or business operations of the
taxpayer.

(v) A termination of employment of a qualified employee, if
that employee is replaced by other qualified employees so as to
create a net increase in both the number of employees and the
hours of employment.

(B) Subparagraph (B) of paragraph (1) does not apply to any
of the following:

(i) A failure to continue the seasonal employment of a qualified
employee who voluntarily fails to return to the seasonal
employment of the qualified taxpayer.

(ii) A failure to continue the seasonal employment of a qualified
employee who, before the close of the period referred to in
subparagraph (B) of paragraph (1), becomes disabled and unable
to perform the services of that seasonal employment, unless that
disability is removed before the close of that period and the
qualified taxpayer fails to offer seasonal employment to that
qualified employee.

(iii) A failure to continue the seasonal employment of a qualified
employee, if it is determined that the failure to continue the
seasonal employment was due to the misconduct (as defined in
Sections 1256-30 to 1256-43, inclusive, of Title 22 of the California
Code of Regulations) of that qualified employee.

(iv) A failure to continue seasonal employment of a qualified
employee due to a substantial reduction in the regular seasonal
trade or business operations of the qualified taxpayer.

(v) A failure to continue the seasonal employment of a qualified
employee, if that qualified employee is replaced by other qualified
employees so as to create a net increase in both the number of
seasonal employees and the hours of seasonal employment.

(C) For purposes of paragraph (1), the employment relationship
between the qualified taxpayer and a qualified employee shall not
be treated as terminated by either of the following:

(i) By a transaction to which Section 381(a) of the Internal
Revenue Code applies, if the qualified employee continues to be
employed by the acquiring corporation.

(ii) By reason of a mere change in the form of conducting the
trade or business of the qualified taxpayer, if the qualified
employee continues to be employed in that trade or business and
the qualified taxpayer retains a substantial interest in that trade or
business.

(3) An increase in tax under paragraph (1) shall not be treated
as tax imposed by this part for purposes of determining the amount
of any credit allowable under this part.

(g) Rules similar to the rules provided in Sections 46(e) and (h)
of the Internal Revenue Code apply to both of the following:

(1) An organization to which Section 593 of the Internal
Revenue Code applies.

(2) A regulated investment company or a real estate investment
trust subject to taxation under this part.

(h) For purposes of this section, “targeted tax area” means an
area designated pursuant to Chapter 12.93 (commencing with
Section 7097) of Division 7 of Title 1 of the Government Code.

(i) In the case in which the credit otherwise allowed under this
section exceeds the “tax” for the taxable year, that portion of the
credit that exceeds the “tax” may be carried over and added to the
credit, if any, in the succeeding 10 taxable years, if necessary, until
the credit is exhausted. The credit shall be applied first to the
earliest taxable years possible.

(j) (1) The amount of the credit otherwise allowed under this
section and Section 23633, including any credit carryover from
prior years, that may reduce the “tax” for the taxable year shall
not exceed the amount of tax that would be imposed on the
qualified taxpayer’s business income attributable to the targeted
tax area determined as if that attributable income represented all
of the income of the qualified taxpayer subject to tax under this
part.

(2) Attributable income shall be that portion of the taxpayer’s
California source business income that is apportioned to the
targeted tax area. For that purpose, the taxpayer’s business income
attributable to sources in this state first shall be determined in
accordance with Chapter 17 (commencing with Section 25101).
That business income shall be further apportioned to the targeted
tax area in accordance with Article 2 (commencing with Section
25120) of Chapter 17, modified for purposes of this section in
accordance with paragraph (3).

(3) Business income shall be apportioned to the targeted tax
area by multiplying the total California business income of the
taxpayer by a fraction, the numerator of which is the property
factor plus the payroll factor, and the denominator of which is two.
For purposes of this paragraph:

(A) The property factor is a fraction, the numerator of which is
the average value of the taxpayer’s real and tangible personal
property owned or rented and used in the targeted tax area during
the taxable year, and the denominator of which is the average value
of all the taxpayer’s real and tangible personal property owned or
rented and used in this state during the taxable year.

(B) The payroll factor is a fraction, the numerator of which is
the total amount paid by the taxpayer in the targeted tax area during
the taxable year for compensation, and the denominator of which
is the total compensation paid by the taxpayer in this state during
the taxable year.

(4) The portion of any credit remaining, if any, after application
of this subdivision, shall be carried over to succeeding taxable
years, if necessary, until the credit is exhausted, as if it were an
amount exceeding the “tax” for the taxable year, as provided in
subdivision (i). However, the portion of any credit remaining for
carryover to taxable years beginning on or after January 1, 2014,
if any, after application of this subdivision, shall be carried over
only to the succeeding 10 taxable years if necessary, until the credit
is exhausted, as if it were an amount exceeding the “tax” for the
taxable year, as provided in subdivision (i).

(5) In the event that a credit carryover is allowable under
subdivision (h) for any taxable year after the targeted tax area
designation has expired or been revoked, the targeted tax area shall
be deemed to remain in existence for purposes of computing the
limitation specified in this subdivision.

(k) (1) Except as provided in paragraph (2), this section shall
cease to be operative for taxable years beginning on or after January
1, 2014, and shall be repealed on December 1, 2019.

(2) The section shall continue to apply with respect to qualified
employees who are employed by the qualified taxpayer within the
targeted tax area within the 60-month period immediately preceding
January 1, 2014, and qualified wages paid or incurred with respect
to those qualified employees shall continue to qualify for the credit
under this section for taxable years beginning on or after January
1, 2014, in accordance with this section, as amended by the act
adding this subdivision.

begin delete SEC. 483. end delete
begin insert SEC. 490. end insert   

Section 23732 of the Revenue and Taxation Code
is amended to read:

23732.  

Section 512 of the Internal Revenue Code, relating to
unrelated business taxable income, applies, except as otherwise
provided.

(a) Section 512(a)(2) of the Internal Revenue Code, relating to
special rule for foreign organizations, does not apply.

(b) Section 512(a)(3) of the Internal Revenue Code, relating to
special rules applicable to organizations described in paragraph
(7), (9), (17), or (20) of Section 501(c), shall be modified as
follows:

(1) The reference to Section 501(c)(7) of the Internal Revenue
Code shall be modified to refer to Section 23701g.

(2) The reference to Section 501(c)(9) of the Internal Revenue
Code shall be modified to refer to Section 23701i.

(3) The reference to Section 501(c)(17) of the Internal Revenue
Code shall be modified to refer to Section 23701n.

(4) The reference to Section 501(c)(20) of the Internal Revenue
Code shall be modified to refer to Section 23701q.

(c) Section 512(d) of the Internal Revenue Code, relating to
treatment of dues of agricultural or horticultural organizations,
shall be modified by substituting “Section 23701a” for “Section
501(c)(5)” of the Internal Revenue Code.

begin delete SEC. 484. end delete
begin insert SEC. 491. end insert   

Section 24347.6 of the Revenue and Taxation Code
is amended to read:

24347.6.  

(a) An excess disaster loss, as defined in subdivision
(c), shall be carried to other taxable years as provided in
subdivision (b), with respect to losses sustained in the County of
Mendocino as a result of the tsunami that occurred in March 2011.

(b) (1) In the case of any loss allowed under Section 165 of the
Internal Revenue Code, relating to losses, any excess disaster loss
shall be carried forward to each of the five taxable years following
the taxable year for which the loss is claimed. However, if there
is any excess disaster loss remaining after the five-year period,
then the applicable percentage, as set forth in paragraph (1) of
subdivision (b) of Section 24416, of that excess disaster loss shall
be carried forward to each of the next 10 taxable years.

(2) The entire amount of any excess disaster loss as defined in
subdivision (c) shall be carried to the earliest of the taxable years
to which, by reason of subdivision (b), the loss may be carried.
The portion of the loss which shall be carried to each of the other
taxable years shall be the excess, if any, of the amount of excess
disaster loss over the sum of the net income for each of the prior
taxable years to which that excess disaster loss is carried.

(c) “Excess disaster loss” means a disaster loss computed
pursuant to Section 165 of the Internal Revenue Code, which
exceeds the net income of the year of loss or, if the election under
Section 165(i) of the Internal Revenue Code is made, the net
income of the year preceding the loss.

(d) This section and Section 165(i) of the Internal Revenue Code
apply to any of the losses listed in subdivision (a) sustained in any
county or city in this state which was proclaimed by the Governor
to be in a state of disaster.

(e) A corporation subject to Section 25101 or 25101.15 that has
disaster losses pursuant to this section shall determine the excess
disaster loss to be carried to other taxable years under the principles
specified in Section 25108 relating to net operating losses.

(f) Losses allowable under this section shall not be taken into
account in computing a net operating loss deduction under Section
172 of the Internal Revenue Code.

(g) For losses described in subdivision (a), the election under
Section 165(i) of the Internal Revenue Code may be made on a
return or amended return filed on or before the due date of the
return (determined with regard to extension) for the taxable year
in which the disaster occurred.

begin delete SEC. 485. end delete
begin insert SEC. 492. end insert   

Section 24347.10 of the Revenue and Taxation Code
is amended to read:

24347.10.  

(a) An excess disaster loss, as defined in subdivision
(c), shall be carried to other taxable years as provided in
subdivision (b), with respect to losses sustained in the County of
San Mateo as a result of the explosion and fire that occurred in
September 2010.

(b) (1) In the case of any loss allowed under Section 165 of the
Internal Revenue Code, relating to losses, any excess disaster loss
shall be carried forward to each of the five taxable years following
the taxable year for which the loss is claimed. However, if there
is any excess disaster loss remaining after the five-year period,
then the applicable percentage, as set forth in paragraph (1) of
subdivision (b) of Section 24416, of that excess disaster loss shall
be carried forward to each of the next 10 taxable years.

(2) The entire amount of any excess disaster loss as defined in
subdivision (c) shall be carried to the earliest of the taxable years
to which, by reason of subdivision (b), the loss may be carried.
The portion of the loss which shall be carried to each of the other
taxable years shall be the excess, if any, of the amount of excess
disaster loss over the sum of the net income for each of the prior
taxable years to which that excess disaster loss is carried.

(c) “Excess disaster loss” means a disaster loss computed
pursuant to Section 165 of the Internal Revenue Code, which
exceeds the net income of the year of loss or, if the election under
Section 165(i) of the Internal Revenue Code is made, the net
income of the year preceding the loss.

(d) This section and Section 165(i) of the Internal Revenue Code
apply to any of the losses listed in subdivision (a) sustained in any
county or city in this state which was proclaimed by the Governor
to be in a state of disaster.

(e) A corporation subject to Section 25101 or 25101.15 that has
disaster losses pursuant to this section shall determine the excess
disaster loss to be carried to other taxable years under the principles
specified in Section 25108 relating to net operating losses.

(f) Losses allowable under this section shall not be taken into
account in computing a net operating loss deduction under Section
172 of the Internal Revenue Code.

(g) For losses described in subdivision (a), the election under
Section 165(i) of the Internal Revenue Code may be made on a
return or amended return filed on or before the due date of the
return (determined with regard to extension) for the taxable year
in which the disaster occurred.

begin delete SEC. 486. end delete
begin insert SEC. 493. end insert   

Section 24355.4 of the Revenue and Taxation Code,
as added by Chapter 691 of the Statutes of 2005, is amended and
renumbered to read:

24355.5.  

For purposes of computing the depreciation deduction
pursuant to Section 24349, the useful life of any Alaska natural
gas pipeline, as defined in Section 168(i)(16) of the Internal
Revenue Code, shall be seven years.

begin delete SEC. 487. end delete
begin insert SEC. 494. end insert   

Section 24416.20 of the Revenue and Taxation Code
is amended and renumbered to read:

24416.  

Except as provided in Sections 24416.1, 24416.2,
24416.4, 24416.5, 24416.6, and 24416.7, a net operating loss
deduction shall be allowed in computing net income under Section
24341 and shall be determined in accordance with Section 172 of
the Internal Revenue Code, except as otherwise provided.

(a) (1) Net operating losses attributable to taxable years
beginning before January 1, 1987, shall not be allowed.

(2) A net operating loss shall not be carried forward to any
taxable year beginning before January 1, 1987.

(b) (1) Except as provided in paragraphs (2) and (3), the
provisions of Section 172(b)(2) of the Internal Revenue Code,
relating to amount of carrybacks and carryovers, shall be modified
so that the applicable percentage of the entire amount of the net
operating loss for any taxable year shall be eligible for carryover
to any subsequent taxable year. For purposes of this subdivision,
the applicable percentage shall be:

(A) Fifty percent for any taxable year beginning before January
1, 2000.

(B) Fifty-five percent for any taxable year beginning on or after
January 1, 2000, and before January 1, 2002.

(C) Sixty percent for any taxable year beginning on or after
January 1, 2002, and before January 1, 2004.

(D) One hundred percent for any taxable year beginning on or
after January 1, 2004.

(2) In the case of a taxpayer who has a net operating loss in any
taxable year beginning on or after January 1, 1994, and who
operates a new business during that taxable year, each of the
following shall apply to each loss incurred during the first three
taxable years of operating the new business:

(A) If the net operating loss is equal to or less than the net loss
from the new business, 100 percent of the net operating loss shall
be carried forward as provided in subdivision (e).

(B) If the net operating loss is greater than the net loss from the
new business, the net operating loss shall be carried over as
follows:

(i) With respect to an amount equal to the net loss from the new
business, 100 percent of that amount shall be carried forward as
provided in subdivision (e).

(ii) With respect to the portion of the net operating loss that
exceeds the net loss from the new business, the applicable
percentage of that amount shall be carried forward as provided in
subdivision (d).

(C) For purposes of Section 172(b)(2) of the Internal Revenue
Code, the amount described in clause (ii) of subparagraph (B) shall
be absorbed before the amount described in clause (i) of
subparagraph (B).

(3) In the case of a taxpayer who has a net operating loss in any
taxable year beginning on or after January 1, 1994, and who
operates an eligible small business during that taxable year, each
of the following apply:

(A) If the net operating loss is equal to or less than the net loss
from the eligible small business, 100 percent of the net operating
loss shall be carried forward to the taxable years specified in
paragraph (1) of subdivision (e).

(B) If the net operating loss is greater than the net loss from the
eligible small business, the net operating loss shall be carried over
as follows:

(i) With respect to an amount equal to the net loss from the
eligible small business, 100 percent of that amount shall be carried
forward as provided in subdivision (e).

(ii) With respect to that portion of the net operating loss that
exceeds the net loss from the eligible small business, the applicable
percentage of that amount shall be carried forward as provided in
subdivision (e).

(C) For purposes of Section 172(b)(2) of the Internal Revenue
Code, the amount described in clause (ii) of subparagraph (B) shall
be absorbed before the amount described in clause (i) of
subparagraph (B).

(4) In the case of a taxpayer who has a net operating loss in a
taxable year beginning on or after January 1, 1994, and who
operates a business that qualifies as both a new business and an
eligible small business under this section, that business shall be
treated as a new business for the first three taxable years of the
new business.

(5) In the case of a taxpayer who has a net operating loss in a
taxable year beginning on or after January 1, 1994, and who
operates more than one business, and more than one of those
businesses qualifies as either a new business or an eligible small
business under this section, paragraph (2) shall be applied first,
except that if there is any remaining portion of the net operating
loss after application of clause (i) of subparagraph (B) of paragraph
(2), paragraph (3) shall be applied to the remaining portion of the
net operating loss as though that remaining portion of the net
operating loss constituted the entire net operating loss.

(6) For purposes of this section, “net loss” means the amount
of net loss after application of Sections 465 and 469 of the Internal
Revenue Code.

(c) For any taxable year in which the taxpayer has in effect a
water’s-edge election under Section 25110, the deduction of a net
operating loss carryover shall be denied to the extent that the net
operating loss carryover was determined by taking into account
the income and factors of an affiliated corporation in a combined
report whose income and apportionment factors would not have
been taken into account if a water’s-edge election under Section
25110 had been in effect for the taxable year in which the loss was
incurred.

(d) Section 172(b)(1) of the Internal Revenue Code, relating to
years to which the loss may be carried, is modified as follows:

(1) Net operating loss carrybacks shall not be allowed for any
net operating losses attributable to taxable years beginning before
January 1, 2013.

(2) A net operating loss attributable to taxable years beginning
on or after January 1, 2013, shall be a net operating loss carryback
to each of the two taxable years preceding the taxable year of the
loss in lieu of the number of years provided therein.

(A) For a net operating loss attributable to a taxable year
beginning on or after January 1, 2013, and before January 1, 2014,
the amount of carryback to any taxable year shall not exceed 50
percent of the net operating loss.

(B) For a net operating loss attributable to a taxable year
beginning on or after January 1, 2014, and before January 1, 2015,
the amount of carryback to any taxable year shall not exceed 75
percent of the net operating loss.

(C) For a net operating loss attributable to a taxable year
beginning on or after January 1, 2015, the amount of carryback to
any taxable year shall not exceed 100 percent of the net operating
loss.

(3) Notwithstanding paragraph (2), Section 172(b)(1)(B) of the
Internal Revenue Code, relating to special rules for REITs, and
Section 172(b)(1)(E) of the Internal Revenue Code, relating to
excess interest loss, and Section 172(h) of the Internal Revenue
Code, relating to corporate equity reduction interest losses, shall
apply as provided.

(4) A net operating loss carryback shall not be carried back to
any taxable year beginning before January 1, 2011.

(e) (1) (A) For a net operating loss for any taxable year
beginning on or after January 1, 1987, and before January 1, 2000,
Section 172(b)(1)(A)(ii) of the Internal Revenue Code is modified
to substitute “five taxable years” in lieu of “20 years” except as
otherwise provided in paragraphs (2), (3), and (4).

(B) For a net operating loss for any income year beginning on
or after January 1, 2000, and before January 1, 2008, Section
172(b)(1)(A)(ii) of the Internal Revenue Code is modified to
substitute “10 taxable years” in lieu of “20 taxable years.”

(2) For any income year beginning before January 1, 2000, in
the case of a “new business,” the “five taxable years” referred to
in paragraph (1) shall be modified to read as follows:

(A) “Eight taxable years” for a net operating loss attributable
to the first taxable year of that new business.

(B) “Seven taxable years” for a net operating loss attributable
to the second taxable year of that new business.

(C) “Six taxable years” for a net operating loss attributable to
the third taxable year of that new business.

(3) For any carryover of a net operating loss for which a
deduction is denied by Section 24416.3, the carryover period
specified in this subdivision shall be extended as follows:

(A) By one year for a net operating loss attributable to taxable
years beginning in 1991.

(B) By two years for a net operating loss attributable to taxable
years beginning prior to January 1, 1991.

(4) The net operating loss attributable to taxable years beginning
on or after January 1, 1987, and before January 1, 1994, shall be
a net operating loss carryover to each of the 10 taxable years
following the year of the loss if it is incurred by a corporation that
was either of the following:

(A) Under the jurisdiction of the court in a Title 11 or similar
case at any time prior to January 1, 1994. The loss carryover
provided in the preceding sentence shall not apply to any loss
incurred in an income year after the taxable year during which the
corporation is no longer under the jurisdiction of the court in a
Title 11 or similar case.

(B) In receipt of assets acquired in a transaction that qualifies
as a tax-free reorganization under Section 368(a)(1)(G) of the
Internal Revenue Code.

(f) For purposes of this section:

(1) “Eligible small business” means any trade or business that
has gross receipts, less returns and allowances, of less than one
million dollars ($1,000,000) during the income year.

(2) Except as provided in subdivision (g), “new business” means
any trade or business activity that is first commenced in this state
on or after January 1, 1994.

(3) “Title 11 or similar case” shall have the same meaning as
in Section 368(a)(3) of the Internal Revenue Code.

(4) In the case of any trade or business activity conducted by a
partnership or an “S” corporation, paragraphs (1) and (2) shall be
applied to the partnership or “S” corporation.

(g) For purposes of this section, in determining whether a trade
or business activity qualifies as a new business under paragraph
(2) of subdivision (e), the following rules shall apply:

(1) In any case where a taxpayer purchases or otherwise acquires
all or any portion of the assets of an existing trade or business
(irrespective of the form of entity) that is doing business in this
state (within the meaning of Section 23101), the trade or business
thereafter conducted by the taxpayer (or any related person) shall
not be treated as a new business if the aggregate fair market value
of the acquired assets (including real, personal, tangible, and
intangible property) used by the taxpayer (or any related person)
in the conduct of its trade or business exceeds 20 percent of the
aggregate fair market value of the total assets of the trade or
business being conducted by the taxpayer (or any related person).
For purposes of this paragraph only, the following rules shall apply:

(A) The determination of the relative fair market values of the
acquired assets and the total assets shall be made as of the last day
of the first taxable year in which the taxpayer (or any related
person) first uses any of the acquired trade or business assets in
its business activity.

(B) Any acquired assets that constituted property described in
Section 1221(a)(1) of the Internal Revenue Code in the hands of
the transferor shall not be treated as assets acquired from an
existing trade or business, unless those assets also constitute
property described in Section 1221(a)(1) of the Internal Revenue
Code in the hands of the acquiring taxpayer (or related person).

(2) In any case where a taxpayer (or any related person) is
engaged in one or more trade or business activities in this state, or
has been engaged in one or more trade or business activities in this
state within the preceding 36 months (“prior trade or business
activity”), and thereafter commences an additional trade or business
activity in this state, the additional trade or business activity shall
only be treated as a new business if the additional trade or business
activity is classified under a different division of the Standard
Industrial Classification (SIC) Manual published by the United
States Office of Management and Budget, 1987 edition, than are
any of the taxpayer’s (or any related person’s) current or prior
trade or business activities.

(3) In a case in which a taxpayer, including all related persons,
is engaged in trade or business activities wholly outside of this
state and the taxpayer first commences doing business in this state
(within the meaning of Section 23101) after December 31, 1993
(other than by purchase or other acquisition described in paragraph
(1)), the trade or business activity shall be treated as a new business
under paragraph (2) of subdivision (e).

(4) In a case in which the legal form under which a trade or
business activity is being conducted is changed, the change in form
shall be disregarded and the determination of whether the trade or
business activity is a new business shall be made by treating the
taxpayer as having purchased or otherwise acquired all or any
portion of the assets of an existing trade or business under the rules
of paragraph (1).

(5) “Related person” shall mean any person that is related to
the taxpayer under either Section 267 or 318 of the Internal
Revenue Code.

(6) “Acquire” shall include any transfer, whether or not for
consideration.

(7) (A) For taxable years beginning on or after January 1, 1997,
the term “new business” shall include any taxpayer that is engaged
in biopharmaceutical activities or other biotechnology activities
that are described in Codes 2833 to 2836, inclusive, of the Standard
Industrial Classification (SIC) Manual published by the United
States Office of Management and Budget, 1987 edition, and as
further amended, and that has not received regulatory approval for
any product from the Food and Drug Administration.

(B) For purposes of this paragraph:

(i) “Biopharmaceutical activities” means those activities that
use organisms or materials derived from organisms, and their
cellular, subcellular, or molecular components, in order to provide
pharmaceutical products for human or animal therapeutics and
diagnostics. Biopharmaceutical activities make use of living
organisms to make commercial products, as opposed to
pharmaceutical activities that make use of chemical compounds
to produce commercial products.

(ii) “Other biotechnology activities” means activities consisting
of the application of recombinant DNA technology to produce
commercial products, as well as activities regarding pharmaceutical
delivery systems designed to provide a measure of control over
the rate, duration, and site of pharmaceutical delivery.

(h) For purposes of corporations whose net income is determined
under Chapter 17 (commencing with Section 25101), Section
25108 applies to each of the following:

(1) The amount of net operating loss incurred in any taxable
year that may be carried forward to another taxable year.

(2) The amount of any loss carry forward that may be deducted
in any taxable year.

(i) The provisions of Section 172(b)(1)(D) of the Internal
Revenue Code, relating to bad debt losses of commercial banks,
do not apply.

(j) The Franchise Tax Board may prescribe appropriate
regulations to carry out the purposes of this section, including any
regulations necessary to prevent the avoidance of the purposes of
this section through splitups, shell corporations, partnerships, tiered
ownership structures, or otherwise.

(k) The Franchise Tax Board may reclassify any net operating
loss carryover determined under either paragraph (2) or (3) of
subdivision (b) as a net operating loss carryover under paragraph
(1) of subdivision (b) upon a showing that the reclassification is
necessary to prevent evasion of the purposes of this section.

(l) Except as otherwise provided, the amendments made by
Chapter 107 of the Statutes of 2000 apply to net operating losses
for taxable years beginning on or after January 1, 2000.

begin delete SEC. 488. end delete
begin insert SEC. 495. end insert   

Section 24416.21 of the Revenue and Taxation Code
is amended to read:

24416.21.  

(a) Notwithstanding Sections 24416, 24416.1,
24416.2, 24416.4, 24416.5, 24416.6, and 24416.7 of this code and
Section 172 of the Internal Revenue Code, no net operating loss
deduction shall be allowed for any taxable year beginning on or
after January 1, 2008, and before January 1, 2012.

(b) For any net operating loss or carryover of a net operating
loss for which a deduction is denied by subdivision (a), the
carryover period under Section 172 of the Internal Revenue Code
shall be extended as follows:

(1) By one year, for losses incurred in taxable years beginning
on or after January 1, 2010, and before January 1, 2011.

(2) By two years, for losses incurred in taxable years beginning
on or after January 1, 2009, and before January 1, 2010.

(3) By three years, for losses incurred in taxable years beginning
on or after January 1, 2008, and before January 1, 2009.

(4) By four years, for losses incurred in taxable years beginning
before January 1, 2008.

(c) Notwithstanding subdivision (a), a net operating loss
deduction shall be allowed for carryback of a net operating loss
attributable to a taxable year beginning on or after January 1, 2013.

(d)  The disallowance of any net operating loss deduction for
any taxable year beginning on or after January 1, 2008, and before
January 1, 2010, pursuant to subdivision (a) shall not apply to a
taxpayer with income subject to tax under this part of less than
five hundred thousand dollars ($500,000) for the taxable year.

(e) (1) The disallowance of any net operating loss deduction
for any taxable year beginning on or after January 1, 2010, and
before January 1, 2012, pursuant to subdivision (a) shall not apply
to a taxpayer with preapportioned income of less than three hundred
thousand dollars ($300,000) for the taxable year.

(2) For purposes of this subdivision, “preapportioned income”
means net income after state adjustments, before the application
of the apportionment and allocation provisions of this part.

(3) For taxpayers that are required to be included in a combined
report under Section 25101 or authorized to be included in a
combined report under Section 25101.15, the amount prescribed
in paragraph (1) shall apply to the aggregate amount of
preapportioned income for all members included in a combined
report.

(f) Notwithstanding subdivision (a), this section shall not apply
to a taxpayer that ceased to do business or has a final taxable year
ending prior to August 28, 2008, that sold or transferred
substantially all of its assets resulting in a gain on sale during a
taxable year ending prior to August 28, 2008, for which the gain
could be offset with existing net operating loss deductions and the
sale or transfer occurred pursuant to a plan of reorganization under
Chapter 11 of Title 11 of the United States Code. An amended tax
return claiming net operating loss deductions allowed pursuant to
this subdivision shall be treated as a timely filed original return.

(g) The Legislature finds and declares that the addition of
subdivision (f) to this section by the act adding this subdivision
fulfills a statewide public purpose by providing necessary tax relief
for a taxpayer that ceased to do business or has a final taxable year
ending prior to August 28, 2008, that sold or transferred
substantially all of its assets resulting in a gain or sale during a
taxable year prior to August 28, 2008, for which the gain could be
offset with existing net operating loss deductions and the sale or
transfer occurred pursuant to a plan of reorganization under Chapter
11 of Title 11 of the United States Code, in order to ensure that
these taxpayers are not permanently denied the net operating loss
deduction.

begin delete SEC. 489. end delete
begin insert SEC. 496. end insert   

Section 24661.3 of the Revenue and Taxation Code,
as added by Section 54 of Chapter 34 of the Statutes of 2002, is
repealed.

begin delete SEC. 490. end delete
begin insert SEC. 497. end insert   

Section 24685.5 of the Revenue and Taxation Code,
as added by Section 56 of Chapter 34 of the Statutes of 2002, is
repealed.

begin delete SEC. 491. end delete
begin insert SEC. 498. end insert   

Section 24989 of the Revenue and Taxation Code
is repealed.

begin delete SEC. 492. end delete
begin insert SEC. 499. end insert   

Section 32432 of the Revenue and Taxation Code,
as added by Section 24 of Chapter 929 of the Statutes of 1999, is
amended and renumbered to read:

32432.5.  

(a) Notwithstanding any other provision of this part,
if the board finds that neither the person liable for payment of tax
nor any party related to that person has in any way caused an
erroneous refund for which an action for recovery is provided
under Section 32431, no interest shall be imposed on the amount
of that erroneous refund until 30 days after the date on which the
board mails a notice of determination for repayment of the
erroneous refund to the person. The act of filing a claim for refund
shall not be considered as causing the erroneous refund.

(b) This section shall be operative for any action for recovery
under Section 32431 on or after January 1, 2000.

begin delete SEC. 493. end delete
begin insert SEC. 500. end insert   

Section 40069 of the Revenue and Taxation Code,
as added by Section 18 of Chapter 459 of the Statutes of 2002, is
amended and renumbered to read:

40069.5.  

(a) Any return, declaration, statement, or other
document required to be made under this part that is filed using
electronic media shall be filed and authenticated pursuant to any
method or form the board may prescribe.

(b) Notwithstanding any other law, any return, declaration,
statement, or other document otherwise required to be signed that
is filed by the taxpayer using electronic media in a form as required
by the board shall be deemed to be a signed, valid original
document, including upon reproduction to paper form by the board.

(c) Electronic media includes, but is not limited to, computer
modem, magnetic media, optical disk, facsimile machine, or
telephone.

begin delete SEC. 494. end delete
begin insert SEC. 501. end insert   

Section 45752 of the Revenue and Taxation Code,
as added by Section 41 of Chapter 609 of the Statutes of 1998, is
amended and renumbered to read:

45754.  

In any action brought pursuant to subdivision (a) of
Section 45751, the court may, with the consent of the Attorney
General, order a change in the place of trial.

begin delete SEC. 495. end delete
begin insert SEC. 502. end insert   

Section 55262 of the Revenue and Taxation Code,
as added by Section 76 of Chapter 929 of the Statutes of 1999, is
amended and renumbered to read:

55262.5.  

(a) Notwithstanding any other provision of this part,
if the board finds that neither the person liable for payment of fees
nor any party related to that person has in any way caused an
erroneous refund for which an action for recovery is provided
under Section 55261, no interest shall be imposed on the amount
of that erroneous refund until 30 days after the date on which the
board mails a notice of determination for repayment of the
erroneous refund to the person. The act of filing a claim for refund
shall not be considered as causing the erroneous refund.

(b) This section shall be operative for any action for recovery
under Section 55261 on or after January 1, 2000.

begin delete SEC. 496. end delete
begin insert SEC. 503. end insert   

The heading of Article 6.5 (commencing with
Section 217) of Chapter 1 of Division 1 of the Streets and
Highways Code is repealed.

begin delete SEC. 497. end delete
begin insert SEC. 504. end insert   

Section 2192 of the Streets and Highways Code is
amended to read:

2192.  

(a) The Trade Corridors Improvement Fund, created
pursuant to subdivision (c) of Section 8879.23 of the Government
Code, is hereby continued in existence to receive revenues from
sources other than the Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006. This chapter shall
govern expenditure of those other revenues.

(b) The moneys in the fund from those other sources shall be
available upon appropriation for allocation by the California
Transportation Commission for infrastructure improvements in
this state on federally designated Trade Corridors of National and
Regional Significance, on the Primary Freight Network, and along
other corridors that have a high volume of freight movement, as
determined by the commission. In determining the projects eligible
for funding, the commission shall consult the Transportation
Agency’s state freight plan as described in Section 13978.8 of the
Government Code, the State Air Resources Board’s Sustainable
Freight Strategy adopted by Resolution 14-2, and the trade
infrastructure and goods movement plan submitted to the
commission by the Secretary of Transportation and the Secretary
for Environmental Protection. The commission shall also consult
trade infrastructure and goods movement plans adopted by regional
transportation planning agencies, adopted regional transportation
plans required by state and federal law, and the statewide port
master plan prepared by the California Marine and Intermodal
Transportation System Advisory Council (Cal-MITSAC) pursuant
to Section 1730 of the Harbors and Navigation Code, when
determining eligible projects for funding. Eligible projects for
these funds include, but are not limited to, all of the following:

(1) Highway capacity improvements and operational
improvements to more efficiently accommodate the movement of
freight, particularly for ingress and egress to and from the state’s
land ports of entry and seaports, including navigable inland
waterways used to transport freight between seaports, land ports
of entry, and airports, and to relieve traffic congestion along major
trade or goods movement corridors.

(2) Freight rail system improvements to enhance the ability to
move goods from seaports, land ports of entry, and airports to
warehousing and distribution centers throughout California,
including projects that separate rail lines from highway or local
road traffic, improve freight rail mobility through mountainous
regions, relocate rail switching yards, and other projects that
improve the efficiency and capacity of the rail freight system.

(3) Projects to enhance the capacity and efficiency of ports.

(4) Truck corridor improvements, including dedicated truck
facilities or truck toll facilities.

(5) Border access improvements that enhance goods movement
between California and Mexico and that maximize the state’s
ability to access coordinated border infrastructure funds made
available to the state by federal law.

(6) Surface transportation and connector road improvements to
effectively facilitate the movement of goods, particularly for
ingress and egress to and from the state’s land ports of entry,
airports, and seaports, to relieve traffic congestion along major
trade or goods movement corridors.

(c) (1) The commission shall allocate funds for trade
infrastructure improvements from the fund consistent with Section
8879.52 of the Government Code and the Trade Corridors
Improvement Fund (TCIF) Guidelines adopted by the commission
on November 27, 2007, or as amended by the commission, and in
a manner that (A) addresses the state’s most urgent needs, (B)
balances the demands of various land ports of entry, seaports, and
airports, (C) provides reasonable geographic balance between the
state’s regions, and (D) places emphasis on projects that improve
trade corridor mobility while reducing emissions of diesel
particulate and other pollutant emissions.

(2) In addition, the commission shall also consider the following
factors when allocating these funds:

(A) “Velocity,” which means the speed by which large cargo
would travel from the land port of entry or seaport through the
distribution system.

(B) “Throughput,” which means the volume of cargo that would
move from the land port of entry or seaport through the distribution
system.

(C) “Reliability,” which means a reasonably consistent and
predictable amount of time for cargo to travel from one point to
another on any given day or at any given time in California.

(D) “Congestion reduction,” which means the reduction in
recurrent daily hours of delay to be achieved.

begin delete SEC. 498. end delete
begin insert SEC. 505. end insert   

The heading of Division 6 (commencing with
Section 4000) of the Streets and Highways Code is repealed.

begin delete SEC. 499. end delete
begin insert SEC. 506. end insert   

Section 5132.1 of the Streets and Highways Code,
as amended by Chapter 416 of the Statutes of 1963, is amended
and renumbered to read:

5132.05.  

(a) If the proceedings include any acquisition and
the actual cost of the acquisition as finally determined is less than
the amount included in the assessment as the cost of the acquisition,
the excess may be spent as the legislative body may thereafter
determine, either for the maintenance or repair of the work or
improvement, or the excess shall be refunded or credited in
proportion to the amount of the assessments that were levied for
the acquisition cost, as follows:

(1) If the assessment and all installments thereof and all interest
and penalties due thereon have been paid, the refund shall be
returned in cash to the person who paid the corresponding
assessment or installment, upon furnishing satisfactory evidence
of the payment.

(2) If the assessment or any installment thereof is unpaid, the
credit shall be applied upon the assessment or upon the earliest
unpaid installment of principal and interest.

(b) If the legislative body determines that the excess shall be
used for maintenance or repair, the legislative body shall establish
a separate fund of the excess and shall use it solely for that purpose.

begin delete SEC. 500. end delete
begin insert SEC. 507. end insert   

Section 125.4 of the Unemployment Insurance Code
is amended to read:

125.4.  

“American employer” means any of the following:

(a) An individual who is a resident of the United States.

(b) A partnership, if two-thirds or more of the partners are
residents of the United States.

(c) A trust, if all of the trustees are residents of the United States.

(d) A corporation organized under the laws of the United States
or of any state.

(e) A limited liability company organized under the laws of the
United States or of any state.

(f) An Indian tribe as described by Section 3306(u) of Title 26
of the United States Code.

begin delete SEC. 501. end delete
begin insert SEC. 508. end insert   

Section 135 of the Unemployment Insurance Code
is amended to read:

135.  

(a) “Employing unit” means an individual or type of
organization that has in its employ one or more individuals
performing services for it within this state, and includes but is not
limited to, the following individuals and organizations:

(1) An individual or type of organization or public entity that
elects coverage pursuant to any provision of this division.

(2) A joint venture, partnership, association, trust, estate, joint
stock company, insurance company, corporation whether domestic
or foreign, limited liability company, whether domestic or foreign,
community chest, fund, or foundation.

(3) A public entity. As used in this section, “public entity” means
the State of California (including the Trustees of the California
State University), an instrumentality of this state (including the
Regents of the University of California), a political subdivision of
this state or any of its instrumentalities, a county, city, district
(including the governing board of a school district or community
college district, a county board of education, a county
superintendent of schools, or a personnel commission of a school
district or community college district that has a merit system
pursuant to the Education Code), entities receiving state money to
conduct county fairs and agricultural fairs pursuant to Sections
25905 and 25906 of the Government Code and that perform no
other functions, a public authority, public agency, or public
corporation of this state, an instrumentality of more than one of
the foregoing, and an instrumentality of any of the foregoing and
one or more other states or political subdivisions.

(4) An instrumentality of the United States required to make
payments under this division.

(5) The receiver, trustee in bankruptcy, trustee or successor
thereof, and the legal representative of a deceased person.

(6) An Indian tribe as described by Section 3306(u) of Title 26
of the United States Code.

(b) All individuals performing services within this state for an
employing unit that maintains two or more separate establishments
within this state shall be deemed to be employed by a single
employing unit for all the purposes of this division. This
subdivision does not apply to an Indian tribe (as described by
Section 3306(u) of Title 26 of the United States Code) and the
subdivisions, subsidiaries, or other business enterprises wholly
owned by the Indian tribe if the tribe chooses to treat those
subdivisions, subsidiaries, or other business enterprises as separate
business entities for the purposes of Section 803.

begin delete SEC. 502. end delete
begin insert SEC. 509. end insert   

Section 605 of the Unemployment Insurance Code
is amended to read:

605.  

(a) Except as provided by Section 634.5, “employment”
for the purposes of this part and Parts 3 (commencing with Section
3501) and 4 (commencing with Section 4001) includes all service
performed by an individual (including blind and otherwise disabled
individuals) for any public entity or Indian tribe, if the service is
excluded from “employment” under the Federal Unemployment
Tax Act solely by reason of Section 3306(c)(7) of Title 26 of the
United States Code.

(b) For purposes of this section:

(1) “Public entity” means the State of California (including the
Trustees of the California State University and Colleges, and the
California Industries for the Blind), an instrumentality of this state
(including the Regents of the University of California), a political
subdivision of this state or any of its instrumentalities, a county,
city, district (including the governing board of a school district or
community college district, a county board of education, a county
superintendent of schools, or a personnel commission of a school
district or community college district that has a merit system
pursuant to the Education Code), entities conducting fairs as
identified in Sections 19418 to 19418.3, inclusive, of the Business
and Professions Code, a public authority, public agency, or public
corporation of this state, an instrumentality of more than one of
the foregoing, and an instrumentality of any of the foregoing and
one or more other states or political subdivisions.

(2) “Indian tribe” means an Indian tribe described by Section
3306(u) of Title 26 of the United States Code.

begin delete SEC. 503. end delete
begin insert SEC. 510. end insert   

Section 634.5 of the Unemployment Insurance Code
is amended to read:

634.5.  

Notwithstanding any other provision of law, a provision
excluding service from “employment” does not apply to an entity
defined by Section 605 or to a nonprofit organization described
by Section 608, except as provided by this section. With respect
to an entity defined by Section 605 or a nonprofit organization
described by Section 608, “employment” does not include service
excluded under Sections 629, 631, 635, and 639 to 648, inclusive,
or service performed in any of the following:

(a) In the employ of either of the following:

(1) A church or convention or association of churches.

(2) An organization that is operated primarily for religious
purposes and which is operated, supervised, controlled, or
principally supported by a church or convention or association of
churches.

(b) By a duly ordained, commissioned, or licensed minister of
a church in the exercise of his or her ministry or by a member of
a religious order in the exercise of duties required by the order.

(c) In the employ of an entity defined by Section 605, if the
service is performed by an individual in the exercise of his or her
duties as any of the following:

(1) An elected official.

(2) A member of a legislative body or a member of the judiciary
of a state or a political subdivision of a state.

(3) A member of the tribal council of an Indian tribe as described
by Section 3306(u) of Title 26 of the United States Code.

(4) A member of a State National Guard or Air National Guard.

(5) An employee serving on a temporary basis in case of fire,
storm, snow, earthquake, flood, or other similar emergency.

(6) An employee in a position that, under or pursuant to state
or tribal law, is designated as either of the following:

(A) A major nontenured policymaking or advisory position.

(B) A policymaking or advisory position, the performance of
the duties of which ordinarily does not require more than eight
hours per week.

(7) (A) Except as otherwise provided in subparagraph (B), an
election official or election worker if the amount of remuneration
reasonably expected to be received by the individual during the
calendar year for services as an election official or election worker
is less than one thousand dollars ($1,000).

(B) This paragraph shall not take effect unless and until the
service is excluded from service to which Section 3309(a)(1) of
Title 26 of the United States Code applies by reason of exemption
under Section 3309(b) of that act.

(d)  By an individual receiving rehabilitation or remunerative
work in a facility conducted for the purpose of carrying out a
program of either:

(1) Rehabilitation for individuals whose earning capacity is
impaired by age or physical or mental deficiency or injury.

(2) Providing remunerative work for individuals who because
of their impaired physical or mental capacity cannot be readily
absorbed in the competitive labor market.

(e) By an individual receiving work relief or work training as
part of an unemployment work relief or work training program
assisted or financed in whole or in part by any of the following:

(1) A federal agency.

(2) An agency of a state or a political subdivision thereof.

(3) An Indian tribe, as described by Section 3306(u) of Title 26
of the United States Code.

(f) By a ward or an inmate of a custodial or penal institution
pursuant to Article 1 (commencing with Section 2700), Article 4
(commencing with Section 2760), and Article 5 (commencing with
Section 2780) of Chapter 5 of, and Article 1 (commencing with
Section 2800) of Chapter 6 of, Title 1 of Part 3 of the Penal Code,
Section 4649 and Chapter 1 (commencing with Section 4951) of
Part 4 of Division 4 of the Public Resources Code, and Sections
883, 884, and 1768 of the Welfare and Institutions Code.

(g) By an individual under the age of 18 years in the delivery
or distribution of newspapers or shopping news, not including
delivery or distribution to any point for subsequent delivery or
distribution.

(h) By an individual in the sale of newspapers or magazines to
ultimate consumers, under an arrangement that includes the
following conditions:

(1) The newspapers or magazines are to be sold by the individual
at a fixed price.

(2) The individual’s compensation is based on retention of the
excess of the price over the amount at which the newspapers or
magazines are charged to the individual, whether or not he or she
is guaranteed a minimum amount of compensation for the service
or is entitled to be credited with the unsold newspapers or
magazines that he or she returns.

(i) (1) Except as otherwise provided in paragraph (2), as a
substitute employee whose employment does not increase the size
of the employer’s normal workforce, whose employment is
required by law, and whose employment as a substitute employee
does not occur on more than 60 days during the base period.

(2) This subdivision shall not take effect unless and until the
United States Secretary of Labor, or his or her designee, finds that
this subdivision is in conformity with federal requirements.

(j) As a participant in a national service program carried out
using assistance provided under Section 12571 of Title 42 of the
United States Code.

begin delete SEC. 504. end delete
begin insert SEC. 511. end insert   

Section 710.6 of the Unemployment Insurance Code
is amended to read:

710.6.  

(a) Notwithstanding Section 709, an Indian tribe as
described by Section 3306(u) of Title 26 of the United States Code,
including tribes not covered by the Tribal-State Gaming Compact,
may elect to become an employer subject to Part 2 (commencing
with Section 2601) with respect to all employees who meet either
of the following conditions:

(1) Are employed in one or more distinct establishments or
places of business.

(2) Are a part of an employee bargaining unit provided the
election is the result of a negotiated agreement between the Indian
tribe and the recognized employee organization. The Indian tribe
also may elect to provide coverage to its management and
confidential employees and to its employees who are not a part of
an employee bargaining unit, but the election by the bargaining
unit shall not be contingent upon coverage of other employees of
the Indian tribe.

(b) Upon filing of an election, the filing entity shall, upon
approval by the director, become an employer subject to Part 2
(commencing with Section 2601) to the same extent as other
employers, and services performed by its employees who are
subject to an election under this section shall constitute
employment subject to that part. Sections 986 and 2903 apply to
an employer making an election pursuant to this section.

(c) This section does not affect the requirement that Indian tribes
covered by the Tribal-State Gaming Compact be subject to Part 2
(commencing with Section 2601).

begin delete SEC. 505. end delete
begin insert SEC. 512. end insert   

Section 802 of the Unemployment Insurance Code
is amended to read:

802.  

(a) The State of California, any other public entity (as
defined by Section 605), or any Indian tribe as described by Section
3306(u) of Title 26 of the United States Code, or any subdivision,
subsidiary, or business enterprise wholly owned by that Indian
tribe, for which services are performed that do constitute
employment under Section 605 may, in lieu of the contributions
required of employers, elect to finance its liability for
unemployment compensation benefits, extended duration benefits,
and federal-state extended benefits with respect to those services
by any method of financing coverage that is permitted under
Section 803.

(b) An election under Section 803 for financing coverage under
this section shall take effect with respect to services performed
from and after the first day of the calendar quarter in which the
election is filed with the director, and shall continue in effect for
not less than two full calendar years, unless the election is canceled
by the director pursuant to paragraph (2) of subdivision (g) of
Section 803. Thereafter the election under Section 803 may be
terminated as of January 1 of any calendar year only if the state
or other public entity or Indian tribe, on or before the 31st day of
January of that year, has filed with the director a written application
for termination. The director may for good cause waive the
requirement that a written application for termination shall be filed
on or before the 31st day of January. Financing coverage by an
election under Section 803 is not valid if it would establish any
different method of financing coverage for any calendar quarter
where an election for coverage has also been made by the state or
other public entity or Indian tribe under any provision of Article
4 (commencing with Section 701) of this chapter.

(c) The director may require from the state and other public
entity and Indian tribe, including an agent thereof, employment,
financial, statistical, or other information and reports, properly
verified, as may be deemed necessary by the director to carry out
his or her duties under this division, which shall be filed with the
director at the time and in the manner prescribed by him or her.

(d) The director may tabulate and publish information obtained
pursuant to this section in statistical form and may divulge the
name of the state or other public entity or Indian tribe.

(e) The state and other public entity and Indian tribe, including
an agent thereof, shall keep any work records as may be prescribed
by the director for the proper administration of this division.

(f) Except as inconsistent with the provisions of this section,
the provisions of this division and authorized regulations apply to
any matter arising pursuant to this section.

begin delete SEC. 506. end delete
begin insert SEC. 513. end insert   

Section 803 of the Unemployment Insurance Code
is amended to read:

803.  

(a) As used in this section, “entity” means an employing
unit that is authorized by Article 4 (commencing with Section 701)
or by Section 801 or 802 to elect a method of financing coverage
permitted by this section.

(b) In lieu of the contributions required of employers, an entity
may elect any one of the following:

(1) To pay into the Unemployment Fund the cost of benefits,
including extended duration benefits and federal-state extended
benefits, paid based on base period wages with respect to
employment for the entity and charged to its account in the manner
provided by Section 1026, pursuant to authorized regulations that
shall prescribe the rate or amount, time, manner, and method of
payment or advance payment or providing a good and sufficient
bond to guarantee payment of contributions.

(2) Two or more entities may, pursuant to authorized regulations,
file an application with the director for the establishment of a joint
account for the purpose of determining the rate of contributions
they shall pay into the Unemployment Fund to reimburse the fund
for benefits paid with respect to employment for those entities.
The members of the joint account may share the cost of benefits,
including extended duration benefits and federal-state extended
benefits, paid based on the base period wages with respect to
employment for those members and charged to the joint account
in the manner provided by Section 1026. The director shall
prescribe authorized regulations for the establishment, maintenance,
and dissolution of joint accounts, and for the rate or amount, time,
manner, and method of payment or advance payment or providing
a good and sufficient bond to guarantee payment of contributions
by the members of joint accounts, on the cost of benefits charged
in the manner provided by Section 1026.

(c) Sections 1030, 1031, 1032, and 1032.5, and any provision
of this division for the noncharging of benefits to the account of
an employer, do not apply to an election under subdivision (b).
The cost of benefits charged to an entity under this section shall
include, but not be limited to, benefits or payments improperly
paid in excess of a weekly benefit amount, or in excess of a
maximum benefit amount, or otherwise in excess of the amount
that should have been paid, due to any computational or other error
of any type by the Employment Development Department or the
Department of Benefit Payments, whether or not the error could
be anticipated.

(d) The cost of benefits charged to an entity under this section
shall include credits of benefit overpayments actually collected by
the department, unless the department determines that the payment
was made because the entity, or an agent of the entity, was at fault
for failing to respond timely or adequately to requests of the
department for information relating to the individual claim for
unemployment compensation benefits. The department shall make
this determination when the entity or agent fails to respond timely
or adequately in two instances relating to the individual claim for
unemployment compensation benefits. This subdivision shall apply
to benefit overpayments established on or after October 22, 2013.

(e) In making the payments prescribed by subdivision (b), there
shall be paid or credited to the Unemployment Fund, either in
advance or by way of reimbursement, as may be determined by
the director, any sums he or she estimates the Unemployment Fund
will be entitled to receive from each entity for each calendar
quarter, reduced or increased by any sum by which he or she finds
that his or her estimates for any prior calendar quarter were greater
or less than the amounts which should have been paid to the fund.
The estimates may be made upon the basis of statistical sampling,
or any other method as may be determined by the director.

Upon making that determination, the director shall give notice
of the determination, pursuant to Section 1206, to the entity. The
director may cancel any contributions or portion thereof that he
or she finds has been erroneously determined.

