BILL NUMBER: AB 107	INTRODUCED
	BILL TEXT


INTRODUCED BY  Assembly Member Ducheny


   An act making appropriations for the support of the government of
the State of California and for several public purposes in accordance
with the provisions of Section 12 of Article IV of the Constitution
of the State of California, and declaring the urgency thereof, to
take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 107, as introduced, Ducheny.  1997-98 Budget.
   This bill would make appropriations for support of state
government for the 1997-98 fiscal year.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote:  2/3.  Appropriation:  yes.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:




       SECTION 1.00.  This act shall be known and may be cited as
the  "Budget Act of 1997."

   SEC. 1.50.  (a) In accordance with Section 13338 of the
Government  Code, as added by  Chapter 1284, Statutes of 1978,
and as amended by Chapter 1286, Statutes  of 1984, it is the  intent
of the Legislature that this act utilize a coding scheme compatible
with the Governor's  Budget and the records of the State Controller,
and provide for the  appropriation of federal funds  received by the
state and deposited in the State Treasury.

   (b) Essentially, the format and style are as follows:

   (1) Appropriation item numbers have a code which is common to
all  the state's fiscal systems.  The meaning of this common coded
item number is as follows:

   2720--Organization Code (this code represents the California
Highway  Patrol)

   001--Reference Code (first appropriation for a particular fund for

support of each department)

   0044--Fund Code (Motor Vehicle Account, State Transportation
Fund)



   (2) Appropriation items are organized in organization code order
as  reflected in the  Governor's Budget.

   (3) All the appropriation items, reappropriation items, and
reversion  items, if any, for each  department or entity are adjacent
to
one another.

   (4) Federal funds received by the state and deposited in the State

Treasury are appropriated in  separate items.

   (c) The Department of Finance may authorize revisions to the
codes  used in this act in order  to provide compatibility between
the
codes used in this act and those used  in the Governor's  Budget and
in the records of the State Controller.



   (d) Notwithstanding any other provision of this act, the
Department of  Finance may revise the  schedule of any appropriation
made in this act where the revision is of a  technical nature and is
consistent with legislative intent. These revisions may include, but
shall not  be limited to, the  substitution of category for program
or
program for category limitations,  the proper  categorization of
allocated administration costs and cost recoveries, the  distribution
of
any  unallocated amounts within an appropriation and the adjustment
of  schedules to facilitate  departmental accounting operations,
including the elimination of categories  providing for amounts
payable from other items or other appropriations and the distribution

of  unscheduled amounts to  programs or categories. These revisions
shall include a certification that the  revisions comply with  the
intent
and limitation of expenditures as appropriated by the Legislature.


   (e) Notwithstanding any other provision of this act, when the
Department of Finance,  pursuant to subdivision (d), approves the
schedule or revision of any  appropriation relating to the
elimination
of amounts payable, the language authorizing the transfer shall  also

be eliminated.

   SEC. 2.00.  (a) The following sums of money and those
appropriated  by any other sections of  this act, or so much thereof
as
may be necessary unless otherwise provided  herein, are hereby
appropriated for the use and support of the State of California for
the
1997-98 fiscal year  beginning July 1, 1997, and ending June 30,
1998. All of these  appropriations, unless otherwise  provided
herein,
shall be paid out of the General Fund in the State  Treasury.

   (b) Appropriations and reappropriations for capital outlay, unless

otherwise provided herein,  shall be available for expenditure during

the 1997-98, 1998-99, and  1999-2000 fiscal years,  except that
appropriations and reappropriations for studies, preliminary  plans,
working drawings,  or minor capital outlay, except as provided
herein, shall be available for  expenditure only during  the 1997-98
fiscal year. In addition, the balance of every appropriation  made in

this act which  contains funding for construction that has not been
allocated, through fund  transfer or approval to  proceed to bid, by
the Department of Finance on or before June 30, 1998,  except as
provided  herein, shall revert as of that date to the fund from which

the appropriation  was made.

   (c) Whenever by constitutional or statutory provision the
revenues or  receipts of any  institution, department, board, bureau,

commission, officer, employee, or  other agency, or any  moneys in
any special fund created by law therefor, are to be used for
salaries,
support or any  proper purpose, expenditures shall be made
therefrom for any such  purposes, to the extent only of  the amount
therein appropriated, unless otherwise stated herein, or  authorized
pursuant to Section  11006 of the Government Code.

   (d) Appropriations for purposes not otherwise provided for
herein  which have been heretofore  made by any existing
constitutional or statutory provision shall continue to  be governed
thereby.



LEGISLATIVE/JUDICIAL/EXECUTIVE

Legislative



0110-001-0001--For support of Senate  . . . 64,602,000

Schedule:

(a) 101001-Salaries of Senators  . . . 3,934,000

(b) 317295-Mileage  . . . 5,000

(c) 317292-Expenses  . . . 1,012,000

(d) 500004-Operating Expenses  . . . 59,021,000

(e) 317296-Automotive Expenses  . . . 630,000

Provisions:

1. The funds appropriated in Schedule (d) are for operating expenses
of the  Senate, including  personal services for officers, clerks,
and all
other employees, and  legislative committees thereof  composed in
whole or in part of Members of the Senate, and for support of  joint
expenses of the  Legislature, to be transferred by the Controller to
the Senate Operating  Fund.

2. The funds appropriated in Schedule (e) are for operating expenses
of the  Senate relating to the  purchase, maintenance, repair,
insurance, and other costs of operating  automobiles for the use of
Members of the Senate, to be transferred by the Controller to the
Senate  Operating Fund.

3. The funds appropriated in Schedules (a), (b), (c), and (e) may be
transferred to or from the  Senate Operating Fund.

0120-011-0001--For support of Assembly  . . . 87,760,000

Schedule:

(a) 101001-Salaries of Assemblymembers  . . . 7,599,000

(b) 317295-Mileage  . . . 8,000

(c) 317292-Expenses  . . . 2,024,000

(d) 500004-Operating Expenses  . . . 77,451,000

(e) 317296-Automotive Expenses  . . . 678,000

Provisions:

1. The funds appropriated in Schedule (d) are for operating expenses
of the  Assembly, including  personal services for officers, clerks,
and
all other employees, and  legislative committees thereof  composed in

whole or in part of Members of the Assembly, and for support  of
joint expenses of  the Legislature, to be transferred by the
Controller
to the Assembly  Operating Fund.

2. The funds appropriated in Schedule (e) are for operating expenses
of the  Assembly relating to  the lease, maintenance, repair,
insurance, and other costs of operating  automobiles for the use of
Members of the Assembly, to be transferred by the Controller to the
Assembly Operating Fund.

3. The funds appropriated by Schedules (a), (b), (c), and (e) may be
transferred to or from the  Assembly Operating Fund.

0130-021-0001--For support of Office of the Legislative Analyst  . .
.
0

Schedule:

(a) Expenses of the Office of the Legislative Analyst  . . .
4,240,000


(b) Transferred from Item 0110-001-0001  . . . -2,120,000

(c) Transferred from Item 0120-011-0001  . . . -2,120,000

Provisions:

1. The funds appropriated in Schedule (a) are for the expenses of the

Office  of the Legislative  Analyst and of the Joint Legislative
Budget
Committee for any charges,  expenses, or claims either  may incur,
available without regard to fiscal years, to be paid on
certification of
the Chairperson  of the Joint Legislative Budget Committee.

2. Funds identified in Schedules (b) and (c) may be transferred from
the  Senate Operating Fund,  by the Senate Committee on Rules, and
the Assembly Operating Fund, by  the Assembly  Committee on
Rules.

0160-001-0001--For support of Legislative Counsel Bureau  . . .
56,038,000

Schedule:

(a) Support  . . . 56,169,000

(b) Reimbursements  . . . -131,000

                              Judicial



0250-001-0001--For support of Judiciary     . . . 196,578,000

Schedule:

(a) 10-Supreme Court  . . . 25,656,000

(b) 20-Courts of Appeal  . . . 126,084,000

(c) 30-Judicial Council  . . . 84,989,000

(d) Reimbursements  . . . -38,325,000

(e) Amount payable from the Motor Vehicle Account, State
Transportation  Fund (Item  0250-001-0044)  . . . -125,000

(f) Amount payable from the Court Interpreters Account (Item
0250-001-0327)  . . . -248,000

(g) Amount payable from the Federal Trust Fund (Item
0250-001-0890)  . .  . -1,453,000

Provisions:

1. Notwithstanding Section 6.50 of this act, the funds appropriated
or  scheduled in this item may  be allocated or reallocated among
categories by order of the Judicial  Council; however, any
allocation
or reallocation by the Judicial  Council shall be reported to the
Director of Finance.

0250-001-0044--For support of Judiciary, for payment to Item
0250-001-0001, payable from the  Motor Vehicle Account, State
Transportation Fund  . . . 125,000

0250-001-0327--For support of Judiciary, for payment to Item
0250-001-0001, payable from the  Court Interpreters Account  . . .
248,000

0250-001-0890--For support of Judiciary, for payment to Item
0250-001-0001, payable from the  Federal Trust Fund  . . . 1,453,000


0280-001-0001--For support of the Commission on Judicial
Performance,  Program 10  . . .  3,010,000

0390-001-0001--For support, for transfer by the Controller to the
Judges'  Retirement Fund, for  Supreme Court and Appellate Court
Justices  . . . 1,250,000

Provisions:

1. Upon order of the Department of Finance, the Controller shall
transfer  such funds as are  necessary between Item 0390-001-0001
and Item 0390-101-0001.

0390-101-0001--For local assistance, for transfer by the State
Controller to  the Judges'  Retirement Fund for Superior Court and
Municipal Court Judges  . . .  44,001,000

Provisions:

1. Upon order of the Department of Finance, the Controller shall
transfer  such funds as are  necessary between Item 0390-001-0001
and Item 0390-101-0001.

0450-101-0932--For local assistance, State Trial Court Funding,
payable  from Trial Court Trust  Fund  . . . 1,661,126,000

Schedule:

(a) 10-Support for operation of the Trial Courts  . . . 1,549,250,000



(b) 25-Compensation of Superior Court Judges  . . . 92,278,000

(c) 35-Assigned Judges  . . . 19,598,000

Provisions:

1. The amount appropriated in Schedule (a) shall be allocated and
reallocated by the Trial Court  Budget Commission, as approved by
the Judicial Council.

2. Notwithstanding Section 6.50 of this act, the funds appropriated
or  scheduled in this item may  be allocated or reallocated among
categories by the Trial Court Budget  Commission as approved  by
the Judicial Council; however, any allocation or reallocation by the
Judicial Council shall be  reported within 30 days to the Director of

Finance and the Joint Legislative  Budget Committee.

3. The Judicial Council shall establish performance criteria as
prescribed by  Section 68502.5 of  the Government Code and the
California Rules of Court. The Judicial  Council shall approve the
budget and allocation schedule upon recommendation of the Trial
Court  Budget Commission  based on these criteria.

4. The amount appropriated in Schedule (c) shall be made available
for all  judicial assignments.  Schedule (c) expenditures for
necessary
chamber staff may not exceed the  staffing level that is  necessary
to
support the equivalent of three judicial officers sitting on
assignments at the appellate  court level.

5. The funds appropriated in Schedule (b) shall be made available for

the  payment of workers'  compensation claims for trial court judges.





6. The funds appropriated in Schedule (a) shall be made available for

new  judge orientation  programs pursuant to policies approved by
the Judicial Council. Payments  made by the Judicial  Council for
that
purpose shall be reimbursed from this item.

0450-111-0001--For local assistance, State Trial Court Funding, for
transfer to the Trial Court  Trust Fund  . . . 236,882,000

                              Executive



0500-001-0001--For support of Governor and of Governor's office


4,861,000

Schedule:

(a) Support  . . . 4,786,000

(b)Governor's Residence (Support)  . . . 35,000

(c) Special Contingent Expenses  . . . 40,000

Provisions:

The funds appropriated in Schedules (b) and (c) of this item are
exempt  from the provisions of  Sections 925.6, 12410, and 13320 of
the Government Code.

0505-001-0001--For support of the Department of Information
Technology  . . . 5,806,000

Schedule:

(a) Support  . . . 6,556,000

(b) Reimbursements  . . . -750,000

0510-001-0001--For support of Secretary of State and Consumer
Services   . . . 732,000

Schedule:

(a) Support  . . . 1,224,000

(b) Reimbursements  . . . -492,000

0520-001-0044--For support of Secretary for Business,
Transportation and  Housing, payable  from the Motor Vehicle
Account, State Transportation Fund  . . . 880,000

Schedule:

(a) 10-Administration of Business, Transportation and Housing
Agency  . .  . 1,906,000

(b) 30-Agency Audits Office  . . . 301,000

(c) Reimbursements  . . . -1,327,000

0530-001-0001--For support of Secretary for Health and Welfare  . .
.  1,298,000

Schedule:

(a) 10-Secretary for Health and Welfare  . . . 2,267,000

(b) Reimbursements  . . . -969,000

0540-001-0001--For support of Secretary for Resources  . . .
1,889,000

Schedule:

(a) 10-Administration of Resources Agency  . . . 3,355,000

(b) Reimbursements  . . . -472,000

(c) Amount payable from the California Environmental License Plate
Fund  (Item 0540-001-0140)   . . . -792,000

(d) Amount payable from the Environmental Enhancement and
Mitigation  Demonstration  Program Fund (Item 0540-001-0183)  . .
. -117,000

(f) Amount payable from the Federal Trust Fund (Item
0540-001-0890)  . .  . -85,000

0540-001-0140--For support of Secretary for Resources, for
payment to  Item 0540-001-0001,  payable from the California
Environmental License Plate Fund  . . . 792,000

  0540-001-0183--For support of Secretary for Resources, for
payment to  Item 0540-001-0001,  payable from the Environmental
Enhancement and Mitigation  Demonstration Program Fund  . . .
117,000

0540-001-0890--For support of Secretary for Resources, for
payment to  Item 0540-001-0001,  payable from the Federal Trust
Fund  . . . 85,000

0540-101-0001--For local assistance, Secretary for Resources,
payable  from the General Fund  . .  . 3,300,000

Provisions:

1. The funds appropriated in this item are for the Coastal County and

City  Offshore Energy  Assistance Program as required by Chapter
977, Statutes of 1996.

0540-401--Notwithstanding Section 78531 of the Water Code, the
funds  identified in that section  shall be allocated by the
Secretary for
Resources directly to those entities  who are complying with  the
provisions of Section 78531(c)(1) and (2).

0550-001-0001--For support of the Secretary for the Youth and
Adult  Correctional Agency  . . .  1,082,000

Schedule:

(a) 10-Secretary for the Youth and Adult Correctional Agency  . . .
1,339,000

(b) Reimbursements  . . . -257,000

0555-001-0044--For support of Secretary for Environmental
Protection,  payable from the Motor  Vehicle Account, State
Transportation Fund  . . . 555,000

Schedule:

(a) 10-Environmental Protection Programs  . . . 2,345,000

(b) Reimbursements  . . . -1,532,000

(c) Amount payable from the California Used Oil Recycling Fund
(Item  0555-001-0100)  . . .  -23,000

(d) Amount payable from the Integrated Waste Management
Account,  Integrated Waste  Management Fund (Item
0555-001-0387)  . . . -235,000

Provisions:

1. Notwithstanding subdivisions (b) and (c) of Section 48653 of the
Public  Resources Code, funds  appropriated by this item shall be
available for purposes of administration.

0555-001-0100--For support of Secretary for Environmental
Protection,  for payment to Item  0555-001-0044, payable from the
California Used Oil Recycling Fund  . . .  23,000

0555-001-0387--For support of Secretary for Environmental
Protection,  for payment to Item  0555-001-0044, payable from the
Integrated Waste Management Account,  Integrated Waste
Management Fund   . . . 235,000

0558-001-0001--For support of Secretary of Child Development and
Education  . . . 1,174,000

Schedule:

(a) Secretary for Child Development and Education  . . . 1,274,000



(b) Reimbursements  . . . -100,000

Provisions:

1. The amount appropriated by this item is intended for support of
the  Child Development and  Education Agency. The appropriation is
an estimate of the funding needs  from January 1, 1998, to  June 30,
1998, inclusive. Legislation establishing the agency is currently
pending and, if enacted,  would be effective January 1, 1998. In the
event that legislation creating  the agency is not  effective on or
before January 1, 1998, the unexpended balance of the  funds
appropriated by this  item shall be available for expenditure
pursuant
to Item 0650-011-0001, as  authorized by the  Director of Finance.



0558-011-0890--For support of Secretary of Child Development and
Education, for support of  the California Commission on Improving
Life Through Service  . . .  720,000

Provisions:

1. The amount appropriated by this item is intended for support of
the  Commission on Improving  Life Through Service. The
appropriation is an estimate of the funding  needs from January 1,
1998, to June 30, 1998, inclusive. Legislation establishing the
agency
is  currently pending and, if  enacted, would be effective January 1,

1998. In the event that legislation  creating the agency is  not
effective on or before January 1, 1998 or the funds are needed prior
to  January 1, 1998, the  Director of Finance is authorized to
transfer
expenditure authority from  this item to Item  0650-011-0890.

0558-101-0890--For local assistance, for the California Commission
on  Improving Life Through  Service  . . . 10,175,000

Provisions:

1. The amount appropriated by this item is intended for local
assistance for  the Commission on  Improving Life Through Service.
The appropriation is an estimate of the  funding needs from  January
1, 1998, to June 30, 1998. Legislation establishing the agency is
currently pending and, if  enacted, would be effective January 1,
1998. In the event that legislation  creating the agency is  not
effective on or before January 1, 1998 or the funds are needed prior
to  January 1, 1998, the  Director of Finance is authorized to
transfer
expenditure authority from  this item to Item  0650-101-0890.

0650-001-0001--For support of Office of Planning and Research  . . .
3,017,000

Schedule:

(a) 11-State Planning and Policy Development  . . . 3,903,000

(b) Reimbursements  . . . -363,000

(c) Amount payable from the Property Acquisition Law Account
(Item  0650-001-0002)  . . .  -468,000

(d) Amount payable from the Federal Trust Fund (Item
0650-001-0890)  . .  . -55,000

0650-001-0002--For support of Office of Planning and Research, for
payment to Item  0650-001-0001, payable from the Property
Acquisition Law Account  . . .  468,000

0650-001-0890--For support of Office of Planning and Research, for
payment to Item  0650-001-0001, payable from the Federal Trust
Fund  . . . 55,000

0650-011-0001--For support of Office of Planning and Research  . . .
910,000

Schedule:

(a) Secretary for Child Development and Education  . . . 1,046,000



(b) Reimbursements  . . . -136,000

Provisions:

1. The funds appropriated by this item are intended for support of
the
Child  Development and  Education Agency (CDEA). The
appropriation is an estimate of the  funding needs from July 1,
1997,
to December 31, 1997, inclusive. Legislation establishing the agency
is currently pending  and, if enacted, would be effective January 1,
1998. After December 31,  1997, and upon the  determination that all
obligations of the CDEA in the Office of Planning  and Research
have been  met, the unexpended balance of the funds appropriated by
this item shall be  available for  expenditure pursuant to Item
0558-001-0001, as authorized by the  Director of Finance.

0650-011-0890--For support of Office of Planning and Research, for
support of the California  Commission on Improving Life Through
Service  . . . 722,000

Provisions:

1. The funds appropriated by this item are intended for support of
the
Child  Development and  Education Agency (CDEA) for the
Commission on Improving Life  Through Service (CCILTS).  The
appropriation is an estimate of the funding needs from July 1, 1997,
to  December 31, 1997,  inclusive. Legislation establishing the
agency is currently pending and, if  enacted, would be  effective
January 1, 1998. After December 31, 1997, and upon the
determination that all  obligations of the CCILTS in the Office of
Planning and Research have  been met, the unexpended  balance of
the funds appropriated by this item shall be available for
expenditure
pursuant to Item  0558-011-0890, as authorized by the Director of
Finance.

0650-101-0890--For local assistance, Office of Planning and
Research, for  the California  Commission on Improving Life
Through Service  . . . 10,175,000

Provisions:

1. The funds appropriated by this item are for local assistance
allocations  approved by the  Commission on Improving Life
Through Service (CCILTS) within the  Child Development and
Education Agency (CDEA). The appropriation is an estimate of the
funding needs for this  purpose from July 1, 1997, to December 31,
1997. Legislation establishing  the CDEA is currently  pending and,
if
enacted, would be effective January 1, 1998. After  December 31,
1997, and upon  the determination by the Director of Finance that all

obligations of the  CCILTS in the Office of  Planning and Research
have been met, the unexpended balance of the funds  appropriated by
this  item shall be available for expenditure pursuant to Item
0558-101-0890, as  authorized by the  director.

0650-111-0001--For local assistance, Office of Planning and
Research for  the Secretary of Child  Development and Education
(Proposition 98), for the Academic Volunteer  and Mentor Service
Program  . . . 10,000,000

Provisions:

1. Legislation to establish the Office of Child Development and
Education  is currently pending  and, if enacted, would be effective
January 1, 1998. After December 31,  1997, and upon  determination
that all obligations of the Secretary of Child Development  and
Education in the  Office of Planning and Research have been met, the
unexpended balance of  the funds appropriated  in this item shall be
available for expenditure by the Office of Child  Development and
Education  as authorized by the Director of Finance.

0690-001-0001--For support of Office of Emergency Services  . . .
29,581,000

Schedule:

(a) 15-Mutual Aid Response  . . . 9,565,000

(b) 35-Plans and Preparedness  . . . 17,031,000

(c) 45-Disaster Assistance  . . . 48,981,000

(d) 55.01-Administration and Executive  . . . 4,209,000

(e) 55.02-Distributed Administration and Executive  . . . -4,209,000



(f) Reimbursements  . . . -6,523,000

(g) Amount payable from the Unified Program Account (Item
0690-001-0028)  . . . -565,000

(h) Amount payable from the Nuclear Planning Assessment Special
Account (Item  0690-001-0029)  . . . -799,000

(i) Amount payable from the Federal Trust Fund (Item
0690-001-0890)  . .  . -38,109,000

Provisions:

1. Funds appropriated by this item may be reduced by the Director of
Finance, after giving notice  to the Chairperson of the Joint
Legislative Budget Committee, by the  amount of federal funds
made available for the purposes of this item in excess of the federal

funds  scheduled in Item  0690-001-0890.

2. The Office of Emergency Services shall charge tuition for all
training  offered through the  California Specialized Training
Institute.

3. Upon the approval by the Department of Finance, the Controller
shall  transfer such funds as are  necessary between this item and
Item 0690-101-0890.

0690-001-0028--For support of Office of Emergency Services, for
payment to Item  0690-001-0001, payable from the Unified Program
Account  . . . 565,000

0690-001-0029--For support of Office of Emergency Services, for
payment to Item  0690-001-0001, payable from the Nuclear Planning
Assessment Special  Account  . . . 799,000

0690-001-0890--For support of Office of Emergency Services, for
payment to Item  0690-001-0001, payable from the Federal Trust
Fund  . . . 38,109,000

Provisions:

1. Any funds that may become available, in addition to the funds
appropriated by this item, for  disaster response and recovery may be

allocated by the Department of  Finance subject to the  conditions of

Section 28.00 of this act, except that, notwithstanding  subdivision
(c) of that  section, the allocations may be made 30 days or less
after
notification of  the Legislature.

0690-101-0029--For local assistance, Office of Emergency Services,
Program 35--Plans and  Preparedness, payable from the Nuclear
Planning Assessment Special  Account  . . . 1,812,000

0690-101-0890--For local assistance, Office of Emergency Services,
payable from the Federal  Trust Fund  . . . 420,450,000

Schedule:

(a) 15-Mutual Aid Response  . . . 150,000

(b) 35-Plans and Preparedness  . . . 4,800,000

(c) 45-Disaster Assistance  . . . 415,500,000

Provisions:

1. Any federal funds that may become available in addition to the
funds  appropriated by this item  for Program 45--Disaster Assistance

are exempt from Section 28.00 of this  act.

0690-102-0372--For local assistance, Office of Emergency Services,
notwithstanding Section  16419 of the Government Code, for
disaster relief costs related to Loma  Prieta earthquake.  . . .
10,221,000

Provisions:

1. The funds appropriated in this item are for the State's share of
response  and recovery costs for  the Loma Prieta Earthquake and
shall be available for allocation by the  Department of Finance.


0690-112-0001--For local assistance, Office of Emergency Services,
for  allocation by Department  of Finance for disaster recovery costs

. . . 59,200,000

Provisions:

1. The funds appropriated in this item are for the state's share of
response  and recovery costs for  disasters, and shall be available
for
allocation by the Department of Finance  in an amount not to  exceed
$59,200,000.

0690-295-0001--For local assistance, Office of Emergency Services,
for  reimbursement, in  accordance with Section 6 of Article XIIIB of

the California Constitution  or Section 17561 of the  Government
Code, of the costs of any new program or increased level of  service
of an existing  program mandated by statute or executive order, State

Controller  . . . 0

Schedule:

(1) 98.01.103.280-Deaf Teletype Equipment (Ch. 1032, Stats. 1980)
. . . 0

  (2) 98.01.133.487-CPR Pocket Masks (Ch. 1334, Stats. 1987)  . . .
0

Provisions:

1. Pursuant to Section 17581 of the Government Code, mandates
identified  in the appropriation  schedule of this item with an
appropriation of $0 and included in the  language of this provision
are  specifically identified by the Legislature for suspension during

the 1996-97  fiscal year:

(a) Deaf Teletype Equipment (Ch. 1032, Stats. 1980).

(b) CPR Pocket Masks (Ch. 1334, Stats. 1987).

0690-301-0660--For capital outlay, Office of Emergency Services,
payable  from the Public  Buildings Construction Fund from the sale
of bonds, negotiable notes, or  negotiable bond  anticipation note
pursuant to the Government Code  . . . 22,818,000

Schedule:

(1) 80.10.001-Sacramento-OES Headquarters and State Operations
Center--Construction  . . .  22,818,000

Provisions:

1. Notwithstanding any other provision of law, the State Public
Works  Board may issue  lease-revenue bonds, notes or bond
anticipation notes pursuant to Chapter  5 (commencing with  Section
15830) of Part 10b of Division 3 of Title 2 of the Government  Code
to finance the  construction activities (including, but not limited
to,
equipment and other  costs relating to the  construction of the
facilities) for the project authorized by this item.

2. The State Public Works Board and the Office of Emergency
Services  may obtain interim  financing for the project costs
authorized in this item, including but not  limited to, the Pooled
Money Investment Account pursuant to Sections 16312 and 16313
of the  Government Code.

3. The maximum amount of bonds, notes, or bond anticipation notes
to be  sold shall not exceed  the cost of construction and any
additional amounts necessary to pay  interim and permanent
financing cost.

4. The State Public Works Board may authorize the augmentation of
the  cost of construction of  the project set forth in this section
pursuant to the board's authority under  Section 13332.11. In
addition, the State Public Works Board may authorize any additional
amounts necessary to  establish a reasonable construction reserve and

to pay the cost of financing,  including the payment  of interest
during construction of the project, the cost of financing a debt
service reserve fund, and  the cost of issuance of permanent
financing
for the project. This additional  amount may include  interest
payable
on any interim financing including the Pooled Money  Investment
Account  pursuant to Section 16312.

5. In the event the bonds authorized for the project are not sold,
the
Office  of Emergency Services  shall commit a sufficient portion of
its support appropriation provided for  in this act to repay any
loans
for interim financing. It is the intent of the Legislature that this
commitment shall be  included in future Budget Acts until
outstanding loans for interim financing  are repaid either  through
the
sale of bonds or from an appropriation.

0750-001-0001--For support of Office of the Lieutenant Governor  .
. .  1,366,000

0820-001-0001--For support of Department of Justice  . . .
212,853,000

Schedule:

(a) 11.01-Directorate-Administration  . . . 44,137,000

(b) 11.02-Distributed Directorate-Administration  . . . -44,137,000



(c) 25-Executive Programs  . . . 5,445,000

(d) 30-Civil Law  . . . 69,291,000

(e) 40-Criminal Law  . . . 72,702,000

(f) 45-Public Rights  . . . 29,491,000

(g) 50-Law Enforcement  . . . 172,027,000

(h) 55-Hawkins Data Center  . . . 30,100,000

(i) Reimbursements  . . . -88,145,000

(j) Amount payable from the Attorney General Antitrust Account,
General  Fund (Item  0820-001-0012)  . . . -1,048,000

(k) Amount payable from Hazardous Waste Control Account,
General  Fund (Item  0820-001-0014)  . . . -3,517,000

(l) Amount payable from Firearms Safety Training Fund Special
Account  (Item 0820-001-0015)  .  . . -703,000

(m) Amount payable from the Fingerprint Fees Account, General
Fund  (Item 0820-001-0017)  . .  . -26,506,000

(n) Amount payable from the Trustline Voluntary Registration Fund
(Item  0820-001-0019)  . . .  -477,000

(o) Amount payable from the Motor Vehicle Account, State
Transportation Fund (Item  0820-001-0044)  . . . -18,214,000

(p) Amount payable from the Department of Justice Sexual Habitual
Offender Fund, General  Fund (Item 0820-001-0142)  . . . -1,549,000


(q) Amount payable from the Travel Seller Fund (Item
0820-001-0158)  . .  . -749,000

(r) Amount payable from the Sexual Predator Public Information
Account  (Item 0820-001-0256)   . . . -57,000

(s) Amount payable from the Dealers' Record of Sale Special
Account,  General Fund (Item  0820-001-0460)  . . . -6,946,000

(t) Amount payable from the Gaming Registration Fee Account,
General  Fund (Item  0820-001-0477)  . . . -1,160,000

(u) Amount payable from the Federal Trust Fund (Item
0820-001-0890)  . .  . -15,379,000

(v) Amount payable from the Federal Asset Forfeiture Account,
Special  Deposit Fund (Item  0820-001-0942)  . . . -1,306,000

(w) Amount payable from the State Asset Forfeiture Account,
Special  Deposit Fund (Item  0820-011-0942)  . . . -447,000

Provisions:

1. The Attorney General shall submit to the Legislature, the
Department of  Finance, and the  Governor the quarterly and annual
reports that he or she submits to the  federal government on the
activities of the Medi-Cal Fraud Unit.

2. Notwithstanding any other provision of law, the Department of
Justice  may purchase or lease  vehicles of any type or class that,
in
the judgment of the Attorney General  or his or her designee,  are
necessary to the performance of the investigatory and enforcement
responsibilities of the  Department of Justice, from the funds
appropriated for that purpose in this  item.

3. Notwithstanding Section 28.50 of this act, the Attorney General
may  augment the  reimbursement authority provided by this item by
up to an aggregate of 10  percent above the  amount approved in this
act for the Civil Law Division and the Public  Rights Division in
cases  where the legal representation needs of client agencies are
secured by an  interagency agreement or  letter of commitment and
the corresponding expenditure authority has not  been provided in
this  item. The Attorney General shall notify the chairpersons of the

budget  committees, the Joint  Legislative Budget Committee and the
Department of Finance within 15  days after the  augmentation is
made as to the amount and justification of the  augmentation, and the

program  that has been augmented.

4. Of the amount budgeted in schedule (e) 40 Criminal Law,
$2,307,000  shall be for workload  related to Federal Habeas Corpus
Reform and may only be expended for  this purpose upon  approval
of the Department of Finance.

0820-001-0012--For support of Department of Justice, for payment
to  Item 0820-001-0001,  payable from the Attorney General
Antitrust Account, General Fund  . . .  1,048,000

0820-001-0014--For support of Department of Justice, for payment
to  Item 0820-001-0001,  payable from the Hazardous Waste
Control Account, General Fund  . . .  3,517,000

0820-001-0015--For support of Department of Justice, for payment
to  Item 0820-001-0001,  payable from the Firearms Safety Training
Fund Special Account  . . .  703,000

0820-001-0017--For support of Department of Justice, for payment
to  Item 0820-001-0001,  payable from the Fingerprint Fees
Account, General Fund, pursuant to  subdivision (e) of Section
11105 of the Penal Code  . . . 26,506,000

0820-001-0019--For support of Department of Justice, for payment
to  Item 0820-001-0001,  payable from the Trustline Voluntary
Registration Fund  . . . 477,000

0820-001-0044--For support of Department of Justice, for payment
to  Item 0820-001-0001,  payable from the Motor Vehicle Account,
State Transportation Fund  . . .  18,214,000

0820-001-0142--For support of Department of Justice, for payment
to  Item 0820-001-0001,  payable from the Department of Justice
Sexual Habitual Offender Fund,  General Fund  . . .  1,549,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

0820-001-0158--For support of Department of Justice, for payment
to  Item 0820-001-0001,  payable from the Travel Seller Fund  . . .
749,000

0820-001-0256--For support of Department of Justice, for payment
to  Item 0820-001-0001,  payable from the Sexual Predator Public
Information Account  . . . 57,000

0820-001-0460--For support of Department of Justice, for payment
to  Item 0820-001-0001,  payable from the Dealers' Record of Sale
Special Account, General Fund  .  . . 6,946,000

Provisions:

1. Dealers' Record of Sale fees collected pursuant to the state law
for
the  registration of assault  weapons shall not exceed $20 per
registrant.

0820-001-0477--For support of Department of Justice, for payment
to  Item 0820-001-0001,  payable from the Gaming Registration Fee
Account, General Fund  . . .  1,160,000

0820-001-0890--For support of Department of Justice, for payment
to  Item 0820-001-0001,  payable from the Federal Trust Fund  . . .
15,379,000

0820-001-0942--For support of Department of Justice, for payment
to  Item 0820-001-0001,  payable from the Federal Asset Forfeiture
Account, Special Deposit Fund  .  . . 1,306,000

0820-011-0012--For transfer to the General Fund, payable from the
first  $600,000 in revenues in  the Attorney General Antitrust
Account, General Fund  . . . (600,000)

0820-011-0942--For support of Department of Justice, for payment
to  Item 0820-001-0001,  payable from the State Asset Forfeiture
Account, Special Deposit Fund  . .  . 447,000

0820-101-0001--For local assistance, Department of Justice.  . . .
3,355,000

Schedule:

(a) 40-Criminal Law  . . . 3,355,000

Provisions:

1. The funds appropriated in Schedule (a) are for allocation to
district  attorneys for vertical  prosecution activities related to
implementation of the Battered Women  Protection Act of 1994,
pursuant to Chapter 140, Statutes of 1994.

0820-101-0460--For local assistance, Department of Justice  . . .
85,000

Schedule:

(a) 50-Law Enforcement  . . . 85,000

0820-102-0001--For local assistance, Department of Justice,
Program 40  .  . . 50,000

Provisions:

1. Funds appropriated in this item shall be expended to support
standardized data collection  activities for domestic violence
intervention programs in San Diego  County. The San Diego
Association of Governments shall coordinate reports from local law
enforcement agencies  throughout San Diego County, and shall
submit a report to the Legislature  on the data collected  no later
than
April 30, 1999.

0820-295-0001--For local assistance, Department of Justice, for
reimbursement, in accordance  with the provisions of Section 6 of
Article XIII B of the California  Constitution or of Section  17561
of
the Government Code, of the costs of any new program or  increased
level of service of  an existing program mandated by statute or
executive order, State  Controller  . . . 4,050,000

Schedule:

(1) 98.01.139.976-Custody of Minors (Ch. 1399, Stats. 1976)  . . .
3,642,000

(2) 98.01.033.790-Stolen Vehicle Notification (Ch.337/90)  . . .
241,000

(3) 98.01.110.592-Misdemeanors: Booking/Fingerprinting
(Ch.1105/92)  .  . . 167,000

Provisions:

1. Allocation of funds provided in this item to the appropriate local

entities  shall be made by the  Controller in accordance with the
provisions of each statute or executive  order that mandates the
reimbursement of the costs, and shall be audited to verify the actual

amount  of the mandated costs  in accordance with subdivision (d) of
Section 17561 of the Government  Code. Audit adjustments  to prior
year claims may be paid from this item. Funds appropriated by this
item may be used to  provide reimbursement pursuant to Article 5
(commencing with Section  17615) of Chapter 4 of  Part 7 of
Division 4 of Title 2 of the Government Code.

0820-301-0001--For capital outlay, Department of Justice  . . .
3,231,000

Schedule:

(1) 85.50.070-Central Valley Replacement Laboratory--Acquisition
and  Working Drawings  . . .  1,276,000

(2) 85.50.080-Riverside Replacement Laboratory--Acquisition and
Working Drawings  . . .  949,000

(3) 85.50.090-Redding Replacement Laboratory--Acquisition and
Preliminary Plans  . . . 360,000

(4) 85.60.010-Santa Barbara Replacement Laboratory--Acquisition
and  Preliminary Plans  . . .  646,000

0820-301-0660--For capital outlay, Department of Justice, payable
from  the Public Buildings  Construction Fund  . . . 18,435,000

Schedule:

(1) 85.50.070-Central Valley Replacement Laboratory--Construction
. . .  8,113,000

(2) 85.50.080-Riverside Replacement Laboratory--Construction  . . .
10,322,000

Provisions:

1. The State Public Works Board may issue lease-revenue bonds,
notes or  bond anticipation notes  pursuant to Chapter 5
(commencing with Section 15830) of Part 10b of  Division 3 of Title
2 of  the Government Code to finance the construction activities
(including, but  not limited to,  equipment and other costs relating
to
the construction of the facilities) for  the project authorized  by
this
item.

2. The State Public Works Board and the Department of Justice may
obtain  interim financing for  the project costs authorized in this
item,
including but not limited to, the  Pooled Money  Investment Account
pursuant to Sections 16312 and 16313 of the  Government Code.

3. The maximum amount of bonds, notes, or bond anticipation notes
to be  sold shall not exceed  the cost of construction and any
additional amounts necessary to pay  interim and permanent
financing cost.

4. The State Public Works Board may authorize the augmentation of
the  cost of construction of  the project set forth in this section
pursuant to the board's authority under  Section 13332.11. In
addition, the State Public Works Board may authorize any additional
amounts necessary to  establish a reasonable construction reserve and

to pay the cost of financing,  including the payment  of interest
during construction of the project, the cost of financing a debt
service reserve fund, and  the cost of issuance of permanent
financing
for the project. This additional  amount may include  interest
payable
on any interim financing including the Pooled Money  Investment
Account  pursuant to Section 16312.

5. In the event the bonds authorized for the project are not sold,
the
Department of Justice shall  commit a sufficient portion of its
support
appropriation provided for in this  act to repay any loans  for
interim
financing. It is the intent of the Legislature that this commitment
shall be included in  future Budget Acts until outstanding loans for
interim financing are repaid  either through the sale  of bonds or
from
an appropriation.

0840-001-0001--For support of State Controller  . . . 62,102,000

Schedule:

(a) 100000-Personal Services  . . . 67,369,000

(b) 300000-Operating Expenses and Equipment  . . . 35,128,000

(c) Reimbursements  . . . -31,455,000

(d) Amount payable from the Motor Vehicle Fuel Account,
Transportation  Tax Fund (Item  0840-001-0061)  . . . -3,013,000


(e) Amount payable from the Highway Users Tax Account,
Transportation  Tax Fund (Item  0840-001-0062)  . . . -818,000

(f) Amount payable from the Local Revenue Fund (Item
0840-001-0330)  .  . . -397,000

(g) Amount payable from the State School Building Lease-Purchase
Fund  (Item 0840-001-0344)   . . . -716,000

(i) Amount payable from the Federal Trust Fund (Item
0840-001-0890)  . .  . -2,069,000

(j) Amount payable from the State Penalty Fund (Item
0840-001-0903)  . .  . -967,000

(k) Amount payable from nongovernmental cost funds, Retail Sales
Tax  Fund (Item  0840-001-0988)  . . . -181,000

(l) Amount payable from various special funds (Item 0840-011-0494)
. . .  -131,000

(m) Amount payable from various bond funds (Item 0840-011-0797)
. . .  -520,000

(n) Amount payable from various nongovernmental cost funds (Item
0840-011-0988)  . . .  -128,000

Provisions:

1. The appropriation made by this item shall be in lieu of the
appropriation  in Section 1564 of the  Code of Civil Procedure for
all
costs, expenses, or obligations connected  with the administration
of
the Unclaimed Property Law, with the exception of payment of
owners'  or holders' claims  pursuant to Section 1540, 1542, 1560, or

1561 of the Code of Civil  Procedure, or of payment of  the costs of
compensating contractors for locating and recovering  unclaimed
property due the  state.