The director shall charge to any special fund, that is responsible
for the salary of any employee of an entity, the amount determined
by the director for which the fund is liable pursuant to this section.
The contributions due from the entity shall be paid from the liable
special fund, the General Fund, or other liable fund to the
Unemployment Fund by the Controller or other officer or person
responsible for disbursements on behalf of the entity within 30
days of the date of mailing of the director’s notice of determination
to the entity. The director for good cause may extend for not to
exceed 60 days the time for paying without penalty the amount
determined and required to be paid. Contributions are due upon
the date of mailing of the notice of determination and are
delinquent if not paid on or before the 30th day following the date
of mailing of the notice.

(f) An entity that fails to pay the contributions required within
the time required shall be liable for interest on the contributions
at the adjusted annual rate and by the method established pursuant
to Section 19521 of the Revenue and Taxation Code from and after
the date of delinquency until paid, and an entity that without good
cause fails to pay contributions required within the time required
shall pay a penalty of 10 percent of the amount of the contributions.
If the entity fails to pay the contributions required on or before the
delinquency date, the director may assess the entity for the amount
required by the notice of determination. This subdivision does not
apply to employers electing financing under Section 821, for
amounts due after December 31, 1992.

(g) Article 8 (commencing with Section 1126) of Chapter 4 of
Part 1, with respect to the assessment of contributions, and Chapter
7 (commencing with Section 1701) of Part 1, with respect to the
collection of contributions, apply to the assessments provided by
this section. Sections 1177 to 1184, inclusive, relating to refunds
and overpayments, apply to amounts paid to the Unemployment
Fund pursuant to this section. Sections 1222, 1223, 1224, 1241,
and 1242 apply to matters arising under this section.

(h) (1) The director may terminate the election of an entity for
financing under this section if the entity is delinquent in the
payment of advances or reimbursements required by the director
under this section. After a termination, the entity may again make
an election pursuant to this section, but only if it is not delinquent
in the payment of contributions and not delinquent in the payment
of advances or reimbursements required by the director under this
section.

(2) In the case of an Indian tribe (as described by Section
3306(u) of Title 26 of the United States Code), the director shall
terminate all elections for the tribe and all subdivisions,
subsidiaries, and business enterprises wholly owned by that tribe
if the tribe or any subdivision, subsidiary, or business enterprise
wholly owned by that tribe is more than 90 days delinquent in the
payment of contributions, bonds, advances, reimbursements, or
applicable penalties or interest required under this code, after notice
to the tribe. After a termination, the Indian tribe may again make
an election pursuant to this section, but only if it is not delinquent
in the payment of contributions, bonds, advances, reimbursements,
or applicable penalties or interest required under this code.

(i) Notwithstanding any other provision of this section, an entity
shall not be liable for that portion of any extended duration benefits
or federal-state extended benefits that is reimbursed or reimbursable
by the federal government to the State of California.

(j) After the termination of an election under this section, the
entity shall remain liable for its proportionate share of the cost of
benefits paid and charged to its account in the manner provided
by Section 1026, which are based on wages paid for services during
the period of the election. That liability may be charged against
any remaining balance of a prior reserve account used by the entity
pursuant to Section 712 or 713. Any portion of the remaining
balance shall be included in the reserve account of the entity
following a termination of an election under this section which
occurs prior to the expiration of a period of three consecutive years
commencing with the effective date of the election. For purposes
of Section 982, the period of an election under Section 803 shall,
to the extent permitted by federal law, be included as a period
during which a reserve account has been subject to benefit charges.

begin delete SEC. 507. end delete
begin insert SEC. 514. end insert   

Section 804 of the Unemployment Insurance Code
is amended to read:

804.  

The director shall notify the United States Internal
Revenue Service and the United States Department of Labor of
the failure of any Indian tribe (as described by Section 3306(u) of
Title 26 of the United States Code) to make a payment or post a
bond as required under subdivision (b) of Section 803 within 90
days of the delinquency date of a notice to the tribe specifying the
amount due under that subdivision. If the amount due is
subsequently paid by the Indian tribe, the director shall notify the
United States Internal Revenue Service and the United States
Department of Labor of the satisfaction of the liability.

begin delete SEC. 508. end delete
begin insert SEC. 515. end insert   

Section 1086 of the Unemployment Insurance Code
is amended to read:

1086.  

(a) Each employing unit within 15 days after becoming
an employer as defined in this part shall register with the
department on a form prescribed by the department.

(b) (1) Notwithstanding subdivision (a), an Indian tribe (as
described by Section 3306(u) of Title 26 of the United States Code)
that employed one or more workers on or after December 21, 2000,
and prior to the operative date of the statute adding this subdivision
at the 2001 portion of the 2001-02 Regular Session of the
Legislature that has not registered with the department by the
operative date of the statute, shall register with the department
within 15 days of that operative date.

(2) The subject date for employers who register with the
department under the provisions of paragraph (1) shall be
December 21, 2000, or the date that employer first hired an
employee, whichever is later.

begin delete SEC. 509. end delete
begin insert SEC. 516. end insert   

Section 1119 of the Unemployment Insurance Code
is amended to read:

1119.  

The director shall notify the United States Internal
Revenue Service and the United States Department of Labor of
the failure of an Indian tribe (as described by Section 3306(u) of
Title 26 of the United States Code) to make a payment of an
amount required to be paid under this article within 90 days of the
date of a notice specifying the amount due. If the amount due is
subsequently paid by the Indian tribe, the director shall notify the
United States Internal Revenue Service and the United States
Department of Labor of the satisfaction of the liability.

begin delete SEC. 510. end delete
begin insert SEC. 517. end insert   

Section 1128.1 of the Unemployment Insurance
Code is amended to read:

1128.1.  

(a) If the director finds that an individual or business
entity has exchanged money on behalf of an employer and the
employer used the cash proceeds from the exchange to conceal
the payment of wages with an intent to evade a provision of this
code, the director shall assess a penalty against the individual or
business entity in an amount equal to 100 percent of any assessed
contributions that were based on the concealed wages. An
employing unit subject to a penalty under Section 1128 shall not
be assessed a penalty under this section for the same violation.

(b) For purposes of this section, “business entity” means a
partnership, corporation, association, limited liability company,
or Indian tribe (as described by Section 3306(u) of Title 26 of the
United States Code).

(c) The penalty applies only when there is evidence that the
individual or business entity who exchanged money knew that the
employer intended to use the cash proceeds from the exchange to
conceal the payment of wages and thereby avoid the payment of
contributions or taxes required by this code.

begin delete SEC. 511. end delete
begin insert SEC. 518. end insert   

Section 1141.1 of the Unemployment Insurance
Code is amended to read:

1141.1.  

The director shall notify the United States Internal
Revenue Service and the United States Department of Labor of
the failure of an Indian tribe (as described by Section 3306(u) of
Title 26 of the United States Code) to pay within 90 days of the
final date of an assessment any amounts assessed pursuant to the
provisions of this article. If the assessment is subsequently paid
by the Indian tribe, the director shall notify the United States
Internal Revenue Service and the United States Department of
Labor of the satisfaction of the liability.

begin delete SEC. 512. end delete
begin insert SEC. 519. end insert   

Section 1145 of the Unemployment Insurance Code
is amended to read:

1145.  

(a) If the director finds that a person or business entity
knowingly advises another person or business entity to violate any
provision of this chapter, the director may assess the greater of:

(1) A penalty of five thousand dollars ($5,000).

(2) Ten percent of the combined amount of any resulting
underreporting of contribution, penalties, or interest required by
law.

(b) For purposes of this section, “business entity” means a
partnership, corporation, association, limited liability company,
or Indian tribe, as described in Section 3306(u) of Title 26 of the
United States Code, or any other legal entity.

begin delete SEC. 513. end delete
begin insert SEC. 520. end insert   

Section 1253.92 of the Unemployment Insurance
Code is amended to read:

1253.92.  

(a) An unemployed individual who meets all of the
requirements under this division, including Section 1253.9, and
certifies for continued unemployment compensation benefits shall
not be scheduled for a determination of eligibility for a week in
which the individual commenced or is participating in a training
or education program and has notified the department of the
training or education program.

(b) If the department determines that the commencement of, or
the ongoing participation in, a training or education program
conflicts with the eligibility requirements for unemployment
compensation under this division, the department may schedule
and conduct a determination of eligibility.

begin delete SEC. 514. end delete
begin insert SEC. 521. end insert   

Section 1326.5 of the Unemployment Insurance
Code is amended to read:

1326.5.  

An individual shall, to maintain his or her eligibility
to file continued claims during a continuous period of
unemployment, submit a continued claim not more than 14 days
from the end of the last week’s ending date shown on the continued
claim, or not more than 14 days from the date the department issued
that continued claim, whichever is later, unless the department
finds good cause for the individual’s delay in submitting the
continued claim. An unemployed individual may not be
disqualified for unemployment compensation benefits solely on
the basis that the continued claim was submitted 15 to 21 days,
inclusive, from the end of the last week’s ending date shown on
the continued claim, or 15 to 21 days inclusive, from the date the
department issued that continued claim, whichever is later.

begin delete SEC. 515. end delete
begin insert SEC. 522. end insert   

Section 1735.1 of the Unemployment Insurance
Code is amended to read:

1735.1.  

(a) An individual who has been assessed under the
provisions of Section 1128.1, or an officer, major stockholder, or
other person having charge of the affairs of a business entity that
has been assessed under the provisions of that section, shall be
personally liable for the amount of contributions, withholdings,
penalties, and interest due and unpaid by the employer, other than
those under subdivisions (a) and (b) of Section 1128, for whom
money was exchanged as described in Section 1128.1. The director
may assess that person for the amount of contributions,
withholdings, all penalties other than those under Section 1128,
and interest. The provisions of Article 8 (commencing with Section
1126) and Article 9 (commencing with Section 1176) of Chapter
4 apply to assessments made pursuant to this section. Sections
1221, 1222, 1223, and 1224 apply to assessments made pursuant
to this section. With respect to that person, the director shall have
all the collection remedies set forth in this chapter.

(b) For purposes of this section, “business entity” means a
partnership, corporation, association, limited liability company,
or Indian tribe (as described by Section 3306(u) of Title 26 of the
United States Code).

begin delete SEC. 516. end delete
begin insert SEC. 523. end insert   

Section 3655 of the Unemployment Insurance Code,
as amended by Section 17 of Chapter 399 of the Statutes of 2014,
is amended to read:

3655.  

(a) The Employment Development Department shall
consider the facts submitted by an employer pursuant to Section
3654 and, if benefits are claimed subsequent to the filing of the
extended duration benefits claim, make a determination as to the
exhaustee’s eligibility for the extended duration benefits. The
Employment Development Department shall promptly notify the
exhaustee and any employer who prior to the determination has
submitted any facts pursuant to Section 3654 of the determination
and the reasons therefor. The exhaustee and the employer may
appeal therefrom to an administrative law judge within 20 days
from mailing or personal service of notice of the determination.
The 20-day period may be extended for good cause. The Director
of Employment Development shall be an interested party to any
appeal.

(b) “Good cause,” as used in this section, shall include, but not
be limited to, mistake, inadvertence, surprise, or excusable neglect.

(c) This section shall become inoperative on July 1, 2015, and,
as of January 1, 2016, is repealed.

begin delete SEC. 517. end delete
begin insert SEC. 524. end insert   

Section 3655 of the Unemployment Insurance Code,
as added by Section 18 of Chapter 399 of the Statutes of 2014, is
amended to read:

3655.  

(a) The Employment Development Department shall
consider the facts submitted by an employer pursuant to Section
3654 and, if benefits are claimed subsequent to the filing of the
extended duration benefits claim, make a determination as to the
exhaustee’s eligibility for the extended duration benefits. The
Employment Development Department shall promptly notify the
exhaustee and any employer who prior to the determination has
submitted any facts pursuant to Section 3654 of the determination
and the reasons therefor. The exhaustee and the employer may
appeal therefrom to an administrative law judge within 30 days
from mailing or personal service of notice of the determination.
The 30-day period may be extended for good cause. The Director
of Employment Development shall be an interested party to any
appeal.

(b) “Good cause,” as used in this section, shall include, but not
be limited to, mistake, inadvertence, surprise, or excusable neglect.

(c) This section shall take effect on July 1, 2015.

begin delete SEC. 518. end delete
begin insert SEC. 525. end insert   

Section 14013 of the Unemployment Insurance Code
is amended to read:

14013.  

The board shall assist the Governor in the following:

(a) Promoting the development of a well-educated and highly
skilled 21st century workforce.

(b) Developing the State Workforce Investment Plan.

(c) Developing guidelines for the continuous improvement and
operation of the workforce investment system, including:

(1) Developing policies to guide the one-stop system.

(2) Providing technical assistance for the continuous
improvement of the one-stop system.

(3) Recommending state investments in the one-stop system.

(4) Targeting resources to competitive and emerging industry
sectors and industry clusters that provide economic security and
are either high-growth sectors or critical to California’s economy,
or both. These industry sectors and clusters shall have significant
economic impacts on the state and its regional and workforce
development needs and have documented career opportunities.

(5) To the extent permissible under state and federal laws,
recommending youth policies and strategies that support linkages
between kindergarten and grades 1 to 12, inclusive, and community
college educational systems and youth training opportunities in
order to help youth secure educational and career advancement.
These policies and strategies may be implemented using a sector
strategies framework and should ultimately lead to placement in
a job providing economic security or job placement in an
entry-level job that has a well-articulated career pathway or career
ladder to a job providing economic security.

(6) To the extent permissible under state and federal law,
recommending adult and dislocated worker training policies and
investments that offer a variety of career opportunities while
upgrading the skills of California’s workforce. These may include
training policies and investments pertaining to any of the following:

(A) Occupational skills training, including training for
nontraditional employment.

(B) On-the-job training.

(C) Programs that combine workplace training with related
instruction, which may include cooperative education programs.

(D) Training programs operated by the private sector.

(E) Skill upgrading and retraining.

(F) Entrepreneurial training.

(G) Job readiness training.

(H) Adult education and literacy activities provided in
combination with any of the services described in this paragraph.

(I) Customized training conducted with a commitment by an
employer or group of employers to employ an individual upon
successful completion of the training.

(d) Developing and continuously improving the statewide
workforce investment system as delivered via the one-stop delivery
system and via other programs and services supported by funding
from the federal Workforce Investment Act of 1998, including:

(1) Developing linkages in order to ensure coordination and
nonduplication among workforce programs and activities.

(2) Reviewing local workforce investment plans.

(3) Leveraging state and federal funds to ensure that resources
are invested in activities that meet the needs of the state’s
competitive and emerging industry sectors and advance the
education and employment needs of students and workers so they
can keep pace with the education and skill needs of the state, its
regional economies, and leading industry sectors.

(e) Commenting, at least once annually, on the measures taken
pursuant to the Carl D. Perkins Vocational and Applied Technology
Education Act Amendments of 1990 (Public Law 101-392; 20
U.S.C. Sec. 2301 et seq.).

(f) Designating local workforce investment areas within the
state based on information derived from all of the following:

(1) Consultations with the Governor.

(2) Consultations with the chief local elected officials.

(3) Consideration of comments received through the public
comment process, as described in Section 112(b)(9) of the federal
Workforce Investment Act of 1998 (Public Law 105-220).

(g) Developing and modifying allocation formulas, as necessary,
for the distribution of funds for adult employment and training
activities, for youth activities to local workforce investment areas,
and dislocated worker employment and training activities, as
permitted by federal law.

(h) Coordinating the development and continuous improvement
of comprehensive state performance measures, including state
adjusted levels of performance, to assess the effectiveness of the
workforce investment activities in the state.

(i) Preparing the annual report to the United States Secretary of
Labor.

(j) Recommending policy for the development of the statewide
employment statistics system, including workforce and economic
data, as described in Section 49l-2 of Title 29 of the United States
Code, and using, to the fullest extent possible, the Employment
Development Department’s existing labor market information
systems.

(k) Recommending strategies to the Governor for strategic
training investments of the Governor’s 15-percent discretionary
funds.

(l) Developing and recommending waivers, in conjunction with
local workforce investment boards, to the Governor as provided
for in the federal Workforce Investment Act of 1998.

(m) Recommending policy to the Governor for the use of the
25-percent rapid response funds, as authorized under the federal
Workforce Investment Act of 1998.

(n) Developing an application to the United States Department
of Labor for an incentive grant under Section 9273 of Title 20 of
the United States Code.

(o) (1) Developing a workforce metrics dashboard, to be
updated annually, that measures the state’s human capital
investments in workforce development to better understand the
collective impact of these investments on the labor market. The
workforce metrics dashboard shall be produced using existing
available data and resources that are currently collected and
accessible to state agencies. The board shall convene workforce
program partners to develop a standardized set of inputs and
outputs for the workforce metrics dashboard. The workforce
metrics dashboard shall do all of the following:

(A) Provide a status report on credential attainment, training
completion, degree attainment, and participant earnings from
workforce education and training programs. The board shall publish
and distribute the final report.

(B) Provide demographic breakdowns, including, to the extent
possible, race, ethnicity, age, gender, veteran status, wage and
credential or degree outcomes, and information on workforce
outcomes in different industry sectors.

(C) Measure, at a minimum and to the extent feasible with
existing resources, the performance of the following workforce
programs: community college career technical education, the
Employment Training Panel, Title I and Title II of the federal
Workforce Investment Act of 1998, Trade Adjustment Assistance,
and state apprenticeship programs.

(D) Measure participant earnings in California, and to the extent
feasible, in other states. The Employment Development Department
shall assist the board by calculating aggregated participant earnings
using unemployment insurance wage records, without violating
any applicable confidentiality requirements.

(2) The State Department of Education is hereby authorized to
collect the social security numbers of adults participating in adult
education programs so that accurate participation in those programs
can be represented in the report card. However, an individual shall
not be denied program participation if he or she refuses to provide
a social security number. The State Department of Education shall
keep this information confidential and shall only use this
information for tracking purposes, in compliance with all applicable
state and federal law.

(3) (A) Participating workforce programs, as specified in
subparagraph (C) of paragraph (1), shall provide participant data
in a standardized format to the Employment Development
Department.

(B) The Employment Development Department shall aggregate
data provided by participating workforce programs and shall report
the data, organized by demographics, earnings, and industry of
employment, to the board to assist the board in producing the
annual workforce metrics dashboard.

begin delete SEC. 519. end delete
begin insert SEC. 526. end insert   

Section 241 of the Vehicle Code, as added by Section
4 of Chapter 740 of the Statutes of 2012, is repealed.

begin delete SEC. 520. end delete
begin insert SEC. 527. end insert   

Section 241.1 of the Vehicle Code, as added by
Section 5 of Chapter 740 of the Statutes of 2012, is repealed.

begin delete SEC. 521. end delete
begin insert SEC. 528. end insert   

Section 612 of the Vehicle Code, as added by
Chapter 1305 of the Statutes of 1986, is repealed.

begin delete SEC. 522. end delete
begin insert SEC. 529. end insert   

Section 612 of the Vehicle Code, as amended by
Section 8 of Chapter 1216 of the Statutes of 1989, is amended to
read:

612.  

“Tour bus” means a bus, which is operated by or for a
charter-party carrier of passengers, as defined in Section 5360 of
the Public Utilities Code, or a passenger stage corporation, as
defined in Section 226 of the Public Utilities Code.

begin delete SEC. 523. end delete
begin insert SEC. 530. end insert   

Section 1803.5 of the Vehicle Code, as added by
Chapter 216 of the Statutes of 2010, is repealed.

begin delete SEC. 524. end delete
begin insert SEC. 531. end insert   

Section 1808.7 of the Vehicle Code, as added by
Chapter 216 of the Statutes of 2010, is repealed.

begin delete SEC. 525. end delete
begin insert SEC. 532. end insert   

Section 2480 of the Vehicle Code is amended to
read:

2480.  

(a) A peace officer may remove a vehicle, within the
territorial limits in which the officer may act, if the vehicle is
involved in the theft or movement of stolen inedible kitchen grease.
If a peace officer removes a vehicle pursuant to this subdivision,
the officer may, after citing or arresting the responsible person,
seize the vehicle, which may be impounded for up to 15 days.

(b) The registered and legal owner of a vehicle removed and
seized pursuant to subdivision (a) or their agents shall be provided
the opportunity for a storage hearing to determine the validity of
the storage in accordance with Section 22852.

(c) (1) Notwithstanding Chapter 10 (commencing with Section
22650) of Division 11 or any other law, an impounding agency
shall release a motor vehicle to the registered owner or his or her
agent prior to the conclusion of the impoundment period described
in subdivision (a) under any of the following circumstances:

(A) If the vehicle is a stolen vehicle and reported as stolen in
accordance with then existing state and local law.

(B) If the legal owner or registered owner of the vehicle is a
rental car agency.

(C) If, prior to the conclusion of the impoundment period, a
citation or notice is dismissed under Section 40500, criminal
charges are not filed by the district attorney because of a lack of
evidence, or the charges are otherwise dismissed by the court.

(2) A vehicle shall be released pursuant to this subdivision only
if the registered owner or his or her agent presents a currently valid
driver’s license to operate the vehicle and proof of current vehicle
registration, or if ordered by a court.

(d) A vehicle seized and removed pursuant to subdivision (a)
shall be released to the legal owner of the vehicle, or the legal
owner’s agent, on or before the 15th day of impoundment if all of
the following conditions are met:

(1) The legal owner is a motor vehicle dealer, bank, credit union,
acceptance corporation, or other licensed financial institution
legally operating in this state, or is another person, not the
registered owner, holding a security interest in the vehicle.

(2) The legal owner or the legal owner’s agent pays all towing
and storage fees related to the impoundment of the vehicle. No
lien sale processing fees shall be charged to a legal owner who
redeems the vehicle on or before the seventh day of impoundment.

(3) The legal owner or the legal owner’s agent presents
foreclosure documents or an affidavit of repossession for the
vehicle.

(e) (1) The registered owner or his or her agent is responsible
for all towing and storage charges related to the impoundment,
and any administrative charges authorized under Section 22850.5.

(2) If the vehicle is a rental vehicle, the rental car agency may
require the person to whom the vehicle was rented to pay all towing
and storage charges related to the impoundment and any
administrative charges authorized under Section 22850.5 incurred
by the rental car agency in connection with obtaining possession
of the vehicle.

(3) The owner is not liable for any towing and storage charges
related to the impoundment if acquittal or dismissal occurs.

(4) The vehicle shall not be sold prior to the defendant’s
conviction.

begin delete SEC. 526. end delete
begin insert SEC. 533. end insert   

Section 2501 of the Vehicle Code, as added by
Section 6 of Chapter 860 of the Statutes of 1981, is repealed.

begin delete SEC. 527. end delete
begin insert SEC. 534. end insert   

Section 2501 of the Vehicle Code, as amended by
Section 2 of Chapter 294 of the Statutes of 1982, is amended to
read:

2501.  

The Commissioner of the California Highway Patrol
may issue licenses for the operation of privately owned or operated
ambulances used to respond to emergency calls, armored cars,
fleet owner inspection and maintenance stations, and for the
transportation of hazardous material, including the transportation
of explosives. The licenses shall be issued in accordance with the
provisions of this chapter and regulations adopted by the
commissioner pursuant thereto. All licenses issued by the
commissioner shall expire one year from the date of issue. Licenses
may be renewed upon application and payment of the renewal fees
if the application for renewal is made within the 30-day period
prior to the date of expiration. Persons whose licenses have expired
shall immediately cease the activity requiring a license, but the
commissioner shall accept applications for renewal during the
30-day period following the date of expiration if they are
accompanied by the new license fee. A license shall not be renewed
when the application is received more than 30 days after the date
of expiration.

begin delete SEC. 528. end delete
begin insert SEC. 535. end insert   

Section 5156.7 of the Vehicle Code is amended to
read:

5156.7.  

(a) The State Department of Health Care Services
shall apply to the department, pursuant to Section 5156, to sponsor
a breast cancer awareness license plate program. The department
shall issue specialized license plates for that program if the State
Department of Health Care Services complies with the
requirements of Section 5156.

(b) The State Department of Health Care Services may accept
and use donated artwork from California artists for the license
plate.

(c) Notwithstanding subdivision (c) of Section 5157, the
additional fees prescribed by Section 5157 for the issuance,
renewal, or transfer of the specialized license plates shall be
deposited, after the department deducts its administrative costs, in
the Breast Cancer Control Account in the Breast Cancer Fund
established pursuant to Section 30461.6 of the Revenue and
Taxation Code.

(d) It is the intent of the Legislature that the department, in
consultation with the State Department of Health Care Services,
will design and make available for issuance pursuant to this article
special breast cancer awareness license plates. Specifically, it is
the intent of the Legislature that the license plates issued pursuant
to this section consist of a pink breast cancer awareness ribbon to
the left of the numerical series and a breast cancer awareness
message, such as, “Early Detection Saves Lives,” below the
numerical series.

begin delete SEC. 529. end delete
begin insert SEC. 536. end insert   

Chapter 5 (commencing with Section 10900) of
Division 4 of the Vehicle Code, as added by Section 7 of Chapter
1247 of the Statutes of 1994, is repealed.

begin delete SEC. 530. end delete
begin insert SEC. 537. end insert   

Section 12801 of the Vehicle Code, as amended by
Section 6 of Chapter 27 of the Statutes of 2014, is amended to
read:

12801.  

(a) Except as provided in subdivisions (b) and (c) and
Section 12801.9, the department shall require an application for a
driver’s license to contain the applicant’s social security account
number and any other number or identifier determined to be
appropriate by the department.

(b) An applicant who provides satisfactory proof that his or her
presence in the United States is authorized under federal law, but
who is not eligible for a social security account number, is eligible
to receive an original driver’s license if he or she meets all other
qualifications for licensure.

(c) (1) An applicant applying for a driver’s license under
Section 12801.9, who has never been issued a social security
account number and is not presently eligible for a social security
account number, shall satisfy the requirements of this section if
he or she indicates in the application described in Section 12800,
in the manner prescribed by the department, that he or she has
never been issued a social security account number and is not
presently eligible for a social security account number.

(2) This subdivision does not apply to applications for a
commercial driver’s license. The department shall require all
applications for a commercial driver’s license to include the
applicant’s social security account number.

(3) This section shall not be used to consider an individual’s
citizenship or immigration status as a basis for a criminal
investigation, arrest, or detention.

(d) The department shall not complete an application for a
driver’s license unless the applicant is in compliance with the
requirements of subdivision (a), (b), or (c).

(e) Notwithstanding any other law, the social security account
number collected on a driver’s license application shall not be
displayed on the driver’s license, including, but not limited to,
inclusion on a magnetic tape or strip used to store data on the
license.

(f) This section shall become operative on January 1, 2015, or
on the date that the director executes a declaration pursuant to
Section 12801.11, whichever is sooner.

(g) This section shall become inoperative on the effective date
of a final judicial determination made by any court of appellate
jurisdiction that any provision of the act that added this section,
or its application, either in whole or in part, is enjoined, found
unconstitutional, or held invalid for any reason. The department
shall post this information on its Internet Web site.

begin delete SEC. 531. end delete
begin insert SEC. 538. end insert   

Section 12801.9 of the Vehicle Code is amended to
read:

12801.9.  

(a) Notwithstanding Section 12801.5, the department
shall issue an original driver’s license to a person who is unable
to submit satisfactory proof that the applicant’s presence in the
United States is authorized under federal law if he or she meets
all other qualifications for licensure and provides satisfactory proof
to the department of his or her identity and California residency.

(b) The department shall adopt emergency regulations to carry
out the purposes of this section, including, but not limited to,
procedures for (1) identifying documents acceptable for the
purposes of proving identity and California residency, (2)
procedures for verifying the authenticity of the documents, (3)
issuance of a temporary license pending verification of any
document’s authenticity, and (4) hearings to appeal a denial of a
license or temporary license.

(c) Emergency regulations adopted for purposes of establishing
the documents acceptable to prove identity and residency pursuant
to subdivision (b) shall be promulgated by the department in
consultation with appropriate interested parties, in accordance with
the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code), including law enforcement representatives, immigrant rights
representatives, labor representatives, and other stakeholders,
which may include, but are not limited to, the Department of the
California Highway Patrol, the California State Sheriffs’
Association, and the California Police Chiefs Association. The
department shall accept various types of documentation for this
purpose, including, but not limited to, the following documents:

(1) A valid, unexpired consular identification document issued
by a consulate from the applicant’s country of citizenship, or a
valid, unexpired passport from the applicant’s country of
citizenship.

(2) An original birth certificate, or other proof of age, as
designated by the department.

(3) A home utility bill, lease or rental agreement, or other proof
of California residence, as designated by the department.

(4) The following documents, which, if in a language other than
English, shall be accompanied by a certified translation or an
affidavit of translation into English:

(A) A marriage license or divorce certificate.

(B) A foreign federal electoral photo card issued on or after
January 1, 1991.

(C) A foreign driver’s license.

(5) A United States Department of Homeland Security Form
I-589, Application for Asylum and for Withholding of Removal.

(6) An official school or college transcript that includes the
applicant’s date of birth, or a foreign school record that is sealed
and includes a photograph of the applicant at the age the record
was issued.

(7) A United States Department of Homeland Security Form
I-20 or Form DS-2019.

(8) A deed or title to real property.

(9) A property tax bill or statement issued within the previous
12 months.

(10) An income tax return.

(d) (1) A license issued pursuant to this section, including a
temporary license issued pursuant to Section 12506, shall include
a recognizable feature on the front of the card, such as the letters
“DP” instead of, and in the same font size as, the letters “DL,”
with no other distinguishable feature.

(2) The license shall bear the following notice: “This card is
not acceptable for official federal purposes. This license is issued
only as a license to drive a motor vehicle. It does not establish
eligibility for employment, voter registration, or public benefits.”

(3) The notice described in paragraph (2) shall be in lieu of the
notice provided in Section 12800.5.

(e) If the United States Department of Homeland Security
determines a license issued pursuant to this section does not satisfy
the requirements of Section 37.71 of Title 6 of the Code of Federal
Regulations, adopted pursuant to paragraph (11) of subdivision
(d) of Section 202 of the Real ID Act of 2005 (Public Law 109-13),
the department shall modify the license only to the extent necessary
to satisfy the requirements of that section.

(f) Notwithstanding Section 40300 or any other law, a peace
officer shall not detain or arrest a person solely on the belief that
the person is an unlicensed driver, unless the officer has reasonable
cause to believe the person driving is under 16 years of age.

(g) The inability to obtain a driver’s license pursuant to this
section does not abrogate or diminish in any respect the legal
requirement of every driver in this state to obey the motor vehicle
laws of this state, including laws with respect to licensing, motor
vehicle registration, and financial responsibility.

(h) It is a violation of law to discriminate against a person
because he or she holds or presents a license issued under this
section, including, but not limited to, the following:

(1) It is a violation of the Unruh Civil Rights Act (Section 51
of the Civil Code), for a business establishment to discriminate
against a person because he or she holds or presents a license issued
under this section.

(2) (A) It is a violation of the California Fair Employment and
Housing Act (Part 2.8 (commencing with Section 12900) of
Division 3 of Title 2 of the Government Code) for an employer or
other covered person or entity, pursuant to Section 12940 of the
Government Code and subdivision (v) of Section 12926 of the
Government Code, to discriminate against a person because the
person holds or presents a driver’s license issued pursuant to this
section, or for an employer or other covered entity to require a
person to present a driver’s license, unless possessing a driver’s
license is required by law or is required by the employer and the
employer’s requirement is otherwise permitted by law. This section
shall not be construed to limit or expand an employer’s authority
to require a person to possess a driver’s license.

(B) Notwithstanding subparagraph (A), this section shall not
be construed to alter an employer’s rights or obligations under
Section 1324a of Title 8 of the United States Code regarding
obtaining documentation evidencing identity and authorization for
employment. An action taken by an employer that is required by
the federal Immigration and Nationality Act (8 U.S.C. Sec. 1324a)
is not a violation of law.

(3) It is a violation of Section 11135 of the Government Code
for a state or local governmental authority, agent, or person acting
on behalf of a state or local governmental authority, or a program
or activity that is funded directly or receives financial assistance
from the state, to discriminate against an individual because he or
she holds or presents a license issued pursuant to this section.

(i) Driver’s license information obtained by an employer shall
be treated as private and confidential, is exempt from disclosure
under the California Public Records Act (Chapter 3.5 (commencing
with Section 6250) of Division 7 of Title 1 of the Government
Code), and shall not be disclosed to any unauthorized person or
used for any purpose other than to establish identity and
authorization to drive.

(j) Information collected pursuant to this section is not a public
record and shall not be disclosed by the department, except as
required by law.

(k) A license issued pursuant to this section shall not be used
to consider an individual’s citizenship or immigration status as a
basis for an investigation, arrest, citation, or detention.

(l) On or before January 1, 2018, the California Research Bureau
shall compile and submit to the Legislature and the Governor a
report of any violations of subdivisions (h) and (k). Information
pertaining to any specific individual shall not be provided in the
report.

(m) In addition to the fees required by Section 14900, a person
applying for an original license pursuant to this section may be
required to pay an additional fee determined by the department
that is sufficient to offset the reasonable administrative costs of
implementing the provisions of the act that added this section. If
this additional fee is assessed, it shall only apply until June 30,
2017.

(n) This section shall become operative on January 1, 2015, or
on the date that the director executes a declaration pursuant to
Section 12801.11, whichever is sooner.

(o) This section shall become inoperative on the effective date
of a final judicial determination made by any court of appellate
jurisdiction that any provision of the act that added this section,
or its application, either in whole or in part, is enjoined, found
unconstitutional, or held invalid for any reason. The department
shall post this information on its Internet Web site.

begin delete SEC. 532. end delete
begin insert SEC. 539. end insert   

The heading of Article 1.7 (commencing with
Section 23145) of Chapter 12 of Division 11 of the Vehicle Code
is repealed.

begin delete SEC. 533. end delete
begin insert SEC. 540. end insert   

Section 15210 of the Vehicle Code is amended to
read:

15210.  

Notwithstanding any other provision of this code, as
used in this chapter, the following terms have the following
meanings:

(a) “Commercial driver’s license” means a driver’s license
issued by a state or other jurisdiction, in accordance with the
standards contained in Part 383 of Title 49 of the Code of Federal
Regulations, which authorizes the licenseholder to operate a class
or type of commercial motor vehicle.

(b) (1) “Commercial motor vehicle” means any vehicle or
combination of vehicles that requires a class A or class B license,
or a class C license with an endorsement issued pursuant to
paragraph (2), (3), (4), or (5) of subdivision (a) of Section 15278.

(2) “Commercial motor vehicle” does not include any of the
following:

(A) A recreational vehicle, as defined in Section 18010 of the
Health and Safety Code.

(B) An implement of husbandry operated by a person who is
not required to obtain a driver’s license under this code.

(C) Vehicles operated by persons exempted pursuant to Section
25163 of the Health and Safety Code or a vehicle operated in an
emergency situation at the direction of a peace officer pursuant to
Section 2800.

(c) “Controlled substance” has the same meaning as defined by
the federal Controlled Substances Act (21 U.S.C. Sec. 802).

(d) “Conviction” means an unvacated adjudication of guilt, or
a determination that a person has violated or failed to comply with
the law in a court of original jurisdiction or by an authorized
administrative tribunal, an unvacated forfeiture of bail or collateral
deposited to secure the person’s appearance in court, a plea of
guilty or nolo contendere accepted by the court, the payment of a
fine or court costs, or violation of a condition of release without
bail, regardless of whether or not the penalty is rebated, suspended,
or probated.

(e) “Disqualification” means a prohibition against driving a
commercial motor vehicle.

(f) “Driving a commercial vehicle under the influence” means
committing any one or more of the following unlawful acts in a
commercial motor vehicle:

(1) Driving a commercial motor vehicle while the operator’s
blood-alcohol concentration level is 0.04 percent or more, by
weight in violation of subdivision (d) of Section 23152.

(2) Driving under the influence of alcohol, as prescribed in
subdivision (a) or (b) of Section 23152.

(3) Refusal to undergo testing as required under this code in the
enforcement of Subpart D of Part 383 or Subpart A of Part 392 of
Title 49 of the Code of Federal Regulations.

(g) “Employer” means any person, including the United States,
a state, or political subdivision of a state, who owns or leases a
commercial motor vehicle or assigns drivers to operate that vehicle.
A person who employs himself or herself as a commercial vehicle
driver is considered to be both an employer and a driver for
purposes of this chapter.

(h) “Fatality” means the death of a person as a result of a motor
vehicle accident.

(i) “Felony” means an offense under state or federal law that is
punishable by death or imprisonment for a term exceeding one
year.

(j) “Gross combination weight rating” means the value specified
by the manufacturer as the maximum loaded weight of a
combination or articulated vehicle. In the absence of a value
specified by the manufacturer, gross vehicle weight rating shall
be determined by adding the gross vehicle weight rating of the
power unit and the total weight of the towed units and any load
thereon.

(k) “Gross vehicle weight rating” means the value specified by
the manufacturer as the maximum loaded weight of a single
vehicle, as defined in Section 350.

(l) “Imminent hazard” means the existence of a condition that
presents a substantial likelihood that death, serious illness, severe
personal injury, or substantial endangerment to health, property,
or the environment may occur before the reasonably foreseeable
completion date of a formal proceeding has begun to lessen the
risk of death, illness, injury, or endangerment.

(m) “Noncommercial motor vehicle” means a motor vehicle or
combination of motor vehicles that is not included within the
definition in subdivision (b).

(n) “Nonresident commercial driver’s license” means a
commercial driver’s license issued to an individual by a state under
one of the following provisions:

(1) The individual is domiciled in a foreign country.

(2) The individual is domiciled in another state.

(o) “Schoolbus” is a commercial motor vehicle, as defined in
Section 545.

(p) “Serious traffic violation” includes any of the following:

(1) Excessive speeding, as defined pursuant to the federal
Commercial Motor Vehicle Safety Act (P.L. 99-570) involving
any single offense for any speed of 15 miles an hour or more above
the posted speed limit.

(2) Reckless driving, as defined pursuant to the federal
Commercial Motor Vehicle Safety Act (P.L. 99-570), and driving
in the manner described under Section 2800.1, 2800.2, or 2800.3,
including, but not limited to, the offense of driving a commercial
motor vehicle in willful or wanton disregard for the safety of
persons or property.

(3) A violation of a state or local law involving the safe
operation of a motor vehicle, arising in connection with a fatal
traffic accident.

(4) A similar violation of a state or local law involving the safe
operation of a motor vehicle, as defined pursuant to the
Commercial Motor Vehicle Safety Act (Title XII of P.L. 99-570).

(5) Driving a commercial motor vehicle without a commercial
driver’s license.

(6) Driving a commercial motor vehicle without the driver
having in his or her possession a commercial driver’s license,
unless the driver provides proof at the subsequent court appearance
that he or she held a valid commercial driver’s license on the date
of the violation.

(7) Driving a commercial motor vehicle when the driver has
not met the minimum testing standards for that vehicle as to the
class or type of cargo the vehicle is carrying.

(8) Driving a commercial motor vehicle while using an
electronic wireless communication device to write, send, or read
a text-based communication, as defined in Section 23123.5.

In the absence of a federal definition, existing definitions under
this code apply.

(q) “State” means a state of the United States or the District of
Columbia.

(r) “Tank vehicle” means a commercial motor vehicle that is
designed to transport any liquid or gaseous material within a tank
or tanks having an individual rated capacity of more than 119
gallons and an aggregate rated capacity of at least 1,000 gallons
that is permanently or temporarily attached to the vehicle or the
chassis, including, but not limited to, cargo tanks and portable
tanks, as defined in Part 171 of Title 49 of the Code of Federal
Regulations. A commercial motor vehicle transporting an empty
storage container tank not designed for transportation, with a rated
capacity of at least 1,000 gallons that is temporarily attached to a
flatbed trailer, is not a tank vehicle.

begin delete SEC. 534. end delete
begin insert SEC. 541. end insert   

Section 34500 of the Vehicle Code is amended to
read:

34500.  

The department shall regulate the safe operation of the
following vehicles:

(a) Motortrucks of three or more axles that are more than 10,000
pounds gross vehicle weight rating.

(b) Truck tractors.

(c) Buses, schoolbuses, school pupil activity buses, youth buses,
farm labor vehicles, modified limousines, and general public
paratransit vehicles.

(d) Trailers and semitrailers designed or used for the
transportation of more than 10 persons, and the towing motor
vehicle.

(e) Trailers and semitrailers, pole or pipe dollies, auxiliary
dollies, and logging dollies used in combination with vehicles
listed in subdivision (a), (b), (c), or (d). This subdivision does not
include camp trailers, trailer coaches, and utility trailers.

(f) A combination of a motortruck and a vehicle or vehicles set
forth in subdivision (e) that exceeds 40 feet in length when coupled
together.

(g) A vehicle, or a combination of vehicles, transporting
hazardous materials.

(h) Manufactured homes that, when moved upon the highway,
are required to be moved pursuant to a permit as specified in
Section 35780 or 35790.

(i) A park trailer, as described in Section 18009.3 of the Health
and Safety Code, that, when moved upon a highway, is required
to be moved pursuant to a permit pursuant to Section 35780.

(j) Any other motortruck not specified in subdivisions (a) to
(h), inclusive, or subdivision (k), that is regulated by the
Department of Motor Vehicles, Public Utilities Commission, or
United States Secretary of Transportation, but only for matters
relating to hours of service and logbooks of drivers.

(k) A commercial motor vehicle with a gross vehicle weight
rating of 26,001 or more pounds or a commercial motor vehicle
of any gross vehicle weight rating towing a vehicle described in
subdivision (e) with a gross vehicle weight rating of more than
10,000 pounds, except combinations including camp trailers, trailer
coaches, or utility trailers. For purposes of this subdivision, the
term “commercial motor vehicle” has the meaning defined in
subdivision (b) of Section 15210.

begin delete SEC. 535. end delete
begin insert SEC. 542. end insert   

Section 35401.7 of the Vehicle Code is amended to
read:

35401.7.  

(a) The limitations of access specified in subdivision
(d) of Section 35401.5 do not apply to licensed carriers of livestock
when those carriers are directly en route to or from a point of
loading or unloading of livestock on those portions of State
Highway Route 101 located in the Counties of Del Norte,
Humboldt, and Mendocino from its junction with State Highway
Route 1 near Leggett north to the Oregon border, if the travel is
necessary and incidental to the shipment of the livestock.

(b) The exemption allowed under this section does not apply
unless all of the following conditions are met:

(1) The length of the truck tractor, in combination with the
semitrailer used to transport the livestock, does not exceed a total
of 70 feet.

(2) The distance from the kingpin to the rearmost axle of the
semitrailer does not exceed 43 feet.

(3) The length of the semitrailer does not exceed a total of 48
feet.

(c) The exemption allowed under this section does not apply to
travel conducted on the day prior to, or on the day of, any federally
recognized holiday.

(d) (1) Because route improvements in Richardson Grove that
will allow the combination of vehicles described in Section 35401.5
to fully operate on all portions of State Highway Route 101 located
in the Counties of Del Norte, Humboldt, and Mendocino are
ongoing and not yet completed, this section shall remain in effect
only until both of the following conditions are satisfied:

(A) All route improvements in Richardson Grove are completed
without restraint, including, but not limited to, judicial or injunctive
restraints.

(B) The Director of Transportation determines that the
combination of vehicles described in Section 35401.5 is authorized
to operate on all portions of State Highway Route 101 located in
the Counties of Del Norte, Humboldt, and Mendocino. When the
director makes the determination described in this subparagraph,
the director shall post a declaration on the Internet Web site of the
Department of Transportation.

(2) This section is repealed as of the date that the declaration
described in subparagraph (B) of paragraph (1) is posted on the
Department of Transportation’s Internet Web site.

(3) The declaration described in subparagraph (B) of paragraph
(1) shall state that it is being made pursuant to this section.

(e) (1) If, prior to the completion of the route improvements in
Richardson Grove as described in paragraph (1) of subdivision
(d), the Director of Transportation determines that the only
adjustment to State Highway Route 101 possible to accommodate
the truck sizes allowed to travel on portions of State Highway
Route 101, pursuant to subdivisions (a) and (b), is the removal of
any tree that has a diameter of 42 inches or greater, measured
outside the bark, at 12 inches above ground on the side adjacent
to the highest ground level, the director shall notify the Secretary
of State of that determination.

(2) If, prior to the completion of the route improvements in
Richardson Grove as described in paragraph (1) of subdivision
(d), the Director of Transportation determines that safety
improvements to the portion of State Highway Route 101 described
in subdivision (a) have resulted in the reclassification of the entire
segment as a terminal access route pursuant to subdivision (d) of
Section 35401.5, the director shall notify the Secretary of State of
that determination.

(3) The notice required under paragraph (1) or (2) shall state
that it is being made pursuant to this section.

(4) This section is repealed on the date the Secretary of State
receives either of the notices described in this subdivision.

begin delete SEC. 536. end delete
begin insert SEC. 543. end insert   

Section 40303.5 of the Vehicle Code is amended to
read:

40303.5.  

Whenever a person is arrested for any of the following
offenses, the arresting officer shall permit the arrested person to
execute a notice containing a promise to correct the violation in
accordance with the provisions of Section 40610 unless the
arresting officer finds that any of the disqualifying conditions
specified in subdivision (b) of Section 40610 exist:

(a) A registration infraction set forth in Division 3 (commencing
with Section 4000).

(b) A driver’s license infraction set forth in Division 6
(commencing with Section 12500), and subdivision (a) of Section
12951, relating to possession of a driver’s license.

(c) Section 21201, relating to bicycle equipment.

(d) An infraction involving equipment set forth in Division 12
(commencing with Section 24000), Division 13 (commencing with
Section 29000), Division 14.8 (commencing with Section 34500),
Division 16 (commencing with Section 36000), Division 16.5
(commencing with Section 38000), and Division 16.7 (commencing
with Section 39000).

(e) Section 2482, relating to registration decals for vehicles
transporting inedible kitchen grease.

begin delete SEC. 537. end delete
begin insert SEC. 544. end insert   

Section 42002.1 of the Vehicle Code, as added by
Section 4 of Chapter 899 of the Statutes of 2006, is repealed.

begin delete SEC. 538. end delete
begin insert SEC. 545. end insert   

Section 42002.1 of the Vehicle Code, as added by
Section 4 of Chapter 900 of the Statutes of 2006, is repealed.

begin delete SEC. 539. end delete
begin insert SEC. 546. end insert   

Article 2 (commencing with Section 8580) of
Chapter 2 of Part 4 of Division 5 of the Water Code, as added by
Section 15 of Chapter 365 of the Statutes of 2007, is repealed.

begin delete SEC. 540. end delete
begin insert SEC. 547. end insert   

Section 8612 of the Water Code, as added by Section
22 of Chapter 366 of the Statutes of 2007, is repealed.

begin delete SEC. 541. end delete
begin insert SEC. 548. end insert   

Section 8613 of the Water Code, as added by Section
23 of Chapter 366 of the Statutes of 2007, is repealed.

begin delete SEC. 542. end delete
begin insert SEC. 549. end insert   

Part 8 (commencing with Section 9650) of Division
5 of the Water Code, as added by Section 27 of Chapter 366 of
the Statutes of 2007, is repealed.

begin delete SEC. 543. end delete
begin insert SEC. 550. end insert   

Section 9650 of the Water Code, as added by Section
8 of Chapter 368 of the Statutes of 2007, is amended to read:

9650.  

(a) (1) Commencing July 1, 2008, the allocation or
expenditure of funds by the state for the upgrade of a project levee,
if that upgrade is authorized on or after July 1, 2008, that protects
an area in which more than 1,000 people reside shall be subject to
a requirement that the local agency responsible for the operation
and maintenance of the project levee and any city or county
protected by the project levee, including a charter city or charter
county, enter into an agreement to adopt a safety plan within two
years. If a city or county is responsible for the operation and
maintenance of the project levee, the governing body shall approve
a resolution committing to the preparation of a safety plan within
two years.

(2) The local entity responsible for the operation and
maintenance of the project levee shall submit a copy of the safety
plan to the department and the Central Valley Flood Protection
Board.

(b) The safety plan, at a minimum, shall include all of the
following elements:

(1) A flood preparedness plan that includes storage of materials
that can be used to reinforce or protect a levee when a risk of failure
exists.

(2) A levee patrol plan for high water situations.

(3) A flood-fight plan for the period before state or federal
agencies assume control over the flood fight.

(4) An evacuation plan that includes a system for adequately
warning the general public in the event of a levee failure, and a
plan for the evacuation of every affected school, residential care
facility for the elderly, and long-term health care facility.

(5) A floodwater removal plan.

(6) A requirement, to the extent reasonable, that either of the
following applies to a new building in which the inhabitants are
expected to be essential service providers:

(A) The building is located outside an area that may be flooded.

(B) The building is designed to be operable shortly after the
floodwater is removed.

(c) The safety plan shall be integrated into any other local
agency emergency plan and shall be coordinated with the state
emergency plan.

(d) This section does not require the adoption of an element of
the safety plan that was adopted previously and remains in effect.

begin delete SEC. 544. end delete
begin insert SEC. 551. end insert   

Section 10725.8 of the Water Code is amended to
read:

10725.8.  

(a) A groundwater sustainability agency may require
through its groundwater sustainability plan that the use of every
groundwater extraction facility within the management area of the
groundwater sustainability agency be measured by a
water-measuring device satisfactory to the groundwater
sustainability agency.

(b) All costs associated with the purchase and installation of
the water-measuring device shall be borne by the owner or operator
of each groundwater extraction facility. The water-measuring
devices shall be installed by the groundwater sustainability agency
or, at the groundwater sustainability agency’s option, by the owner
or operator of the groundwater extraction facility. Water-measuring
devices shall be calibrated on a reasonable schedule as may be
determined by the groundwater sustainability agency.

(c) A groundwater sustainability agency may require, through
its groundwater sustainability plan, that the owner or operator of
a groundwater extraction facility within the groundwater
sustainability agency file an annual statement with the groundwater
sustainability agency setting forth the total extraction in acre-feet
of groundwater from the facility during the previous water year.

(d) In addition to the measurement of groundwater extractions
pursuant to subdivision (a), a groundwater sustainability agency
may use any other reasonable method to determine groundwater
extraction.

(e) This section does not apply to de minimis extractors.

begin delete SEC. 545. end delete
begin insert SEC. 552. end insert   

Section 10735.2 of the Water Code is amended to
read:

10735.2.  

(a) The board, after notice and a public hearing, may
designate a basin as a probationary basin, if the board finds one
or more of the following applies to the basin:

(1) After June 30, 2017, none of the following have occurred:

(A)  A local agency has elected to be a groundwater
sustainability agency that intends to develop a groundwater
sustainability plan for the entire basin.

(B)  A collection of local agencies has formed a groundwater
sustainability agency or prepared agreements to develop one or
more groundwater sustainability plans that will collectively serve
as a groundwater sustainability plan for the entire basin.

(C)  A local agency has submitted an alternative that has been
approved or is pending approval pursuant to Section 10733.6. If
the department disapproves an alternative pursuant to Section
10733.6, the board shall not act under this paragraph until at least
180 days after the department disapproved the alternative.

(2)  The basin is subject to paragraph (1) of subdivision (a) of
Section 10720.7, and after January 31, 2020, none of the following
have occurred:

(A)  A groundwater sustainability agency has adopted a
groundwater sustainability plan for the entire basin.

(B)  A collection of local agencies has adopted groundwater
sustainability plans that collectively serve as a groundwater
sustainability plan for the entire basin.

(C) The department has approved an alternative pursuant to
Section 10733.6.

(3) The basin is subject to paragraph (1) of subdivision (a) of
Section 10720.7 and after January 31, 2020, the department, in
consultation with the board, determines that a groundwater
sustainability plan is inadequate or that the groundwater
sustainability program is not being implemented in a manner that
will likely achieve the sustainability goal.

(4) The basin is subject to paragraph (2) of subdivision (a) of
Section 10720.7, and after January 31, 2022, none of the following
have occurred:

(A) A groundwater sustainability agency has adopted a
groundwater sustainability plan for the entire basin.

(B) A collection of local agencies has adopted groundwater
sustainability plans that collectively serve as a groundwater
sustainability plan for the entire basin.

(C) The department has approved an alternative pursuant to
Section 10733.6.

(5) The basin is subject to paragraph (2) of subdivision (a) of
Section 10720.7, and either of the following have occurred:

(A) After January 31, 2022, both of the following have occurred:

(i) The department, in consultation with the board, determines
that a groundwater sustainability plan is inadequate or that the
groundwater sustainability plan is not being implemented in a
manner that will likely achieve the sustainability goal.

(ii) The board determines that the basin is in a condition of
long-term overdraft.

(B) After January 31, 2025, both of the following have occurred:

(i) The department, in consultation with the board, determines
that a groundwater sustainability plan is inadequate or that the
groundwater sustainability plan is not being implemented in a
manner that will likely achieve the sustainability goal.

(ii) The board determines that the basin is in a condition where
groundwater extractions result in significant depletions of
interconnected surface waters.

(b) In making the findings associated with paragraph (3) or (5)
of subdivision (a), the department and board may rely on periodic
assessments the department has prepared pursuant to Chapter 10
(commencing with Section 10733). The board may request that
the department conduct additional assessments utilizing the
regulations developed pursuant to Chapter 10 (commencing with
Section 10733) and make determinations pursuant to this section.
The board shall post on its Internet Web site and provide at least
30 days for the public to comment on any determinations provided
by the department pursuant to this subdivision.

(c) (1) ? The determination may exclude a class or category of
extractions from the requirement for reporting pursuant to Part 5.2
(commencing with Section 5200) of Division 2 if those extractions
are subject to a local plan or program that adequately manages
groundwater within the portion of the basin to which that plan or
program applies, or if those extractions are likely to have a minimal
impact on basin withdrawals.

(2) The determination may require reporting of a class or
category of extractions that would otherwise be exempt from
reporting pursuant to paragraph (1) of subdivision (c) of Section
5202 if those extractions are likely to have a substantial impact on
basin withdrawals or requiring reporting of those extractions is
reasonably necessary to obtain information for purposes of this
chapter.

(3) The determination may establish requirements for
information required to be included in reports of groundwater
extraction, for installation of measuring devices, or for use of a
methodology, measuring device, or both, pursuant to Part 5.2
(commencing with Section 5200) of Division 2.

(4) The determination may modify the water year or reporting
date for a report of groundwater extraction pursuant to Section
5202.

(d) If the board finds that litigation challenging the formation
of a groundwater sustainability agency prevented its formation
before July 1, 2017, pursuant to paragraph (1) of subdivision (a),
or prevented a groundwater sustainability program from being
implemented in a manner likely to achieve the sustainability goal
pursuant to paragraph (3), (4), or (5) of subdivision (a), the board
shall not designate a basin as a probationary basin for a period of
time equal to the delay caused by the litigation.

(e) The board shall exclude from probationary status any portion
of a basin for which a groundwater sustainability agency
demonstrates compliance with the sustainability goal.

begin delete SEC. 546. end delete
begin insert SEC. 553. end insert   

Section 12585.12 of the Water Code, as added by
Section 28 of Chapter 366 of the Statutes of 2007, is repealed.

begin delete SEC. 547. end delete
begin insert SEC. 554. end insert   

Section 12938.2 of the Water Code, as added by
Section 29 of Chapter 652 of the Statutes of 1991, is amended and
renumbered to read:

12938.3.  

Notwithstanding any other provision of this bond act,
or of the State General Obligation Bond Law (Chapter 4
(commencing with Section 16720) of Part 3 of Division 4 of Title
2 of the Government Code), if the Treasurer sells bonds pursuant
to this bond act that include a bond counsel opinion to the effect
that the interest on the bonds is excluded from gross income for
federal tax purposes under designated conditions, the Treasurer
may maintain separate accounts for the bond proceeds invested
and the investment earnings on those proceeds, and may use or
direct the use of those proceeds or earnings to pay any rebate,
penalty, or other payment required under federal law, or take any
other action with respect to the investment and use of those bond
proceeds, as may be required or desirable under federal law in
order to maintain the tax-exempt status of those bonds and to obtain
any other advantage under federal law on behalf of the funds of
this state.

begin delete SEC. 548. end delete
begin insert SEC. 555. end insert   

Section 13272.1 of the Water Code, as added by
Section 12 of Chapter 814 of the Statutes of 1997, is repealed.

begin delete SEC. 549. end delete
begin insert SEC. 556. end insert   

Section 20560.2 of the Water Code is amended to
read:

20560.2.  

In the case of any district that owns and operates
facilities for the generation, transmission, distribution, and retail
sale of electric power, the district shall give notice to the California
Debt and Investment Advisory Commission, at least 30 days prior
to the proposed sale date, of the proposed sale of any evidence of
indebtedness issued to provide financing of any works of the
district. The notice shall include the information required by
subdivision (i) of Section 8855 of the Government Code. Failure
to give this notice shall render the sale invalid. The California Debt
and Investment Advisory Commission may waive the 30-day notice
period upon application by the district.

In carrying out the purpose of this section, the California Debt
and Investment Advisory Commission may charge fees payable
solely from the proceeds of the sale of the debt issue in an amount
equal to one-fortieth of 1 percent of the principal amount of the
issue, but not to exceed five thousand dollars ($5,000) for any one
issue.

The bonds shall be legal investments for all trust funds, for the
funds of all insurance companies, commercial banks, savings
banks, trust companies, the state school funds, and for any funds
which may be invested in bonds of cities, cities and counties,
counties, school districts, or municipalities in the state.

begin delete SEC. 550. end delete
begin insert SEC. 557. end insert   

Section 21065 of the Water Code is amended and
renumbered to read:

21605.  

(a) Notwithstanding any other provision of law,
subdivision (b) applies to districts in which directors are elected
by divisions.

(b) The board of directors shall, by resolution, adjust the
boundaries of any divisions pursuant to Chapter 8 (commencing
with Section 22000) of Division 21 of the Elections Code.

begin delete SEC. 551. end delete
begin insert SEC. 558. end insert   

Section 21562.5 of the Water Code, as added by
Section 3 of Chapter 1134 of the Statutes of 1994, is repealed.

begin delete SEC. 552. end delete
begin insert SEC. 559. end insert   

The heading of Article 5 (commencing with Section
36459) of Chapter 6 of Part 6 of Division 13 of the Water Code is
repealed.

begin delete SEC. 553. end delete
begin insert SEC. 560. end insert   

Section 37921 of the Water Code is amended to
read:

37921.  

The board may adopt ordinances for the purpose of
regulating, conserving, managing, and controlling the use and
extraction of groundwater within the territory of the district. All
ordinances shall be adopted, after noticed public hearings, by a
majority vote of the board. Notice of the adoption of all ordinances
shall be given. The ordinances of the district shall become effective
on the 31st day after adoption except that the board may, by the
vote of at least four members of the board, dispense with notice
of public hearing and adopt an emergency ordinance that shall
become effective immediately upon adoption, if the board
determines that the public health, safety, or welfare so requires.

begin delete SEC. 554. end delete
begin insert SEC. 561. end insert   

Section 37954 of the Water Code is amended to
read:

37954.  

The district may, by ordinance, require the operator of
each extraction facility to file semiannually, or more frequently,
with the district, a groundwater extraction statement that contains,
but is not limited to, the following information:

(a) Total extraction in acre-feet of water from the extraction
facility for the preceding groundwater extraction statement period.

(b) The static groundwater level for the extraction facility.

(c) A description of the location of the extraction facility.

(d) The crop types or other uses and the acreage served by the
extraction facility.

(e) The method of measuring or computing groundwater
extraction.

(f) Other information deemed reasonable and necessary by the
board to meet the purposes of this act.

begin delete SEC. 555. end delete
begin insert SEC. 562. end insert   

The heading of Article 1 (commencing with Section
42500) of Chapter 3 of Part 5 of Division 14 of the Water Code is
repealed.

begin delete SEC. 556. end delete
begin insert SEC. 563. end insert   

Section 73502 of the Water Code is amended to
read:

73502.  

(a) The city, on or before February 1, 2003, shall adopt
the program of capital improvement projects designed to restore
and improve the bay area regional water system that are described
in the capital improvement program report prepared by the San
Francisco Public Utilities Commission dated February 25, 2002.
A copy of the program shall be submitted, on or before March 1,
2003, to the State Water Resources Control Board. The program
shall include a schedule for the completion of design and award
of contract, and commencement and completion of construction
of each described project. The schedule shall require that projects
representing 50 percent of the total program cost be completed on
or before 2010 and that projects representing 100 percent of the
total program cost be completed on or before 2015. The program
shall also contain a financing plan. The city shall review and update
the program, as necessary, based on changes in the schedule set
forth in the plan adopted pursuant to subdivision (d).

(b) The plan shall require completion of the following projects:

 

Project	Location	Project Identification Number
1. Irvington Tunnel Alternative	Alameda/Santa  Clara Counties	9970
2. Crystal Springs Pump Station   & Pipeline	San Mateo County	201671
3. BDPL 1 & 2-Repair of   Caissons/Pipe Bridge	Alameda/San Mateo Counties	99
4. BDPL Pipeline Upgrades at   Hayward Fault	Alameda County	128
5. Calaveras Fault Crossing   Upgrade	Alameda County	9897
6. Crystal Springs Bypass   Pipeline	San Mateo County	9891
7. BDPL Cross Connections 3 &   4	Alameda/Santa  Clara Counties	202339
8. Conveyance Capacity West of   Irvington Tunnel	Alameda/Santa Clara/San Mateo  Counties	201441
9. Calaveras Dam Seismic   Improvements	Alameda County	202135

 

 

(c) The city shall submit a report to the Joint Legislative Audit
Committee, the Alfred E. Alquist Seismic Safety Commission,
and the State Water Resources Control Board, on or before
September 1 of each year, describing the progress made on the
implementation of the capital improvement program for the bay
area regional water system during the previous fiscal year. The
city shall identify in the report any project that is behind schedule,
and, for each project so identified, shall describe the city’s plan
and timeline for either making up the delay or adopting a revised
schedule pursuant to subdivision (d).

(d) (1) The city may determine that completion dates for
projects contained in the capital improvement program adopted
pursuant to subdivision (a), including those projects described in
subdivision (b), should be delayed or that different projects should
be constructed.

(2) The city shall provide written notice, not less than 30 days
before the date of a meeting of the city agency responsible for
management of the bay area regional water system, that a change
in the program is to be considered. The notice shall include
information about the reason for the proposed change and the
availability of materials related to the proposed change. All bay
area wholesale customers shall be permitted to testify or otherwise
submit comments at the meeting.

(3) If the city adopts a change in the program that deletes one
or more projects from the program, or postpones the scheduled
completion dates, the city shall promptly furnish a copy of that
change and the reasons for that change to the State Water Resources
Control Board and the Alfred E. Alquist Seismic Safety
Commission. The State Water Resources Control Board and the
Alfred E. Alquist Seismic Safety Commission shall each submit
written comments with regard to the significance of that change
with respect to public health and safety to the city and the Joint
Legislative Audit Committee not later than 120 days after the date
on which those entities received notice of that change.

begin delete SEC. 557. end delete
begin insert SEC. 564. end insert   

Section 213.5 of the Welfare and Institutions Code
is amended to read:

213.5.  

(a) After a petition has been filed pursuant to Section
311 to declare a child a dependent child of the juvenile court, and
until the time that the petition is dismissed or dependency is
terminated, upon application in the manner provided by Section
527 of the Code of Civil Procedure or in the manner provided by
Section 6300 of the Family Code, if related to domestic violence,
the juvenile court has exclusive jurisdiction to issue ex parte orders
(1) enjoining a person from molesting, attacking, striking, stalking,
threatening, sexually assaulting, battering, harassing, telephoning,
including, but not limited to, making annoying telephone calls as
described in Section 653m of the Penal Code, destroying the
personal property, contacting, either directly or indirectly, by mail
or otherwise, coming within a specified distance of, or disturbing
the peace of the child or any other child in the household; and (2)
excluding a person from the dwelling of the person who has care,
custody, and control of the child. A court may also issue an ex
parte order enjoining a person from molesting, attacking, striking,
stalking, threatening, sexually assaulting, battering, harassing,
telephoning, including, but not limited to, making annoying
telephone calls as described in Section 653m of the Penal Code,
destroying the personal property, contacting, either directly or
indirectly, by mail or otherwise, coming within a specified distance
of, or disturbing the peace of any parent, legal guardian, or current
caretaker of the child, regardless of whether the child resides with
that parent, legal guardian, or current caretaker, upon application
in the manner provided by Section 527 of the Code of Civil
Procedure or, if related to domestic violence, in the manner
provided by Section 6300 of the Family Code. A court may also
issue an ex parte order enjoining a person from molesting,
attacking, striking, stalking, threatening, sexually assaulting,
battering, harassing, telephoning, including, but not limited to,
making annoying telephone calls as described in Section 653m of
the Penal Code, destroying the personal property, contacting, either
directly or indirectly, by mail or otherwise, coming within a
specified distance of, or disturbing the peace of the child’s current
or former social worker or court appointed special advocate, upon
application in the manner provided by Section 527 of the Code of
Civil Procedure.

(b) After a petition has been filed pursuant to Section 601 or
602 to declare a child a ward of the juvenile court, and until the
time that the petition is dismissed or wardship is terminated, upon
application in the manner provided by Section 527 of the Code of
Civil Procedure or, if related to domestic violence, in the manner
provided by Section 6300 of the Family Code, the juvenile court
may issue ex parte orders (1) enjoining a person from molesting,
attacking, striking, stalking, threatening, sexually assaulting,
battering, harassing, telephoning, including, but not limited to,
making annoying telephone calls as described in Section 653m of
the Penal Code, destroying the personal property, contacting, either
directly or indirectly, by mail or otherwise, coming within a
specified distance of, or disturbing the peace of the child or any
other child in the household; (2) excluding a person from the
dwelling of the person who has care, custody, and control of the
child; or (3) enjoining the child from contacting, threatening,
stalking, or disturbing the peace of any person the court finds to
be at risk from the conduct of the child, or with whom association
would be detrimental to the child. A court may also issue an ex
parte order enjoining a person from molesting, attacking, striking,
stalking, threatening, sexually assaulting, battering, harassing,
telephoning, including, but not limited to, making annoying
telephone calls as described in Section 653m of the Penal Code,
destroying the personal property, contacting, either directly or
indirectly, by mail or otherwise, coming within a specified distance
of, or disturbing the peace of a parent, legal guardian, or current
caretaker of the child, regardless of whether the child resides with
that parent, legal guardian, or current caretaker, upon application
in the manner provided by Section 527 of the Code of Civil
Procedure or, if related to domestic violence, in the manner
provided by Section 6300 of the Family Code. A court may also
issue an ex parte order enjoining a person from molesting,
attacking, striking, stalking, threatening, sexually assaulting,
battering, harassing, telephoning, including, but not limited to,
making annoying telephone calls as described in Section 653m of
the Penal Code, destroying the personal property, contacting, either
directly or indirectly, by mail or otherwise, coming within a
specified distance of, or disturbing the peace of the child’s current
or former probation officer or court appointed special advocate,
upon application in the manner provided by Section 527 of the
Code of Civil Procedure.

(c) If a temporary restraining order is granted without notice,
the matter shall be made returnable on an order requiring cause to
be shown why the order should not be granted, on the earliest day
that the business of the court will permit, but not later than 21 days
or, if good cause appears to the court, 25 days from the date the
temporary restraining order is granted. The court may, on the
motion of the person seeking the restraining order, or on its own
motion, shorten the time for service of the order to show cause on
the person to be restrained. The court may, upon its own motion
or the filing of a declaration by the person seeking the restraining
order, find that the person to be restrained could not be served
within the time required by law and reissue an order previously
issued and dissolved by the court for failure to serve the person to
be restrained. The reissued order shall remain in effect until the
date set for the hearing. The reissued order shall state on its face
the date of expiration of the order. Any hearing pursuant to this
section may be held simultaneously with any regularly scheduled
hearings held in proceedings to declare a child a dependent child
or ward of the juvenile court pursuant to Section 300, 601, or 602,
or subsequent hearings regarding the dependent child or ward.

(d) (1) The juvenile court may issue, upon notice and a hearing,
any of the orders set forth in subdivisions (a), (b), and (c). A
restraining order granted pursuant to this subdivision shall remain
in effect, in the discretion of the court, no more than three years,
unless otherwise terminated by the court, extended by mutual
consent of all parties to the restraining order, or extended by further
order of the court on the motion of a party to the restraining order.

(2) If an action is filed for the purpose of terminating or
modifying a protective order prior to the expiration date specified
in the order by a party other than the protected party, the party
who is protected by the order shall be given notice, pursuant to
subdivision (b) of Section 1005 of the Code of Civil Procedure,
of the proceeding by personal service or, if the protected party has
satisfied the requirements of Chapter 3.1 (commencing with
Section 6205) of Division 7 of Title 1 of the Government Code,
by service on the Secretary of State. If the party who is protected
by the order cannot be notified prior to the hearing for modification
or termination of the protective order, the juvenile court shall deny
the motion to modify or terminate the order without prejudice or
continue the hearing until the party who is protected can be
properly noticed and may, upon a showing of good cause, specify
another method for service of process that is reasonably designed
to afford actual notice to the protected party. The protected party
may waive his or her right to notice if he or she is physically
present and does not challenge the sufficiency of the notice.

(e) (1) The juvenile court may issue an order made pursuant to
subdivision (a), (b), or (d) excluding a person from a residence or
dwelling. This order may be issued for the time and on the
conditions that the court determines, regardless of which party
holds legal or equitable title or is the lessee of the residence or
dwelling.

(2) The court may issue an order under paragraph (1) only on
a showing of all of the following:

(A) Facts sufficient for the court to ascertain that the party who
will stay in the dwelling has a right under color of law to possession
of the premises.

(B) That the party to be excluded has assaulted or threatens to
assault the other party or any other person under the care, custody,
and control of the other party, or a minor child of the parties or of
the other party.

(C) That physical or emotional harm would otherwise result to
the other party, to a person under the care, custody, and control of
the other party, or to a minor child of the parties or of the other
party.

(f) An order issued pursuant to subdivision (a), (b), (c), or (d)
shall state on its face the date of expiration of the order.

(g) All data with respect to a juvenile court protective order, or
extension, modification, or termination thereof, granted pursuant
to subdivision (a), (b), (c), or (d), shall be transmitted by the court
or its designee, within one business day, to law enforcement
personnel by either one of the following methods:

(1) Transmitting a physical copy of the order to a local law
enforcement agency authorized by the Department of Justice to
enter orders into the California Law Enforcement
Telecommunications System (CLETS).

(2) With the approval of the Department of Justice, entering the
order into CLETS directly.

(h) A willful and knowing violation of an order granted pursuant
to subdivision (a), (b), (c), or (d) is a misdemeanor punishable
under Section 273.65 of the Penal Code.

(i) A juvenile court restraining order related to domestic violence
issued by a court pursuant to this section shall be issued on forms
adopted by the Judicial Council and that have been approved by
the Department of Justice pursuant to subdivision (i) of Section
6380 of the Family Code. However, the fact that an order issued
by a court pursuant to this section was not issued on forms adopted
by the Judicial Council and approved by the Department of Justice
shall not, in and of itself, make the order unenforceable.

(j) (1) Prior to a hearing on the issuance or denial of an order
under this part, a search shall be conducted as described in
subdivision (a) of Section 6306 of the Family Code.

(2) Prior to deciding whether to issue an order under this part,
the court shall consider the following information obtained pursuant
to a search conducted under paragraph (1): a conviction for a
violent felony specified in Section 667.5 of the Penal Code or a
serious felony specified in Section 1192.7 of the Penal Code; a
misdemeanor conviction involving domestic violence, weapons,
or other violence; an outstanding warrant; parole or probation
status; a prior restraining order; and a violation of a prior
restraining order.

(3) (A) If the results of the search conducted pursuant to
paragraph (1) indicate that an outstanding warrant exists against
the subject of the search, the court shall order the clerk of the court
to immediately notify, by the most effective means available,
appropriate law enforcement officials of information obtained
through the search that the court determines is appropriate. The
law enforcement officials notified shall take all actions necessary
to execute outstanding warrants or any other actions, as appropriate
and as soon as practicable.

(B) If the results of the search conducted pursuant to paragraph
(1) indicate that the subject of the search is currently on parole or
probation, the court shall order the clerk of the court to immediately
notify, by the most effective means available, the appropriate parole
or probation officer of information obtained through the search
that the court determines is appropriate. The parole or probation
officer notified shall take all actions necessary to revoke any parole
or probation, or any other actions, with respect to the subject
person, as appropriate and as soon as practicable.

(k) Upon making an order for custody or visitation pursuant to
this section, the court shall follow the procedures specified in
subdivisions (c) and (d) of Section 6323 of the Family Code.

begin delete SEC. 558. end delete
begin insert SEC. 565. end insert   

Section 258 of the Welfare and Institutions Code is
amended to read:

258.  

(a) Upon a hearing conducted in accordance with Section
257, and upon either an admission by the minor of the commission
of a violation charged, or a finding that the minor did in fact
commit the violation, the judge, referee, or juvenile hearing officer
may do any of the following:

(1) Reprimand the minor and take no further action.

(2) Direct that the probation officer undertake a program of
supervision of the minor for a period not to exceed six months, in
addition to or in place of the following orders.

(3) Order that the minor pay a fine up to the amount that an
adult would pay for the same violation, unless the violation is
otherwise specified within this section, in which case the fine shall
not exceed two hundred fifty dollars ($250). This fine may be
levied in addition to or in place of the following orders and the
court may waive any or all of this fine, if the minor is unable to
pay. In determining the minor’s ability to pay, the court shall not
consider the ability of the minor’s family to pay.

(4) Subject to the minor’s right to a restitution hearing, order
that the minor pay restitution to the victim, in lieu of all or a portion
of the fine specified in paragraph (3). The total dollar amount of
the fine, restitution, and any program fees ordered pursuant to
paragraph (9) shall not exceed the maximum amount which may
be ordered pursuant to paragraph (3). This paragraph shall not be
construed to limit the right to recover damages, less any amount
actually paid in restitution, in a civil action.

(5) Order that the driving privileges of the minor be suspended
or restricted as provided in the Vehicle Code or, notwithstanding
Section 13203 of the Vehicle Code or any other provision of law,
when the Vehicle Code does not provide for the suspension or
restriction of driving privileges, that, in addition to any other order,
the driving privileges of the minor be suspended or restricted for
a period of not to exceed 30 days.

(6) In the case of a traffic related offense, order the minor to
attend a licensed traffic school, or other court approved program
of traffic school instruction pursuant to Chapter 1.5 (commencing
with Section 11200) of Division 5 of the Vehicle Code, to be
completed by the juvenile within 60 days of the court order.

(7) Order that the minor produce satisfactory evidence that the
vehicle or its equipment has been made to conform with the
requirements of the Vehicle Code pursuant to Section 40150 of
the Vehicle Code if the violation involved an equipment violation.

(8) Order that the minor perform community service work in a
public entity or any private nonprofit entity, for not more than 50
hours over a period of 60 days, during times other than his or her
hours of school attendance or employment. Work performed
pursuant to this paragraph shall not exceed 30 hours during any
30-day period. The timeframes established by this paragraph shall
not be modified except in unusual cases where the interests of
justice would best be served. When the order to work is made by
a referee or a juvenile hearing officer, it shall be approved by a
judge of the juvenile court.

For purposes of this paragraph, a judge, referee, or juvenile
hearing officer shall not, without the consent of the minor, order
the minor to perform work with a private nonprofit entity that is
affiliated with any religion.

(9) In the case of a misdemeanor, order that the minor participate
in and complete a counseling or educational program, or, if the
offense involved a violation of a controlled substance law, a drug
treatment program, if those programs are available. Fees for
participation shall be subject to the right to a hearing as the minor’s
ability to pay and shall not, together with any fine or restitution
order, exceed the maximum amount that may be ordered pursuant
to paragraph (3).

(10) Require that the minor attend a school program without
unexcused absence.

(11) If the offense is a misdemeanor committed between 10
p.m. and 6 a.m., require that the minor be at his or her legal
residence at hours to be specified by the juvenile hearing officer
between the hours of 10 p.m. and 6 a.m., except for a medical or
other emergency, unless the minor is accompanied by his or her
parent, guardian, or other person in charge of the minor. The
maximum length of an order made pursuant to this paragraph shall
be six months from the effective date of the order.

(12) Make any or all of the following orders with respect to a
violation of the Fish and Game Code which is not charged as a
felony:

(A) That the fishing or hunting license involved be suspended
or restricted.

(B) That the minor work in a park or conservation area for a
total of not to exceed 20 hours over a period not to exceed 30 days,
during times other than his or her hours of school attendance or
employment.

(C) That the minor forfeit, pursuant to Section 12157 of the Fish
and Game Code, any device or apparatus designed to be, and
capable of being, used to take birds, mammals, fish, reptiles, or
amphibia and that was used in committing the violation charged.
The judge, referee, or juvenile hearing officer shall, if the minor
committed an offense that is punishable under Section 12008 of
the Fish and Game Code, order the device or apparatus forfeited
pursuant to Section 12157 of the Fish and Game Code.

(13) If the violation charged is of an ordinance of a city, county,
or local agency relating to loitering, curfew, or fare evasion on a
public transportation system, as defined by Section 99211 of the
Public Utilities Code, or is a violation of Section 640 or 640a of
the Penal Code, make the order that the minor shall perform
community service for a total time not to exceed 20 hours over a
period not to exceed 30 days, during times other than his or her
hours of school attendance or employment.

(b) If the minor is before the court on the basis of truancy, as
described in subdivision (b) of Section 601, all of the following
procedures and limitations shall apply:

(1) The judge, referee, or juvenile hearing officer shall not
proceed with a hearing unless both of the following have been
provided to the court:

(A) Evidence that the minor’s school has undertaken the actions
specified in subdivisions (a), (b), and (c) of Section 48264.5 of the
Education Code. If the school district does not have an attendance
review board, as described in Section 48321 of the Education Code,
the minor’s school is not required to provide evidence to the court
of any actions the school has undertaken that demonstrate the
intervention of a school attendance review board.

(B) The available record of previous attempts to address the
minor’s truancy.

(2) The court is encouraged to set the hearing outside of school
hours, so as to avoid causing the minor to miss additional school
time.

(3) Pursuant to paragraph (1) of subdivision (a) of Section 257,
the minor and his or her parents shall be advised of the minor’s
right to refuse consent to a hearing conducted upon a written notice
to appear.

(4) The minor’s parents shall be permitted to participate in the
hearing.

(5) The judge, referee, or juvenile hearing officer may continue
the hearing to allow the minor the opportunity to demonstrate
improved attendance before imposing any of the orders specified
in paragraph (6). Upon demonstration of improved attendance, the
court may dismiss the case.

(6) Upon a finding that the minor violated subdivision (b) of
Section 601, the judge, referee, or juvenile hearing officer shall
direct his or her orders at improving the minor’s school attendance.
The judge, referee, or juvenile hearing officer may do any of the
following:

(A) Order the minor to perform community service work, as
described in Section 48264.5 of the Education Code, which may
be performed at the minor’s school.

(B) Order the payment of a fine by the minor of not more than
fifty dollars ($50), for which a parent or legal guardian of the minor
may be jointly liable. The fine described in this subparagraph shall
not be subject to Section 1464 of the Penal Code or additional
penalty pursuant to any other law. The minor, at his or her
discretion, may perform community service, as described in
subparagraph (A), in lieu of any fine imposed under this
subparagraph.

(C) Order a combination of community service work described
in subparagraph (A) and payment of a portion of the fine described
in subparagraph (B).

(D) Restrict driving privileges in the manner set forth in
paragraph (5) of subdivision (a). The minor may request removal
of the driving restrictions if he or she provides proof of school
attendance, high school graduation, GED completion, or enrollment
in adult education, a community college, or a trade program. Any
driving restriction shall be removed at the time the minor attains
18 years of age.

(c) (1) The judge, referee, or juvenile hearing officer shall retain
jurisdiction of the case until all orders made under this section
have been fully complied with.

(2) If a minor is before the judge, referee, or juvenile hearing
officer on the basis of truancy, jurisdiction shall be terminated
upon the minor attaining 18 years of age.

begin delete SEC. 559. end delete
begin insert SEC. 566. end insert   

Section 300 of the Welfare and Institutions Code is
amended to read:

300.  

A child who comes within any of the following
descriptions is within the jurisdiction of the juvenile court which
may adjudge that person to be a dependent child of the court:

(a) The child has suffered, or there is a substantial risk that the
child will suffer, serious physical harm inflicted nonaccidentally
upon the child by the child’s parent or guardian. For purposes of
this subdivision, a court may find there is a substantial risk of
serious future injury based on the manner in which a less serious
injury was inflicted, a history of repeated inflictions of injuries on
the child or the child’s siblings, or a combination of these and other
actions by the parent or guardian that indicate the child is at risk
of serious physical harm. For purposes of this subdivision, “serious
physical harm” does not include reasonable and age-appropriate
spanking to the buttocks if there is no evidence of serious physical
injury.

(b)  (1)  The child has suffered, or there is a substantial risk
that the child will suffer, serious physical harm or illness, as a
result of the failure or inability of his or her parent or guardian to
adequately supervise or protect the child, or the willful or negligent
failure of the child’s parent or guardian to adequately supervise
or protect the child from the conduct of the custodian with whom
the child has been left, or by the willful or negligent failure of the
parent or guardian to provide the child with adequate food,
clothing, shelter, or medical treatment, or by the inability of the
parent or guardian to provide regular care for the child due to the
parent’s or guardian’s mental illness, developmental disability, or
substance abuse. A child shall not be found to be a person described
by this subdivision solely due to the lack of an emergency shelter
for the family. Whenever it is alleged that a child comes within
the jurisdiction of the court on the basis of the parent’s or
guardian’s willful failure to provide adequate medical treatment
or specific decision to provide spiritual treatment through prayer,
the court shall give deference to the parent’s or guardian’s medical
treatment, nontreatment, or spiritual treatment through prayer alone
in accordance with the tenets and practices of a recognized church
or religious denomination, by an accredited practitioner thereof,
and shall not assume jurisdiction unless necessary to protect the
child from suffering serious physical harm or illness. In making
its determination, the court shall consider (1) the nature of the
treatment proposed by the parent or guardian, (2) the risks to the
child posed by the course of treatment or nontreatment proposed
by the parent or guardian, (3) the risk, if any, of the course of
treatment being proposed by the petitioning agency, and (4) the
likely success of the courses of treatment or nontreatment proposed
by the parent or guardian and agency. The child shall continue to
be a dependent child pursuant to this subdivision only so long as
is necessary to protect the child from risk of suffering serious
physical harm or illness.

(2) The Legislature finds and declares that a child who is
sexually trafficked, as described in Section 236.1 of the Penal
Code, or who receives food or shelter in exchange for, or who is
paid to perform, sexual acts described in Section 236.1 or 11165.1
of the Penal Code, and whose parent or guardian failed to, or was
unable to, protect the child, is within the description of this
subdivision, and that this finding is declaratory of existing law.
These children shall be known as commercially sexually exploited
children.

(c) The child is suffering serious emotional damage, or is at
substantial risk of suffering serious emotional damage, evidenced
by severe anxiety, depression, withdrawal, or untoward aggressive
behavior toward self or others, as a result of the conduct of the
parent or guardian or who has no parent or guardian capable of
providing appropriate care. A child shall not be found to be a
person described by this subdivision if the willful failure of the
parent or guardian to provide adequate mental health treatment is
based on a sincerely held religious belief and if a less intrusive
judicial intervention is available.

(d) The child has been sexually abused, or there is a substantial
risk that the child will be sexually abused, as defined in Section
11165.1 of the Penal Code, by his or her parent or guardian or a
member of his or her household, or the parent or guardian has
failed to adequately protect the child from sexual abuse when the
parent or guardian knew or reasonably should have known that
the child was in danger of sexual abuse.

(e) The child is under the age of five years and has suffered
severe physical abuse by a parent, or by any person known by the
parent, if the parent knew or reasonably should have known that
the person was physically abusing the child. For the purposes of
this subdivision, “severe physical abuse” means any of the
following: any single act of abuse which causes physical trauma
of sufficient severity that, if left untreated, would cause permanent
physical disfigurement, permanent physical disability, or death;
any single act of sexual abuse which causes significant bleeding,
deep bruising, or significant external or internal swelling; or more
than one act of physical abuse, each of which causes bleeding,
deep bruising, significant external or internal swelling, bone
fracture, or unconsciousness; or the willful, prolonged failure to
provide adequate food. A child shall not be removed from the
physical custody of his or her parent or guardian on the basis of a
finding of severe physical abuse unless the social worker has made
an allegation of severe physical abuse pursuant to Section 332.

(f) The child’s parent or guardian caused the death of another
child through abuse or neglect.

(g) The child has been left without any provision for support;
physical custody of the child has been voluntarily surrendered
pursuant to Section 1255.7 of the Health and Safety Code and the
child has not been reclaimed within the 14-day period specified
in subdivision (g) of that section; the child’s parent has been
incarcerated or institutionalized and cannot arrange for the care of
the child; or a relative or other adult custodian with whom the child
resides or has been left is unwilling or unable to provide care or
support for the child, the whereabouts of the parent are unknown,
and reasonable efforts to locate the parent have been unsuccessful.

(h) The child has been freed for adoption by one or both parents
for 12 months by either relinquishment or termination of parental
rights or an adoption petition has not been granted.

(i) The child has been subjected to an act or acts of cruelty by
the parent or guardian or a member of his or her household, or the
parent or guardian has failed to adequately protect the child from
an act or acts of cruelty when the parent or guardian knew or
reasonably should have known that the child was in danger of
being subjected to an act or acts of cruelty.

(j) The child’s sibling has been abused or neglected, as defined
in subdivision (a), (b), (d), (e), or (i), and there is a substantial risk
that the child will be abused or neglected, as defined in those
subdivisions. The court shall consider the circumstances
surrounding the abuse or neglect of the sibling, the age and gender
of each child, the nature of the abuse or neglect of the sibling, the
mental condition of the parent or guardian, and any other factors
the court considers probative in determining whether there is a
substantial risk to the child.

It is the intent of the Legislature that this section not disrupt the
family unnecessarily or intrude inappropriately into family life,
prohibit the use of reasonable methods of parental discipline, or
prescribe a particular method of parenting. Further, this section is
not intended to limit the offering of voluntary services to those
families in need of assistance but who do not come within the
descriptions of this section. To the extent that savings accrue to
the state from child welfare services funding obtained as a result
of the enactment of the act that enacted this section, those savings
shall be used to promote services which support family
maintenance and family reunification plans, such as client
transportation, out-of-home respite care, parenting training, and
the provision of temporary or emergency in-home caretakers and
persons teaching and demonstrating homemaking skills. The
Legislature further declares that a physical disability, such as
blindness or deafness, is no bar to the raising of happy and
well-adjusted children and that a court’s determination pursuant
to this section shall center upon whether a parent’s disability
prevents him or her from exercising care and control. The
Legislature further declares that a child whose parent has been
adjudged a dependent child of the court pursuant to this section
shall not be considered to be at risk of abuse or neglect solely
because of the age, dependent status, or foster care status of the
parent.

As used in this section, “guardian” means the legal guardian of
the child.

begin delete SEC. 560. end delete
begin insert SEC. 567. end insert   

Section 319 of the Welfare and Institutions Code is
amended to read:

319.  

(a) At the initial petition hearing, the court shall examine
the child’s parents, guardians, or other persons having relevant
knowledge and hear the relevant evidence as the child, the child’s
parents or guardians, the petitioner, or their counsel desires to
present. The court may examine the child, as provided in Section
350.

(b) The social worker shall report to the court on the reasons
why the child has been removed from the parent’s physical custody,
the need, if any, for continued detention, the available services
and the referral methods to those services that could facilitate the
return of the child to the custody of the child’s parents or guardians,
and whether there are any relatives who are able and willing to
take temporary physical custody of the child. The court shall order
the release of the child from custody unless a prima facie showing
has been made that the child comes within Section 300, the court
finds that continuance in the parent’s or guardian’s home is
contrary to the child’s welfare, and any of the following
circumstances exist:

(1) There is a substantial danger to the physical health of the
child or the child is suffering severe emotional damage, and there
are no reasonable means by which the child’s physical or emotional
health may be protected without removing the child from the
parent’s or guardian’s physical custody.

(2) There is substantial evidence that a parent, guardian, or
custodian of the child is likely to flee the jurisdiction of the court.

(3) The child has left a placement in which he or she was placed
by the juvenile court.

(4) The child indicates an unwillingness to return home, if the
child has been physically or sexually abused by a person residing
in the home.

(c) If the matter is continued pursuant to Section 322 or for any
other reason, the court shall find that the continuance of the child
in the parent’s or guardian’s home is contrary to the child’s welfare
at the initial petition hearing or order the release of the child from
custody.

(d) (1) The court shall also make a determination on the record,
referencing the social worker’s report or other evidence relied
upon, as to whether reasonable efforts were made to prevent or
eliminate the need for removal of the child from his or her home,
pursuant to subdivision (b) of Section 306, and whether there are
available services that would prevent the need for further detention.
Services to be considered for purposes of making this determination
are case management, counseling, emergency shelter care,
emergency in-home caretakers, out-of-home respite care, teaching
and demonstrating homemakers, parenting training, transportation,
and any other child welfare services authorized by the State
Department of Social Services pursuant to Chapter 5 (commencing
with Section 16500) of Part 4 of Division 9. The court shall also
review whether the social worker has considered whether a referral
to public assistance services pursuant to Chapter 2 (commencing
with Section 11200) and Chapter 7 (commencing with Section
14000) of Part 3, Chapter 1 (commencing with Section 17000) of
Part 5, and Chapter 10 (commencing with Section 18900) of Part
6 of Division 9 would have eliminated the need to take temporary
custody of the child or would prevent the need for further detention.

(2) If the child can be returned to the custody of his or her parent
or guardian through the provision of those services, the court shall
place the child with his or her parent or guardian and order that
the services shall be provided. If the child cannot be returned to
the physical custody of his or her parent or guardian, the court
shall determine if there is a relative who is able and willing to care
for the child, and has been assessed pursuant to paragraph (1) of
subdivision (d) of Section 309.

(3) In order to preserve the bond between the child and the
parent and to facilitate family reunification, the court shall consider
whether the child can be returned to the custody of his or her parent
who is enrolled in a certified substance abuse treatment facility
that allows a dependent child to reside with his or her parent. The
fact that the parent is enrolled in a certified substance abuse
treatment facility that allows a dependent child to reside with his
or her parent shall not be, for that reason alone, prima facie
evidence of substantial danger. The court shall specify the factual
basis for its conclusion that the return of the child to the custody
of his or her parent would pose a substantial danger or would not
pose a substantial danger to the physical health, safety, protection,
or physical or emotional well-being of the child.

(e) If a court orders a child detained, the court shall state the
facts on which the decision is based, specify why the initial removal
was necessary, reference the social worker’s report or other
evidence relied upon to make its determination whether
continuance in the home of the parent or legal guardian is contrary
to the child’s welfare, order temporary placement and care of the
child to be vested with the county child welfare department pending
the hearing held pursuant to Section 355 or further order of the
court, and order services to be provided as soon as possible to
reunify the child and his or her family if appropriate.

(f) (1) If the child is not released from custody, the court may
order that the child shall be placed in the assessed home of a
relative, in an emergency shelter or other suitable licensed place,
in a place exempt from licensure designated by the juvenile court,
or in the assessed home of a nonrelative extended family member
as defined in Section 362.7 for a period not to exceed 15 judicial
days. A runaway and homeless youth shelter licensed by the State
Department of Social Services pursuant to Section 1502.35 of the
Health and Safety Code shall not be a placement option pursuant
to this section.

(2) As used in this section, “relative” means an adult who is
related to the child by blood, adoption, or affinity within the fifth
degree of kinship, including stepparents, stepsiblings, and all
relatives whose status is preceded by the words “great,”
“great-great,” or “grand,” or the spouse of any of these persons,
even if the marriage was terminated by death or dissolution.
However, only the following relatives shall be given preferential
consideration for placement of the child: an adult who is a
grandparent, aunt, uncle, or sibling of the child.

(3) The court shall consider the recommendations of the social
worker based on the assessment pursuant to paragraph (1) of
subdivision (d) of Section 309 of the relative’s home, including
the results of a criminal records check and prior child abuse
allegations, if any, prior to ordering that the child be placed with
a relative. The court shall order the parent to disclose to the social
worker the names, residences, and any known identifying
information of any maternal or paternal relatives of the child. The
social worker shall initiate the assessment pursuant to Section
361.3 of any relative to be considered for continuing placement.

(g) (1) At the initial hearing upon the petition filed in
accordance with subdivision (c) of Rule 5.520 of the California
Rules of Court or anytime thereafter up until the time that the
minor is adjudged a dependent child of the court or a finding is
made dismissing the petition, the court may temporarily limit the
right of the parent or guardian to make educational or
developmental services decisions for the child and temporarily
appoint a responsible adult to make educational or developmental
services decisions for the child if all of the following conditions
are found:

(A) The parent or guardian is unavailable, unable, or unwilling
to exercise educational or developmental services rights for the
child.

(B) The county placing agency has made diligent efforts to
locate and secure the participation of the parent or guardian in
educational or developmental services decisionmaking.

(C) The child’s educational and developmental services needs
cannot be met without the temporary appointment of a responsible
adult.

(2) If the court limits the parent’s educational rights under this
subdivision, the court shall determine whether there is a responsible
adult who is a relative, nonrelative extended family member, or
other adult known to the child and who is available and willing to
serve as the child’s educational representative before appointing
an educational representative or surrogate who is not known to the
child.

(3) If the court cannot identify a responsible adult to make
educational decisions for the child and the appointment of a
surrogate parent, as defined in subdivision (a) of Section 56050
of the Education Code, is not warranted, the court may, with the
input of any interested person, make educational decisions for the
child. If the child is receiving services from a regional center, the
provision of any developmental services related to the court’s
decision shall be consistent with the child’s individual program
plan and pursuant to the provisions of the Lanterman
Developmental Disabilities Services Act (Division 4.5
(commencing with Section 4500)). If the court cannot identify a
responsible adult to make developmental services decisions for
the child, the court may, with the input of any interested person,
make developmental services decisions for the child. If the court
makes educational or developmental services decisions for the
child, the court shall also issue appropriate orders to ensure that
every effort is made to identify a responsible adult to make future
educational or developmental services decisions for the child.

(4) A temporary appointment of a responsible adult and
temporary limitation on the right of the parent or guardian to make
educational or developmental services decisions for the child shall
be specifically addressed in the court order. An order made under
this section shall expire at the conclusion of the hearing held
pursuant to Section 361 or upon dismissal of the petition. Upon
the entering of disposition orders, additional needed limitation on
the parent’s or guardian’s educational or developmental services
rights shall be addressed pursuant to Section 361.

(5) This section does not remove the obligation to appoint
surrogate parents for students with disabilities who are without
parental representation in special education procedures as required
by state and federal law, including Section 1415(b)(2) of Title 20
of the United States Code, Section 56050 of the Education Code,
Section 7579.5 of the Government Code, and Rule 5.650 of the
California Rules of Court.

(6) If the court appoints a developmental services decisionmaker
pursuant to this section, he or she shall have the authority to access
the child’s information and records pursuant to subdivision (u) of
Section 4514 and subdivision (y) of Section 5328, and to act on
the child’s behalf for the purposes of the individual program plan
process pursuant to Sections 4646, 4646.5, and 4648 and the fair
hearing process pursuant to Chapter 7 (commencing with Section
4700), and as set forth in the court order.

begin delete SEC. 561. end delete
begin insert SEC. 568. end insert   

Section 361.2 of the Welfare and Institutions Code
is amended to read:

361.2.  

(a) When a court orders removal of a child pursuant to
Section 361, the court shall first determine whether there is a parent
of the child, with whom the child was not residing at the time that
the events or conditions arose that brought the child within the
provisions of Section 300, who desires to assume custody of the
child. If that parent requests custody, the court shall place the child
with the parent unless it finds that placement with that parent would
be detrimental to the safety, protection, or physical or emotional
well-being of the child. The fact that the parent is enrolled in a
certified substance abuse treatment facility that allows a dependent
child to reside with his or her parent shall not be, for that reason
alone, prima facie evidence that placement with that parent would
be detrimental.

(b) If the court places the child with that parent it may do any
of the following:

(1) Order that the parent become legal and physical custodian
of the child. The court may also provide reasonable visitation by
the noncustodial parent. The court shall then terminate its
jurisdiction over the child. The custody order shall continue unless
modified by a subsequent order of the superior court. The order
of the juvenile court shall be filed in any domestic relation
proceeding between the parents.

(2) Order that the parent assume custody subject to the
jurisdiction of the juvenile court and require that a home visit be
conducted within three months. In determining whether to take
the action described in this paragraph, the court shall consider any
concerns that have been raised by the child’s current caregiver
regarding the parent. After the social worker conducts the home
visit and files his or her report with the court, the court may then
take the action described in paragraph (1), paragraph (3), or this
paragraph. However, this paragraph shall not be interpreted to
imply that the court is required to take the action described in this
paragraph as a prerequisite to the court taking the action described
in either paragraph (1) or (3).

(3) Order that the parent assume custody subject to the
supervision of the juvenile court. In that case the court may order
that reunification services be provided to the parent or guardian
from whom the child is being removed, or the court may order that
services be provided solely to the parent who is assuming physical
custody in order to allow that parent to retain later custody without
court supervision, or that services be provided to both parents, in
which case the court shall determine, at review hearings held
pursuant to Section 366, which parent, if either, shall have custody
of the child.

(c) The court shall make a finding either in writing or on the
record of the basis for its determination under subdivisions (a) and
(b).

(d) Part 6 (commencing with Section 7950) of Division 12 of
the Family Code applies to the placement of a child pursuant to
paragraphs (1) and (2) of subdivision (e).

(e) When the court orders removal pursuant to Section 361, the
court shall order the care, custody, control, and conduct of the
child to be under the supervision of the social worker who may
place the child in any of the following:

(1) The home of a noncustodial parent as described in
subdivision (a), regardless of the parent’s immigration status.

(2) The approved home of a relative, regardless of the relative’s
immigration status.

(3) The approved home of a nonrelative extended family
member as defined in Section 362.7.

(4) The approved home of a resource family as defined in
Section 16519.5.

(5) A foster home in which the child has been placed before an
interruption in foster care, if that placement is in the best interest
of the child and space is available.

(6) A suitable licensed community care facility, except a
runaway and homeless youth shelter licensed by the State
Department of Social Services pursuant to Section 1502.35 of the
Health and Safety Code.

(7) With a foster family agency to be placed in a suitable
licensed foster family home or certified family home that has been
certified by the agency as meeting licensing standards.

(8) A home or facility in accordance with the federal Indian
Child Welfare Act (25 U.S.C. Sec. 1901 et seq.).

(9) A child under six years of age may be placed in a community
care facility licensed as a group home for children, or a temporary
shelter care facility as defined in Section 1530.8 of the Health and
Safety Code, only under any of the following circumstances:

(A) (i) When a case plan indicates that placement is for purposes
of providing short term, specialized, and intensive treatment to the
child, the case plan specifies the need for, nature of, and anticipated
duration of this treatment, pursuant to paragraph (2) of subdivision
(c) of Section 16501.1, the facility meets the applicable regulations
adopted under Section 1530.8 of the Health and Safety Code and
standards developed pursuant to Section 11467.1 of this code, and
the deputy director or director of the county child welfare
department or an assistant chief probation officer or chief probation
officer of the county probation department has approved the case
plan.

(ii) The short term, specialized, and intensive treatment period
shall not exceed 120 days, unless the county has made progress
toward or is actively working toward implementing the case plan
that identifies the services or supports necessary to transition the
child to a family setting, circumstances beyond the county’s control
have prevented the county from obtaining those services or
supports within the timeline documented in the case plan, and the
need for additional time pursuant to the case plan is documented
by the caseworker and approved by a deputy director or director
of the county child welfare department or an assistant chief
probation officer or chief probation officer of the county probation
department.

(iii) To the extent that placements pursuant to this paragraph
are extended beyond an initial 120 days, the requirements of
clauses (i) and (ii) apply to each extension. In addition, the deputy
director or director of the county child welfare department or an
assistant chief probation officer or chief probation officer of the
county probation department shall approve the continued placement
no less frequently than every 60 days.

(B) When a case plan indicates that placement is for purposes
of providing family reunification services. In addition, the facility
offers family reunification services that meet the needs of the
individual child and his or her family, permits parents to have
reasonable access to their children 24 hours a day, encourages
extensive parental involvement in meeting the daily needs of their
children, and employs staff trained to provide family reunification
services. In addition, one of the following conditions exists:

(i) The child’s parent is also a ward of the court and resides in
the facility.