2. Of the claims received for reimbursement of court-ordered or
voluntary  desegregation  programs pursuant to Sections 42243.6,
42247, and 42249 of the  Education Code, the State  Controller shall
pay only those claims that have been subjected to audit by  school
districts in  accordance with the State Controller's procedures
manual
for conducting  audits of education  desegregation claims.
Furthermore, the State Controller shall pay only  those past-year
actual  claims for desegregation program costs that are accompanied
by all reports  issued by the auditing  entity, unless the auditing
entity
was the State Controller.

3. No less than 0.9 personnel-year in the Audits Division shall be
used to  audit education  desegregation claims.

4. The State Controller may, with the concurrence of the Director of
Finance and the Chairperson  of the Joint Legislative Budget
Committee, bill affected state departments  for activities required
by
Section 20050 of the State Administrative Manual, relating to the
administration of federal  pass-through funds.

   No billing may be sent to affected departments sooner than 30 days

after  the Chairperson of the  Joint Legislative Budget Committee has

been notified by the Director of  Finance that he or she  concurs
with
the amounts specified in the billings.

5. (a) Notwithstanding subdivision (b) of Section 1531 of the Code
of Civil  Procedure, the  Controller may publish notice in any manner

that the Controller determines  reasonable, provided  that: (1) none
of the moneys used for this purpose may be redirected from  funding
for the  Controller's audit activities, (2) no photograph is used in
the
publication of  notice, and (3) no  elected official's name is used
in
the publication of notice.

(b) No funds appropriated by this act may be expended by the
Controller to  provide information  to the public, other than holders

of unclaimed property (as defined in  subdivision (e) of Section
1501
of the Code of Civil Procedure), concerning the unclaimed property
program or possible  existence of unclaimed property held by the
Controller's office, except for  informational  announcements to the
news media or through the exchange of information  on electronic
bulletin  boards.

(c) Of the funds appropriated by this act, no more than $35,000 may
be  expended by the  Controller for the purpose of providing mailed
notice to the apparent  owners of escheated  property as required by
subdivision (e) of Section 1531 of the Code of  Civil Procedure.


6. The Controller shall increase his or her audits of the provider
billings in  the Medi-Cal program  in such a manner as to enhance
General Fund resources by at least  $14,600,000 (in addition to  any
corresponding enhancement in federal funds).

7. Of the moneys appropriated to the State Controller by this act,
the
State  Controller shall not  expend more than $500,000 to conduct
post eligibility fraud audits of the  Supplemental Security
Income/State Supplementary Payment Program (SSI/SSP) for a
General  Fund savings of  $1,400,000 to the State Department of
Social Services (Item  5180-111-0001).

8. The State Controller shall redirect, from his or her
administrative
activities, resources sufficient  enough to ensure the collection of
at
least $165,000,000 of General Fund  Abandoned Property  revenues
for the 1997-98 fiscal year.

9. The Commission on State Mandates shall provide, in applicable
parameters and guidelines, as  follows:

(a) If a local agency or school district contracts with an
independent
contractor for the  preparation and submission of reimbursement
claims, the costs  reimbursable by the state for that  purpose shall
not
exceed the lesser of (1) 10 percent of the amount of the  claims
prepared and  submitted by the independent contractor, or (2) the
actual costs that would  necessarily have been  incurred for that
purpose if performed by employees of the local agency or  school
district.

(b) The maximum amount of reimbursement provided in subdivision
(a)  may be exceeded only if  the local agency or school district
establishes, by appropriate  documentation, that the preparation  and

submission of these claims could not have been accomplished
without  the incurring of the  additional costs claimed by the local
agency or school district.

10. The funds appropriated to the Controller by this act may not be
expended for any performance  review or performance audit except
pursuant to specific statutory  authority. It is the intent of the
Legislature that audits conducted by the Controller, or under the
direction  of the Controller, shall  be fiscal audits that focus on
claims
and disbursements, as provided for in  Section 12410 of the
Government Code. Any report, audit, analysis, or evaluation issued
by the  Controller for the  1997-98 fiscal year shall cite the
specific
statutory or constitutional  provision authorizing the  preparation
and
release of the report, audit, analysis, or evaluation.

11. The Controller shall deliver his or her monthly report on General

Fund  cash receipts and  disbursements within 10 days after the close

of each month to the Joint  Legislative Budget  Committee, the fiscal

committees of the Legislature, the Department of  Finance, the
Treasurer's  office, and the Office of the Legislative Analyst.

12. For purposes of the review and payment of any claim for
reimbursement by local government  submitted pursuant to Section
54954.4 of the Government Code, the  Controller shall use the
procedures that were in effect at the time the claim was submitted.



0840-001-0061--For support of State Controller, for payment to
Item  0840-001-0001, payable  from the Motor Vehicle Fuel
Account, Transportation Tax Fund  . . .  3,013,000

0840-001-0062--For support of State Controller, for payment to
Item  0840-001-0001, payable  from the Highway Users Tax
Account, Transportation Tax Fund  . . .  818,000

0840-001-0330--For support of State Controller, for payment to
Item  0840-001-0001, payable  from the Local Revenue Fund  . . .
397,000

0840-001-0344--For support of State Controller, for payment to
Item  0840-001-0001, payable  from the State School Building
Lease-Purchase Fund  . . . 716,000

0840-001-0890--For support of State Controller, for payment to
Item  0840-001-0001, payable  from the Federal Trust Fund  . . .
2,069,000

0840-001-0903--For support of State Controller, for payment to
Item  0840-001-0001, payable  from the State Penalty Fund  . . .
967,000

0840-001-0988--For support of State Controller, for payment to
Item  0840-001-0001, payable  from nongovernmental cost funds
(Retail Sales Tax Fund)  . . . 181,000

0840-011-0494--For support of State Controller, for payment to
Item  0840-001-0001, payable  from the various special funds  . . .
131,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance may  authorize  expenditures in excess of the amount
appropriated by this item not sooner  than 30 days after
notification
in writing of the necessity therefor is provided to the  chairpersons
of
the fiscal  committees and the Chairperson of the Joint Legislative
Budget  Committee, or not sooner than  whatever lesser time the
chairperson of the committee, or his or her  designee, may in each
instance determine.

0840-011-0797--For support of State Controller, for payment to
       Item  0840-001-0001, payable  from the various bond funds  . .
.
520,000

Provisions:

1. Notwithstanding any other provision of law, the Director of the
Department of Finance may  authorize expenditures in excess of the
amount appropriated by this item  not sooner than 30 days  after
notification in writing of the necessity therefor is provided to the
chairpersons of the fiscal  committees and the Chairperson of the
Joint Legislative Budget  Committee, or not sooner than  whatever
lesser time the chairperson of the committee, or his or her
designee,
may in each  instance determine.

0840-011-0988--For support of State Controller, for payment to
Item  0840-001-0001, payable  from the various nongovernmental
cost funds  . . . 128,000

Provisions:

1. Notwithstanding any other provision of law, the Director of the
Department of Finance may  authorize expenditures in excess of the
amount appropriated by this item  not sooner than 30 days  after
notification in writing of the necessity therefor is provided to the
chairpersons of the fiscal  committees and the Chairperson of the
Joint Legislative Budget  Committee, or not sooner than  whatever
lesser time the chairperson of the committee, or his or her
designee,
may in each  instance determine.

0840-101-0071--For local assistance, payable from the Yosemite
Foundation Account in the  California Environmental License Plate
Fund  . . . 456,000

Provisions:

1. There is hereby appropriated to the Controller for allocation to
the
Yosemite Foundation all  moneys deposited in the account for
activities authorized pursuant to  Article 8.4 (commencing  with
Section 5060) of Chapter 1 of Division 3 of the Vehicle Code. (Ch.
1273, Stats. 1992).

0840-101-0979--For allocation by the Controller from the California
Firefighters' Memorial Fund   . . . 95,000

Provisions:

1. The funds appropriated in this item are to be allocated as
follows:


(a) To the Franchise Tax Board and Controller for reimbursement of
costs  incurred in connection  with duties under Article 9
(commencing with Section 18801) of Chapter 3  of Part 10.2 of
Division 2 of the Revenue and Taxation Code.

(b) To the California Fire Foundation the balance in that fund for
the
construction of a memorial  as authorized in that article.

0845-001-0217--For support of Department of Insurance, payable
from the  Insurance Fund  . . .  89,590,000

Schedule:

(a) 10-Regulation of Insurance Companies and Insurance Producers
. . .  70,205,000

(b) 20-Fraud Control  . . . 20,095,000

(c) 50.01-Administration  . . . 20,302,000

(d) 50.02-Distributed Administration  . . . 20,302,000

(e) Reimbursements  . . . -710,000

Provisions:

1. Of the funds appropriated in this item, the Controller shall
transfer
$1,923,000 as of July 1,  1997, to the Department of Aging for
support of the Health Insurance  Counseling and Advocacy
Program.

2. Of the funds appropriated in this item, the Controller shall
transfer
$478,000 as of July 1, 1997,  to the State and Consumer Services
Agency for support of the Office of  Insurance Advisor, to  provide
assistance to the Governor on insurance related matters.

3. Of the funds appropriated in this item, an amount not to exceed
$600,000 shall be used solely  to cover intervenor compensation
costs allowable under subdivision (b) of  Section 1861.10 of the
Insurance Code.

0845-002-0217--For support of Department of Insurance, Program
10-Regulation of Insurance  Companies and Insurance Producers,
payable from the Insurance Fund  . . .  623,000

0845-101-0217--For local assistance, Department of Insurance,
Program  20-Fraud Control,  payable from the Insurance Fund  . . .
21,212,000

0860-001-0001--For support of State Board of Equalization  . . .
180,940,000

Schedule:

(a) 100000-Personal Services  . . . 214,339,000

(b) 300000-Operating Expenses and Equipment  . . . 76,403,000

(c) Reimbursements  . . . -85,597,000

(d) Amount payable from the Breast Cancer Fund (Item
0860-001-0004)  .  . . -106,000

(e) Amount payable from the State Emergency Telephone Number
Special  Account, General  Fund (Item 0860-001-0022)  . . .
-698,000

(f) Amount payable from the Motor Vehicle Fuel Account,
Transportation  Tax Fund (Item  0860-001-0061)  . . . -15,534,000


(g) Amount payable from the Occupational Lead Poisoning
Prevention  Account, General Fund  (Item 0860-001-0070)  . . .
-386,000

(h) Amount payable from the Childhood Lead Poisoning Prevention
Fund  (Item 0860-001-0080)   . . . -662,000

(i) Amount payable from the Insurance Fund (Item 0860-001-0217)
. . .  -350,000

(j) Amount payable from the Cigarette and Tobacco Products Surtax
Fund  (Item 0860-001-0230)   . . . -1,264,000

(k) Amount payable from the Oil Spill Prevention and Administration
Fund  (Item 0860-001-0320)   . . . -283,000

(l) Amount payable from the Integrated Waste Management
Ac-count,  Solid Waste Management  Fund (Item 0860-001-0387)  .
. . -349,000

(m) Amount payable from the Underground Storage Tank Cleanup
Fund,  General Fund (Item  0860-001-0439)  . . . -1,271,000

(n) Amount payable from the Energy Resources Programs Account,
General Fund (Item  0860-001-0465)  . . . -103,000

(o) Amount payable from the Federal Trust Fund (Item
0860-001-0890)  . .  . -310,000

(p) Amount payable from the Timber Tax Fund (Item
0860-001-0965)  . . .  -2,889,000

0860-001-0004--For support of State Board of Equalization, for
payment  to Item  0860-001-0001, payable from the Breast Cancer
Fund  . . . 106,000

Provisions:

1. Notwithstanding Section 30461.6 of the Revenue and Taxation
Code, or  any other provision of  law, sufficient funds to cover the
costs of the State Board of Equalization  for the collection and
enforcement of fees to be deposited in the Breast Cancer Fund shall
be  retained in the fund, and  be available to be appropriated to the

board.

0860-001-0022--For support of State Board of Equalization, for
payment  to Item  0860-001-0001, payable from the State
Emergency Telephone Number  Special Account, General  Fund  . . .
698,000

0860-001-0061--For support of State Board of Equalization, for
payment  to Item  0860-001-0001, payable from the Motor Vehicle
Fuel Account,  Transportation Tax Fund  . . .  15,534,000

0860-001-0070--For support of State Board of Equalization, for
payment  to Item  0860-001-0001, payable from the Occupational
Lead Poisoning Prevention  Account, General  Fund  . . . 386,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

0860-001-0080--For support of State Board of Equalization, for
payment  to Item  0860-001-0001, payable from the Childhood Lead
Poisoning Prevention  Fund  . . . 662,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

0860-001-0217--For support of State Board of Equalization, for
payment  to Item  0860-001-0001, payable from the Insurance Fund
. . . 350,000

0860-001-0230--For support of State Board of Equalization, for
payment  to Item  0860-001-0001, payable from the Cigarette and
Tobacco Products Surtax  Fund  . . . 1,264,000

0860-001-0320--For support of State Board of Equalization, for
payment  to Item  0860-001-0001, payable from the Oil Spill
Prevention and Administration  Fund  . . . 283,000

0860-001-0387--For support of State Board of Equalization, for
payment  to Item  0860-001-0001, payable from the Integrated
Waste Management Account,  Solid Waste  Management Fund  . . .
349,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

0860-001-0439--For support of State Board of Equalization, for
payment  to Item  0860-001-0001, payable from the Underground
Storage Tank Cleanup  Fund  . . . 1,271,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

0860-001-0465--For support of State Board of Equalization, for
payment  to Item  0860-001-0001, payable from the Energy
Resources Programs Account,  General Fund  . . .  103,000

0860-001-0890--For support of State Board of Equalization, for
payment  to Item  0860-001-0001, payable from the Federal Trust
Fund  . . . 310,000

0860-001-0965--For support of State Board of Equalization, for
payment  to Item  0860-001-0001, payable from the Timber Tax
Fund  . . . 2,889,000

0890-001-0001--For support of Secretary of State  . . . 17,860,000



Schedule:

(a) 100000-Personal Services  . . . 19,810,000

(b) 300000-Operating Expenses and Equipment  . . . 16,656,000

(c) Special Item of Expense-Election Related Costs  . . . 8,723,000



(d) Reimbursements  . . . -6,126,000

(e) Amount payable from the Secretary of State Business Fees Fund
(Item  0890-001-0228)  . . .  -20,407,000

(f) Amount payable from the Business Reinvestment Fund (Item
0890-001-0274)  . . . -796,000

0890-001-0228--For support of Secretary of State, for payment to
Item  0890-001-0001, payable  from the Secretary of State Business
Fees Fund  . . . 20,407,000

Provisions:

1. Notwithstanding any other provision of law, the Secretary of State

may  expend an amount not  to exceed $538,000 of the funds
appropriated by this item for the  investigation and prosecution of
voter fraud in California.

0890-001-0274--For support of Secretary of State, for payment to
Item  0890-001-0001, payable  from the Business Reinvestment Fund
. . . 796,000

0890-003-0001--For support of Secretary of State for rental
payments on  lease revenue bonds  . .  . 9,679,000

Schedule:

(a) Base Rental and Fees  . . . 9,635,000

(b) Structural Insurance  . . . 44,000

0890-003-0228--For support of Secretary of State for rental
payments on  lease revenue bonds,  payable from the Secretary of
State Business Fees Fund  . . . 2,988,000

Schedule:

(a) Base Rental and Fees  . . . 2,975,000

(b) Structural Insurance  . . . 13,000

0890-295-0001--For local assistance, Secretary of State, for
reimbursement, in accordance with  Section 6 of Article XIII B of
the California Constitution or Section 17561  of the Government
Code, of the costs of any new program or increased level of service
of an  existing program  mandated by statute or executive order,
State Controller  . . . 5,272,000

Schedule:

(1) 98.01.007.778-Absentee ballots (Ch. 77, Stats. 78)  . . .
3,616,000

(2) 98.01.039.188-Brendon Maguire Act (Ch. 391, Stats. 88)  . . .
1,000

(3) 98.01.049.479-Handicapped voter access (Ch. 494, Stats. 79)  . .

. 0

(4) 98.01.070.475-Voter registration procedures (Ch. 704, Stats. 75)
. . .  1,346,000

(5) 98.01.101.381-Local elections (Ch. 1013, Stats. 81)  . . . 0


(6) 98.01.140.176-Voter registration roll purge (Ch. 1401, Stats. 76)

. . . 0

  (7) 98.01.142.282-Permanent absent voters (Ch. 1422, Stats. 82)  .

. .  309,000

(8) 98.01.160.382-Democratic presidential delegates (Ch. 1603,
Stats. 82)   . . . 0

(9) 98.01.104.285-Election materials (Ch. 1042, Stats. 85)  . . . 0


Provisions:

1. Except as provided in Provision 2 of this item, allocations of
funds
provided in this item to the  appropriate local entities shall be
made
by the State Controller in  accordance with the provisions  of each
statute or executive order that mandates the reimbursement of the
costs, and shall be  audited to verify the actual amount of the
mandated costs in accordance  with subdivision (d) of  Section 17561
of the Government Code. Audit adjustments to prior year  claims
may be paid from  this item. Funds appropriated in this item may be
used to provide  reimbursement pursuant to  Article 5 (commencing
with Section 17615) of Chapter 4 of Part 7 of  Division 4 of Title 2
of the  Government Code.

2. If any of the scheduled amounts are insufficient to provide full
reimbursement of costs, the  State Controller may, upon notifying the

Director of Finance in writing,  augment those deficient  amounts
from the unencumbered balance of any other scheduled amounts  in
this item. No order  may be issued pursuant to this provision unless
written notification of the  necessity therefor is  provided to the
chairperson of the committee in each house that considers
appropriations and the  Chairperson of the Joint Legislative Budget
Committee or his or her  designee.

3. Pursuant to Section 17581 of the Government Code, mandates
identified  in the appropriation  schedule of this item with an
appropriation of $0 and included in the  language of this provision
are specifically identified by the Legislature for suspension during
the
1996-97 fiscal year:

(a) Handicapped voter access (Ch. 494, Stats. 1979).

(b) Local elections (Ch. 1013, Stats. 1981).

(c) Voter registration roll purge (Ch. 1401, Stats. 1976).

(d) Democratic presidential delegates (Ch. 1603, Stats. 1982, and
Ch. 8,  Stats. 1988).

(e) Election materials (Ch. 1042, Stats. 1985)

0890-301-0001--For capital outlay, Secretary of State  . . . 12,000



Schedule:

(1) 38.10.100-Minor Capital Outlay  . . . 12,000

0890-301-0228--For capital outlay, Secretary of State, payable from
the  Secretary of State  Business Fees Fund  . . . 47,000

Schedule:

(1) 38.10.100-Minor Capital Outlay  . . . 47,000

0950-001-0001--For support of State Treasurer  . . . 4,964,000

Schedule:

(a) 100000-Personal Services  . . . 12,915,000

(b) 300000-Operating Expenses and Equipment  . . . 4,711,000

(c) Reimbursements  . . . -12,662,000

0956-001-0171--For support of California Debt and Investment
Advisory  Commission, payable  from the California Debt and
Investment Advisory Commission Fund  . . .  1,610,000

Schedule:

(a) 10-California Debt and Investment Advisory Commission  . . .
1,710,000

(b) Reimbursements  . . . -100,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance may  authorize  expenditures for the California Debt and
Investment Advisory Commission  in excess of the  amount
appropriated not sooner than 30 days after notification in writing
of
the necessity therefor  is provided to the chairpersons of the fiscal

committees and the  Chairperson of the Joint  Legislative Budget
Committee, or not sooner than whatever lesser time the  chairperson
of the  committee, or his or her designee, may in each instance
determine.

0959-001-0169--For support of California Debt Limit Allocation
Committee, payable from the  California Debt Limit Allocation
Committee Fund  . . . 415,000

Schedule:

(a) 10-Debt Limit Allocation Committee  . . . 415,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance may  authorize  expenditures for the California Debt Limit
Allocation Committee in excess  of the amount  appropriated not
sooner than 30 days after notification in writing of the  necessity
therefor is  provided to the chairpersons of the fiscal committees
and
the Chairperson  of the Joint Legislative  Budget Committee, or not
sooner than whatever lesser time the  chairperson of the committee,
or  his or her designee, may in each instance determine.

0965-001-0215--For support of California Industrial Development
Financing Advisory  Commission, payable from the Industrial
Development Fund  . . . 431,000

Schedule:

(a) 10-Industrial Development Financing Advisory Commission  . . .
431,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance  may authorize  expenditures for the California Industrial
Development Financing Advisory  Commission in excess  of the
amount appropriated not sooner than 30 days after notification in
writing of the necessity  therefor is provided to the chairpersons of

the fiscal committees and the  Chairperson of the Joint  Legislative
Budget Committee, or not sooner than whatever lesser time the
chairperson of the  committee, or his or her designee, may in each
instance determine.

0968-001-0448--For support of California Tax Credit Allocation
Committee, payable from the  Occupancy Compliance Monitoring
Account  . . . 472,000

Schedule:



(a) 10-California Tax Credit Allocation Committee  . . . 472,000


Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance may  authorize  expenditures for the California Tax Credit
Allocation Committee in excess  of the amount  appropriated not
sooner than 30 days after notification in writing of the  necessity
therefor is  provided to the chairpersons of the fiscal committees
and
the Chairperson  of the Joint Legislative  Budget Committee, or not
sooner than whatever lesser time the  chairperson of the committee,
or  his or her designee, may in each instance determine.

0968-001-0457--For support of California Tax Credit Allocation
Committee, payable from the  Tax Credit Allocation Fee Account  . .
. 1,100,000

Schedule:



(a) 10-California Tax Credit Allocation Committee  . . . 1,130,000


(b) Reimbursements  . . . -30,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance may  authorize  expenditures for the California Tax Credit
Allocation Committee in excess  of the amount  appropriated not
sooner than 30 days after notification in writing of the  necessity
therefor is  provided to the chairpersons of the fiscal committees
and
the Chairperson  of the Joint Legislative  Budget Committee, or not
sooner than whatever lesser time the  chairperson of the committee,
or  his or her designee, may in each instance determine.

0971-001-0528--For support of California Alternative Energy and
Advanced Transportation  Financing Authority, payable from the
California Alternative Energy  Authority Fund  . . . 125,000

Schedule:

(a) 10-California Alternative Energy and Advanced Transportation
Financing Authority  . . .  125,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance  may authorize  expenditures for the California Alternative
Energy and Advanced  Transportation Financing  Authority in excess
of the amount appropriated not sooner than 30 days  after
notification in  writing of the necessity therefor is provided to the

chairpersons of the fiscal  committees and the  Chairperson of the
Joint Legislative Budget Committee, or not sooner than  whatever
lesser time  the chairperson of the joint committee, or his or her
designee, may in each  instance determine.



                              STATE AND CONSUMER SERVICES



1100-001-0001--For support of California Science Center

8,329,000

Schedule:

(a) 10-Education  . . . 9,589,000

(b) 30-California African-American Museum  . . . 1,142,000

(c) 40.01-Administration  . . . 1,038,000

(d) 40.02-Distributed Administration  . . . -1,038,000

(e) Reimbursements  . . . -232,000

(f) Amount payable from the Exposition Park Improvement Fund
(Item  1100-001-0267)  . . .  -2,170,000

Provisions:

1. The Director of General Services shall not approve a contract,
permit, or  lease agreement by  the museum (excluding those for
museum exhibits) that reduces state  revenues or increases state
costs by $25,000 or more unless, not sooner than 30 days prior to
giving  his or her approval, the  director submits in writing to the
Chairperson of the Joint Legislative  Budget Committee  notification
of the director's intent to approve that contract, permit, or  lease,
or
not sooner than  such lesser time as the chairperson may in each
instance determine. This  provision shall have no  effect as to those

contracts that the legislative fiscal committees have  examined as
part
of the  budget process or otherwise.

1100-001-0267--For support of California Science Center for
payment to  Item 1100-001-0001,  payable from the Exposition Park
Improvement Fund  . . . 2,170,000

1100-003-0001--For support of the California Science Center for
rental  payments on lease  revenue bonds  . . . 3,025,000

Schedule:

(a) Base rental  . . . 3,000,000

(b) Insurance  . . . 25,000

1111-001-0001--For transfer by the State Controller from the
General  Fund to the Consumer  Affairs Fund  . . . 880,000

1111-001-0024--For transfer by the State Controller from the Guide
Dogs  for the Blind Fund to  the Consumer Affairs Fund  . . . 52,000



Provisions:

1. The amount appropriated in this item may include revenues
derived  from the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1111-001-0069--For transfer by the State Controller from the
Barbering  and Cosmetology Fund  to the Consumer Affairs Fund  . .
. 7,985,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1111-001-0166--For transfer by the State Controller from the
Certification  Account to the  Consumer Affairs Fund  . . . 571,000



Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 Statutes of 1995.

1111-001-0239--For transfer by the State Controller from the Private
Security Services Fund to  the Consumer Affairs Fund  . . .
5,633,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1111-001-0325--For transfer by the State Controller from the
Electronic  and Appliance Repair  Fund to the Consumer Affairs
Fund  . . . 1,507,000

Provisions:

1. The amount appropriated in this item may include revenues
derived  from the assessment of  fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.

1111-001-0421--For transfer by the State Controller from the
Vehicle  Inspection and Repair Fund  to the Consumer Affairs Fund
. . . 88,536,000

Provisions:

1. The amount appropriated in this item may include revenues
derived  from the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1111-001-0717--For transfer by the State Controller from the
Cemetery  Fund to the Consumer  Affairs Fund  . . . 981,000

Provisions:

1. The amount appropriated in this item may include revenues
derived  from the assessment of  fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.

1111-001-0750--For transfer by the State Controller from the
Funeral  Directors and Embalmers  Fund to the Consumer Affairs
Fund  . . . 852,000

Provisions:

1. The amount appropriated in this item may include revenues
derived  from the assessment of   fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1111-001-0752--For transfer by the State Controller from the
Bureau of  Home Furnishings Fund  to the Consumer Affairs Fund  .
. . 2,873,000

Provisions:

1. The amount appropriated in this item may include revenues
derived  from the assessment of  fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.

1111-001-0757--For transfer by the State Controller from Landscape
Architects Fund to the  Consumer Affairs Fund  . . . 515,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1111-001-0769--For transfer by the State Controller from the Private
Investigator Fund to the  Consumer Affairs Fund  . . . 553,000

Provisions:

1. The amount appropriated in this item may include revenues
derived  from the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1111-001-0859--For transfer by the State Controller from the High
Polluter Removal or Repair  Account to the Consumer Affairs Fund
. . . (25,027,000)

Provisions:

1. The amount appropriated in this item may include revenues
derived  from the assessment of  fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.

1111-010-0702--For support of Department of Consumer
Affairs--Administrative and Consumer  Services; Bureau of
Automotive Repair; Bureau of Electronic and  Appliance Repair;
Bureau of  Home Furnishings and Thermal Insulation; Bureau of
Security and  Investigative Services;  Arbitration Review Program;
Cemetery Program; Funeral Program;  Barbering and Cosmetology
Program; Guide Dogs for the Blind Program; and Landscape
Architects'  Program--payable from  the Consumer Affairs Fund  . . .

135,965,000

Schedule:

(a) 01.01-Support for Department of Consumer
Affairs--Administrative  and Consumer Services;  Bureau of
Automotive Repair; Bureau of Electronic and Appliance Repair;
Bureau of Home  Furnishings and Thermal Insulation; Bureau of
Security and Investigative  Services; Arbitration  Review Program;
Cemetery Program; Funeral Program; Barbering and  Cosmetology
Program;  Guide Dogs for the Blind Program; and Landscape
Architects' Program.  . .  . 157,370,000

(b) Reimbursements  . . . -21,405,000

Provisions:

1. Each transfer from Items 1111-001-0024, 1111-001-0069,
  1111-001-0166, 1111-001-0239,  1111-001-0325, 1111-001-0421,
1111-001-0717, 1111-001-0750,  1111-001-0752,  1111-001-0757,
and 1111-001-0769, and 1111-001-0859 may be increased  or
decreased by an  amount not to exceed 15 percent of the total of
each transfer, without  further authorization, to  reflect the actual

distributed costs of the program. In no case shall the total
transfers
exceed the  total appropriation in this item.

2. The funds transferred in the Items specified in Provision 1 shall
be
used  only for the purposes  authorized under current law.

3. Of the amount transferred pursuant to Item 1111-001-0859, no
more  than $1,027,000 shall be  expended for the design,
implementation, and administration of the  high-polluting-vehicle
repair  and replacement program. The remaining balance shall be
used to purchase  or repair  high-polluting vehicles pursuant to
Article 9 (commencing with Section  44090) of Chapter 5 of  Part 5
of Division 26 of the Health and Safety Code.

4. (a) Notwithstanding any other provision of law, the Director of
the
Department of Consumer  Affairs, or his or her designee, in lieu of
the Director of Finance, is  authorized to carry out the  provisions
of
Section 31.00 of  this act as it pertains to the positions funded  by

this item.

(b) Notwithstanding Section 31.00 of this act, the Director of the
Department of Consumer  Affairs is not required to notify the
Chairperson of the Joint Legislative  Budget Committee  regarding
any position authorization, blanket transfer, or reclassification of
positions funded by  this item.

5. Notwithstanding any other provision of law, the Director of the
Department of Consumer  Affairs, or his or her designee, in lieu of
the Director of Finance, is  authorized to carry out the  provisions
of
Section 26.00 of this act as it pertains to category transfers
related
to this item.

6. Notwithstanding any other provision of law, the Director of the
Department of Consumer  Affairs or his or her designee, in lieu of
the
Director of Finance, is  authorized to approve Budget  Revision,
Standard Form 26, for activities funded by this item.

7. The department shall adopt regulations to implement pilot projects

authorized by (d) through  (f) of this section. These regulations
shall
be exempt from the  Administrative Procedure Act,  Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of  Title 2
of the  Government Code, except that:

(a) The director shall certify in writing that the regulations
implement
a  pilot program that  qualifies for exemption under this section.


(b) The regulations shall include a note citing this section as
authority
for  the adoption of the  regulation.

(c) The certification and regulations shall be submitted to the
Office
of  Administrative Law.

(d) The Office of Administrative Law shall file the regulations with
the  Secretary of State and  publish the regulations in the
California
Code of Regulations.

8. Notwithstanding the provisions of Sections 18800 to 18807,
inclusive,  Sections 19818 to   19818.21, inclusive and Sections
19889 to 19889.4, inclusive, of the  Government Code, the  director:


(a) Shall have full authority and discretion to classify positions in

departmental specific established  classifications, apply established

allocation standards, and prepare and  submit calendar items to  the
State Personnel Board to propose establishment of, or revision to,
departmental specific  classification specifications. In addition,
the
Department of Personnel  Administration shall provide  an expedited
review of 10 working days for all reclassification requests for
servicewide  classifications submitted by the Department of
Consumer Affairs.

(b) In conjunction with the Director of the Department of Personnel
Administration, is authorized  to create a proposal for legislative
review and approval that establishes a  gain sharing program.  The
gain-sharing plan shall authorize the reinvestment of 50 percent of
the  department's savings  back into the programs and bureaus, and
shall outline the planned  expenditures.

(c) In conjunction with the Director of the Department of Personnel
Administration, is authorized  to create and implement innovative
classification and pay systems.

(d) In conjunction with the Director of the State Personnel Board, is

authorized to create and  implement innovative classification
systems.


9. The director shall ensure that the authority and discretion
authorized by  these sections are  consistent with the merit
principles
as embodied in Article VII of the  California Constitution and
Section 18500 of the Government Code, and is in conformance with
the  requirements of the  Ralph C. Dills Act (Chapter 10.3
(commencing with Section 3512) of  Division 4 of Title 1 of the
Government Code).

10. Notwithstanding any other provision of law, the Department of
Consumer Affairs may, with  the agreement of the State Personnel
Board, waive specific statutes within  Division 5  (commencing with
Section 18000) of Part 2 of Title 2 of the Government  Code, except
that  nothing in this section shall infringe upon or conflict with
the
merit  principles embodied in the  California Constitution, nor shall

this waiver include any of the provisions  contained in Chapter 10
(commencing with Section 19680) of Division 5 of Part 2 of Title 2
of the  Government Code. The  department will design and
implement alternative competitive examination,  appointment, and
discipline processes. These processes shall include, but not be
limited
to:

(a) Enhancing the availability of candidates with specific knowledge
and  abilities;

(b) Expediting the hiring process;

(c) Expanding the diversity of the department's work force; and

(d) Expediting and streamlining the discipline process.

  The alternative process shall be implemented following a State
Personnel  Board hearing.

11. The Department of Consumer Affairs shall be exempt from Rule
444 of  the State Personnel  Board, which requires advertising vacant

positions when filled by transfer  within or between  department
offices or other agencies, or by training and development
assignment. This exemption  does not provide an exemption from any
of the requirements imposed by  Section 19232, 19404,  or 19790 of
the Government Code.

12. Notwithstanding Section 19080.3 of the Government Code, the
Department of Consumer  Affairs may make limited-term
appointments, not exceeding a period of  four years for any
appointment, without the review or approval of the State Personnel
Board,  and the funds  appropriated by this item may be used for this

purpose.

13. Notwithstanding Sections 2050 to 2057, inclusive, Sections
10115 to  10115.13, inclusive,  Sections 10290 to 10382, inclusive,
and Sections 12100.5 to 12121,  inclusive, of the Public  Contract
Code, and Section 14669 and Sections 14740 to 14880, inclusive,  of
the Government  Code, the director or his or her designee, in lieu of

the Director of General  Services, shall have  full authority and
discretion to execute all contracts, procure all goods and  services,

negotiate  lease agreements for office, warehouse, and other
appropriate facilities, and  determine appropriate  methods to store
and retrieve departmental records related to the bureaus,  programs,
and  divisions under the director's appointing authority.

  Except as provided in this subdivision, the director shall use the
authority  granted in this  subdivision to implement alternative
approaches, procedures, and methods,  in lieu of the  guidelines and
procedures contained in the State Administrative Manual  and in
other state-issued  guidelines to carry out the provisions of the
sections of the Public Contract  Code and the  Government Code
cited in this section.

  This authority granted by this subdivision shall not affect any of
the
following:

(a) The department's continued use of the state's private line voice
network  (CALNET).

(b) The Department of General Services' continued responsibility and
authority for the  consolidation of the department's offices in the
Sacramento area.

(c) The requirement that the department obtain the written approval
of the  Secretary of the State  and Consumer Services Agency for
any leasing of offices that may affect  the Los Angeles Basin  and
San
Francisco Area Consolidation Plans.

14. Notwithstanding any other provision of law, the director may
prepay  vendors when it is  cost-beneficial to the department. In the

event the department incurs any  losses due to the  prepayment of
vendors, the department shall report such losses in the  semiannual
report required  in Provision 24 of this item.

15. Notwithstanding Sections 12100 to 12121, inclusive, of the
Public  Contract Code, the  director, or his or her designee, shall
have full authority and discretion for  the procurement of
electronic
data processing and telecommunications goods and services  related
to the bureaus,  programs, and divisions under the director's
appointing authority, that do  not exceed one million  dollars
($1,000,000) per procurement.

16. Notwithstanding Section 2807 of the Penal Code, the director, or
his or  her designee, shall  have full authority to procure goods and

services from the private sector,  even though these  goods and
services may be available through the Prison Industries  Authority,
when in his or her  discretion it is more cost-beneficial to the
bureaus, programs, and divisions  under the director's  appointing
authority.

17. Notwithstanding subdivision (a) of Section 948 and Section 965
of the  Government Code, the  Director of the Department of
Consumer Affairs, or designee, in lieu of the  Director of Finance,
is
authorized to certify funds for the payment of all legal settlements,

State  Board of Control claims,  judgments, and tort claims, for
which the department has sufficient  expenditure authority and  funds

without the need for an augmentation. This provision shall only apply

to programs under  the director's appointing authority.

18. Notwithstanding Section 11032 of the Government Code, the
Director  of the Department of  Consumer Affairs, or designee, may
authorize officers and employees of  the programs under the
director's appointing authority, to travel outside the state or
country
in lieu  of the Director of  Finance, and the funds appropriated by
this
item may be used for that  purpose.

19. Notwithstanding any other provision of law, the Department of
Consumer Affairs shall be  exempt from Government Code Section
12439 regarding the abolition of  vacant state positions.

20. Notwithstanding Sections 8647, 11005, and 11005.1 of the
Government Code, the  Department of Consumer Affairs may accept
gifts and donations without  approval by the Director  of Finance.


21. All reports to the Legislature required in the sections cited in
this
section shall be made by the  director in the same form and manner as

currently reported by the  otherwise appropriate agency.

22. The Legislature finds and declares the following with regard to
the  Department of Consumer  Affairs, and the bureaus and programs
within the department:

(a) The traditional budgeting system does not appropriately measure
results  or outcomes.

(b) The department has drafted and submitted to the Legislature the
following essential elements  of performance budgeting:

(1) A strategic business and information systems plan.

(2) Meaningful outcome measures which are the primary focus of
management accountability.

(3) Performance targets for each of the outcome measures.

23. In connection with the support funding appropriated by this item
and  by any other act, for the  1997-98 fiscal year the Department of

Consumer Affairs, pursuant to this  provision and Provision  24,
shall
continue the pilot performance funding project that holds the
department accountable for  results rather than process. The
department's obligations under this project  in the 1997-98 fiscal
year shall include the following:

(a) The department shall continue to conduct regulatory reviews of
the five  programs under the  authority of the Director of the
Department of Consumer Affairs, to  determine whether the
regulatory activities of the programs are appropriate and necessary,
and  whether the programs  should be eliminated, modified, or
continued. This assessment shall be  based on the department's
evaluation of the public benefit of the regulatory activity, the
program's  success in attaining those  benefits, and the data
gathered
as part of the market condition assessment.  The department shall
report its review of the Bureau of Automotive Repair to the
Legislature no  later than March 1,  1998.

24. (a) In addition to the commitments described in Provision 23, the

Department of Consumer  Affairs shall do both of the following:

(1) Submit to the Legislature any revisions to its strategic business

and  information systems plans  and performance measures by
December 31, 1997.

(2) Report semiannually:  The department shall provide an annual
report  for the previous fiscal  year no later than December 31,
1997,
and a progress report for the first  six months of the current
fiscal
year no later than April 1, 1998, regarding the status of the
implementation of its strategic  business and information systems
plans, the attainment of its performance  targets, and the
implementation and impact of the administrative flexibilities
provided
for  the previous fiscal year.  The report shall be submitted to the
Joint Legislative Budget Committee,  the appropriate fiscal
committees, and the Department of Finance.

(b) The department shall not modify its strategic business and
information  systems plans or  performance measures sooner than 60
days after notification, in writing, to  the Joint Legislative
Budget
Committee, the appropriate fiscal committees, and the Department
of Finance.

1120-001-0704--For support of Board of Accountancy, payable from
the  Accountancy Fund  . . .  9,585,000

Schedule:

(a) 3-Board of Accountancy  . . . 9,789,000

(b) Reimbursements  . . . -204,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.

1130-001-0706--For support of California State Board of
Architectural  Examiners, payable from  the California State Board of

Architectural Examiners' Fund  . . . 2,853,000

  Schedule:

(a) 6-Board of Architectural Examiners  . . . 2,858,000

(b) Reimbursements  . . . -5,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1140-001-0001--For support of State Athletic Commission  . . .
801,000

Schedule:

(a) 9-State Athletic Commission  . . . 1,107,000

(b) Amount payable from the Boxer's Pension Account (Item
1140-002-0008)  . . . -75,000

(c) Amount payable from the Boxer's Neurological Examinations
Account  (Item 1140-001-0492)   . . . -231,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.

1140-001-0492--For support of State Athletic Commission, for
payment to  Item 1140-001-0001,  payable from the Boxer's
Neurological Examination Account  . . . 231,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.

1140-002-0008--For support of State Athletic Commission, for
payment to  Item 1140-001-0001,  payable from the Boxer's Pension
Account  . . . 75,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.

1170-001-0773--For support of Board of Behavioral Science
Examiners of  the State of  California, payable from the Behavioral
Science Examiners Fund  . . .  4,144,000

Schedule:

(a) 18-Board of Behavioral Science Examiners  . . . 4,380,000

(b) Reimbursements  . . . -236,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1230-001-0093--For support of Contractors' State License Board,
for  payment to Item  1230-001-0735, payable from the Construction
Management Education  Account, Contractors'  License Fund  . . .
15,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1230-001-0735--For support of Contractors' State License Board,
payable  from the Contractors'  License Fund  . . . 41,116,000

Schedule:

(a) 30-Contractors' State License Board  . . . 41,184,000

(b) Reimbursements  . . . -53,000

(c) Amount payable from the Construction Management Education
Account (Item  1230-001-0093)  . . . -15,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1260-001-0741--For support of Board of Dental Examiners of
California,  payable from the State  Dentistry Fund  . . . 5,576,000


Schedule:

(a) 36-Board of Dental Examiners  . . . 5,645,000

(b) Reimbursements  . . . -69,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.

1270-001-0380--For support of Board of Dental Examiners of
California,  payable from the  Dental Auxiliary Fund  . . . 1,026,000



Schedule:

(a) 36-Board of Dental Examiners  . . . 1,248,000

(b) Reimbursements  . . . -222,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of    fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.

1340-001-0205--For support of State Board of Registration for
Geologists  and Geophysicists,  Program 51, payable from the
Geology and Geophysics Fund  . . . 799,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1390-001-0175--For support of Dispensing Opticians, Medical
Board of  California, for payment  to Item 1390-001-0758, payable
from the Dispensing Opticians Fund  . . .  262,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of   fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.

1390-001-0210--For support of Outpatient Settings, Medical Board
of  California, for payment to  Item 1390-001-0758, payable from the
Outpatient Setting Fund  . . .  27,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.

1390-001-0755--For support of Licensed Midwifery Program,
Medical  Board of California, for  payment to Item 1390-001-0758,
payable from the Licensed Midwifery  Fund  . . . 18,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.

1390-001-0758--For support of Medical Board of California, payable
from  the Contingent Fund  of the Medical Board of California  . . .

31,725,000

Schedule:

(a) 63.10.010-Medical Board of California  . . . 32,870,000

(b) 63.15-Registered Dispensing Opticians  . . . 262,000

(c) 63.17-Outpatient Setting  . . . 27,000

(d) 63.18-Licensed Midwifery Program  . . . 18,000

(e) 63.10.020-Distributed Medical Board of California   . . .
-838,000


(f) Reimbursements  . . . -307,000

(g) Amount payable from the Dispensing Opticians Fund (Item
1390-001-0175)  . . . -262,000

(h) Amount payable from the Outpatient Setting Fund (Item
1390-001-0210)  . . . -27,000

(i) Amount payable from the Licensed Midwifery Fund (Item
1390-001-0755)  . . . -18,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1400-001-0108--For support of Acupuncture Examining Committee,
Medical Board of  California, payable from the Acupuncturists Fund
. . . 1,166,000

Schedule:

(a) 63.20-Acupuncture Committee  . . . 1,189,000

(b) Reimbursements  . . . -23,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of   fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1410-001-0208--For support of Hearing Aid Dispensers Examining
Committee, Medical Board of  California, payable from the Hearing
Aid Dispensers Fund  . . . 578,000

Schedule:

(a) 63.30-Hearing Aid Dispensers Examining Committee  . . .
587,000

(b) Reimbursements  . . . -9,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1420-001-0759--For support of Physical Therapy Examining
Committee,  Medical Board of  California, payable from the Physical
Therapy Fund  . . . 1,910,000

Schedule:

(a) 63.40-Physical Therapy Examining Committee  . . . 1,976,000

(b) Reimbursements  . . . -66,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1430-001-0280--For support of Physician Assistant Examining
Committee,  Medical Board of  California, payable from the
Physician Assistant Fund  . . . 759,000

Schedule:

(a) 63.50-Physician Assistant Examining Committee  . . . 767,000

(b) Reimbursements  . . . -8,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1440-001-0295--For support of Podiatry Examining Committee,
Medical  Board of California,  payable from the Podiatry Fund  . . .

967,000

Schedule:

(a) 63.60-Podiatry Examining Committee  . . . 971,000

(b) Reimbursements  . . . -4,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1450-001-0310--For support of Board of Psychology, Medical
Board of  California, payable from  the Psychology Fund  . . .
2,761,000

Schedule:

(a) 63.70-Board of Psychology  . . . 2,800,000

(b) Reimbursements  . . . -39,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1455-001-0319--For support of Respiratory Care Examining
Committee,  Medical Board of  California, payable from the
Respiratory Care Fund  . . . 2,056,000

Schedule:

(a) 63.75-Respiratory Care Examining Committee  . . . 2,122,000

(b) Reimbursements  . . . -66,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1460-001-0376--For support of Speech Pathology and Audiology
Examining Committee, Medical  Board of California, payable from
the Speech Pathology and Audiology  Examining Committee  Fund  .
. . 296,000

Schedule:

(a) 63.80-Speech Pathology and Audiology Committee  . . . 308,000


(b) Reimbursements  . . . -12,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.

1470-001-0260--For support of Board of Examiners of Nursing
Home  Administrators, payable  from the Nursing Home
Administrators' State License Examining Board  Fund  . . . 450,000



Schedule:

(a) 66-Board of Nursing Home Administrators  . . . 451,000

(b) Reimbursements  . . . -1,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1480-001-0763--For support of State Board of Optometry, payable
from  the State Optometry  Fund  . . . 999,000

Schedule:

(a) 69-Board of Optometry  . . . 1,005,000

(b) Reimbursements  . . . -6,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1490-001-0767--For support of California State Board of Pharmacy,
payable from the Pharmacy  Board Contingent Fund  . . . 5,588,000


Schedule:

(a) 72-Board of Pharmacy  . . . 5,798,000

(b) Reimbursements  . . . -210,000

Provisions:

1. The amount appropriated in this item may include revenues

        derived from  the assessment of  fines and penalties imposed
as
specified in Chapter 654 of the Statutes of  1995.

1500-001-0770--For support of State Board of Registration for
Professional Engineers and Land  Surveyors, payable from the
Professional Engineers' and Land Surveyors'  Fund  . . . 6,516,000


Schedule:

(a) 75-State Board of Registration for Professional Engineers and
Land  Surveyors  . . . 6,532,000

(b) Reimbursements  . . . -16,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.

1510-001-0761--For support of Board of Registered Nursing,
payable  from the Board of  Registered Nursing Fund  . . .
11,492,000

Schedule:

(a) 78-Board of Registered Nursing  . . . 12,035,000

(b) Reimbursements  . . . -543,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1520-001-0771--For support of Court Reporters Board of
California,  payable from the Court  Reporters' Fund  . . . 521,000


Schedule:

(a) 81-Court Reporters Board  . . . 522,000

(b) Reimbursements  . . . -1,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1530-001-0399--For support of Structural Pest Control Board, for
payment to Item  1530-001-0775, payable from the Structural Pest
Control Education and  Enforcement Fund  . . .  268,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.

1530-001-0775--For support of Structural Pest Control Board,
payable  from the Structural Pest  Control Fund  . . . 3,157,000

Schedule:

(a) 84-Structural Pest Control Board  . . . 3,427,000

(b) Reimbursements  . . . -2,000

(c) Amount payable from the Structural Pest Control Education and
Enforcement Fund (Item  1530-001-0399)  . . . -268,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1560-001-0777--For support of Veterinary Medical Board, payable
from  the Veterinary Medical  Board Contingent Fund  . . . 1,180,000


Schedule:

(a) 90.10.010-Veterinary Medical Board  . . . 1,206,000

(b) Reimbursements  . . . -26,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654 of the Statutes of  1995.

1570-001-0118--For support of Registered Veterinary Technician
Examining Committee,  Program 90, payable from the Registered
Veterinary Technicians  Examining Committee Fund  . . .  104,000


Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.

1590-001-0779--For support of Board of Vocational Nurse and
Psychiatric  Technician Examiners  of the State of California,
payable
from the Vocational Nurse and  Psychiatric Technician  Examiners'
Fund, Vocational Nurses Account  . . . 2,989,000

Schedule:

(a) 91.10.010-Vocational Nurses  . . . 3,250,000

(b) 91.10.020-Distributed Vocational Nurses  . . . -37,000

(c) Reimbursements  . . . -224,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.

1600-001-0780--For support of Board of Vocational Nurse and
Psychiatric  Technician Examiners  of the State of California,
payable
from the Vocational Nurse and  Psychiatric Technician  Examiners
Fund, Psychiatric Technicians Account  . . . 892,000

Schedule:

(a) 91-Board of Vocational Nurse and Psychiatric Technician
Examiners  .  . . 903,000

(b) Reimbursements  . . . -11,000

Provisions:

1. The funds appropriated by this item are from the moneys
deposited  pursuant to Section 4547 of  the Business and Professions
Code.

2. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.



1700-001-0001--For support of Department of Fair Employment and
Housing  . . . 14,712,000

Schedule:

(a) 50-Administration of Civil Rights Law  . . . 18,698,000

(b) Reimbursements  . . . -10,000

(c) Amount payable from the Federal Trust Fund (Item
1700-001-0890)  . .  . -3,976,000

1700-001-0890--For support of Department of Fair Employment and
Housing, for payment to  Item 1700-001-0001, payable from the
Federal Trust Fund  . . . 3,976,000

1705-001-0001--For support of the Fair Employment and Housing
Commission  . . . 1,082,000

Schedule:

(a) 10-Fair Employment and Housing Commission  . . . 1,232,000

(b) Reimbursements  . . . -150,000

1730-001-0001--For support of Franchise Tax Board  . . .
328,996,000

Schedule:

(a) 10-Tax Programs  . . . 327,284,000

(b) 20-Homeowners and Renters Assistance  . . . 2,208,000

(c) 30-Political Reform Audit (1,264,000)  . . . -

(d) 40-Child Support Collections  . . . 5,113,000

(e) 50-DMV Collections  . . . 7,751,000

(f) 60-Court Collections  . . . 383,000

(g) 70-Contract Work   . . . 8,249,000

(h) 80.01-Administration  . . . 18,439,000

(i) 80.02-Distributed Administration  . . . -18,439,000

(j) Reimbursements  . . . -13,362,000

(k) Amount payable from the State Highway Account, State
Transportation Fund (Item  1730-001-0042)  . . . -2,000

(l) Amount payable from the Motor Vehicle Account, State
Transportation  Fund (Item  1730-001-0044)  . . . -2,741,000

(m) Amount payable from the Motor Vehicle License Fee Account,
Transportation Tax Fund  (Item 1730-001-0064)  . . . -5,008,000

(n) Amount payable from the Delinquent Tax Collection Fund
(Section  19378 of the Revenue and  Taxation Code)  . . . -404,000



(o) Amount payable from the Rare Fish, Wildlife, and Plant Species
Conservation and  Enhancement Account, Fish and Game
Preservation Fund (Item  1730-001-0200)  . . . -13,000

(p) Amount payable from the Court Collection Account (Item
1730-001-0242)  . . . -383,000

(q) Amount payable from the Veterans Memorial Fund (Section 1316
of  the Military and  Veterans Code)  . . . -4,000

(r) Amount payable from the State Children's Trust Fund (Item
1730-001-0803)  . . . -11,000

(s) Amount payable from the California Alzheimer's Disease and
Related  Disorders Research  Fund (Item 1730-001-0823)  . . .
-11,000

(t) Amount payable from the California Military Museum Fund (Item
1730-001-0875)  . . . -6,000

  (u) Amount payable from the D.A.R.E. California (Drug Abuse
Resistence  Education) Fund (Item  1730-001-0876)  . . . -6,000

(v) Amount payable from the California Seniors Special Fund (Item
1730-001-0886)  . . . -4,000

(w) Amount payable from the California Election Campaign Fund

(Item 1730-001-0905)

-5,000

(x) Amount payable from the California Breast Cancer Research
Fund  (Item 1730-001-0945)  . . .  -7,000

(y) Amount payable from the Public Schools Library Protection Fund
(Item  1730-001-0975)  . . .  -11,000

(z) Amount payable from the Firefighters' Memorial Fund (Item
1730-001-0979)  . . . -7,000

(aa) Amount payable from the California Seniors Fund (Item
1730-001-0983)  . . . -7,000

Provisions:

1. It is the intent of the Legislature that the Franchise Tax Board
resolve  tax controversies,  without litigation, on a basis that is
fair to
both the state and the taxpayer  and in a manner that  will enhance
voluntary compliance and public confidence in the integrity  and
efficiency of the  board.

2. During the 1997-98 fiscal year, the collection cost recovery fee
for
purposes of subparagraph  (A) of paragraph (1) of subdivision (a) of
Section 19254 of the Revenue  and Taxation Code shall  be $103,
and the filing enforcement cost recovery fee for purposes of
subparagraph (A) of  paragraph (2) of that subdivision shall be $71.



3. During the 1997-98 fiscal year, the collection cost recovery fee
for
purposes of subparagraph  (B) of paragraph (1) of subdivision (a) of
Section 19254 of the Revenue  and Taxation Code shall  be $147,
and the filing enforcement cost recovery fee for purposes of
subparagraph (B) of  paragraph (2) of that subdivision shall be $82.



1730-001-0042--For support of Franchise Tax Board, for payment to
Item  1730-001-0001,  payable from the State Highway Account,
State Transportation Fund  . . .  2,000

1730-001-0044--For support of Franchise Tax Board, for payment to
Item  1730-001-0001,  payable from the Motor Vehicle Account,
State Transportation Fund  . . .  2,741,000

1730-001-0064--For support of Franchise Tax Board, for payment to
Item  1730-001-0001,  payable from the Motor Vehicle Licensee Fee
Account, Transportation Tax  Fund  . . . 5,008,000

1730-001-0200--For support of Franchise Tax Board, for payment to
Item  1730-001-0001,  payable from the Rare Fish, Wildlife, and
Plant Species Conservation and  Enhancement Account,  Fish and
Game Preservation Fund  . . . 13,000

1730-001-0242--For support of Franchise Tax Board, for payment to
Item  1730-001-0001,  payable from the Court Collection Account  .
. . 383,000

1730-001-0803--For support of Franchise Tax Board, for payment to
Item  1730-001-0001,  payable from the State Children's Trust Fund
. . . 11,000

1730-001-0823--For support of Franchise Tax Board, for payment to
Item  1730-001-0001,  payable from the California Alzheimer's
Disease and Related Disorders  Research Fund  . . .  11,000

1730-001-0875--For support of Franchise Tax Board, for payment to
Item  1730-001-0001,  payable from the California Military Museum
Fund  . . . 6,000

1730-001-0876--For support of Franchise Tax Board, for payment to
Item  1730-001-0001,  payable from the California Drug Abuse
Resistance Education (D.A.R.E.)  Fund  . . . 6,000

1730-001-0886--For support of Franchise Tax Board, for payment to
Item  1730-001-0001,  payable from the California Seniors Special
Fund  . . . 4,000

1730-001-0905--For support of Franchise Tax Board, for payment to
Item  1730-001-0001,  payable from the California Election
Campaign Fund  . . . 5,000

1730-001-0945--For support of Franchise Tax Board, for payment to
Item  1730-001-0001,  payable from the California Breast Cancer
Research Fund  . . . 7,000

1730-001-0975--For support of Franchise Tax Board, for payment to
Item  1730-001-0001,  payable from the Public Schools Library
Protection Fund  . . . 11,000

1730-001-0979--For support of Franchise Tax Board, for payment to
Item  1730-001-0001,  payable from the Firefighters' Memorial Fund
. . . 7,000

1730-001-0983--For support of Franchise Tax Board, for payment to
Item  1730-001-0001,  payable from the California Seniors Fund  . . .

7,000

1730-002-0001--For support of the Franchise Tax Board for rental
payments on lease revenue  bonds  . . . 4,485,000

(a) Central Office--Building 1 and 2  . . . 7,811,000

(b) Insurance  . . . 41,000

Reimbursements  . . . -3,367,000

1730-295-0001--For local assistance, Franchise Tax Board, for
reimbursement, in accordance  with the provisions of Section 6 of
Article XIII B of the California  Constitution or of Section  17561
of
the Government Code, of the costs of any new program or  increased
level of service of  an existing program mandated by statute or
executive order, State  Controller  . . . 0

Schedule:

(1) 98.01.149.084--Business Tax Reporting Requirements (Ch.
1490,  Stats. 1984)  . . . 0

(2) 98.01.023.874--Substandard Housing (Ch. 238, Stats. 1974)  . . .

0

Provisions:

1. Pursuant to Section 17581 of the Government Code, mandates
identified  in the appropriation  schedule of this item with an
appropriation of $0 and included in the  language of this provision
are  specifically identified by the Legislature for suspension during

the 1997-98  fiscal year:



(a) Business Tax Reporting Reg (Ch. 1490, Stats. 1984).

(b) Substandard Housing (Ch. 238, Stats. 1974).

1760-001-0001--For support of Department of General Services, for
payment to Item  1760-001-0666  . . . 6,506,000

Provisions:



1. In addition to the funds appropriated by this item, any amounts
received  from the sale of the  Governor's Budget and related
publications  funded from this item are  available for expenditure.


1760-001-0002--For support of Department of General Services, for
payment to Item  1760-001-0666, payable from the Property
Acquisition Law Account,  General Fund  . . .  2,377,000

1760-001-0003--For support of Department of General Services, for
payment to Item  1760-001-0666, payable from Motor Vehicle
Parking Facilities Moneys  Account, General Fund  .  . . 4,643,000



1760-001-0006--For support of Department of General Services, for
payment to Item  1760-001-0666, payable from the Access for
Handicapped Account,  General Fund  . . . 1,833,000

1760-001-0022--For support of Department of General Services, for
payment to Item  1760-001-0666, payable from the State Emergency
Telephone Number  Account, General Fund  .  . . 1,036,000

1760-001-0026--For support of Department of General Services, for
payment to Item  1760-001-0666, payable from the State Motor
Vehicle Insurance Account,  General Fund  . . .  3,836,000

Provisions:

1. Notwithstanding any other provision of law, Section 16379 of the
Government Code shall   govern the payment of claims for the
purposes of this item.

1760-001-0344--For support of Department of General Services, for
payment to Item  1760-001-0666, payable from the State School
Building Lease-Purchase  Fund  . . . 9,574,000

Provisions:

1. Notwithstanding Item 9840-001-0494, the Director of Finance
may  authorize the creation of  deficiencies pursuant to Section
11006 of the Government Code for the  purposes of this item.

1760-001-0450--For support of Department of General Services, for
payment to Item  1760-001-0666, payable from the Seismic Gas
Valve Certification Fund  . .  . 77,000

1760-001-0465--For support of Department of General Services, for
payment to Item  1760-001-0666, payable from the Energy
Resources Programs Account,  General Fund  . . .  1,265,000

1760-001-0602--For support of Department of General Services, for
payment to Item  1760-001-0666, payable from the Architecture
Revolving Fund  . . .  13,208,000

1760-001-0666--For support of Department of General Services,
payable  from the Service  Revolving Fund  . . . 360,380,000

Schedule:

(a) Program support  . . . 458,003,000

(b) Distributed services  . . . -14,416,000

(c) Amount payable from the General Fund (Item 1760-001-0001)  .
. .  -6,506,000

(d) Amount payable from the General Fund (Item 1760-011-0001)  .
. .  -4,737,000

(e) Amount payable from the Property Acquisition Law Account,
General  Fund (Item  1760-001-0002)  . . . -2,377,000

(f) Amount payable from the Motor Vehicle Parking Facilities
Moneys  Account, General Fund  (Item 1760-001-0003)  . . .
-4,643,000

(g) Amount payable from the Access for Handicapped Account,
General  Fund (Item  1760-001-0006)  . . . -1,833,000

(h) Amount payable from the State Emergency Telephone Number
Account, General Fund (Item  1760-001-0022)  . . . -1,036,000

(i) Amount payable from the State Motor Vehicle Insurance
Account,  General Fund (Item  1760-001-0026)  . . . -3,836,000

(j) Amount payable from the State School Building Lease-Purchase
Fund  (Item 1760-001-0344)  .  . . -9,574,000

(k) Amount payable from the Seismic Gas Valve Certification Fund
(Item  1760-001-0450)  . . .  -77,000

(l) Amount payable from the Energy Resources Programs Account,
General Fund (Item  1760-001-0465)  . . . -1,265,000

(m) Amount payable from the Architecture Revolving Fund (Item
1760-001-0602)  . . .  -13,208,000

(o) Amount payable from the Earthquake Safety and Public Buildings
Rehabilitation Fund of 1990  (Item 1760-001-0768)  . . . -833,000


(p) Amount payable from the State School Deferred Maintenance
Fund  (Item 1760-001-0961)  . .  . -137,000

(q) Amount payable from the Architecture Revolving Fund (Item
1760-011-0602)  . . .  -4,862,000

(r) Amount payable from the Service Revolving Fund (Item
1760-002-0666)  . . . -25,394,000

(s) Amount payable from Property Acquisition Law Account,
General  Fund (Item  1760-015-0002)  . . . -1,735,000

(t) Amount payable from the Motor Vehicle Parking Facilities Money
Account, General Fund  (Item 1760-002-0003)  . . . -1,154,000

Provisions:

1. The Department of General Services is authorized to collect rent
from  the tenants of the  buildings at 1020 N Street and 1021 O
Street in Sacramento. These rents  shall be deposited in the  Service

Revolving Fund and shall be available for maintenance and  operation
of the buildings by  the Office of Buildings and Grounds.

2. Notwithstanding any other provision of law, revenues from the
sale of  legislative bills and  publications received by the Bill
Room
shall be deposited in the Service  Revolving Fund.

3. Notwithstanding any other provision of law, if the Director of the

Department of General  Services determines in writing that there is
insufficient cash in a special  fund under his or her  authority to
make
one or more payments currently due and payable, he or  she may
order the  transfer of moneys to that special fund in the amount
necessary to make  payment or payments, as  a loan from the Service
Revolving Fund. That loan shall be subject to all of  the following
conditions:

(a) No loan shall be made that would interfere with the carrying out
of the  object for which the  Service Revolving Fund was created.

(b) The loan shall be repaid as soon as there is sufficient money in
the
recipient fund to repay the  amount loaned, but no later than 18
months after the date of the loan. The  amount loaned shall  not
exceed the amount that the fund or program is authorized at the time
of  the loan to expend  during the 1997-98 fiscal year from the
recipient fund except as otherwise  provided in Provisions  5 and 6
of
this item.

(c) The terms and conditions of the loan are approved, prior to the
transfer  of funds, by the  Department of Finance pursuant to
appropriate fiscal standards.

4. Notwithstanding any other provision of law, the Director of the
Department of General  Services may authorize a loan from the
Service Revolving Fund to the  Public School Planning,  Design and
Construction Review Revolving Fund for the purpose of  meeting the
cash needs of  the Structural Safety and Fire and Life Safety
Sections
in the Division of  the State Architect. The  loan shall not exceed
$4,000,000. As a condition of the loan, the Division  of the State
Architect  shall reduce its school plan review and inspection staff
to a
level  commensurate with expected  workload, and shall maintain that
staffing level. This loan shall be repaid as  soon as there is
sufficient
money in the recipient fund to repay the amount loaned, but no  later

than June 30, 2000.  No loan shall be made that would interfere with
the carrying out of the  objectives for which the  Service Revolving
Fund was created.

5. Notwithstanding Item 9840-001-0988, Item 9840-001-0494, and
Section 27.00 of this act, the  Director of General Services may
augment this item or any of Items  1760-001-0002,  1760-001-0003,
1760-001-0006, 1760-001-0026, 1760-001-0602, and
1760-011-0602 by up to  an aggregate of 10 percent in cases where
(a) the Legislature has approved  funds for a customer  for the
purchase of services or equipment through the Department of
General Services (DGS) and  the corresponding expenditure
authority has not been provided in this item  or (b) a local
government entity or the federal government has requested services
from  the DGS. Any  augmentation that is deemed to be necessary on
a permanent basis shall be  identified in the  Governor's Budget for
the subsequent fiscal year. If the Director of the  Department of
General  Services augments this item or Item 1760-001-0002,
1760-001-0003,  1760-001-0006,  1760-001-0026, 1760-001-0602,
or 1760-011-0602, the DGS shall notify  the Department of  Finance
within 30 days after that augmentation is made as to the amount,
justification, and the  program augmented. Any augmentation made
in accordance with this  provision shall not result in  an increase
in
any rate charged to other departments for services or the  purchase
of goods without  the prior written consent of the Department of
Finance.

6. Notwithstanding Item 9840-001-0988, Item 9840-001-0494, and
Section 27.00 of this act, if  this item or Item 1760-001-0002,
1760-001-0003, 1760-001-0006,  1760-001-0026,  1760-001-0602,
or 1760-011-0602, is augmented pursuant to Provision 5  by the
maximum  allowed under that provision, the Director of Finance may
further augment  the item or items in  cases where (a) the
Legislature
has approved funds for a customer for the  purchase of services or
equipment through the DGS and the corresponding expenditure
authority  has not been provided  in these items, or (b) a local
government entity or the federal government  has requested services
from the DGS. Any augmentation that is deemed to be necessary on
a  permanent basis shall be  identified in the Governor's Budget for
the subsequent fiscal year.

7. Notwithstanding Item 9840-001-0988, Item 9840-001-0494, and
Section 27.00 of this act, the  Director of General Services may
augment this item and Items  1760-001-0026 and  1760-001-0003, to
increase authorized expenditures by the Office of State  Printing,
the
Office of  Information Services, the Office of Risk and Insurance
Management, the  Office of Fleet  Administration, the Office of
Energy Assessments, and the  Telecommunications Division's Public
Safety Radio Services Section. The augmentation shall be for the
specific  purpose of enabling the  Office of State Printing, the
Office
of Risk and Insurance Management, the  Office of Information
Services, the Office of Fleet Administration, the Office of Energy
Assessments, and the  Telecommunications Division's Public Safety
Radio Services Section to  provide competitive  services to their
customers (including local government entitles or the  federal
government) and  may be made only if the office has sufficient
operating reserves available to  fund the  augmentation. If the
Director of General Services augments either of the  items in this
provision,  the DGS shall notify the Department of Finance within 30
days after that  augmentation is made as  to the amount,
justification,
and the office augmented. Any augmentation  that is necessary on a
permanent basis shall be identified in the Governor's Budget for the
subsequent fiscal year.

8. Any augmentation made pursuant to Provision 5, 6, or 7 of this
item  shall be reported in  writing to the chairpersons of the fiscal

committees of each house and the  Chairperson of the Joint
Legislative Budget Committee within 30 days of the date the
augmentation  is approved. This  notification shall identify the
amount of, and justification for, the  augmentation, and the program
that has been augmented.



9. (a) The intent of the Performance and Results Act of 1993 is to
improve  the delivery of  governmental services through the use of
strategic planning and  performance measurement.  Therefore, the
DGS is to commit itself to achieve improved levels of  performance,
as specified, by  focusing its efforts on enhancing the value of the
services it delivers.

(b) (1) Under Goal Two of the DGS strategic plan, the department is
to  commit itself to providing  the following two categories of
services by July 1, 1998: (A) services that  the Legislature or
Governor requires state agencies to purchase from the DGS, and (B)
services that state agencies  are not required to purchase from the
DGS, but that the DGS can provide  on a cost-competitive  basis.

(2) The DGS shall update and report its plan to implement this policy

by  May 1, 1997, with  implementation continuing during the
1997-98 fiscal year.

(3) The DGS shall report to the Legislature and the Department of
Finance  on its performance  twice per year as follows: On
September 1, 1997, for the period January 1,  1997, to June 30,
1997, inclusive; for the 1997-98 fiscal year, the DGS shall report on

March  1, 1998, for the  period July 1, 1997, to December 31, 1997,
inclusive, and on September 1,  1998, for the period  January 1,
1998, to June 30, 1998, inclusive. Each report shall provide data  on

the DGS'  performance as measured against its short-, mid-, and
long-term objectives  pursuant to its  Performance Measurement
Plan. The performance evaluation shall  measure, as appropriate,
customer satisfaction, cycle times, cost price comparisons,
efficiency
and  effectiveness, and  financial performance.

10. Notwithstanding any other provision of law, the Director of the
Department of General  Services or his or her designee, in lieu of
the
Director of Finance, is  authorized to carry out the  provisions of
Section 31.00 of this act as it pertains to the positions funded  by
this
item and is not  required to notify the Chairperson of the Joint
Legislative Budget  Committee regarding any  position authorization,
blanket transfer, or reclassification of positions.

11. Notwithstanding any other provision of law, the Director of the
Department of General  Services (DGS) or his or her designee, in
lieu of the Director of Finance,  has the authority to  approve DGS'
Form 22's and Form 220's, including the extension of time to  expend
transferred  funds, the transfer of funds from one work order to
another, and the  Return of Funds Document.

12. Notwithstanding paragraph (2) of subdivision (a) of Section
19130 of  the Government Code,  and Section 279.2 of Title 2 of the
California Code of Regulations, the  Director of the  Department of
General Services or his or her designee may enter into  contracts for

personal  services comparable to state service, except that  the
director or his or her  designee may award  contracts to the lowest
responsible bidder.

13. (a) Notwithstanding any other provision of law, the Department
of  General Services (DGS)  may, with the agreement of the State
Personnel Board, waive specific  statutes within Part 2  (commencing
with Section 18500) of Division 5 of Title 2 of the  Government
Code, except that  nothing in this section shall infringe upon or
conflict with the merit  principles established under  the California

Constitution, nor shall this waiver include any of the  provisions
contained in  Chapter 10 (commencing with Section 19680) of Part 2
of Division 5 of  Title 2 of the  Government Code.

(b) Notwithstanding any other provision of law, the DGS may, with
the  agreement of the  Department of Personnel Administration,
waive specific statutes within  Part 2.6 (commencing  with Section
19815) of Division 5 of Title 2 of the Government Code for  the
purpose of  establishing "broadband" classifications or other pilot
projects, except that  nothing in this section  shall infringe upon
or
conflict with the merit principles established under  the California
Constitution.

14. The Department of General Services (DGS) shall be exempt from
Rule  444 of the State  Personnel Board, which requires advertising
vacant positions when filled by  transfer within or  between DGS
offices or other agencies, or by training and development
assignment. This  exemption does not provide an exemption from any
of the requirements  imposed by Section  19232, 19404, or 19790 of
the Government Code.

15. Notwithstanding Chapter 3 (commencing with Section 13940) of
Part 4  of Division 3 of Title  2 of the Government Code, the
Director of the Department of General  Services (DGS) or his or  her
designee is authorized to approve "relief from accountability" for
debts  owed to DGS up to  $5,000 when the DGS determines it
cannot collect the debts or when the  cost of collection  exceeds the

amount of the debt.

16. Notwithstanding Section 2807 of the Penal Code, the Director of
the  Department of General  Services or his or her designee is
authorized to procure goods from the  private sector even  though
the goods may be available through the Prison Industry Authority
(PIA) when, in his or  her discretion, it is cost-beneficial to do so
and
provided that the director,  or his or her designee,  continues to
include the PIA in soliciting quotations for goods.

17. Notwithstanding subdivision (a) of Section 948 of the
Government  Code, the Director of the  Department of General
Services or his or her designee, in lieu of the  Director of Finance,
is
authorized to certify funds for payment of all legal settlements and
tort  claims for which the DGS  already has sufficient expenditure
authority and funds without the need for  an augmentation.

18. Notwithstanding Section 965 of the Government Code, the
Director of  the Department of  General Services or his or her
designee, in lieu of the Director of Finance,  is authorized to
certify
funds for payment of all legal settlements and tort claims for which
the  DGS already has sufficient  expenditure authority and funds
without the need for an augmentation.

19. Notwithstanding Section 14876 of the Government Code, the
Director  of the Department of  Personnel Administration or his or
her designee shall establish salary and  wages for employees of  the
Office of State Printing pursuant to Sections 3516 to 3517.6,
inclusive,  of the Government  Code.

20. Notwithstanding Section 14850 and following, or Section 14901,
of  the Government Code,  no agency is required to use the Office of
State Printing for its printing  needs, and the Office of  State
Printing
may offer printing services to state and other government  agencies,
including cities,  counties, special districts, community college
districts, the California State  University, the  University of
California, and agencies of the United States government.



21. Notwithstanding Section 14851 of the Government Code, the
Office of  State Printing may  accept paid advertisements in state
publications or in publications  promoting an Office of State
Printing-supported project or program from any vendor that is
participating  as a partner in that  project or program, except that
the
Office of State Printing may not accept  or publish any paid
political
advertising.

22. Notwithstanding Section 16422 of the Government Code, the
Department of General Services  is required to report transfers of
the
Service Revolving Fund cash surplus  to the General Fund  only
when a transfer is made.

23. Notwithstanding Section 14959 of the Government Code, the
Director  of the Department of  General Services or his or her
designee, in lieu of the Director of Finance,  is authorized to
approve
and sign the Return of Fund Documents for transfers from the
Architecture Revolving  Fund.

24. Notwithstanding Section 965.2 of the Government Code, the
Director  of the Department of  General Services or his or her
designee, in lieu of the Director of Finance,  is authorized to
certify
funds for payment of all legal court settlements for projects funded
from  the Architecture  Revolving Fund, provided that a sufficient
fund balance exists in the work  order to pay the claim  and that the

payment does not require a budget augmentation to complete  the
project.

25. Notwithstanding Section 14957 of the Government Code, the
Director  of the Department of  General Services (DGS) or his or her
designee, in lieu of the Director of  Finance, is authorized to
approve
the deposit of checks directly into the Architecture Revolving  Fund.

The DGS shall  notify the Department of Finance within 30 days of
the date the DGS  makes such a deposit.

26. Notwithstanding Section 12439 of the Government Code, the
Department of General Services  is exempt from the provisions that
abolish, effective July 1, any positions  which were vacant
continuously during the period between October 1 and June 30 of the
preceding year.

27. Notwithstanding Section 11032 of the Government Code, the
Director  of the Department of  General Services, or his or her
designee, may authorize its employees to  travel outside the state or

country in lieu of the Director of Finance.

28. Notwithstanding any other provision of law, the Director of the
Department of General  Services, or his or her designee, may pre-pay
vendors when it is  cost-beneficial to the department.  In the event
the department incurs any losses due to the prepayment of  vendors,
the department  shall report such losses to the Joint Legislative
Budget Committee and to  the appropriate fiscal  committees of the
Legislature

29. Notwithstanding Sections 8647, 11005, and 11005.1 of the
Government Code, the  Department of General Services may accept
gifts and donations of real  property without approval  by the
Director of Finance. The Department of General Services shall bear
any costs associated  with the acceptance of those gifts and
donations, and the funds used for  this purpose. The  Department of
General Services shall not certify the fair market value of  any gift
or
donation of  real property without performing its own appraisal.
Upon receipt of any  gift or donation of real  property, the
Department of General Services shall certify to the  Department of
Finance in writing  that:



(a) The gift or donated property will have minimal impact on the
operation  and maintenance costs  and the Department of General
Services will absorb the costs within its  existing budget.

(b) The gift or donated property has no evidence or history of
environmental hazards or  contamination.

(c)  There are no lawsuits pending concerning the property, and clear

title  is a condition of the  acceptance of the gift or donation.


(d) The gift or donation has an estimated fair market value of less
than five  hundred thousand  dollars ($500,000).

(e) There are no provisions that will restrict the Department of
General  Services from divesting  title to the gift or donated
property.


(f) There are no structures on the property, or any structures on the

property will be razed.

  If one or more of the criteria listed in this provision are not
met, the
department shall obtain  approval from the Department of Finance to
accept the gift or donation of  real property.

  Any gifts and donations that will require future budget change
proposals  shall be submitted to  the Department of Finance for
approval.

30. Notwithstanding any other provision of law, the Department of
General  Services, or his or her  designee, in lieu of the Director
of
Finance, is authorized to carry out the  provisions of Section 26  of

this act as it pertains to the category transfers related to this
item.

31. Notwithstanding any other provision of law, the Department of
General  Services, or his or her  designee, in lieu of the Director
of
Finance, is authorized to approve  Budget Revision, Standard  Form
26.

32. Provisions 5 through 31, inclusive, of this item shall remain in
effect  only until the effective  date of the Budget Act of 1998 or
June 30, 1998, whichever occurs later.

1760-001-0768--For support of Department of General Services, for
payment to Item  1760-001-0666, payable from the Earthquake
Safety and Public Buildings  Rehabilitation Fund of  1990  . . .
833,000

1760-001-0961--For support of Department of General Services for
payment to Item  1760-001-0666, payable from the State School
Deferred Maintenance  Fund  . . . 137,000

1760-002-0003--For support of Department of General Services, for
rental  payments on lease  revenue bonds for payment to Item
1760-001-0666, payable from the  Motor Vehicle Parking  Facilities
Moneys Account, General Fund  . . . 1,154,000

Provisions:

1. The funds appropriated in this item are for the following:



(a) Base Rental and Fees  . . . 1,095,000



(b) Insurance  . . . 59,000

1760-002-0666--For support of Department of General Services, for
rental  payments on lease  revenue bonds, for payment to Item
1760-001-0666, payable from the  Service Revolving Fund  . .  .
25,394,000

Provisions:

1. The funds appropriated in this item are for the following:



(a) Base rental and fees  . . . 25,432,000



(b) Insurance  . . . 148,000



(c) Reimbursements  . . . -186,000

1760-011-0001--For support of Department of General Services, for
payment to Item  1760-001-0666  . . . 4,737,000

Provisions:

1. The funds appropriated in this item are for the following:



(a) Asbestos Abatement  . . . 1,638,000



(b) PCB Program  . . . 537,000



(c) Underground Storage Tank Program   . . . 2,562,000

2. The funds appropriated by this item may also be used for purposes
related to the remediation of  toxic sites for which the state is
responsible, provided that proposals to  transfer funds between
these
programs or for such other purposes shall be submitted in accordance
with Section 26.00 of  this act. These proposals shall detail the
reasons for the transfer and the  impact on the programs  for which
the transfer is proposed.

3. The unencumbered balance of any funds transferred from this item
into  the Architecture  Revolving Fund will be reverted at the close
of
the fiscal year.

1760-011-0602--For support of Department of General Services, for
activities other than the  Division of the State Architect, for
payment
to Item 1760-001-0666,  payable from the  Architecture Revolving
Fund  . . . 4,862,000

1760-015-0002--For support of Department of General Services, for
payment to Item  1760-001-0666, payable from the Property
Acquisition Law Account,  General Fund  . . .  1,735,000

Provisions:

1. The funds appropriated by this item are for strategic assessments
of  properties that have been  identified in the state Surplus
Property
Inventory, in the dollar amounts  indicated as follows:

(a) State Department of Developmental Services

(1) Agnews Developmental Center  . . . 650,000

(2) Sonoma Developmental Center   . . . 100,000

(3) Lanterman Developmental Center  . . . 100,000

(4) Camarillo Developmental Center   . . . 250,000

(5) Fairview Developmental Center   . . . 100,000

(b) Department of Forestry and Fire Protection

   (1) Black Mountain Conservation Camp  . . . 25,000

(c) Department of General Services

(1) San Diego State Garage . . . 50,000

(2) San Bernardino State Building . . . 50,000

(d) State Department of Mental Health

(1) Atascadero State Hospital . . . 50,000

(e) Department of Military

(1) Camp San Luis Obispo . . . 35,000

(2) Santa Cruz Armory . . . 35,000

(3) Hollister Armory . . . 10,000

(f) Department of Veterans Affairs

(1) Veterans' Home-Rector Canyon . . . 25,000

(2) Yountville Golf Course- Lease . . . 40,000

(g)  Department of Corrections

(1) California Institute for Men-Chino . . . 100,000

(2) Los Angeles Reception Center . . . 100,000

(h)Telecommunications Planning and Studies

(1) Various sites . . . 15,000

2. Funds appropriated by this item for the Camarillo Developmental
Center  shall be available only  if the property is not obtained by
the
California State University system.

3. Funds appropriated by this item may be transferred by the
Department of  General Services  between and among the projects
identified in Provision 1 as necessary.

1760-101-0022--For local assistance, Department of General
Services, for  reimbursement of local  agencies and service suppliers

or communications equipment companies for  costs incurred
pursuant to Sections 41137, 41137.1, 41138, and 41140 of the
Revenue  and Taxation Code,  payable from the State Emergency
Telephone Number Account, General  Fund  . . . 71,774,000

1760-301-0666--For capital outlay, Department of General Services,
payable from the Service  Revolving Fund  . . . 1,000,000

Schedule:

(1) 55.10.140-Food and Agriculture Building: 2nd/3rd Floor Office
Alteration  . . . 1,000,000

1760-301-0768--For capital outlay, Department of General Services,
payable from the  Earthquake Safety and Public Buildings
Rehabilitation Fund of 1990  . . .  47,295,000

Schedule:

(1) 50.99.017--DSA 304301.1-Department of Mental Health,
Norwalk CT  West A-E: Structural  Retrofit --Construction   . . .
11,724,000

(2) 50.99.018--DSA 304401.1-Department of Mental Health,
Norwalk CT  East A-E: Structural  Retrofit-Construction  . . .
11,744,000

(3) 50.99.021--DSA 302501-Department of Mental Health, Norwalk
Receiving & Treatment  Bldg 1:  Structural Retrofit-Construction  . .