(ii) The child’s parent is participating in a treatment program
affiliated with the facility and the child’s placement in the facility
facilitates the coordination and provision of reunification services.

(iii) Placement in the facility is the only alternative that permits
the parent to have daily 24-hour access to the child in accordance
with the case plan, to participate fully in meeting all of the daily
needs of the child, including feeding and personal hygiene, and to
have access to necessary reunification services.

(10) (A) A child who is 6 to 12 years of age, inclusive, may be
placed in a community care facility licensed as a group home for
children only when a case plan indicates that placement is for
purposes of providing short term, specialized, and intensive
treatment for the child, the case plan specifies the need for, nature
of, and anticipated duration of this treatment, pursuant to paragraph
(2) of subdivision (c) of Section 16501.1, and is approved by the
deputy director or director of the county child welfare department
or an assistant chief probation officer or chief probation officer of
the county probation department.

(B) The short term, specialized, and intensive treatment period
shall not exceed six months, unless the county has made progress
or is actively working toward implementing the case plan that
identifies the services or supports necessary to transition the child
to a family setting, circumstances beyond the county’s control
have prevented the county from obtaining those services or
supports within the timeline documented in the case plan, and the
need for additional time pursuant to the case plan is documented
by the caseworker and approved by a deputy director or director
of the county child welfare department or an assistant chief
probation officer or chief probation officer of the county probation
department.

(C) To the extent that placements pursuant to this paragraph are
extended beyond an initial six months, the requirements of
subparagraphs (A) and (B) apply to each extension. In addition,
the deputy director or director of the county child welfare
department or an assistant chief probation officer or chief probation
officer of the county probation department shall approve the
continued placement no less frequently than every 60 days.

(11) This subdivision shall not be construed to allow a social
worker to place any dependent child outside the United States,
except as specified in subdivision (f).

(f) (1) A child under the supervision of a social worker pursuant
to subdivision (e) shall not be placed outside the United States
prior to a judicial finding that the placement is in the best interest
of the child, except as required by federal law or treaty.

(2) The party or agency requesting placement of the child outside
the United States shall carry the burden of proof and shall show,
by clear and convincing evidence, that placement outside the
United States is in the best interest of the child.

(3) In determining the best interest of the child, the court shall
consider, but not be limited to, the following factors:

(A) Placement with a relative.

(B) Placement of siblings in the same home.

(C) Amount and nature of any contact between the child and
the potential guardian or caretaker.

(D) Physical and medical needs of the dependent child.

(E) Psychological and emotional needs of the dependent child.

(F) Social, cultural, and educational needs of the dependent
child.

(G) Specific desires of any dependent child who is 12 years of
age or older.

(4) If the court finds that a placement outside the United States
is, by clear and convincing evidence, in the best interest of the
child, the court may issue an order authorizing the social worker
to make a placement outside the United States. A child subject to
this subdivision shall not leave the United States prior to the
issuance of the order described in this paragraph.

(5) For purposes of this subdivision, “outside the United States”
does not include the lands of any federally recognized American
Indian tribe or Alaskan Natives.

(6) This subdivision does not apply to the placement of a
dependent child with a parent pursuant to subdivision (a).

(g) (1) If the child is taken from the physical custody of the
child’s parent or guardian and unless the child is placed with
relatives, the child shall be placed in foster care in the county of
residence of the child’s parent or guardian in order to facilitate
reunification of the family.

(2) In the event that there are no appropriate placements
available in the parent’s or guardian’s county of residence, a
placement may be made in an appropriate place in another county,
preferably a county located adjacent to the parent’s or guardian’s
community of residence.

(3) This section shall not be interpreted as requiring multiple
disruptions of the child’s placement corresponding to frequent
changes of residence by the parent or guardian. In determining
whether the child should be moved, the social worker shall take
into consideration the potential harmful effects of disrupting the
placement of the child and the parent’s or guardian’s reason for
the move.

(4) When it has been determined that it is necessary for a child
to be placed in a county other than the child’s parent’s or guardian’s
county of residence, the specific reason the out-of-county
placement is necessary shall be documented in the child’s case
plan. If the reason the out-of-county placement is necessary is the
lack of resources in the sending county to meet the specific needs
of the child, those specific resource needs shall be documented in
the case plan.

(5) When it has been determined that a child is to be placed out
of county either in a group home or with a foster family agency
for subsequent placement in a certified foster family home, and
the sending county is to maintain responsibility for supervision
and visitation of the child, the sending county shall develop a plan
of supervision and visitation that specifies the supervision and
visitation activities to be performed and specifies that the sending
county is responsible for performing those activities. In addition
to the plan of supervision and visitation, the sending county shall
document information regarding any known or suspected dangerous
behavior of the child that indicates the child may pose a safety
concern in the receiving county. Upon implementation of the Child
Welfare Services Case Management System, the plan of
supervision and visitation, as well as information regarding any
known or suspected dangerous behavior of the child, shall be made
available to the receiving county upon placement of the child in
the receiving county. If placement occurs on a weekend or holiday,
the information shall be made available to the receiving county on
or before the end of the next business day.

(6) When it has been determined that a child is to be placed out
of county and the sending county plans that the receiving county
shall be responsible for the supervision and visitation of the child,
the sending county shall develop a formal agreement between the
sending and receiving counties. The formal agreement shall specify
the supervision and visitation to be provided the child, and shall
specify that the receiving county is responsible for providing the
supervision and visitation. The formal agreement shall be approved
and signed by the sending and receiving counties prior to placement
of the child in the receiving county. In addition, upon completion
of the case plan, the sending county shall provide a copy of the
completed case plan to the receiving county. The case plan shall
include information regarding any known or suspected dangerous
behavior of the child that indicates the child may pose a safety
concern to the receiving county.

(h) Whenever the social worker must change the placement of
the child and is unable to find a suitable placement within the
county and must place the child outside the county, the placement
shall not be made until he or she has served written notice on the
parent or guardian at least 14 days prior to the placement, unless
the child’s health or well-being is endangered by delaying the
action or would be endangered if prior notice were given. The
notice shall state the reasons that require placement outside the
county. The parent or guardian may object to the placement not
later than seven days after receipt of the notice and, upon objection,
the court shall hold a hearing not later than five days after the
objection and prior to the placement. The court shall order
out-of-county placement if it finds that the child’s particular needs
require placement outside the county.

(i) If the court has ordered removal of the child from the physical
custody of his or her parents pursuant to Section 361, the court
shall consider whether the family ties and best interest of the child
will be served by granting visitation rights to the child’s
grandparents. The court shall clearly specify those rights to the
social worker.

(j) If the court has ordered removal of the child from the physical
custody of his or her parents pursuant to Section 361, the court
shall consider whether there are any siblings under the court’s
jurisdiction, or any nondependent siblings in the physical custody
of a parent subject to the court’s jurisdiction, the nature of the
relationship between the child and his or her siblings, the
appropriateness of developing or maintaining the sibling
relationships pursuant to Section 16002, and the impact of the
sibling relationships on the child’s placement and planning for
legal permanence.

(k) (1) An agency shall ensure placement of a child in a home
that, to the fullest extent possible, best meets the day-to-day needs
of the child. A home that best meets the day-to-day needs of the
child shall satisfy all of the following criteria:

(A) The child’s caregiver is able to meet the day-to-day health,
safety, and well-being needs of the child.

(B) The child’s caregiver is permitted to maintain the least
restrictive and most family-like environment that serves the
day-to-day needs of the child.

(C) The child is permitted to engage in reasonable,
age-appropriate day-to-day activities that promote the most
family-like environment for the foster child.

(2) The foster child’s caregiver shall use a reasonable and
prudent parent standard, as defined in paragraph (2) of subdivision
(a) of Section 362.04, to determine day-to-day activities that are
age appropriate to meet the needs of the child. Nothing in this
section shall be construed to permit a child’s caregiver to permit
the child to engage in day-to-day activities that carry an
unreasonable risk of harm, or subject the child to abuse or neglect.

begin delete SEC. 562. end delete
begin insert SEC. 569. end insert   

Section 391 of the Welfare and Institutions Code is
amended to read:

391.  

(a) The dependency court shall not terminate jurisdiction
over a nonminor unless a hearing is conducted pursuant to this
section.

(b) At any hearing for a nonminor at which the court is
considering termination of the jurisdiction of the juvenile court,
the county welfare department shall do all of the following:

(1) Ensure that the dependent nonminor is present in court,
unless the nonminor does not wish to appear in court, and elects
a telephonic appearance, or document reasonable efforts made by
the county welfare department to locate the nonminor when the
nonminor is not available.

(2) Submit a report describing whether it is in the nonminor’s
best interests to remain under the court’s dependency jurisdiction,
which includes a recommended transitional independent living
case plan for the nonminor when the report describes continuing
dependency jurisdiction as being in the nonminor’s best interest.

(3) If the county welfare department recommends termination
of the court’s dependency jurisdiction, submit documentation of
the reasonable efforts made by the department to provide the
nonminor with the assistance needed to meet or maintain eligibility
as a nonminor dependent, as defined in paragraphs (1) to (5),
inclusive, of subdivision (b) of Section 11403.

(4) If the nonminor has indicated that he or she does not want
dependency jurisdiction to continue, the report shall address the
manner in which the nonminor was advised of his or her options,
including the benefits of remaining in foster care, and of his or her
right to reenter foster care and to file a petition pursuant to
subdivision (e) of Section 388 to resume dependency jurisdiction
prior to attaining 21 years of age.

(c) (1) The court shall continue dependency jurisdiction over
a nonminor who meets the definition of a nonminor dependent as
described in subdivision (v) of Section 11400 unless the court finds
either of the following:

(A) That the nonminor does not wish to remain subject to
dependency jurisdiction.

(B) That the nonminor is not participating in a reasonable and
appropriate transitional independent living case plan.

(2) In making the findings pursuant to paragraph (1), the court
must also find that the nonminor has been informed of his or her
options including the benefits of remaining in foster care and the
right to reenter foster care by filing a petition pursuant to
subdivision (e) of Section 388 to resume dependency jurisdiction
and by completing a voluntary reentry agreement pursuant to
subdivision (z) of Section 11400, and has had an opportunity to
confer with his or her counsel if counsel has been appointed
pursuant to Section 317.

(d) (1) The court may terminate its jurisdiction over a nonminor
if the court finds after reasonable and documented efforts the
nonminor cannot be located.

(2) When terminating dependency jurisdiction, the court shall
maintain general jurisdiction over the nonminor to allow for the
filing of a petition to resume dependency jurisdiction under
subdivision (e) of Section 388 until the nonminor attains 21 years
of age, although no review proceedings shall be required. A
nonminor may petition the court pursuant to subdivision (e) of
Section 388 to resume dependency jurisdiction at any time before
attaining 21 years of age.

(e) The court shall not terminate dependency jurisdiction over
a nonminor who has attained 18 years of age until a hearing is
conducted pursuant to this section and the department has
submitted a report verifying that the following information,
documents, and services have been provided to the nonminor, or
in the case of a nonminor who, after reasonable efforts by the
county welfare department, cannot be located, verifying the efforts
made to make the following available to the nonminor:

(1) Written information concerning the nonminor’s case,
including any known information regarding the nonminor’s Indian
heritage or tribal connections, if applicable, his or her family
history and placement history, any photographs of the nonminor
or his or her family in the possession of the county welfare
department, other than forensic photographs, the whereabouts of
any siblings under the jurisdiction of the juvenile court, unless the
court determines that sibling contact would jeopardize the safety
or welfare of the sibling, directions on how to access the documents
the nonminor is entitled to inspect under Section 827, and the date
on which the jurisdiction of the juvenile court would be terminated.

(2) The following documents:

(A) Social security card.

(B) Certified copy of his or her birth certificate.

(C) Health and education summary, as described in subdivision
(a) of Section 16010.

(D) Driver’s license, as described in Section 12500 of the
Vehicle Code, or identification card, as described in Section 13000
of the Vehicle Code.

(E) A letter prepared by the county welfare department that
includes the following information:

(i) The nonminor’s name and date of birth.

(ii) The dates during which the nonminor was within the
jurisdiction of the juvenile court.

(iii) A statement that the nonminor was a foster youth in
compliance with state and federal financial aid documentation
requirements.

(F) If applicable, the death certificate of the parent or parents.

(G) If applicable, proof of the nonminor’s citizenship or legal
residence.

(H) An advance health care directive form.

(I) The Judicial Council form that the nonminor would use to
file a petition pursuant to subdivision (e) of Section 388 to resume
dependency jurisdiction.

(J) The written 90-day transition plan prepared pursuant to
Section 16501.1.

(3) Assistance in completing an application for Medi-Cal or
assistance in obtaining other health insurance.

(4) Referrals to transitional housing, if available, or assistance
in securing other housing.

(5) Assistance in obtaining employment or other financial
support.

(6) Assistance in applying for admission to college or to a
vocational training program or other educational institution and
in obtaining financial aid, where appropriate.

(7) Assistance in maintaining relationships with individuals
who are important to a nonminor who has been in out-of-home
placement for six months or longer from the date the nonminor
entered foster care, based on the nonminor’s best interests.

(8) For nonminors between 18 and 21 years of age, assistance
in accessing the Independent Living Aftercare Program in the
nonminor’s county of residence, and, upon the nonminor’s request,
assistance in completing a voluntary reentry agreement for care
and placement pursuant to subdivision (z) of Section 11400 and
in filing a petition pursuant to subdivision (e) of Section 388 to
resume dependency jurisdiction.

(9) Written information notifying the child that current or former
dependent children who are or have been in foster care are granted
a preference for student assistant or internship positions with state
agencies pursuant to Section 18220 of the Government Code. The
preference shall be granted to applicants up to 26 years of age.

(f) At the hearing closest to and before a dependent minor’s
18th birthday and every review hearing thereafter for nonminors,
the department shall submit a report describing efforts toward
completing the items described in paragraph (2) of subdivision
(e).

(g) The Judicial Council shall develop and implement standards,
and develop and adopt appropriate forms necessary to implement
this provision.

(h) This section shall become operative on January 1, 2012.

begin delete SEC. 563. end delete
begin insert SEC. 570. end insert   

Section 1767 of the Welfare and Institutions Code
is amended to read:

1767.  

(a) Upon request, written notice of any hearing to
consider the release on parole of any person under the control of
the Youth Authority for the commission of a crime or committed
to the authority as a person described in Section 602 shall be sent
by the Department of the Youth Authority at least 30 days before
the hearing to any victim of a crime committed by the person, or
to the next of kin of the victim if the victim has died or is a minor.
The requesting party shall keep the board apprised of his or her
current mailing address.

(b) Any one of the following persons may appear, personally
or by counsel, at the hearing:

(1) The victim of the offense and one support person of his or
her choosing.

(2) In the event that the victim is unable to attend the proceeding,
two support persons designated by the victim may attend to provide
information about the impact of the crime on the victim.

(3) If the victim is no longer living, two members of the victim’s
immediate family may attend.

(4) If none of those persons appear personally at the hearing,
any one of them may submit a statement recorded on videotape
for the board’s consideration at the hearing. Those persons shall
also have the right to submit a written statement to the board at
least 10 days prior to the scheduled hearing for the board’s
consideration at the hearing.

(c) The board, in deciding whether to release the person on
parole, shall consider the statements of victims, next of kin, or
statements made on their behalf pursuant to this section and shall
include in its report a statement of whether the person would pose
a threat to public safety if released on parole.

(d) A representative designated by the victim or the victim’s
next of kin shall be either that person’s legal counsel or a family
or household member of the victim, for the purposes of this section.

(e) Support persons may only provide information about the
impact of the crime on the victim and provide physical and
emotional support to the victim or the victim’s family.

(f) This section does not prevent the board from excluding a
victim or his or her support person or persons from a hearing. The
board may allow the presence of other support persons under
particular circumstances surrounding the proceeding.

(g) The provisions of this section shall not be amended by the
Legislature except by statute passed in each house by rollcall vote
entered in the journal, two-thirds of the membership concurring,
or by a statute that becomes effective only when approved by the
electors.

begin delete SEC. 564. end delete
begin insert SEC. 571. end insert   

Section 1984 of the Welfare and Institutions Code
is amended to read:

1984.  

(a) The amount allocated to each county probation
department from the Juvenile Reentry Grant shall be distributed
in two equal payments to be paid on October 30 and May 30 of
each fiscal year, until June 30, 2013. Commencing with the
2013-14 fiscal year, the amount allocated to each county probation
department from the Juvenile Reentry Grant Special Account
established in paragraph (2) of subdivision (c) of Section 30025
of the Government Code shall be allocated in monthly installments.
In each fiscal year the amount allocated to each county probation
department from the Juvenile Reentry Grant Special Account shall
be distributed pursuant to the criteria set forth in subdivisions (b)
to (h), inclusive, of this section.

(b) Consistent with Section 1766, funds shall be allocated in
the amount of fifteen thousand dollars ($15,000) on an average
daily population basis per ward discharged to the jurisdiction of
the court and ordered by the court to be supervised by local county
probation for monitoring and services during the previous fiscal
year based on the actual number of discharged wards supervised
at the local level. For each discharged ward, this funding shall be
provided for 24 months.

(c) Consistent with Sections 208.5 and 1767.35, funds shall be
allocated in the amount of one hundred fifteen thousand dollars
($115,000) on an average daily population basis per discharged
ward transferred to a local juvenile facility for violating a condition
of court-ordered supervision during the previous fiscal year based
on the actual number of discharged wards housed in a local juvenile
detention facility or court-ordered placement facility where the
costs of the housing are not reimbursable to the county through
Title IV-E of the federal Social Security Act, or Medi-Cal. For
each discharged ward, this funding shall be provided for the actual
number of months the ward is housed in a facility up to 12 months.
This funding shall not be provided for wards housed in a jail under
any circumstances.

(d) Consistent with Section 731.1, funds shall be allocated in
the amount of fifteen thousand dollars ($15,000) on an average
daily population basis per parolee recalled by the county of
commitment for monitoring and services during the previous fiscal
year based on the actual number of parolees recalled. For each
recalled parolee, this funding shall be provided for the remaining
duration of the term of state supervision, not to exceed 24 months.

(e) Consistent with Section 1766, funds shall be allocated in the
amount of fifteen thousand dollars ($15,000) on an average daily
population basis per discharged ward transferred to the county of
commitment for monitoring and services during the previous fiscal
year based on the actual number of wards transferred. For each
ward transferred on and after July 1, 2014, this funding shall be
provided for the remaining duration of the term of juvenile court
jurisdiction, not to exceed 24 months.

(f) Consistent with Sections 208.5 and 1767.35, no additional
funding, beyond the initial fifteen thousand dollars ($15,000)
provided pursuant to subdivision (b) shall be allocated to counties
for discharged wards who are housed in county jail or in any other
county correctional facility for violating a condition of
court-ordered supervision during the previous fiscal year.

(g) Consistent with Sections 208.5 and 1767.35, additional
funding, beyond the initial fifteen thousand dollars ($15,000)
provided pursuant to subdivision (b), shall not be allocated to
counties for discharged wards who are housed in a state juvenile
facility for violating a condition of court-ordered supervision during
the previous fiscal year.

(h) In each fiscal year, consistent with subdivision (b) of Section
30029.11 of the Government Code, the Department of Finance
shall use the criteria outlined in subdivisions (b) to (g), inclusive,
to determine each county’s allocation as a percentage of the funds
deposited in the Juvenile Reentry Grant Special Account. Actual
allocations provided to counties pursuant to subdivisions (b) to
(g), inclusive, shall vary based on the amount of funds deposited
in the Juvenile Reentry Grant Special Account pursuant to
subdivision (b) of Section 30028.1 of the Government Code.

begin delete SEC. 565. end delete
begin insert SEC. 572. end insert   

Section 4142 of the Welfare and Institutions Code
is amended to read:

4142.  

(a) Notwithstanding any other law, whenever a patient
is committed to the State Department of State Hospitals, a director
of a state hospital or a clinician, as defined in subdivision (f), shall
obtain the state summary criminal history information for the
patient. The information shall be used to assess the violence risk
of a patient, to assess the appropriate placement of a patient, to
treat a patient, to prepare periodic reports as required by statute,
or to determine the patient’s progress or fitness for release. The
state summary criminal history information shall be placed in the
patient’s confidential file for the duration of his or her commitment.

(b) The information may be obtained through use of the
California Law Enforcement Telecommunications System
(CLETS). Law enforcement personnel shall cooperate with requests
for state summary criminal history information authorized pursuant
to this section and shall provide the information to the requesting
entity in a timely manner.

(c) A law enforcement officer or person authorized by this
section to receive the information who obtains the information in
the record and knowingly provides the information to a person not
authorized by law to receive the information is guilty of a
misdemeanor as specified in Section 11142 of the Penal Code.

(d) Information obtained pursuant to this section shall not be
used for any purposes other than those described in subdivision
(a).

(e) For purposes of this section, the State Department of State
Hospitals law enforcement personnel, pursuant to Section 830.38
of the Penal Code, may act as the law enforcement personnel
described in subdivision (b).

(f) For purposes of this section, “clinician” means a state
licensed mental health professional working within the State
Department of State Hospitals who has received, and is current in,
CLETS training that is appropriate for a person who has ongoing
access to information from the CLETS and is not a CLETS
operator, following the policies on training, compliance, and
inspection required by the Department of Justice.

(g) State summary criminal history information secured pursuant
to this section shall remain confidential and access shall be limited
to the director of the state hospital and the clinician. Within 30
days of discharge from the state hospital, the state summary
criminal history information shall be removed from the patient’s
file and destroyed.

begin delete SEC. 566. end delete
begin insert SEC. 573. end insert   

Section 4144 of the Welfare and Institutions Code
is amended to read:

4144.  

(a) A state hospital psychiatrist or psychologist may
refer a patient to a pilot enhanced treatment program (ETP), as
defined in Section 1265.9 of the Health and Safety Code, for
temporary placement and risk assessment upon determining that
the patient may be at high risk of most dangerous behavior and
when safe treatment is not possible in a standard treatment
environment. The referral may occur after admission to the State
Department of State Hospitals, and after sufficient and documented
evaluation of violence risk of the patient, with notice to the
patients’ rights advocate at the time of the referral. A patient shall
not be placed into an ETP as a means of punishment, coercion,
convenience, or retaliation.

(b) Within three business days of placement in an ETP, a
dedicated forensic evaluator, who is not on the patient’s treatment
team, shall complete an initial evaluation of the patient that shall
include an interview of the patient’s treatment team, an analysis
of diagnosis, past violence, current level of risk, and the need for
enhanced treatment.

(c) (1) Within seven business days of placement in an ETP and
with 72-hour notice to the patient and patients’ rights advocate,
the forensic needs assessment panel (FNAP) shall conduct a
placement evaluation meeting with the referring psychiatrist or
psychologist, the patient and patients’ rights advocate, and the
dedicated forensic evaluator who performed the initial evaluation.
A determination shall be made as to whether the patient clinically
requires ETP treatment.

(2) (A) The threshold standard for treatment in an ETP is met
if a psychiatrist or psychologist, utilizing standard forensic
methodologies for clinically assessing violence risk, determines
that a patient meets the definition of a patient at high risk of most
dangerous behavior and ETP treatment meets the identified needs
of the patient and safe treatment is not possible in a standard
treatment environment.

(B) Factors used to determine a patient’s high risk of most
dangerous behavior may include, but are not limited to, an analysis
of past violence, delineation of static and dynamic violence risk
factors, and utilization of valid and reliable violence risk
assessment testing.

(3) If a patient has shown improvement during his or her
placement in an ETP, the FNAP may delay its certification decision
for another seven business days. The FNAP’s determination of
whether the patient will benefit from continued or longer term ETP
placement and treatment shall be based on the threshold standard
for treatment in an ETP specified in subparagraph (A) of paragraph
(2).

(d) (1) The FNAP shall review all material presented at the
FNAP placement evaluation meeting conducted under subdivision
(c), and the FNAP shall either certify the patient for 90 days of
treatment in an ETP or direct that the patient be returned to a
standard treatment environment in the hospital.

(2) After the FNAP makes a decision to provide ETP treatment
and if ETP treatment will be provided at a facility other than the
current hospital, the transfer may take place as soon as
transportation may reasonably be arranged, but no later than 30
days after the decision is made.

(3) The FNAP determination shall be in writing and provided
to the patient and patients’ rights advocate as soon as possible, but
no later than three business days after the decision is made.

(e) (1) Upon admission to an ETP, a forensic needs assessment
team (FNAT) psychologist who is not on the patient’s
multidisciplinary treatment team shall perform an in-depth violence
risk assessment and make an individual treatment plan for the
patient based on the assessment. The individual treatment plan
shall:

(A) Be in writing and developed in collaboration with the
patient, when possible. The initial treatment plan shall be developed
as soon as possible, but no later than 72 hours following the
patient’s admission. The comprehensive treatment plan shall be
developed following a complete violence risk assessment.

(B) Be based on a comprehensive assessment of the patient’s
physical, mental, emotional, and social needs, and focused on
mitigation of violence risk factors.

(C) Be reviewed and updated no less than every 10 days.

(2) The individual treatment plan shall include, but is not limited
to, all of the following:

(A) A statement of the patient’s physical and mental condition,
including all mental health and medical diagnoses.

(B) Prescribed medication, dosage, and frequency of
administration.

(C) Specific goals of treatment with intervention and actions
that identify steps toward reduction of violence risk and observable,
measurable objectives.

(D) Identification of methods to be utilized, the frequency for
conducting each treatment method, and the person, or persons, or
discipline, or disciplines, responsible for each treatment method.

(E) Documentation of the success or failure in achieving stated
objectives.

(F) Evaluation of the factors contributing to the patient’s
progress or lack of progress toward reduction of violence risk and
a statement of the multidisciplinary treatment decision for followup
action.

(G) An activity plan.

(H) A plan for other services needed by the patient, such as care
for medical and physical ailments, which are not provided by the
multidisciplinary treatment team.

(I) Discharge criteria and goals for an aftercare plan in a standard
treatment environment and a plan for post-ETP discharge follow
up.

(3) An ETP patient shall receive treatment from a
multidisciplinary team consisting of a psychologist, a psychiatrist,
a nurse, a psychiatric technician, a clinical social worker, a
rehabilitation therapist, and any other necessary staff who shall
meet as often as necessary, but no less than once a week, to assess
the patient’s response to treatment.

(4) The staff shall observe and note any changes in the patient’s
condition and the treatment plan shall be modified in response to
the observed changes.

(5) Social work services shall be organized, directed, and
supervised by a licensed clinical social worker.

(6) (A) Mental health treatment programs shall provide and
conduct organized therapeutic social, recreational, and vocational
activities in accordance with the interests, abilities, and needs of
the patients, including the opportunity for exercise.

(B) Mental health rehabilitation therapy services shall be
designed by and provided under the direction of a licensed mental
health professional, a recreational therapist, or an occupational
therapist.

(7) An aftercare plan for a standard treatment environment shall
be developed.

(A) A written aftercare plan shall describe those services that
should be provided to a patient following discharge, transfer, or
release from an ETP for the purpose of enabling the patient to
maintain stabilization or achieve an optimum level of functioning.

(B) Prior to or at the time of discharge, transfer, or release from
an ETP, each patient shall be evaluated concerning the patient’s
need for aftercare services. This evaluation shall consider the
patient’s potential housing, probable need for continued treatment
and social services, and need for continued medical and mental
health care.

(C) Aftercare plans shall include, but shall not be limited to,
arrangements for medication administration and follow-up care.

(D) A member of the multidisciplinary treatment team
designated by the clinical director shall be responsible for ensuring
that the aftercare plan has been completed and documented in the
patient’s health record.

(E) The patient shall receive a copy of the aftercare plan when
referred to a standard treatment environment.

(f) Prior to the expiration of 90 days from the date of placement
in an ETP and with 72-hour notice provided to the patient and the
patients’ rights advocate, the FNAP shall convene a treatment
placement meeting with a psychologist from the treatment team,
a patients’ rights advocate, the patient, and the FNAT psychologist
who performed the in-depth violence risk assessment. The FNAP
shall determine whether the patient may return to a standard
treatment environment or whether the patient clinically requires
continued treatment in an ETP. If the FNAP determines that the
patient clinically requires continued ETP placement, the patient
shall be certified for further ETP placement for one year. The
FNAP determination shall be in writing and provided to the patient
and the patients’ rights advocate within 24 hours of the meeting.
If the FNAP determines that the patient is ready to be transferred
to a standard treatment environment, the FNAP shall identify
appropriate placement within a standard treatment environment
in a state hospital, and transfer the patient within 30 days of the
determination.

(g) If a patient has been certified for ETP treatment for one year
pursuant to subdivision (f), the FNAP shall review the patient’s
treatment summary at least every 90 days to determine if the patient
no longer clinically requires treatment in the ETP. This FNAP
determination shall be in writing and provided to the patient and
the patients’ rights advocate within three business days of the
meeting. If the FNAP determines that the patient no longer
clinically requires treatment in the ETP, the FNAP shall identify
appropriate placement, and transfer the patient within 30 days of
the determination.

(h) Prior to the expiration of the one-year certification of ETP
placement under subdivision (f), and with 72-hour notice provided
to the patient and the patients’ rights advocate, the FNAP shall
convene a treatment placement meeting with the treatment team,
the patients’ rights advocate, the patient, and the FNAT
psychologist who performed the in-depth violence risk assessment.
The FNAP shall determine whether the patient clinically requires
continued ETP treatment. The FNAP determination shall be in
writing and provided to the patient and the patients’ rights advocate
within 24 hours of the meeting.

(i) If after the treatment placement meeting described in
subdivision (h), and after discussion with the patient, the patients’
rights advocate, patient’s ETP team members, and review of
documents and records, the FNAP determines that the patient
clinically requires continued ETP placement, the patient’s case
shall be referred outside of the State Department of State Hospitals
to a forensic psychiatrist or psychologist for an independent
medical review for the purpose of assessing the patient’s overall
treatment plan and the need for ongoing ETP treatment. Notice of
the referral shall be provided to the patient and the patients’ rights
advocate within 24 hours of the FNAP meeting as part of the FNAP
determination. The notice shall include instructions for the patient
to submit information to the forensic psychiatrist or psychologist
conducting the independent medical review.

(1) The forensic psychiatrist or psychologist conducting the
independent medical review shall be provided with the patient’s
medical and psychiatric documents and records, along with any
additional information submitted by the patient, within five
business days from the date of the FNAP’s determination that the
patient requires continued ETP placement.

(2) After reviewing the patient’s medical and psychiatric
documents and records, along with any additional information
submitted by the patient, but no later than 14 days after the receipt
of the patient’s medical and psychiatric documents and records,
the forensic psychiatrist or psychologist conducting the independent
medical review shall provide the State Department of State
Hospitals, the patient, and the patients’ rights advocate with a
written notice of the date and time for a hearing. At least one FNAP
member is required to attend the hearing. The notice shall be
provided at least 72 hours in advance of the hearing, shall include
a statement that at least one FNAP member is required to attend
the hearing, and advise the patient of his or her right to a hearing
or to waive his or her right to a hearing. The notice shall also
include a statement that the patient may have assistance of a
patients’ rights advocate or staff member at the hearing.
Seventy-two-hour notice shall also be provided to any individuals
whose presence is requested by the forensic psychiatrist or
psychologist conducting the independent medical review in order
to help assess the patient’s overall treatment plan and the need for
ongoing ETP treatment.

(3) If the patient waives his or her right to a hearing, the forensic
psychiatrist or psychologist conducting the independent medical
review shall make recommendations to the FNAP on whether or
not the patient should be certified for ongoing ETP treatment.

(4) If the patient does not waive the right to a hearing, both of
the following shall be provided:

(A) If the patient elects to have the assistance of a patients’
rights advocate or a staff person, the requested person shall provide
assistance relating to the hearing, whether or not the patient is
present at the hearing, unless the forensic psychiatrist or
psychologist conducting the hearing finds good cause why the
requested person should not participate. Good cause includes a
reasonable concern for the safety of a staff member requested to
be present at the hearing.

(B) An opportunity for the patient to present information,
statements, or arguments, either orally or in writing, to show either
that the information relied on for the FNAP’s determination for
ongoing treatment is erroneous, or any other relevant information.

(5) The conclusion reached by the forensic psychiatrist or
psychologist who conducts the independent medical review shall
be in writing and provided to the State Department of State
Hospitals, the patient, and the patients’ rights advocate within three
business days of the conclusion of the hearing.

(6) If the forensic psychiatrist or psychologist who conducts the
independent medical review concludes that the patient requires
ongoing ETP treatment, the patient shall be certified for further
treatment for an additional year.

(7) If the forensic psychiatrist or psychologist who conducts the
independent medical review determines that the patient no longer
requires ongoing ETP treatment, the FNAP shall identify
appropriate placement and transfer the patient within 30 days of
determination.

(j) At any point during the ETP placement, if a patient’s
treatment team determines that the patient no longer clinically
requires ETP treatment, a recommendation to transfer the patient
out of the ETP shall be made to the FNAT or FNAP.

(k) The process described in this section may continue until the
patient no longer clinically requires ETP treatment or until the
patient is discharged from the State Department of State Hospitals.

(l) As used in this section, the following terms have the
following meanings:

(1) “Enhanced treatment program” or “ETP” means a
supplemental treatment unit as defined in Section 1265.9 of the
Health and Safety Code.

(2) “Forensic needs assessment panel” or “FNAP” means a
panel that consists of a psychiatrist, a psychologist, and the medical
director of the hospital or facility, none of whom are involved in
the patient’s treatment or diagnosis at the time of the hearing or
placement meetings.

(3) “Forensic needs assessment team” or “FNAT” means a panel
of psychologists with expertise in forensic assessment or violence
risk assessment, each of whom are assigned an ETP case or group
of cases.

(4) “In-depth violence risk assessment” means the utilization
of standard forensic methodologies for clinically assessing the risk
of a patient posing a substantial risk of inpatient aggression.

(5) “Patients’ rights advocate” means the advocate contracted
under Sections 5370.2 and 5510.

(6) “Patient at high risk of most dangerous behavior” means the
individual has a history of physical violence and currently poses
a demonstrated danger of inflicting substantial physical harm upon
others in an inpatient setting, as determined by an evidence-based,
in-depth violence risk assessment conducted by the State
Department of State Hospitals.

(m) The State Department of State Hospitals may adopt
emergency regulations in accordance with the Administrative
Procedures Act (Chapter 3.5 (commencing with Section 11340)
of Part 1 of Division 3 of Title 2 of the Government Code) to
implement the treatment components of this section. The adoption
of an emergency regulation under this paragraph is deemed to
address an emergency, for purposes of Sections 11346.1 and
11349.6 of the Government Code, and the State Department of
State Hospitals is hereby exempted for this purpose from the
requirements of subdivision (b) of Section 11346.1 of the
Government Code.

begin delete SEC. 567. end delete
begin insert SEC. 574. end insert   

Section 4512 of the Welfare and Institutions Code
is amended to read:

4512.  

As used in this division:

(a) “Developmental disability” means a disability that originates
before an individual attains 18 years of age; continues, or can be
expected to continue, indefinitely; and constitutes a substantial
disability for that individual. As defined by the Director of
Developmental Services, in consultation with the Superintendent
of Public Instruction, this term shall include intellectual disability,
cerebral palsy, epilepsy, and autism. This term shall also include
disabling conditions found to be closely related to intellectual
disability or to require treatment similar to that required for
individuals with an intellectual disability, but shall not include
other handicapping conditions that are solely physical in nature.

(b) “Services and supports for persons with developmental
disabilities” means specialized services and supports or special
adaptations of generic services and supports directed toward the
alleviation of a developmental disability or toward the social,
personal, physical, or economic habilitation or rehabilitation of an
individual with a developmental disability, or toward the
achievement and maintenance of independent, productive, and
normal lives. The determination of which services and supports
are necessary for each consumer shall be made through the
individual program plan process. The determination shall be made
on the basis of the needs and preferences of the consumer or, when
appropriate, the consumer’s family, and shall include consideration
of a range of service options proposed by individual program plan
participants, the effectiveness of each option in meeting the goals
stated in the individual program plan, and the cost-effectiveness
of each option. Services and supports listed in the individual
program plan may include, but are not limited to, diagnosis,
evaluation, treatment, personal care, day care, domiciliary care,
special living arrangements, physical, occupational, and speech
therapy, training, education, supported and sheltered employment,
mental health services, recreation, counseling of the individual
with a developmental disability and of his or her family, protective
and other social and sociolegal services, information and referral
services, follow-along services, adaptive equipment and supplies,
advocacy assistance, including self-advocacy training, facilitation
and peer advocates, assessment, assistance in locating a home,
child care, behavior training and behavior modification programs,
camping, community integration services, community support,
daily living skills training, emergency and crisis intervention,
facilitating circles of support, habilitation, homemaker services,
infant stimulation programs, paid roommates, paid neighbors,
respite, short-term out-of-home care, social skills training,
specialized medical and dental care, telehealth services and
supports, as defined in Section 2290.5 of the Business and
Professions Code, supported living arrangements, technical and
financial assistance, travel training, training for parents of children
with developmental disabilities, training for parents with
developmental disabilities, vouchers, and transportation services
necessary to ensure delivery of services to persons with
developmental disabilities. Nothing in this subdivision is intended
to expand or authorize a new or different service or support for
any consumer unless that service or support is contained in his or
her individual program plan.

(c) Notwithstanding subdivisions (a) and (b), for any
organization or agency receiving federal financial participation
under the federal Developmental Disabilities Assistance and Bill
of Rights Act of 2000, Chapter 144 (commencing with Section
15001) of Title 42 of the United States Code, as amended,
“developmental disability” and “services for persons with
developmental disabilities” mean the terms as defined in the federal
act to the extent required by federal law.

(d) “Consumer” means a person who has a disability that meets
the definition of developmental disability set forth in subdivision
(a).

(e) “Natural supports” means personal associations and
relationships typically developed in the community that enhance
the quality and security of life for people, including, but not limited
to, family relationships, friendships reflecting the diversity of the
neighborhood and the community, associations with fellow students
or employees in regular classrooms and workplaces, and
associations developed through participation in clubs,
organizations, and other civic activities.

(f) “Circle of support” means a committed group of community
members, who may include family members, meeting regularly
with an individual with developmental disabilities in order to share
experiences, promote autonomy and community involvement, and
assist the individual in establishing and maintaining natural
supports. A circle of support generally includes a plurality of
members who neither provide nor receive services or supports for
persons with developmental disabilities and who do not receive
payment for participation in the circle of support.

(g) “Facilitation” means the use of modified or adapted
materials, special instructions, equipment, or personal assistance
by an individual, such as assistance with communications, that
will enable a consumer to understand and participate to the
maximum extent possible in the decisions and choices that affect
his or her life.

(h) “Family support services” means services and supports that
are provided to a child with developmental disabilities or his or
her family and that contribute to the ability of the family to reside
together.

(i) “Voucher” means any authorized alternative form of service
delivery in which the consumer or family member is provided with
a payment, coupon, chit, or other form of authorization that enables
the consumer or family member to choose his or her own service
provider.

(j) “Planning team” means the individual with developmental
disabilities, the parents or legally appointed guardian of a minor
consumer or the legally appointed conservator of an adult
consumer, the authorized representative, including those appointed
pursuant to subdivision (d) of Section 4548 and subdivision (e) of
Section 4705, one or more regional center representatives,
including the designated regional center service coordinator
pursuant to subdivision (b) of Section 4640.7, any individual,
including a service provider, invited by the consumer, the parents
or legally appointed guardian of a minor consumer or the legally
appointed conservator of an adult consumer, or the authorized
representative, including those appointed pursuant to subdivision
(d) of Section 4548 and subdivision (e) of Section 4705, and
including a minor’s, dependent’s, or ward’s court-appointed
developmental services decisionmaker appointed pursuant to
Section 319, 361, or 726.

(k) “Stakeholder organizations” means statewide organizations
representing the interests of consumers, family members, service
providers, and statewide advocacy organizations.

(l) (1) “Substantial disability” means the existence of significant
functional limitations in three or more of the following areas of
major life activity, as determined by a regional center, and as
appropriate to the age of the person:

(A) Self-care.

(B) Receptive and expressive language.

(C) Learning.

(D) Mobility.

(E) Self-direction.

(F) Capacity for independent living.

(G) Economic self-sufficiency.

(2) A reassessment of substantial disability for purposes of
continuing eligibility shall utilize the same criteria under which
the individual was originally made eligible.

(m) “Native language” means the language normally used or
the preferred language identified by the individual and, when
appropriate, his or her parent, legal guardian or conservator, or
authorized representative.

begin delete SEC. 568. end delete
begin insert SEC. 575. end insert   

Section 4520 of the Welfare and Institutions Code
is amended to read:

4520.  

(a) A State Council on Developmental Disabilities with
authority independent of any single state service agency is hereby
created.

(b) The Legislature finds that in each of the 56 states and
territories, the federal Developmental Disabilities Assistance and
Bill of Rights Act of 2000 (Public Law 106-402 (42 U.S.C. Sec.
15001 et seq.)) establishes State Councils on Developmental
Disabilities that work to promote the core values of the act,
including self-determination, independence, productivity,
integration, and inclusion in all aspects of community life.

(c) The Legislature finds that California’s State Council on
Developmental Disabilities was established pursuant to the federal
Developmental Disabilities Assistance and Bill of Rights Act of
2000 to engage in advocacy, capacity building, and systemic
change activities that are consistent with the policy contained in
federal law and contribute to a coordinated, consumer- and
family-centered, consumer- and family-directed, comprehensive
system that includes the provision of needed community services,
individualized supports, and other forms of assistance that promote
self-determination for individuals with developmental disabilities
and their families. It is the intent of the Legislature that the state
council independently exercise its authority and responsibilities
under federal law, expend its federal funding allocation, and
exercise all powers and duties that may be necessary to carry out
the purposes contained in applicable federal law.

(d) The Legislature finds that the federal Developmental
Disabilities Assistance and Bill of Rights Act of 2000 requires the
council to promote certain principles that include all of the
following:

(1) Individuals with developmental disabilities, including those
with the most severe developmental disabilities, are capable of
self-determination, independence, productivity, and integration
and inclusion in all facets of community life, but often require the
provision of community services, individualized supports, and
other forms of assistance.

(2) Individuals with developmental disabilities and their families
have competencies, capabilities, and personal goals that should be
recognized, supported, and encouraged, and any assistance to these
individuals should be provided in an individualized manner,
consistent with the unique strengths, resources, priorities, concerns,
abilities, and capabilities of these individuals.

(3) Individuals with developmental disabilities and their families
are the primary decisionmakers regarding the services and supports
these individuals and their families receive, including choosing
where an individual lives from available options, and have
decisionmaking roles in policies and programs that affect the lives
of these individuals and their families.

(e) (1) The Legislature finds that the state council faces unique
challenges in ensuring access and furthering these principles due
to the state’s size, diversity, and a service delivery system that
promotes significant local control.

(2) Therefore, it is the intent of the Legislature that the state
council, consistent with its authority and responsibilities under
federal law, ensure that the council is accessible and responsive
to the diverse geographic, racial, ethnic, and language needs of
individuals with developmental disabilities and their families
throughout California, which in part may, as determined by the
state council, be achieved through the establishment of regional
offices, the number and location of which may be determined by
the state council.

(f) This chapter, Chapter 3 (commencing with Section 4561),
and Division 4.7 (commencing with Section 4900), are intended
by the Legislature to secure full compliance with the requirements
of the federal Developmental Disabilities Assistance and Bill of
Rights Act of 2000 as amended and extended, which provides
federal funds to assist the state in planning, coordinating,
monitoring, and evaluating services for persons with developmental
disabilities and in establishing a system to protect and advocate
the legal and civil rights of persons with developmental disabilities.

(g) The state council may use funds and other moneys allocated
to the state council in accordance with the purposes of the federal
Developmental Disabilities Assistance and Bill of Rights Act of
2000. This section does not preclude the state council from using
moneys other than moneys provided through the federal
Developmental Disabilities Assistance and Bill of Rights Act of
2000 in any manner consistent with applicable federal and state
law.

begin delete SEC. 569. end delete
begin insert SEC. 576. end insert   

Section 4520.5 of the Welfare and Institutions Code
is amended to read:

4520.5.  

Notwithstanding any other law, the state council shall
determine the structure of its organization, as required by the
federal Developmental Disabilities Assistance and Bill of Rights
Act of 2000 (Public Law 106-402 (42 U.S.C. Sec. 15001 et seq.)).

begin delete SEC. 570. end delete
begin insert SEC. 577. end insert   

Section 4521 of the Welfare and Institutions Code
is amended to read:

4521.  

(a) (1) All references to “council” or “state council” in
this division shall be a reference to the State Council on
Developmental Disabilities.

(2) “Developmental disability,” as used in this chapter, means
a developmental disability as defined in Section 15002(8) of Title
42 of the United States Code.

(b) There shall be 31 voting members on the state council
appointed by the Governor from among the residents of the state,
as follows:

(1) (A) Twenty members of the council shall be nonagency
members who reflect the socioeconomic, geographic, disability,
racial, ethnic, and language diversity of the state, and who shall
be persons with a developmental disability or their parents,
immediate relatives, guardians, or conservators residing in
California. Of the 20 members:

(i) At least seven members shall be persons with developmental
disabilities.

(ii) At least seven members shall be a person who is a parent,
immediate relative, guardian, or conservator of a person with a
developmental disability.

(iii) At least one of the members shall be a person with a
developmental disability who is a current or former resident of an
institution or his or her immediate relative, guardian, or
conservator.

(B) To ensure that state council membership is geographically
representative, as required by federal law, the Governor shall
appoint the members described in clauses (i) and (ii) of
subparagraph (A) from the geographical area of each regional
office, if regional offices have been established by the council.
Each member described in clauses (i) and (ii) of subparagraph (A)
may, in the discretion of the state council, serve as a liaison from
the state council to consumers and family members in the
geographical area that he or she is from.

(2)  Eleven members of the council shall include the following:

(A) The Secretary of California Health and Human Services,
or his or her designee, who shall represent the agency and the state
agency that administers funds under Title XIX of the Social
Security Act for people with developmental disabilities.

(B) The Director of Developmental Services or his or her
designee.

(C) The Director of Rehabilitation or his or her designee.

(D) The Superintendent of Public Instruction or his or her
designee.

(E) A representative from a nongovernmental agency or group
concerned with the provision of services to persons with
developmental disabilities.

(F) One representative from each of the three university centers
for excellence in the state, pursuant to Section 15061 et seq. of
Title 42 of the United States Code, providing training in the field
of developmental services, or his or her designee. These individuals
shall have expertise in the field of developmental disabilities.

(G) The Director of Health Care Services or his or her designee.

(H) The executive director of the agency established in
California to fulfill the requirements and assurance of Title I,
Subtitle C, of the federal Developmental Disabilities Assistance
and Bill of Rights Act of 2000 for a system to protect and advocate
the rights of persons with developmental disabilities, or his or her
designee.

(I) The Director of the California Department of Aging or his
or her designee.

(c) Prior to appointing the members described in paragraph (1)
of, and subparagraph (E) of paragraph (2) of, subdivision (b), the
Governor shall consult with the current members of the council,
including nonagency members of the council, and consider
recommendations from organizations representing persons with a
broad range of developmental disabilities, or persons interested
in, or providing services to, or both, persons with developmental
disabilities.

(d) The term of each member described in paragraph (1) of, and
subparagraph (E) of paragraph (2) of, subdivision (b) shall be for
three years. The term of these members shall begin on the date of
appointment by the Governor and these members shall serve no
more than two terms.

(e) A member may continue to serve following the expiration
of his or her term until the Governor appoints that member’s
successor. The state council shall notify the Governor regarding
membership requirements of the council and shall notify the
Governor, in writing, immediately when a vacancy occurs prior
to the expiration of a member’s term, at least six months before a
member’s term expires, and when a vacancy on the council remains
unfilled for more than 60 days.

begin delete SEC. 571. end delete
begin insert SEC. 578. end insert   

Section 4540 of the Welfare and Institutions Code
is amended to read:

4540.  

The state council, established pursuant to the federal
Developmental Disabilities Assistance and Bill of Rights Act of
2000 (Public Law 106-402 (42 U.S.C. Sec. 15001 et seq.)), shall
do all of the following:

(a) Serve as an advocate for individuals with developmental
disabilities and, through council members, staff, consultants, and
contractors and grantees, conduct advocacy, capacity building,
and systemic change activities.

(b) Develop and implement the state plan in accordance with
requirements issued by the United States Secretary of Health and
Human Services, monitor and evaluate the implementation of this
plan, and submit reports as the United States Secretary of Health
and Human Services may reasonably request. The state council
may review and comment on other plans and programs in the state
affecting individuals with developmental disabilities.

(c) Serve as the official agency responsible for planning the
provision of the federal funds allotted to the state under Public
Law 106-402 (42 U.S.C. Sec. 15001 et seq.), by conducting and
supporting advocacy, capacity building, and systemic change
activities. The council may itself conduct these activities and may
provide grant funding to local agencies in compliance with
applicable state and federal law, for those same purposes.

(d) Prepare and approve a budget, for the use of amounts paid
to the state to hire any staff and to obtain the services of any
professional, technical, or clerical personnel consistent with state
and federal law, as the council determines to be necessary to carry
out its functions.

(e) To the extent that resources are available, implement the
state plan by conducting activities including, but not limited to,
all of the activities specified in paragraphs (1) to (11), inclusive.

(1) Encouraging and assisting in the establishment or
strengthening of self-advocacy organizations led by individuals
with developmental disabilities.

(2) Supporting and conducting geographically based outreach
activities to identify individuals with developmental disabilities
and their families who otherwise might not come to the attention
of the council and assist and enable the individuals and families
to obtain services, individualized supports, and other forms of
assistance, including access to special adaptation of generic
community services or specialized services.

(3) Supporting and conducting training for persons who are
individuals with developmental disabilities, their families, and
personnel, including professionals, paraprofessionals, students,
volunteers, and other community members, to enable those persons
to obtain access to, or to provide, community services,
individualized supports, and other forms of assistance, including
special adaptation of generic community services or specialized
services for individuals with developmental disabilities and their
families.

(4) Supporting and conducting technical assistance activities to
assist public and private entities to contribute to the objectives of
the state plan.

(5) Supporting and conducting activities to assist neighborhoods
and communities to respond positively to individuals with
developmental disabilities and their families.

(6) Supporting and conducting activities to promote interagency
collaboration and coordination at the state and local levels to better
serve, support, assist, or advocate for individuals with
developmental disabilities and their families.