. 5,318,000

(4) 50.99.029--Program management  . . . 695,000

(5) 50.99.032--DSA 11270-Department of the Military, Santa
Barbara  Armory: Structural  Retrofit-Construction  . . . 3,821,000



(6) 50.99.033--DSA 4337-Department of Corrections, Tehachapi
Educational and Vocational:  Structural Retrofit-Construction  . . .

198,000

(7) 50.99.034--DSA 421301.02-Department of Corrections, San
Quentin,  South Block:  Structural Retrofit-Construction  . . .
3,392,000

(8) 50.99.035--DSA 421501.02-Department of Corrections, San
Quentin  West Block: Structural  Retrofit-Construction  . . .
1,755,000

(9) 50.99.036--DSA 4339-Department of Corrections, Tehachapi
Kitchen/Laundry: Structural  Retrofit-Construction  . . . 137,000


(10) 50.99.038--DSA 24-Department of General Services, Santa Ana
State  Office Building:  Structural Retrofit-Construction  . . .
4,358,000

(11) 50.99.042--DSA 12796-Department of Education, Riverside
Building  Phase 1: Structural  Retrofit-Construction  . . . 179,000


(12) 50.99.043--DSA 10333-Department of Parks and Recreation,
Petaluma Adobe  SHP-Construction  . . . 809,000

(13) 50.99.044--DSA 3921-Department of Mental Health, Napa B
Ward:  Structural  Retrofit-Construction  . . . 1,652,000

(14) 50.99.045--DSA 3295-Department of Developmental Services,
Pomona B One Main  Kitchen-Construction  . . . 1,513,000

1760-491--Reappropriation, Department of General Services.
Notwithstanding any other  provision of law, the unencumbered
balance, as of June 30, 1997, of the  funds made available  pursuant
to Item 1760-101-768 of Section 2.00 of the Budget Act of 1994
(Ch. 139, Stats. 1994)  is reappropriated for the  purposes provided
in that item and shall be  available for expenditure  through June
30,
1998.

1880-001-0001--For support of State Personnel Board  . . .
5,612,000

Schedule:

(a) 10-Merit System Administration  . . . 11,633,000

(b) 40-Local Government Services  . . . 1,646,000

(c) 50.01-Administrative Services  . . . 3,846,000

(d) 50.02-Distributed Administrative Services  . . . -3,261,000

(e) Reimbursements  . . . -8,252,000

1900-001-0950--For support of Board of Administration of the
Public  Employees' Retirement  System, payable from the Public
Employees' Contingency Reserve Fund  . .  . 7,426,000

Provisions:

1. The appropriation made by this item is for support of the Board of

Administration pursuant to  Section 22840 of the Government Code.


1900-003-0830--For support of the Board of Administration of the
Public  Employees' Retirement  System, payable from the Public
Employees' Retirement Fund  . . .  (65,732,000)

Provisions:

1. The amount displayed in this item is based on the estimate by the
Public  Employees' Retirement  System of expenditures for external
investment advisors to be made during  the 1997-98 fiscal year
pursuant to Section 20216.5 of the Government Code. The Board of
Administration of the Public  Employees' Retirement System shall
report to the fiscal committees of the  Legislature and the  Joint
Legislative Budget Committee on or before January 10, 1998,
regarding any revision of this  estimate, including an accounting and

explanation of changes, and the  amount of, and basis for,
investment advisor expenditures proposed for the 1998-99 fiscal
year. The  Board of  Administration of the Public Employees'
Retirement System shall report on  or before January 10,  1999, on
the final expenditures under this item, including an accounting  and
explanation of  changes from estimates previously reported to the
Legislature.

2. Each of the two reports described in Provision 1 also shall
include
all of  the following:

(a) A statement of expected returns on investments managed or
advised by  outside advisers,  compared to costs and expected
returns if in-house advisors were to be  used.

(b) A description of the actions the Public Employees' Retirement
System  will take to ensure that  any future expenditures for outside

advisors will result in a greater return  on investments,  including
costs for these advisors, than if in-house advisors were used.

(c) Separate listings of advisor contracts in effect, and approved,
during the  1996-97 and 1997-98  fiscal years, with (1) amounts
(total contract and annual basis) for each  contract for base fees
and
performance-based fees, (2) summary statements of the purposes of
each  contract.

1900-005-0001--For transfer by the State Controller to the Public
Employees' Retirement Fund  from other unallocated funds in the
General Fund  . . . (587,529,000)

Provisions:

1. The amount in this item reflects the actual General Fund share of
the  state's contribution for the  1995-96 fiscal year to be paid and

transferred to the Public Employees'  Retirement Fund on July  1,
1997, pursuant to Section 20751 of the Government Code.

1900-005-0494--For transfer by the State Controller to the Public
Employees' Retirement Fund  from other unallocated special funds  .
. . (236,216,000)

Provisions:

1. The amount in this item is for transfer for the special fund share
of
the  state's contribution  required by Section 20752 of the
Government Code.

1900-005-0988--For transfer by the State Controller to the Public
Employees' Retirement Fund  from other unallocated
nongovernmental cost funds  . . . (188,917,000)

Provisions:

1. The amount in this item is for transfer for the nongovernmental
cost fund  share of the state's  contribution required by Section
20752 of the Government Code.

1900-015-0815--For support of Board of Administration of the
Public  Employees' Retirement  System, payable from the Judges'
Retirement Fund  . . . (354,000)

Provisions:

1. Notwithstanding any other provision of law, the Board of
Administration  of the Public  Employees' Retirement System
(PERS), in accordance with all applicable  provisions of the
California Constitution, shall submit to the Controller, the
Department of  Finance, the Joint  Legislative Budget Committee,
and the fiscal committees of the  Legislature, all of the following:


(a) No later than January 10, 1998, a copy of the proposed budget
for  PERS for the 1998-99  fiscal year as included with the
Governor's Budget.

(b) No later than May 15, 1998, a copy of the proposed budget for
PERS  for the 1998-99 fiscal  year as approved by the Board of
Administration.

(c) The revisions to the proposed budget for PERS for the 1997-98
fiscal  year, as recommended  by the PERS Finance Committee, at
least 30 days prior to the consideration  of those revisions by  the
Board of Administration.

(d) Commencing October 1, 1997, all expenditure and performance
workload data provided to  the Board of Administration, as updated
on a quarterly basis. This quarterly  update information is  to be
submitted to the Joint Legislative Budget Committee and the fiscal
committees of the  Legislature, and shall be in sufficient detail to
be
useful for legislative  oversight purposes and to  sustain a thorough

ongoing review of Public Employees' Retirement  System
expenditures.

1900-015-0820--For support of Board of Administration of the
Public  Employees' Retirement  System, payable from the Legislators'
Retirement Fund  . . . (202,000)

Provisions:

1. Notwithstanding any other provisions of law, the Board of
Administration of the Public  Employees' Retirement System, in
accordance with all applicable provisions  of the California
Constitution, shall submit to the Controller, the Department of
Finance, the  Joint Legislative  Budget Committee, and the fiscal
committees of the Legislature all of the  following:

(a) A copy of the proposed budget for the Public Employees'
Retirement  System for the 1998-99  fiscal year by January 10, 1998,
as included with the Governor's Budget.

(b) A copy of the proposed budget for the Public Employees'
Retirement  System for the 1998-99  fiscal year as approved by the
Board of Administration by May 15, 1998.

(c) The revisions to the proposed budget for the Public Employees'
Retirement System for the  1997-98 fiscal year as recommended by
the Public Employees' Retirement  System Finance  Committee at
least 30 days prior to consideration of those revisions by the  Board

of  Administration.

(d) Commencing October 1, 1997, all expenditure and performance
workload data provided to  the Board of Administration, updated on
a quarterly basis, shall be  submitted to the Joint  Legislative
Budget
Committee and the fiscal committees of the Legislature.  The
quarterly update  information submitted to the Legislature shall be
in
sufficient detail to be  useful for legislative  oversight purposes
and to
sustain a thorough ongoing review of the  expenditures of the Public
Employees' Retirement System.

1900-015-0830--For support of Board of Administration of the
Public  Employees' Retirement  System,  payable from the Public
Employees' Retirement Fund  . . .  (92,492,000)

Provisions:

1. Notwithstanding any other provision of law, the Board of
Administration  of the Public  Employees' Retirement System, in
accordance with all applicable provisions  of the California
Constitution, shall submit to the Controller, the Department of
Finance, the  Joint Legislative  Budget Committee, and the fiscal
committees of the Legislature, all of the  following:

(a) A copy of the proposed budget for the Public Employees'
Retirement  System for the 1998-99  fiscal year by January 10, 1998,
as included with the Governor's Budget.

(b) A copy of the proposed budget for the Public Employees'
Retirement  System for the 1998-99  fiscal year as approved by the
Board of Administration by May 15, 1998.

(c) The revisions to the proposed budget for the Public Employees'
Retirement System for the  1997-98 fiscal year as recommended by
the Public Employees' Retirement  System Finance  Committee at
least 30 days prior to consideration of those revisions by the  Board

of  Administration.

(d) Commencing October 1, 1997, all expenditure and performance
workload data provided to  the Board of Administration, updated on
a quarterly basis, shall be  submitted to the Joint  Legislative
Budget
Committee and the fiscal committees of the Legislature.  The
quarterly update  information submitted to the Legislature shall be
in
sufficient detail to be  useful for legislative  oversight purposes
and to
sustain a thorough ongoing review of the  expenditures of the Public
                                                   Employees'
Retirement System.

1900-015-0962--For support of Board of Administration of the
Public  Employees' Retirement  System, payable from the Volunteer
Firefighters' Length of Service Award  System Fund   . . .  (76,000)



Provisions:

1. Notwithstanding any other provision of law, the Board of
Administration  of the Public  Employees' Retirement System, in
accordance with all applicable provisions  of the California
Constitution, shall submit to the Controller, the Department of
Finance, the  Joint Legislative  Budget Committee, and the fiscal
committees of the Legislature, all of the  following:

(a) A copy of the proposed budget for the Public Employees'
Retirement  System for the 1998-99  fiscal year by January 10, 1998,
as included with the Governor's Budget.

(b) A copy of the proposed budget for the Public Employees'
Retirement  System for the 1998-99  fiscal year as approved by the
Board of Administration by May 15, 1998.

(c) The revisions to the proposed budget for the Public Employees'
Retirement System for the  1997-98 fiscal year recommended by the
Public Employees' Retirement  System Finance  Committee, at least
30 days prior to consideration of those revisions by the  Board of
Administration.

(d) Commencing October 1, 1997, all expenditure and performance
workload data provided to  the Board of Administration, updated on
a quarterly basis, shall be  submitted to the Joint  Legislative
Budget
Committee and the fiscal committees of the Legislature.  The
quarterly update  information submitted to the Legislature shall be
in
sufficient detail to be  useful for legislative  oversight purposes
and to
sustain a thorough ongoing review of the  expenditures of the Public
Employees' Retirement System.

1920-001-0835--For support of State Teachers' Retirement System,
payable from the State  Teachers' Retirement Fund  . . . 37,818,000



Schedule:

(a) 10-Services to Members and Employers  . . . 38,180,000

(b) Reimbursements  . . . -262,000

(c) Amount payable from the Supplemental Benefit Maintenance
Account  in the Teachers'  Retirement Fund pursuant to Section
22954 of the Education Code  . . .  -100,000

Provisions:

1. This item shall not be subject to the requirements of subdivision
(b), (c),  (d), or (e) of Section  31.00 of this act. Nothing in this

provision shall be construed as exempting  this item from
requirements of the State Civil Service Act or from requirements of
laws,  rules, and regulations  administered by the Department of
Personnel Administration.

1920-002-0835--For external investment advisors, payable from the
State  Teachers' Retirement  Fund  . . . (52,600,000)

Provisions:

1. The amount displayed in this item is for informational purposes
only, and  is based on the  current estimate by the State Teachers'
Retirement System (STRS) of  expenditures for external  investment
advisors to be made during the 1997-98 fiscal year pursuant to
Section 22353 of the  Education Code. The STRS shall report to the
fiscal committees of the  Legislature and the Joint  Legislative
Budget Committee no later than January 10, 1998, regarding  any
revision of this  estimate, including an accounting and explanation
of
the changes, and  regarding the amount of,  and basis for, investment

advisor expenditures proposed for the 1998-99  fiscal year. The
STRS  shall report on or before January 10, 1999, on the final
expenditures under  this item, including an  accounting and
explanation of changes from estimates previously reported  to the
Legislature.

2. Each of the two reports described in Provision 1 also shall
include
all of  the following:

(a) A statement of expected returns on investments managed or
advised by  outside advisors,  compared to costs and expected
returns if in-house advisors were to be  used.

(b) A description of the actions the State Teachers' Retirement
System will  take to ensure that any  future expenditures for outside

advisors will result in a greater return on  investments, including
costs for these  advisors, than if in-house advisors were used.

(c) Separate listings of advisor contracts in effect, and approved,
during the  1996-97 and 1997-98  fiscal years, with (1) amounts
(total contract and annual basis) for each  contract for base fees
and
performance-based fees, (2) summary statements of the purposes of
each  contract.

1920-011-0001--For transfer by the State Controller to the Teacher's
Retirement Fund from the  General Fund  . . . (925,513,000)

Schedule:

(a) Elder Full Funding  . . . (576,373,000)

(b) Supplemental Benefit Maintenance Account  . . . (349,140,000)


Provisions:

1. The estimated amount referenced in Schedule (a) is the state's
contribution required by Section  22955 of the Education Code.

2. The estimated amount referenced in Schedule (b) is the state's
contribution required by Section  22954 of the Education Code.

1920-490--Reappropriation, State Teachers' Retirement System
(STRS).  Notwithstanding any  other provision of law, up to
$1,172,000 of the unexpended balance as of  June 30, 1997, of the
appropriation identified in the following citation is reappropriated,

subject  to the limitations set  forth in Provision 1, and shall be
available for encumbrance and  expenditure until June 30, 1998.  Any
amount of this reappropriation that is not expended in 1997-98 shall
be carried over to  1998-99 and is hereby reappropriated. In no event

shall the total amounts  reappropriated for the  1998-99 budget
exceed three percent of STRS' 1997-98 appropriation.

835--State Teachers' Retirement Fund

(1) Item 1920-001-835, Budget Act of 1996.

Provisions:

1. The funds reappropriated in this item shall be available for
expenditure  by the State Teachers'  Retirement System for the
purposes of meeting unanticipated system costs  and promoting
better  service to the system's membership. The funds may not be
encumbered  without advance approval  of the State Teachers'
Retirement Board. The board shall report to the  Legislature on a
quarterly  basis throughout the 1997-98 fiscal year on expenditures
made pursuant to  this item.

                              BUSINESS, TRANSPORTATION AND
HOUSING



2100-001-0081--For support of Department of Alcoholic Beverage
Control, payable from  Alcohol Beverage Control Fund

29,053,000

Schedule:

(a) 10.10-Licensing  . . . 16,926,000

(b) 10.20-Compliance  . . . 12,996,000

(c) 10.30.010-Administration  . . . 2,843,000

(d) 10.30.020-Distributed Administration  . . . -2,843,000

(e) Reimbursements  . . . -869,000

2100-101-0081--For local assistance, Department of Alcoholic
Beverage  Control, Program  10.20-Compliance, for grants to local
law enforcement agencies  . . .  1,000,000

Provisions:

1. Notwithstanding any other provisions of law, the Department of
Alcoholic Beverage Control is  authorized to grant funds to local law

enforcement agencies for the  purpose of enhancing  enforcement of
alcoholic beverage control laws in the local jurisdiction.

2. Notwithstanding any other provisions of law, at the discretion of
the  Director, Department of  Alcoholic Beverage Control the
Department may advance grant funds to  local law enforcement
agencies.

3. Notwithstanding any other provisions of law, at the discretion of
the  Director, Department of  Alcoholic Beverage Control, title to
any authorized equipment purchased  by the local law  enforcement
agency pursuant to the grant may be vested in the local law
enforcement agency at  the conclusion of the grant period.

2120-001-0117--For support of Alcoholic Beverage Control Appeals
Board, Program 10, payable  from the Alcoholic Beverage Control
Appeals Fund  . . . 550,000

2150-001-0240--For support of the Department of Financial
Institutions,  for payment to Item  2150-001-0298, payable from the
Local Agency Security Deposit Fund  . .  . 127,000

2150-001-0298--For support of the Department of Financial
Institutions,  payable from the  Financial Institutions Fund  . . .
16,683,000

Schedule:

(a) 10-Licensing and Supervision of Banks and Trust Companies  . . .
14,958,000

(b) 20-Payment Instruments  . . . 515,000

(c)  30-Certification of Securities  . . . 10,000

(d) 40-Administration of Local Agency Security  . . . 127,000

(e) 50-Supervision of California Business and Industrial
Development  Corporations  . . . 28,000

(f) 60-Credit Unions  . . . 2,335,000

(g) 70-Savings and Loan  . . . 220,000

(h) 80-Industrial Loan Companies  . . . 1,111,000

(i) 90.01-Administration  . . . 3,631,000

(j) 90.02-Distributed Administration  . . . -3,631,000

(k) Reimbursements  . . . -159,000

(l) Amount payable from the Local Agency Deposit Security Fund
(Item  2150-001-0240)  . . .  -127,000

(m) Amount payable from the Credit Union Fund (Item
2150-001-0299)  .  . . -2,335,000

2150-001-0299--For support of the Department of Financial
Institutions,  for payment to Item  2150-001-0298, payable from the
Credit Union Fund  . . . 2,335,000

2180-001-0067--For support of Department of Corporations,
payable from  the State  Corporations  Fund  . . . 29,516,000

Schedule:

(a) 10-Investment Program  . . . 13,446,000

(b) 20-Lender-Fiduciary Program  . . . 7,203,000

(c) 30-Health Care Program  . . . 8,867,000

(d) 50.01-Administration  . . . 3,862,000

(e) 50.02-Distributed Administration  . . . -3,862,000

Provisions:

1. The amount appropriated in this item may include revenues
derived from  the assessment of  fines and penalties imposed as
specified in Chapter 654, Statutes of 1995.

2240-001-0001--For support of the Department of Housing and
Community Development  . . .  4,469,000

Schedule:

(a) 10-Codes and Standards Program  . . . 18,218,000

(b) 20-Community Affairs Program  . . . 11,171,000

(c) 30.01-Housing Policy Development Program  . . . 1,258,000

(d) 30.02-Distributed Housing Policy Development Program  . . .
-122,000

(e) 50.01-Administration  . . . 8,413,000

(f) 50.02-Distributed Administration  . . . -8,413,000

(g) Reimbursements  . . . -395,000

(h) Amount payable from the Mobilehome Park Revolving Fund
(Item  2240-001-0245)  . . .  -3,617,000

(i) Amount payable from the Mobilehome Park Purchase Fund (Item
2240-001-0530)  . . .  -575,000

(j) Amount payable from the Rural Predevelopment Loan Fund (Item
2240-001-0635)  . . .  -135,000

(k) Amount payable from the Mobilehome-Manufactured Home
Revolving  Fund (Item  2240-001-0648)  . . . -13,241,000

(l) Amount payable from the Self-Help Housing Fund (Item
2240-001-0813)  . . . -116,000

(m) Amount payable from the Federal Trust Fund (Item
2240-0010890)  . .  . -4,818,000

(n) Amount payable from the Housing Rehabilitation Loan Fund
(Item  2240-001-0929)  . . .  -1,938,000

(o) Amount payable from the Rental Housing Construction Fund
(Item  2240-001-0938)  . . .  -652,000

(p) Amount payable from the Emergency Housing and Assistance
Fund  (Item 2240-001-0985)  . .  . -569,000

2240-001-0245--For support of Department of Housing and
Community  Development, for  payment to Item 2240-001-0001,
payable from the Mobilehome Park  Revolving Fund  . . .  3,617,000


2240-001-0530--For support of Department of Housing and
Community  Development, for  payment to Item 2240-001-0000,
payable from the Mobilehome Park  Purchase Fund  . . . 575,000

  2240-001-0635--For support of the Department of Housing and
Community Development, for  payment to Item 2240-001-0001,
payable from the Rural Predevelopment  Loan Fund  . . .  135,000


2240-001-0648--For support of the Department of Housing and
Community Development, for  payment to Item 2240-001-0001,
payable from the  Mobilehome-Manufactured Home Revolving  Fund
. . . 13,241,000

Provisions:

1. Notwithstanding Section 18077 of the Health and Safety Code, or
any  other provision of law,  the first $2,388,000 in revenues
collected by the Department of Housing  and Community
Development from manufactured home license fees shall be
deposited in  the  Mobilehome-Manufactured Home Revolving Fund,
and shall be available  to the department for  the support,
collection,
administration, and enforcement of manufactured  home license fees.


2. Notwithstanding Section 18077.5 of the Health and Safety Code,
or any  other provision of law,  the Department of Housing and
Community Development is not required  to comply with the
reporting requirement of Section 18077.5 of the Health and Safety
Code.

2240-001-0813--For support of the Department of Housing and
Community Development, for  payment to Item 2240-001-0001,
payable from the Self-Help Housing  Fund  . . . 116,000

2240-001-0890--For support of Department of Housing and
Community  Development, for  payment to Item 2240-001-0001,
payable from the Federal Trust Fund  . . .  4,818,000

2240-001-0929--For support of Department of Housing and
Community  Development, for  payment to Item 2240-001-0001,
payable from the Housing Rehabilitation  Loan Fund  . . .  1,938,000



2240-001-0938--For support of Department of Housing and
Community  Development, for  payment to Item 2240-001-0001,
payable from the Rental Housing  Construction Fund  . . .  652,000



2240-001-0985--For support of the Department of Housing and
Community Development, for  payment to Item 2240-001-0001,
payable from the Emergency Housing  Assistance Fund  . . .  569,000


2240-101-0001--For local assistance, Department of Housing and
Community Development  . . .  4,404,000

Schedule:

(a) 20-Community Affairs  . . . 103,404,000

(b) Amount payable from the Federal Trust Fund (Item
2240-101-0890)  . .  . -99,000,000

2240-101-0843--For local assistance, Department of Housing and
Community Development,  payable from the California Housing
Trust Fund  . . . (2,143,000)

Schedule:

(a) For transfer to the Emergency Housing and Assistance Fund
(985)  . . .  (2,143,000)

Provisions:

1. In addition to the amount of the transfer authorized by this item,

all  accumulated interest or  other income to the Housing Trust Fund
shall be transferred to the  Emergency Housing  Assistance Fund
(985).

2240-101-0890--For local assistance, Department of Housing and
Community Development, for  payment to Item 2240-101-0001,
payable from the Federal Trust Fund  . . .  99,000,000

Provisions:

1. Notwithstanding any other provision of law, federal funds
appropriated  by this act but not  encumbered by June 30 may be
expended in the subsequent fiscal year.

2240-102-0001--For local assistance, Department of Housing and
Community Development, for  transfer to the Special Deposit
Fund--Office of Migrant Services (942)  . . .  2,500,000

2240-295-0001--For local assistance, Department of Housing and
Community Development, for  reimbursement, in accordance with
the provisions of Section 6 of Article  XIII B of the California
Constitution or of Section 17561 of the Government Code, of the
costs of  any new program or  increased level of service of an
existing program mandated by statute or  executive order, State
Controller  . . . 0

Schedule:

(1) 98.01.114.380--Regional Housing Needs Assessments (Ch. 1143,
Stats. 1980)  . . . 0

Provisions:

1. Pursuant to Section 17581 of the Government Code, mandates
identified  in the appropriation  schedule of this item with an
appropriation of $0 and included in the  language of this provision
are  specifically identified by the Legislature for suspension during

the 1997-98  fiscal year:

(a) Regional Housing Needs Assessments (Ch. 1143, Stats. 1980).


2310-001-0400--For support of the Office of Real Estate Appraisers
payable from the Real Estate  Appraisers Regulation Fund  . . .
3,821,000

Schedule:

(a) 10-Administration of the Real Estate Appraisers Program  . . .
4,096,000

(b) Reimbursements  . . . -275,000

2320-001-0317--For support of Department of Real Estate, payable
from  the Real Estate Fund  . .  . 26,492,000

Schedule:

(a) 10-Licensing and Education  . . . 6,232,000

(b) 20-Enforcement and Recovery  . . . 16,349,000

(c) 30-Subdivisions  . . . 4,786,000

(d) 40.10-Administration  . . . 5,424,000

(e) 40.20-Distributed Administration  . . . -5,424,000

(f) Reimbursements  . . . -875,000

2600-001-0042--For support of California Transportation
Commission, for  payment to Item  2600-001-0046, payable from the
State Highway Account, State  Transportation Fund  . . .  179,000



2600-001-0046--For support of California Transportation
Commission,  payable from the  Transportation Planning and
Development Account, State Transportation  Fund  . . . 1,284,000


Schedule:

(a) 10-Administration of California Transportation Commission  . . .
1,463,000

(b) Amount payable from the State Highway Account, State
Transportation Fund (Item  2600-001-0042)  . . . -179,000

2640-101-0046--For local assistance, Special Transportation
Programs,  notwithstanding Section  99312 of the Public Utilities
Code, for allocation by the Controller, payable  from the
Transportation Planning and Development Account, State
Transportation  Fund  . . . 84,800,000

Provisions:

1. Notwithstanding Sections 99313 and 99314 of the Public Utilities
Code,  not more than  $56,521 of the amount appropriated by this
item shall reimburse the  Controller for expenditures  for
administration of State Transportation Assistance funds.

2660-001-0041--For support of Department of Transportation, for
payment to Item  2660-001-0042, payable from the Aeronautics
Account, State  Transportation Fund  . . .  2,573,000

2660-001-0042--For support of Department of Transportation,
payable  from the State Highway  Account, State Transportation
Fund.  . . . 1,392,296,000

Schedule:

(a) 10-Aeronautics  . . . 2,884,000

(b) 20.10-Highway Transportation-- Capital Outlay Support  . . .
672,417,000

(c) 20.30-Highway Transportation-- Local Assistance  . . .
10,336,000

(d) 20.40-Highway Transportation-- Program Development  . . .
61,820,000

(e) 20.65-Highway Transportation-- Legal  . . . 61,428,000

(f) 20.70-Highway Transportation-- Operations  . . . 111,194,000


(g) 20.80-Highway Transportation-- Maintenance  . . . 630,323,000


(h) 20.90-Highway Transportation: Telecommunications  . . .
12,218,000

(i) 30-Mass Transportation  . . . 78,218,000

(j) 40-Transportation Planning  . . . 18,166,000

(k) 50.00-Administration  . . . 177,544,000

(l) 60.10-Equipment Service Center  . . . 135,110,000

(m) 60.20-Distributed Equipment Service Center  . . . -135,110,000


(n) Reimbursements  . . . -43,725,000

(o) Amount payable from the Aeronautics Account, State
Transportation  Fund (Item  2660-001-0041)  . . . -2,573,000

(p) Amount payable from the Bicycle Lane Account, State
Transportation  Fund (Item  2660-001-0045)  . . . -10,000

(q) Amount payable from the Transportation Planning and
Development  Account, State  Transportation Fund (Item
2660-001-0046)  . . . -87,895,000

(s) Amount payable from the Federal Trust Fund (Item
2660-0010890)  . .  . -310,049,000

Provisions:



1. For purposes of the funds appropriated in Schedules (b) to (h),
inclusive,  Program  20--Highway Transportation. Upon approval of
the Department of  Finance, the department shall  notify the
chairpersons of the fiscal committees and the Chairperson of the
Joint Legislative  Budget Committee at least 20 days prior to
spending funds to expand  activities above budgeted  levels or to
implement a new activity not identified in this act, including any
of
those expenditures  to be funded through a transfer of money from
other expenditure  categories or programs, except  in the case of
emergency work increases caused by snow, storm, or earth
movement damage.

2. From funds appropriated by this item, the Department of
Transportation  may enter into  interagency agreements with the
Department of the California Highway  Patrol to compensate that
department for the cost of work performed by patrol officers at or
near  state highway  construction projects so as to reduce the risk
of
occurrence of serious  motor vehicle accidents.

3. Notwithstanding any other provision of law, funds appropriated in
schedule (b) of this item  from the State Highway Account may be
reduced and replaced by an  equivalent amount of federal  funds
determined by the department to be available and necessary to
comply with Section 8.5 of  this Act and the most effective
management of state transportation  resources. To the extent that
State Highway Account funds are reduced pursuant to this provision,
the  department may  transfer, with the approval of the Business,
Transportation and Housing  Agency, and upon  authorization by the
Director of Finance, all or a part of the savings to Item
2660-325-0042 for  Capital Outlay projects approved by the
California Transportation  Commission. The Director of  Finance
shall authorize the transfer not sooner than 30 days after
notification
in writing to the  chairpersons in each house that considers
appropriations and the  chairperson of the Joint  Legislative Budget
Committee.

4. Notwithstanding any other provision of law, whenever the cash
balance  in the State Highway  Account is or will be exhausted, and
upon the approval of a quarterly plan  of transfers by the
Department of Finance, the Director of the Department of
Transportation  may authorize the  Controller to direct the transfer
of
all or any part of the cash balance not  needed in the other
accounts
under the control of the Department of Transportation to the  State
Highway Account.  The Department of Transportation shall prepare
a quarterly plan that  forecasts the amounts,  sources, and timing of

funds to be transferred during the quarter, and  request the approval

of the  Department of Finance for the plan. The Department of
Finance shall have  five working days to  approve or deny the plan;
otherwise, the plan shall be deemed to have been  approved. All
money  so transferred shall be returned to the funds or accounts from

which it was  transferred as soon as  there is sufficient money in
the
State Highway Account to return it, but in  no circumstances shall
the loan exceed 30 days. No transfer shall be made to the State
Highway  Account under this  provision if the transfer would impede
the ability of the transferring  account to meet statutory or
contractual commitments. Interest shall be paid from the State
Highway  Account to the  transferring account for any transfer
authorized by this provision at the  Pooled Money Investment
Account rate.

2660-001-0045--For support of Department of Transportation, for
payment to Item  2660-001-0042, payable from the Bicycle Lane
Account, State  Transportation Fund  . . . 10,000

2660-001-0046--For support of Department of Transportation, for
payment to Item  2660-001-0042, payable from the Transportation
Planning and  Development Account, State  Transportation Fund  . .
. 87,895,000

Provisions:

1. For Program 30--Mass Transportation. Of the $56,347,000
appropriated  by this item for  intercity rail, $54,159,000 shall be
available to support existing service on  the three  state-supported
intercity rail routes and $2,188,000 is intended for the  expansion
of
the San  Joaquin route service from Stockton to Sacramento during
the 1997-98  fiscal year. The California  Transportation Commission
and the Secretary of Business, Transportation  and Housing shall not
allocate any of the $56,347,000 identified in this provision for any
purpose  other than those  identified in this provision without the
prior written approval of the  Department of Finance, and  no sooner
than 30 days after notification in writing to the Chairpersons of
the
fiscal committees of  each house of the Legislature and the
Chairperson of the Joint Legislative  Budget Committee, or  not
sooner than whatever lesser time the Chairperson of the joint
committee, or his or her  designee, may in each instance determine.



2. Of the funds appropriated in this item, an amount not to exceed
$291,000 shall be made  available to be used exclusively for the
support of the High Speed Rail  Authority at the direction  of the
Authority pursuant to Chapter 796 of the Statutes of 1996.

2660-001-0608--For support of Department of Transportation,
payable  from the Equipment  Service Fund  . . . 135,110, 000

2660-001-0890--For support of Department of Transportation, for
payment to Item  2660-001-0042, payable from the Federal Trust
Fund  . . . 310,049,000

Provisions:



1. For Program 20--Highway Transportation. For purposes of the
Streets  and Highways Code, all  expenditures from this item shall be

deemed to be expenditures from the  State Highway Account,  State
Transportation Fund.

2. For Program 20--Highway Transportation. Federal funds may be
received from any federal  source, and shall be deposited in the
Federal Trust Fund. Any federal  reimbursements shall be  credited to

the account from which the expenditures were originally made.

3. Notwithstanding any other provision of law, the Director of
Finance may  augment this item by  any amount of federal funds
which may be determined to be available to  offset State Highway
Account expenditures pursuant to Provision 3 in Item
2660-001-0042.

2660-007-0042--For support of Department of Transportation,
Program  20, Highway  Transportation, payable from the State
Highway Account, State  Transportation Fund  . . .  18,370,000

Provisions:

1. The funds appropriated by this item may be expended only to
attain  compliance with the  storm-water discharge provisions of the

National Pollutant Discharge  Elimination System permits  as
promulgated by the State Water Resources Control Board or
regional  water quality control  boards, or as ordered by the federal

courts.

2660-011-0041--For transfer by the State Controller from the
Aeronautics  Account, State  Transportation Fund, to the
Transportation Planning and Development  Account, State
Transportation Fund, as  prescribed by Section 21682.5 of the Public
Utilities Code  . . . (30,000)

2660-012-0042--For payment of deficiencies in appropriations for
the  Department of  Transportation which may be authorized by the
Director of Finance,  payable from the State  Highway Account  . . .

(40,000,000)

Provisions:

1. The Director of Finance shall report allocations from this
appropriation  in the same manner as  required for reporting
allocations from Item 9840-001-0494 of this act.

2660-021-0042--For transfer by the State Controller from the State
Highway Account, State  Transportation Fund, to the Transportation
Planning and Development  Account, State  Transportation Fund, as
prescribed by Section 194 of the Streets and  Highways Code  . . .
(14,070,000)

2660-022-0042--For transfer by the State Controller from the State
Highway Account, State  Transportation Fund, to the Environmental
Enhancement and Mitigation  Demonstration Account,  State
Transportation Fund, as prescribed by Chapter 106, Statutes of 1989
. . . (5,828,000)

2660-101-0042--For local assistance, Department of Transportation,
payable from the State  Highway Account, State Transportation
Fund  . . . 449,802,000

Schedule:

(a) 20.25-Highway Transportation-- State Local Partnership  . . .
200,000,000

(b) 20.30-Local Assistance  . . . 129,556,000

(c) 30-Mass Transportation  . . . 120,246,000

Provisions:

1. Funds appropriated in item (a) shall be available for allocation
by
the  California Transportation  Commission in the 1997-98 fiscal
year. Allocation funds shall be available  for expenditures in the
1997-98, 1998-99, 1999-2000 and 2000-01 fiscal years.

2. Funds appropriated in item (b) and (c) shall be available for
allocation by  the California  Transportation Commission in the
1997-98, 1998-99, and 1999-2000 fiscal  years.

3. Notwithstanding other provisions of law, up to five percent of any

amounts scheduled within  item (b) or (c) may be transferred to Item
2660-301-0042 under emergency  situations, for  implementation of
cost savings programs, or to maximize the use of federal  funds.
These transfers  shall require the prior approval of the California
Transportation  Commission and the Department  of Finance.

4. Notwithstanding other provisions of law, funds appropriated
within  Schedule (b) may be  transferred to Schedule (c), and funds
appropriated within Schedule (c)  may be transferred to  Schedule
(b). These transfers shall require the prior approval of the
California
Transportation  Commission and the Department of Finance. These
funds shall be available  for allocation by the  Commission in
1997-98, 1998-99 and 1999-2000 fiscal years.

5. Notwithstanding other provisions of law, funds scheduled in items
(b) or  (c) may be transferred  to Item 2660-301-0042. These
transfers shall require the prior approval of  the California
Transportation Commission and the Department of Finance. The
Department of Finance shall  authorize any transfer pursuant to this
provision not sooner than 30 days  after notification in  writing to
the
chairpersons in each house which considers appropriations  and the
Chairperson of  the Joint Legislative Budget Committee. Such
transfers shall be available  for allocation by the  commission in
the
1997-98, 1998-99, and 1999-2000 fiscal years.

2660-101-0045--For local assistance, Department of Transportation,
Program 20--Highway  Transportation, payable from the Bicycle
Lane Account, State  Transportation Fund  . . . 460,000

2660-101-0046--For local assistance, Department of Transportation
Program 30--Mass  Transportation, payable from the Transportation
Planning and  Development Account, State  Transportation Fund  . .
. 82,259,000

Provisions:

1. Notwithstanding any other provision of law, the funds
appropriated in  this item for Transit  Capital Improvements shall be

available for allocation by the California  Transportation
Commission for the three year period 1997-98 through 1999-2000 as
established in Section  99318.4 of the Public Utilities Code. These
funds shall be available for  encumbrance and  expenditure through
the 2001-02 fiscal year.

2660-101-0183--For local assistance, Department of Transportation,
Program 20--Highway  Transportation, payable from the
Environmental Enhancement and  Mitigation Demonstration
Program Fund  . . . 10,000,000

2660-101-0853--For local assistance, Department of Transportation,
Program 30-Mass  Transportation, payable from the Petroleum
Violation Escrow Account  . .  . 17,741,000

Provisions:

1. Notwithstanding other provisions of law, the funds appropriated in

this  item for Transit capital  improvements shall be available for
allocation or reallocation, as directed  by the California
Transportation Commission, subject to the approval of the California
Energy Resources  Commission, during the 1997-98, 1998-99 and
1999-2000 fiscal years.

2660-101-0890--For local assistance, Department of Transportation,
payable from the Federal  Trust Fund  . . . 670,810,000

Schedule:

(a) 20-Highway Transportation  . . . 622,810,000

(b) 30-Mass Transportation  . . . 27,000,000

(c) 40-Transportation Planning  . . . 21,000,000

Provisions:



1. For Program 20--Highway Transportation. For purposes of the
Streets  and Highways Code, all  expenditures from this item shall be

deemed to be expenditures from the  State Highway Account,  State
Transportation Fund.

2. For Program 20--Highway Transportation. Federal funds may be
received from any federal  source, and shall be deposited in the
Federal Trust Fund. Any federal  reimbursements shall be  credited to

the account from which the expenditures were originally made.

3. Notwithstanding other provisions of law, funds appropriated
within  Schedule (a) may be  transferred to Schedule (b), and funds
appropriated within Schedule (b)  may be transferred to  Schedule
(a). Funds appropriated within Schedules (a) and (b) may be
transferred to Item  2660-301-0890. These transfers shall require the

prior approval of the  Department of Finance and  the California
Transportation Commission. These funds shall be available  for
allocation by the  commission and shall be available for expenditure
in the 1997-98, 1998-99  and 1999-2000 fiscal  years.

2660-301-0042--For capital outlay, Department of Transportation,
payable  from the State  Highway Account, State Transportation
Fund  . . . 976,521,000

Schedule:

(a) 20-Highway Transportation  . . . 1,506,521,000



(1) 20.20.101 Flexible Congestion Relief  . . . (394,817,000)



(2) 20.20.102 Interregional Road System  . . . (14,158,000)



(3) 20.20.103 Soundwalls  . . . (5,133,000)



(4) 20.20.204 Other Highway Construction  . . . (165,574,000)



(5) 20.20.205 Rehabilitation and Safety  . . . (336,839,000)



(6) 20.20.300 Traffic Systems Management  . . . (60,000,000)



(7) Reimbursements  . . . (530,000,000)

(b) Reimbursements  . . . -530,000,000

Provisions:



1. Notwithstanding any other provision of law, any amounts
scheduled  within this item for  Flexible Congestion Relief and
Traffic
Systems Management projects may  be transferred to Item
2660-101-0042 for local transportation projects pursuant to the
allocation  of project funds by the  California Transportation
Commission. These transfers shall require the  prior approval of the
California Transportation Commission and the Department of
Finance.  These funds shall be  available for expenditure during the
1997-98, 1998-99 and 1999-2000  fiscal years.

2. For Program 20--Highway Transportation. Notwithstanding any
other  provision of law, up to  five percent of the amounts scheduled

in this item may be transferred to  Item 2660-101-0042 of  this act
only under emergency situations, for implementation of cost  savings
programs, or to  maximize the use of federal funds. These transfers
shall require the prior  approval of the  California Transportation
Commission and the Department of Finance.



3. For Program 20--Highway Transportation. For each capital outlay
appropriation, the  department shall determine for reversion the
difference between the  appropriation and the total  amount needed
for encumbered projects, encumbered right-of-way, and  projects still

to be  scheduled for encumbrance against the appropriations. On or
before  December 15, 1997, the  department shall submit to the
Controller the estimated amounts to be  reverted as of June 30,
1997, from the 1995-96 and 1996-97 fiscal year appropriations.

4. For Program 20--Highway Transportation. Notwithstanding any
other  provision of law, funds  appropriated by this item may be
transferred to Item 2660-101-0042,  Schedule (b), by agreement
with those agencies described by subdivision (g) of Section 182.6 of
the  Streets and Highways  Code for federally apportioned highway
bridge replacement and  rehabilitation projects and Hazard
Elimination Safety Program projects, on a dollar-for-dollar basis.
Transferred and exchanged  funds shall only be used for projects
selected for these programs. These  transfers shall require the
prior
approval of the California Transportation Commission and the
Department of Finance.

2660-301-0890--For capital outlay, Department of Transportation,
payable  from the Federal  Trust Fund  . . . 784,000,000

Schedule:



(a) 20--Highway Transportation  . . . 784,000,000

Provisions:

1. For Program 20--Highway Transportation. Notwithstanding any
other  provision of law, any  amounts scheduled for Flexible
Congestion Relief projects, Traffic Systems  Management projects,
or Transportation Enhancement activities projects may be transferred
to  Item 2660-101-0890 for  local transportation projects pursuant to

the allocation of projects funds by  the California  Transportation
Commission. These transfers shall require the prior  approval of the
California  Transportation Commission and Department of Finance.
These transfers of  funds shall be  available for expenditure during
1997-98, 1998-99 and 1999-2000 fiscal  years.

2. For Program 20--Highway Transportation. Notwithstanding any
other  provision of law, up to  five percent of the amounts
appropriated by this item, may be transferred to  Item
2660-101-0890  only under emergency situations, for implementation
of cost savings  programs, or to maximize the  use of federal funds.

These transfers shall require the prior approval of the  California
Transportation Commission and the Department of Finance.

3. Provision 3 of Item 2660-301-0042 is also applicable to this item.





4. For Program 20--Highway Transportation. For purposes of the
Streets  and Highways Code, all  expenditures from this item shall be

deemed to be expenditures from the  State Highway Account,  State
Transportation Fund.

5. For Program 20--Highway Transportation. Federal funds may be
received from any federal  source, and shall be deposited in the
Federal Trust Fund. Any federal  reimbursements shall be  credited to

the account from which the expenditures were originally made.

2660-302-0046--For capital outlay, Department of Transportation,
payable  from the  Transportation Planning and Development
Account, State Transportation  Fund  . . . 0

Schedule:

(a) 30-Mass Transportation  . . . 50,000,000

(b) Reimbursements  . . . -50,000,000

2660-311-0042--For capital outlay, Department of Transportation,
payable  from the State  Highway Account, State Transportation
Fund  . . . 989,000

Schedule:

(1) 20.20.500-Studies, preplanning and budget packages  . . .
100,000

(2) 20.20.507-District 11--San Diego, Office Building: Seismic
Retrofit,  Preliminary Plans  . . .  412,000

(3) 20.20.508-Sacramento Headquarters Annex: Seismic Retrofit,
Preliminary Plans & Working  Drawings  . . . 477,000

Provisions:

1. For Program 20--Highway Transportation. Up to 20 percent of
the  funds appropriated in (2)  and (3) of this item may be
transferred
from Item 2660-301-0042 of this  act to enable the  California
Transportation Commission to allocate supplemental funds to
projects within this item.  The transfer may be made only with the
approval of the commission. Also,  the Department of  Finance shall
be notified of the transfer prior to the commission's approval  of
any
transfer or  allocation of those funds to any project.

2660-399-0042--For the Department of Transportation, for final cost
accounting of projects for  which appropriations have expired, for
state operations, local assistance, or  capital outlay, payable  from
the
State Highway Account, State Transportation Fund. Funds
appropriated in this item  shall be available for expenditure until
June
30, 1998  . . . 5,000,000

2660-491--Reappropriation, Department of Transportation.
Notwithstanding any other provision  of law, the unliquidated
encumbrances for the appropriations provided in  the following
citations,  are reappropriated until June 30, 1998. The unencumbered
balance shall  not be available for  encumbrance.

0042--State Highway Account

(1) Item 2660-101-042, Budget Act of 1990

(2) Item 2660-101-042, Budget Act of 1991

(3) Item 2660-125-042, Budget Act of 1992

(4) Item 2660-101-042, Budget Act of 1993

(5) Item 2660-101-042, Budget Act of 1994

0045--Bicycle Lane Account

(1) Item 2660-101-045, Budget Act of 1994

0046--Transportation Planning and Development Account

(1) Item 2660-101-046, Budget Act of 1989

(2) Item 2660-302-046, Budget Act of 1989

(3) Item 2660-101-046, Budget Act of 1990

(4) Item 2660-101-046, Budget Act of 1991

(5) Item 2660-125-046, Budget Act of 1992

(6) Item 2660-302-046, Budget Act of 1992

(7) Item 2660-101-046, Budget Act of 1993

(8) Item 2660-125-046, Budget Act of 1993

0853--Petroleum Violation Escrow Account

(1) Chapter 1427, Statutes of 1988

(2) Chapter 1434, Statutes of 1988

(3) Chapter 1435, Statutes of 1988

(4) Chapter 1648, Statutes of 1990

(5) Chapter 960, Statutes of 1991

(6) Item 2660-101-853, Budget Act of 1992

0890--Federal Trust Fund

(1) Item 2660-101-890, Budget Act of 1985

(2) Item 2660-101-890, Budget Act of 1986

(3) Item 2660-101-890, Budget Act of 1987

(4) Item 2660-101-890, Budget Act of 1990

(5) Item 2660-101-890, Budget Act of 1992

2660-493--Reappropriation, Department of Transportation.
Notwithstanding any other provision  of law, the appropriations in
the following citations are reappropriated to  enable the collection
of
outstanding federal reimbursements as of the end of June 30, 1997.
These  appropriations are not  available for encumbrance or
liquidation and shall revert on June 30, 1998:

0890--Federal Trust Fund

(1) Item 2660-001-890, Budget Act of 1985

(2) Item 2660-001-890, Budget Act of 1986

(3) Item 2660-001-890, Budget Act of 1987

(4) Item 2660-001-890, Budget Act of 1988

(5) Item 2660-001-890, Budget Act of 1989

(6) Item 2660-001-890, Budget Act of 1990

(7) Item 2660-001-890, Budget Act of 1991

(8) Item 2660-001-890, Budget Act of 1992

(9) Item 2660-001-890, Budget Act of 1993

2660-495--Reversion, Department of Transportation. As of June 30,
1997,  the unencumbered  balances of the appropriations provided in
the following citations shall  revert to the balance in the  fund
from
which the appropriation was made:

0042--State Highway Account

(1) Item 2660-101-042, Budget Act of 1984

(2) Item 2660-101-042, Budget Act of 1985

(3) Item 2660-101-042, Budget Act of 1986

(4) Item 2660-101-042, Budget Act of 1987

(5) Item 2660-101-042, Budget Act of 1988

(6) Item 2660-101-042, Budget Act of 1989

(7) Chapter 781, Statutes of 1990

0046--Transportation Planning and Development Account

(1) Item 2660-301-046, Budget Act of 1985

(2) Item 2660-301-046, Budget Act of 1986

(3) Item 2660-101-046, Budget Act of 1986

(4) Item 2660-301-046, Budget Act of 1987

(5) Item 2660-101-046, Budget Act of 1988

0890--Federal Trust Fund

(1) Item 2660-301-890, Budget Act of 1986

(2) Item 2660-301-890, Budget Act of 1987

2660-496--Reversion, Department of Transportation. As of June 30,
1998,  pursuant to the  September 1996 audit findings prepared by
the Department of Finance, the  unencumbered  balances in the
following items shall revert to the Petroleum Violation  Escrow
Account to repay  any remaining interest earned in the
Transportation Planning and  Development Account during  1996-97
on Transit Capital Improvement Projects financed by Petroleum
Violation Escrow  Account funds.

0046--Transportation Planning and Development Account

(1) Item 2660-101-046, Ch. 890/86

(2) Item 2660-101-046, Ch. 137/87 except for the encumbered
balance in  the Amtrak Bakersfield  Project which is funded by the
Transportation Planning and Development  Account.

(3) Item 2660-301-046, Ch. 313/88

2700-001-0044--For support of Office of Traffic Safety, payable
from the  Motor Vehicle  Account, State Transportation Fund  . . .
334,000

Schedule:

(a) 10-California Traffic Safety   . . . 14,833,000

(b) Amount payable from the Federal Trust Fund (Item
2700-001-0890)  . .  . -14,499,000

2700-001-0890--For support of Office of Traffic Safety, for payment
to  Item 2700-001-0044,  payable from the Federal Trust Fund, not
subject to the provisions of  Section 28.00  . . .  14,499,000

2700-101-0890--For local assistance, Office of Traffic Safety,
payable from  the Federal Trust  Fund, not subject to the provisions
of Section 28.00  . . . 10,682,000

2720-001-0042--For support of Department of the California
Highway  Patrol, for payment to  Item 2720-001-0044, payable from
the State Highway Account, State  Transportation Fund  . . .
55,476,000

2720-001-0044--For support of Department of the California
Highway  Patrol, payable from the  Motor Vehicle Account, State
Transportation Fund  . . . 744,092,000

Schedule:

(a) 10-Traffic Management  . . . 731,118,000

(b) 20-Regulation and Inspection  . . . 82,610,000

(c) 30-Vehicle Ownership Security  . . . 22,284,000

(d) 35-Protective Services  . . . 32,808,000

(e) 40.01-Administration  . . . 133,863,000

(f) 40.02-Distributed Administra-

tion

-133,863,000

(g) Reimbursements  . . . -29,834,000

(h) Amount payable from the General Fund (Item 2720-031-0001)  .
. .  -3,462,000

(i) Amount payable from the State Highway Account (Item
2720-001-0042)  . . . -55,476,000

(j) Amount payable from the Protective Services Fund (Item
2720-001-0246)  . . . -26,149,000

(k) Amount payable from the Motor Carrier Permit Fund (Item
2720-001-0292  . . . -1,439,000

(l) Amount payable from the Motor Carrier Safety Improvement
Fund  (Item 2720-001-0293)  . . .  -110,000

(m) Amount payable from the Motor Carrier Safety Improvement
Fund  (Chapter 1042, Statutes  of 1996)  . . . -1,400,000

(n) Amount payable from the California Motorcyclist Safety Fund
(Item  2720-001-0840)  . . .  -742,000

(o) Amount payable from the Federal Trust Fund (Item
2720-001-0890)  . .  . -3,914,000

(p) Amount payable from the Hazardous Substance Account, Special
Deposit Fund (Item  2720-001-0942)  . . . -200,000

(q) Amount payable from the Asset Forfeiture Account, Special
Deposit  Fund (Item  2720-011-0942)  . . . -2,002,000

2720-001-0246--For support of Department of the California
Highway  Patrol, for payment to  Item 2720-001-0044, payable from
the Protective Services Fund  . . .  26,149,000

2720-001-0292--For support of Department of the California
Highway  Patrol, for payment to  Item 2720-001-0044, payable from
the Motor Carrier Permit Fund  . . .  1,439,000

2720-001-0293--For support of Department of the California
Highway  Patrol, for payment to  Item 2720-001-0044, payable from
the Motor Carrier Safety Improvement  Fund  . . . 110,000

2720-001-0840--For support of the Department of the California
Highway  Patrol, for transfer to  Item 2720-001-0044, payable from
the California Motorcyclist Safety Fund   . . . 742,000

2720-001-0890--For support of Department of the California
Highway  Patrol, for payment to  Item 2720-001-0044, payable from
the Federal Trust Fund  . . . 3,914,000

2720-001-0942--For support of Department of the California
Highway  Patrol, payable from the  Hazardous Substance Account,
Special Deposit Fund  . . . 200,000

2720-011-0042--For transfer by the Controller, on June 30, 1997,
from the  State Highway  Account, State Transportation Fund, as a
loan to the Motor Vehicle  Account, State  Transportation Fund  . . .

(12,800,000)

2720-011-0942--For support of Department of the California
Highway  Patrol, for payment to  Item 2720-001-0044, payable from
the Asset Forfeiture Account, Special  Deposit Fund  . . .  2,002,000



2720-021-0044--For Department of the California Highway Patrol,
for  advance authority for the  department to incur automotive
equipment purchase obligations in an  amount not to exceed
$5,000,000 during the 1996-97 fiscal year, for delivery beginning in
the  1997-98 fiscal year,  payable from the Motor Vehicle Account,
State Transportation Fund  . . .  (5,000,000)

2720-031-0001--For Department of the California Highway Patrol,
for  payment to Item  2720-001-0044, for provision of security
upgrades  . . . 3,462,000

2720-301-0044--For capital outlay, Department of the California
Highway  Patrol, payable from  the Motor Vehicle Account, State
Transportation Fund  . . . 7,353,000

Schedule:

(1) 50.01.001-Minor Projects  . . . 788,000

(2) 50.29.209-Sacramento: Equipment for Sacramento Traffic
Management Center  . . .  1,565,000

(3) 50.68.608-Banning: Purchase of Leased Facility   . . . 4,380,000



(4) 50.69.609-El Cajon: Alterations-- Acquisition, preliminary plans,

and  working drawings  . . .  400,000

(5) 50.90.900-Statewide: Property Options and Appraisals  . . .
20,000

(6) 50.90.901-Studies, Preplanning, and Budget Packages  . . .
200,000

2740-001-0001--For support of Department of Motor Vehicles, for
payment to Item  2740-001-0044  . . . 60,000

Provisions:

1. The funds appropriated by this item are for the Anatomical Donor
Designation program.

2740-001-0042--For support of Department of Motor Vehicles, for
payment of Item  2740-001-0044, payable from the State Highway
Account, State  Transportation Fund  . . .  32,327,000

2740-001-0044--For support of Department of Motor Vehicles,
payable  from the Motor Vehicle  Account, State Transportation
Fund  . . . 311,443,000

Schedule:

(a) 11-Vehicle/Vessel Identification and Compliance  . . .
312,929,000

(b) 22-Driver Licensing and Personal Identification  . . .
148,907,000


(c) 25-Driver Safety  . . . 68,371,000

(d) 32-Occupational Licensing and Investigative Services  . . .
32,292,000

(e) 35-New Motor Vehicle Board  . . . 1,510,000

(f) 41.01-Administration  . . . 59,655,000

(g) 41.02-Distributed Administration  . . . -59,655,000

(h) Reimbursements  . . . -13,672,000

(i) Amount payable from the General Fund (Item 2740-001-0001)  . .
.  -60,000

(ix) Amount payable from the State Highway Account, State
Transportation Fund (Item  2740-001-0042)  . . . -32,327,000

(j) Amount payable from the New Motor Vehicle Board Account
(Item  2740-001-0054)  . . .  -1,510,000

(k) Amount payable from the Motor Vehicle License Fee Account,
Transportation Tax Fund  (Item 2740-001-0064)  . . . -192,147,000


(l) Amount payable from Motor Carrier Permit Fund (Item
2740-001-0292)  . . . -8,118,000

(m) Amount payable from the Harbors and Watercraft Revolving
Fund  (Item 2740-001-0516)  . .  . -4,636,000

(n) Amount payable from Federal Trust Fund (Item 2740-001-0890)
. . .  -96,000

2740-001-0054--For support of Department of Motor Vehicles, for
payment to Item  2740-001-0044, payable from the New Motor
Vehicle Board Account,  State Transportation Fund   . . . 1,510,000



2740-001-0064--For support of Department of Motor Vehicles, for
payment to Item  2740-001-0044, payable from the Motor Vehicle
License Fee Account,  Transportation Tax Fund   . . . 192,147,000



2740-001-0292--For support of Department of Motor Vehicles, for
payment to Item  2740-001-0044, payable from the Motor Carriers
Permit Fund   . . .  8,118,000

2740-001-0516--For support of Department of Motor Vehicles, for
payment to Item  2740-001-0044, payable from the Harbors and
Watercraft Revolving Fund   . . . 4,636,000

Provisions:

1. The funds appropriated by this item are for undocumented vessel
registration and fee  collection.

2740-001-0890--For support of Department of Motor Vehicles, for
payment to Item  2740-001-0044, payable from the Federal Trust
Fund  . . . 96,000

2740-011-0044--For payment of deficiencies in appropriations for
the  Department of Motor  Vehicles which may be authorized by the
Director of Finance, payable from  the Motor Vehicle  Account,
State Transportation Fund  . . . (1,000,000)

Provisions:

1. The Director of Finance shall report allocations from this
appropriation  in the same manner as  required for reporting
           allocations from Item 9840-001-0494 of this act.

2740-301-0044--For capital outlay, Department of Motor Vehicles,
payable from the Motor  Vehicle Account, State Transportation
Fund  . . . 7,612,000

Schedule:

(1) 71.01.000-Minor Projects  . . . 250,000

(2) 71.03.015-Sacramento Headquarters 7th Floor Asbestos
Removal--Construction  . . .  1,067,000

(3) 71.03.016-Sacramento Headquarters: Lower Level Asbestos
Removal--Working drawings  and construction  . . . 681,000

(4) 71.22.010-Studies, preplanning and budget packages  . . .
100,000

(5) 71.37.010-Oakland-Claremont: Field Office Replacement
Project--Construction  . . .  5,514,000

2780-001-0683--For support of Stephen P. Teale Data Center,
Business,  Transportation and  Housing Agency, payable from the
Stephen P. Teale Data Center  Revolving Fund  . . .  85,537,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance may  authorize  expenditures for the Stephen P. Teale Data
Center in excess of the amount  appropriated not  sooner than 30
days after notification in writing of the necessity therefor is
provided
to the  chairpersons of the fiscal committees and the Chairperson of
the Joint  Legislative Budget  Committee, or not sooner than
whatever lesser time the chairperson of the  committee, or his or
her
designee, may in each instance determine.

2. Pursuant to Section 14669 of the Government Code, the Director
of  General Services, acting  on behalf of the Teale Data Center,
with
the approval of the Business,  Transportation, and  Housing Agency
and the Department of Finance, may enter into a  lease-purchase
agreement or a  lease with option to purchase with an initial option
purchase price over  $2,000,000 to provide  adequate office and
parking facilities for the Teale Data Center, provided  that the
Department of  Information Technology finds that the lease is not in
conflict with the  findings of its study on the  future of the state
data
centers.

                              TRADE AND COMMERCE

2920-001-0001--For support of California Trade and Commerce
Agency  .  . . 23,712,000

Schedule:

(a) 10-Economic Development  . . . 10,067,000

(b) 20-International Trade and Investment  . . . 4,089,000

(c) 25-Marketing and Communications  . . . 665,000

(d) 30-Tourism  . . . 7,256,000

(e) 40-Contracts, Grants, and Loans  . . . 846,000

(f) 60-Policy and Planning  . . . 1,189,000

(g) 70.01-Administration  . . . 3,668,000

(h) 70.02-Distributed Administration  . . . -3,668,000

(i) Reimbursements  . . . -400,000

2920-001-0123--For support of California Trade and Commerce
Agency,  Program 10, payable  from the Rural Economic
Development Fund  . . . 145,000

2920-001-0145--For support of California Trade and Commerce
Agency,  payable from the  Commerce Marketing Fund  . . . 106,000


Schedule:

(a) 10-Economic Development  . . . 22,000

(b) 30-Tourism  . . . 84,000

2920-001-0440--For support of California Trade and Commerce
Agency,  payable from the  Petroleum Underground Storage Tank
Financing Account  . . . 839,000

Schedule:

(a) 10-Economic Development  . . . 681,000

(b) 40-Contracts, Grants and Loans  . . . 158,000

2920-001-0633--For support of California Trade and Commerce
Agency,  Program 10, payable  from the California Economic
Development Financing Authority Fund  . . .  354,000

2920-001-0651--For support of California Trade and Commerce
Agency,  Program 10, payable  from the California Infrastructure &
Economic Development Bank Fund  . .  . 340,000

2920-001-0890--For support, California Trade and Commerce
Agency,  Program 10--Economic  Development, payable from the
Federal Trust Fund  . . . 959,000

2920-011-0001--For support of California Trade and Commerce
Agency  .  . . 1,662,000

Schedule:

(a) For transfer to the Small Business Expansion Fund  . . .
1,662,000


2920-012-0001--For support of California Trade and Commerce
Agency,  Foreign Trade Offices  .  . . 5,419,000

Schedule:

(a) Taiwan  . . . 341,000

(b) Africa  . . . 383,000

(c) Germany  . . . 651,000

(d) Hong Kong  . . . 1,160,000

(e) London  . . . 321,000

(f) Mexico City  . . . 1,270,000

(g) Japan  . . . 1,293,000

2920-101-0001--For local assistance, California Trade and
Commerce  Agency  . . . 15,587,000

Schedule:

(a) 10.30-Economic Development (Strategic Technology Program)  .
. .  11,127,000

(b) 10.40-Economic Development (Defense Adjustment Projects)  . .
.  3,000,000

(c) 10.50-Economic Development (Small Business Development
Centers)   . . . 1,460,000

2920-101-0439--For local assistance, California Trade and
Commerce  Agency, for transfer to the  Petroleum Underground
Storage Tank Financing Account  . . .  (12,000,000)

2920-101-0890--For local assistance, California Trade and
Commerce  Agency Program  10--Economic Development, payable
from the Federal Trust Fund  . . .  5,847,000

                              RESOURCES

3110-001-0001--To the Resources Agency, Special Resources
Program,  Program 30--Sea Grant  Program, for grants to public and
private higher education for use as a  maximum of two-thirds of  the
local matching share for projects under the  National Sea Grant
College  Program Act, as  amended  . . . 319,000

Provisions:



1. The funds appropriated by this item are in lieu of any amount that

would  otherwise be received  pursuant to Section 6217 of the Public
Resources Code.

3110-001-0140--To the Resources Agency, Special Resources
Program,  Program 30-Sea Grant  Program, for a grant to the
University of California for support of the Sea  Grant Marine
Advisory  Program, payable from the California Environmental
License Plate Fund  . .  . 112,000

3110-101-0001--For local assistance, Special Resources Program,
Program  10--Tahoe Regional  Planning Agency  . . . 746,000

3110-101-0140--For local assistance, Special Resources Program,
Program  10--Tahoe Regional  Planning Agency, payable from the
California Environmental License Plate  Fund  . . . 776,000

3125-001-0001--For support of California Tahoe Conservancy  . . .
1,641,000

Schedule:

(a) 10-Tahoe Conservancy  . . . 2,524,000

(b) Reimbursements  . . . -33,000

(c) Amount payable from Habitat Conservation Fund (Item
3125-001-0262)  . . . -17,000

(d) Amount payable from the Lake Tahoe Conservancy Account
(Item  3125-001-0286)  . . .  -17,000

(e) Amount payable from the Tahoe Conservancy Fund (Item
3125-001-0568)  . . . -172,000

(f) Amount payable from the Lake Tahoe Acquisitions Fund (Item
3125-001-0720)  . . . -644,000

3125-001-0262--For support of California Tahoe Conservancy, for
payment to Item  3125-001-0001, payable from the Habitat
Conservation Fund  . . . 17,000

Provisions:

1. Funds appropriated by this item shall be used for purposes
consistent  with the requirements of  the Public Resources Account,
Cigarette and Tobacco Products Surtax  Fund and the Habitat
Conservation Fund.

3125-001-0286--For support of California Tahoe Conservancy, for
payment to Item  3125-001-0001, payable from the Lake Tahoe
Conservancy Account  . . .  17,000

3125-001-0568--For support of California Tahoe Conservancy, for
payment to Item  3125-001-0001, payable from the Tahoe
Conservancy Fund  . . . 172,000

Provisions:



1. Of this amount, pursuant to Section 66908.3 of the Government
Code,  the conservancy shall   pay $41,297 to the County of Placer,
and $1,703 to the County of El  Dorado.

2. Fifty percent (50%) of the amounts pursuant to Provision 1 above
shall  be used by the Counties  of Placer and El Dorado for soil
erosion control  projects in the Lake  Tahoe region, as defined in
Section 66905.5 of the Government Code.

3125-001-0720--For support of California Tahoe Conservancy, for
payment to Item  3125-001-0001, payable from the Lake Tahoe
Acquisitions Fund  . . .  644,000

3125-011-0235--For transfer by the Controller to the Habitat
Conservation  Fund, payable from  the Public Resources Account,
Cigarette and Tobacco Products Surtax  Fund  . . . (17,000)

Provisions:

1. The funds transferred by this item shall be used for purposes
consistent  with the requirements  of the Public Resources Account,
Cigarette and Tobacco Products Surtax  Fund and the Habitat
Conservation Fund.

3125-101-0001--For local assistance, California Tahoe Conservancy,
Program 10--Tahoe  Conservancy, for soil erosion control grants  . .

. 2,000,000

Provisions:

1. Notwithstanding any other provision of law, this appropriation
shall be  available for  encumbrance until June 30, 2000.

3125-301-0001--For capital outlay, California Tahoe Conservancy  .
. .  2,500,000

Schedule:

(1) 50.30.002-Land acquisition and site improvements--public access
and  recreation pursuant to  Title 7.42 (commencing with Section
66905) of the Government Code  . . .  500,000

(2) 50.30.004-Land acquisition and site improvements--stream
environment zones and watershed  restorations pursuant to Title 7.42
(commencing with Section 66905) of  the Government Code  . .  .
1,678,000

(3) 50.30.005-Land acquisition pursuant to Section 66907 of the
Government Code  . . .  1,750,000

(4) Reimbursements  . . . -1,428,000

Provisions:

1. The acquisition of real property or interests with funds
appropriated by  this item is not subject  to the Property
Acquisition
Law when the value is $250,000 or less, and,  therefore, is not
subject  to Public Works Board approval.

2. The amount appropriated by this item is available for expenditure
for  capital outlay or for local  assistance. Expenditures of funds
for
grants to public agencies and grants  to nonprofit  organizations, as

authorized by subdivision (a) of  Section 66907.7 of the  Government
Code, are  exempt from Public Works Board review.

3125-301-0262--For capital outlay, California Tahoe Conservancy,
payable  from the Habitat  Conservation Fund  . . . 483,000

Schedule:

(1) 50.30.003-Acquisition, restoration, and enhancement of habitat  .

. .  483,000

Provisions:

1. The funds appropriated by this item shall be used for purposes
consistent  with the requirements  of the California Environmental
License Plate Fund and the Habitat  Conservation Fund.

2. The acquisition of real property or interests with funds
appropriated by  this item is not subject  to the Property
Acquisition
Law when the value is less than $250,000 and,  therefore, is not
subject to Public Works Board approval.

3. The amount appropriated by this item is available for expenditure
for  capital outlay or for local  assistance. Expenditures of funds
for
grants to public agencies and grants  to nonprofit  organizations, as

authorized by subdivision (a) of Section 66907.7 of the  Government
Code, are  exempt from Public Works Board review.

3125-301-0286--For capital outlay, California Tahoe Conservancy,
payable  from the Lake Tahoe  Conservancy Account  . . . 53,000

Schedule:

(1) 50.30.002-Land acquisition and site improvements--Public access
and  recreation pursuant to  Title 7.42 (commencing with Section
66905) of the Government Code  . . .  27,000

(2) 50.30.004-Land acquisition and site improvements--Stream
environment zones and watershed  restorations pursuant to Title 7.42
(commencing with Section 66905) of  the Government Code  . .  .
26,000

Provisions:

1. The acquisition of real property or interests with funds
appropriated by  this item is not subject  to the Property
Acquisition
Law when the value is $250,000 or less, and,  therefore, is not
subject  to Public Works Board approval.

2. The amount appropriated by this item is available for expenditure
for  capital outlay or for local  assistance. Expenditures of funds
for
grants to public agencies and grants  to nonprofit  organizations, as

authorized by subdivision (a) of  Section 66907.7 of the  Government
Code, are  exempt from Public Works Board review.

3125-301-0545--For capital outlay, California Tahoe Conservancy,
payable  from the River  Parkway  Subaccount, 1996 Safe, Clean,
Reliable Water Supply Fund  . . .  1,000,000

Schedule:

(1) 50.30.006-River Parkway Program, Truckee River  . . .
1,000,000

Provisions:

1. Notwithstanding any other provision of law, the funds
appropriated by  this item are available  for encumbrance for either
capital outlay or local assistance through the  1999-2000 fiscal
year.


3125-311-0235--For transfer by the Controller to the Habitat
Conservation  Fund, payable from  the Public Resources Account,
Cigarette and Tobacco Products Surtax  Fund   . . . (483,000)

Provisions:

1. The funds transferred by this item shall be used for purposes
consistent  with the requirements  of the Public Resources Account,
Cigarette and Tobacco Products Surtax  Fund and the Habitat
Conservation Fund.

3125-490--Reappropriation, California Tahoe Conservancy. The
balances  of the appropriation  provided in the following citation is

reappropriated for the purposes  provided for in that  appropriation,

and shall be available for liquidation until June 30, 1998:

0001--General Fund

(1) Item 3125-101-164, Budget Act of 1992, as transferred to the
General  Fund per Section  16346 of the Government Code.

3340-001-0001--For support of California Conservation Corps  . . .
30,982,000

Schedule:

(a) 10-Training and Work Program  . . . 37,935,000

(b) 10.55-Administration  . . . (6,029,000)

(c) 10.55-Distributed Administration  . . . (-6,029,000)

(d) Amount payable from the California Environmental License Plate
Fund  (Item 3340-001-0140)   . . . -285,000

(e) Amount payable from the Public Resources Account, Cigarette
and  Tobacco Products Surtax  Fund (Item 3340-001-0235)  . . .
-245,000

(f) Amount payable from the Energy Resources Programs Account,
General Fund (Item  3340-001-0465)  . . . -5,926,000

(g) Amount payable from the Federal Trust Fund (Item
3340-001-0890)  . .  . -497,000

Provisions:

1. Notwithstanding Section 14316 of the Public Resources Code, the
Department of Finance may  make a loan from the General Fund to
the California Conservation Corps  for the purposes of this  item, in

the amount of 25 percent of the reimbursements anticipated to be
received by the  California Conservation Corps from each client
agency, not to exceed an  aggregate total of  $6,397,000, to meet
cash-flow needs due to delays in collecting  reimbursements. Any
loan made  by the Department of Finance pursuant to this provision
shall only be made  if the California  Conservation Corps has a valid

contract or certification signed by the client  agency, which
demonstrates that sufficient funds will be available to repay the
loan.
All  money so transferred  shall be repaid to the General Fund as
soon as possible, but not later than  one year from the date  of the
loan. On and after a date 90 days after the end of that year, the
Department of Finance shall  charge interest to the California
Conservation Corps, at the rate earned in  the Pooled Money
Investment Fund, on any portion of the loan that has not been repaid.



2. The funds appropriated by this act for the support of the
California
Conservation Corps are  subject to the conditions set forth in this
item, the Memorandum of  Understanding as adopted by  the
Legislature as a part of the annual budget process, and the
Supplemental Report of the 1997  Budget Act.

3. Notwithstanding Section 11032 of the Government Code, the
California  Conservation Corps  may authorize its officers and
employees to travel outside the state without  approval by any other
agency, and the funds appropriated by this item may be used for this
purpose.

4. Notwithstanding subdivisions (b), (c), and (d) of Section 31.00 of

this  act, the California  Conservation Corps may authorize new
positions, reclassifications,  transfers to blanket  authorizations,
and
the establishment of a blanket authorization, without  prior
notification to the  Department of Finance or the Legislature, and
the
funds appropriated by  this item may be used for  this purpose. The
California Conservation Corps shall report to the  Department of
Finance and  the Legislature on a quarterly basis regarding actions
taken pursuant to this  authority.

5. Notwithstanding Sections 8647, 11005, and 11005.1 of the
Government  Code, the California  Conservation Corps may accept
gifts and donations of personal property  without approval by the
Director of Finance. The California Conservation Corps shall bear
any  costs associated with the  acceptance of those gifts and
donations, and the funds appropriated by this  item may be used for
this purpose.

6. Of the funds appropriated by this item, $2,725,000 shall be
available for  use by the California  Conservation Corps to respond
to
natural disasters and other emergencies,  including the fighting  of
forest fires. The Director of Finance may adjust this amount to the
extent indicated by  corrections identified by the director in the
reports of the past expenditures  of the California  Conservation
Corps upon which the amounts appropriated by this item are  based.
The Director of  Finance shall notify the Chairperson of the Joint
Legislative Budget  Committee at least 30 days  prior to making that
adjustment.

7. To the extent that funds in excess of the amount identified in
Provision 6  are necessary in order  for the California Conservation
Corps to respond to one or more  emergencies declared by the
Governor, the Department of Finance shall transfer, from the funds
available pursuant to Section  8609.6 of the Government Code, an
amount not to exceed $1,500,000 as  necessary to fund that
response. If, after the Department of Finance has transferred funds
pursuant to this provision, the  California Conservation Corps
receives reimbursements or other amounts  in payment of its costs  of

response to one or more declared emergencies, those amounts shall
be  deposited in the General  Fund.

8. Notwithstanding Section 19080.3 of the Government Code, the
California Conservation Corps  may make limited-term appointments,
not exceeding a period of four years  for any appointment,  without
the review or approval of the State Personnel Board, and the funds
appropriated by this  item may be used for this purpose.

9. Notwithstanding Section 2807 of the Penal Code, the California
Conservation Corps may  procure corpsmember-related goods and
services from the private sector,  and the funds  appropriated by
this
item may be used for this purpose. Notwithstanding  this grant of
authority,  the California Conservation Corps shall contract with the

Prison Industry  Authority for this  purpose if the latter is able to

meet the cost, quality, and time requirements  established by the
California Conservation Corps for the goods or services.

10. Notwithstanding Sections 13332.06, 13332.08, and 14669 of,
and  Chapter 6 (commencing  with Section 14825) and Chapter 6.5
(commencing with Section 14835) of  Part 5.5 of Division 3  of Title
2 of, the Government Code, and Chapter 1 (commencing with
Section 10100), Chapter 2  (commencing with Section 10290), and
Chapter 3 (commencing with  Section 12100) of Part 2 of  Division 2
of the Public Contract Code, the California Conservation Corps  may
execute contracts,  procure all goods and services, including any
fleet
needs within 60 days or  less, and negotiate all  lease agreements
for
office, warehouse, and other appropriate facilities  without review
or
approval by the Department of General Services and pursuant to
methods  and procedures other  than those set forth in the State
Administrative Manual, and funds  appropriated by this item may  be
used for this purpose. The authority with regard to lease agreements
set  forth in this provision  does not alter the authority or
responsibilities of the Department of General  Services concerning
the consolidation of offices in the Sacramento metropolitan area for
the  consolidation plans for  other metropolitan areas in the state.


11. Notwithstanding Sections 14931 and 14931.1 of, or Part 6.5
(commencing with Section  15250) of Division 3 of Title 2 of, the
Government Code, the California  Conservation Corps may
purchase electronic data processing and telecommunications goods
and  services, not exceeding  $1,000,000 for any one procurement,
without the requirement of review or  approval by the  Department
of General Services and pursuant to methods and procedures  other
than those set  forth in the State Administrative Manual, and funds
appropriated by this  item may be used for this  purpose. The
California Conservation Corps shall continue to use the  Department
of General  Services CALNET, except that if the department is
unable to provide the  information and  maintenance required for the
California Conservation Corps' statewide data  base network on a
cost-competitive and timely basis, the California Conservation Corps
shall  be exempt from any  restrictions relating to CALNET that are
imposed by the Office of  Telecommunications of the  Department of
General Services.

12. Notwithstanding any other provision of law, the Director of the
California Conservation  Corps may prepay vendors for non-capital
outlay expenditures when it is  cost-beneficial to the  department.
In
the event the department incurs any losses due to the  prepayment of
vendors, the  department shall report such losses to the Joint
Legislative Budget  Committee, to the appropriate  fiscal committees
of the Legislature and to the Department of Finance.

13. Notwithstanding any other provision of law, the Director of the
California Conservation  Corps, or his or her designee, in lieu of
the
Director of Finance, is  authorized to carry out the  provisions of
Section 26.00 of this act as it pertains to category transfers
related
to this item.

14. Notwithstanding subdivision (a) of Section 948 and Section 965
of the  Government Code, the  Director of the California
Conservation Corps or his or her designee, in lieu  of the Director
of
Finance, is authorized to certify funds for payment of all legal
settlements,  State Board of Control  claims, judgments, and tort
claims for  which the CCC already has  sufficient expenditure
authority  and funds without the need for an augmentation.

15. Notwithstanding any other provision of law, the Director of the
California Conservation  Corps, or his or her designee, in lieu of
the
Director of Finance, is  authorized to approve Budget  Revision,
Standard Form 26 for this item.

16. Notwithstanding Section 12439 of the Government Code, the
California Conservation Corps  is exempt from the provisions that
abolish, effective July 1, any positions  that were vacant
continuously during the period between October 1 and June 30 of the
preceding year.

3340-001-0140--For support of California Conservation Corps, for
payment to Item  3340-001-0001, payable from the California
Environmental License Plate  Fund  . . . 285,000

3340-001-0235--For support of California Conservation Corps, for
payment to Item  3340-001-0001, payable from the Public Resources
Account, Cigarette and  Tobacco Products  Surtax Fund  . . .
245,000

3340-001-0465--For support of California Conservation Corps, for
payment to Item  3340-001-0001, payable from the Energy
Resources Programs Account,  General Fund  . . .  5,926,000

3340-001-0853--For support of California Conservation Corps,
payable  from Petroleum Violation  Escrow Account  . . . 9,751,000


3340-001-0890--For support of California Conservation Corps, for
payment to Item  3340-001-0001, payable from the Federal Trust
Fund  . . . 497,000

3340-301-0001--For capital outlay, California Conservation Corps  .
. .  120,000

Schedule:

(1) 20.10.120-Elkhorn Slough Facility: Replace kitchen facilities--
Study,  preliminary plans,  working drawings, construction and
equipment  . . . 120,000

3360-001-0044--For support of State Energy Resources,
Conservation and  Development  Commission, for payment to Item
3360-001-0465, payable from the Motor  Vehicle Account,  State
Transportation Fund  . . . 119,000

3360-001-0314--For support of State Energy Resources,
Conservation and  Development  Commission, for payment to Item
3360-001-0465, payable from the Diesel  Emission Reduction  Fund
. . . 306,000

3360-001-0381--For support of State Energy Resources,
Conservation and  Development  Commission, for payment to Item
3360-001-0465, payable from the Public  Interest Research,
Development and Demonstration Programs Fund  . . . 21,131,000

Provisions:

1. Notwithstanding Section 2.00 of this act, funds appropriated by
this item  shall be available for  expenditure during the 1997-98 and

1998-99 fiscal years.

2. Notwithstanding Section 16304.1 of the Government Code, funds
appropriated by this item  shall be available for liquidation of
encumbrances until June 30, 2002.

3. Notwithstanding any other provision of law, funds appropriated by
this  item may be used by the  commission to enter into various
agreements, including but not limited to,  grants, loans, contracts
and rebates. The commission shall use competitive solicitations and
non-competitive awards to  carry out this program. Competitive
solicitations may be based upon lowest  cost, high point,  proposer
and project qualifications, a multiple step proposal development
process, or any  combination of these methods.

3360-001-0382--For support of State Energy Resources,
Conservation and  Development  Commission, for payment to Item
3360-001-0465, payable from Public  Interest Renewable  Resource
Technologies Fund  . . . 45,733,000

Provisions:

1. Notwithstanding Section 2.00 of this act, funds appropriated by
                                     this item  shall be available
for  expenditure during the 1997-98 and
1998-99 fiscal years.

2. Notwithstanding Section 16304.1 of the Government Code, funds
appropriated by this item  shall be available for liquidation of
encumbrances until June 30, 2002.

3. Notwithstanding any other provision of law, funds appropriated by
this  item may be used by the  commission to enter into various
agreements, including but not limited to,  grants, loans, contracts
and rebates. The commission shall use competitive solicitations and
non-competitive awards to  carry out this program. Competitive
solicitations may be based upon lowest  cost, high point,  proposer
and project qualifications, a multiple step proposal development
process, or any  combination of these methods.