(7) Coordinating with related councils, committees, and
programs to enhance coordination of services.

(8) Supporting and conducting activities to eliminate barriers
to access and use of community services by individuals with
disabilities, enhance systems design and redesign, and enhance
citizen participation to address issues identified in the state plan.

(9) Supporting and conducting activities to educate the public
about the capabilities, preferences, and needs of individuals with
developmental disabilities and their families, and to develop and
support coalitions that support the policy agenda of the council,
including training in self-advocacy, education of policymakers,
and citizen leadership roles.

(10) Supporting and conducting activities to provide information
to policymakers by supporting and conducting studies and analyses,
gathering information, and developing and disseminating model
policies and procedures, information, approaches, strategies,
findings, conclusions, and recommendations. The council may
provide the information directly to federal, state, and local
policymakers, including the Congress of the United States, the
federal executive branch, the Governor, the Legislature, and state
agencies in order to increase the abilities of those policymakers to
offer opportunities and enhance or adapt generic services to meet
the needs of, or provide specialized services to, individuals with
developmental disabilities and their families.

(11) Supporting, on a time-limited basis, activities to
demonstrate new approaches to serving individuals with
developmental disabilities that are a part of an overall strategy for
systemic change.

(f) Prepare an annual written report of its activities, its
recommendations, and an evaluation of the efficiency of the
administration of this division to the Governor and the Legislature.
This report shall include both the statewide and regional activities
of the state council. This report shall be submitted to the Legislature
in accordance with Section 9795 of the Government Code.

(g) Except as otherwise provided in this division, the state
council shall not engage in the administration of the day-to-day
operation of service programs identified in the state plan, nor in
the financial management and accounting of funds.

begin delete SEC. 572. end delete
begin insert SEC. 579. end insert   

Section 4541 of the Welfare and Institutions Code
is amended to read:

4541.  

The state council may, in its discretion, and in addition
to the activities specified in subdivision (e) of Section 4540,
implement the state plan by conducting activities that may include,
but are not limited to, the following:

(a) Appointing an authorized representative for persons with
developmental disabilities according to all of the following:

(1) To ensure the protection of civil and service rights of persons
with developmental disabilities, the state council may appoint a
representative to assist the person in expressing his or her desires
and in making decisions and advocating his or her needs,
preferences, and choices, when the person with developmental
disabilities has no parent, guardian, or conservator legally
authorized to represent him or her and the person has either
requested the appointment of a representative or the rights or
interests of the person, as determined by the state council, will not
be properly protected or advocated without the appointment of a
representative.

(2) When there is no guardian or conservator, the individual’s
choice, if expressed, including the right to reject the assistance of
a representative, shall be honored. If the person does not express
a preference, the order of preference for selection of the
representative shall be the person’s parent, involved family
members, or a volunteer selected by the state council. In
establishing these preferences, it is the intent of the Legislature
that parents or involved family members shall not be required to
be appointed guardian or conservator in order to be selected. Unless
the person with developmental disabilities expresses otherwise,
or good cause otherwise exists, the request of the parents or
involved family members to be appointed the representative shall
be honored.

(3) Pursuant to this section, the state council shall appoint a
representative to advocate the rights and protect the interest of a
person residing in a developmental center for whom community
placement is proposed pursuant to Section 4803. The representative
may obtain the advocacy assistance of the regional center clients’
rights advocate.

(b) Conducting public hearings and forums and the evaluation
and issuance of public reports on the programs identified in the
state plan, as may be necessary to carry out the duties of the state
council.

(c) Identifying the denial of rights of persons with disabilities
and informing the appropriate local, state, or federal officials of
their findings, and assisting these officials in eliminating all forms
of discrimination against persons with developmental disabilities
in housing, recreation, education, health and mental health care,
employment, and other service programs available to the general
population.

(d) Reviewing and commenting on pertinent portions of the
proposed plans and budgets of all state agencies serving persons
with developmental disabilities including, but not limited to, the
State Department of Education, the Department of Rehabilitation,
and the State Department of Developmental Services, and local
agencies to the extent resources allow.

(e) (1) Promoting systems change and implementation by
reviewing the policies and practices of publicly funded agencies
that serve or may serve persons with developmental disabilities to
determine if the programs are meeting their obligations, under
local, state, and federal laws. If the state council finds that the
agency is not meeting its obligations, the state council may inform
the director and the governing board of the noncomplying agency,
in writing, of its findings.

(2) Within 15 days, the agency shall respond, in writing, to the
state council’s findings. Following receipt of the agency’s response,
if the state council continues to find that the agency is not meeting
its obligations, the state council may pursue informal efforts to
resolve the issue.

(3) If, within 30 days of implementing informal efforts to resolve
the issue, the state council continues to find that the agency is not
meeting its obligations under local, state, or federal statutes, the
state council may conduct a public hearing to receive testimony
on its findings.

(4) The state council may take any action it deems necessary to
resolve the problem.

(f) Reviewing and publicly commenting on significant
regulations proposed to be promulgated by any state agency in the
implementation of this division.

(g) Monitoring and evaluating the effectiveness of appeals
procedures established in this division.

(h) Providing testimony to legislative committees reviewing
fiscal or policy matters pertaining to persons with developmental
disabilities.

(i) Conducting, or causing to be conducted, investigations or
public hearings to resolve disagreements between state agencies,
or between state and regional or local agencies, or between persons
with developmental disabilities and agencies receiving state funds.
These investigations or public hearings shall be conducted at the
discretion of the state council only after all other appropriate
administrative procedures for appeal, as established in state and
federal law, have been fully utilized.

(j) Any other activities prescribed in statute that are consistent
with the purposes of the federal Developmental Disabilities
Assistance and Bill of Rights Act of 2000 (Public Law 106-402
(42 U.S.C. Sec. 15001 et seq.)) and the state plan developed
pursuant to subdivision (b) of Section 4540.

begin delete SEC. 573. end delete
begin insert SEC. 580. end insert   

Section 4648 of the Welfare and Institutions Code
is amended to read:

4648.  

To achieve the stated objectives of a consumer’s
individual program plan, the regional center shall conduct activities,
including, but not limited to, all of the following:

(a) Securing needed services and supports.

(1) It is the intent of the Legislature that services and supports
assist individuals with developmental disabilities in achieving the
greatest self-sufficiency possible and in exercising personal
choices. The regional center shall secure services and supports
that meet the needs of the consumer, as determined in the
consumer’s individual program plan, and within the context of the
individual program plan, the planning team shall give highest
preference to those services and supports that would allow minors
with developmental disabilities to live with their families, adult
persons with developmental disabilities to live as independently
as possible in the community, and that allow all consumers to
interact with persons without disabilities in positive, meaningful
ways.

(2) In implementing individual program plans, regional centers,
through the planning team, shall first consider services and supports
in natural community, home, work, and recreational settings.
Services and supports shall be flexible and individually tailored
to the consumer and, where appropriate, his or her family.

(3) A regional center may, pursuant to vendorization or a
contract, purchase services or supports for a consumer from any
individual or agency that the regional center and consumer or,
when appropriate, his or her parents, legal guardian, or conservator,
or authorized representatives, determines will best accomplish all
or any part of that consumer’s program plan.

(A) Vendorization or contracting is the process for identification,
selection, and utilization of service vendors or contractors, based
on the qualifications and other requirements necessary in order to
provide the service.

(B) A regional center may reimburse an individual or agency
for services or supports provided to a regional center consumer if
the individual or agency has a rate of payment for vendored or
contracted services established by the department, pursuant to this
division, and is providing services pursuant to an emergency
vendorization or has completed the vendorization procedures or
has entered into a contract with the regional center and continues
to comply with the vendorization or contracting requirements. The
director shall adopt regulations governing the vendorization process
to be utilized by the department, regional centers, vendors, and
the individual or agency requesting vendorization.

(C) Regulations shall include, but not be limited to: the vendor
application process, and the basis for accepting or denying an
application; the qualification and requirements for each category
of services that may be provided to a regional center consumer
through a vendor; requirements for emergency vendorization;
procedures for termination of vendorization; the procedure for an
individual or an agency to appeal any vendorization decision made
by the department or regional center.

(D) A regional center may vendorize a licensed facility for
exclusive services to persons with developmental disabilities at a
capacity equal to or less than the facility’s licensed capacity. A
facility already licensed on January 1, 1999, shall continue to be
vendorized at their full licensed capacity until the facility agrees
to vendorization at a reduced capacity.

(E) Effective July 1, 2009, notwithstanding any other law or
regulation, a regional center shall not newly vendor a State
Department of Social Services licensed 24-hour residential care
facility with a licensed capacity of 16 or more beds, unless the
facility qualifies for receipt of federal funds under the Medicaid
Program.

(4) Notwithstanding subparagraph (B) of paragraph (3), a
regional center may contract or issue a voucher for services and
supports provided to a consumer or family at a cost not to exceed
the maximum rate of payment for that service or support
established by the department. If a rate has not been established
by the department, the regional center may, for an interim period,
contract for a specified service or support with, and establish a
rate of payment for, any provider of the service or support
necessary to implement a consumer’s individual program plan.
Contracts may be negotiated for a period of up to three years, with
annual review and subject to the availability of funds.

(5) In order to ensure the maximum flexibility and availability
of appropriate services and supports for persons with
developmental disabilities, the department shall establish and
maintain an equitable system of payment to providers of services
and supports identified as necessary to the implementation of a
consumer’s individual program plan. The system of payment shall
include a provision for a rate to ensure that the provider can meet
the special needs of consumers and provide quality services and
supports in the least restrictive setting as required by law.

(6) The regional center and the consumer, or when appropriate,
his or her parents, legal guardian, conservator, or authorized
representative, including those appointed pursuant to subdivision
(a) of Section 4541, subdivision (b) of Section 4701.6, or
subdivision (e) of Section 4705, shall, pursuant to the individual
program plan, consider all of the following when selecting a
provider of consumer services and supports:

(A) A provider’s ability to deliver quality services or supports
that can accomplish all or part of the consumer’s individual
program plan.

(B) A provider’s success in achieving the objectives set forth
in the individual program plan.

(C) If appropriate, the existence of licensing, accreditation, or
professional certification.

(D) The cost of providing services or supports of comparable
quality by different providers, if available, shall be reviewed, and
the least costly available provider of comparable service, including
the cost of transportation, who is able to accomplish all or part of
the consumer’s individual program plan, consistent with the
particular needs of the consumer and family as identified in the
individual program plan, shall be selected. In determining the least
costly provider, the availability of federal financial participation
shall be considered. The consumer shall not be required to use the
least costly provider if it will result in the consumer moving from
an existing provider of services or supports to more restrictive or
less integrated services or supports.

(E) The consumer’s choice of providers, or, when appropriate,
the consumer’s parent’s, legal guardian’s, authorized
representative’s, or conservator’s choice of providers.

(7) A service or support provided by an agency or individual
shall not be continued unless the consumer or, when appropriate,
his or her parents, legal guardian, or conservator, or authorized
representative, including those appointed pursuant to subdivision
(a) of Section 4541, subdivision (b) of Section 4701.6, or
subdivision (e) of Section 4705, is satisfied and the regional center
and the consumer or, when appropriate, the person’s parents or
legal guardian or conservator agree that planned services and
supports have been provided, and reasonable progress toward
objectives have been made.

(8) Regional center funds shall not be used to supplant the
budget of any agency that has a legal responsibility to serve all
members of the general public and is receiving public funds for
providing those services.

(9) (A) A regional center may, directly or through an agency
acting on behalf of the center, provide placement in, purchase of,
or follow-along services to persons with developmental disabilities
in, appropriate community living arrangements, including, but not
limited to, support service for consumers in homes they own or
lease, foster family placements, health care facilities, and licensed
community care facilities. In considering appropriate placement
alternatives for children with developmental disabilities, approval
by the child’s parent or guardian shall be obtained before placement
is made.

(B) Effective July 1, 2012, notwithstanding any other law or
regulation, a regional center shall not purchase residential services
from a State Department of Social Services licensed 24-hour
residential care facility with a licensed capacity of 16 or more
beds. This prohibition on regional center purchase of residential
services does not apply to any of the following:

(i) A residential facility with a licensed capacity of 16 or more
beds that has been approved to participate in the department’s
Home and Community Based Services Waiver or another existing
waiver program or certified to participate in the Medi-Cal program.

(ii) A residential facility service provider that has a written
agreement and specific plan prior to July 1, 2012, with the
vendoring regional center to downsize the existing facility by
transitioning its residential services to living arrangements of 15
beds or less or restructure the large facility to meet federal
Medicaid eligibility requirements on or before June 30, 2013.

(iii) A residential facility licensed as a mental health
rehabilitation center by the State Department of Mental Health or
successor agency under any of the following circumstances:

(I) The facility is eligible for Medicaid reimbursement.

(II) The facility has a department-approved plan in place by
June 30, 2013, to transition to a program structure eligible for
federal Medicaid funding, and this transition will be completed by
June 30, 2014. The department may grant an extension for the date
by which the transition will be completed if the facility
demonstrates that it has made significant progress toward transition,
and states with specificity the timeframe by which the transition
will be completed and the specified steps that will be taken to
accomplish the transition. A regional center may pay for the costs
of care and treatment of a consumer residing in the facility on June
30, 2012, until June 30, 2013, inclusive, and, if the facility has a
department-approved plan in place by June 30, 2013, may continue
to pay the costs under this subparagraph until June 30, 2014, or
until the end of any period during which the department has granted
an extension.

(III) There is an emergency circumstance in which the regional
center determines that it cannot locate alternate federally eligible
services to meet the consumer’s needs. Under such an emergency
circumstance, an assessment shall be completed by the regional
center as soon as possible and within 30 days of admission. An
individual program plan meeting shall be convened immediately
following the assessment to determine the services and supports
needed for stabilization and to develop a plan to transition the
consumer from the facility into the community. If transition is not
expected within 90 days of admission, an individual program plan
meeting shall be held to discuss the status of transition and to
determine if the consumer is still in need of placement in the
facility. Commencing October 1, 2012, this determination shall
be made after also considering resource options identified by the
statewide specialized resource service. If it is determined that
emergency services continue to be necessary, the regional center
shall submit an updated transition plan that can cover a period of
up to 90 days. In no event shall placements under these emergency
circumstances exceed 180 days.

(C) (i) Effective July 1, 2012, notwithstanding any other law
or regulation, a regional center shall not purchase new residential
services from, or place a consumer in, institutions for mental
disease, as described in Part 5 (commencing with Section 5900)
of Division 5, for which federal Medicaid funding is not available.
Effective July 1, 2013, this prohibition applies regardless of the
availability of federal funding.

(ii) The prohibition described in clause (i) does not apply to
emergencies, as determined by the regional center, when a regional
center cannot locate alternate services to meet the consumer’s
needs. As soon as possible within 30 days of admission due to an
emergency, an assessment shall be completed by the regional
center. An individual program plan meeting shall be convened
immediately following the assessment, to determine the services
and supports needed for stabilization and to develop a plan to
transition the consumer from the facility to the community. If
transition is not expected within 90 days of admission, an
emergency program plan meeting shall be held to discuss the status
of the transition and to determine if the consumer is still in need
of placement in the facility. If emergency services continue to be
necessary, the regional center shall submit an updated transition
plan to the department for an extension of up to 90 days. Placement
shall not exceed 180 days.

(iii) To the extent feasible, prior to any admission, the regional
center shall consider resource options identified by the statewide
specialized resource service established pursuant to subdivision
(b) of Section 4418.25.

(iv) The clients’ rights advocate shall be notified of each
admission and individual program planning meeting pursuant to
this subparagraph and may participate in all individual program
planning meetings unless the consumer objects on his or her own
behalf. For purposes of this clause, notification to the clients’ rights
advocate shall include a copy of the most recent comprehensive
assessment or updated assessment and the time, date, and location
of the meeting, and shall be provided as soon as practicable, but
not less than seven calendar days prior to the meeting.

(v) Regional centers shall complete a comprehensive assessment
of any consumer residing in an institution for mental disease as of
July 1, 2012, for which federal Medicaid funding is not available,
and for any consumer residing in an institution for mental disease
as of July 1, 2013, without regard to federal funding. The
comprehensive assessment shall be completed prior to the
consumer’s next scheduled individual program plan meeting and
shall include identification of the services and supports needed
and the timeline for identifying or developing those services needed
to transition the consumer back to the community. Effective
October 1, 2012, the regional center shall also consider resource
options identified by the statewide specialized resource service.
For each individual program plan meeting convened pursuant to
this subparagraph, the clients’ rights advocate for the regional
center shall be notified of the meeting and may participate in the
meeting unless the consumer objects on his or her own behalf. For
purposes of this clause, notification to the clients’ rights advocate
shall include the time, date, and location of the meeting, and shall
be provided as soon as practicable, but not less than seven calendar
days prior to the meeting.

(D) A person with developmental disabilities placed by the
regional center in a community living arrangement has the rights
specified in this division. These rights shall be brought to the
person’s attention by any means necessary to reasonably
communicate these rights to each resident, provided that, at a
minimum, the Director of Developmental Services prepare,
provide, and require to be clearly posted in all residential facilities
and day programs a poster using simplified language and pictures
that is designed to be more understandable by persons with
intellectual disabilities and that the rights information shall also
be available through the regional center to each residential facility
and day program in alternative formats, including, but not limited
to, other languages, braille, and audiotapes, when necessary to
meet the communication needs of consumers.

(E) Consumers are eligible to receive supplemental services
including, but not limited to, additional staffing, pursuant to the
process described in subdivision (d) of Section 4646. Necessary
additional staffing that is not specifically included in the rates paid
to the service provider may be purchased by the regional center if
the additional staff are in excess of the amount required by
regulation and the individual’s planning team determines the
additional services are consistent with the provisions of the
individual program plan. Additional staff should be periodically
reviewed by the planning team for consistency with the individual
program plan objectives in order to determine if continued use of
the additional staff is necessary and appropriate and if the service
is producing outcomes consistent with the individual program plan.
Regional centers shall monitor programs to ensure that the
additional staff is being provided and utilized appropriately.

(10) Emergency and crisis intervention services including, but
not limited to, mental health services and behavior modification
services, may be provided, as needed, to maintain persons with
developmental disabilities in the living arrangement of their own
choice. Crisis services shall first be provided without disrupting a
person’s living arrangement. If crisis intervention services are
unsuccessful, emergency housing shall be available in the person’s
home community. If dislocation cannot be avoided, every effort
shall be made to return the person to his or her living arrangement
of choice, with all necessary supports, as soon as possible.

(11) Among other service and support options, planning teams
shall consider the use of paid roommates or neighbors, personal
assistance, technical and financial assistance, and all other service
and support options which would result in greater self-sufficiency
for the consumer and cost-effectiveness to the state.

(12) When facilitation as specified in an individual program
plan requires the services of an individual, the facilitator shall be
of the consumer’s choosing.

(13) The community support may be provided to assist
individuals with developmental disabilities to fully participate in
community and civic life, including, but not limited to, programs,
services, work opportunities, business, and activities available to
persons without disabilities. This facilitation shall include, but not
be limited to, any of the following:

(A) Outreach and education to programs and services within
the community.

(B) Direct support to individuals that would enable them to
more fully participate in their community.

(C) Developing unpaid natural supports when possible.

(14) When feasible and recommended by the individual program
planning team, for purposes of facilitating better and cost-effective
services for consumers or family members, technology, including
telecommunication technology, may be used in conjunction with
other services and supports. Technology in lieu of a consumer’s
in-person appearances at judicial proceedings or administrative
due process hearings may be used only if the consumer or, when
appropriate, the consumer’s parent, legal guardian, conservator,
or authorized representative, gives informed consent. Technology
may be used in lieu of, or in conjunction with, in-person training
for providers, as appropriate.

(15) Other services and supports may be provided as set forth
in Sections 4685, 4686, 4687, 4688, and 4689, when necessary.

(16) Notwithstanding any other law or regulation, effective July
1, 2009, regional centers shall not purchase experimental
treatments, therapeutic services, or devices that have not been
clinically determined or scientifically proven to be effective or
safe or for which risks and complications are unknown.
Experimental treatments or therapeutic services include
experimental medical or nutritional therapy when the use of the
product for that purpose is not a general physician practice. For
regional center consumers receiving these services as part of their
individual program plan (IPP) or individualized family service
plan (IFSP) on July 1, 2009, this prohibition shall apply on August
1, 2009.

(b) (1) Advocacy for, and protection of, the civil, legal, and
service rights of persons with developmental disabilities as
established in this division.

(2) Whenever the advocacy efforts of a regional center to secure
or protect the civil, legal, or service rights of any of its consumers
prove ineffective, the regional center or the person with
developmental disabilities or his or her parents, legal guardian, or
other representative may request advocacy assistance from the
state council.

(c) The regional center may assist consumers and families
directly, or through a provider, in identifying and building circles
of support within the community.

(d) In order to increase the quality of community services and
protect consumers, the regional center shall, when appropriate,
take either of the following actions:

(1) Identify services and supports that are ineffective or of poor
quality and provide or secure consultation, training, or technical
assistance services for any agency or individual provider to assist
that agency or individual provider in upgrading the quality of
services or supports.

(2) Identify providers of services or supports that may not be
in compliance with local, state, and federal statutes and regulations
and notify the appropriate licensing or regulatory authority to
investigate the possible noncompliance.

(e) When necessary to expand the availability of needed services
of good quality, a regional center may take actions that include,
but are not limited to, the following:

(1) Soliciting an individual or agency by requests for proposals
or other means, to provide needed services or supports not presently
available.

(2) Requesting funds from the Program Development Fund,
pursuant to Section 4677, or community placement plan funds
designated from that fund, to reimburse the startup costs needed
to initiate a new program of services and supports.

(3) Using creative and innovative service delivery models,
including, but not limited to, natural supports.

(f) Except in emergency situations, a regional center shall not
provide direct treatment and therapeutic services, but shall utilize
appropriate public and private community agencies and service
providers to obtain those services for its consumers.

(g) When there are identified gaps in the system of services and
supports or when there are identified consumers for whom no
provider will provide services and supports contained in his or her
individual program plan, the department may provide the services
and supports directly.

(h) At least annually, regional centers shall provide the
consumer, his or her parents, legal guardian, conservator, or
authorized representative a statement of services and supports the
regional center purchased for the purpose of ensuring that they are
delivered. The statement shall include the type, unit, month, and
cost of services and supports purchased.

begin insert

begin insert SEC. 581. end insert   

end insert

begin insert Section 4903 of the end insert begin insert Welfare and Institutions Code end insert
begin insert is amended to read: end insert

4903.  

(a) The protection and advocacy agency shall have
access to the records of any of the following people with
disabilities:

(1) Any person who is a client of the agency, or any person who
has requested assistance from the agency, if that person or the
agent designated by that person, or the legal guardian, conservator,
or other legal representative of that person, has authorized the
protection and advocacy agency to have access to the records and
information. If a person with a disability who is able to authorize
the protection and advocacy agency to access his or her records
expressly denies this access after being informed by the protection
and advocacy agency of his or her right to authorize or deny access,
the protection and advocacy agency may not have access to that
person’s records.

(2) Any person, including any individual who cannot be located,
to whom all of the following conditions apply:

(A) The individual, due to his or her mental or physical
condition, is unable to authorize the protection and advocacy
agency to have access to his or her records.

(B) The individual does not have a legal guardian, conservator,
or other legal representative, or the individual’s representative is
a public entity, including the state or one of its political
subdivisions.

(C) The protection and advocacy agency has received a
complaint that the individual has been subject to abuse or neglect,
or has determined that probable cause exists to believe that the
individual has been subject to abuse or neglect.

(3) Any person who is deceased, and for whom the protection
and advocacy agency has received a complaint that the individual
had been subjected to abuse or neglect, or for whom the agency
has determined that probable cause exists to believe that the
individual had been subjected to abuse or neglect.

(4) Any person who has a legal guardian, conservator, or other
legal representative with respect to whom a complaint has been
received by the protection and advocacy agency, or with respect
to whom the protection and advocacy agency has determined that
probable cause exists to believe that the person has been subjected
to abuse or neglect, whenever all of the following conditions exist:

(A) The representative has been contacted by the protection and
advocacy agency upon receipt of the representative’s name and
address.

(B) The protection and advocacy agency has offered assistance
to the representatives to resolve the situation.

(C) The representative has failed or refused to act on behalf of
the person.

(b) Individual records that shall be available to the protection
and advocacy agency under this section shall include, but not be
limited to, all of the following information and records related to
the investigation, whether written or in another medium, draft or
final, including, but not limited to, handwritten notes, electronic
files, photographs, videotapes, or audiotapes:

(1) Information and records prepared or received in the course
of providing intake, assessment, evaluation, education, training,
or other supportive services, including, but not limited to, medical
records, financial records, monitoring reports, or other reports,
prepared or received by a member of the staff of a facility, program,
or service that is providing care, treatment, or services.

(2) Reports prepared by an agency charged with investigating
reports of incidents of abuse, neglect, injury, or death occurring
at the program, facility, or service while the individual with a
disability is under the care of a member of the staff of a program,
facility, or service, or by or for a program, facility, or service, that
describe any or all of the following:

(A) Abuse, neglect, injury, or death.

(B) The steps taken to investigate the incidents.

(C) Reports and records, including, but not limited to, personnel
records prepared or maintained by the facility, program, or service
in connection with reports of incidents, subject to the following:

(i) If a state statute specifies procedures with respect to personnel
records, the protection and advocacy agency shall follow those
procedures.

(ii) Personnel records shall be protected from disclosure in
compliance with the fundamental right of privacy established
pursuant to Section 1 of Article I of the California Constitution.
The custodian of personnel records shall have a right and a duty
to resist attempts to allow the unauthorized disclosure of personnel
records, and may not waive the privacy rights that are guaranteed
pursuant to Section 1 of Article I of the California Constitution.

(D) Supporting information that was relied upon in creating a
report, including, but not limited to, all information and records
that document interviews with persons who were interviewed,
physical and documentary evidence that was reviewed, or related
investigative findings.

(3) Discharge planning records.

(c) Information in the possession of a program, facility, or
service that must be available to the agency investigating instances
of abuse or neglect pursuant to paragraph (1) of subdivision (a) of
Section 4902, whether written or in another medium, draft or final,
including, but not limited to, handwritten notes, electronic files,
photographs, videotapes, audiotapes, or records, shall include, but
not be limited to, all of the following:

(1) Information in reports prepared by individuals and entities
performing certification or licensure reviews, or by professional
accreditation organizations, as well as related assessments prepared
for a program, facility, or service by its staff, contractors, or related
entities, subject to any other provision of state law protecting
records produced by medical care evaluation or peer review
committees.

(2) Information in professional, performance, building, or other
safety standards, or demographic and statistical information,
relating to the facility.

(d) The authority of the protection and advocacy agency to have
access to records does not supersede any prohibition on discovery
specified in Sections 1157 and 1157.6 of the Evidence Code, nor
does it supersede any prohibition on disclosure subject to the
physician-patient privilege or the psychotherapist-patient privilege.

(e) (1) The protection and advocacy agency shall have access
to records of individuals described in paragraph (1) of subdivision
(a) of Section 4902 and in subdivision (a), and other records that
are relevant to conducting an investigation, under the circumstances
described in those subdivisions, not later than three business days
after the agency makes a written request for the records involved.

(2) The protection and advocacy agency shall have immediate
access to the records, not later than 24 hours after the agency makes
a request, without consent from another party, in a situation in
which treatment, services, supports, or other assistance is provided
to an individual with a disability, if the agency determines there
is probable cause to believe that the health or safety of the
individual is in serious and immediate jeopardy, or in a case of
death of an individual with a disability.

(f) Confidential information kept or obtained by the protection
and advocacy agency shall remain confidential and may not be
subject to disclosure. This subdivision shall not, however, prevent
the protection and advocacy agency from doing any of the
following:

(1) Sharing the information with the individual client who is
the subject of the record or report or other document, or with his
or her legally authorized representative, subject to any limitation
on disclosure to recipients of mental health services as provided
in subsection (b) of Section 10806 of Title 42 of the United States
Code.

(2) Issuing a public report of the results of an investigation that
maintains the confidentiality of individual service recipients.

(3) Reporting the results of an investigation to responsible
investigative or enforcement agencies should an investigation
reveal information concerning the facility, its staff, or employees
warranting possible sanctions or corrective action. begin delete This end delete begin insert The end insert
information may be reported to agencies that are responsible for
facility licensing or accreditation, employee discipline, employee
licensing or certification suspension or revocation, or criminal
prosecution.

(4) Pursuing alternative remedies, including the initiation of
legal action.

(5) Reporting suspected elder or dependent adult abuse pursuant
to the Elder Abuse and Dependent Adult Civil Protection Act
(Chapter 11 (commencing with Section 15600) of Part 3 of
Division 9).

(g) The protection and advocacy agency shall inform and train
employees as appropriate regarding the confidentiality of client
records.

(h) The authority provided pursuant to subdivision (b) shall
include access to all of the following:

(1) An unredacted facility evaluation report form or an
unredacted complaint investigation report form of the State
Department of Social Services. This information shall remain
confidential and subject to the confidentiality requirements of
subdivision (f).

(2) An unredacted citation report, unredacted licensing report,
unredacted survey report, unredacted plan of correction, or
unredacted statement of deficiency of the State Department of
Public Health, prepared by authorized licensing personnel or
authorized representatives begin insert as end insert described in subdivision begin delete (n). This end delete
begin insert (a) of Section 5328.15. The end insert information shall remain confidential
and subject to the confidentiality requirements of subdivision (f).

begin insert

begin insert SEC. 582. end insert   

end insert

begin insert Section 5328.15 of the end insert begin insert Welfare and Institutions Code end insert
begin insert is amended to read: end insert

5328.15.  

All information and records obtained in the course
of providing services under Division 5 (commencing with Section
5000), Division 6 (commencing with Section 6000), or Division
7 (commencing with Section begin delete 7000), end delete begin insert 7100), end insert to either voluntary or
involuntary recipients of services shall be confidential. Information
and records may be disclosed, however, notwithstanding any other
begin delete provision of end delete law, as follows:

(a) To authorized licensing personnel who are employed by, or
who are authorized representatives of, the State Department of
Public Health, and who are licensed or registered health
professionals, and to authorized legal staff or special investigators
who are peace officers who are employed by, or who are authorized
representatives of the State Department of Social Services, as
necessary to the performance of their duties to inspect, license,
and investigate health facilities and community care facilities and
to ensure that the standards of care and services provided in such
facilities are adequate and appropriate and to ascertain compliance
with the rules and regulations to which the facility is subject. The
confidential information shall remain confidential except for
purposes of inspection, licensing, or investigation pursuant to
Chapter 2 (commencing with Section 1250) of, and Chapter 3
(commencing with Section 1500) of, Division 2 of the Health and
Safety Code, or a criminal, civil, or administrative proceeding in
relation thereto. The confidential information may be used by the
State Department of Public Health or the State Department of
Social Services in a criminal, civil, or administrative proceeding.
The confidential information shall be available only to the judge
or hearing officer and to the parties to the case. Names which are
confidential shall be listed in attachments separate to the general
pleadings. The confidential information shall be sealed after the
conclusion of the criminal, civil, or administrative hearings, and
shall not subsequently be released except in accordance with this
subdivision. If the confidential information does not result in a
criminal, civil, or administrative proceeding, it shall be sealed after
the State Department of Public Health or the State Department of
Social Services decides that no further action will be taken in the
matter of suspected licensing violations. Except as otherwise
provided in this subdivision, confidential information in the
possession of the State Department of Public Health or the State
Department of Social Services shall not contain the name of the
patient.

(b) To any board which licenses and certifies professionals in
the fields of mental health pursuant to state law, when the Director
of State Hospitals has reasonable cause to believe that there has
occurred a violation of any provision of law subject to the
jurisdiction of that board and the records are relevant to the
violation. begin delete This end delete begin insert The end insert information shall be sealed after a decision is
reached in the matter of the suspected violation, and shall not
subsequently be released except in accordance with this
subdivision. Confidential information in the possession of the
board shall not contain the name of the patient.

(c) To a protection and advocacy agency established pursuant
to Section 4901, to the extent that the information is incorporated
within any of the following:

(1) An unredacted facility evaluation report form or an
unredacted complaint investigation report form of the State
Department of Social Services. begin delete This end delete begin insert The end insert information shall remain
confidential and subject to the confidentiality requirements of
subdivision (f) of Section 4903.

(2) An unredacted citation report, unredacted licensing report,
unredacted survey report, unredacted plan of correction, or
unredacted statement of deficiency of the State Department of
Public Health, prepared by authorized licensing personnel or
authorized representatives begin insert as end insert described in subdivision begin delete (n). This end delete
begin insert (a). The end insert information shall remain confidential and subject to the
confidentiality requirements of subdivision (f) of Section 4903.

begin delete SEC. 574. end delete
begin insert SEC. 583. end insert   

Section 5840.2 of the Welfare and Institutions Code
is amended to read:

5840.2.  

The department shall contract for the provision of
services pursuant to this part with each county mental health
program in the manner set forth in Section 5897.

begin delete SEC. 575. end delete
begin insert SEC. 584. end insert   

The heading of Article 8 (commencing with Section
5869) of Chapter 1 of Part 4 of Division 5 of the Welfare and
Institutions Code is amended to read:

 

Article 8.  State Department of Health Care Services
Requirements

 

begin delete SEC. 576. end delete
begin insert SEC. 585. end insert   

Section 5892.5 of the Welfare and Institutions Code
is amended to read:

5892.5.  

(a) (1) The California Housing Finance Agency, with
the concurrence of the State Department of Health Care Services,
shall release unencumbered Mental Health Services Fund moneys
dedicated to the Mental Health Services Act housing program upon
the written request of the respective county. The county shall use
these Mental Health Services Fund moneys released by the agency
to provide housing assistance to the target populations who are
identified in Section 5600.3.

(2) For purposes of this section, “housing assistance” means
each of the following:

(A) Rental assistance or capitalized operating subsidies.

(B) Security deposits, utility deposits, or other move-in cost
assistance.

(C) Utility payments.

(D) Moving cost assistance.

(E) Capital funding to build or rehabilitate housing for homeless,
mentally ill persons or mentally ill persons who are at risk of being
homeless.

(b) For purposes of administering those funds released to a
respective county pursuant to subdivision (a), the county shall
comply with all of the requirements described in the Mental Health
Services Act, including, but not limited to, Sections 5664, 5847,
subdivision (h) of Section 5892, and 5899.

begin delete SEC. 577. end delete
begin insert SEC. 586. end insert   

The heading of Article 1 (commencing with Section
6331) is added to Chapter 2 of Part 2 of Division 6 of the Welfare
and Institutions Code, to read:

 

Article 1.  Mentally Disordered Sex Offenders (Repealed)

 

begin delete SEC. 578. end delete
begin insert SEC. 587. end insert   

Section 9757.5 of the Welfare and Institutions Code
is amended and renumbered to read:

9541.5.  

(a) The California Department of Aging shall assess
annually a fee of not less than one dollar and forty cents ($1.40),
but not more than one dollar and sixty-five cents ($1.65), on a
health care service plan for each person enrolled in a health care
service plan as of December 31 of the previous year under a prepaid
Medicare program that serves Medicare eligible beneficiaries
within the state, and on a health care service plan for each enrollee
under a Medicare supplement contract, including a Medicare Select
contract, as of December 31 of the previous year, to offset the cost
of counseling Medicare eligible beneficiaries on the benefits and
programs available through health maintenance organizations
instead of the traditional Medicare provider system.

(b) All fees collected pursuant to this section shall be deposited
into the State HICAP Fund for the implementation of the Health
Insurance Counseling and Advocacy Program, and shall be
available for expenditure for activities as specified in Section 9541
when appropriated by the Legislature.

(c) The department may use up to 7 percent of the fee collected
pursuant to subdivision (a) for the administration, assessment, and
collection of that fee.

(d) It is the intent of the Legislature, in enacting this act and
funding the Health Insurance Counseling and Advocacy Program,
to maintain a ratio of two dollars ($2) collected from the Insurance
Fund to every one dollar ($1) collected pursuant to subdivision
(a). This ratio shall be reviewed by the Department of Finance
within 30 days of January 1, 1999, and biennially thereafter to
examine changes in the demographics of Medicare imminent
populations, including, but not limited to, the number of citizens
residing in California 55 years of age and older, the number and
average duration of counseling sessions performed by counselors
of the Health Insurance Counseling and Advocacy Program,
particularly the number of counseling sessions regarding prepaid
Medicare programs and counseling sessions regarding Medi-Gap
programs, and the use of other long-term care and health-related
products. Upon review, the Department of Finance shall make
recommendations to the Joint Legislative Budget Committee
regarding appropriate changes to the ratio of funding from the
Insurance Fund and the fees collected pursuant to subdivision (a).

(e) It is the intent of the Legislature that the revenue raised from
the fee assessed pursuant to subdivision (a), and according to the
ratio established pursuant to subdivision (d), be used to partially
offset and reduce the amount of revenue appropriated annually
from the Insurance Fund for funding of the Health Insurance
Counseling and Advocacy Program.

(f) There shall be established in the State Treasury a “State
HICAP Fund” administered by the California Department of Aging
for the purpose of collecting fee assessments described in
subdivision (a), and for the sole purpose of funding the Health
Insurance Counseling and Advocacy Program.

(g) It is the intent of the Legislature that, starting in the
2005--06 fiscal year, two million dollars ($2,000,000) of additional
funding shall be made available to local HICAP programs, to be
derived from an increase in the HICAP fee and the corresponding
Insurance Fund pursuant to subdivision (d). Any additional funding
shall only be used for local HICAP funding and shall not be used
for department or local area agencies on aging administration.

begin delete SEC. 579. end delete
begin insert SEC. 588. end insert   

Section 10104 of the Welfare and Institutions Code
is amended to read:

10104.  

(a) It is the intent of the Legislature to ensure that the
impacts of the 2011 realignment of child welfare services, foster
care, adoptions, and adult protective services programs are
identified and evaluated initially and over time. It is further the
intent of the Legislature to ensure that information regarding these
impacts is publicly available and accessible and can be utilized to
support the state’s and counties’ effectiveness in delivering these
critical services and supports.

(b) The State Department of Social Services shall annually
report to the appropriate fiscal and policy committees of the
Legislature, and publicly post on the department’s Internet Web
site, a summary of outcome and expenditure data that allows for
monitoring of changes over time.

(c) The report shall be submitted and posted by April 15 of each
year and shall contain expenditures for each county for the
programs described in clauses (i) to (vii), inclusive, of
subparagraph (A) of paragraph (16) of subdivision (f) of Section
30025 of the Government Code. To the extent that the information
is readily or publicly available, the report shall also contain the
amount of funds each county receives from the Protective Services
Growth Special Account created pursuant to Section 30025 of the
Government Code, child welfare services social worker caseloads
per county, and the number of authorized positions in the local
child welfare services agency.

(d) The department shall consult with legislative staff and with
stakeholders to develop a reporting format consistent with the
Legislature’s desired level of outcome and expenditure reporting
detail.

begin delete SEC. 580. end delete
begin insert SEC. 589. end insert   

Section 11253.5 of the Welfare and Institutions
Code is amended to read:

11253.5.  

(a) All children in an assistance unit for whom school
attendance is compulsory, except individuals who are eligible for
the Cal-Learn Program under Article 3.5 (commencing with
Section 11331), for any period during which that article is
operative, and children subject to a county school attendance
project under Article 2 (commencing with Section 18236) of
Chapter 3.3 of Part 6, shall be required to attend school pursuant
to subdivision (f).

(b) Applicants for and recipients of aid under this chapter shall
be informed of the attendance requirement in subdivision (a) and
it shall be included in the recipients’ welfare-to-work plan under
Section 11325.21.

(c) A recipient shall cooperate in providing the county with
documentation routinely available from the school or school district
of regular attendance of all children described in subdivision (a)
in the assistance unit when the county determines it is appropriate,
unless there is good cause for the inability to secure that
documentation.

(d) If it is determined by the county that any child in the
assistance unit is not attending school as required by subdivision
(a), the family may be informed of how to enroll the child in a
continuation school within the county and may be screened to
determine eligibility for family stabilization services pursuant to
Section 11325.24 and in accordance with county policy and
procedures. If applicable, the county shall document that the family
was given this information and was screened for those services.
The needs of a child in the assistance unit who is 16 years of age
or older shall not be considered in computing the grant of the
family under Section 11450 for any month in which the county is
informed by a school district or a county school attendance review
board that the child did not attend school pursuant to subdivision
(f), unless at least one of the following conditions is present:

(1) The county is provided with evidence that the child’s
attendance records are not available.

(2) The county is provided with evidence that the child has been
attending school.

(3) Good cause for school nonparticipation exists at any time
during the month.

(4) Any member of the household is eligible to participate in
family stabilization pursuant to Section 11325.24.

(5) The county is provided with evidence that the child, parent,
or caregiver is complying with requirements imposed by a school
attendance review board, the county probation department, or the
district attorney pursuant to Section 48263 or 48263.5 of the
Education Code.

(6) A member of the household is cooperating with a plan
developed by a county child welfare agency.

(e) A child whose needs have not been considered in computing
the grant of the family pursuant to this section shall remain eligible
for services that may lead to attendance in school.

(f) For the purposes of this section, a child shall be presumed
to be attending school unless he or she has been deemed a chronic
truant pursuant to Section 48263.6 of the Education Code.

begin delete SEC. 581. end delete
begin insert SEC. 590. end insert   

Section 11325.24 of the Welfare and Institutions
Code is amended to read:

11325.24.  

(a) If, in the course of appraisal pursuant to Section
11325.2 or at any point during an individual’s participation in
welfare-to-work activities in accordance with paragraph (1) of
subdivision (a) of Section 11322.85, it is determined that a recipient
meets the criteria described in subdivision (b), the recipient is
eligible to participate in family stabilization.

(b) (1) A recipient is eligible to participate in family
stabilization if the county determines that his or her family is
experiencing an identified situation or crisis that is destabilizing
the family and would interfere with participation in welfare-to-work
activities and services.

(2) A situation or a crisis that is destabilizing the family in
accordance with paragraph (1) may include, but shall not be limited
to:

(A) Homelessness or imminent risk of homelessness.

(B) A lack of safety due to domestic violence.

(C) Untreated or undertreated behavioral needs, including mental
health or substance abuse-related needs.

(c) Family stabilization shall include intensive case management
and services designed to support the family in overcoming the
situation or crisis, which may include, but are not limited to,
welfare-to-work activities.

(d) Funds allocated for family stabilization in accordance with
this section shall be in addition to, and independent of, the county
allocations made pursuant to Section 15204.2.

(e) Funds allocated for family stabilization in accordance with
this section, or the county allocations made pursuant to Section
15204.2, may be used to provide housing and other needed services
to a family during any month that a family is participating in family
stabilization.

(f) Each county shall submit to the department a plan, as defined
by the department, regarding how it intends to implement the
provisions of this section and shall report information to the
department, including, but not limited to, the number of recipients
served pursuant to this section, information regarding the services
provided, outcomes for the families served, and any lack of
availability of services. The department shall provide an update
regarding this information to the Legislature during the 2014-15
budget process.

(g) It is the intent of the Legislature that family stabilization be
a voluntary component intended to provide needed services and
constructive interventions for parents and to assist in barrier
removal for families facing very difficult needs. Participants in
family stabilization are encouraged to participate, but the
Legislature does not intend that parents be sanctioned as part of
their experience in this program component. The Legislature further
intends that recipients refusing or unable to follow their family
stabilization plans without good cause be returned to the traditional
welfare-to-work program.

begin delete SEC. 582. end delete
begin insert SEC. 591. end insert   

Section 11363 of the Welfare and Institutions Code
is amended to read:

11363.  

(a) Aid in the form of state-funded Kin-GAP shall be
provided under this article on behalf of any child under 18 years
of age and to any eligible youth under 19 years of age as provided
in Section 11403, who satisfies all of the following conditions:

(1) Has been adjudged a dependent child of the juvenile court
pursuant to Section 300, or, effective October 1, 2006, a ward of
the juvenile court pursuant to Section 601 or 602.

(2) Has been residing for at least six consecutive months in the
approved home of the prospective relative guardian while under
the jurisdiction of the juvenile court or a voluntary placement
agreement.

(3) Has had a kinship guardianship established pursuant to
Section 360 or 366.26.

(4) Has had his or her dependency jurisdiction terminated after
January 1, 2000, pursuant to Section 366.3, or his or her wardship
terminated pursuant to subdivision (e) of Section 728, concurrently
or subsequently to the establishment of the kinship guardianship.

(b) If the conditions specified in subdivision (a) are met and,
subsequent to the termination of dependency jurisdiction, any
parent or person having an interest files with the juvenile court a
petition pursuant to Section 388 to change, modify, or set aside an
order of the court, Kin-GAP payments shall continue unless and
until the juvenile court, after holding a hearing, orders the child
removed from the home of the guardian, terminates the
guardianship, or maintains dependency jurisdiction after the court
concludes the hearing on the petition filed under Section 388.

(c) A child or nonminor former dependent or ward shall be
eligible for Kin-GAP payments if he or she meets one of the
following age criteria:

(1) He or she is under 18 years of age.

(2) He or she is under 21 years of age and has a physical or
mental disability that warrants the continuation of assistance.

(3) Through December 31, 2011, he or she satisfies the
conditions of Section 11403, and on and after January 1, 2012, he
or she satisfies the conditions of Section 11403.01.

(4) He or she satisfies the conditions as described in subdivision
(d).

(d) Commencing January 1, 2012, state-funded Kin-GAP
payments shall continue for youths who have attained 18 years of
age and who are under 19 years of age, if they reached 16 years
of age before the Kin-GAP negotiated agreement payments
commenced, and as described in Section 10103.5. Effective January
1, 2013, Kin-GAP payments shall continue for youths who have
attained 18 years of age and are under 20 years of age, if they
reached 16 years of age before the Kin-GAP negotiated agreement
payments commenced, and as described in Section 10103.5.
Effective January 1, 2014, Kin-GAP payments shall continue for
youths who have attained 18 years of age and are under 21 years
of age, if they reached 16 years of age before the Kin-GAP
negotiated agreement payments commenced. To be eligible for
continued payments, the youth shall satisfy one or more of the
conditions specified in paragraphs (1) to (5), inclusive, of
subdivision (b) of Section 11403.

(e) Termination of the guardianship with a kinship guardian
shall terminate eligibility for Kin-GAP unless the conditions in
Section 11403 apply; provided, however, that if an alternate
guardian or coguardian is appointed pursuant to Section 366.3 who
is also a kinship guardian, the alternate or coguardian shall be
entitled to receive Kin-GAP on behalf of the child pursuant to this
article. A new period of six months of placement with the alternate
guardian or coguardian shall not be required if that alternate
guardian or coguardian has been assessed pursuant to Sections
361.3 and 361.4 and the court terminates dependency jurisdiction.
When a nonminor former dependent is receiving Kin-GAP after
18 years of age and the nonminor former dependent’s former
guardian dies, the nonminor former dependent may petition the
court for a hearing pursuant to Section 388.1.

begin delete SEC. 583. end delete
begin insert SEC. 592. end insert   

Section 11403 of the Welfare and Institutions Code
is amended to read:

11403.  

(a) It is the intent of the Legislature to exercise the
option afforded states under Section 475(8) (42 U.S.C. Sec.
675(8)), and Section 473(a)(4) (42 U.S.C. Sec. 673(a)(4)) of the
federal Social Security Act, as contained in the federal Fostering
Connections to Success and Increasing Adoptions Act of 2008
(Public Law 110-351), to receive federal financial participation
for nonminor dependents of the juvenile court who satisfy the
conditions of subdivision (b), consistent with their transitional
independent living case plan. Effective January 1, 2012, these
nonminor dependents shall be eligible to receive support up to 19
years of age, effective January 1, 2013, up to 20 years of age, and
effective January 1, 2014, up to 21 years of age, consistent with
their transitional independent living case plan and as described in
Section 10103.5. It is the intent of the Legislature both at the time
of initial determination of the nonminor dependent’s eligibility
and throughout the time the nonminor dependent is eligible for aid
pursuant to this section, that the social worker or probation officer
or Indian tribal placing entity and the nonminor dependent shall
work together to ensure the nonminor dependent’s ongoing
eligibility. All case planning shall be a collaborative effort between
the nonminor dependent and the social worker, probation officer,
or Indian tribe, with the nonminor dependent assuming increasing
levels of responsibility and independence.

(b) A nonminor dependent receiving aid pursuant to this chapter,
who satisfies the age criteria set forth in subdivision (a), shall meet
the legal authority for placement and care by being under a foster
care placement order by the juvenile court, or the voluntary reentry
agreement as set forth in subdivision (z) of Section 11400, and is
otherwise eligible for AFDC-FC payments pursuant to Section
11401. A nonminor who satisfies the age criteria set forth in
subdivision (a), and who is otherwise eligible, shall continue to
receive CalWORKs payments pursuant to Section 11253 or, as a
nonminor former dependent or ward, aid pursuant to Kin-GAP
under Article 4.5 (commencing with Section 11360) or Article 4.7
(commencing with Section 11385) or adoption assistance payments
as specified in Chapter 2.1 (commencing with Section 16115) of
Part 4. Effective January 1, 2012, a nonminor former dependent
child or ward of the juvenile court who is receiving AFDC-FC
benefits pursuant to Section 11405 and who satisfies the criteria
set forth in subdivision (a) shall be eligible to continue to receive
aid as long as the nonminor is otherwise eligible for AFDC-FC
benefits under this subdivision. This subdivision applies when one
or more of the following conditions exist:

(1) The nonminor is completing secondary education or a
program leading to an equivalent credential.

(2) The nonminor is enrolled in an institution which provides
postsecondary or vocational education.

(3) The nonminor is participating in a program or activity
designed to promote, or remove barriers to employment.

(4) The nonminor is employed for at least 80 hours per month.

(5) The nonminor is incapable of doing any of the activities
described in subparagraphs (1) to (4), inclusive, due to a medical
condition, and that incapability is supported by regularly updated
information in the case plan of the nonminor. The requirement to
update the case plan under this section shall not apply to nonminor
former dependents or wards in receipt of Kin-GAP program or
Adoption Assistance Program payments.