3360-001-0465--For support of State Energy Resources,
Conservation and  Development  Commission, payable from the
Energy Resources Programs Account,  General Fund  . . .
32,948,000

Schedule:

(a) 10-Regulatory and Planning  . . . 19,043,000

(b) 20-Energy Resources Conservation  . . . 10,960,000

(c) 30-Development  . . . 85,782,000

(d) 40.01-Policy, Management and Administration  . . . 7,931,000


(e) 40.02-Distributed Policy, Management and Administration  . . .
-7,931,000

(f) Reimbursements  . . . -1,236,000

(g) Amount payable from the Motor Vehicle Account, State
Transportation Fund (Item  3360-001-0044)  . . . -119,000

(h) Amount payable from the Diesel Emission Reduction Fund (Item
3360-001-0314)  . . .  -306,000

(i) Amount payable from the Public Interest Research, Development
and  Demonstration Programs  Fund (Item 3360-001-0381)  . . .
-21,131,000

(j) Amount payable from the Public Interest Renewable Resource
Technologies Fund (Item  3360-001-0382)  . . . -45,733,000

(k) Amount payable from Energy Technologies Development and
Demonstration Account (Item  3360-001-0479)  . . . -400,000

(l) Amount payable from Local Govt. Geothermal Resources
Revolving  Subaccount (Item  3360-001-0497)  . . . -293,000

(m) Amount payable from Petroleum Violation Escrow Account
(Item  3360-001-0853)  . . .  -6,455,000

(n) Amount payable from Katz Schoolbus Fund (Item
3360-001-0854)  . . .  -656,000

(o) Amount payable from the Federal Trust Fund (Item
3360-001-0890)  . .  . -6,483,000

(p) Amount payable from Energy Resources Programs Account,
General  Fund (Public Resources  Code Section 25402.1)  . . .
-25,000

Provisions:

1. Notwithstanding any other provision of law, upon approval and
order of  the Director of  Finance, loans may be made to the Public
Interest Research, Development  and Demonstration  Programs Fund
(PIRDDPF) from the Energy Resources Programs Account  (ERPA)
to meet  cash-flow needs related to administrative costs due to
delays
in collecting  revenues in PIRDDPF.  Any loans made pursuant to
this provision shall be repaid to ERPA as soon  as possible, but not
later than the end of the fiscal year.

3360-001-0479--For support of State Energy Resources,
Conservation and  Development  Commission, for payment to Item
3360-001-0465, payable from the  Energy Technologies  Research,
Development and Demonstration Account for the purpose of
funding loans, grants and  contracts to provide a variety of research

projects  . . . 400,000

Provisions:

1. Notwithstanding subdivision (a) of Section 2.00 of this act, funds

appropriated by this item  shall be available for expenditure during
the 1997-98 and 1998-99 fiscal  years.

2. Notwithstanding Section 16304.1 of the Government Code, funds
appropriated by this item  shall be available for liquidation of
encumbrances until June 30, 2001.

3. Notwithstanding any other provision of law, funds appropriated by
this  item may be used by the  State Energy Resources, Conservation
and Development Commission to  provide grants, loans, or
repayable research contracts. When the commission evaluates
proposals, a  high-point scoring  method may be used in lieu of
lowest cost. Repayment terms shall be  determined by the
commission.

3360-001-0497--For support of State Energy Resources,
Conservation and  Development  Commission, for payment to Item
3360-001-0465, payable from the Local  Government  Geothermal
Resources Subaccount  . . . 293,000

3360-001-0853--For support of State Energy Resources,
Conservation and  Development  Commission, for payment to Item
3360-001-0465, payable from Petroleum  Violation Escrow  Account
. . . 6,455,000

Provisions:

1. Notwithstanding Section 2.00 of this act, funds appropriated by
this item  shall be available for  expenditure during the 1997-98 and

1998-99 fiscal years.

2. Notwithstanding Section 16304.1 of the Government Code, funds
appropriated by this item  shall be available for liquidation of
encumbrances until June 30, 2001.

3. Notwithstanding any other provision of law, funds appropriated by
this  item may be used by the  commission to provide grants, loans,
or repayable research contracts.  When the commission  evaluates
proposals, a high-point scoring method may be used in lieu of  lowest

cost. Repayment  terms shall be determined by the commission.

3360-001-0854--For support of State Energy Resources,
Conservation and  Development  Commission, for payment to Item
3360-001-0465, payable from the Katz  Schoolbus Fund created  by
Section 17911 of the Education Code  . . . 656,000

3360-001-0890--For support of State Energy Resources,
Conservation and  Development  Commission, for payment to Item
3360-001-0465, payable from the  Federal Trust Fund  . . .
6,483,000

3360-101-0497--For local assistance, State Energy Resources,
Conservation and Development  Commission, pursuant to Section
3822 of the Public Resources Code,  payable from the Local
Government Geothermal Resources Revolving  Subaccount, General
Fund   . . . 3,200,000

Schedule:

(a) 30-Development  . . . 3,200,000

Provisions:

1. Notwithstanding subdivision (a) of Section 2.00 of this act, funds

appropriated by this item  shall  be available for expenditure during

the 1997-98 and 1998-99 fiscal  years.

2. Notwithstanding Section 16304.1 of the Government Code, funds
appropriated by this item  shall be available for liquidation of
encumbrances until June 30, 2001.

3360-490--Reappropriation, State Energy Resources, Conservation
and  Development  Commission. The balance of the appropriations
provided in the following  citations are  reappropriated for the
purposes provided for in those appropriations, and  shall be
available
for  encumbrance and expenditure until June 30, 1998:

0479--Energy Technologies Research, Development and
Demonstration  Account:

(1) Item 3360-001-0479, Budget Act of 1995, (c)30-Development.


0854--Katz Schoolbus Fund:

(1) Item 3360-001-854, Budget Act of 1995, as reappropriated by
Item  3360-490, Budget Act of  1996.

3360-491--Extension of liquidation period, State Energy Resources,
Conservation and  Development Commission. Notwithstanding any
other provision of law,  funds appropriated in the  following
citations
shall be available for liquidation until June 30, 1998:

0033--Energy Conservation Assistance Account:

(1) Chapter 1212, Statutes of 1994, Grants to Local Government for
the  Conversion of Street  Lights.

0465--Energy Resources Programs Account:

(1) Item 3360-001-0465, Budget Act of 1994, C(5) Export
Development  Project

0497--Local Government Geothermal Resources Revolving
Subaccount,  Local Assistance:

(1) Item 3360-101-0497, Budget Act of 1993, Local Assistance.

Notwithstanding any other provisions of law, the funds appropriated
in the  following citations  shall be available for liquidation until
June
30, 2000:

0853--Petroleum Violation Escrow Account:

(1) Item 3360-001-0853, Budget Act of 1992 (3325) PVEA-Stripper
Well  as reappropriated by  Item 3360-492, Budget Act of 1995,
Technology Development.

(2) Item 3360-001-0853, Budget Act of 1992, (00193-31)
Technology  Development, as  reappropriated by Items 3360-492,
Budget Act of 1995; 3360-491, Budget  Act of 1994;  3360-495,
Budget Act of 1993.

Notwithstanding any other provisions of law, the funds appropriated
in the  following citations  shall be available for liquidation until
June
30, 2001:

0479--Energy Technologies Research Development and
Demonstration  Account:

(1) Item 3360-001-0479, Budget Act of 1995, (c) 30-Development


3460-001-0001--For support of Colorado River Board of California
. . .  209,000

Schedule:

(a) 10-Protection of California's Colorado River Rights and Interests

. . .  1,077,000

(b) Reimbursements  . . . -853,000

(c) Amount payable from the California Environmental License Plate
Fund  (Item 3460-001-0140)   . . . -15,000

3460-001-0140--For support of Colorado River Board of California,
for  payment to Item  3460-001-0001, payable from the California
Environmental License Plate  Fund  . . . 15,000

Provisions:

1. The funds appropriated by this item are for the Salinity Control
Forum.

3480-001-0001--For support of Department of Conservation  . . .
15,629,000

Schedule:

(a) 10-Geologic Hazards and Mineral Resources Conservation  . . .
21,048,000

(b) 20-Oil, Gas, and Geothermal Resources  . . . 11,711,000

(c) 30-Land Resource Protection  . . . 2,305,000

(d) 40.01-Administration  . . . 8,582,000

(e) 40.02-Distributed Administration  . . . -8,582,000

(f) 50-Beverage Container Recycling and Litter Reduction Program
. . .  22,432,000

(g) Reimbursements  . . . -8,349,000

(h) Amount payable from the Surface Mining and Reclamation
Account,  General Fund (Item  3480-001-0035)  . . . -2,401,000

(i) Amount payable from the State Highway Account, State
Transportation  Fund (Item  3480-001-0042)  . . . -12,000

(j) Amount payable from the California Beverage Container
Recycling  Fund (Item  3480-001-0133)  . . . -22,357,000

(k) Amount payable from the California Environmental License Plate
Fund  (Item 3480-001-0140)   . . . -55,000

(l) Amount payable from the Soil Conservation Fund (Item
3480-001-0141)  . . . -1,157,000

(m) Amount payable from Hazardous and Idle-Deserted Well
Abatement  Fund (Section 3206,  Public Resources Code)  . . .
-55,000

(n) Amount payable from Mine Reclamation Account (Item
3480-001-0336)  . . . -1,137,000

(o) Amount payable from Seismic Hazards Identification Fund (Item
3480-001-0338)  . . .  -1,076,000

(p) Amount payable from the Strong Motion Instrumentation Special
Fund  (Item 3480-001-0398)   . . . -2,740,000

(q) Amount payable from the Agricultural Land Stewardship
Program  Fund (Item  3480-001-0867)  . . . -105,000

(r) Amount payable from the Federal Trust Fund (Item
3480-001-0890)  . .  . -2,423,000

Provisions:

1. Notwithstanding any other provision of law, upon approval and
order of  the Director of  Finance, the Department of Conservation
may borrow sufficient funds,  from special funds that  otherwise
provide support for the department, to meet cash-flow needs due  to
delays in collecting  reimbursements. Any loan made by the
Department of Finance pursuant to  this provision shall  only be made

if the Department of Conservation has a valid contract or
certification signed by the  client agency, which demonstrates that
sufficient funds will be available to  repay the loan. All  money so
transferred shall be repaid to the special fund as soon as possible,
but
not later than one  year from the date of the loan.

3480-001-0035--For support of Department of Conservation, for
payment  to Item  3480-001-0001, payable from the Surface Mining
and Reclamation  Account, General Fund  . . .  2,401,000

3480-001-0042--For support of Department of Conservation, for
payment  to Item  3480-001-0001, payable from the State Highway
Account, State  Transportation Fund  . . . 12,000

  Provisions:

1. The funds appropriated by this item are for the state's share of
costs of  the California Institute  of Technology seismograph
network.

3480-001-0133--For support of Department of Conservation, for
payment  to Item  3480-001-0001, payable from the California
Beverage Container Recycling  Fund  . . . 22,357,000

3480-001-0140--For support of Department of Conservation, for
payment  to Item  3480-001-0001, payable from the California
Environmental License Plate  Fund  . . . 55,000

3480-001-0141--For support of Department of Conservation, for
payment  to Item  3480-001-0001, payable from the Soil
Conservation Fund  . . . 1,157,000

3480-001-0336--For support of Department of Conservation, for
payment  to Item  3480-001-0001, payable from the Mine
Reclamation Account  . . .  1,137,000

3480-001-0338--For support of Department of Conservation, for
payment  to Item  3480-001-0001, payable from the Seismic Hazards
Identification Fund  . . .  1,076,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance may  authorize  expenditures from the Seismic Hazard
Identification Fund in excess of the  amount appropriated  not sooner

than 30 days after notification in writing of the necessity
therefore is
provided to the  chairpersons of the fiscal committees and the
Chairperson of the Joint  Legislative Budget  Committee, or not
sooner than whatever lesser time the chairperson of the  committee,
or his  designee, may in each instance determine. When exercising
this provision,  the department must  maintain a minimum ten percent
reserve balance in the Seismic Hazards  Identification Fund at all
times and not exceed a total program expenditures level of
$1,100,000.  This provision may also  be used to reduce expenditures
below the amount appropriated by this item  should revenues be
unable to maintain an adequate balance.

3480-001-0398--For support of Department of Conservation, for
payment  to Item  3480-001-0001, payable from the Strong Motion
Instrumentation Special  Fund  . . . 2,740,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance may  authorize  expenditures from the Strong Motion
Instrumentation Special Fund in  excess of the amount  appropriated
not sooner than 30 days after notification in writing of the
necessity
therefore is  provided to the chairpersons of the fiscal committees
and the Chairperson  of the Joint Legislative  Budget Committee, or
not sooner than whatever lesser time the  chairperson of the
committee, or  his designee, may in each instance determine. When
exercising this  provision, the department must  maintain a minimum
ten percent reserve balance in the Strong Motion  Instrumentation
Special  Fund at all times and not exceed a total program
expenditures level of  $3,300,000. This provision  may also be used
to reduce expenditures below the amount appropriated by  this item
should  revenues be unable to maintain an adequate balance.

3480-001-0867--For support of Department of Conservation, for
payment  to Item  3480-001-0001, payable from the Agricultural
Land Stewardship Program  Fund  . . . 105,000

Provisions:

1. Funds appropriated by this item shall be used for purposes
consistent  with the requirements  of  the Agricultural Land
Stewardship Program Fund and the Habitat  Conservation Fund.

2. Notwithstanding any other provision of law, this appropriation
shall be  available for  encumbrance until June 30, 1999.

3480-001-0890--For support of Department of Conservation, for
payment  to Item  3480-001-0001, payable from the Federal Trust
Fund  . . . 2,423,000

3480-101-0001--For local assistance, Department of Conservation  .
. .  680,000

Provisions:

1. The funds appropriated in this item are for grants for projects,
as
identified and deemed eligible  for funding by the Resources Agency
Watershed Initiative Interagency  Watershed Management  Teams,
and that address the mandates of the Forest Practices Act and the
California  Environmental Quality Act and/or the requirements for
water quality  protection under the Federal  Clean Water Act and
protection of threatened and endangered species  under the State and
Federal  Endangered Species Acts.

3480-101-0867--For local assistance, Department of Conservation,
payable  from the Agricultural  Land Stewardship Program Fund  . . .

1,870,000

Provisions:

1. Funds appropriated by this item shall be used for purposes
consistent  with the requirements of  the Agricultural Land
Stewardship Program Fund and the Habitat  Conservation Fund.

2. Notwithstanding any other provision of law, this appropriation
shall be  available for  encumbrance until June 30, 2000.

3480-295-0001--For local assistance, Department of Conservation,
for  reimbursement, in  accordance with the provisions of Section 6
of Article XIII B of the  California Constitution or of  Section
17561
of the Government Code, of the costs of any new program  or
increased level of  service of an existing program mandated by
statute
or executive order,  State Controller  . . . 0

Schedule:

(1) 98.01.113.175-Mineral resources policies (Ch. 1131, Stats. 1975)
. . .  0

Provisions:

1. Pursuant to Section 17581 of the Government Code, the mandate
identified in the  appropriation schedule of this item with an
appropriation of $0 and  included in the language of  this provision
is
specifically identified by the Legislature for suspension  during the

1997-98 fiscal  year:

(a) Mineral resources policies (Ch. 1131, Stats. 1975)

3540-001-0001--For support of Department of Forestry and Fire
Protection  . . . 259,287,000

Schedule:

(a) 100000-Personal services  . . . 300,840,000

(b) 300000-Operating expenses and equipment  . . . 125,151,000

(c) Reimbursements  . . . -113,971,000

(d) Amount payable from the General Fund (Item 3540-006-0001)  .
. .  -20,000,000

(e) Less funding provided by Capital Outlay  . . . -1,698,000

(f) Amount payable from the Unified Program Account (Item
3540-001-0028)  . . . -409,000

(g) Amount payable from the State Fire Marshal Licensing and
Certification Fund (Item  3540-001-0102)  . . . -1,722,000

(h) Amount payable from the California Environmental License Plate
Fund  (Item 3540-001-0140)   . . . -794,000

(i) Amount payable from the California Fire and Arson Training Fund
(Item  3540-001-0198)  . . .  -1,406,000

(j) Amount payable from the Hazardous Liquid Pipeline Safety Fund
(Item  3540-001-0209)  . . .  -1,905,000

(k) Amount payable from the Insurance Fund (Chapter 420, Statutes
of  1994)  . . . -649,000

(l) Amount payable from the Public Resources Account, Cigarette
and  Tobacco Products Surtax  Fund (Item 3540-001-0235)  . . .
-325,000

(m) Amount payable from the Professional Forester Registration
Fund  (Item 3540-001-0300)  . . .  -170,000

(n) Amount payable from the California Wildlife, Coastal, and Park
Land  Conservation Fund of  1988 (Item 3540-001-0786)  . . .
-26,000

(o) Amount payable from the Federal Trust Fund (Item
3540-001-0890)  . .  . -9,124,000

(p) Amount payable from the Forest Resources Improvement Fund
(Item  3540-001-0928)  . . .  -14,478,000

(q) Amount payable from the Timber Tax Fund (Item
3540-001-0965)  . . .  -27,000

Provisions:



1. Notwithstanding any other provision of law, the Director of
Finance may  authorize the  temporary or permanent redirection of
funds from this item for purposes of  emergency fire  suppression
and detection costs and related emergency revegetation costs.

2. Notwithstanding any other provision of law, the Department of
Forestry  and Fire Protection is  authorized to collect up to
$300,000
in reimbursements from nursery sale  receipts for State  Nursery
operations.

3. Notwithstanding any other provision of law, the Department of
Forestry  and Fire Protection  shall remit as General Fund revenue
any nursery sale receipts collected  during the period July 1,  1997,

through June 30, 1998, in excess of the amount needed to reimburse
the costs of operating  the State Nursery.

3540-001-0028--For support of Department of Forestry and Fire
Protection, for payment to Item  3540-001-0001, payable from the
Unified Program Account  . . . 409,000

3540-001-0102--For support of Department of Forestry and Fire
Protection, for payment to Item  3540-001-0001, payable from the
State Fire Marshal Licensing and  Certification Fund  . . .
1,722,000


3540-001-0140--For support of Department of Forestry and Fire
Protection, for payment to Item  3540-001-0001, payable from the
California Environmental License Plate  Fund  . . . 794,000

3540-001-0198--For support of Department of Forestry and Fire
Protection, for payment to Item  3540-001-0001, payable from the
California Fire and Arson Training Fund   . . . 1,406,000

3540-001-0209--For support of Department of Forestry and Fire
Protection, for payment to Item  3540-001-0001, payable from the
Hazardous Liquid Pipeline Safety Fund  .  . . 1,905,000

3540-001-0235--For support of Department of Forestry and Fire
Protection, for payment to Item  3540-001-0001, payable from the
Public Resources Account, Cigarette and  Tobacco Products  Surtax
Fund  . . . 325,000

3540-001-0300--For support of Department of Forestry and Fire
Protection, for payment to Item  3540-001-0001, payable from the
Professional Forester Registration Fund   . . . 170,000

3540-001-0786--For support of Department of Forestry and Fire
Protection, for payment to Item  3540-001-0001, payable from the
California Wildlife, Coastal, and Park  Land Conservation Fund  of
1988 for the California Wildlife, Coastal, and Park Land
Conservation  Program  . . . 26,000

3540-001-0890--For support of Department of Forestry and Fire
Protection, for payment to Item  3540-001-0001, payable from the
Federal Trust Fund  . . . 9,124,000

3540-001-0928--For support of Department of Forestry and Fire
Protection, for payment to Item  3540-001-0001, payable from the
Forest Resources Improvement Fund  . .  . 14,478,000

Provisions:

1. Notwithstanding any other provision of law, $1,192,000 of the
amount  appropriated in this  item shall be available for forest
wildlife
habitat assessment, biodiversity,  forest and rangeland and
research,
and forest and range resources assessment programs.

3540-001-0965--For support of Department of Forestry and Fire
Protection, for payment to Item  3540-001-0001, payable from the
Timber Tax Fund  . . . 27,000

3540-006-0001--For support of Department of Forestry and Fire
Protection, for payment to Item  3540-001-0001, payable from the
General Fund  . . . 20,000,000

Provisions:

1. The funds appropriated by this item shall be available for
emergency fire  suppression and  detection costs and related
emergency revegetation costs and may be used  for these purposes to
reimburse the main support appropriation (Item 3540-001-0001)
only upon  approval by the  Director of Finance.

2. The Director of Forestry and Fire Protection shall furnish
quarterly
reports on expenditures for  emergency fire suppression activities to

the Director of Finance, as well as  to the chairperson of  the
committee of each house that considers appropriations and to the
Chairperson of the Joint  Legislative Budget Committee.

3540-011-0928--For transfer to the General Fund, no more than the
amount of nursery sale  receipts collected during the period July 1,
1997, through June 30, 1998,  for the actual costs of  State Nursery
operations, payable from the Forest Resources Improvement  Fund  .
. . (300,000)

3540-101-0786--For local assistance, Department of Forestry and
Fire  Protection, Program  12.10-Resources Protection and
Improvement, payable from the California  Wildlife, Coastal, and
Park Land Conservation Fund of 1988 for the California Wildlife,
Coastal,  and Park Land  Conservation Program  . . . 400,000

3540-101-0890--For local assistance, Department of Forestry and
Fire  Protection, Program  12.10-Resources Protection and
Improvement, payable from the Federal  Trust Fund  . . . 479,000


3540-301-0001--For capital outlay, Department of Forestry and Fire
Protection  . . . 19,493,000

Schedule:

(1) 30.10.005-Alma Helitack Base: Replace Facility--Preliminary
plans and  working drawings  . . .  208,000

(2) 30.10.010-Sonoma Air Attack Base: Replace
Facility--Construction  and equipment  . . .  1,897,000

(3) 30.10.015-Ukiah Forest Fire Station: Relocate Facility--Study
and  acquisition  . . . 407,000

(4) 30.10.030-Bridgeville Forest Fire Station: Relocate
Facility--Study and  acquisition  . . .  149,000

(5) 30.10.035-Stevens Creek Forest Fire Station: Replace
Facility--Preliminary plans and working  drawings  . . . 117,000


(6) 30.10.050-Rohnerville Air Attack Base: Replace
Facility--Construction  and equipment  . . .  1,482,000

(7) 30.20.025-Ogo Forest Fire Station: Relocate
Facility--Preliminary plans  and working  drawings  . . . 101,000


(8) 30.20.040-Manton Forest Fire Station: Relocate Facility--Study
and  acquisition  . . . 147,000

(9) 30.20.070-Truckee Forest Fire Station: Relocate Facility--Study
and  acquisition  . . . 300,000

(10) 30.30.015-Independence Forest Fire Station: Relocate
Facility--Preliminary plans and  working drawings  . . . 100,000


(11) 30.30.030-Riverside Ranger Unit Headquarters: Replace
Emergency  Command  Center--Construction and equipment  . . .
1,732,000

(12) 30.30.035-San Bernardino Ranger Unit Headquarters: Replace
Emergency Command  Center-- Construction and equipment  . . .
1,554,000

(13) 30.30.045-Hesperia Forest Fire Station: Relocate
Facility--Preliminary  plans and working  drawings  . . . 109,000


(14) 30.30.050-Ramona Air Attack Base: Replace
Facility--Construction  and equipment  . . .  2,273,000

(15) 30.30.060-Hemet-Ryan Air Attack Base: Replace
Facility--Preliminary plans and working  drawings  . . . 317,000


(16) 30.40.020-Batterson Forest Fire Station: Relocate
Facility--Preliminary plans and working  drawings  . . . 99,000

(17) 30.40.040-Hammond Forest Fire Station: Relocate
Facility--Preliminary plans and working  drawings  . . . 109,000


(18) 30.40.055-Coalinga Forest Fire Station: Relocate
Facility--Construction and equipment  . . .  1,560,000

(19) 30.80.000-Minor Capital Outlay  . . . 6,832,000

Provisions:

1. The funds appropriated by this item include funding for
construction and  preconstruction  activities, including, but not
limited to, study, site search, acquisition,  environmental
documents,
preliminary plans, working drawings, equipment, and other costs
relating to  the design and  construction of facilities, to be
performed
by Department of Forestry and  Fire Protection  personnel in
completion of the projects.

3540-301-0660--For capital outlay, State Public Works Board,
payable  from the Public Buildings  Construction Fund, from
proceeds from the sale of bonds, negotiable notes  or negotiable bond

anticipation notes for the construction of California Department of
Forestry  and Fire Protection  facilities pursuant to Part 10b
(commencing with Section 15800) of  Division 3 of Title 2 of the
Government Code  . . . 12,360,000

Schedule:

(1) 30.60.030-Statewide: Construct Telecommunication Towers and
Vaults, Stage 2--Preliminary  plans, working drawings, and
construction  . . . 12,360,000

Provisions:

1. The State Public Works Board may issue lease-revenue bonds,
notes, or  bond anticipation  notes pursuant to Chapter 5
(commencing with Section 15830) of Part 10b  of Division 3 of Title
2 of the Government Code to finance the construction and
preconstruction  activities (including,  but not limited to, site
search,
acquisition, environmental documents,  preliminary plans, working
drawings, equipment, and other costs relating to the design and
construction of the facilities) or  the exercise of any purchase
option
for the project authorized by this item.

2. The State Public Works Board and the Department of Forestry
and Fire  Protection may obtain  interim financing for the project
costs authorized in this item from  (including, but not limited to)
the
Pooled Money Investment Account pursuant to Sections 16312 and
16313 of the Government  Code.

3. The maximum amount of bonds, notes, or bond anticipation notes
to be  sold shall not exceed  the cost of construction and
preconstruction activities and any additional  amounts necessary to
pay interim and permanent financing costs.

4. In the event the bonds authorized for the project are not sold,
the
Department of Forestry and  Fire Protection shall commit a sufficient

portion of its support  appropriation provided for in this  act to
repay
any loans. It is the intent of the Legislature that this  commitment
be
included in future  Budget Acts until outstanding loans are repaid
either through the sale of  bonds or from an  appropriation.

3540-401--Of the amount appropriated to the Special Fund for
Economic  Uncertainties, the  Director of Finance may allocate a
sufficient amount, not to exceed ten  million dollars  ($10,000,000),

to the Department of Forestry and Fire Protection for  emergency
fire suppression  for the 1997-98 fiscal year.

3540-402--In the event the bonds authorized for the project
scheduled in  Item 3540-301-660,  Budget Act of 1995, as
reappropriated by Item 3540-490, Budget Act of  1996, are not sold,
the  Department of Forestry and Fire Protection shall commit a
sufficient  portion of its support  appropriation provided for in
this
Budget Act to repay any loans from the  Pooled Money  Investment
Account. It is the intent of the Legislature that this commitment
shall
be included in  future Budget Acts until outstanding loans are repaid

either through the  sale of bonds or from an  appropriation.

3540-491--Reappropriation, Department of Forestry and Fire
Protection.  $3,100,000 of the  amount appropriated in Item
3540-001-0001, Budget Act of 1996, for  support of the California
Department of Forestry and Fire Protection is reappropriated for the
purpose of Air Program  Modernization/Airtanker Refurbishment.

3560-001-0001--For support of State Lands  Commission  . . .
9,419,000

Schedule:

(a) 10-Mineral Resources Management  . . . 6,522,000

(b) 20-Land Management  . . . 6,372,000

(c) 30.01-Executive and Administration  . . . 2,695,000

(d) 30.02-Distributed Administration  . . . -2,695,000

(e) 40-Marine Facilities Management   . . . 4,287,000

(f) Reimbursements  . . . -2,885,000

(g) Amount payable from the Oil Spill Prevention and Administration
Fund  (Item 3560-001-0320)   . . . -4,877,000

Provisions:

1. Notwithstanding subdivision (d) of Section 4 of Chapter 138 of
the  Statutes of 1964, 1st  Extraordinary Session, all commission
costs for administering Long Beach  Tidelands, exclusive of  any
Attorney General charges, shall be included in revenues deposited
into  the General Fund  pursuant to paragraph (2) of subdivision (a)
of Section 6217 of the Public  Resources Code.

2. All costs incurred to manage state school lands shall be deducted
from  the revenues produced   by those lands and deposited into the
General Fund pursuant to Section  24412 of the Education  Code.

3560-001-0320--For support of State Lands Commission, for
payment to  Item 3560-001-0001,  payable from the Oil Spill
Prevention and Administration Fund  . . .  4,877,000

Provisions:

1. Funds appropriated by this item shall not be expended to monitor
or  inspect marine bunkering  operations from barges or any marine
lightering operations.

3580-001-0001--For support of Seismic Safety Commission  . . .
783,000

Schedule:

(a) 10-Seismic Safety Commission  . . . 1,211,000

(b) Reimbursements  . . . -75,000

(c) Amount payable from the Earthquake Safety and Public Buildings
Rehabilitation Fund of 1990  (Item 3580-011-0768)  . . . -353,000


3580-011-0768--For support of Seismic Safety Commission, for
payment  to Item  3580-001-0001, payable from the Earthquake
Safety and Public Buildings  Rehabilitation Fund of  1990  . . .
353,000

3600-001-0001--For support of Department of Fish and Game, for
payment to Item  3600-001-0200  . . . 5,080,000

3600-001-0140--For support of Department of Fish and Game, for
payment to Item  3600-001-0200, payable from the California
Environmental License Plate  Fund  . . . 10,660,000

Provisions:

1. Of the funds appropriated by this item, $500,000 is for
reimbursement to  U.C. Santa Barbara  for a Natural Center for
Ecological Analysis and Synthesis.

3600-001-0200--For support of Department of Fish and Game
payable  from the Fish and Game  Preservation Fund  . . . 82,794,000


Schedule:

(a) 10-Enforcement of Laws and Regulations  . . . 34,937,000

(b) 15-Legal Services  . . . 602,000

(c) 35-Wildlife and Natural Heritage Management  . . . 42,565,000



(d) 55-Fisheries Management  . . . 61,190,000

(e) 60-Environmental Services  . . . 18,892,000

(f) 65-Oil Spill Prevention and Response Program  . . . 19,428,000



(g) 70.01-Administration  . . . 28,017,000

(h) 70.02-Distributed Administration  . . . -28,017,000

(i) Reimbursements  . . . -23,170,000

(j) Amount payable from the General Fund (Item 3600-001-0001)  . .
.  -5,080,000

(k) Amount payable from the California Environmental License Plate
Fund  (Item 3600-001-0140)   . . . -10,660,000

(l) Amount payable from the Fish and Wildlife Pollution Cleanup and
Abatement Account, Fish  and Game Preservation Fund (Item
3600-001-0207)  . . . -1,459,000

(m) Amount payable from the Public Resources Account, Cigarette
and  Tobacco Products Surtax  Fund (Item 3600-001-0235)  . . .
-6,153,000

(n) Amount payable from the Oil Spill Prevention and Administration
Fund  (Item 3600-0010320)   . . . -15,266,000

(o) Amount payable from the Oil Spill Response Trust Fund (Item
3600-001-0321)  . . .  -3,793,000

(p) Amount payable from the Environmental Enhancement Fund
(Item  3600-001-0322)  . . .  -100,000

(q) Amount payable from the Federal Trust Fund (Item
3600-0010890)  . .  . -29,139,000

Provisions:

1. The funds appropriated by this item may be increased with the
approval  of, and under the  conditions set by, the Department of
Finance to meet current obligations  proposed to be funded in
Schedules (i) and (q). The funds appropriated by this item shall not
be  increased until the  Department of Fish and Game has a valid
contract, signed by the client  agency, that provides  sufficient
funds
to finance the increased authorization. This increased  authorization

may not be  used to expand services or create new obligations.

  Reimbursements received under Schedules (i) and (q) shall be used
in  repayment of any funds  used to meet current obligations pursuant

to this provision.

2. Notwithstanding Section 6 of Chapter 732 of the Statutes of 1991,
or  Provision 2 of Item  3600-001-200 of Section 2.00 of the Budget
Act of 1994, the remaining  loan balance of  $1,500,000, plus
interest, shall be repaid from the Fish and Game  Preservation Fund
to the  Off-Highway Vehicle Fund on or before June 30, 1998.

3. Of the funds appropriated in this item, $203,000 is for
reimbursement to  the State Department   of Health Services for
shellfish monitoring activities.

4. Of the funds appropriated in this item, $1,468,000 is for support
of
the  Natural Communities  Conservation Planning (NCCP) Act
Program, with $77,000 payable from  the General Fund,  $319,000
payable from the Federal Trust Fund and in reimbursements,
$511,000 from the Wildlife  Conservation Board. Of the $511,000 in
reimbursements, $210,000 from  the Wildlife  Conservation Board
shall be used for purposes consistent with the  requirements of the
Public  Resources Account, Cigarette and Tobacco Products Surtax
Fund, and the  Habitat Conservation  Fund.

3600-001-0207--For support of the Department of Fish and Game,
for  payment to Item  3600-001-0200, payable from the Fish and
Wildlife Pollution Account, Fish  and Game  Preservation Fund  . . .

1,459,000

3600-001-0235--For support of Department of Fish and Game, for
payment to Item  3600-001-0200, payable from the Public Resources
Account, Cigarette and  Tobacco Products  Surtax Fund  . . .
6,153,000

3600-001-0320--For support of Department of Fish and Game, for
payment to Item  3600-001-0200, payable from the Oil Spill
Prevention and Administration  Fund  . . . 15,266,000

3600-001-0321--For support of Department of Fish and Game, for
payment to Item  3600-001-0200, payable from the Oil Spill
Response Trust Fund  . . .  3,793,000

Provisions:



1. Notwithstanding Chapter 7.4 (commencing with Section 8670.1)
of  Division 1 of Title 2 of the  Government Code, the appropriation
made by this item shall not result in  the imposition of  uniform oil

spill response fees.

3600-001-0322--For support of Department of Fish and Game, for
payment to Item  3600-001-0200, payable from the Environmental
Enhancement Fund  . . .  100,000

3600-001-0890--For support of Department of Fish and Game, for
payment to Item  3600-001-0200, payable from the Federal Trust
Fund  . . . 29,139,000

3600-011-0001--For support of Department of Fish and Game
(reimbursement of free fishing  licenses), for transfer to the Fish
and
Game Preservation Fund  . . . 17,000

3600-101-0200--For local assistance, Department of Fish and Game,
payable from the Fish and  Game Preservation Fund and to be
reimbursed by the Wildlife  Conservation Board from the  Habitat
Conservation Fund  . . . 0

Schedule:

(a) 35-Wildlife and Natural Heritage Management  . . . 1,600,000


(b) Reimbursements  . . . -1,600,000

Provisions:

1. Funds appropriated in this item shall be used consistent with the
requirements of the California  Environmental License Plate Fund
($600,000), the Renewable Resources  Investment Fund
($1,000,000), and the Habitat Conservation Fund.

3600-101-0320--For local assistance, Department of Fish and Game,
Program 65--Oil Spill  Prevention and Response, payable from the
Oil Spill Prevention and  Administration Fund  . . .  452,000

3600-101-0786--For local assistance, Department of Fish and Game,
payable from California  Wildlife, Coastal and Park Land
Conservation Fund, to the City of Santa  Paula for the Harvey  Dam
Fish Ladder  . . . 500,000

3600-301-0200--For capital outlay, Department of Fish and Game,
payable  from the Fish and  Game Preservation Fund  . . . 1,033,000



Schedule:

(1) 90.07.100-Minor Projects  . . . 1,176,000

(2) 90.88.020-Project Planning  . . . 40,000

(3) 90.92.002-Fish Springs Hatchery Water Well--Construction  . . .
358,000

(4) 90.97.001-Volcano Creek Golden Trout
Restoration--Construction  . .  . 499,000

(5) Reimbursements-Minor Projects  . . . -541,000

(6) Reimbursements-Volcano Creek Golden Trout
Restoration--Construction  . . . -499,000

Provisions:

1. Of the amount appropriated in Schedule (1) of this item, $541,000
shall  be used for purposes  consistent with the requirements of the
Public Resources Account,  Cigarette and Tobacco  Products Surtax
Fund and the Habitat Conservation Fund.

2. The funds appropriated in Schedule (1) for the following minor
projects  include funding for  construction activities including but
not
limited to costs related to work  performed by Department  of Fish
and Game personnel for the following projects: Reconstruct Bird
Exclosure, Fish Springs  Hatchery and Dutch John Fish Barrier,
South Fork Kern River.

3600-301-0207--For capital outlay, Department of Fish and Game,
payable  from the Fish and  Wildlife Pollution Account  . . . 25,000



Schedule:

(1) 90.07.100-Minor Projects  . . . 25,000

3600-301-0320--For capital outlay, Department of Fish and Game,
payable  from the Oil Spill  Prevention and Administration Fund  . .
.
35,000

Schedule:

(1) 90.07.100-Minor Projects  . . . 35,000

3600-301-0786--For capital outlay, Department of Fish and Game,
payable  from the Wildlife,  Coastal and Park Land Conservation
Fund of 1988  . . . 200,000

Schedule:

(1) 90.07.100-Minor Projects  . . . 200,000

3600-302-0200--For capital outlay, Department of Fish and Game,
payable  from the Fish and  Game Preservation Fund-Commercial
Augmented Salmon Stamp  Dedicated Account  . . .  185,000

Schedule:

(1) 90.07.100-Minor Projects  . . . 185,000

3600-490--Reappropriation, Department of Fish and Game. The
balances  of the appropriations  provided for in the following
citations are reappropriated for the purposes  and subject to the
limitations, unless otherwise specified, provided for in those
appropriations:

0200--Fish and Game Preservation Fund

(1) Item 3600-301-200(7), Budget Act of 1992, as reappropriated by
Item  3600-490, Budget  Acts of 1993, 1994, and 1996, for
liquidation. 90.92.02-Fish Springs  Hatchery, Water Well.

0320--Oil Spill Prevention and Administration Fund

(1) Item 3600-301-0320(1), Budget Act of 1996. 90.07.100--Minor
Projects.

0890--Federal Trust Fund

(1) Item 3600-301-890(1), Budget Act of 1995, as reappropriated by
Item  3600-490, Budget Act  of 1996. 90.07.100--Minor Projects.


3640-001-0262--For support of Wildlife Conservation Board, for
payment  to Item  3640-001-0447, payable from the Habitat
Conservation Fund  . . .  6,903,000

Provisions:

1. Of the amount appropriated by this item, $850,000 shall be
available to  the Department of  Water Resources to fund the Trinity
River Fish and Wildlife Restoration  Program ($350,000), the  San
Joaquin River Management Program ($200,000), and the Upper
Sacramento River Habitat  and Riparian Plan ($300,000), consistent
with the requirements of the  California Environmental  License Plate

Fund and the Habitat Conservation Fund.

2. Of the amount appropriated by this item, $591,000 shall be
available to  the Wildlife  Conservation Board for administrative
costs associated with the California  Wildlife Protection Act  of
1990
($315,000) and the Riparian Habitat Conservation Program
($276,000), consistent with  the requirements of the California
Environmental License Plate Fund, the  Unallocated Account,
Cigarette and Tobacco Products Surtax Fund, and the Habitat
Conservation Fund.

3. Of the amount appropriated by this item, $5,462,000 shall be
available to  the Department of  Fish and Game to fund:

(a) $1,242,000 for the Yolo Bypass Wildlife Area ($725,000), the
Upper  Butte Sink ($111,000),  the Natural Community
Conservation Planning Program as defined in  Chapter 10 of Division
3 of  the Fish and Game Code ($210,000), and the Napa Wetlands
($196,000),  consistent with the  requirements of the Public
Resources Account, (Cigarette and Tobacco  Products Surtax Fund),
the Unallocated Account (Cigarette and Tobacco Products Surtax
Fund)  and the Habitat  Conservation Fund.

(b) $200,000 for the Waterfowl Lease Program, consistent with the
Waterfowl Habitat  Preservation Account and the Habitat
Conservation Fund.

(c) $1,730,000 for habitat restoration, consistent with the
requirements of  the California Wildlife,  Coastal and Park Land
Conservation Fund of 1988 (Section 5907(e)(1) of  the Public
Resources  Code) and the Habitat Conservation Fund. (Of this
amount $430,000 is  Habitat Conservation  funds appropriated in the
1994-95 fiscal year.)

(d) $1,300,000 for the Comprehensive Wetlands Habitat Program
($650,000 Unallocated  Account; $650,000 Public Resources
Account), consistent with the  requirements of the  Unallocated
Account, Cigarette and Tobacco Products Surtax Fund, the  Public
Resources  Account, Cigarette and Tobacco Products Surtax Fund,
and the Habitat  Conservation Fund.

(e) $990,000 for the salmon and steelhead habitat restoration
activity
performed by the California  Conservation Corps under contract with
the Department of Fish and Game  ($98,000 Public  Resources
Account; $892,000 Unallocated Account), consistent with the  Public
Resources  Account, Cigarette and Tobacco Products Surtax Fund,
and the  Unallocated Account, Cigarette  and Tobacco Products
Surtax Fund, and the Habitat Conservation Fund.

3640-001-0447--For support of Wildlife Conservation Board,
payable from  the Wildlife  Restoration  Fund  . . . 734,000

Schedule:

(a) 10-Wildlife Conservation Board  . . . 7,637,000

(b) Amount payable from the Habitat Conservation Fund (Item
3640-001-0262)  . . . -6,903,000

3640-011-0140--For transfer by the State Controller to the Habitat
Conservation Fund, payable  from the California Environmental
License Plate Fund  . . . (1,222,000)

Provisions:

1. The funds transferred by this item shall be used for purposes
consistent  with the requirements  of the California Environmental
License Plate Fund and the Habitat  Conservation Fund.

3640-011-0211--For transfer by the State Controller to the Habitat
Conservation Fund, payable  from the Waterfowl Habitat
Preservation Account, Fish and Game  Preservation Fund  . . .
(200,000)

Provisions:

1. The funds transferred by this item shall be used for purposes
consistent  with the requirements  of the Waterfowl Habitat
Preservation Account, Fish and Game  Preservation Fund, and the
Habitat Conservation Fund.

3640-011-0235--For transfer by the State Controller to the Habitat
Conservation Fund, payable  from the Public Resources Account,
Cigarette and Tobacco Products  Surtax Fund  . . .  (1,879,000)

Provisions:

1. The funds transferred by this item shall be used for purposes
consistent  with the requirements  of the Public Resources Account,
Cigarette and Tobacco Products Surtax  Fund, and the Habitat
Conservation Fund.

3640-011-0786--For transfer by the State Controller to the Habitat
Conservation Fund, payable  from the California Wildlife, Coastal,
and Park Land Conservation Fund of  1988  . . . 1,300,000

Provisions:

1. The funds transferred by this item shall be used for purposes
consistent  with the requirements  of the California Wildlife,
Coastal,
and Park Land Conservation Fund of  1988 and the Habitat
Conservation Fund.

2. For purposes of Section 2796 of the Fish and Game Code, money
shall  be deemed "transferred  to the Habitat Conservation Fund"
from the California Wildlife, Coastal,  and Park Land  Conservation
Fund of 1988 pursuant to this item on the effective date of  this
act.


3640-012-0262--For transfer by the Controller to the Agricultural
Land  Stewardship Program  Fund, payable from the Habitat
Conservation Fund  . . . 105,000

Provisions:

1. The funds transferred by this item shall be available to the
Department of  Conservation to fund  the Agricultural Land
Stewardship Program pursuant to Chapter 931 of the  Statutes of
1995, and  shall be used for purposes consistent with the
requirements of the Habitat  Conservation Fund.

2. The Habitat Conservation Funds appropriated in this item were
originally appropriated in the  1995-96 fiscal year. Per Item
3640-495, these funds will revert June 30,  1997.

3640-101-0140--For transfer by the State Controller to the Habitat
Conservation Fund, payable  from the California Environmental
License Plate Fund  . . . (600,000)

Provisions:

1. The funds transferred by this item shall be used for purposes
consistent  with the requirements  of the California Environmental
License Plate Fund and the Habitat  Conservation Fund.

3640-101-0176--For transfer by the State Controller to the Habitat
Conservation Fund, payable  from the Delta Flood Protection Fund  .
. . (800,000)

Provisions:

1. The funds transferred by this item shall be used for purposes
consistent  with the requirements  of the Delta Flood Protection Fund

and the Habitat Conservation Fund.

3640-101-0262--For local assistance, Wildlife Conservation Board,
payable  from Habitat  Conservation Fund  . . . 2,400,000

Provisions:

1. Of the amount appropriated by this item, $800,000 shall be
available to  the Department of  Water Resources to fund the Delta
Protection Program, consistent with the  requirements of the  Delta
Flood Protection Fund and the Habitat Conservation Fund.

2. Of the amount appropriated by this item, $1,600,000 shall be
available to  the Department of  Fish and Game for the Natural
Community Conservation Planning  program, as defined in Chapter
10 (commencing with Section 2800) of Division 3 of the Fish and
Game  Code and consistent with  the requirements of the California
Environmental License Plate Fund, the  Renewable Resources
Investment Fund, and the Habitat Conservation Fund.

3640-111-0940--For transfer by the State Controller to the Habitat
Conservation Fund, payable  from the Renewable Resources
Investment Fund  . . . (1,000,000)

Provisions:

1. The funds transferred by this item shall be used for purposes
consistent  with the requirements  of the Renewable Resources
Investment Fund and the Habitat  Conservation Fund.

3640-112-0262--For transfer by the Controller to the Agricultural
Land  Stewardship Program  Fund, payable from the Habitat
Conservation Fund  . . . (1,870,000)

Provisions:

1. The funds transferred by this item shall be available to the
Department  of Conservation to fund  the Agricultural Land
Stewardship Program pursuant to Chapter 931 of the  Statutes of
1995, and  shall be used for purposes consistent with the
requirements of the Habitat  Conservation Fund.

2. The Habitat Conservation Funds which are appropriated in this
item  were originally  appropriated in the 1995-96 and 1996-97 fiscal

year. Per Item 3640-495,  the funds will revert  June 30, 1997.

3640-301-0140--For capital outlay, Wildlife Conservation Board,
payable  from the California  Environmental License Plate Fund  . . .

760,000

3640-301-0235--For capital outlay,Wildlife Conservation Board,
payable  from the Public  Resources Account, Cigarette and Tobacco
Products Surtax Fund  . . .  936,000

3640-301-0262--For capital outlay, Wildlife Conservation Board,
payable  from the Habitat  Conservation Fund  . . . 12,127,000

Provisions:

1. Of the amount appropriated by this item, $541,000 shall be
available to  the Department of Fish  and Game for wetlands minor
capital outlay projects, consistent with the  requirements of the
Public Resources Account (Cigarette and Tobacco Products Surtax
Fund)  and the Habitat  Conservation Fund.

2. Of the amount appropriated by this item, $11,586,000 shall be
available  to the Wildlife  Conservation Board to fund:

(a) $6,400,000 for land acquisition for the Natural Community
Conservation Planning Program as  defined in Chapter 10 of Division
3 of the Fish and Game Code ($733,000  Public Resources  Account,
Cigarette and Tobacco Products Surtax Fund; $3,667,000  California
Environmental  License Plate Fund; and $2,000,000 Habitat
Conservation Fund), and  consistent with the Public  Resources
Account (Cigarette and Tobacco Products Surtax Fund), the
California Environmental  License Plate Fund, and the Habitat
Conservation Fund.

(b) $1,000,000 for the Inland Wetlands Conservation Program
pursuant to  Section 1411 of the  Fish and Game Code, and
consistent with the Unallocated Account  (Cigarette and Tobacco
Products Surtax Fund) and the Habitat Conservation Fund.

(c) $1,000,000 for land acquisition in the San Francisco Bay,
consistent  with the requirements of  the California Wildlife Coastal

and Park Land Conservation Fund of 1988  (Section 5907(c)(10) of
the Public Resources Code) and the Habitat Conservation Fund.

(d) $500,000 for land acquisition of inland, San Pablo Bay and
Coastal  wetlands in Sonoma  County including the Laguna de Santa
Rosa, consistent with the  requirements of the California  Wildlife
Coastal and Park Land Conservation Fund of 1988 (Section
5907(c)(10) of the Public  Resources Code) and the Habitat
Conservation Fund.

(e) $1,111,000 for Heenan Lake Water Storage, consistent with the
California Wildlife Coastal  and Park Land Conservation Fund of
1988 (Section 5907(e)(10) of the  Public Resources Code)  and the
Habitat Conservation Fund.

(f) $350,000 for Rincon Creek Culvert, consistent with the California

Wildlife Coastal and Park  Land Conservation Fund of 1988 (Section
5907(e)(10) of the Public  Resources Code) and the  Habitat
Conservation Fund.

(g) $225,000 for wildlife habitat acquisition projects consistent
with
the  Wildlife Restoration Fund  and the Habitat Conservation Fund.


(h) $1,000,000 for a Habitat Conservation Plan for Kern County,
consistent with the Renewable  Resources Investment Fund and the
Habitat Conservation Fund.

3640-301-0447--For capital outlay, Wildlife Conservation Board,
payable  from the Wildlife  Restoration Fund, in lieu of the
appropriation made by the Wildlife  Conservation Law of 1947  . .  .

1,175,000

Schedule:

(1) 80.10.010-Minor Projects  . . . 900,000

(2) 80.10.030-Land Acquisitions  . . . 275,000

Provisions:

1. The funds appropriated in this item are provided in accordance
with the  provisions of the  Wildlife Conservation Law of 1947 and,
therefore, shall not be subject to  Public Works Board  review.

2. The amount appropriated in this item is available for expenditure
for  capital outlay or local  assistance.

3640-301-0545--For capital outlay, Wildlife Conservation Board,
payable  from the River  Parkway Subaccount, Safe, Clean, Reliable
Water Supply Fund  . . .  9,300,000

Provision:

1. Of the amount appropriated $5,000,000 shall be used for the San
Joaquin River Parkway in  furtherance of the mission of the San
Joaquin River Conservancy.

3640-311-0140--For transfer by the State Controller from the
California  Environmental License  Plate Fund to the Habitat
Conservation Fund, as of June 30, 1997, and  June 30, 1998, the sum
of  $1,000 or other amount as is necessary to preclude a transfer for

the  1996-97 and 1997-98 fiscal  years from the General Fund to the
Habitat Conservation Fund pursuant to  Section 2796 of the  Fish
and Game Code  . . . (3,667,000)

Provisions:

1. The funds transferred by this item shall be used for purposes
consistent  with the requirements  of the California Environmental
License Plate Fund and the Habitat  Conservation Fund.

3640-311-0235--For transfer by the State Controller to the Habitat
Conservation Fund, payable  from the Public Resources Account,
Cigarette and Tobacco Products  Surtax Fund  . . .  (1,274,000)

Provisions:

1. The funds transferred by this item shall be used for purposes
consistent  with the requirements  of the Public Resources Account,
Cigarette and Tobacco Products Surtax  Fund, and the Habitat
Conservation Fund.

3640-311-0447--For transfer by the State Controller to the Habitat
Conservation Fund, payable  from the Wildlife Restoration Fund  . . .

(225,000)

3640-311-0786--For transfer by the State Controller to the Habitat
Conservation Fund, payable  from the California Wildlife, Coastal,
and Park Land Conservation Fund of  1988  . . . 2,961,000

Provisions:

1. The funds transferred by this item shall be used for purposes
consistent  with the California  Wildlife, Coastal and Park Land
Conservation Fund of 1988 and the  Habitat Conservation Fund.

2. For purposes of Section 2796 of the Fish and Game Code, money
shall  deemed "transferred to  the Habitat Conservation Fund" from
the California Wildlife, Coastal, and  Park Land  Conservation Fund
of 1988 pursuant to this item on the effective date of  this act.


3640-311-0940--For transfer by the State Controller to the Habitat
Conservation Fund, payable  from the Renewable Resources
Investment Fund  . . . (1,000,000)

Provisions:

1. The funds transferred by this item shall be used for purposes
consistent  with the requirements  of the Renewable Resources
Investment Fund and the Habitat  Conservation Fund.

3640-495--Reversion, Wildlife Conservation Board. As of June 30,
1997,  the specified balances  of the appropriations provided in the
following citations shall revert to the  balance in the fund  which
the
appropriation was made:

0262--Habitat Conservation Fund

(1) Item 3640-301-0262, Budget Act of 1996, $1,000,000



(2) Item 3640-301-0262, Budget Act of 1995, $975,000

3680-001-0516--For support of Department of Boating and
Waterways,  payable from the  Harbors and Watercraft Revolving
Fund  . . . 10,612,000

Schedule:

(a) 10-Boating Facilities  . . . 7,190,000

(b) 20-Boating Operations  . . . 4,347,000

(c) 30-Beach Erosion Control  . . . 190,000

(d) 40.01-Administration  . . . 1,903,000

(e) 40.02-Distributed Administration  . . . -1,903,000

(f) Reimbursements  . . . -15,000

(g) Amount payable from the Federal Trust Fund (Item
3680-0010890)  . .  . -1,100,000

Provisions:

1. Notwithstanding Section 85.2 of the Harbors and Navigation
Code,  $190,000 of the funds  appropriated by this item shall be
expended for support of the Department  of Boating and  Waterways
beach erosion control program.

3680-001-0890--For support of Department of Boating and
Waterways,  for payment to Item  3680-001-0516, payable from the
Federal Trust Fund  . . . 1,100,000

3680-101-0516--For local assistance, Department of Boating and
Waterways, payable from the  Harbors and Watercraft Revolving
Fund  . . . 43,462,000

Schedule:

(a) 10-Boating Facilities  . . . 34,006,000

Launching Facility Grants  . . . (14,068,000)

1) Lake Amador  . . . (510,000)

2) Anderson Lake  . . . (860,000)

3) Berkeley Marina  . . . (325,000)

4) Broderick  . . . (330,000)

5) Bullards Bar Reservoir  . . . (77,000)

6) Lake Cachuma  . . . (274,000)

7) Lake Clementine  . . . (575,000)

8) Coleman's Drive  . . . (620,000)

9) Eureka  . . . (600,000)

10) Evans Lake  . . . (419,000)

11)  Fee Reservoir  . . . (179,000)

12) Floating Restrooms  . . . (200,000)

13) Ice House Resv., Union Valley Resv., Loon Lake  . . . (531,000)


14) Mendota Delta  . . . (295,000)

15) Lake Nacimiento  . . . (2,153,000)

16) New Spicer Meadow Resv.  . . . (398,000)

17) Pier 54  . . . (198,000)

18) Ramp Repairs, Extensions   . . . (200,000)

19) Rollins Lake/Long Ravine  . . . (382,000)

20) Rollins Lake/Orchard Spgs.  . . . (463,000)

21) Lake San Antonio  . . . (913,000)

22) Signs  . . . (74,000)

23) Sly Creek  . . . (379,000)

24) South Shore  . . . (1,250,000)

25) Stumpy Meadows  . . . (431,000)

26) Tooms, Little Grass Valley  . . . (359,000)

27) Tulloch Resv.  . . . (543,000)

28) Vessel Pumpout  . . . (100,000)

29) Whiskey Creek  . . . (430,000)

Small Craft Harbors Loans  . . . (12,327,000)

1) Emergency Loans  . . . (200,000)

2) Marina del Rey  . . . (9,673,000)

3) Planning Loans   . . . (200,000)

4) Sacramento  . . . (500,000)

5) Santa Cruz   . . . (1,754,000)

Private Marina Loans  . . . (6,000,000)

Clean Vessel Act Grant Program  . . . (1,267,000)

Aquatic Weed Control Project  . . . (44,000)

Boating Trails  . . . (300,000)

(b) 20-Boating Operations  . . . 8,475,000

(c) 30-Beach Erosion Control  . . . 3,423,000

(d) Amount payable from the Federal Trust Fund (Item
3680-1010890)  . .  . -2,442,000

Provisions:

1. Notwithstanding Section 16304.1 of the Government Code, funds
identified in Schedule (a)  for Private Marina Loans shall be
available
for liquidation for three years  following the last day  the
appropriation is available for encumbrance upon certification to the
Department of Finance by  the Department of Boating and
Waterways that exigent circumstances exist  resulting in projects
delays.

2. Of the funds appropriated in Schedule (b), $7,600,000 is for
boating  safety and enforcement  programs pursuant to Section 663.7
of the Harbors and Navigation Code.

3. Of the funds appropriated in Schedule (c), $1,650,000 is available

for a  grant to the San Diego  Association of Governments to pay for
costs associated with the United  States Navy Aircraft  Carrier
Homeporting Project in the San Diego Harbor.

3680-101-0890--For local assistance, Department of Boating and
Waterways, for payment to  Item 3680-101-0516, payable from the
Federal Trust Fund  . . . 2,442,000

Provisions:



1. Of the amount appropriated by this item, $875,000 shall be for
grants to  local governments for  boating safety and law enforcement,

15 percent of which shall be allocated  according to the  department'
s
discretion, and 85 percent of which shall be allocated by the
department in  accordance with the following priorities:



  First--To local governments that are eligible for state aid because

they are  spending all their local  boating revenue on boating
enforcement and safety, but are not receiving  sufficient state funds

to  meet their calculated need as defined in Section 663.7 of the
Harbors and  Navigaton Code.



  Second--To local governments that are not spending all local
boating  revenue on boating  enforcement and safety, and whose
boating revenue does not equal their  calculated need. Local
assistance shall not exceed the difference between the calculated
need
and  local boating revenue.



  Third--To local governments whose boating revenue exceeds their
need,  but who are not  spending sufficient local revenue to meet
their calculated need.

2. Of the amount appropriated by this item, $1,267,000 shall be
available to  fund construction and  educational programs consistent
with the Clean Vessel Act Grant Program.

  3680-301-0516--For capital outlay, Department of Boating and
Waterways, payable from the  Harbors and Watercraft Revolving
Fund  . . . 8,692,000

Schedule:

(1) 50.01.020-Lake Del Valle, Boat Launching
Facility--Construction  . . .  1,358,000

(2) 50.04.020-Oroville Lake SRA, Spillway--Preliminary plans and
working drawings  . . .  215,000

(3) 50.19.030-Pyramid Lake-Emigrant Landing, Boat Launching
Facility--Preliminary plans and  working drawings  . . . 125,000


(4) 50.24.020-San Luis SRA, O'Neill Forebay, Boat Launching
Facility  --Construction  . . .  960,000

(5) 50.31.010-Folsom Lake SRA, Granite Bay, Boat Launching
Facility  --Construction  . . .  1,006,000

(6) 50.33.020-Lake Perris SRA, Boat Launching
Facility--Construction  . .  . 1,610,000

(7) 50.33.030-Lake Perris, Areas 6 & 7--Preliminary plans and
working  drawings  . . . 114,000

(8) 50.37.010-Silver Strand State Beach, Crown Cove--Working
drawings   . . . 106,000

(9) 50.99.010-Project Planning  . . . 75,000

(10) 50.99.020-Minor Projects  . . . 3,123,000

Provisions:



1. Funds appropriated in Schedule (9) shall be used to develop design

information or cost  information for new projects for which funds
have not been appropriated  previously, but which  are anticipated to

be included in the Governor's Budget for the 1998-99 or  1999-2000
fiscal year.

3720-001-0001--For support of California Coastal Commission  . . .
5,750,000

Schedule:

(a) 10-Coastal Management Program  . . . 9,472,000

(b) 20-Coastal Energy Program  . . . 528,000

(c) 30.01-Administration  . . . 2,209,000

(d) 30.02-Distributed Administration  . . . -1,244,000

(e) Reimbursements  . . . -965,000

(f) Amount payable from the California Environmental License Plate
Fund  (Item 3720-001-0140)   . . . -1,242,000

(g) Amount payable from the Federal Trust Fund (Item
3720-0010890)  . .  . -3,008,000

3720-001-0140--For support of California Coastal Commission, for
payment to Item  3720-001-0001, payable from the California
Environmental License Plate  Fund  . . . 1,242,000

3720-001-0890--For support of California Coastal Commission, for
payment to Item  3720-001-0001, payable from the Federal Trust
Fund  . . . 3,008,000

3720-101-0001--For local assistance, California Coastal Commission
. . .  500,000

Schedule:

(1) 10-Coastal Management Program  . . . 500,000

Provisions:

1. Of the funds appropriated in this item, up to $500,000 shall be
available  for grants to local  jurisdictions for the completion of
Local
Coastal Program Plan elements, as  defined in Section  30108.6 of
the Public Resources Code. If local government agencies do  not
accept these grant  funds to prepare the Local Coastal Program
Plans, then with the approval  of the Department of  Finance, the
California Coastal Commission may retain a portion of these  funds
to prepare the  Local Coastal Program Plans for such local entities.



2. Notwithstanding any other provision of law, the funds
appropriated by  this item are available  for encumbrance for either
local assistance or support.

3720-295-0001--For local assistance, California Coastal
Commission, for  reimbursement, in  accordance with the provisions
of Section 6 of Article XIII B of the  California Constitution or of
Section 17561 of the Government Code, of the costs of any new
program  or increased level of  service of an existing program
mandated by statute or executive order,  State Controller  . . . 0


Schedule:

(1) 98.01.133.076-Local coastal plans (Ch. 1330, Stats. 1976)  . . .
0


Provisions:

1. Pursuant to Section 17581 of the Government Code, the mandate
identified in the  appropriation schedule of this item with an
appropriation of $0 and  included in the language of  this provision
is
specifically identified by the Legislature for suspension  during the

1997-98 fiscal  year:

(a) Local coastal plans (Ch. 1330, Stats. 1976)

3760-001-0001--For support, State Coastal Conservancy, for
payment to  Item 3760-001-0565  . .  . 170,000

3760-001-0565--For support of State Coastal Conservancy, payable
from  the State Coastal  Conservancy Fund of 1976  . . . 2,955,000



Schedule:

(a) 15--Coastal Resource Development  . . . 2,593,000

(b) 25--Coastal Resource Enhancement  . . . 1,580,000

(c) 90.01--Administration and Support  . . . 1,336,000

(d) 90.02--Distributed Administration  . . . -1,336,000

(e) Reimbursements  . . . -6,000

(f) Amount payable from the General Fund (Item 3760-001-0001)  . .
.  -170,000

(g) Amount payable from the Parklands Fund of 1980 (Item
3760-001-0721)  . . . -123,000

(h) Amount payable from the State Coastal Conservancy Fund of
1984  (Item 3760-001-0730)  . .  . -832,000

(i) Amount payable from the Federal Trust Fund (Item
3760-001-0890)  . .  . -87,000

3760-001-0721--For support of the State Coastal Conservancy, for
payment to Item  3760-001-0565, payable from the Parklands Fund
of 1980  . . . 123,000

3760-001-0730--For support of the State Coastal Conservancy, for
payment to Item  3760-001-0565, payable from the State Coastal
Conservancy Fund of 1984   . . . 832,000

3760-001-0890--For support of the State Coastal Conservancy, for
payment to Item  3760-001-0565, payable from the Federal Trust
Fund  . . . 87,000

3760-301-0001--For capital outlay, State Coastal Conservancy  . . .
12,589,000

Schedule:

(1) 80.97.060-Natural Community Conservation Planning Program  .
. .  5,000,000

(2) 80.97.070-Coastal Initiative  . . . 7,589,000

Provisions:

1. Notwithstanding any other provision of law, the funds
appropriated by  this item are available  for encumbrance for either
capital outlay or local assistance through the  1999-2000 fiscal
year.


3760-301-0262--For capital outlay, State Coastal Conservancy,
payable  from the Habitat  Conservation Fund  . . . 4,000,000

Schedule:

(1) 80.93.025--Coastal Resource Enhancement  . . . 4,651,000

(2) Reimbursements  . . . -651,000

Provisions:

1. The State Coastal Conservancy shall not enter into a grant
contract with  a nonprofit  organization or local government for
property acquisition that provides for  either of the  following:

a. A reversionary interest to the State, unless the grant contract
specifies  that the property shall  not revert to the State without
review and approval by the conservancy and  the State Public  Works
Board.

b. A state leasehold interest in property acquired by a nonstate
public
agency with conservancy  grant funds, unless the lease terms are
approved by the Director of General  Services. Except to  the extent
above, the expenditures of funds for grants to public agencies  and
nonprofit  organizations shall be exempt from State Public Works
Board review.

2. The funds appropriated by this item are available for encumbrance
for  either capital outlay or  local assistance without regard to
fiscal
year.

3. The funds appropriated by this item shall be used for purposes
consistent  with the Unallocated  Account, Cigarette and Tobacco
Products Surtax Fund and the Habitat  Conservation Fund.

4. Of the amount appropriated in this item, $1 million shall be
utilized
for  projects on the Napa  River.

3760-301-0545--For capital outlay, River Parkway Subaccount,
1996 Safe,  Clean, Reliable Water  Supply Fund  . . . 7,000,000

Schedule:

(1) 80.97.090--River Parkway Program, Los Angeles River and
Tributaries   . . . 2,000,000

(2) 80.97.091--River Parkway Program, Napa River  . . . 1,000,000


(3) 80.97.092--River Parkway Program, Otay River  . . . 3,000,000


(4) 80.97.093--River Parkway Program, Russian River  . . .
1,000,000

Provisions:

1. The State Coastal Conservancy shall not enter into a grant
contract with  a nonprofit  organization or local government for
property acquisition that provides for  either of the  following:

(a) A reversionary interest to the State, unless the grant contract
specifies  that the property shall  not revert to the State without
review and approval by the State Coastal  Conservancy and the
Public Works Board.

(b) A state leasehold interest in property acquired by a nonstate
public  agency with conservancy  grant funds, unless the lease terms
are approved by the Director of General  Services. Except to  the
extent specified above, the expenditures of funds for grants to
public
agencies and nonprofit  organizations shall be exempt from review by
the Public Works Board.

2. Notwithstanding any other provision of law, the funds
appropriated by  this item are available  for encumbrance for either
capital outlay or local assistance through the  1999-2000 fiscal
year.


3760-301-0565--For capital outlay, State Coastal Conservancy,
payable  from the State Coastal  Conservancy Fund of 1976  . . .
500,000

Schedule:

(1) 80.93.015--Coastal Resource Development  . . . 500,000

Provisions:

1. The conservancy shall not enter into a grant contract with a
nonprofit  organization or local  government for property acquisition

which provides for either of the  following:

(a) A reversionary interest to the State, unless the grant contract
specifies  that the property shall  not revert to the State without
review and approval by the conservancy and  the State Public  Works
Board.

(b) A state leasehold interest in property acquired by a nonstate
public  agency with conservancy  grant funds, unless the lease terms
are approved by the Director of General  Services. Except to  the
extent above, the expenditures of funds for grants to public agencies

and nonprofit  organizations shall be exempt from State Public
Works Board review.

2. The amount appropriated by this item is available for encumbrance
for  either capital outlay or  local assistance through fiscal year
1999-2000.

3760-301-0890--For capital outlay, State Coastal Conservancy,
payable  from the Federal Trust  Fund  . . . 1,500,000

Schedule:



(1) 80.93.025-Coastal Resource Enhancement  . . . 1,500,000

Provisions:

1. The State Coastal Conservancy shall not enter into a grant
contract with  a nonprofit  organization or local government for
property acquisition that provides for  either of the  following:

(a) A reversionary interest to the State, unless the grant contract
specified  that the property shall  not revert to the State without
review and approval by the State Coastal  Conservancy and the
Public Works Board.

(b) A state leasehold acquired by a nonstate public agency with grant

funds  of the State Coastal  Conservancy, unless the lease terms are
approved by the Director of  General Services. Except as  specified
in paragraph (a), the expenditure of funds for grants to public
agencies and nonprofit  organizations is exempt from the review of
the Public Works Board.

2. The funds appropriated by this item are available for encumbrance
for  either capital outlay or  local assistance through the 1999-2000

fiscal year.

3790-001-0001--For support of Department of Parks and
Recreation, for  payment to Item  3790-001-0392  . . . 65,164,000



3790-001-0140--For support of Department of Parks and
Recreation, for  payment to Item  3790-001-0392, payable from the
California Environmental License Plate  Fund  . . . 108,000

3790-001-0235--For support of Department of Parks and
Recreation, for  payment to Item  3790-001-0392, payable from the
Public Resources Account, Cigarette and  Tobacco Products  Surtax
Fund  . . . 11,630,000

3790-001-0263--For support of Department of Parks and
Recreation, for  payment to Item  3790-001-0392, payable from the
Off-Highway Vehicle Trust Fund  . . .  13,481,000

3790-001-0392--For support of Department of Parks and Recreation
. . .  81,387,000

Schedule:

(a) For support of the Department of Parks and Recreation  . . .
186,018,000

(b) Reimbursements  . . . -8,125,000

(c) Amount payable from the General Fund (Item 3790-001-0001)  .
. .  -65,164,000

(d) Amount payable from the California Environmental License Plate
Fund  (Item 3790-001-0140)   . . . -108,000

(e) Amount payable from the Public Resources Account, Cigarette
and  Tobacco Products Surtax  Fund (Item 3790-001-0235)  . . .
-11,630,000

(f) Amount payable from the Public Resources Account, Cigarette
and  Tobacco Products Surtax  Fund (carryover transfer from Item
3790-101-0235 per Provision 1,  Budget Act of 1996)  . . .  -16,000



(g) Amount payable from the Habitat Conservation Fund (carryover
transfer from Item  3790-101-0262 per Provision 1, Budget Act of
1996)  . . . -30,000

(h) Amount payable from the Off-Highway Vehicle Trust Fund (Item
3790-001-0263)  . . .  -13,481,000

(i) Amount payable from the Winter Recreation Fund (Item
3790-001-0449)  . . . -150,000

(j) Amount payable from the Harbors and Watercraft Revolving Fund
(Item  3790-001-0516)  . . .  -615,000

(k)  Amount payable from the Parklands Fund of 1984 (Item
3790-001-0722)  . . . -2,417,000

(l) Amount payable from the Recreational Trails Fund (Item
3790-001-0858)  . . . -150,000

(m) Amount payable from the Federal Trust Fund (Item
3790-001-0890)  .  . . -2,745,000

Provisions:

1. Of the funds appropriated by this act from state special funds,
other than  the Off-Highway  Vehicle Trust Fund and bond funds, to
the Department of Parks and  Recreation for local  assistance grants
to local agencies, the department may allocate an amount  not to
exceed 1.5  percent of each project's allocation to provide for the
department's costs to  administer these  grants.

2. The funds appropriated by this act for the support of the
Department of  Parks and Recreation  shall be expended as
authorized by this item and as set forth in the  Memorandum of
Understanding as adopted by the Legislature as a part of the annual
budget  process, and as  reflected in the Supplemental Report of the
1997 Budget Act.

3. Notwithstanding any other provision of law, the Department of
Parks  and Recreation is hereby  granted the authority, for which it
may expend funds appropriated by this  item, to do either of the
following: (a) exercise the same authority granted to the Division of

the  State Architect and the  Office of Real Estate and Design
Services in the Department of General  Services to acquire, plan,
design, construct, and administer contracts and professional
services,
and  (b) permit the Prison  Industry Authority (PIA) to participate
as
a competitive bidder rather than  as the sole source with  regard to
contracts and services.

4. Notwithstanding any other provision of law, the Director of the
Department of Parks and  Recreation, or his or her designee, in lieu
of the Director of Finance, is  authorized to carry out the
provisions
of subdivisions (b), (c), and (d) of Section 31.00 of this act.

5. Notwithstanding subdivision (a) of Section 948 and Section 965 of
the  Government Code, the  Director of the Department of Parks and
Recreation or his or her designee,  in lieu of the Director  of
Finance,
is authorized to certify funds for the payment of all legal
settlements,
State Board of  Control claims, judgments, and tort claims, for which

the department has  sufficient expenditure  authority and funds
without the need for an augmentation.

6. Notwithstanding Section 11032 of the Government Code, the
Director  of the Department of  Parks and Recreation, or his or her
designee, may authorize its officers and  employees to travel
outside
the state or country without approval by any other agency, and the
funds appropriated by  this item may be used for this purpose.

7. Notwithstanding Sections 8647, 11005, and 11005.1 of the
Government  Code, the Department  of Parks and Recreation may
accept gifts and donations of personal and  real property without
approval by the Director of Finance. The Department of Parks and
Recreation shall bear any costs  associated with the acceptance of
those gifts and donations, and the funds  appropriated by this  item
may be used for this purpose. The Department of Parks and
Recreation shall not certify the  fair market value of any gift or
donation of real property without  performing its own appraisal.
Upon receipt of any gift or donation of real property, the Department

of  Parks and Recreation  shall certify to the Department of Finance
in writing that:

(a) The gift or donated property will have minimal impact on the
operation  and maintenance costs  and the Department of Parks and
Recreation will absorb the costs within its  existing budget.

(b) The gift or donated property is adjacent to an existing park.

(c) The gift or donated property promotes park purposes.

(d) The gift or donated property has no evidence or history of
environmental hazards or  contamination.

(e) There are no lawsuits pending concerning the property, and clear
title is  a condition of the  acceptance of the gift or donation.

(f) The gift or donated property has an estimated fair market value
of
less  than five hundred  thousand dollars ($500,000).

(g) There are no provisions that will restrict the Department of
Parks
and  Recreation from  divesting title to the gift or donated
property.


(h) There are no structures on the property, or any structures on the

property will be razed.

  If one or more of the criteria listed in this provision are not
met, the
department shall obtain  approval from the Department of Finance to
accept the gift or donation of  real property.

  Any gifts and donations that will require future budget change
proposals  shall be submitted to  the Department of Finance for
approval.

8. Notwithstanding Section 12439 of the Government Code, the
Department of Parks and  Recreation is exempt from the provisions
that abolish, effective July 1, any  positions that were  vacant
continuously during the period between October 1 and June 30 of
the preceding year.

9. Notwithstanding any other provision of law, the Director of the
Department of Parks and  Recreation, or his or her designee, in lieu
of the Director of Finance, is  authorized to approve  Budget
Revision, Standard Form 26.

10. Notwithstanding Section 16304.1 of the Government Code, the
Director of the Department of  Parks and Recreation, or his or her
designee, in lieu of the Director of  Finance, is authorized to
carry
out this section as it relates to the reversion of undisturbed
balances
and the payment of  unpaid encumbrances.

11. Notwithstanding any other provision of law, the Director of
Parks and  Recreation or his or  her designee, in lieu of the
Director
of Finance, is authorized to approve  Department of General
Services' Form 22's, Form 220's and the Return of Funds Document,
provided the department has  the following approved project forms
for the related phase (Capital Outlay)  or activity--DF14D or  DPR18
(Capital Outlay) or DPR11 (Support).

12. Notwithstanding any other provision of law, the Director of
Parks and  Recreation may prepay  vendors for non-Capital Outlay
expenditures when it is cost-beneficial to  the department. In the
event the department incurs any losses due to the prepayment of
vendors,  the department shall  report such losses to the Joint
Legislative Budget Committee, to the  appropriate fiscal committees
of the Legislature and to the Department of Finance.

3790-001-0449--For support of Department of Parks and
Recreation, for  payment to Item  3790-001-0392, payable from the
Winter Recreation Fund  . . . 150,000

3790-001-0516--For support of Department of Parks and
Recreation, for  payment to Item  3790-001-0392, payable from the
Harbors and Watercraft Revolving Fund   . . . 615,000

3790-001-0722--For support of Department of Parks and
Recreation, for  payment to Item  3790-001-0392, payable from the
Parklands Fund of 1984  . . . 2,417,000

3790-001-0858--For support of Department of Parks and
Recreation, for  payment to Item  3790-001-0392, payable from the
Recreational Trails Fund  . . . 150,000

3790-001-0890--For support of Department of Parks and
Recreation, for  payment to Item  3790-001-0392, payable from the
Federal Trust Fund  . . . 2,745,000

3790-011-0062--For support of Department of Parks and
Recreation, for  transfer by the State  Controller to the State Parks

and Recreation Fund, as prescribed by  subdivision (a) of Section
2107.7 of the Streets and Highways Code, for expenditure by the
department for maintenance and  repair of highways in units of the
state park system, payable from the  Highway Users Tax  Account,
Transportation Tax Fund  . . . (3,400,000)

3790-012-0061--For transfer by the State Controller from the Motor
Vehicle Fuel Account,  Transportation Tax Fund, to the State Parks
and Recreation Fund  . . .  (11,649,000)

Provisions:

1. Notwithstanding any other provision of law, of the amount that
would  have transferred to the  Harbors and Watercraft Revolving
Fund from the Motor Vehicle Fuel  Account, Transportation  Tax
Fund, the amount of this item shall be available for transfer from
the
Motor Vehicle Fuel  Account, Transportation Tax Fund to the State
Parks and Recreation Fund.

  3790-101-0262--For local assistance, Department of Parks and
Recreation,  payable from the  Habitat Conservation Fund, to be
available for expenditure during the  1997-98, 1998-99 and
1999-2000 fiscal years   . . . 2,000,000

Schedule:

(1) 80.25-Local Grants-Habitat Conservation Fund Program  . . .
2,000,000

Provisions:

1. The funds appropriated by this item shall be available only for
projects  submitted to the  Department of Parks and Recreation for
consideration during the  evaluation process for the  Habitat
Conservation Fund Program.

2. The funds appropriated by this item shall be used for purposes
consistent  with the requirements  of the Habitat Conservation Fund,
and the Unallocated Account, Cigarette  and Tobacco Products
Surtax Fund.

3790-101-0263--For grants to cities, counties, or special districts,
as
specified in Division 5  (commencing with Section 5001) of the
Public Resources Code,  Department of Parks and  Recreation,
payable from the Off-Highway Vehicle Trust Fund, to be  available
for expenditure  during the 1997-98, 1998-99 and 1999-2000 fiscal
years  . . . 15,613,000

Schedule:



(1) 80.12-Off-Highway Motor Vehicle Recreation Fund-Grants  . . .
15,613,000

3790-101-0858--For local assistance, Department of Parks and
Recreation,  payable from the  Recreational Trails Fund, to be
available for expenditure during the  1997-98, 1998-99 and
1999-2000 fiscal years  . . . 3,575,000

Schedule:

(1) 80.12-Off-Highway Motor Vehicle Recreation-Grants  . . .
1,072,500

(2) 80.25-Local Grants  . . . 2,502,500

Provisions:

1. The funds appropriated in Schedules (1) and (2) shall be available

for  expenditure for local  assistance or capital outlay.

3790-101-0890--For local assistance, Department of Parks and
Recreation,  payable from the  Federal Trust Fund, to be available
for
expenditure during the 1997-98,  1998-99 and 1999-2000  fiscal
years  . . . 2,375,000

Schedule:

(1) 80.25-Local Grants  . . . 2,000,000

(2) 80.30-Historic Preservation Grants  . . . 375,000

3790-301-0001--For capital outlay, Department of Parks and
Recreation   .  . . 6,804,000

Schedule:

(1) 90.H6.605-Cuyamaca Rancho SP: Rehabilitation of Paso Picacho
Campground--Preliminary  plans and working drawings  . . . 177,000


(2) 90.I6.605-San Elijo SB: Public Use Facilities--Working drawings
and  construction  . . .  3,517,000

(3) 90.RS.205-Statewide: State Park System--Minor Projects  . . .
2,178,000

(4) 90.RS.220-Statewide: Disasters Program--Minor Projects  . . .
687,000

  (5) 90.RS.810-Capital Outlay Projects  . . . 10,000,000

(6) Reimbursements--Capital Outlay Projects  . . . -10,000,000

(7) 90.3F.605-Benbow Lake SRA: Benbow Dam
Repair--Preliminary plans  and working  drawings  . . . 86,000

(8) 90.8J.600-Columbia SHP: Knapp Block Rehabilitation--Study
and  preliminary plans  . . .  159,000

Provisions:

1. Notwithstanding any other provision of law, the Department of
Parks  and Recreation may  borrow funds from the State Parks and
Recreation Fund in order to  provide advance cash for fully
authorized reimbursement-funded projects. The loan shall be
requested in  writing by the  Department of Parks and Recreation to
the State Controller's Office as  needed for cash flow and  will not
be
subject to any interest.

3790-301-0140--For capital outlay, Department of Parks and
Recreation,  payable from the  California Environmental License
Plate Fund  . . . 685,000

Schedule:

(1) 90.HA.500-Anza Borrego Desert SP: Resource Inventory, Phase
VI--Study  . . . 335,000

(2) 90.90.110-Bodie SHP: Stabilize & Repair Building, Phase
III--Construction  . . . 350,000

3790-301-0235--For capital outlay, Department of Parks and
Recreation,  payable from the Public  Resources Account, Cigarette
and Tobacco Products Surtax Fund  . . .  400,000

Schedule:

(1) 90.CO.400-Wilder Ranch SP: Gray Whale Ranch--Acquisition   .
. .  400,000

3790-301-0262--For capital outlay, Department of Parks and
Recreation,  payable from the  Habitat Conservation Fund  . . .
2,500,000

Schedule:

(1) 90.RS.406-Habitat Conservation: Proposed
Additions--Acquisition   . .  . 1,000,000

(2) 90.RS.407-Santa Lucia Mountains: Proposed
Additions--Acquisition  .  . . 1,500,000

Provisions:

1. The funds appropriated in Schedule (1) of this item shall be
expended for  state park  acquisitions located in the
Klamath-Siskiyou, Sierra Foothills and Low  Coastal Mountain,
Southwest Mountain and Valley, and Sierra Nevada Landscape
Provinces.