(c) The county child welfare or probation department, Indian
tribe, consortium of tribes, or tribal organization that has entered
into an agreement pursuant to Section 10553.1, shall work together
with a nonminor dependent who is in foster care on his or her 18th
birthday and thereafter or a nonminor former dependent receiving
aid pursuant to Section 11405, to satisfy one or more of the
conditions described in paragraphs (1) to (5), inclusive, of
subdivision (b) and shall certify the nonminor’s applicable
condition or conditions in the nonminor’s six-month transitional
independent living case plan update, and provide the certification
to the eligibility worker and to the court at each six-month case
plan review hearing for the nonminor dependent. Relative
guardians who receive Kin-GAP payments and adoptive parents
who receive adoption assistance payments shall be responsible for
reporting to the county welfare agency that the nonminor does not
satisfy at least one of the conditions described in subdivision (b).
The social worker, probation officer, or tribal entity shall verify
and obtain assurances that the nonminor dependent continues to
satisfy at least one of the conditions in paragraphs (1) to (5),
inclusive, of subdivision (b) at each six-month transitional
independent living case plan update. The six-month case plan
update shall certify the nonminor’s eligibility pursuant to
subdivision (b) for the next six-month period. During the six-month
certification period, the payee and nonminor shall report any
change in placement or other relevant changes in circumstances
that may affect payment. The nonminor dependent, or nonminor
former dependent receiving aid pursuant to subdivision (e) of
Section 11405, shall be informed of all due process requirements,
in accordance with state and federal law, prior to an involuntary
termination of aid, and shall simultaneously be provided with a
written explanation of how to exercise his or her due process rights
and obtain referrals to legal assistance. Any notices of action
regarding eligibility shall be sent to the nonminor dependent or
former dependent, his or her counsel, as applicable, and the placing
worker, in addition to any other payee. Payments of aid pursuant
to Kin-GAP under Article 4.5 (commencing with Section 11360)
or Article 4.7 (commencing with Section 11385), adoption
assistance payments as specified in Chapter 2.1 (commencing with
Section 16115) of Part 4, or aid pursuant to subdivision (e) of
Section 11405 that are made on behalf of a nonminor former
dependent shall terminate subject to the terms of the agreements.
Subject to federal approval of amendments to the state plan, aid
payments may be suspended and resumed based on changes of
circumstances that affect eligibility. Nonminor former dependents,
as identified in paragraph (2) of subdivision (aa) of Section 11400,
are not eligible for reentry under subdivision (e) of Section 388 as
nonminor dependents under the jurisdiction of the juvenile court,
but may be eligible for reentry pursuant to Section 388.1 if (1) the
nonminor former dependent was receiving aid pursuant to Kin-GAP
under Article 4.5 (commencing with Section 11360) or Article 4.7
(commencing with Section 11385), the nonminor former dependent
was receiving aid pursuant to subdivision (e) of Section 11405, or
the nonminor was receiving adoption assistance payments as
specified in Chapter 2.1 (commencing with Section 16115) of Part
3, and (2) the nonminor’s former guardian or adoptive parent dies,
or no longer provides ongoing support to, and no longer receives
benefits on behalf of, the nonminor after the nonminor turns 18
years of age but before the nonminor turns 21 years of age.
Nonminor former dependents requesting the resumption of
AFDC-FC payments pursuant to subdivision (e) of Section 11405
shall complete the applicable portions of the voluntary reentry
agreement, as described in subdivision (z) of Section 11400.

(d) A nonminor dependent may receive all of the payment
directly provided that the nonminor is living independently in a
supervised placement, as described in subdivision (w) of Section
11400, and that both the youth and the agency responsible for the
foster care placement have signed a mutual agreement, as defined
in subdivision (u) of Section 11400, if the youth is capable of
making an informed agreement, that documents the continued need
for supervised out-of-home placement, and the nonminor’s and
social worker’s or probation officer’s agreement to work together
to facilitate implementation of the mutually developed supervised
placement agreement and transitional independent living case plan.

(e) Eligibility for aid under this section shall not terminate until
the nonminor dependent attains the age criteria, as set forth in
subdivision (a), but aid may be suspended when the nonminor
dependent no longer resides in an eligible facility, as described in
Section 11402, or is otherwise not eligible for AFDC-FC benefits
under Section 11401, or terminated at the request of the nonminor,
or after a court terminates dependency jurisdiction pursuant to
Section 391, delinquency jurisdiction pursuant to Section 607.2,
or transition jurisdiction pursuant to Section 452. AFDC-FC
benefits to nonminor dependents, may be resumed at the request
of the nonminor by completing a voluntary reentry agreement
pursuant to subdivision (z) of Section 11400, before or after the
filing of a petition filed pursuant to subdivision (e) of Section 388
after a court terminates dependency or transitional jurisdiction
pursuant to Section 391, or delinquency jurisdiction pursuant to
Section 607.2. The county welfare or probation department or
Indian tribal entity that has entered into an agreement pursuant to
Section 10553.1 shall complete the voluntary reentry agreement
with the nonminor who agrees to satisfy the criteria of the
agreement, as described in subdivision (z) of Section 11400. The
county welfare department or tribal entity shall establish a new
child-only Title IV-E eligibility determination based on the
nonminor’s completion of the voluntary reentry agreement pursuant
to Section 11401. The beginning date of aid for either federal or
state AFDC-FC for a reentering nonminor who is placed in foster
care is the date the voluntary reentry agreement is signed or the
nonminor is placed, whichever is later. The county welfare
department, county probation department, or tribal entity shall
provide a nonminor dependent who wishes to continue receiving
aid with the assistance necessary to meet and maintain eligibility.

(f) (1) The county having jurisdiction of the nonminor
dependent shall remain the county of payment under this section
regardless of the youth’s physical residence. Nonminor former
dependents receiving aid pursuant to subdivision (e) of Section
11405 shall be paid by their county of residence. Counties may
develop courtesy supervision agreements to provide case
management and independent living services by the county of
residence pursuant to the nonminor dependent’s transitional
independent living case plan. Placements made out of state are
subject to the applicable requirements of the Interstate Compact
on Placement of Children, pursuant to Part 5 (commencing with
Section 7900) of Division 12 of the Family Code.

(2) The county welfare department, county probation
department, or tribal entity shall notify all foster youth who attain
16 years of age and are under the jurisdiction of that county or
tribe, including those receiving Kin-GAP, and AAP, of the
existence of the aid prescribed by this section.

(3) The department shall seek any waiver to amend its Title
IV-E State Plan with the Secretary of the United States Department
of Health and Human Services necessary to implement this section.

(g) (1) Subject to paragraph (3), a county shall pay the
nonfederal share of the cost of extending aid pursuant to this
section to eligible nonminor dependents who have reached 18
years of age and who are under the jurisdiction of the county,
including AFDC-FC payments pursuant to Section 11401, aid
pursuant to Kin-GAP under Article 4.7 (commencing with Section
11385), adoption assistance payments as specified in Chapter 2.1
(commencing with Section 16115) of Part 4, and aid pursuant to
Section 11405 for nonminor dependents who are residing in the
county as provided in paragraph (1) of subdivision (f). A county
shall contribute to the CalWORKs payments pursuant to Section
11253 and aid pursuant to Kin-GAP under Article 4.5 (commencing
with Section 11360) at the statutory sharing ratios in effect on
January 1, 2012.

(2) Subject to paragraph (3), a county shall pay the nonfederal
share of the cost of providing permanent placement services
pursuant to subdivision (c) of Section 16508 and administering
the Aid to Families with Dependent Children Foster Care program
pursuant to Section 15204.9. For purposes of budgeting, the
department shall use a standard for the permanent placement
services that is equal to the midpoint between the budgeting
standards for family maintenance services and family reunification
services.

(3) (A) (i) Notwithstanding any other law, a county’s required
total contribution pursuant to paragraphs (1) and (2), excluding
costs incurred pursuant to Section 10103.5, shall not exceed the
amount of savings in Kin-GAP assistance grant expenditures
realized by the county from the receipt of federal funds due to the
implementation of Article 4.7 (commencing with Section 11385),
and the amount of funding specifically included in the Protective
Services Subaccount within the Support Services Account within
the Local Revenue Fund 2011, plus any associated growth funding
from the Support Services Growth Subaccount within the Sales
and Use Tax Growth Account to pay the costs of extending aid
pursuant to this section.

(ii) A county, at its own discretion, may expend additional funds
beyond the amounts identified in clause (i). These additional
amounts shall not be included in any cost and savings calculations
or comparisons performed pursuant to this section.

(B) Beginning in the 2011-12 fiscal year, and for each fiscal
year thereafter, funding and expenditures for programs and
activities under this section shall be in accordance with the
requirements provided in Sections 30025 and 30026.5 of the
Government Code. In addition, the following are available to the
counties for the purpose of funding costs pursuant to this section:

(i) The savings in Kin-GAP assistance grant expenditures
realized from the receipt of federal funds due to the implementation
of Article 4.7 (commencing with Section 11385).

(ii) The savings realized from the change in federal funding for
adoption assistance resulting from the enactment of Public Law
110-351 and consistent with subdivision (d) of Section 16118.

(4) (A) The limit on the county’s total contribution pursuant to
paragraph (3) shall be assessed by the State Department of Social
Services, in conjunction with the California State Association of
Counties, in 2015-16, to determine if it shall be removed. The
assessment of the need for the limit shall be based on a
determination on a statewide basis of whether the actual county
costs of providing extended care pursuant to this section, excluding
costs incurred pursuant to Section 10103.5, are fully funded by
the amount of savings in Kin-GAP assistance grant expenditures
realized by the counties from the receipt of federal funds due to
the implementation of Article 4.7 (commencing with Section
11385) and the amount of funding specifically included in the
Protective Services Subaccount within the Support Services
Account within the Local Revenue Fund 2011 plus any associated
growth funding from the Support Services Growth Subaccount
within the Sales and Use Tax Growth Account to pay the costs of
extending aid pursuant to this section.

(B) If the assessment pursuant to subparagraph (A) shows that
the statewide total costs of extending aid pursuant to this section,
excluding costs incurred pursuant to Section 10103.5, are fully
funded by the amount of savings in Kin-GAP assistance grant
expenditures realized by the counties from the receipt of federal
funds due to the implementation of Article 4.7 (commencing with
Section 11385) and the amount of funding specifically included
in the Protective Services Subaccount within the Support Services
Account within the Local Revenue Fund 2011 plus any associated
growth funding from the Support Services Growth Subaccount
within the Sales and Use Tax Growth Account to pay the costs of
extending aid pursuant to this section, the Department of Finance
shall certify that fact, in writing, and shall post the certification on
its Internet Web site, at which time subparagraph (A) of paragraph
(3) shall no longer be implemented.

(h) It is the intent of the Legislature that a county currently
participating in the Child Welfare Demonstration Capped
Allocation Project not be adversely impacted by the department’s
exercise of its option to extend foster care benefits pursuant to
Section 673(a)(4) and Section 675(8) of Title 42 of the United
States Code in the federal Social Security Act, as contained in the
federal Fostering Connections to Success and Increasing Adoptions
Act of 2008 (Public Law 110-351). Therefore, the department shall
negotiate with the United States Department of Health and Human
Services on behalf of those counties that are currently participating
in the demonstration project to ensure that those counties receive
reimbursement for these new programs outside of the provisions
of those counties’ waiver under Subtitle IV-E (commencing with
Section 470) of the federal Social Security Act (42 U.S.C. Sec.
670 et seq.).

(i) The department, on or before July 1, 2013, shall develop
regulations to implement this section in consultation with
concerned stakeholders, including, but not limited to,
representatives of the Legislature, the County Welfare Directors
Association, the Chief Probation Officers of California, the Judicial
Council, representatives of Indian tribes, the California Youth
Connection, former foster youth, child advocacy organizations,
labor organizations, juvenile justice advocacy organizations, foster
caregiver organizations, and researchers. In the development of
these regulations, the department shall consider its Manual of
Policy and Procedures, Division 30, Chapter 30-912, 913, 916,
and 917, as guidelines for developing regulations that are
appropriate for young adults who can exercise incremental
responsibility concurrently with their growth and development.
The department, in its consultation with stakeholders, shall take
into consideration the impact to the Automated Child Welfare
Services Case Management Services (CWS-CMS) and required
modifications needed to accommodate eligibility determination
under this section, benefit issuance, case management across
counties, and recognition of the legal status of nonminor
dependents as adults, as well as changes to data tracking and
reporting requirements as required by the Child Welfare System
Improvement and Accountability Act as specified in Section
10601.2, and federal outcome measures as required by the federal
John H. Chafee Foster Care Independence Program (42 U.S.C.
Sec. 677(f)). In addition, the department, in its consultation with
stakeholders, shall define the supervised independent living setting
which shall include, but not be limited to, apartment living, room
and board arrangements, college or university dormitories, and
shared roommate settings, and define how those settings meet
health and safety standards suitable for nonminors. The department,
in its consultation with stakeholders, shall define the six-month
certification of the conditions of eligibility pursuant to subdivision
(b) to be consistent with the flexibility provided by federal policy
guidance, to ensure that there are ample supports for a nonminor
to achieve the goals of his or her transition independent living case
plan. The department, in its consultation with stakeholders, shall
ensure that notices of action and other forms created to inform the
nonminor of due process rights and how to access them shall be
developed, using language consistent with the special needs of the
nonminor dependent population.

(j) Notwithstanding the Administrative Procedure Act, Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of
Title 2 of the Government Code, the department shall prepare for
implementation of the applicable provisions of this section by
publishing, after consultation with the stakeholders listed in
subdivision (i), all-county letters or similar instructions from the
director by October 1, 2011, to be effective January 1, 2012.
Emergency regulations to implement the applicable provisions of
this act may be adopted by the director in accordance with the
Administrative Procedure Act. The initial adoption of the
emergency regulations and one readoption of the emergency
regulations shall be deemed to be an emergency and necessary for
the immediate preservation of the public peace, health, safety, or
general welfare. Initial emergency regulations and the first
readoption of those emergency regulations shall be exempt from
review by the Office of Administrative Law. The emergency
regulations authorized by this section shall be submitted to the
Office of Administrative Law for filing with the Secretary of State
and shall remain in effect for no more than 180 days.

begin delete SEC. 584. end delete
begin insert SEC. 593. end insert   

Section 11460 of the Welfare and Institutions Code
is amended to read:

11460.  

(a) Foster care providers shall be paid a per child per
month rate in return for the care and supervision of the AFDC-FC
child placed with them. The department is designated as the single
organizational unit whose duty it shall be to administer a state
system for establishing rates in the AFDC-FC program. State
functions shall be performed by the department or by delegation
of the department to county welfare departments or Indian tribes,
consortia of tribes, or tribal organizations that have entered into
an agreement with the department pursuant to Section 10553.1.

(b) “Care and supervision” includes food, clothing, shelter, daily
supervision, school supplies, a child’s personal incidentals, liability
insurance with respect to a child, reasonable travel to the child’s
home for visitation, and reasonable travel for the child to remain
in the school in which he or she is enrolled at the time of
placement. Reimbursement for the costs of educational travel, as
provided for in this subdivision, shall be made pursuant to
procedures determined by the department, in consultation with
representatives of county welfare and probation directors, and
additional stakeholders, as appropriate.

(1) For a child placed in a group home, care and supervision
shall also include reasonable administration and operational
activities necessary to provide the items listed in this subdivision.

(2) For a child placed in a group home, care and supervision
may also include reasonable activities performed by social workers
employed by the group home provider that are not otherwise
considered daily supervision or administration activities.

(c) It is the intent of the Legislature to establish the maximum
level of state participation in out-of-state foster care group home
program rates effective January 1, 1992.

(1) The department shall develop regulations that establish the
method for determining the level of state participation for each
out-of-state group home program. The department shall consider
all of the following methods:

(A) A standardized system based on the level of care and
services per child per month as detailed in Section 11462.

(B) A system that considers the actual allowable and reasonable
costs of care and supervision incurred by the program.

(C) A system that considers the rate established by the host
state.

(D) Any other appropriate methods as determined by the
department.

(2) State reimbursement for the AFDC-FC group home rate to
be paid to an out-of-state program on or after January 1, 1992,
shall only be paid to programs which have done both of the
following:

(A) Submitted a rate application to the department and received
a determination of the level of state participation.

(i) The level of state participation shall not exceed the current
fiscal year’s standard rate for rate classification level 14.

(ii) The level of state participation shall not exceed the rate
determined by the ratesetting authority of the state in which the
facility is located.

(iii) The level of state participation shall not decrease for any
child placed prior to January 1, 1992, who continues to be placed
in the same out-of-state group home program.

(B) Agreed to comply with information requests, and program
and fiscal audits as determined necessary by the department.

(3) State reimbursement for an AFDC-FC rate paid on or after
January 1, 1993, shall only be paid to a group home organized and
operated on a nonprofit basis.

(d) A foster care provider that accepts payments, following the
effective date of this section, based on a rate established under this
section, shall not receive rate increases or retroactive payments as
the result of litigation challenging rates established prior to the
effective date of this section. This subdivision applies regardless
of whether a provider is a party to the litigation or a member of a
class covered by the litigation.

(e) A county is not precluded from using a portion of its county
funds to increase rates paid to family homes and foster family
agencies within that county, and to make payments for specialized
care increments, clothing allowances, or infant supplements to
homes within that county, solely at that county’s expense.

(f) A county is not precluded from providing a supplemental
rate to serve commercially sexually exploited foster children to
provide for the additional care and supervision needs of these
children. To the extent that federal financial participation is
available, it is the intent of the Legislature that the federal funding
be utilized.

begin delete SEC. 585. end delete
begin insert SEC. 594. end insert   

Section 11461.3 of the Welfare and Institutions
Code is amended to read:

11461.3.  

(a) The Approved Relative Caregiver Funding Option
Program is hereby established for the purpose of making the
amount paid to approved relative caregivers for the in-home care
of children placed with them who are ineligible for AFDC-FC
payments equal to the amount paid on behalf of children who are
eligible for AFDC-FC payments. This is an optional program for
counties choosing to participate, and in so doing, participating
counties agree to the terms of this section as a condition of their
participation. It is the intent of the Legislature that the funding
described in paragraph (1) of subdivision (e) for the Approved
Relative Caregiver Funding Option Program be appropriated and
available for use from January through December of each year,
unless otherwise specified.

(b) Subject to subdivision (c), effective January 1, 2015, counties
shall pay an approved relative caregiver a per child per month rate
in return for the care and supervision, as defined in subdivision
(b) of Section 11460, of a child that is placed with the relative
caregiver that is equal to the basic rate paid to foster care providers
pursuant to subdivision (g) of Section 11461, if both of the
following conditions are met:

(1) The county with payment responsibility notified the
department in writing by October 1 of the year before participation
begins of its decision to participate in the Approved Relative
Caregiver Funding Option Program.

(2) The related child placed in the home meets all of the
following requirements:

(A) The child resides in the State of California.

(B) The child is described by subdivision (b), (c), or (e) of
Section 11401 and the county welfare department or the county
probation department is responsible for the placement and care of
the child.

(C) The child is not eligible for AFDC-FC while placed with
the approved relative caregiver because the child is not eligible
for federal financial participation in the AFDC-FC payment.

(c) A county’s election to participate in the Approved Relative
Caregiver Funding Option Program shall affirmatively indicate
that the county understands and agrees to all of the following
conditions:

(1) Commencing October 1, 2014, the county shall notify the
department in writing of its decision to participate in the Approved
Relative Caregiver Funding Option Program. Failure to make
timely notification, without good cause as determined by the
department, shall preclude the county from participating in the
program for the upcoming year. Annually thereafter, any county
not presently participating who elects to do so shall notify the
department in writing no later than October 1 of its decision to
participate for the upcoming calendar year.

(2) The county shall confirm that it will make per child per
month payments to all approved relative caregivers on behalf of
eligible children in the amount specified in subdivision (b) for the
duration of the participation of the county in this program.

(3) The county shall confirm that it will be solely responsible
to pay any additional costs needed to make all payments pursuant
to subdivision (b) if the state and federal funds allocated to the
Approved Relative Caregiver Funding Option Program pursuant
to paragraph (1) of subdivision (e) are insufficient to make all
eligible payments.

(d) (1) A county deciding to opt out of the Approved Relative
Caregiver Funding Option Program shall provide at least 120 days’
prior written notice of that decision to the department. Additionally,
the county shall provide at least 90 days’ prior written notice to
the approved relative caregiver or caregivers informing them that
his or her per child per month payment will be reduced and the
date that the reduction will occur.

(2) The department shall presume all counties have opted out
of the Approved Relative Caregiver Funding Option Program if
the funding appropriated in subclause (II) of clause (i) of
subparagraph (B) of paragraph (1) of subdivision (e), including
any additional funds appropriated pursuant to clause (ii) of
subparagraph (B) of paragraph (1) of subdivision (e), is reduced,
unless a county notifies the department in writing of its intent to
opt in within 60 days of enactment of the State Budget. The
counties shall provide at least 90 days’ prior written notice to the
approved relative caregiver or caregivers informing them that his
or her per child per month payment will be reduced, and the date
that the reduction will occur.

(3) A reduction in payments received by an approved relative
caregiver on behalf of a child under this section that results from
a decision by a county, including the presumed opt-out pursuant
to paragraph (2), to not participate in the Approved Relative
Caregiver Funding Option Program shall be exempt from state
hearing jurisdiction under Section 10950.

(e) (1) The following funding shall be used for the Approved
Relative Caregiver Funding Option Program:

(A) The applicable regional per-child CalWORKs grant.

(B) (i) General Fund resources that do not count toward the
state’s maintenance of effort requirements under Section
609(a)(7)(B)(i) of Title 42 of the United States Code. For this
purpose, the following money is hereby appropriated:

(I) The sum of thirty million dollars ($30,000,000) from the
General Fund for the period January 1, 2015, through December
31, 2015.

(II) The sum of thirty million dollars ($30,000,000) from the
General Fund in each calendar year thereafter, as cumulatively
adjusted annually by the California Necessities Index used for each
May Revision of the Governor’s Budget, to be used in each
respective calendar year.

(ii) To the extent that the appropriation made in subclause (I)
of clause (i) is insufficient to fully fund the base caseload of
approved relative caregivers as of July 1, 2014, for the period of
time described in subclause (I) of clause (i), as jointly determined
by the department and the County Welfare Directors Association
and approved by the Department of Finance on or before October
1, 2015, the amounts specified in subclauses (I) and (II) of clause
(i) shall be increased in the respective amounts necessary to fully
fund that base caseload. Thereafter, the adjusted amount of
subclause (II) of clause (i), and the other terms of that provision,
including an annual California Necessities Index adjustment to its
amount, shall apply.

(C) County funds only to the extent required under paragraph
(3) of subdivision (c).

(D) This section is intended to appropriate the funding necessary
to fully fund the base caseload of approved relative caregivers,
defined as the number of approved relative caregivers caring for
a child who is not eligible to receive AFDC-FC payments, as of
July 1, 2014.

(2) Funds available pursuant to subparagraphs (A) and (B) of
paragraph (1) shall be allocated to participating counties
proportionate to the number of their approved relative caregiver
placements, using a methodology and timing developed by the
department, following consultation with county human services
agencies and their representatives.

(3) Notwithstanding subdivision (c), if in any calendar year the
entire amount of funding appropriated by the state for the Approved
Relative Caregiver Funding Option Program has not been fully
allocated to, or utilized by, counties, a county that has paid any
funds pursuant to subparagraph (C) of paragraph (1) of subdivision
(e) may request reimbursement for those funds from the
department. The authority of the department to approve the requests
shall be limited by the amount of available unallocated funds.

(f) An approved relative caregiver receiving payments on behalf
of a child pursuant to this section shall not be eligible to receive
additional CalWORKs payments on behalf of the same child under
Section 11450.

(g) To the extent permitted by federal law, payments received
by the approved relative caregiver from the Approved Relative
Caregiver Funding Option Program shall not be considered income
for the purpose of determining other public benefits.

(h) Prior to referral of any individual or recipient, or that
person’s case, to the local child support agency for child support
services pursuant to Section 17415 of the Family Code, the county
human services agency shall determine if an applicant or recipient
has good cause for noncooperation, as set forth in Section
11477.04. If the applicant or recipient claims good cause exception
at any subsequent time to the county human services agency or
the local child support agency, the local child support agency shall
suspend child support services until the county social services
agency determines the good cause claim, as set forth in Section
11477.04. If good cause is determined to exist, the local child
support agency shall suspend child support services until the
applicant or recipient requests their resumption, and shall take
other measures that are necessary to protect the applicant or
recipient and the children. If the applicant or recipient is the parent
of the child for whom aid is sought and the parent is found to have
not cooperated without good cause as provided in Section
11477.04, the applicant’s or recipient’s family grant shall be
reduced by 25 percent for the time the failure to cooperate lasts.

(i) Consistent with Section 17552 of the Family Code, if aid is
paid under this chapter on behalf of a child who is under the
jurisdiction of the juvenile court and whose parent or guardian is
receiving reunification services, the county human services agency
shall determine, prior to referral of the case to the local child
support agency for child support services, whether the referral is
in the best interest of the child, taking into account both of the
following:

(1) Whether the payment of support by the parent will pose a
barrier to the proposed reunification in that the payment of support
will compromise the parent’s ability to meet the requirements of
the parent’s reunification plan.

(2) Whether the payment of support by the parent will pose a
barrier to the proposed reunification in that the payment of support
will compromise the parent’s current or future ability to meet the
financial needs of the child.

begin delete SEC. 586. end delete
begin insert SEC. 595. end insert   

Section 11477 of the Welfare and Institutions Code
is amended to read:

11477.  

As a condition of eligibility for aid paid under this
chapter, each applicant or recipient shall do all of the following:

(a) (1) Do either of the following:

(A) For applications received before October 1, 2009, assign to
the county any rights to support from any other person the applicant
or recipient may have on his or her own behalf or on behalf of any
other family member for whom the applicant or recipient is
applying for or receiving aid, not exceeding the total amount of
cash assistance provided to the family under this chapter. Receipt
of public assistance under this chapter operates as an assignment
by operation of law. An assignment of support rights to the county
shall also constitute an assignment to the state. If support rights
are assigned pursuant to this subdivision, the assignee may become
an assignee of record by the local child support agency or other
public official filing with the court clerk an affidavit showing that
an assignment has been made or that there has been an assignment
by operation of law. This procedure does not limit any other means
by which the assignee may become an assignee of record.

(B) For applications received on or after October 1, 2009, assign
to the county any rights to support from any other person the
applicant or recipient may have on his or her own behalf, or on
behalf of any other family member for whom the applicant or
recipient is applying for or receiving aid. The assignment shall
apply only to support that accrues during the period of time that
the applicant is receiving assistance under this chapter, and shall
not exceed the total amount of cash assistance provided to the
family under this chapter. Receipt of public assistance under this
chapter shall operate as an assignment by operation of law. An
assignment of support rights to the county shall also constitute an
assignment to the state. If support rights are assigned pursuant to
this subdivision, the assignee may become an assignee of record
by the local child support agency or other public official filing
with the court clerk an affidavit showing that an assignment has
been made or that there has been an assignment by operation of
law. This procedure does not limit any other means by which the
assignee may become an assignee of record.

(2) Support that has been assigned pursuant to paragraph (1)
and that accrues while the family is receiving aid under this chapter
shall be permanently assigned until the entire amount of aid paid
has been reimbursed.

(3) If the federal government does not permit states to adopt the
same order of distribution for preassistance and postassistance
child support arrears that are assigned on or after October 1, 1998,
support arrears that accrue before the family receives aid under
this chapter that are assigned pursuant to this subdivision shall be
assigned as follows:

(A) Child support assigned prior to January 1, 1998, shall be
permanently assigned until aid is no longer received and the entire
amount of aid has been reimbursed.

(B) Child support assigned on or after January 1, 1998, but prior
to October 1, 2000, shall be temporarily assigned until aid under
this chapter is no longer received and the entire amount of aid paid
has been reimbursed or until October 1, 2000, whichever comes
first.

(C) On or after October 1, 2000, support assigned pursuant to
this subdivision that was not otherwise permanently assigned shall
be temporarily assigned to the county until aid is no longer
received.

(D) On or after October 1, 2000, support that was temporarily
assigned pursuant to this subdivision shall, when a payment is
received from the federal tax intercept program, be temporarily
assigned until the entire amount of aid paid has been reimbursed.

(4) If the federal government permits states to adopt the same
order of distribution for preassistance and postassistance child
support arrears, child support arrears shall be assigned, as follows:

(A) Child support assigned pursuant to this subdivision prior
to October 1, 1998, shall be assigned until aid under this chapter
is no longer received and the entire amount has been reimbursed.

(B) On or after October 1, 1998, child support assigned pursuant
to this subdivision that accrued before the family receives aid under
this chapter and that was not otherwise permanently assigned, shall
be temporarily assigned until aid under this chapter is no longer
received.

(C) On or after October 1, 1998, support that was temporarily
assigned pursuant to this subdivision shall, when a payment is
received from the federal tax intercept program, be temporarily
assigned until the entire amount of aid paid has been reimbursed.

(b) (1) Cooperate with the county welfare department and local
child support agency in establishing the paternity of a child of the
applicant or recipient born out of wedlock with respect to whom
aid is claimed, and in establishing, modifying, or enforcing a
support order with respect to a child of the individual for whom
aid is requested or obtained, unless the applicant or recipient
qualifies for a good cause exception pursuant to Section 11477.04.
The granting of aid shall not be delayed or denied if the applicant
is otherwise eligible, completes the necessary forms, and agrees
to cooperate with the local child support agency in securing support
and determining paternity, if applicable. The local child support
agency shall have staff available, in person or by telephone, at all
county welfare offices and shall conduct an interview with each
applicant to obtain information necessary to establish paternity
and establish, modify, or enforce a support order at the time of the
initial interview with the welfare office. The local child support
agency shall make the determination of cooperation. If the applicant
or recipient attests under penalty of perjury that he or she cannot
provide the information required by this subdivision, the local
child support agency shall make a finding regarding whether the
individual could reasonably be expected to provide the information
before the local child support agency determines whether the
individual is cooperating. In making the finding, the local child
support agency shall consider all of the following:

(A) The age of the child for whom support is sought.

(B) The circumstances surrounding the conception of the child.

(C) The age or mental capacity of the parent or caretaker of the
child for whom aid is being sought.

(D) The time that has elapsed since the parent or caretaker last
had contact with the alleged father or obligor.

(2) Cooperation includes all of the following:

(A) Providing the name of the alleged parent or obligor and
other information about that person if known to the applicant or
recipient, such as address, social security number, telephone
number, place of employment or school, and the names and
addresses of relatives or associates.

(B) Appearing at interviews, hearings, and legal proceedings,
provided the applicant or recipient is provided with reasonable
advance notice of the interview, hearing, or legal proceeding and
does not have good cause not to appear.

(C) If paternity is at issue, submitting to genetic tests, including
genetic testing of the child, if necessary.

(D) Providing any additional information known to, or
reasonably obtainable by, the applicant or recipient necessary to
establish paternity or to establish, modify, or enforce a child
support order.

(3) A recipient or applicant shall not be required to sign a
voluntary declaration of paternity, as set forth in Chapter 3
(commencing with Section 7570) of Part 2 of Division 12 of the
Family Code, as a condition of cooperation.

(c) (1) This section does not apply if all of the adults are
excluded from the assistance unit pursuant to Section 11251.3,
11454, or 11486.5.

(2) It is the intent of the Legislature that the regular receipt of
child support in the preceding reporting period be considered in
determining reasonably anticipated income for the following
reporting period.

(3) In accordance with Sections 11265.2 and 11265.46, if the
income of an assistance unit described in paragraph (1) includes
reasonably anticipated income derived from child support, the
amount established in Section 17504 of the Family Code and
Section 11475.3 of the Welfare and Institutions Code of any
amount of child support received each month shall not be
considered income or resources and shall not be deducted from
the amount of aid to which the assistance unit otherwise would be
eligible.

begin delete SEC. 587. end delete
begin insert SEC. 596. end insert   

Section 12104 of the Welfare and Institutions Code,
as added by Section 3 of Chapter 27 of the 3rd Extraordinary
Session of the Statutes of 2009, is repealed.

begin delete SEC. 588. end delete
begin insert SEC. 597. end insert   

Section 12104 of the Welfare and Institutions Code,
as added by Section 5 of Chapter 633 of the Statutes of 2009, is
amended to read:

12104.  

Notwithstanding any other law, upon the order of the
Director of Finance, the Director of Social Services shall defer all
supplemental payments to the federal government required pursuant
to subdivision (b) of Section 12100 in February 2010 and March
2010 and, instead, make payments for those months after April
20, 2010, but no later than May 31, 2010.

begin delete SEC. 589. end delete
begin insert SEC. 598. end insert   

Section 12300.4 of the Welfare and Institutions
Code is amended to read:

12300.4.  

(a) Notwithstanding any other law, including, but
not limited to, Chapter 10 (commencing with Section 3500) of
Division 4 of Title 1 of the Government Code and Title 23
(commencing with Section 110000) of the Government Code, a
recipient who is authorized to receive in-home supportive services
pursuant to this article, or Section 14132.95, 14132.952, or
14132.956, administered by the State Department of Social
Services, or waiver personal care services pursuant to Section
14132.97, administered by the State Department of Health Care
Services, or any combination of these services, shall direct these
authorized services, and the authorized services shall be performed
by a provider or providers within a workweek and in a manner
that complies with the requirements of this section.

(b) (1) A workweek is defined as beginning at 12:00 a.m. on
Sunday and includes the next consecutive 168 hours, terminating
at 11:59 p.m. the following Saturday.

(2) A provider of services specified in subdivision (a) shall not
work a total number of hours within a workweek that exceeds 66,
as reduced by the net percentage defined by Sections 12301.02
and 12301.03, as applicable, and in accordance with subdivision
(d). The total number of hours worked within a workweek by a
provider is defined as the sum of the following:

(A) All hours worked providing authorized services specified
in subdivision (a).

(B) Travel time as defined in subdivision (f), only if federal
financial participation is not available to compensate for that travel
time. If federal financial participation is available for travel time
as defined in subdivision (f), the travel time shall not be included
in the calculation of the total weekly hours worked within a
workweek.

(3) (A) If the authorized in-home supportive services of a
recipient cannot be provided by a single provider as a result of the
limitation specified in paragraph (2), it is the responsibility of the
recipient to employ an additional provider or providers, as needed,
to ensure his or her authorized services are provided within his or
her total weekly authorized hours of services established pursuant
to subdivision (b) of Section 12301.1.

(B) (i) It is the intent of the Legislature that this section not
result in reduced services authorized to recipients of waiver
personal care services defined in subdivision (a).

(ii) The State Department of Health Care Services shall work
with and assist recipients receiving services pursuant to the Nursing
Facility/Acute Hospital Waiver who are at or near their individual
cost cap, as that term is used in the waiver, to avoid a reduction in
the recipient’s services that may result because of increased
overtime pay for providers. As part of this effort, the department
shall consider allowing the recipient to exceed the individual cost
cap, if appropriate. The department shall provide timely
information to waiver recipients as to the steps that will be taken
to implement this clause.

(4) (A) A provider shall inform each of his or her recipients of
the number of hours that the provider is available to work for that
recipient, in accordance with this section.

(B) A recipient, his or her authorized representative, or any
other entity, including any person or entity providing services
pursuant to Section 14186.35, shall not authorize any provider to
work hours that exceed the applicable limitation or limitations of
this section.

(C) A recipient may authorize a provider to work hours in excess
of the recipient’s weekly authorized hours established pursuant to
Section 12301.1 without notification of the county welfare
department, in accordance with both of the following:

(i) The authorization does not result in more than 40 hours of
authorized services per week being provided.

(ii) The authorization does not exceed the recipient’s authorized
hours of monthly services pursuant to paragraph (1) of subdivision
(b) of Section 12301.1.

(5) For providers of in-home supportive services, the State
Department of Social Services or a county may terminate the
provider from providing services under the IHSS program if a
provider continues to violate the limitations of this section on
multiple occasions.

(c) Notwithstanding any other law, only federal law and
regulations regarding overtime compensation apply to providers
of services defined in subdivision (a).

(d) A provider of services defined in subdivision (a) is subject
to all of the following, as applicable to his or her situation:

(1) (A) A provider who works for one individual recipient of
those services shall not work a total number of hours within a
workweek that exceeds 66 hours, as reduced by the net percentage
defined by Sections 12301.02 and 12301.03, as applicable. In no
circumstance shall the provision of these services by that provider
to the individual recipient exceed the total weekly hours of the
services authorized to that recipient, except as additionally
authorized pursuant to subparagraph (C) of paragraph (4) of
subdivision (b). If multiple providers serve the same recipient, it
shall continue to be the responsibility of that recipient or his or
her authorized representative to schedule the work of his or her
providers to ensure the authorized services of the recipient are
provided in accordance with this section.

(B) When a recipient’s weekly authorized hours are adjusted
pursuant to subparagraph (C) of paragraph (1) of subdivision (b)
of Section 12301.1 and exceed 66 hours, as reduced by the net
percentage defined by Sections 12301.02 and 12301.03, as
applicable, and at the time of adjustment the recipient currently
receives all authorized hours of service from one provider, that
provider shall be deemed authorized to work the recipient’s
county-approved adjusted hours for that week, but only if the
additional hours of work, based on the adjustment, do not exceed
the total number of hours worked that are compensable at an
overtime pay rate that the provider would have been authorized to
work in that month if the weekly hours had not been adjusted.

(2) A provider of in-home supportive services described in
subdivision (a) who serves multiple recipients is not authorized
to, and shall not, work more than 66 total hours in a workweek,
as reduced by the net percentage defined by Sections 12301.02
and 12301.03, as applicable, regardless of the number of recipients
for whom the provider provides services authorized by subdivision
(a). Providers are subject to the limits of each recipient’s total
authorized weekly hours of in-home supportive services described
in subdivision (a), except as additionally authorized pursuant to
subparagraph (C) of paragraph (4) of subdivision (b).

(e) Recipients and providers shall be informed of the limitations
and requirements contained in this section, through notices at
intervals and on forms as determined by the State Department of
Social Services or the State Department of Health Care Services,
as applicable, following consultation with stakeholders.

(f) (1) A provider of services described in subdivision (a) shall
not engage in travel time in excess of seven hours per week. For
purposes of this subdivision, “travel time” means time spent
traveling directly from a location where authorized services
specified in subdivision (a) are provided to one recipient to another
location where authorized services are to be provided to another
recipient. A provider shall coordinate hours of work with his or
her recipients to comply with this section.

(2) The hourly wage to compensate a provider for travel time
described in this subdivision when the travel is between two
counties shall be the hourly wage of the destination county.

(3) Travel time, and compensation for that travel time, between
a recipient of authorized in-home supportive services specified in
subdivision (a) and a recipient of authorized waiver personal care
services specified in subdivision (a) shall be attributed to the
program authorizing services for the recipient to whom the provider
is traveling.

(4) Hours spent by a provider while engaged in travel time shall
not be deducted from the authorized hours of service of any
recipient of services specified in subdivision (a).

(5) The State Department of Social Services and the State
Department of Health Care Services shall issue guidance and
processes for travel time between recipients that will assist the
provider and recipient to comply with this subdivision. Each county
shall provide technical assistance to providers and recipients, as
necessary, to implement this subdivision.

(g) A provider of authorized in-home supportive services
specified in subdivision (a) shall timely submit, deliver, or mail,
verified by postmark or request for delivery, a signed payroll
timesheet within two weeks after the end of each bimonthly payroll
period. Notwithstanding any other law, a provider who submits
an untimely payroll timesheet for providing authorized in-home
supportive services specified in subdivision (a) shall be paid by
the state within 30 days of the receipt of the signed payroll
timesheet.

(h) This section does not apply to a contract entered into
pursuant to Section 12302 or 12302.6 for authorized in-home
supportive services. Contract rates negotiated pursuant to Section
12302 or 12302.6 shall be based on costs consistent with a 40-hour
workweek.

(i) The state and counties are immune from any liability resulting
from implementation of this section.

(j) Any action authorized under this section that is implemented
in a program authorized pursuant to Section 14132.95, 14132.956,
or 14132.97 shall be compliant with federal Medicaid requirements,
as determined by the State Department of Health Care Services.

(k) Notwithstanding the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code), the State Department of Social Services and the State
Department of Health Care Services may implement, interpret, or
make specific this section by means of all-county letters or similar
instructions, without taking any regulatory action.

(l) (1) This section shall become operative only when the
regulatory amendments made by RIN 1235-AA05 to Part 552 of
Title 29 of the Code of Federal Regulations are deemed effective,
either on the date specified in RIN 1235-AA05 or at a later date
specified by the United States Department of Labor, whichever is
later.

(2) If the regulatory amendments described in paragraph (1)
become only partially effective by the date specified in paragraph
(1), this section shall become operative only for those persons for
whom federal financial participation is available as of that date.

begin delete SEC. 590. end delete
begin insert SEC. 599. end insert   

Section 12300.41 of the Welfare and Institutions
Code is amended to read:

12300.41.  

(a) For three months following the effective date
specified in paragraph (1) of subdivision (l) of Section 12300.4,
timesheets submitted by providers may be paid in excess of the
limitations specified in Section 12300.4, so long as the number of
hours worked by the provider within a month do not exceed the
authorized hours of the recipient or recipients served by that
provider.

(b) The State Department of Social Services, in consultation
with stakeholders, shall oversee a study of the implementation of
Section 12300.4, Section 12301.1, and this section. This study
shall cover the 24-month period subsequent to the three-month
period specified in subdivision (a). Information collected for the
study shall periodically be made available to stakeholders,
including, but not limited to, representatives of recipients and
providers, counties, and the legislative staff. Upon completion of
the study, a report shall be submitted to the Legislature.

(c) Using the study described in (b), it is the intent of the
Legislature to evaluate implementation of the federal regulations
described in paragraph (1) of subdivision (l) of Section 12300.4
and make any adjustments determined appropriate or necessary
through subsequent legislation.

begin delete SEC. 591. end delete
begin insert SEC. 600. end insert   

Section 12301.1 of the Welfare and Institutions
Code is amended to read:

12301.1.  

(a) The department shall adopt regulations
establishing a uniform range of services available to all eligible
recipients based upon individual needs. The availability of services
under these regulations is subject to the provisions of Section
12301 and county plans developed pursuant to Section 12302.

(b) (1) The county welfare department shall assess each
recipient’s continuing monthly need for in-home supportive
services at varying intervals as necessary, but at least once every
12 months. The results of this assessment of monthly need for
hours of in-home supportive services shall be divided by 4.33, to
establish a recipient’s weekly authorized number of hours of
in-home supportive services, subject to any of the following, as
applicable:

(A) Within the limit of the assessed monthly need for hours of
in-home supportive services, a county welfare department may
adjust the authorized weekly hours of a recipient for any particular
week for known recurring or periodic needs of the recipient.

(B) Within the limit of the assessed monthly need for hours of
in-home supportive services, a county welfare department may
temporarily adjust the authorized weekly hours of a recipient at
the request of the recipient, to accommodate unexpected
extraordinary circumstances.

(C) In addition to the flexibility provided to a recipient pursuant
to subparagraph (C) of paragraph (4) of subdivision (b) of Section
12300.4, a recipient may request the county welfare department
to adjust his or her weekly authorized hours of services to exceed
40 hours of weekly authorized hours of services per week, within
his or her total monthly authorized hours of services. A request
for adjustment may be made retroactive to the hours actually
worked. The county welfare department shall not unreasonably
withhold approval of a recipient request made pursuant to this
subparagraph.

(2) For purposes of subparagraph (C) of paragraph (1), and prior
to its implementation, the State Department of Social Services
shall develop a process for requests made pursuant to that
subparagraph. The process shall include all of the following:

(A) The procedure, standards, and timeline for making a request
to adjust the authorized weekly hours of service for a recipient
described in this section.

(B) The language to be used for notices about the process.

(C) Provisions for adjustments to authorization, and for
authorization after services have been provided, when the criteria
for approval have been met.

(D) A requirement that the opportunity for a revision to the
limitations of this section shall be discussed at each annual
reassessment, and also may be authorized by the county welfare
department outside of the reassessment process.

(3) Recipients shall be timely informed of their total monthly
and weekly authorized hours.

(4) The weekly authorization of services defined in this section
shall be used solely for the purposes of ensuring compliance with
the federal Fair Labor Standards Act and its implementing
regulations.

(5) Notwithstanding the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code), the department may implement, interpret, or make specific
this subdivision by means of all-county letters, or similar
instructions, without taking any regulatory action.

(c) (1) Notwithstanding subdivision (b), at the county’s option,
assessments may be extended, on a case-by-case basis, for up to
six months beyond the regular 12-month period, provided that the
county documents that all of the following conditions exist:

(A) The recipient has had at least one reassessment since the
initial program intake assessment.

(B) The recipient’s living arrangement has not changed since
the last annual reassessment and the recipient lives with others, or
has regular meaningful contact with persons other than his or her
service provider.

(C) The recipient or, if the recipient is a minor, his or her parent
or legal guardian, or if incompetent, his or her conservator, is able
to satisfactorily direct the recipient’s care.

(D) There has not been a known change in the recipient’s
supportive service needs within the previous 24 months.

(E) A report has not been made to, and there has been no
involvement of, an adult protective services agency or agencies
since the county last assessed the recipient.

(F) The recipient has not had a change in provider or providers
for at least six months.

(G) The recipient has not reported a change in his or her need
for supportive services that requires a reassessment.

(H) The recipient has not been hospitalized within the last three
months.

(2) If some, but not all, of the conditions specified in paragraph
(1) are met, the county may consider other factors in determining
whether an extended assessment interval is appropriate, including,
but not limited to, involvement in the recipient’s care of a social
worker, case manager, or other similar representative from another
human services agency, such as a regional center or county mental
health program, or communications, or other instructions from a
physician or other licensed health care professional that the
recipient’s medical condition is unlikely to change.

(3) A county may reassess a recipient’s need for services at a
time interval of less than 12 months from a recipient’s initial intake
or last assessment if the county social worker has information
indicating that the recipient’s need for services is expected to
decrease in less than 12 months.

(d) A county shall assess a recipient’s need for supportive
services any time that the recipient notifies the county of a need
to adjust the supportive services hours authorized, or if there are
other indications or expectations of a change in circumstances
affecting the recipient’s need for supportive services.

(e) (1) Notwithstanding the rulemaking provisions of the
Administrative Procedure Act, Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code, until emergency regulations are filed with the Secretary of
State, the department may implement this section through
all-county letters or similar instructions from the director. The
department shall adopt emergency regulations implementing this
section no later than September 30, 2005, unless notification of a
delay is made to the Chair of the Joint Legislative Budget
Committee prior to that date. The notification shall include the
reason for the delay, the current status of the emergency
regulations, a date by which the emergency regulations shall be
adopted, and a statement of need to continue use of all-county
letters or similar instructions. The adoption of emergency
regulations shall not be delayed, or the use of all-county letters or
similar instructions be extended, beyond June 30, 2006.

(2) The adoption of regulations implementing this section shall
be deemed an emergency and necessary for the immediate
preservation of the public peace, health, safety, or general welfare.
The emergency regulations authorized by this section are exempt
from review by the Office of Administrative Law. The emergency
regulations authorized by this section shall be submitted to the
Office of Administrative Law for filing with the Secretary of State
and shall remain in effect for no more than 180 days by which
time final regulations shall be adopted. The department shall seek
input from the entities listed in Section 12305.72 when developing
all-county letters or similar instructions and the regulations.

begin delete SEC. 592. end delete
begin insert SEC. 601. end insert   

Section 14005.75 of the Welfare and Institutions
Code, as added by Section 1 of Chapter 1144 of the Statutes of
1985, is amended and renumbered to read:

14005.73.  

A person who is otherwise eligible for Medi-Cal
benefits under either Section 14005.4 or 14005.7, except for income
and resource eligibility, and who is receiving Medi-Cal services
for the treatment of multiple sclerosis, shall continue to be eligible
to receive benefits only for these services under Medi-Cal, provided
that all other conditions of eligibility for the Medi-Cal program
are met. These restricted benefits shall continue until such time as
the person is eligible for, and receives, third party coverage for
these treatments. However, restricted benefits under this section
shall not continue for more than two years.

begin delete SEC. 593. end delete
begin insert SEC. 602. end insert   

Section 14005.271 of the Welfare and Institutions
Code is amended to read:

14005.271.  

(a) The Healthy Families Advisory Board
established by former Section 12693.90 of the Insurance Code is
hereby renamed the Medi-Cal Children’s Health Advisory Panel.

(b) The Medi-Cal Children’s Health Advisory Panel shall be
an independent, statewide advisory board that shall advise the State
Department of Health Care Services on matters relevant to all
children enrolled in Medi-Cal and their families, including, but
not limited to, emerging trends in the care of children, quality
measurements, communications between the State Department of
Health Care Services and Medi-Cal families, provider network
issues, and Medi-Cal enrollment issues.

(c) The membership of the advisory panel shall be composed
of the following 15 members:

(1) One member who is a licensed, practicing dentist.

(2) One physician and surgeon who is board certified in the area
of family practice medicine.

(3) One physician and surgeon who is board certified in
pediatrics.

(4) One representative from a licensed nonprofit primary care
clinic.

(5) One representative from the mental health provider
community.

(6) One representative of the substance abuse provider
community.

(7) One representative of the county public health provider
community.

(8) One representative from a licensed hospital that is on the
disproportionate share list maintained by the State Department of
Health Care Services.

(9) A current or former foster youth; an attorney, social worker,
probation officer, or court appointed special advocate who currently
represents one or more foster youth; a foster care service provider;
or a child welfare advocate.

(10) A parent of a Medi-Cal enrollee who has received treatment
services under the California Children’s Services Program within
the past six months.

(11) A Medi-Cal enrollee who has received services under the
Access for Infants and Mothers Program within the past six months.

(12) A parent or legal guardian of a Medi-Cal enrollee under
21 years of age who has received mental health services under the
Early and Periodic Screening, Diagnostic, and Treatment Program
(EPSDT) within the past six months.

(13) One representative from the health plan community.

(14) One representative from the business community.

(15) One representative from the education community.

(d) The advisory panel shall elect, from among its members, its
chair. In order to coordinate the activities of the advisory panel
with other advisory bodies whose scope includes children enrolled
in Medi-Cal, the chair shall keep apprised of relevant Medi-Cal
stakeholder meetings by communicating with State Department
of Health Care Services staff assisting the advisory panel.

(e) The advisory panel members shall be appointed by the State
Department of Health Care Services, or in the case of vacancies
of three months or greater, by the chair.

(f) The advisory panel’s powers and duties include, but are not
limited to, both of the following:

(1) To advise the Director of Health Care Services on all
policies, regulations, and operations of the Medi-Cal program
related to providing health care services to children.

(2) To meet at least quarterly, unless deemed unnecessary by
the chair.

(g) The State Department of Health Care Services’ powers and
duties shall include, but not be limited to, all of the following:

(1) To provide general support and staff assistance to the
advisory panel.

(2) To convene and attend meetings of the advisory panel at
least quarterly, unless deemed unnecessary by the chair, at locations
that are easily accessible to the public and advisory panel members,
are of sufficient duration for presentation, discussion, and public
comment on each agenda item, and are in accordance with the
Bagley-Keene Open Meeting Act (Article 9 (commencing with
Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of
the Government Code).

(3) To reimburse the members of the advisory panel for all
necessary travel expenses associated with the activities of the
advisory panel, and to provide a stipend of one hundred dollars
($100) per meeting attended to each panel member who is a
Medi-Cal enrollee or a parent of a Medi-Cal enrollee.

(4) To maintain an Internet Web page on the department’s
Internet Web site dedicated to the advisory panel that shall include,
but not be limited to, all of the following:

(A) The purpose and scope of the advisory panel.

(B) The current membership of the advisory panel.

(C) A list of past and future meetings.

(D) Agendas and other materials made available for past and
future meetings.

(E) Recommendations submitted to the department by the
advisory panel.

(F) The department’s responses to recommendations submitted
by the advisory panel.

(G) Contact information for department staff assisting the
advisory panel.

(5) To inform advisory panel members when new information
is posted to the Internet Web page dedicated to the advisory panel.

(6) Notwithstanding Section 10231.5 of the Government Code,
to submit on or before January 1, 2018, a report to the Legislature
on the advisory panel’s accomplishments, effectiveness, efficiency,
and any recommendations for statutory changes needed to improve
the ability of the advisory panel to fulfill its purpose. The report
shall be submitted in compliance with Section 9795 of the
Government Code.

(h) The Legislature does not intend the addition of this section
to result in a new panel, but rather a continuation of the prior panel
established by former Section 12693.90 of the Insurance Code.
New panel members shall not be appointed until a vacancy occurs.

begin delete SEC. 594. end delete
begin insert SEC. 603. end insert   

Section 14011.2 of the Welfare and Institutions
Code, as added by Section 34 of Chapter 171 of the Statutes of
2001, is amended and renumbered to read:

14011.25.  

To the extent federal financial participation is
available, the department shall take all steps necessary to comply
with the terms and conditions of the State Child Health Insurance
Program waiver described in Section 12693.755 of the Insurance
Code extending eligibility under the Healthy Families Program to
parents and certain other adults. The department shall seek any
state plan amendments or other waivers under Title XIX of the
Social Security Act (42 U.S.C. Sec. 1396 et seq.) necessary to
implement this section.

begin delete SEC. 595. end delete
begin insert SEC. 604. end insert   

Section 14011.10 of the Welfare and Institutions
Code is amended to read:

14011.10.  

(a) Except as provided in Sections 14053.7 and
14053.8, benefits provided under this chapter to an individual who
is an inmate of a public institution shall be suspended in accordance
with Section 1396d(a)(29)(A) of Title 42 of the United States Code
as provided in subdivision (c).

(b) County welfare departments shall notify the department
within 10 days of receiving information that an individual on
Medi-Cal in the county is or will be an inmate of a public
institution.

(c) If an individual is a Medi-Cal beneficiary on the date he or
she becomes an inmate of a public institution, his or her benefits
under this chapter and under Chapter 8 (commencing with Section
14200) shall be suspended effective the date he or she becomes
an inmate of a public institution. The suspension shall end on the
date he or she is no longer an inmate of a public institution or one
year from the date he or she becomes an inmate of a public
institution, whichever is sooner.

(d) This section does not create a state-funded benefit or
program. Health care services under this chapter and Chapter 8
(commencing with Section 14200) shall not be available to inmates
of public institutions whose Medi-Cal benefits have been suspended
under this section.

(e) This section shall be implemented only if and to the extent
allowed by federal law. This section shall be implemented only to
the extent that any necessary federal approval of state plan
amendments or other federal approvals are obtained.

(f) If any part of this section is in conflict with or does not
comply with federal law, this entire section shall be inoperative.

(g) This section shall be implemented on January 1, 2010, or
the date when all necessary federal approvals are obtained,
whichever is later.

(h) By January 1, 2010, or the date when all necessary federal
approvals are obtained, whichever is later, the department, in
consultation with the Chief Probation Officers of California and
the County Welfare Directors Association, shall establish the
protocols and procedures necessary to implement this section,
including any needed changes to the protocols and procedures
previously established to implement Section 14029.5.

(i) The department shall determine whether federal financial
participation will be jeopardized by implementing this section and
shall implement this section only if and to the extent that federal
financial participation is not jeopardized.

(j) Notwithstanding Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code,
the department shall implement this section by means of all-county
letters or similar instructions without taking regulatory action.
Thereafter, the department shall adopt regulations in accordance
with the requirements of Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code.

begin delete SEC. 596. end delete
begin insert SEC. 605. end insert   

Section 14021.6 of the Welfare and Institutions
Code is amended to read:

14021.6.  

(a) For the fiscal years prior to fiscal year 2004-05,
and subject to the requirements of federal law, the maximum
allowable rates for the Medi-Cal Drug Treatment Program shall
be determined by computing the median rate from available cost
data by modality from the fiscal year that is two years prior to the
year for which the rate is being established.

(b) (1) For the fiscal year 2007-08, and subsequent fiscal years,
and subject to the requirements of federal law, the maximum
allowable rates for the Medi-Cal Drug Treatment Program shall
be determined by computing the median rate from the most recently
completed cost reports, by specific service codes that are consistent
with the federal Health Insurance Portability and Accountability
Act of 1996 (42 U.S.C. Sec. 300gg).

(2) For the fiscal years 2005-06 and 2006-07, if the State
Department of Health Care Services determines that reasonably
reliable and complete cost report data are available, the
methodology specified in this subdivision shall be applied to either
or both of those years. If reasonably reliable and complete cost
report data are not available, the State Department of Health Care
Services shall establish rates for either or both of those years based
upon the usual, customary, and reasonable charge for the services
to be provided, as the department may determine in its discretion.
This subdivision is not intended to modify subdivision (h) of
Section 14124.24, which requires certain providers to submit
performance reports.

(c) Notwithstanding subdivision (a), for the 1996-97 fiscal year,
the rates for nonperinatal outpatient methadone maintenance
services shall be set at the rate established for the 1995-96 fiscal
year.

(d) Notwithstanding subdivision (a), the maximum allowable
rate for group outpatient drug free services shall be set on a per
person basis. A group shall consist of a minimum of 2 and a
maximum of 12 individuals, at least one of which shall be a
Medi-Cal eligible beneficiary. For groups consisting of two
individuals, if one of the individuals is ineligible for Medi-Cal,
the individual who is ineligible for Medi-Cal shall be receiving
outpatient drug free services for a substance abuse disorder
diagnosed by a physician.

(e) The department shall develop individual and group rates for
extensive counseling for outpatient drug free treatment, based on
a 50-minute individual or a 90-minute group hour, not to exceed
the total rate established for subdivision (d).

(f) The department may adopt regulations as necessary to
implement subdivisions (a), (b), and (c), or to implement cost
containment procedures. These regulations may be adopted as
emergency regulations in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code. The adoption of these emergency
regulations shall be deemed an emergency necessary for the
immediate preservation of the public peace, health and safety, or
general welfare.

begin delete SEC. 597. end delete
begin insert SEC. 606. end insert   

Section 14022 of the Welfare and Institutions Code
is amended to read:

14022.  

(a) This section shall be known as the “Medi-Cal
Conflict of Interest Law.”

It is the intent of the Legislature that provisions be made for
disclosure of the interests of providers of service in the services,
facilities and organizations to which they refer Medi-Cal recipients
so that it is possible to determine the extent to which conflicts of
interests may exist because of such referrals.

(b) As used in this section, the term “referral” means (1) the
referral of a recipient by a provider of service to any other provider
of service; (2) the placement of a recipient by a provider of service
in any facility; or (3) the obtaining, requesting, ordering or
prescribing of services or supplies by a provider of service on
behalf of a recipient from any other provider of service.

As used in this section, the term “immediate family” includes
the spouse and children of the provider of service, the parents of
the provider of service and his spouse, and the spouses of the
children of the provider of service.

(c) A payment under this chapter shall not be made to a provider
of service or to any facility or organization in which he or his
immediate family has a significant beneficial interest, for services
rendered in connection with any referral of a recipient, unless there
is on file with the director and the Advisory Health Council a
statement of the nature and extent of such interest.

(d) This section shall become operative only upon the date of
which Section 1902(a)(4)(C) of the federal Social Security Act,
as added by Public Law 95-559 is repealed, held invalid by a court
of appeal, or otherwise made inoperative.

begin delete SEC. 598. end delete
begin insert SEC. 607. end insert   

Section 14029.91 of the Welfare and Institutions
Code is amended to read:

14029.91.  

(a) The department shall require all managed care
plans contracting with the department to provide Medi-Cal services
to provide language assistance services to
limited-English-proficient (LEP) Medi-Cal beneficiaries who are
mandatorily enrolled in managed care in the following manner:

(1) Oral interpretation services shall be provided in any language
on a 24-hour basis at key points of contact.

(2) Translation services shall be provided to the language groups
identified by the department.

(b) The department shall determine when an LEP population
meets the requirement for translation services using one of the
following numeric thresholds:

(1) A population group of at least 3,000 or 5 percent of the
beneficiary population, whichever is fewer, mandatory managed
care Medi-Cal beneficiaries, residing in the service area, who
indicate their primary language as other than English.

(2) A population group of mandatory managed care Medi-Cal
beneficiaries, residing in the service area, who indicate their
primary language as other than English, and that meet a
concentration standard of 1,000 beneficiaries in a single ZIP Code
or 1,500 beneficiaries in two contiguous ZIP Codes.

(c) The department shall make this determination if any of the
following occurs:

(1) A nonmanaged care county becomes a new managed care
county.

(2) A new population group becomes a mandatory Medi-Cal
managed care beneficiary population.

(3) A period of three years has passed since the last
determination.

(d) The department shall instruct managed care plans, by means
of incorporating the requirement into plan contracts, all-plan letters,
or similar instructions, of the language groups that meet the
numeric thresholds.

(e) For purposes of this section, a person is
“limited-English-proficient” if he or she speaks English less than
very well.

(f) This section does not apply to mental health plans contracting
with the department pursuant to Section 14712.

begin delete SEC. 599. end delete
begin insert SEC. 608. end insert   

The heading of Article 2.93 (commencing with
Section 14091.3) of Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code is repealed.

begin delete SEC. 600. end delete
begin insert SEC. 609. end insert   

Section 14103 of the Welfare and Institutions Code,
as added by Section 25 of Chapter 3 of the 1st Extraordinary
Session of the Statutes of 2013, is repealed.

begin delete SEC. 601. end delete
begin insert SEC. 610. end insert   

Section 14105.18 of the Welfare and Institutions
Code is amended to read:

14105.18.  

(a) Notwithstanding any other law, provider rates
of payment for services rendered in all of the following programs
shall be identical to the rates of payment for the same service
performed by the same provider type pursuant to the Medi-Cal
program:

(1) The California Children’s Services Program established
pursuant to Article 5 (commencing with Section 123800) of
Chapter 3 of Part 2 of Division 106 of the Health and Safety Code.

(2) The Genetically Handicapped Persons Program established
pursuant to Article 1 (commencing with Section 125125) of
Chapter 2 of Part 5 of Division 106 of the Health and Safety Code.

(3) The Breast and Cervical Cancer Early Detection Program
established pursuant to Article 1.3 (commencing with Section
104150) of Chapter 2 of Part 1 of Division 103 of the Health and
Safety Code and the breast cancer programs specified in Section
30461.6 of the Revenue and Taxation Code.

(4) The State-Only Family Planning Program established
pursuant to Division 24 (commencing with Section 24000).

(5) The Family Planning, Access, Care, and Treatment (Family
PACT) Program established pursuant to subdivision (aa) of Section
14132.

(6) The Healthy Families Program established pursuant to Part
6.2 (commencing with Section 12693) of Division 2 of the
Insurance Code if the health care services are provided by a
Medi-Cal provider pursuant to subdivision (b) of Section 12693.26
of the Insurance Code.

(7) The Access for Infants and Mothers Program established
pursuant to Part 6.3 (commencing with Section 12695) of Division
2 of the Insurance Code if the health care services are provided by
a Medi-Cal provider.

(b) The director may identify in regulations other programs not
listed in subdivision (a) in which providers shall be paid rates of
payment that are identical to the rates of payments in the Medi-Cal
program pursuant to subdivision (a).

(c) Notwithstanding subdivision (a), services provided under
any of the programs described in subdivisions (a) and (b) may be
reimbursed at rates greater than the Medi-Cal rate that would
otherwise be applicable if those rates are adopted by the director
in regulations.

(d) Payment increases made pursuant to Section 14105.196 shall
not apply to provider rates of payment described in this section
for services provided to individuals not eligible for Medi-Cal or
Family PACT.

(e) This section shall become operative on January 1, 2011.

begin delete SEC. 602. end delete
begin insert SEC. 611. end insert   

Section 14105.336 of the Welfare and Institutions
Code is repealed.

begin delete SEC. 603. end delete
begin insert SEC. 612. end insert   

Section 14105.337 of the Welfare and Institutions
Code is repealed.

begin delete SEC. 604. end delete
begin insert SEC. 613. end insert   

Section 14124.24 of the Welfare and Institutions
Code is amended to read:

14124.24.  

(a) For purposes of this section, “Drug Medi-Cal
reimbursable services” means the substance use disorder services
described in the California State Medicaid Plan and includes, but
is not limited to, all of the following services, administered by the
department, and to the extent consistent with state and federal law:

(1) Narcotic treatment program services, as set forth in Section
14021.51.

(2) Day care rehabilitative services.

(3) Perinatal residential services for pregnant women and women
in the postpartum period.

(4) Naltrexone services.

(5) Outpatient drug-free services.

(6) Other services upon approval of a federal Medicaid state
plan amendment or waiver authorizing federal financial
participation.

(b) (1) While seeking federal approval for any federal Medicaid
state plan amendment or waiver associated with Drug Medi-Cal
services, the department shall consult with the counties and
stakeholders in the development of the state plan amendment or
waiver.

(2) Upon federal approval of a federal Medicaid state plan
amendment authorizing federal financial participation in the
following services, and subject to appropriation of funds, “Drug
Medi-Cal reimbursable services” shall also include the following
services, administered by the department, and to the extent
consistent with state and federal law:

(A) Notwithstanding subdivision (a) of Section 14132.90, day
care habilitative services, which, for purposes of this paragraph,
are outpatient counseling and rehabilitation services provided to
persons with substance use disorder diagnoses.

(B) Case management services, including supportive services
to assist persons with substance use disorder diagnoses in gaining
access to medical, social, educational, and other needed services.

(C) Aftercare services.

(c) (1) The nonfederal share for Drug Medi-Cal services shall
be funded through a county’s Behavioral Health Subaccount of
the Support Services Account of the Local Revenue Fund 2011,
and any other available county funds eligible under federal law
for federal Medicaid reimbursement. The funds contained in each
county’s Behavioral Health Subaccount of the Support Services
Account of the Local Revenue Fund 2011 shall be considered state
funds distributed by the principal state agency for the purposes of
receipt of the federal block grant funds for prevention and treatment
of substance abuse found at Subchapter XVII of Chapter 6A of
Title 42 of the United States Code. Pursuant to applicable federal
Medicaid law and regulations including Section 433.51 of Title
42 of the Code of Federal Regulations, counties may claim
allowable Medicaid federal financial participation for Drug
Medi-Cal services based on the counties certifying their actual
total funds expenditures for eligible Drug Medi-Cal services to
the department.

(2) (A) If the director determines that a county’s provision of
Drug Medi-Cal treatment services are disallowed by the federal
government or by state or federal audit or review, the impacted
county shall be responsible for repayment of all disallowed federal
funds. In addition to any other recovery methods available,
including, but not limited to, offset of Medicaid federal financial
participation funds owed to the impacted county, the director may
offset these amounts in accordance with Section 12419.5 of the
Government Code.

(B) A county subject to an action by the director pursuant to
subparagraph (A) may challenge that action by requesting a hearing
in writing no later than 30 days from receipt of notice of the
department’s action. The proceeding shall be conducted in
accordance with Chapter 5 (commencing with Section 11500) of
Part 1 of Division 3 of Title 2 of the Government Code, and the
director has all the powers granted therein. Upon a county’s timely
request for hearing, the county’s obligation to make payment as
determined by the director shall be stayed pending the county’s
exhaustion of administrative remedies provided herein but no
longer than will ensure the department’s compliance with Section
1903(d)(2)(C) of the federal Social Security Act (42 U.S.C. Sec.
1396b).

(d) Drug Medi-Cal services are only reimbursable to Drug
Medi-Cal providers with an approved Drug Medi-Cal contract.

(e) Counties shall negotiate contracts only with providers
certified to provide Drug Medi-Cal services.

(f) The department shall develop methods to ensure timely
payment of Drug Medi-Cal claims.

(g) (1) A county or a contracted provider, except for a provider
to whom subdivision (h) applies, shall submit accurate and
complete cost reports for the previous fiscal year by November 1,
following the end of the fiscal year. The department may settle
Drug Medi-Cal reimbursable services, based on the cost report as
the final amendment to the approved county Drug Medi-Cal
contract.

(2) Amounts paid for services provided to Drug Medi-Cal
beneficiaries shall be audited by the department in the manner and
form described in Section 14170.

(3) Administrative appeals to review grievances or complaints
arising from the findings of an audit or examination made pursuant
to this section shall be subject to Section 14171.

(h) Certified narcotic treatment program providers that are
exclusively billing the state or the county for services rendered to
persons subject to Section 1210.1 or 3063.1 of the Penal Code or
Section 14021.52 of this code shall submit accurate and complete
performance reports for the previous state fiscal year by November
1 following the end of that fiscal year. A provider to which this
subdivision applies shall estimate its budgets using the uniform
state daily reimbursement rate. The format and content of the
performance reports shall be mutually agreed to by the department,
the County Alcohol and Drug Program Administrators’ Association
of California, and representatives of the treatment providers.

(i) Contracts entered into pursuant to this section shall be exempt
from the requirements of Chapter 1 (commencing with Section
10100) and Chapter 2 (commencing with Section 10290) of Part
2 of Division 2 of the Public Contract Code.

(j) Annually, the department shall publish procedures for
contracting for Drug Medi-Cal services with certified providers
and for claiming payments, including procedures and specifications
for electronic data submission for services rendered.

(k) If the department commences a preliminary criminal
investigation of a certified provider, the department shall promptly
notify each county that currently contracts with the provider for
Drug Medi-Cal services that a preliminary criminal investigation
has commenced. If the department concludes a preliminary criminal
investigation of a certified provider, the department shall promptly
notify each county that currently contracts with the provider for
Drug Medi-Cal services that a preliminary criminal investigation
has concluded.

(1) Notice of the commencement and conclusion of a
preliminary criminal investigation pursuant to this section shall
be made to the county behavioral health director or his or her
equivalent.

(2) Communication between the department and a county
specific to the commencement or conclusion of a preliminary
criminal investigation pursuant to this section shall be deemed
confidential and shall not be subject to any disclosure request,
including, but not limited to, the Information Practices Act of 1977
(Chapter 1 (commencing with Section 1798) of Title 1.8 of Part
4 of Division 3 of the Civil Code), the California Public Records
Act (Chapter 3.5 (commencing with Section 6250) of Division 7
of Title 1 of the Government Code), requests pursuant to a
subpoena, or for any other public purpose, including, but not
limited to, court testimony.

(3) Information shared by the department with a county
regarding a preliminary criminal investigation shall be maintained
in a manner to ensure protection of the confidentiality of the
criminal investigation.

(4) The information provided to a county pursuant to this section
shall only include the provider name, national provider identifier
(NPI) number, address, and the notice that an investigation has
commenced or concluded.

(5) A county shall not take any adverse action against a provider
based solely upon the preliminary criminal investigation
information disclosed to the county pursuant to this section.

(6) In the event of a preliminary criminal investigation of a
county owned or operated program, the department has the option
to, but is not required to, notify the county pursuant to this section
when the department commences or concludes a preliminary
criminal investigation.

(7) This section does not limit the voluntary or otherwise legally
mandated or contractually mandated sharing of information
between the department and a county of information regarding
audits and investigations of Drug Medi-Cal providers.

(8) “Commenced” means the time at which a complaint or
allegation is assigned to an investigator for a field investigation.

(9) “Preliminary criminal investigation” means an investigation
to gather information to determine if criminal law or statutes have
been violated.

begin delete SEC. 605. end delete
begin insert SEC. 614. end insert   

Section 14132.90 of the Welfare and Institutions
Code is repealed.

begin delete SEC. 606. end delete
begin insert SEC. 615. end insert   

Section 14132.99 of the Welfare and Institutions
Code, as amended by Section 237 of Chapter 664 of the Statutes
of 2002, is amended and renumbered to read:

14132.985.  

For services provided pursuant to Chapter 7
(commencing with Section 14000) of Part 3 of Division 9, Section
14499.5, or Chapter 1 (commencing with Section 101525) to
Chapter 4 (commencing with Section 101825), inclusive, of Part
4 of Division 101 of the Health and Safety Code, the cost for
services defined in Section 1370.6 of the Health and Safety begin delete Code, end delete
begin insert Code end insert and Sections 14087.11 and 14132.98 begin insert of this code end insert shall be
provided by state-only funds if federal financial participation is
not available.

begin delete SEC. 607. end delete
begin insert SEC. 616. end insert   

Section 14132.277 of the Welfare and Institutions
Code is amended to read:

14132.277.  

(a) For purposes of this section, the following
definitions apply:

(1) “Alternate health care service plan” means a prepaid health
plan that is a nonprofit health care service plan with at least 3.5
million enrollees statewide, that owns or operates its own
pharmacies, and that provides medical services to enrollees in
specific geographic regions through an exclusive contract with a
single medical group in each specific geographic region in which
it operates to provide services to enrollees.

(2) “Cal MediConnect plan” means a health plan or other
qualified entity jointly selected by the state and CMS for
participation in the demonstration project.

(3) “CMS” means the federal Centers for Medicare and
Medicaid Services.

(4) “Coordinated Care Initiative county” means the Counties
of Alameda, Los Angeles, Orange, Riverside, San Bernardino, San
Diego, San Mateo, and Santa Clara, and any other county identified
in Appendix 3 of the Memorandum of Understanding Between
the Centers for Medicare and Medicaid Services and the State of
California, Regarding a Federal-State Partnership to Test a
Capitated Financial Alignment Model for Medicare-Medicaid
Enrollees, inclusive of all amendments, as authorized by Section
14132.275.

(5) “D-SNP plan” means a Medicare Advantage Dual Special
Needs Plan.

(6) “D-SNP contract” means a federal Medicare Improvements
for Patients and Provider Act of 2008 (Public Law 110-275)
compliant contract between the department and a D-SNP plan.

(7) “Demonstration project” means the demonstration project
authorized by Section 14132.275.

(8) “Excluded beneficiaries” means those beneficiaries who are
not eligible to participate in the demonstration project pursuant to
subdivision (l) of Section 14132.275.

(9) “FIDE-SNP plan” means a Medicare Advantage
Fully-Integrated Dual Eligible Special Needs Plan.

(10) “Non-Coordinated Care Initiative counties” means counties
not participating in the demonstration project.

(b) For the 2014 calendar year, the department shall offer D-SNP
contracts to existing D-SNP plans to continue to provide benefits
to their enrollees in their service areas as approved on January 1,
2013. The director may include in any D-SNP contract provisions
requiring that the D-SNP plan do the following:

(1) Submit to the department a complete and accurate copy of
the bid submitted by the plan to CMS for its D-SNP contract.

(2) Submit to the department copies of all utilization and quality
management reports submitted to CMS.

(c) In Coordinated Care Initiative counties, Medicare Advantage
plans and D-SNP plans may continue to enroll beneficiaries in
2014. In the 2014 calendar year, beneficiaries enrolled in a
Medicare Advantage or D-SNP plan operating in a Coordinated
Care Initiative county shall be exempt from the enrollment
provisions of subparagraph (A) of paragraph (1) of subdivision (l)
of Section 14132.275. Those beneficiaries may at any time
voluntarily choose to disenroll from their Medicare Advantage or
D-SNP plan and enroll in a demonstration site operating pursuant
to subdivision (g) of Section 14132.275. If a beneficiary chooses
to do so, that beneficiary may subsequently disenroll from the
demonstration site and return to fee-for-service Medicare or to a
D-SNP plan or Medicare Advantage plan.

(d) For the 2015 calendar year and the remainder of the
demonstration project, in Coordinated Care Initiative counties, the
department shall offer D-SNP contracts to D-SNP plans that were
approved for the D-SNP plan’s service areas as of January 1, 2013.
In Coordinated Care Initiative counties, the department shall enter
into D-SNP contracts with D-SNP plans only for excluded
beneficiaries and for those beneficiaries identified in paragraphs
(2) and (5) of subdivision (g).

(e) For the 2015 calendar year and the remainder of the
demonstration project, in non-Coordinated Care Initiative counties,
the department shall offer D-SNP contracts to D-SNP plans.

(f) The director may include in a D-SNP contract offered
pursuant to subdivision (d) or (e) provisions requiring that the
D-SNP plan do the following:

(1) Submit to the department a complete and accurate copy of
the bid submitted by the plan to CMS for its D-SNP contract.

(2) Submit to the department copies of all utilization and quality
management reports submitted to CMS.

(g) For the 2015 calendar year and the remainder of the
demonstration project, in Coordinated Care Initiative counties, the
enrollment provisions of subdivision (l) of Section 14132.275 shall
apply subject to the following:

(1) Beneficiaries enrolled in a FIDE-SNP plan or a Medicare
Advantage plan, other than a D-SNP plan, shall be exempt from
the enrollment provisions of subparagraph (A) of paragraph (1) of
subdivision (l) of Section 14132.275.

(2) If the D-SNP plan is not a Cal MediConnect plan,
beneficiaries enrolled as of December 31, 2014, in a D-SNP plan
shall be exempt from the enrollment provisions of subparagraph
(A) of paragraph (1) of subdivision (l) of Section 14132.275. Those
beneficiaries may at any time voluntarily choose to disenroll from
their D-SNP plan and enroll in a demonstration site operating
pursuant to subdivision (g) of Section 14132.275. A dual eligible
beneficiary who is enrolled as of December 31, 2014, in a D-SNP
plan that is not a Cal MediConnect plan and who opts out of a
demonstration site during the course of the demonstration project
may choose to reenroll in that D-SNP plan.

(3) If the D-SNP is a Cal MediConnect plan, beneficiaries
enrolled in a D-SNP plan who are eligible for the demonstration
project shall be subject to the enrollment provisions of
subparagraph (A) of paragraph (1) of subdivision (l) of Section
14132.275.

(4) For FIDE-SNP plans serving beneficiaries in Coordinated
Care Initiative counties, the department shall require the following
provisions:

(A) After December 31, 2014, enrollment in the County of Los
Angeles shall not exceed 6,000 additional beneficiaries at any
point during the term of the demonstration project. After December
31, 2014, enrollment in the combined Counties of Riverside and
San Bernardino shall not exceed 1,500 additional beneficiaries at
any point during the term of the demonstration project.

(B) Any necessary data or information requirements provided
by the FIDE-SNP to ensure contract compliance.

(5) Beneficiaries enrolled in an alternate health care service
plan (AHCSP) who become dually eligible for Medicare and
Medicaid benefits while enrolled in that AHCSP may elect to enroll
in the AHCSP’s D-SNP plan subject to the following requirements:

(A) The beneficiary was a member of the AHCSP immediately
prior to becoming dually eligible for Medicare and Medicaid
benefits.

(B) Upon mutual agreement between a Cal MediConnect Plan
operated by a health authority or commission contracting with the
department and the AHCSP, the AHCSP shall take full financial
and programmatic responsibility for the long-term supports and
services of the D-SNP enrollee, including, but not limited to,
in-home supportive services, long term skilled nursing care,
community based adult services, multipurpose senior services
program services, and other Medi-Cal benefits offered in the
demonstration project.

(6) Prior to assigning a beneficiary in a Medi-Cal managed care
health plan pursuant to Section 14182.16, the department shall
determine whether the beneficiary is already a member of the
AHCSP. If so, the beneficiary shall be assigned to a Medi-Cal
managed care health plan operated by a health authority or
commission contracting with the department and subcontracting
with the AHCSP.

begin delete SEC. 608. end delete
begin insert SEC. 617. end insert   

Section 14148.67 of the Welfare and Institutions
Code is amended to read:

14148.67.  

(a) When implementing the premium and
cost-sharing payments required under Sections 14102 and
14148.65, the department shall make the premium and cost-sharing
payments required under those sections to the beneficiary’s
qualified health plan in conformity with the requirements of this
section.

(b) (1) The beneficiary shall not be charged, billed, asked, or
required to make any premium or cost-sharing payments to his or
her qualified health plan or service provider for any services that
are subject to premium or cost-sharing payments by the department
under Section 14102 or 14148.65.

(2) If the beneficiary makes any premium or cost-sharing
payments to his or her plan or provider for services that are subject
to premium or cost-sharing payments by the department under
Section 14102 or 14148.65, the department shall reimburse the
beneficiary for those payments. The department shall make every
reasonable effort to do both of the following:

(A) Make the reimbursement process simple and easy for
beneficiaries to use.

(B) Promptly reimburse beneficiaries under this paragraph.

(3) If, as a result of reconciliation in a tax year in which the
beneficiary was eligible for covered premium payments under
Section 14102 or 14148.65, the beneficiary owes and makes a tax
payment to the federal government to return a portion of the
advanced premium tax credit to which the beneficiary was not
entitled and the beneficiary notifies the department, the department
shall reimburse the beneficiary for the amount of the tax payment
related to the tax credits for covered premium payments under
Section 14102 or 14148.65.

(4) If, as a result of reconciliation in a tax year in which the
beneficiary was eligible for covered premium payments under
Section 14102 or 14148.65, the federal government owes and
makes a tax refund to the beneficiary based upon the beneficiary’s
advanced premium tax credit, the beneficiary shall reimburse the
department for the portion of the refund that is related to the tax
credits that were applied to the premium payments made by the
department.

(c) (1) Except as provided in paragraph (2), beneficiaries who
are eligible for benefits under Section 14102 or 14148.65 shall be
eligible for the premium and cost-sharing payments required under
those sections only up to the amount necessary to pay for the
second lowest silver level plan in his or her qualified health plan
pricing region, as modified by cost-sharing reductions.

(2) If a beneficiary selects or remains in a metal level plan that
is more expensive than the metal level plan amount limit required
under paragraph (1), the beneficiary may select or remain in that
plan only if he or she agrees to be responsible for paying all
applicable premium and cost-sharing charges that are in excess of
what is covered by the department. The department is not
responsible for paying for any premium or cost sharing that is in
excess of the metal level plan amount limit required under
paragraph (1).

(d) The department shall consult with the Exchange, Exchange
contracting health care service plans and health insurers, and
stakeholders, including consumer advocates, Medi-Cal providers,
and the counties, in the development and implementation of the
following:

(1) Processes and procedures to inform affected applicants and
beneficiaries in a clear, consumer-friendly manner of all of their
enrollment options under the Medi-Cal program and the Exchange,
of the manner in which they may receive the benefits and services
covered through the Exchange coverage, and of the manner in
which they may receive benefits and services under Section 14102.

(2) Provider notices to ensure that Medi-Cal providers are aware
of the Medi-Cal program under Section 14102 and that providers
comply with state laws applicable to Medi-Cal coverage for
individuals eligible under Section 14102.

(e) All notices developed under subdivision (d) shall be
accessible to persons with limited English language proficiency
and persons with disabilities consistent with all federal and state
requirements.

(f) Notwithstanding Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code,
the department, without taking any further regulatory action, shall
implement, interpret, or make specific this section by means of
all-county letters, plan letters, plan or provider bulletins, or similar
instructions until the time regulations are adopted. The department
shall adopt regulations by July 1, 2017, in accordance with the
requirements of Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code.
Notwithstanding Section 10231.5 of the Government Code,
beginning six months after the effective date of this section, the
department shall provide a status report to the Legislature on a
semiannual basis, in compliance with Section 9795 of the
Government Code, until regulations have been adopted.

(g) This section shall be implemented only if and to the extent
that federal financial participation is available and any necessary
federal approvals have been obtained.

begin delete SEC. 609. end delete
begin insert SEC. 618. end insert   

Section 14148.9 of the Welfare and Institutions
Code, as added by Section 4 of Chapter 1171 of the Statutes of
1991, is amended and renumbered to read:

14148.85 begin insert . end insert   

The department shall provide for the receipt and
initial processing of Medi-Cal applications from (a) pregnant
women; and (b) children born after September 30, 1983, who have
not yet attained 19 years of age, at facilities other than the county
welfare department as described in Title XIX of the Social Security
Act (42 U.S.C., Sec. 1396 and following).

begin delete SEC. 610. end delete
begin insert SEC. 619. end insert   

Section 14154 of the Welfare and Institutions Code
is amended to read:

14154.  

(a) (1) The department shall establish and maintain a
plan whereby costs for county administration of the determination
of eligibility for benefits under this chapter will be effectively
controlled within the amounts annually appropriated for that
administration. The plan, to be known as the County Administrative
Cost Control Plan, shall establish standards and performance
criteria, including workload, productivity, and support services
standards, to which counties shall adhere. The plan shall include
standards for controlling eligibility determination costs that are
incurred by performing eligibility determinations at county
hospitals, or that are incurred due to the outstationing of any other
eligibility function. Except as provided in Section 14154.15,
reimbursement to a county for outstationed eligibility functions
shall be based solely on productivity standards applied to that
county’s welfare department office.

(2) (A) The plan shall delineate both of the following:

(i) The process for determining county administration base costs,
which include salaries and benefits, support costs, and staff
development.

(ii) The process for determining funding for caseload changes,
cost-of-living adjustments, and program and other changes.

(B) The annual county budget survey document utilized under
the plan shall be constructed to enable the counties to provide
sufficient detail to the department to support their budget requests.

(3) The plan shall be part of a single state plan, jointly developed
by the department and the State Department of Social Services, in
conjunction with the counties, for administrative cost control for
the California Work Opportunity and Responsibility to Kids
(CalWORKs), CalFresh, and Medical Assistance (Medi-Cal)
programs. Allocations shall be made to each county and shall be
limited by and determined based upon the County Administrative
Cost Control Plan. In administering the plan to control county
administrative costs, the department shall not allocate state funds
to cover county cost overruns that result from county failure to
meet requirements of the plan. The department and the State
Department of Social Services shall budget, administer, and
allocate state funds for county administration in a uniform and
consistent manner.

(4) The department and county welfare departments shall
develop procedures to ensure the data clarity, consistency, and
reliability of information contained in the county budget survey
document submitted by counties to the department. These
procedures shall include the format of the county budget survey
document and process, data submittal and its documentation, and
the use of the county budget survey documents for the development
of determining county administration costs. Communication
between the department and the county welfare departments shall
be ongoing as needed regarding the content of the county budget
surveys and any potential issues to ensure the information is
complete and well understood by involved parties. Changes
developed pursuant to this section shall be incorporated within the
state’s annual budget process by no later than the 2011-12 fiscal
year.

(5) The department shall provide a clear narrative description
along with fiscal detail in the Medi-Cal estimate package, submitted
to the Legislature in January and May of each year, of each
component of the county administrative funding for the Medi-Cal
program. This shall describe how the information obtained from
the county budget survey documents was utilized and, if applicable,
modified and the rationale for the changes.

(6) Notwithstanding any other law, the department shall develop
and implement, in consultation with county program and fiscal
representatives, a new budgeting methodology for Medi-Cal county
administrative costs that reflects the impact of PPACA
implementation on county administrative work. The new budgeting
methodology shall be used to reimburse counties for eligibility
processing and case maintenance for applicants and beneficiaries.

(A) The budgeting methodology may include, but is not limited
to, identification of the costs of eligibility determinations for
applicants, and the costs of eligibility redeterminations and case
maintenance activities for recipients, for different groupings of
cases, based on variations in time and resources needed to conduct
eligibility determinations. The calculation of time and resources
shall be based on the following factors: complexity of eligibility
rules, ongoing eligibility requirements, and other factors as
determined appropriate by the department. The development of
the new budgeting methodology may include, but is not limited
to, county survey of costs, time and motion studies, in-person
observations by department staff, data reporting, and other factors
deemed appropriate by the department.

(B) The new budgeting methodology shall be clearly described,
state the necessary data elements to be collected from the counties,
and establish the timeframes for counties to provide the data to
the state.

(C) The new budgeting methodology developed pursuant to this
paragraph shall be implemented no sooner than the 2015-16 fiscal
year. The department may develop a process for counties to phase
in the requirements of the new budgeting methodology.

(D) The department shall provide the new budgeting
methodology to the legislative fiscal committees by March 1 of
the fiscal year immediately preceding the first fiscal year of
implementation of the new budgeting methodology.

(E) To the extent that the funding for the county budgets
developed pursuant to the new budget methodology is not fully
appropriated in any given fiscal year, the department, with input
from the counties, shall identify and consider options to align
funding and workload responsibilities.

(F) For purposes of this paragraph, “PPACA” means the federal
Patient Protection and Affordable Care Act (Public Law 111-148),
as amended by the federal Health Care and Education
Reconciliation Act of 2010 (Public Law 111-152) and any
subsequent amendments.

(G) Notwithstanding Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code,
the department may implement, interpret, or make specific this
paragraph by means of all-county letters, plan letters, plan or
provider bulletins, or similar instructions until the time any
necessary regulations are adopted. The department shall adopt
regulations by July 1, 2017, in accordance with the requirements
of Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code. Beginning six
months after the implementation of the new budgeting methodology
pursuant to this paragraph, and notwithstanding Section 10231.5
of the Government Code, the department shall provide a status
report to the Legislature on a semiannual basis, in compliance with
Section 9795 of the Government Code, until regulations have been
adopted.

(b) This section, Section 15204.5, or Section 18906 shall not
be construed to limit the administrative or budgetary
responsibilities of the department in a manner that would violate
Section 14100.1, and thereby jeopardize federal financial
participation under the Medi-Cal program.

(c) (1) The Legislature finds and declares that in order for
counties to do the work that is expected of them, it is necessary
that they receive adequate funding, including adjustments for
reasonable annual cost-of-doing-business increases. The Legislature
further finds and declares that linking appropriate funding for
county Medi-Cal administrative operations, including annual
cost-of-doing-business adjustments, with performance standards
will give counties the incentive to meet the performance standards
and enable them to continue to do the work they do on behalf of
the state. It is therefore the Legislature’s intent to provide
appropriate funding to the counties for the effective administration
of the Medi-Cal program at the local level to ensure that counties
can reasonably meet the purposes of the performance measures as
contained in this section.

(2) It is the intent of the Legislature to not appropriate funds for
the cost-of-doing-business adjustment for the 2008-09, 2009-10,
2010-11, 2011-12, 2012-13, and 2014-15 fiscal years.

(d) The department is responsible for the Medi-Cal program in
accordance with state and federal law. A county shall determine
Medi-Cal eligibility in accordance with state and federal law. If
in the course of its duties the department becomes aware of
accuracy problems in any county, the department shall, within
available resources, provide training and technical assistance as
appropriate. This section shall not be interpreted to eliminate any
remedy otherwise available to the department to enforce accurate
county administration of the program. In administering the
Medi-Cal eligibility process, each county shall meet the following
performance standards each fiscal year:

(1) Complete eligibility determinations as follows:

(A) Ninety percent of the general applications without applicant
errors and are complete shall be completed within 45 days.

(B) Ninety percent of the applications for Medi-Cal based on
disability shall be completed within 90 days, excluding delays by
the state.

(2) (A) The department shall establish best-practice guidelines
for expedited enrollment of newborns into the Medi-Cal program,
preferably with the goal of enrolling newborns within 10 days after
the county is informed of the birth. The department, in consultation
with counties and other stakeholders, shall work to develop a
process for expediting enrollment for all newborns, including those
born to mothers receiving CalWORKs assistance.

(B) Upon the development and implementation of the
best-practice guidelines and expedited processes, the department
and the counties may develop an expedited enrollment timeframe
for newborns that is separate from the standards for all other
applications, to the extent that the timeframe is consistent with
these guidelines and processes.

(3) Perform timely annual redeterminations, as follows:

(A) Ninety percent of the annual redetermination forms shall
be mailed to the recipient by the anniversary date.

(B) Ninety percent of the annual redeterminations shall be
completed within 60 days of the recipient’s annual redetermination
date for those redeterminations based on forms that are complete
and have been returned to the county by the recipient in a timely
manner.

(C) Ninety percent of those annual redeterminations for which
the redetermination form has not been returned to the county by
the recipient shall be completed by sending a notice of action to
the recipient within 45 days after the date the form was due to the
county.

(D) If a child is determined by the county to change from no
share of cost to a share of cost and the child meets the eligibility
criteria for the Healthy Families Program established under Section
12693.98 of the Insurance Code, the child shall be placed in the
Medi-Cal-to-Healthy Families Bridge Benefits Program, and these
cases shall be processed as follows:

(i) Ninety percent of the families of these children shall be sent
a notice informing them of the Healthy Families Program within
five working days from the determination of a share of cost.

(ii) Ninety percent of all annual redetermination forms for these
children shall be sent to the Healthy Families Program within five
working days from the determination of a share of cost if the parent
has given consent to send this information to the Healthy Families
Program.

(iii) Ninety percent of the families of these children placed in
the Medi-Cal-to-Healthy Families Bridge Benefits Program who
have not consented to sending the child’s annual redetermination
form to the Healthy Families Program shall be sent a request,
within five working days of the determination of a share of cost,
to consent to send the information to the Healthy Families Program.

(E) Subparagraph (D) shall not be implemented until 60 days
after the Medi-Cal and Joint Medi-Cal and Healthy Families
applications and the Medi-Cal redetermination forms are revised
to allow the parent of a child to consent to forward the child’s
information to the Healthy Families Program.

(e) The department shall develop procedures in collaboration
with the counties and stakeholder groups for determining county
review cycles, sampling methodology and procedures, and data
reporting.

(f) On January 1 of each year, each applicable county, as
determined by the department, shall report to the department on
the county’s results in meeting the performance standards specified
in this section. The report is subject to verification by the
department. County reports shall be provided to the public upon
written request.

(g) If the department finds that a county is not in compliance
with one or more of the standards set forth in this section, the
county shall, within 60 days, submit a corrective action plan to the
department for approval. The corrective action plan shall, at a
minimum, include steps that the county shall take to improve its
performance on the standard or standards with which the county
is out of compliance. The plan shall establish interim benchmarks
for improvement that shall be expected to be met by the county in
order to avoid a sanction.

(h) (1) If a county does not meet the performance standards for
completing eligibility determinations and redeterminations as
specified in this section, the department may, at its sole discretion,
reduce the allocation of funds to that county in the following year
by 2 percent. Funds so reduced may be restored by the department
if, in the determination of the department, sufficient improvement
has been made by the county in meeting the performance standards
during the year for which the funds were reduced. If the county
continues not to meet the performance standards, the department
may reduce the allocation by an additional 2 percent for each year
thereafter in which sufficient improvement has not been made to
meet the performance standards.

(2) A reduction of the allocation of funds to a county shall not
be imposed pursuant to this subdivision for failure to meet
performance standards during any period of time in which the
cost-of-doing-business increase is suspended.

(i) The department shall develop procedures, in collaboration
with the counties and stakeholders, for developing instructions for
the performance standards established under subparagraph (D) of
paragraph (3) of subdivision (d), no later than September 1, 2005.

(j) No later than September 1, 2005, the department shall issue
a revised annual redetermination form to allow a parent to indicate
parental consent to forward the annual redetermination form to
the Healthy Families Program if the child is determined to have a
share of cost.

(k) The department, in coordination with the Managed Risk
Medical Insurance Board, shall streamline the method of providing
the Healthy Families Program with information necessary to
determine Healthy Families eligibility for a child who is receiving
services under the Medi-Cal-to-Healthy Families Bridge Benefits
Program.

(l) Notwithstanding Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code,
and except as provided in subparagraph (G) of paragraph (6) of
subdivision (a), the department shall, without taking any further
regulatory action, implement, interpret, or make specific this
section and any applicable federal waivers and state plan
amendments by means of all-county letters or similar instructions.

begin delete SEC. 611. end delete
begin insert SEC. 620. end insert   

Section 14165.50 of the Welfare and Institutions
Code is amended to read:

14165.50.  

(a) To facilitate the financial viability of a new
private nonprofit hospital that will serve the population of South
Los Angeles that was formerly served by the Los Angeles County
Martin Luther King, Jr.-Harbor Hospital, Medi-Cal funding shall,
at a minimum, be made available, as specified in this section, or
pursuant to mechanisms that provide equivalent funding under
successor or modified Medi-Cal payment systems.

(b)  Medi-Cal payment for hospital services provided by the
new hospital, exclusive of any payments under the Medi-Cal
Hospital Reimbursement Improvement Act of 2013 (Article 5.230
(commencing with Section 14169.50)) or funded by another
statewide hospital fee program, and exclusive of the supplemental
payments specified in subdivision (d), shall include consideration
of the new hospital’s projected Medi-Cal costs for providing the
services as set forth in this section.

(1) (A) Subject to paragraph (2) of subdivision (c), and
notwithstanding any other law, Medi-Cal payments made to the
new hospital on a fee-for-service basis, including payments made
pursuant to the methodology authorized under Section 14105.28
or successor or modified methodologies, shall provide
compensation that is, at a minimum, equal to 100 percent of the
new hospital’s projected Medi-Cal costs for each fiscal year.

(B) To the extent supplemental payments are necessary for any
fiscal year to meet the applicable minimum reimbursement level
as described in subparagraph (A), the department shall seek federal
approval, as necessary, to enable the new hospital to receive the
Medi-Cal supplemental payments.

(2) (A) To the extent permitted under federal law, the
department shall require Medi-Cal managed care plans serving
Medi-Cal beneficiaries in the County of Los Angeles to pay the
new hospital amounts determined necessary to meet compensation
levels for services provided to managed care enrollees that are no
less than the amount to which the new hospital would have received
on a fee-for-service basis pursuant to paragraph (1). The amounts
shall be determined in consultation with the new hospital, the
County of Los Angeles, and the Medi-Cal managed care plan, and
shall be subject to paragraph (2) of subdivision (c).

(B) Consistent with federal law, the capitation rates paid to
Medi-Cal managed care plans serving Medi-Cal beneficiaries in
the County of Los Angeles shall be determined to reflect the
obligations described in subparagraph (A). The increased payments
to Medi-Cal managed care plans that would be paid consistent
with actuarial certification and enrollment in the absence of this
paragraph shall not be reduced as a consequence of this paragraph.

(C) A Medi-Cal managed care plan receiving the increased
payments described in subparagraph (B) shall not impose a fee or
retention amount, or reduce other payments to the new hospital
that would result in a direct or indirect reduction to the amounts
required to be paid under subparagraph (A).

(3) This subdivision shall not be construed to result in payments
that are less than the rates of compensation that would be payable
to the new hospital for Medi-Cal services without regard to the
requirements of paragraphs (1) and (2).

(c) If the applicable minimum reimbursement levels required
in subdivision (b) result in payments to the new hospital that are
above the levels of compensation that would have been payable
absent that requirement, and to the extent a nonfederal share is
necessary with respect to the additional compensation, the
following provisions shall apply:

(1) (A) For each fiscal year through the 2016-17 fiscal year,
General Fund amounts appropriated in the annual Budget Act for
the Medi-Cal program shall fund the nonfederal share of the
additional payments to the extent that the rates of compensation
for inpatient hospital services provided by the new hospital that
would have been payable in the absence of the requirements of
subdivision (b) are less than 77 percent of the new hospital’s
projected Medi-Cal costs. With respect to the nonfederal share of
the additional payments described in paragraph (2) of subdivision
(b), however, this subparagraph shall be applicable only for
inpatient services provided in conjunction with the implementation
of Section 14182, and other mandatory managed care enrollment
provisions implemented subsequent to January 1, 2011.

(B) For the 2017-18 fiscal year and each subsequent fiscal year,
General Fund amounts appropriated in the annual Budget Act for
the Medi-Cal program shall fund the nonfederal share of the
additional payments to the extent that the rates of compensation
for inpatient hospital services provided by the new hospital that
would have been payable in the absence of the requirements of
subdivision (b) are less than 72 percent of the new hospital’s
projected Medi-Cal costs. With respect to the nonfederal share of
the additional payments described in paragraph (2) of subdivision
(b), however, this subparagraph shall be applicable only for
inpatient services provided in conjunction with the implementation
of Section 14182, and other mandatory managed care enrollment
provisions implemented subsequent to January 1, 2011.

(2) (A) The remaining necessary nonfederal share of the
additional payments, after taking into account the General Fund
amounts described in paragraph (1), may be funded with public
funds that are transferred to the state from the County of Los
Angeles, at the county’s election, pursuant to Section 14164. To
the extent the county elects not to fund any portion of the remaining
necessary nonfederal share, the applicable minimum reimbursement
levels required in subdivision (b) shall be reduced accordingly.

(B) Public funds transferred to the state for payments to the new
hospital as described in this paragraph with respect to a fiscal
period shall be expended solely for the nonfederal share of the
payments. Notwithstanding any other law, except as provided in
subdivision (m), the department shall not impose any fee or
assessment in connection with the transferred funds or the
payments provided for under this section, including, but not limited
to, reimbursement for state staffing or administrative costs.

(C) If any portion of the funds transferred pursuant to this
paragraph is not expended, or not expected to be expended, for
the specified rate amounts required in subdivision (b), the
unexpended funds shall be returned promptly to the transferring
county.

(3) This subdivision shall not be construed to reduce the
nonfederal share of payments funded by General Fund amounts
below the amounts that would be funded without regard to the
minimum payment levels required under this section.

(d) (1) In addition to payments meeting the applicable minimum
reimbursement levels described in subdivision (b), the new hospital
shall be eligible to receive supplemental payments. The
supplemental payments shall be provided annually in amounts
determined in consultation with the new hospital and the County
of Los Angeles, and subject to paragraph (3).

(2) The department shall seek federal approval, as necessary,
to enable the new hospital to receive supplemental payments that
are in addition to the applicable minimum reimbursement levels
required in subdivision (b). The supplemental payments may be
provided for under the mechanisms described in Sections 14166.12
and 14301.4 or successor or modified mechanisms, or any other
federally permissible payment mechanism. Supplemental payments
that are payable through a Medi-Cal managed care plan shall be
subject to the same requirements described in subparagraph (C)
of paragraph (2) of subdivision (b).

(3) If a nonfederal share is necessary to fund the supplemental
payments, the County of Los Angeles may voluntarily provide
public funds that are transferred to the state pursuant to Section
14164. The county may specify the type of supplemental payment
for which it is transferring funds, and any other category relevant
to the payment, including, but not limited to, fee-for-service
supplemental payment, managed care rate range payment, and
payment for services rendered to newly eligible beneficiaries as
defined in subdivision (s) of Section 17612.2.

(4) Public funds transferred to the state for supplemental
payments to the new hospital as described in this subdivision with
respect to a fiscal period shall be expended solely for the nonfederal
share of the supplemental payments as specified pursuant to
paragraph (3). Notwithstanding any other law, subdivision (o) of
Section 14166.12 shall not apply, and the department shall not
assess the fee described in subdivision (d) of Section 14301.4, or
any other similar fee, except as provided in subdivision (m). If any
portion of the funds transferred pursuant to this subdivision is not
expended, or not expected to be expended, for the specified
supplemental payments, the unexpended funds shall be returned
promptly to the transferring county.

(e) Notwithstanding any other law, all payments provided for
under this section shall be treated as having been paid for purposes
of any determination of available room under the federal upper
payment limit, as specified in Part 447 of Title 42 of the Code of
Federal Regulations, with respect to the applicable class of services
and class of health care provider.

(f) (1)  For purposes of this article, “new hospital” means a
health facility that is certified under Title XVIII and Title XIX of
the federal Social Security Act, and is licensed pursuant to Chapter
2 (commencing with Section 1250) of Division 2 of the Health
and Safety Code to provide acute inpatient hospital services, and
includes all components of the facility, with an inpatient hospital
service location on the campus of the former Los Angeles County
Martin Luther King, Jr.-Harbor Hospital.

(2) “Medi-Cal managed care plan” shall have the meaning
provided in paragraph (5) of subdivision (b) of Section 14199.1.

(g) For purposes of this article, the new hospital’s projected
Medi-Cal costs shall be based on the cost finding principles applied
under subdivision (b) of Section 14166.4, except that the projected
costs shall not be multiplied by the federal medical assistance
percentage and are not subject to the reimbursement limitations
set forth in Article 7.5 (commencing with Section 51536) of
Chapter 3 of Subdivision 1 of Division 3 of Title 22 of the
California Code of Regulations. The projected Medi-Cal costs
shall be determined prior to the start of each fiscal year in
consultation with the new hospital, using the best available and
reasonable current estimates or projections made with respect to
the new hospital for an annual period, and shall be considered final
as of the start of the fiscal year for purposes of the minimum
payment levels described in subdivision (b).

(h) Notwithstanding any other law, the new hospital shall not
be eligible to receive payments pursuant to Section 14166.11. This
subdivision, however, shall not be construed to preclude the
hospital from eligibility for disproportionate share status, or from
receipt of any federal Medicaid disproportionate share hospital
payments to which it would be entitled, pursuant to the Medi-Cal
State Plan.

(i) Except as specified in subdivision (h), this section shall not
be construed to preclude the new hospital from receiving any other
payment for which it is eligible in addition to the payments
provided for by this section.

(j) Notwithstanding any other law, for purposes of Article 12
(commencing with Section 17612.1) of Chapter 6 of Part 5, the
intergovernmental transfers described in this section as reflected
in the actual net expenditures for all operating budget units of the
County of Los Angeles Department of Health Services shall not
be reduced in any manner in the determination of total costs under
paragraph (6) of subdivision (b) of Section 17612.5, by application
of the imputed other entity intergovernmental transfer amounts or
otherwise.

(k) Notwithstanding the rulemaking provisions of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code, the department may implement this
section by means of all-facility letters, all-county letters, or similar
instructions, without taking further regulatory action. This section
shall not be construed to preclude the department from adopting
regulations.

(l) (1) The department shall obtain federal approvals or waivers
as necessary to implement this section and to obtain federal
matching funds to the maximum extent permitted by federal law.
This section shall be implemented only if, and to the extent that,
federal financial participation is available and this section does
not jeopardize the federal financial participation available for any
other state program.

(2) This section shall be implemented only if, and to the extent
that, any necessary federal approvals are obtained.

(m) As part of its voluntary participation to provide the
nonfederal share of payments under this section, the County of
Los Angeles shall agree to reimburse the state for the nonfederal
share of state staffing and administrative costs directly attributable
to the cost of administrating the payments and associated
intergovernmental transfers. The costs shall be documented and
subject to review by the county.

begin delete SEC. 612. end delete
begin insert SEC. 621. end insert   

Section 14166.22 of the Welfare and Institutions
Code is amended to read:

14166.22.  

(a) To the extent required to maximize available
federal funds under the demonstration project and to the extent
authorized by the Special Terms and Conditions for the
demonstration project, the department may claim federal
reimbursement for expenditures, consistent with the equitable
distribution established under this article, in the following priority
order:

(1) The medically indigent adults long-term care program.

(2) The Genetically Handicapped Persons Program established
pursuant to Article 1 (commencing with Section 125125) of
Chapter 2 of Part 5 of Division 106 of the Health and Safety Code.

(3) The Breast and Cervical Cancer Treatment Program
established pursuant to Article 1.5 (commencing with Section
104160) of Chapter 2 of Part 1 of Division 103 of the Health and
Safety Code.

(4) The California Children’s Services Program established
pursuant to Article 5 (commencing with Section 123800) of
Chapter 3 of Part 2 of Division 106 of the Health and Safety Code.

(b) Notwithstanding any other law, the federal reimbursement
received as a result of a claim made pursuant to subdivision (a)
shall be used to create General Fund savings solely for the
department for use in support of safety net hospitals under the
demonstration project.

(c) The federal reimbursement received as a result of a claim
made pursuant to subdivision (a) is hereby appropriated to the
department for the program in which the claimed expenditures
were made.

(d) An amount of General Fund moneys appropriated to the
department for programs specified in subdivision (a) equal to the
amount of federal reimbursement identified pursuant to subdivision
(c) is hereby reappropriated to the Health Care Deposit Fund to
be used for the purposes set forth in this article.

begin delete SEC. 613. end delete
begin insert SEC. 622. end insert   

The heading of Article 5.22 (commencing with
Section 14167.35) is added to Chapter 7 of Part 3 of Division 9 of
the Welfare and Institutions Code, to read:

 

Article 5.22.  Quality Assurance Fee Act

 

begin delete SEC. 614. end delete
begin insert SEC. 623. end insert   

Section 15151 of the Welfare and Institutions Code
is amended to read:

15151.  

During the times that grants-in-aid are provided or made
available by the United States government for the purpose of
defraying any portion of the costs of administration incurred for
public assistance, the State Treasurer shall pay to each county an
amount equal to the county’s proportionate share of the sum so
granted for the cost of administration, which amount shall be used
exclusively for paying the administrative costs. Except as provided
in Section 15151.5, the department shall determine the portion of
the amount so granted or made available for administrative costs
to be paid to the counties, which portion shall be determined
pursuant to rules and regulations of the department and shall be
not less than one-half of the amount so granted or made available.
The department shall adopt rules and regulations that shall be of
uniform application for determining the proportionate shares of
the respective counties of the portion so determined to be paid to
those counties.

This section shall become operative and shall supersede provision
(2) of Section 15150 during the times that grants by the United
States government, provided or made available to defray any
portion of administrative costs incurred for public assistance, are
not computed as a proportion of those costs of administration.
Whenever this section is in effect, all other sections referring to
Section 15150 shall also be deemed to refer to this section.

begin insert

begin insert SEC. 624. end insert   

end insert

begin insert Section 15655 of the end insert begin insert Welfare and Institutions Code end insert
begin insert is amended to read: end insert

15655.  

(a) (1) Each long-term health care facility, as defined
in Section 1418 of the Health and Safety Code, community care
facility, as defined in Section 1502 of the Health and Safety Code,
or residential care facility for the elderly, as defined in Section
1569.2 of the Health and Safety Code, that provides care to adults
shall provide training in recognizing and reporting elder and
dependent adult abuse, as prescribed by the Department of Justice.
The Department of Justice shall, in cooperation with the State
Department of Health Services and the State Department of Social
Services, develop a minimal core training program for use by these
facilities. As part of that training, long-term care facilities,
including nursing homes and out-of-home care facilities, shall
provide to all staff being trained a written copy of the reporting
requirements and a written notification of the staff’s confidentiality
rights as specified in Section begin delete 15633. end delete begin insert 15633.5. end insert

(2) Each long-term health care facility begin insert , end insert as defined in Section
1418 of the Health and Safety Code begin insert , end insert and each community care
facility as defined in Section 1502 of the Health and Safety Code begin insert , end insert
shall comply with paragraph (1) by January 1, 2001, or, if the
facility began operation after July 31, 2000, within six months of
the date of the beginning of the operation of the facility. Employees
hired after June 1, 2001, shall be trained within 60 days of their
first day of employment.

(3) Each residential care facility begin insert , end insert as defined in Section 1569.2
of the Health and Safety Code begin insert , end insert shall comply with paragraph (1)
by July 1, 2002, or, if the facility began operation after July 1,
2002, within six months of the date of the beginning of the
operation of the facility. Employees hired on or after July 1, 2002,
shall be trained within 60 days of their first day of employment.

(b) Each long-term health care facility, as defined in Section
1418 of the Health and Safety Code, shall be subject to review by
the State Department of Health Services Licensing and Certification
Unit for compliance with the duties imposed in subdivision (a).

(c) Each community care facility, as defined in Section 1502
of the Health and Safety Code, and residential care facility for the
elderly, as defined in Section 1569.2 of the Health and Safety
Code, shall be subject to review by the State Department of Social
Services Community Care Licensing Unit for compliance with the
duties imposed in subdivision (a).

begin delete SEC. 615. end delete
begin insert SEC. 625. end insert   

Section 15862 of the Welfare and Institutions Code
is amended to read:

15862.  

(a) The provisions of this chapter shall be implemented
only if all of the following conditions are met:

(1) Federal financial participation is available for this purpose.

(2) Federal participation is approved.

(3) The department determines that federal funds under Title
XXI of the Social Security Act remain available after providing
funds for all current enrollees and eligible children that are likely
to enroll in the optional targeted low-income children group and,
to the extent funded through the federal Children’s Health
Insurance Program (Subchapter 21 (commencing with Section
1397aa) of Chapter 7 of Title 42 of the United States Code), the
Medi-Cal Access program and Medi-Cal program, as determined
by a Department of Finance estimate.

(4) Funds are appropriated specifically for this purpose.

(b) The department may accept funding necessary for the
preparation of the federal waiver applications or state plan
amendments described in Section 15861 from a not-for-profit
group or foundation, but only to the extent that the funding may
be eligible for federal financial participation.

begin delete SEC. 616. end delete
begin insert SEC. 626. end insert   

Section 15885.5 of the Welfare and Institutions
Code is amended to read:

15885.5.  

If more than one participating health plan is offered,
the department shall make available to applicants eligible to enroll
in the program sufficient information to make an informed choice
among the various types of participating health plans. Each
applicant shall be issued an appropriate document setting forth or
summarizing the services to which an enrollee is entitled,
procedures for obtaining major risk medical coverage, a list of
contracting health plans and providers, and a summary of grievance
procedures.

begin delete SEC. 617. end delete
begin insert SEC. 627. end insert   

Section 15894.5 of the Welfare and Institutions
Code is amended to read:

15894.5.  

(a) From money appropriated by the Legislature to
the fund, the department may expend sufficient funds to carry out
the purposes of this chapter and of Section 10127.16 of the
Insurance Code, and Section 1373.622 of the Health and Safety
Code.

(b) However, the state is not liable beyond the assets of the fund
for any obligations incurred, or liabilities sustained, in the operation
of the California Major Risk Medical Insurance Program or for
the expenditures described in Section 10127.16 of the Insurance
Code and Section 1373.622 of the Health and Safety Code.

begin delete SEC. 618. end delete
begin insert SEC. 628. end insert   

Section 16120 of the Welfare and Institutions Code
is amended to read:

16120.  

A child is eligible for Adoption Assistance Program
benefits if all of the conditions specified in subdivisions (a) to (l),
inclusive, are met or if the conditions specified in subdivision (m)
are met.

(a) It has been determined that the child cannot or should not
be returned to the home of his or her parents as evidenced by a
petition for termination of parental rights, a court order terminating
parental rights, or a signed relinquishment, or, in the case of a
tribal customary adoption, if the court has given full faith and
credit to a tribal customary adoption order as provided for pursuant
to paragraph (2) of subdivision (e) of Section 366.26, or, in the
case of a nonminor dependent the court has dismissed dependency
or transitional jurisdiction subsequent to the approval of the
nonminor dependent, adoption petition pursuant to subdivision (f)
of Section 366.31.

(b) The child has at least one of the following characteristics
that are barriers to his or her adoption:

(1) Adoptive placement without financial assistance is unlikely
because of membership in a sibling group that should remain intact
or by virtue of race, ethnicity, color, language, age of three years
or older, or parental background of a medical or behavioral nature
that can be determined to adversely affect the development of the
child.

(2) Adoptive placement without financial assistance is unlikely
because the child has a mental, physical, emotional, or medical
disability that has been certified by a licensed professional
competent to make an assessment and operating within the scope
of his or her profession. This paragraph shall also apply to children
with a developmental disability, as defined in subdivision (a) of
Section 4512, including those determined to require out-of-home
nonmedical care, as described in Section 11464.

(c) The need for an adoption subsidy is evidenced by an
unsuccessful search for an adoptive home to take the child without
financial assistance, as documented in the case file of the
prospective adoptive child. The requirement for this search shall
be waived when it would be against the best interest of the child
because of the existence of significant emotional ties with
prospective adoptive parents while in the care of these persons as
a foster child.

(d) The child satisfies any of the following criteria:

(1) He or she is under 18 years of age.

(2) He or she is under 21 years of age and has a mental or
physical handicap that warrants the continuation of assistance.

(3) Effective January 1, 2012, he or she is under 19 years of
age, effective January 1, 2013, he or she is under 20 years of age,
and effective January 1, 2014, he or she is under 21 years of age
and as described in Section 10103.5, and has attained 16 years of
age before the adoption assistance agreement became effective,
and one or more of the conditions specified in paragraphs (1) to
(5), inclusive, of subdivision (b) of Section 11403 applies.

(e) The adoptive family is responsible for the child pursuant to
the terms of an adoptive placement agreement or a final decree of
adoption and has signed an adoption assistance agreement.

(f) The adoptive family is legally responsible for the support of
the child and the child is receiving support from the adoptive
parent.

(g) The department or the county responsible for determining
the child’s Adoption Assistance Program eligibility status and for
providing financial aid, and the prospective adoptive parent, prior
to or at the time the adoption decree is issued by the court, have
signed an adoption assistance agreement that stipulates the need
for, and the amount of, Adoption Assistance Program benefits.

(h) The prospective adoptive parent or any adult living in the
prospective adoptive home has completed the criminal background
check requirements pursuant to Section 671(a)(20)(A) and (C) of
Title 42 of the United States Code.

(i) To be eligible for state funding, the child is the subject of an
agency adoption, as defined in Section 8506 of the Family Code,
and was any of the following:

(1) Under the supervision of a county welfare department as
the subject of a legal guardianship or juvenile court dependency.

(2) Relinquished for adoption to a licensed California private
or public adoption agency, or another public agency operating a
Title IV-E program on behalf of the state, and would have
otherwise been at risk of dependency as certified by the responsible
public child welfare agency.

(3) Committed to the care of the department pursuant to Section
8805 or 8918 of the Family Code.

(4) The child is an Indian child and the subject of an order of
adoption based on tribal customary adoption of an Indian child,
as described in Section 366.24. Notwithstanding Section 8600.5
of the Family Code, for purposes of this subdivision a tribal
customary adoption shall be considered an agency adoption.

(j) To be eligible for federal funding, in the case of a child who
is not an applicable child for the federal fiscal year as defined in
subdivision (n), the child satisfies any of the following criteria:

(1) Prior to the finalization of an agency adoption, as defined
in Section 8506 of the Family Code, or an independent adoption,
as defined in Section 8524 of the Family Code, is filed, the child
has met the requirements to receive federal supplemental security
income benefits pursuant to Subchapter 16 (commencing with
Section 1381) of Chapter 7 of Title 42 of the United States Code,
as determined and documented by the federal Social Security
Administration.

(2) The child was removed from the home of a specified relative
and the child would have been AFDC eligible in the home of
removal according to Section 606(a) or 607 of Title 42 of the
United States Code, as those sections were in effect on July 16,
1996, in the month of the voluntary placement agreement or in the
month court proceedings are initiated to remove the child, resulting
in a judicial determination that continuation in the home would be
contrary to the child’s welfare. The child must have been living
with the specified relative from whom he or she was removed
within six months of the month the voluntary placement agreement
was signed or the petition to remove was filed.

(3) The child was voluntarily relinquished to a licensed public
or private adoption agency, or another public agency operating a
Title IV-E program on behalf of the state, and there is a petition
to the court to remove the child from the home within six months
of the time the child lived with a specified relative and a subsequent
judicial determination that remaining in the home would be
contrary to the child’s welfare.

(4) Title IV-E foster care maintenance was paid on behalf of
the child’s minor parent and covered the cost of the minor parent’s
child while the child was in the foster family home or child care
institution with the minor parent.

(5) The child is an Indian child and the subject of an order of
adoption based on tribal customary adoption of an Indian child,
as described in Section 366.24.

(k) To be eligible for federal funding, in the case of a child who
is an applicable child for the federal fiscal year, as defined in
subdivision (n), the child meets any of the following criteria:

(1) At the time of initiation of adoptive proceedings was in the
care of a public or licensed private child placement agency or
Indian tribal organization pursuant to either of the following:

(A) An involuntary removal of the child from the home in
accordance with a judicial determination to the effect that
continuation in the home would be contrary to the welfare of the
child.

(B) A voluntary placement agreement or a voluntary
relinquishment.

(2) He or she meets all medical or disability requirements of
Title XVI with respect to eligibility for supplemental security
income benefits.

(3) He or she was residing in a foster family home or a child
care institution with the child’s minor parent, and the child’s minor
parent was in the foster family home or child care institution
pursuant to either of the following:

(A) An involuntary removal of the child from the home in
accordance with a judicial determination to the effect that
continuation in the home would be contrary to the welfare of the
child.

(B) A voluntary placement agreement or voluntary
relinquishment.

(4) The child is an Indian child and the subject of an order of
adoption based on tribal customary adoption of an Indian child,
as described in Section 366.24.

(5) The nonminor dependent, as described in subdivision (v) of
Section 11400, is the subject of an adoption pursuant to subdivision
(f) of Section 366.31.

(l) The child is a citizen of the United States or a qualified alien
as defined in Section 1641 of Title 8 of the United States Code. If
the child is a qualified alien who entered the United States on or
after August 22, 1996, and is placed with an unqualified alien, the
child must meet the five-year residency requirement pursuant to
Section 673(a)(2)(B) of Title 42 of the United States Code, unless
the child is a member of one of the excepted groups pursuant to
Section 1612(b) of Title 8 of the United States Code.

(m) A child or nonminor shall be eligible for Adoption
Assistance Program benefits if the following conditions are met:

(1) The child or nonminor received Adoption Assistance
Program benefits with respect to a prior adoption and the child or
nonminor is again available for adoption because the prior adoption
was dissolved and the parental rights of the adoptive parents were
terminated or because the child’s or nonminor’s adoptive parents
died and the child or nonminor meets the special needs criteria
described in subdivisions (a) to (c), inclusive. When a nonminor
is receiving Adoption Assistance Program benefits after 18 years
of age and the nonminor’s adoptive parents die, the juvenile court
may resume dependency jurisdiction over the nonminor pursuant
to Section 388.1 begin insert . end insert

(2) To receive federal funding, the citizenship requirements in
subdivision (l).

(n) (1) Except as provided in this subdivision, “applicable child”
means a child for whom an adoption assistance agreement is
entered into under this section during any federal fiscal year
described in this subdivision if the child attained the applicable
age for that federal fiscal year before the end of that federal fiscal
year.

(A) For federal fiscal year 2010, the applicable age is 16 years.

(B) For federal fiscal year 2011, the applicable age is 14 years.

(C) For federal fiscal year 2012, the applicable age is 12 years.

(D) For federal fiscal year 2013, the applicable age is 10 years.

(E) For federal fiscal year 2014, the applicable age is eight years.

(F) For federal fiscal year 2015, the applicable age is six years.

(G) For federal fiscal year 2016, the applicable age is four years.

(H) For federal fiscal year 2017, the applicable age is two years.

(I) For federal fiscal year 2018 and thereafter, any age.

(2) Beginning with the 2010 federal fiscal year, the term
“applicable child” shall include a child of any age on the date on
which an adoption assistance agreement is entered into on behalf
of the child under this section if the child meets both of the
following criteria:

(A) He or she has been in foster care under the responsibility
of the state for at least 60 consecutive months.

(B) He or she meets the requirements of subdivision (k).

(3) Beginning with the 2010 federal fiscal year, an applicable
child shall include a child of any age on the date that an adoption
assistance agreement is entered into on behalf of the child under
this section, without regard to whether the child is described in
paragraph (2), if the child meets all of the following criteria:

(A) He or she is a sibling of a child who is an applicable child
for the federal fiscal year, under subdivision (n) or paragraph (2).

(B) He or she is to be placed in the same adoption placement
as an “applicable child” for the federal fiscal year who is their
sibling.

(C) He or she meets the requirements of subdivision (k).

begin delete SEC. 619. end delete
begin insert SEC. 629. end insert   

Section 16500.5 of the Welfare and Institutions
Code is amended to read:

16500.5.  

(a) (1) The Legislature hereby declares its intent to
encourage the continuity of the family unit by:

(A) (i) Providing family preservation services.

(ii) For purposes of this subdivision, “family preservation
services” means intensive services for families whose children,
without these services, would be subject to any of the following:

(I) Be at imminent risk of out-of-home placement.

(II) Remain in existing out-of-home placement for longer periods
of time.

(III) Be placed in a more restrictive out-of-home placement.

(B) Providing supportive services for those children within the
meaning of Sections 360, 361, and 364 when they are returned to
the family unit or when a minor will probably soon be within the
jurisdiction of the juvenile court pursuant to Section 301.

(C) Providing counseling and family support services designed
to eradicate the situation that necessitated intervention.

(2) The Legislature finds that maintaining abused and neglected
children in foster care grows increasingly costly each year, and
that adequate funding for family services that might enable these
children to remain in their homes is not as readily available as
funding for foster care placement.

(3) The Legislature further finds that other state bodies have
addressed this problem through various systems of flexible
reimbursement in child welfare programs that provide for more
intensive and appropriate services to prevent foster care placement
or significantly reduce the length of stay in foster care.

(b) It is the intent of the Legislature that family preservation
and support services in California conform to the federal definitions
contained in Section 431 of the Social Security Act as contained
in Public Law 103-66, the Omnibus Budget Reconciliation Act of
1987. The Legislature finds and declares that California’s existing
family preservation programs meet the intent of the federal
Promoting Safe and Stable Families program.

(c) (1) Services that may be provided under this program may
include, but are not limited to, counseling, mental health treatment
and substance abuse treatment services, including treatment at a
residential substance abuse treatment facility that accepts families,
parenting, respite, day treatment, transportation, homemaking, and
family support services. Each county that chooses to provide mental
health treatment and substance abuse treatment shall identify and
develop these services in consultation with county mental health
treatment and substance abuse treatment agencies. Additional
services may include those enumerated in Sections 16506 and
16507. The services to be provided pursuant to this section may
be determined by each participating county. Each county may
contract with individuals and organizations for services to be
provided pursuant to this section. Each county shall utilize available
private nonprofit resources in the county prior to developing new
county-operated resources when these private nonprofit resources
are of at least equal quality and costs as county-operated resources
and shall utilize available county resources of at least equal quality
and cost prior to new private nonprofit resources.

(2) Participating counties authorized by this subdivision shall
provide specific programs of direct services based on individual
family needs as reflected in the service plans to families of the
following:

(A) Children who are dependent children not taken from
physical custody of their parents or guardians pursuant to Section
364.

(B) Children who are dependent children removed from the
physical custody of their parents or guardian pursuant to Section
361.

(C) Children who it is determined will probably soon be within
the jurisdiction of the juvenile court pursuant to Section 301.

(D) Upon approval of the department, children who have been
adjudged wards of the court pursuant to Sections 601 and 602.

(E) Upon approval of the department, families of children
subject to Sections 726 and 727.

(F) Upon approval of the department, children who are
determined to require out-of-home placement pursuant to Section
7572.5 of the Government Code.

(3) The services shall only be provided to families whose
children will be placed in out-of-home care without the provision
of services or to children who can be returned to their families
with the provision of services.

(4) The services selected by a participating county shall be
reasonable and meritorious and shall demonstrate cost-effectiveness
and success at avoiding out-of-home placement, or reducing the
length of stay in out-of-home placement. A county shall not expend
more funds for services under this subdivision than that amount
which would be expended for placement in out-of-home care.

(5) The program in each county shall be deemed successful if
it meets the following standards:

(A) Enables families to resolve their own problems, effectively
utilize service systems, and advocate for their children in
educational and social agencies.

(B) Enhancing family functioning by building on family
strengths.

(C) At least 75 percent of the children receiving services remain
in their own home for six months after termination of services.

(D) During the first year after services are terminated:

(i) At least 60 percent of the children receiving services remain
at home one year after services are terminated.

(ii) The average length of stay in out-of-home care of children
selected to receive services who have already been removed from
their home and placed in out-of-home care is 50 percent less than
the average length of stay in out-of-home care of children who do
not receive program services.

(E) Two years after the termination of family preservation
services:

(i) The average length of out-of-home stay of children selected
to receive services under this section who, at the time of selection,
are in out-of-home care, is 50 percent less than the average length
of stay in out-of-home care for children in out-of-home care who
do not receive services pursuant to this section.

(ii) At least 60 percent of the children who were returned home
pursuant to this section remain at home.

(6) Funds used for services provided under this section shall
supplement, not supplant, child welfare services funds available
for services pursuant to Sections 16506 and 16507.

(7) Programs authorized after the original pilot projects shall
submit data to the department upon the department’s request.

(d) (1) A county welfare department social worker or probation
officer may, pursuant to an appropriate court order, return a
dependent minor or ward of the court removed from the home
pursuant to Section 361 to his or her home, with appropriate
interagency family preservation program services.

(2) The county probation department may, with the approval of
the State Department of Social Services, through an interagency
agreement with the county welfare department, refer cases to the
county welfare department for the direct provision of services
under this subdivision.

(e) Foster care funds shall remain within the administrative
authority of the county welfare department and shall be used only
for placement services or placement prevention services or county
welfare department administrative cost related to the interagency
family preservation program.

(f) To the extent permitted by federal law, any federal funds
provided for services to families and children may be utilized for
the purposes of this section.

(g) A county may establish family preservation programs that
serve one or more geographic areas of the county, subject to the
approval of the State Department of Social Services.

(1) All funds expended by a county for activities under this
section shall be expended by the county in a manner that will
maximize eligibility for federal financial participation.

(2) A county, subject to the approval of the State Department
of Social Services, may claim federal financial participation, if
allowable and available, as provided by the State Department of
Social Services in the federal Promoting Safe and Stable Families
program in accordance with the federal guidelines and regulations
for that county’s AFDC-FC expenditures pursuant to subdivision
(d) of Section 11450, for children subject to Sections 300, 301,
360, and 364, in advance, provided that the county conducts a
program of family reunification and family maintenance services
for families receiving these services pursuant to Sections 300, 301,
360, and 364, and as permitted by the department, children subject
to Sections 601, 602, 726, and 727 of this code, and Section 7572.5
of the Government Code.

(h) In order to maintain federal funding and meet federal
requirements, the State Department of Social Services and the
Office of Child Abuse Prevention shall provide administrative
oversight, monitoring, and consultation to ensure both of the
following:

(1) Each county includes in its county plan information that
details what services are to be funded under this section and who
will be served, and how the services are coordinated with the array
of services available in the county. In order to maintain federal
funding to meet federal requirements, the State Department of
Social Services shall review these plans and provide technical
assistance as needed, as provided in Section 10601.2. In order to
meet federal requirements, the Office of Child Abuse Prevention
shall require counties to submit annual reports, as part of the current
reporting process, on program services and children and families
served. The annual reporting process shall be developed jointly
by the department and county agencies for the purpose of meeting
federal reporting requirements.

(2) In order to maximize federal financial participation for the
federal Promoting Safe and Stable Families grant, funds expended
from this program are in compliance with data-reporting
requirements in order to meet federal nonsupplantation
requirements in accordance with Section 1357.32(f) of Title 45 of
the Code of Federal Regulations, and the 25 percent state match
requirement in accordance with Section 1357.32(d) of Title 45 of
the Code of Federal Regulations.

(i) Beginning in the 2011-12 fiscal year, and for each fiscal
year thereafter, funding and expenditures for programs and
activities under this section shall be made with moneys allocated
pursuant to Section 30025 of the Government Code.

begin delete SEC. 620. end delete
begin insert SEC. 630. end insert   

Section 16513 of the Welfare and Institutions Code,
as added by Chapter 1235 of the Statutes of 1978, is amended and
renumbered to read:

16513.2.  

Funding of this chapter is subject to the provisions
of Part 1.5 (commencing with Section 10100).

begin delete SEC. 621. end delete
begin insert SEC. 631. end insert   

Section 16517 of the Welfare and Institutions Code,
as added by Section 2 of Chapter 497 of the Statutes of 1992, is
amended and renumbered to read:

16517.5.  

(a) A social worker or probation officer acting as an
officer of the court shall not make an out-of-home placement of a
dependent or ward of the court pursuant to this chapter with any
of the following:

(1) A relative of the social worker or probation officer
responsible for the placement of the child.

(2) The spouse of a relative described in paragraph (1).

(b) A social worker or probation officer acting as an officer of
the court shall not receive compensation for the out-of-home
placement of a dependent or ward of the court other than the
compensation received as an employee of the county or the state.

begin delete SEC. 622. end delete
begin insert SEC. 632. end insert   

Section 16524.7 of the Welfare and Institutions
Code is amended to read:

16524.7.  

(a) (1) There is hereby established the Commercially
Sexually Exploited Children Program. This program shall be
administered by the State Department of Social Services.

(2) The department, in consultation with the County Welfare
Directors Association of California, shall develop an allocation
methodology to distribute funding for the program. Funds allocated
pursuant to this section shall be utilized to cover expenditures
related to the costs of implementing the program, prevention and
intervention services, and training related to children who are
victims of commercial sexual exploitation.

(3) (A) Funds shall be provided to counties that elect to
participate in the program for the provision of training to county
children’s services workers to identify, intervene, and provide case
management services to children who are victims of commercial
sexual exploitation and trafficking, and to foster caregivers for the
prevention and identification of potential victims.

(B) The department shall contract to provide training for county
workers and foster caregivers. Training shall be selected and
contracted for in consultation with the County Welfare Directors
Association, county children’s services representatives, and other
stakeholders. The department shall consult and collaborate with
the California Community Colleges Chancellor’s Office to provide
training for foster parents of licensed foster family homes.

(4) Funds provided to the counties electing to participate in the
program shall be used for prevention activities, intervention
activities, and services to children who are victims, or at risk of
becoming victims, of commercial sexual exploitation. These
activities and services may include, but are not limited to, all of
the following:

(A) Training foster children to help recognize and help avoid
commercial sexual exploitation. Counties may target training
activities to foster children who are at higher risk of sexual
exploitation.

(B) Engaging survivors of commercial sexual exploitation to
do all of the following:

(i) Provide support to county staff who serve children who are
victims of commercial sexual exploitation.

(ii)  begin delete For end delete begin insert Participate in end insert activities that may include training and
technical assistance.

(iii)  begin delete To serve end delete begin insert Serve end insert as advocates for and perform outreach and
support to children who are victims of commercial sexual
exploitation.

(C) Consulting and coordinating with homeless youth shelters
and other service providers who work with children who are
disproportionately at risk of, or involved in, commercial sexual
exploitation, including, but not limited to, lesbian, gay, bisexual,
and transgender youth organizations, regarding outreach and
support to children who are victims of commercial sexual
exploitation.

(D) Hiring county staff trained and specialized to work with
children who are victims of commercial sexual exploitation to
support victims and their caregivers, and to provide case
management to support interagency and cross-departmental
response.

(E) Providing supplemental foster care rates for placement of
child victims of commercial sexual exploitation adjudged to be
within the definition of Section 300 to foster homes, relatives,
foster family agency certified homes, or other specialized
placements for the increased care and supervision needs of the
victim in accordance with Section 11460.

(b) Funds allocated for the program shall not supplant funds for
existing programs.

(c) (1) In order to ensure timely access to services to which
commercially sexually exploited children are entitled as dependents
in foster care, in participating counties, county agency
representatives from mental health, probation, public health, and
substance abuse disorders shall participate in the case planning
and assist in linking commercially sexually exploited children to
services that serve children who are in the child welfare system
and that are identified in the child’s case plan and may include
other stakeholders as determined by the county.

(2) The entities described in paragraph (1) shall provide input
to the child welfare services agency regarding the services and
supports needed for these children to support treatment needs and
aid in their recovery and may assist in linking these children to
services that are consistent with their county plans submitted to
the department pursuant to subdivision (d).

(d) (1) A county electing to receive funding from the
Commercially Sexually Exploited Children Program pursuant to
this chapter shall submit a plan describing how the county intends
to utilize the funds allocated pursuant to paragraph (4) of
subdivision (a).

(2) The county shall submit a plan to the department pursuant
to a process developed by the department, in consultation with the
County Welfare Directors Association. The plan shall include
documentation indicating the county’s collaboration with county
partner agencies and children-focused entities, which shall include
the formation of a multidisciplinary team to serve children pursuant
to this chapter.

A multidisciplinary team serving a child pursuant to this chapter
shall include, but is not limited to, appropriate staff from the county
child welfare, probation, mental health, substance abuse disorder,
and public health departments. Staff from a local provider of
services to this population, local education agencies, and local law
enforcement, and survivors of commercial sexual exploitation and
trafficking may be included on the team.

begin delete SEC. 623. end delete
begin insert SEC. 633. end insert   

Section 16524.8 of the Welfare and Institutions
Code is amended to read:

16524.8.  

(a) Each county electing to receive funds from the
Commercially Sexually Exploited Children Program pursuant to
this chapter shall develop an interagency protocol to be utilized in
serving sexually exploited children. The county protocol shall be
developed by a team led by a representative of the county human
services department and shall include representatives from each
of the following agencies:

(1) The county probation department.

(2) The county mental health department.

(3) The county public health department.

(4) The juvenile court in the county.

The team may include, but shall not be limited to, representatives
from local education agencies, local law enforcement, survivors
of sexual exploitation and trafficking, and other providers as
necessary.

(b) At a minimum, the interagency protocol shall address the
provision of services to children who have been sexually exploited
and are within the definition of Section 300, including, but not
limited to, the use of a multidisciplinary team approach to provide
coordinated case management, service planning, and services to
these children.

begin delete SEC. 624. end delete
begin insert SEC. 634. end insert   

Section 16524.9 of the Welfare and Institutions
Code is amended to read:

16524.9.  

The State Department of Social Services, in
consultation with the County Welfare Directors Association, shall
ensure that the Child Welfare Services/Case Management System
is capable of collecting data concerning children who are
commercially sexually exploited, including children who are
referred to the child abuse hotline and children currently served
by county child welfare and probation departments who are
subsequently identified as victims of commercial sexual
exploitation.

(a) The department shall disseminate any necessary instructions
on data entry to the county child welfare and probation department
staff.

(b) The department shall implement this section no later than
June 1, 2015.

begin delete SEC. 625. end delete
begin insert SEC. 635. end insert   

The heading of Chapter 7 (commencing with Section
16997.1) of Part 4.7 of Division 9 of the Welfare and Institutions
Code is repealed.

begin delete SEC. 626. end delete
begin insert SEC. 636. end insert   

The heading of Chapter 6 (commencing with Section
17500) of Part 5 of Division 9 of the Welfare and Institutions Code,
as added by Section 1 of Chapter 90 of the Statutes of 1988, is
amended and renumbered to read:

 

Chapter  5.5. Unemployed or Displaced Workers

 

begin delete SEC. 627. end delete
begin insert SEC. 637. end insert   

Section 17603 of the Welfare and Institutions Code
is amended to read:

17603.  

(a) This subdivision only applies until the end of the
2012-13 fiscal year. On or before the 27th day of each month, the
Controller shall allocate to the local health and welfare trust fund
health accounts the amounts deposited and remaining unexpended
and unreserved on the 15th day of the month in the Health
Subaccount of the Sales Tax Account of the Local Revenue Fund,
in accordance with paragraphs (1) and (2):

(1) For the 1991-92 fiscal year, allocations shall be made in
accordance with the following schedule:

 

Jurisdiction	Allocation Percentage
Alameda	4.5046
Alpine	0.0137
Amador	0.1512
Butte	0.8131
Calaveras	0.1367
Colusa	0.1195
Contra Costa	2.2386
Del Norte	0.1340
El Dorado	0.5228
Fresno	2.3531
Glenn	0.1391
Humboldt	0.8929
Imperial	0.8237
Inyo	0.1869
Kern	1.6362
Kings	0.4084
Lake	0.1752
Lassen	0.1525
Los Angeles	37.2606
Madera	0.3656
Marin	1.0785
Mariposa	0.0815
Mendocino	0.2586
Merced	0.4094
Modoc	0.0923
Mono	0.1342
Monterey	0.8975
Napa	0.4466
Nevada	0.2734
Orange	5.4304
Placer	0.2806
Plumas	0.1145
Riverside	2.7867
Sacramento	2.7497
San Benito	0.1701
San Bernardino	2.4709
San Diego	4.7771
San Francisco	7.1450
San Joaquin	1.0810
San Luis Obispo	0.4811
San Mateo	1.5937
Santa Barbara	0.9418
Santa Clara	3.6238
Santa Cruz	0.6714
Shasta	0.6732
Sierra	0.0340
Siskiyou	0.2246
Solano	0.9377
Sonoma	1.6687
Stanislaus	1.0509
Sutter	0.4460
Tehama	0.2986
Trinity	0.1388
Tulare	0.7485
Tuolumne	0.2357
Ventura	1.3658
Yolo	0.3522
Yuba	0.3076
Berkeley	0.0692
Long Beach	0.2918
Pasadena	0.1385

 

 

(2) For the 1992-93 fiscal year and fiscal years thereafter until
the commencement of the 2013-14 fiscal year, the allocations to
each county and city and county shall equal the amounts received
in the prior fiscal year by each county, city, and city and county
from the Sales Tax Account and the Sales Tax Growth Account
of the Local Revenue Fund into the health and welfare trust fund.

(b) (1) For the 2013-14 fiscal year, on the 27th day of each
month, the Controller shall allocate, in the same proportion as
funds in paragraph (2) of subdivision (a) were allocated, to each
county’s and city and county’s local health and welfare trust fund
health accounts, the amounts deposited and remaining unexpended
and unreserved on the 15th day of the month in the Health
Subaccount of the Sales Tax Account of the Local Revenue Fund.

(2) (A) Beginning January 2014 and for the remainder of the
2013-14 fiscal year, on or before the 27th of each month, the
Controller shall transfer to the Family Support Subaccount from
the Health Subaccount amounts determined pursuant to a schedule
prepared by the Department of Finance in consultation with the
California State Association of Counties. Cumulatively, no more
than three hundred million dollars ($300,000,000) shall be
transferred.

(B) Every month, after the transfers in subparagraph (A) have
occurred, the remainder shall be allocated to the counties and cities
and counties in the same proportions as funds in paragraph (2) of
subdivision (a) were allocated.

(C) For counties participating in the County Medical Services
Program, transfers from each county shall not be greater than the
monthly amount the county would otherwise pay pursuant to
paragraph (2) of subdivision (j) of Section 16809 for participation
in the County Medical Services Program. Any difference between
the amount paid by these counties and the proportional share of
the three hundred million dollars ($300,000,000) calculated as
payable by these counties and the County Medical Services
Program shall be paid from the funds available for allocation to
the County Medical Services Program in accordance with the
Welfare and Institutions Code.

(3) For the 2013-14 fiscal year, the Controller, using the same
timing and criteria used in paragraph (1), shall allocate to each
city, not to include a city and county, funds that shall equal the
amounts received in the prior fiscal year by each city from the
Sales Tax Account and the Sales Tax Growth Account of the Local
Revenue Fund into the health and welfare trust fund.

(c) (1) For the 2014-15 fiscal year and for every fiscal year
thereafter, the Department of Finance, in consultation with the
California State Association of Counties, shall calculate the amount
each county or city and county shall contribute to the Family
Support Subaccount in accordance with Section 17600.50.

(2) On or before the 27th of each month, the Controller shall
transfer, based on a schedule prepared by the Department of
Finance in consultation with the California State Association of
Counties, from the funds deposited and remaining unexpended
and unreserved on the 15th day of the month in the Health
Subaccount of the Sales Tax Account of the Local Revenue Fund
to the Family Support Subaccount, funds that equal, over the course
of the year, the amount determined in paragraph (1) pursuant to a
schedule provided by the Department of Finance.

(3) After the transfer in paragraph (2) has occurred, the
Controller shall allocate on or before the 27th of each month to
health account in the local health and welfare trust fund of every
county and city and county from a schedule prepared by the
Department of Finance, in consultation with the California State
Association of Counties, any funds remaining in the Health
Account from the funds deposited and remaining unexpended and
unreserved on the 15th day of the month in the Health Subaccount
of the Sales Tax Account of the Local Revenue Fund. The schedule
shall be prepared as the allocations would have been distributed
pursuant to paragraph (2) of subdivision (a).

(4) For the 2014-15 fiscal year and for every fiscal year
thereafter, the Controller, using the same timing and criteria as
had been used in paragraph (2) of subdivision (a), shall allocate
to each city, not to include a city and county, funds that equal the
amounts received in the prior fiscal year by each city from the
Sales Tax Account and the Sales Tax Growth Account of the Local
Revenue Fund into the health and welfare trust fund.

begin delete SEC. 628. end delete
begin insert SEC. 638. end insert   

The heading of Chapter 4.5 (commencing with
Section 18260) of Part 6 of Division 9 of the Welfare and
Institutions Code, as added by Chapter 75 of the Statutes of 2006,
is amended and renumbered to read:

 

Chapter  4.45. Child Welfare Waiver Demonstration
Project

 

begin delete SEC. 629. end delete
begin insert SEC. 639. end insert   

Section 18901.2 of the Welfare and Institutions
Code is amended to read:

18901.2.  

(a) There is hereby created the State Utility
Assistance Subsidy (SUAS), a state-funded energy assistance
program that shall provide energy assistance benefits to eligible
CalFresh households so that the households may receive a standard
utility allowance to be used to help meet their energy costs, receive
information about energy efficiency, and so that some households
may experience an increase in federal Supplemental Nutrition
Assistance Program benefits, as well as benefit from paperwork
reduction.

(b) To the extent required by federal law, the Department of
Community Services and Development shall delegate authority to
the State Department of Social Services to design, implement, and
maintain SUAS as a program created exclusively for purposes of
this section, similar to the federal Low-Income Home Energy
Assistance Program (LIHEAP) (42 U.S.C. Sec. 8621 et seq.).

(c) In designing, implementing, and maintaining the SUAS
program, the State Department of Social Services shall do all of
the following:

(1) Provide households that do not currently qualify for, nor
receive, a standard utility allowance, with a SUAS benefit in an
amount and frequency sufficient to meet federal requirements
specified in Section 2014(e)(6)(C)(iv) of Title 7 of the United
States Code if the household meets either of the following
requirements:

(A) The household would become eligible for CalFresh benefits
if the standard utility allowance was provided.

(B) The household would receive increased benefits if the
standard utility allowance was provided.

(2) Provide the SUAS benefit without requiring the applicant
or recipient to provide additional paperwork or verification.

(3) Deliver the SUAS benefit using the Electronic Benefit
Transfer (EBT) system.

(4) Notwithstanding any other law, notification of a recipient’s
impending EBT dormant account status shall not be required when
the remaining balance in a recipient’s account at the time the
account becomes inactive is equal to or less than the value of one
year of SUAS benefits.

(5) Ensure that receipt of the SUAS benefit pursuant to this
section does not adversely affect a CalFresh recipient household’s
eligibility, reduce a household’s CalFresh benefits, or disqualify
the applicant or recipient of CalFresh benefits from receiving other
public benefits, including other utility benefits, for which it may
qualify.

(d) (1) To the extent permitted by federal law, a CalFresh
household that receives SUAS benefits in the month of application
for new cases or in the previous 12 months for existing cases is
entitled to use the full standard utility allowance for the purposes
of calculating CalFresh benefits. A CalFresh household shall be
entitled to use the full standard utility allowance regardless of
whether the SUAS benefit actually is expended by the household.

(2) If use of the full standard utility allowance, instead of the
homeless shelter deduction, results in a lower amount of CalFresh
benefits for a homeless household, the homeless household shall
be entitled to use the homeless shelter deduction instead of the full
standard utility allowance.

(e) This section shall not be implemented until funds are
appropriated for that purpose by the Legislature in the annual
Budget Act or related legislation.

(f) This section shall become operative on July 1, 2014.

begin delete SEC. 630. end delete
begin insert SEC. 640. end insert   

Section 18901.11 of the Welfare and Institutions
Code is amended to read:

18901.11.  

(a) For the purposes of Section 273.5(b)(11)(ii) of
Title 7 of the Code of Federal Regulations, an educational program
that could be a component of a CalFresh E&T program described
in Section 18926.5, as identified by the department, shall be
considered an employment and training program under Section
273.7 of Title 7 of the Code of Federal Regulations, unless
prohibited by federal law.

(b) The department shall, in consultation with representatives
of the office of the Chancellor of the California Community
Colleges, offices of the Chancellor of the California State
University, University of California Chancellors’ offices, the
California Workforce Investment Board, county human services
agencies, and advocates for students and clients, establish a
protocol to identify and verify all potential exemptions to the
eligibility rule described in Section 273.5(a) of Title 7 of the Code
of Federal Regulations, and to identify and verify participation in
educational programs, including, but not limited to, self-initiated
placements, that would exempt a student from the eligibility rule
described in Section 273.5(a) of Title 7 of the Code of Federal
Regulations. To the extent possible, this consultation shall take
place through existing workgroups convened by the department.

(c) If the United States Department of Agriculture requires
federal approval of the exemption designation established pursuant
to subdivision (a) and the protocol established pursuant to
subdivision (b), the department shall seek and obtain that approval
before publishing the guidance or regulation required by
subdivision (e).

(d) (1) This section does not require a county human services
agency to offer a particular component, support services, or
workers’ compensation to a student found eligible for an exemption
pursuant to this section.

(2) This section does not restrict or require the use of federal
funds for the financing of CalFresh E&T programs.

(3) This section does not require a college or university to
provide a student with information necessary to verify eligibility
for CalFresh.

(e) Notwithstanding the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code), the department shall implement this section by all-county
letters or similar instructions beginning no later than October 1,
2015, until regulations are adopted. The department shall adopt
regulations implementing this section on or before October 1,
2017.

begin delete SEC. 631. end delete
begin insert SEC. 641. end insert   

Section 25 of Chapter 279 of the Statutes of 2005
is amended to read:

Sec. 25.  

Any section of any act, except Senate Bill 1108,
enacted by the Legislature during the 2005 calendar year that takes
effect on or before January 1, 2006, and that amends, amends and
renumbers, adds, repeals and adds, or repeals any one or more of
the sections affected by this act, shall prevail over this act, whether
this act is enacted prior to, or subsequent to, the enactment of this
act. The repeal, or repeal and addition, of any article, chapter, part,
title, or division of any code by this act shall not become operative
if any section of any other act that is enacted by the Legislature
during the 2005 calendar year and takes effect on or before January
1, 2006, amends, amends and renumbers, adds, repeals and adds,
or repeals any section contained in that article, chapter, part, title,
or division.

begin delete SEC. 632. end delete
begin insert SEC. 642. end insert   

Section 1 of Chapter 15 of the Statutes of 2014 is
amended to read:

Section 1.  

It is the intent of the Legislature that the
Administrative Director of the Division of Workers’ Compensation
collect data pursuant to subdivision (a) of Section 3702.2 of the
Labor Code for the purpose of determining whether the extended
statute of limitations established by this act provides an adequate
timeline for the families of fallen firefighters and peace officers
to commence proceedings for the collection of death benefits as
provided for in this act, such that the Legislature and the Governor,
when considering any extension of the date of repeal of Section
5406.7 of the Labor Code, be informed of the facts surrounding
the mortality rate of public safety officers who succumb to these
job-related diseases.

begin delete SEC. 633. end delete
begin insert SEC. 643. end insert   

Section 1 of Chapter 243 of the Statutes of 2014 is
amended to read:

Section 1.  

The California Law Revision Commission shall,
within existing resources, conduct a study of the standards for
recognition of a tribal court or a foreign court judgment, under the
Tribal Court Civil Money Judgment Act (Title 11.5 (commencing
with Section 1730) of Part 3 of the Code of Civil Procedure) and
the Uniform Foreign-Country Money Judgments Recognition Act
(Chapter 2 (commencing with Section 1713) of Title 11 of Part 3
of the Code of Civil Procedure). On or before January 1, 2017, the
California Law Revision Commission shall report its findings,
along with any recommendations for improvement of those
standards, to the Legislature and the Governor.

begin delete SEC. 634. end delete
begin insert SEC. 644. end insert   

Any section of any act enacted by the Legislature
during the 2015 calendar year that takes effect on or before January
1, 2016, and that amends, amends and renumbers, adds, repeals
and adds, or repeals a section that is amended, amended and
renumbered, added, repealed and added, or repealed by this act,
shall prevail over this act, whether that act is enacted prior to, or
subsequent to, the enactment of this act. The repeal, or repeal and
addition, of any article, chapter, part, title, or division of any code
by this act shall not become operative if any section of any other
act that is enacted by the Legislature during the 2015 calendar year
and takes effect on or before January 1, 2016, amends, amends
and renumbers, adds, repeals and adds, or repeals any section
contained in that article, chapter, part, title, or division.