2. The funds appropriated by this item shall be used for purposes
consistent  with the Unallocated  Account, Cigarette and Tobacco
Products Surtax Fund and the Habitat  Conservation Fund.

3790-301-0263--For capital outlay, Department of Parks and
Recreation,  payable from the  Off-Highway Vehicle Trust Fund  . . .

6,772,000

Schedule:

(1) 90.C7.400-Ocotillo Wells SVRA: Eastern
Acquisition--Acquisition  . . .  3,400,000

(2) 90.RS.206-Statewide:--OHV Minors-Minor Projects  . . .
572,000

(3) 90.RS.403-Statewide: Opportunity Purchase--Acquisition  . . .
200,000

  (4) 90.RS.404-Statewide: Prebudget Appraisals--Planning  . . .
50,000

(5) 90.RS.605-Statewide: Budget Package/Schematic Planning--
Planning   . . . 50,000

(6) 90.7K.400-Carnegie SVRA: Tesla Acquisition--Acquisition  . . .
2,500,000

Provisions:

1. Funds appropriated in Schedule (5) shall be used to develop design

information or cost  information for new projects for which funds
have not been appropriated  previously, but which  are anticipated to

be included in the Governor's Budget for the 1998-99 or  1999-2000
fiscal year.

2. Funds appropriated in Schedule (4) shall be used to develop cost
information for new  acquisition projects for which funds have not
been appropriated previously,  but which are  anticipated to be
included in the Governor's Budget for the 1998-99 or  1999-2000
fiscal year. In  addition, these funds also may be used for other
acquisition-related  administrative costs.

3790-301-0545--For capital outlay, Department of Parks and
Recreation,  payable from the River  Parkway Subaccount, 1996
Safe, Clean, Reliable Water Supply Fund   . . .  4,000,000

Schedule:

(1) 90.RS.811-River Parkway Program   . . . 4,000,000

3790-301-0786--For capital outlay, Department of Parks and
Recreation,  payable from the  California Wildlife, Coastal, and Park

Land Fund of 1988  . . . 729,000

Schedule:

(1) 90.RS.260-Statewide: Recreational Trails--Minor Projects  . . .
250,000

  (2) 90.RS.230-Statewide: Stewardship Program--Minor Projects  . .
.  479,000

Provisions:

1. Funds appropriated in Schedule (2) of this item shall be available

for  expenditure until June 30,  2000.

3790-301-0890--For capital outlay, Department of Parks and
Recreation,  payable from the  Federal Trust Fund  . . . 600,000


Schedule:

(1) 90.RS.801-Federal Trust Matching Program: Acquisition and
construction  . . . 600,000

3790-401--For the 1997-98 fiscal year, the balance as of July 1,
1997,  deposits in, and accruals to  the Conservation and
Enforcement Services Account in the Off-Highway  Vehicle Trust
Fund shall  be transferred by the State Controller to the Off-Highway

Vehicle Trust  Fund. All funds  transferred pursuant to this item
shall
be available for expenditure by the  Department of Parks and
Recreation for purposes of conservation and enforcement activities
pursuant to Sections 23 and  25 of Chapter 1027, Statutes of 1987
which are authorized for expenditure  within Items  3790-001-0263,
3790-101-0263, and 3790-301-0263. The State Controller  shall
make the  transfers quarterly or at such intervals as determined
necessary to meet the  cash-flow needs of the  Off-Highway Vehicle
Trust Fund.

3790-404--Notwithstanding any other provision of law, Provisions 5,
7, 9  and 10 in Item  3790-001-0392 shall also apply to the
Department of Parks and Recreation  local assistance  appropriations
and programs.

3790-405--Notwithstanding any other provision of law, Provisions 3,
5, 7,  9 and 11 in Item  3790-001-0392 shall also apply to the
Department of Parks and Recreation  capital outlay  appropriatons
and programs.

3790-490--Reappropriation, Department of Parks and Recreation.
The  balance of the  appropriations provided in the following
citations are reappropriated for  the purposes and subject  to the
limitations, unless otherwise specified, provided for in the
appropriations:

0001--General Fund

(1) Item 3790-301-164(1), Budget Act of 1993, as transferred to the
General Fund (Item  3790-801-001) per Section 16346 of the
Government Code, and  reappropriated by Item  3790-490, Budget
Acts of 1994, 1995 and 1996. 90.RS.130 Statewide:  Dispatch
Centers  Program--Preliminary plans, working drawings,
construction, and  equipment, provided that the  funds may be used
for NORCOM Dispatch Center as reflected in the  revised estimate
of February  28, 1995.

(2) Item 3790-301-0001(4), Budget Act of 1996. 90.RS.205
Statewide:  State Park  System--Minor Projects.

(3) Item 3790-301-0001(5), Budget Act of 1996. 90.RS.220
Statewide:  Disasters  Program--Minor Projects.

0140--Environmental License Plate Fund

(1) Item 3790-301-0140(1), Budget Act of 1996. 90.HA.500 Anza
Borrego Desert SP: Resource  Inventory, Phase V--Study.

0235--Public Resources Account, Cigarette and Tobacco Products
Surtax  Fund

(1) Item 3790-301-235(1), Budget Act of 1992, as reappropriated by
Item  3790-490, Budget  Acts of 1993, 1994, 1995, and 1996.
90.41.207 Navarro River Project:  Improvements--Minor  Project,
provided funds may be used to acquire essential improvements or
inholdings to the  Navarro property in order that the property may
best and most  appropriately be operated for state  park purposes.


(2) Item 3790-301-235(2), Budget Act of 1992, as reappropriated by
Item  3790-490, Budget  Acts of 1993, 1994, 1995, and 1996.
Reimbursements for Navarro River  Project, provided funds  may be
used to acquire essential improvements or inholdings to the  Navarro
property in order that  the property may best and most appropriately
be operated for state park  purposes.

0263--Off-Highway Vehicle Trust Fund

(1) Item 3790-301-263(1), Budget Act of 1991, as reappropriated by
Item  3790-490, Budget Act  of 1994. 90.EH.110 Hungry Valley
SVRA: Initial  Development--Construction.

(2) Item 3790-301-263(4), Budget Act of 1993, as reappropriated by
Item  3790-490, Budget Act  of 1996. 90.RS.403 Statewide OHV:
Opportunity Purchases--Acquisition

(3) Item 3790-301-263(3), Budget Act of 1994. 90.RS.403
Statewide:  Opportunity Purchases  --Acquisition

(4) Item 3790-301-263(8), Budget Act of 1995, as reappropriated by
Item  3790-490, Budget Act  of 1996. 90.RS.606 San Diego, OHV
Area: Site Planning

0392--State Parks and Recreation Fund

(1) Item 3790-301-392(2), Budget Act of 1987, as reappropriated by
Item  3790-490, Budget  Acts of 1990, 1993 and 1996. 90.AC.400
Old Sacramento SHP:  Engineering Building  Site--Acquisition,
provided funds may only be expended for land interests  associated
with an  economically viable proposal for the Museum of Railroad
Technology as  approved by the  Department of Finance.

(2) Chapter 1371, Statutes of 1990, as reappropriated by Item
3790-490,  Budget Acts of 1993  and 1996. 90.E9.400 La Purisima
Mission SHP

(3) Item 3790-301-392(1), Budget Act of 1995, as reappropriated by
Item  3790-490, Budget Act  of 1996. 90.GI.110 Crystal Cove SP:
Historic District  Rehabilitation--Study, preliminary plans,  working

drawings

(4) Item 3790-301-392(2), Budget Act of 1995, as reappropriated by
Item  3790-490, Budget Act  of 1996. 90.RS.810 Capital Outlay
Projects

(5) Item 3790-301-392(3), Budget Act of 1995, as reappropriated by
Item  3790-490, Budget Act  of 1996. Reimbursements--Capital
Outlay Projects

0516--Harbors and Watercraft Revolving Fund

(1) Item 3790-301-516(1), Budget Act of 1994, as reappropriated by
Item  3790-490, Budget  Acts of 1995 and 1996. 90.RS.130
Statewide: Dispatch Centers  Program--Preliminary plans,  working
drawings, construction, and equipment, provided that the funds  may
be used for the  NORCOM Dispatch Center and the SURCOM
Dispatch Center as  reflected in the revised  estimate of February
28,
1995.

0722--Parklands Fund of 1984

(1) Item 3790-301-722(6), Budget Act of 1987, as reappropriated by
Item  3790-490, Budget  Acts of 1990, 1993 and 1996. 90.BA.400
Big Basin Redwoods SP, Butano  SP, Castle Rock SP,
Sempervirens--Acquisition; provided that the funds may be used on a
matching basis with  nonstate funding sources for the acquisition of
parcels at Big Basin  Redwoods SP, Butano SP  and/or Castle Rock
SP.

0786--California Wildlife, Coastal and Park Land Conservation Fund
of  1988

(1)Item 3790-301-786(1), Budget Act of 1994, as reappropriated by
Item  3790-490, Budget Acts  of 1995 and 1996. 90.EU.110 Bolsa
Chica SB: Camping  Facilities--Construction

(2)Item 3790-301-786(5), Budget Act of 1994, as  reappropriated by
Item  3790-490, Budget  Acts of 1995 and 1996. 90.C1.110 Santa
Cruz Mission SHP: Public Use  Facilities--Construction

(3) Item 3790-301-786(7), Budget Act of 1994, as reappropriated by
Item  3790-490, Budget  Acts of 1995 and 1996. 90.RS.615
Statewide: CEQA Filing Fees--Planning

  (4) Item 3790-301-786(1), Budget Act of 1995, as reappropriated
by Item  3790-490, Budget Act  of 1996. 90.RS.260 Statewide:
Recreational Trails--Minor Projects

(5) Item 3790-301-786(2), Budget Act of 1995, as reappropriated by
Item  3790-490, Budget Act  of 1996. 90.RS.240 Statewide:
Sno-Park Program--Minor Projects

(6) Item 3790-301-786(4), Budget Act of 1995, as reappropriated by
Item  3790-490, Budget Act  of 1996. 90.RS.405 Statewide:
Relocation

(7) Item 3790-301-0786(2), Budget Act of 1996. 90.RS.260
Statewide:  Recreational  Trails-Minor Projects

(8) Item 3790-301-0786(5), Budget Act of 1996. 90.RS.608
Statewide:  Budget  Packages/Schematic Planning and Topographic
Surveys

0890--Federal Trust Fund



(1) Item 3790-301-890(1), Budget Act of 1994. 90.RS.408 Fedral
Trust  Matching Program:  Proposed Additions--Acquisition.

3810-001-0140--For support of the Santa Monica Mountains
Conservancy,  for payment to Item  3810-011-0941, payable from
the California Environmental License Plate  Fund  . . . 96,000

3810-011-0941--For support of Santa Monica Mountains
Conservancy,  payable from the Santa  Monica Mountains
Conservancy Fund  . . . 446,000

Schedule:

(a) 10-Santa Monica Mountains Conservancy  . . . 582,000

(b) Reimbursements  . . . -40,000

(d) Amount payable from the California Environmental License Plate
Fund  (Item 3810-001-0140)   . . . -96,000

Provisions:

1. Notwithstanding Article 4 (commencing with Section 11040) of
Chapter  1 of Part 1 of Division  3 of Title 2 of the Government
Code, the Attorney General shall continue  to provide legal  services

to the Santa Monica Mountains Conservancy consistent with the
manner in which the  Attorney General provides legal services to
state agencies that are funded  by appropriations made  from the
General Fund.

3810-301-0545--For capital outlay, Santa Monica Mountains
Conservancy,  payable from the  River Parkway Subaccount, 1996
Safe, Clean, Reliable Water Supply Fund   . . . 5,000,000

Schedule:

(1) 50.10.001-River Parkway Program, Los Angeles River and
Tributaries   . . . 5,000,000

Provisions:

1. Notwithstanding any other provision of law, the funds
appropriated by  this item are available  for encumbrance for either
capital outlay or local assistance through the  1999-2000 fiscal
year.


3820-001-0001--For support of San Francisco Bay Conservation and
Development Commission  .  . . 1,632,000

Schedule:

(a) 10-Bay Conservation and Development  . . . 2,547,000

(b) For transfer to the Long Term Management Strategy Completion
Fund  (0273)  . . . 26,000

(c) Reimbursements  . . . -574,000

(d) Amount payable from the Long Term Management Strategy
Completion Fund (Item  3820-001-0273)  . . . -176,000

(e) Amount payable from the Federal Trust Fund (Item
3820-001-0890)  . .  . -106,000

(f) Amount payable from the Bay Fill Clean-up and Abatement Fund
(Item  3820-001-0914)  . . .  -85,000

3820-001-0273--For support of San Francisco Bay Conservation and
Development Commission,  for payment to Item 3820-001-0001,
payable from the Long Term  Management Strategy  Completion
Fund  . . . 176,000

3820-001-0890--For support of San Francisco Bay Conservation and
Development Commission,  for payment to Item 3820-001-0001,
payable from the Federal Trust Fund   . . . 106,000

3820-001-0914--For support of San Francisco Bay Conservation and
Development Commission,  for payment to Item 3820-001-0001,
payable from the Bay Fill Clean-up  and Abatement Fund  . .  .
85,000

3830-001-0140--For support of the San Joaquin River Conservancy,
payable from the California  Environmental License Plate Fund  . . .

164,000

Schedule:

(a) 10-San Joaquin River Conservancy  . . . 174,000

(b) Reimbursements  . . . -10,000

3830-301-0104--For capital outlay, San Joaquin River Conservancy,
payable from the San  Joaquin River Conservancy Fund  . . . 0

Schedule:

(1) 20--Capital Outlay Acquisition and Enhancement Projects  . . .
5,000,000

(2) Reimbursements  . . . -5,000,000

Provisions:

1. Acquisitions and enhancements pursuant to this item shall not be
undertaken if they would  require increased state funds for
management purposes.

2. Notwithstanding any other provision of law, the funds
appropriated by  this item are available  for encumbrance for either
capital outlay or local assistance through the  1999-2000 fiscal
year.


3. Notwithstanding any other provision of law, upon approval and
order of  the Director of  Finance, loans may be made to the San
Joaquin River Conservancy Fund  from the California  Environmental
License Plate Fund to meet cash-flow needs due to delays in
collecting  reimbursements. Any loan authorized by the Department
of Finance  pursuant to this provision  shall only be made if the
Conservancy has a valid contract or certification  which demonstrates

that  sufficient funds will be available to repay the loan. All money
so
transferred  shall be repaid to the  special fund as soon as
possible,
but not later than the end of the fiscal  year.

3840-001-0140--For support of the Delta Protection Commission,
payable  from the California  Environmental License Plate Fund  . . .

80,000

3840-001-0176--For support of the Delta Protection Commission,
payable  from the Delta Flood  Protection Fund  . . . 104,000

3840-001-0516--For support of the Delta Protection Commission,
payable  from the Harbors and  Watercraft Revolving Fund  . . .
103,000

3850-001-0140--For support of the Coachella Valley Mountains
Conservancy, payable from the  California Environmental License
Plate Fund  . . . 99,000

Schedule:

(a) 10-Coachella Valley Mountains Conservancy  . . . 229,000

(b) Reimbursements  . . . -100,000

(c) Amount payable from the Coachella Valley Mountains
Conservancy  Fund (Item  3850-001-0296)  . . . -30,000

3850-001-0296--For support of the Coachella Valley Mountains
Conservancy, for payment to  Item 3850-001-0140, payable from the
Coachella Valley Mountains  Conservancy Fund  . . .  30,000

3850-301-0296--For capital outlay, Coachella Valley Mountains
Conservancy, payable from the  Coachella Valley Mountains
Conservancy Fund  . . . 40,000

Schedule:

(a) 20-Coachella Valley Mountains, Acquisition and Enhancement
Projects  and Costs  . . .  540,000

(b) Reimbursements  . . . -500,000

Provisions:

1. Acquisitions and enhancements pursuant to this item shall not be
undertaken if they would  require increased state funds for
management purposes.

2. Notwithstanding any other provision of law, the funds
appropriated by  this item are available  for encumbrance for either
capital outlay or local assistance through the  1999-2000 fiscal
year.



3. Notwithstanding any other provision of law, upon approval and
order of  the Director of  Finance, loans may be made to the
Coachella Valley Mountains  Conservancy Fund from the  California
Environmental License Plate Fund to meet cash-flow needs due  to
delays in collecting  reimbursements. Any loan authorized by the
Department of Finance  pursuant to this provision  shall only be made

if the Conservancy has a valid contract or certification  which
demonstrates that  sufficient funds will be available to repay the
loan.
All money so transferred  shall be repaid to the  special fund as
soon
as possible, but not later than the end of the fiscal  year.

3860-001-0001--For support of Department of Water Resources  . . .
17,136,000

Schedule:

(a) 10-Continuing Formulation of the California Water Plan  . . .
17,187,000

(b) 20-Implementation of the State Water Resources Development
System   . . . 1,550,000

(c) 30-Public Safety and Prevention of Damage  . . . 22,940,000

(d) 40-Services  . . . 4,861,000

(e) 50.01-Management and Administration  . . . 48,686,000

(f) 50.02-Distributed Management and Administration  . . .
-48,686,000

(g) Reimbursements  . . . -9,749,000

(h) Amount payable from the California Environmental License Plate
Fund  (Item 3860-001-0140)   . . . -201,000

(i) Amount payable from the California Water Fund (Item
3860-001-0144)   . . . -10,444,000

(j) Amount payable from the Delta Flood Protection Fund (Item
3860-001-0176)  . . . -1,714,000

(k) Amount payable from the Energy Resources Program Account
(Item  3860-001-0465)  . . .  -1,661,000

(l) Amount payable from the 1984 State Clean Water Bond Fund
(Item  3860-001-0740)  . . .  -41,000

(m) Amount payable from the 1986 Water Conservation and Water
Quality  Bond Fund (Item  3860-001-0744)  . . . -394,000

(n) Amount payable from the 1988 Water Conservation Fund (Item
3860-001-0790)  . . .  -365,000

(o) Amount payable from the Federal Trust Fund (Item
3860-001-0890)  . .  . -4,483,000

(p) Amount payable from the Renewable Resources Investment Fund
(Item  3860-001-0940)  . . .  -350,000

Provisions:

1. The amounts appropriated in Items 3860-001-0001 to
3860-001-0940,  inclusive, shall be  transferred to the Water
Resources Revolving Fund (691) for direct  expenditure in such
amounts  as the Department of Finance may authorize, including
cooperative work  with other agencies.

2. Of the funds appropriated in Schedule (g), an amount not less than

$850,000 shall be expended  for purposes consistent with the
California Environmental License Plate  Fund and Habitat
Conservation Fund.

3860-001-0140--For support of Department of Water Resources, for
payment to Item  3860-001-0001, payable from the California
Environmental License Plate  Fund  . . . 201,000

3860-001-0144--For support of Department of Water Resources, for
payment to Item  3860-001-0001, payable from the California Water
Fund  . . . 10,444,000

3860-001-0176--For support of Department of Water Resources, for
payment to Item  3860-001-0001, payable from the Delta Flood
Protection Fund  . . .  1,714,000

3860-001-0465--For support of Department of Water Resources, for
payment to Item  3860-001-0001, payable from the Energy
Resources Program  Account   . .  . 1,661,000

3860-001-0740--For support of Department of Water Resources, for
payment to Item  3860-001-0001, payable from the 1984 State Clean
Water Bond Fund  . . .  41,000

3860-001-0744--For support of the Department of Water Resources,
for  payment to Item  3860-001-0001, payable from the 1986 Water
Conservation and Water  Quality Bond Fund  . . .  394,000

3860-001-0790--For support of the Department of Water Resources,
for  payment to Item  3860-001-0001, payable from the 1988 Water
Conservation Bond Fund  . .  . 365,000

3860-001-0890--For support of Department of Water Resources, for
payment to Item  3860-001-0001, payable from the Federal Trust
Fund  . . . 4,483,000

3860-001-0940--For support of Department of Water Resources, for
payment to Item  3860-001-0001, payable from the Renewable
Resources Investment  Fund   . . . 350,000

3860-005-0144--For support of Department of Water Resources,
payable  from the California  Water Fund, for transfer to the Delta
Flood Protection Fund  . . .  (13,200,000)

3860-011-0144--For support of Department of Water Resources,
payable  from the California  Water Fund, for transfer to the
Environmental Water Fund  . . .  (3,600,000)

Provisions:

1. Notwithstanding subdivision (b) of Section 12929.12 of the Water
Code,  funds transferred  by  this item shall be made available for
purposes consistent with the  Environmental Water Program.

3860-101-0176--For local assistance, Department of Water
Resources,  payable from the Delta  Flood Protection Fund  . . .
13,649,000

Schedule:

(a) 30.20-Flood Control Subventions  . . . 14,449,000

(b) Reimbursements  . . . -800,000

Provisions:

1. The amount appropriated in Schedule (b) shall be expended for
purposes  consistent with the  Delta Flood Protection Fund and the
Habitat Conservation Fund.

3860-101-0244--For local assistance, Department of Water
Resources,  Program 10.20, New  Sources of Water, payable from
the Environmental Water Fund  . . .  9,000,000

Schedule:

(a) City of Los Angeles--Reclaimed Waste Water Distribution
Project  . . .  9,000,000

Provisions:

1. Consistent with subdivision (b) of Section 12929.12 of the Water
Code,  the Department of  Water Resources may allocate the funds
appropriated by this item to the  City of Los Angeles for  the
Reclaimed Water Distribution Project for replacement of Mono Lake
water as scheduled in  this item.

3860-101-0516--For local assistance, Department of Water
Resources,  payable from the Harbors  and Watercraft Fund  . . .
3,000,000

3860-101-0545--For local assistance, Department of Water
Resources,  payable from the River  Parkway Subaccount, Safe,
Clean, Reliable Water Supply Fund  . . .  700,000

3860-101-0740--For local assistance, Department of Water
Resources,  Program  10.29--Conservation Loans, payable from the
1984 State Clean Water  Bond Fund  . . . 20,000

3860-101-0744--For local assistance, Department of Water
Resources,  Program  10.29--Conservation Loans, payable from the
1986 Water Conservation  and Water Quality Bond  Fund  . . .
10,000,000

3860-101-0790--For local assistance, Department of Water
Resources,  Program  10.29--Conservation Loans, payable from the
Water Conservation Bond  Fund of 1988  . . .  5,000,000

3860-111-0193--For transfer by the Controller from the Waste
Discharge  Permit Fund to the  Environmental Water Fund  . . .
(3,000,000)

Provisions:

1. Notwithstanding subdivision (b) of Section 12929.12 of the Water
Code,  funds transferred  by  this item shall be made available for
purposes consistent with the  Environmental Water Program.

3860-111-0679--For transfer by the Controller from the State Water
Pollution Cleanup and  Abatement Account to the Environmental
Water Fund  . . . (1,500,000)

Provisions:

1. Notwithstanding subdivision (b) of Section 12929.12 of the Water
Code,  funds transferred by  this item shall be made available for
purposes consistent with the  Environmental Water Program.

3860-301-0001--For capital outlay, Department of Water Resources
. . .  8,750,000

Schedule:

(1) 30.95.010-Sacramento Riverbank Protection Project  . . .
2,000,000

(2) 30.95.115-American River Flood Control Project Phase 1:
Common  Elements  . . . 3,200,000

(3) 30.95.150-West Sacramento Levee Reconstruction  . . . 500,000


(4) 30.95.215-Lower Sacramento Area Levee Reconstruction
Project  . . .  3,000,000

(5) 30.95.220-Upper Sacramento Area Levee Reconstruction Project
. . .  3,000,000

(6) Reimbursements-West Sacramento Levee Reconstruction  . . .
-150,000

  (7) Reimbursements-American River Flood Control Project Phase
1:  Common Elements  . . .  -1,000,000

(8) Reimbursements-Lower Sacramento Area Levee Reconstruction
Project  . . . -900,000

(9) Reimbursements-Upper Sacramento Area Levee Reconstruction
Project  . . . -900,000

Provisions:



1. The amounts appropriated in this item involve acquisition of land,

easements, and  rights-of-way, including, but not limited to, borrow
pits, spoil areas, and  easements for levees,  clearing, flood
control
works, and flowage, and for appraisals, surveys, and  engineering
studies  necessary for the completion or operation of the projects in

the Sacramento  and San Joaquin  watersheds as authorized by
Section 8617.1 and Chapters 1 (commencing  with Section 12570), 2
(commencing with Section 12639), 3 (commencing with Section
12800),  3.5 (commencing with  Section 12840), and 4 (commencing
with Section 12850) of Part 6 of  Division 6 of the Water  Code.


2. The amounts appropriated in this item are also for advances to the

federal government or  payments to the federal government or others
for incidental construction or  reconstruction items  that are an
obligation of the state in connection with the completion or
operation of the projects  and for materials and necessary
construction, reconstruction, relocation, or  alterations to
highways,
railroads, bridges, powerlines, communication lines, pipelines,
irrigation works, and  other structures and facilities and for
appraisals, surveys, and engineering  studies incidental  thereto.


3. The funds appropriated in this item include funding for
preliminary
plans,  working drawings,  construction supervision, contract
administration, and other work activities  to be performed by
Department of Water Resources personnel in completion of the
projects.

4. Notwithstanding Section 26.00 of this act, funds may be
transferred,  with the approval of the  Department of Finance,
between projects specified in this item and other  Department of
Water  Resources major capital outlay projects with an active
appropriation. The  Director of Finance  shall notify, in writing,
the
chairperson of the committee in each house that  considers
appropriations and the Chairperson of the Joint Legislative Budget
Committee, 30 days or such  lesser time as the Chairperson of the
Joint Legislative Budget Committee,  or his or her designee,  may
determine prior to any transfer.

3860-490--Reappropriation, Department of Water Resources. The
balance  of the appropriation  provided in the following citation is
reappropriated for the purposes, and  subject to the limitations
unless otherwise specified, provided for in the appropriation:

0001--General Fund

(1) Item 3860-301-001(4), Budget Act of 1994,
30.95.105--Marysville/Yuba Levee  Reconstruction.

3860-495--Reversion, Department of Water Resources. As of June
30,  1997, the unencumbered  balance of the appropriation provided
in the following citations shall revert  to the Habitat  Conservation

Fund.

0001--General Fund

(1) Item 3860-301-001(1), Budget Act of 1996, 10.95.010--San
Joaquin  Valley Drainage Relief  Program.

(2) Item 3860-301-001(7), Budget Act of 1995, 10.95.010--San
Joaquin  Valley Drainage Relief  Program.

                              CALIFORNIA ENVIRONMENTAL
PROTECTION  AGENCY



3900-001-0044--For support of State Air Resources Board, payable
from  the Motor Vehicle  Account, State Transportation Fund  . . .
66,818,000

Schedule:

(a) 15-Mobile Source  . . . 67,733,000

(b) 25-Stationary Source  . . . 34,256,000

(c) 30.01-Program Direction and Support  . . . 9,503,000

(d) 30.02-Distributed Program Direction and Support  . . .
-9,503,000

(e) Reimbursements  . . . -4,925,000

(f) Amount payable from the Air Pollution Control Fund (Item
3900-001-0115)  . . . -7,336,000

(g) Amount payable from the Vehicle Inspection and Repair Fund
(Item  3900-001-0421)  . . .  -8,946,000

(h) Amount payable from the Air Toxics Inventory and Assessment
Account, General Fund (Item  3900-001-0434)  . . . -2,257,000

(i) Amount payable from the High Polluter Repair or Removal
Account,  Vehicle Inspection and  Repair Fund (Item
3900-001-0859)  . . . -1,688,000

(j) Amount payable from the Federal Trust Fund (Item
3900-001-0890)  . .  . -10,019,000

3900-001-0115--For support of State Air Resources Board, for
payment to  Item 3900-001-0044,  payable from the Air Pollution
Control Fund  . . . 7,336,000

3900-001-0421--For support of State Air Resources Board, for
payment to  Item 3900-001-0044,  payable from the Vehicle
Inspection and Repair Fund  . . . 8,946,000

3900-001-0434--For support of State Air Resources Board, for
payment to  Item 3900-001-0044,  payable from the Air Toxics
Inventory and Assessment Account, General  Fund  . . . 2,257,000


3900-001-0859--For support of State Air Resources Board, for
payment to  Item 3900-001-0044,  payable from the High Polluter
Repair or Removal Account, Vehicle  Inspection and Repair Fund   .
. . 1,688,000

3900-001-0890--For support of State Air Resources Board, for
payment to  Item 3900-001-0044,  payable from the Federal Trust
Fund  . . . 10,019,000

3900-101-0044--For local assistance, State Air Resources Board, for
assistance to counties in the  operation of local air pollution
control
districts, payable from the Motor  Vehicle Account, State
Transportation Fund  . . . 7,511,000

Schedule:

(a) 35-Subvention  . . . 7,511,000

3910-001-0100--For support of California Integrated Waste
Management  Board, for payment to  Item 3910-001-0387, payable
from the California Used Oil Recycling Fund   . . . 3,456,000

Provisions:

1. Notwithstanding subdivision (c) of Section 48653 of the Public
Resources Code, the aggregate  of appropriations from the California
Used Oil Recycling Fund may exceed  $3,000,000 during the
1997-98 fiscal year.

3910-001-0226--For support of California Integrated Waste
Management  Board, for payment to  Item 3910-001-0387, payable
from the California Tire Recycling  Management Fund  . . .
8,447,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654 of the Statutes of 1995.

3910-001-0281--For support of California Integrated Waste
Management  Board, for payment to  Item 3910-001-0387, payable
from the Recycling Market Development  Revolving Loan Account
. . . 728,000

3910-001-0386--For support of California Integrated Waste
Management  Board, for payment to  Item 3910-001-0387, payable
from the Solid Waste Disposal Site Cleanup  Trust Fund  . . .
300,000

3910-001-0387--For support of California Integrated Waste
Management  Board, payable from  the Integrated Waste
Management Account, Integrated Waste  Management Fund  . . .
28,374,000

  Schedule:

(a) 10-Planning and Enforcement  . . . 17,290,000

(b) 15-Disposal Site Cleanup and Maintenance  . . . 300,000

(c) 20-Waste Reduction and Resource Recovery  . . . 31,831,000

(d) 25-Tire Recycling  . . . 8,447,000

(e) 30-Administration  . . . 8,133,000

(f) Distributed Administration  . . . -8,133,000

(g) Reimbursements  . . . -480,000

(h) Amount payable from California Used Oil Recycling Fund (Item
3910-001-0100)  . . .  -3,456,000

(i) Amount payable from California Used Oil Recycling Fund
(paragraph  (4) of subdivision (a) of  Section 48653 of the Public
Resources Code)  . . . -3,000,000

(j) Amount payable from California Used Oil Recycling Fund
(paragraph  (1) of subdivision (a) of  Section 48653 of the Public
Resources Code)  . . . -4,000,000

(k) Amount payable from California Tire Recycling Management
Fund  (Item 3910-001-0226)  . .  . -8,447,000

(l) Amount payable from Recycling Market Development Revolving
Loan  Account (Item  3910-001-0281)  . . . -728,000

(m) Amount payable from Recycling Market Development Revolving
Loan  Account (Section  42010 of the Public Resources Code)  . . .
-8,574,000

(n) Amount payable from Solid Waste Disposal Site Cleanup Trust
Fund  (Item 3910-001-0386)  .  . . -300,000

(o) Amount payable from Federal Trust Fund (Item 3910-0010890)
. . .  -509,000

Provisions:

1. Notwithstanding Section 42010 of the Public Resources Code, the
California Integrated Waste  Management Board may offset the costs
of administering the revolving  loan program for  Recycling Market
Development Zones with funds appropriated by this  item.

2. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654 of the Statutes of 1995.

3. Notwithstanding any other provision of law, any reductions
reflected in  the appropriation in  this item due to insufficient
revenues generated by the fee established  pursuant to Section 48000
of the Public Resources Code may vary from the distribution set
forth in  Section 48004(c) of the  Public Resources Code.

3910-001-0890--For support of California Integrated Waste
Management  Board, for payment to  Item 3910-001-0387, payable
from the Federal Trust Fund  . . . 509,000

3910-003-0387--For transfer by the State Controller to the Recycling
Market Development  Revolving Loan Account as a loan pursuant to
subdivision (e) of Section  42010 of the Public  Resources Code,
payable from the Integrated Waste Management Account   . . .
(5,000,000)

3910-004-0387--For transfer by the State Controller to the Solid
Waste  Disposal Site Cleanup  Trust Fund pursuant to paragraph (1)
of subdivision (b) of Section 48027  of the Public Resources  Code,
payable from the Integrated Waste Management Account  . . .
(2,200,000)

3910-101-0226--For local assistance, California Integrated Waste
Management Board, payable  from the California Tire Recycling
Management Fund  . . . 500,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

3910-101-0387--For local assistance, California Integrated Waste
Management Board, payable  from the Integrated Waste
Management Account, Integrated Waste  Management Fund  . . .
3,000,000

3930-001-0001--For support of Department of Pesticide Regulation
. . .  8,433,000

Schedule:

(a) 12-Registration and Health Evaluation  . . . 12,336,000

(b) 17-Enforcement, Environmental Monitoring and Data
Management  . . .  23,424,000

(c) 20.10-Executive and Administrative Services  . . . 4,588,000


(d) 20.20-Distributed Executive and Administrative Services  . . .
-4,588,000

(e) Reimbursements  . . . -564,000

(f) Amount payable from the Department of Pesticide Regulation
Fund  (Item 3930-001-0106)  . .  . -21,700,000

(g) Amount payable from the California Environmental License Plate
Fund  (Item 3930-001-0140)   . . . -564,000

(h) Amount payable from the Food Safety Account (Item
3930-001-0224)   . . . -2,007,000

(i) Amount payable from the Federal Trust Fund (Item
3930-001-0890)  . .  . -2,492,000

3930-001-0106--For support of Department of Pesticide Regulation,
for  payment to Item  3930-001-0001, payable from the Department
of Pesticide Regulation  Fund  . . . 21,700,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from  the assessment of fines  and penalties imposed as specified in
Chapter 654 of the Statutes of 1995.

3930-001-0140--For support of Department of Pesticide Regulation,
for  payment to Item  3930-001-0001, payable from the California
Environmental License Plate  Fund  . . . 564,000

3930-001-0224--For support of Department of Pesticide Regulation,
for  payment to Item  3930-001-0001, payable from the Food Safety
Account  . . . 2,007,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from  the assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

3930-001-0890--For support of Department of Pesticide Regulation,
for  payment to Item  3930-001-0001, payable from the Federal
Trust Fund  . . . 2,492,000

3930-101-0001--For local assistance, Department of Pesticide
Regulation   . . . 2,449,000

Schedule:

(a) 17-Enforcement, Environmental Monitoring and Data
Management  . . .  11,349,000

(b) Amount payable from the Department of Pesticide Regulation
Fund  (Item 3930-101-0106)  . .  . -816,000

(c) Amount payable from the Department of Pesticide Regulation
Fund  (Section 12844 of the  Food and Agricultural Code)  . . .
-8,084,000

3930-101-0106--For local assistance, Department of Pesticide
Regulation,  for payment to Item  3930-101-0001, payable from the
Department of Pesticide Regulation  Fund  . . . 816,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from  the assessment of fines  and penalties imposed as specified in
Chapter 654 Statutes of 1995.

3940-001-0001--For support of State Water Resources Control
Board  . . .  36,664,000

Schedule:

(a) 10-Water Quality  . . . 338,681,000

(b) 20-Water Rights  . . . 8,767,000

(c) 30.01-Administration  . . . 13,338,000

(d) 30.02-Distributed Admin-

istration

-13,338,000

(e) Reimbursements  . . . -7,375,000

(f) Amount payable from the Leaking Underground Storage Tank
Cost  Recovery Fund (Item  3940-001-0025)  . . . -8,100,000

(g) Amount payable from the Unified Program Account (Item
3940-001-0028)  . . . -462,000

(h) Amount payable from the Waste Discharge Permit Fund (Item
3940-001-0193)  . . .  -12,129,000

(i) Amount payable from the Environmental Protection Trust Fund
(Item  3940-001-0225)  . . .  -2,112,000

(j) Amount payable from the Public Resources Account, Cigarette
and  Tobacco Products Surtax  Fund (Item 3940-001-0235)  . . .
-726,000

(k) Amount payable from the Bay Protection and Toxic Cleanup
Fund  (Item 3940-001-0282)  . . .  -2,458,000

(l) Amount payable from the Integrated Waste Management
Account,  Integrated Waste  Management Fund (Item
3940-001-0387)  . . . -4,626,000

(m) Amount payable from the Underground Storage Tank Tester
Account  (Item 3940-001-0436)   . . . -51,000

(n) Amount payable from the Underground Storage Tank Cleanup
Fund  (Item 3940-001-0439)  .  . . -243,991,000

(o) Amount payable from the Underground Storage Tank Fund (Item
3940-001-0475)  . . .  -434,000

(p) Amount payable from the 1984 State Clean Water Bond Fund
(Item  3940-001-0740)  . . .  -1,591,000

(q) Amount payable from the 1986 Water Conservation and Water
Quality  Bond Fund (Item  3940-001-0744)  . . . -311,000

(r) Amount payable from the 1988 Clean Water and Water
Reclamation  Fund (Item  3940-001-0764)  . . . -148,000

(s) Amount payable from the Federal Trust Fund (Item
3940-001-0890)  . .  . -25,315,000

(t) Amount payable from the Renewable Resources Investment Fund
(Item  3940-001-0940)  . . .  -350,000

(u) Amount payable from the Special Deposit Fund (Item
3940-001-0942)   . . . -605,000

Provisions:

1. Notwithstanding any other provision of law, upon approval and
order of  the Director of  Finance, the State Water Resources
Control Board may borrow sufficient  funds, from special  funds that
otherwise provide support for the board, for cash purposes. Any
such loans are to be  repaid with interest at the rate earned in the
Pooled Money Investment  Account.

3940-001-0025--For support of State Water Resources Control
Board, for  payment to Item  3940-001-0001, payable from the
Leaking Underground Storage Tank  Cost Recovery Fund  . . .
8,100,000

3940-001-0028--For support of State Water Resources Control
Board, for  payment to Item  3940-001-0001, payable from the
Unified Program Account  . . . 462,000

Provisions:

1. It is intended that the total funding provided by this item and
Item
3940-001-0475 be  maintained in 1997-98 for the state underground
storage tank regulatory  activities. In the event  that revenues for
the
Unified Program Account are insufficient to support  the
appropriation in this  item because of delays in shifting
programmatic
responsibilities to certified  unified program  agencies, this item
may
be reduced and a corresponding increase may be  made to Item
3940-001-0475, upon approval of the Department of Finance.

  Any funding adjustments to this item or to Item 3940-001-0475
which  would result in a total  expenditure authorization exceeding
the cumulative appropriation amount  of these two items  remain
subject to the provisions of Section 27.00.

3940-001-0193--For support of State Water Resources Control
Board, for  payment to Item  3940-001-0001, payable from the
Waste Discharge Permit Fund  . . .  12,129,000

3940-001-0225--For support of State Water Resources Control
Board, for  payment to Item  3940-001-0001, payable from the
Environmental Protection Trust Fund  . .  . 2,112,000

3940-001-0235--For support of State Water Resources Control
Board, for  payment to Item  3940-001-0001, payable from the
Public Resources Account, Cigarette and  Tobacco Products  Surtax
Fund  . . . 726,000

3940-001-0282--For support of State Water Resources Control
Board, for  payment to Item  3940-001-0001, payable from the Bay
Protection and Toxic Cleanup Fund   . . . 2,458,000

3940-001-0387--For support of State Water Resources Control
Board, for  payment to Item  3940-001-0001, payable from the
Integrated Waste Management Account,  Integrated Waste
Management Fund  . . . 4,626,000

Provisions:

1. Notwithstanding any other provision of law, any reductions
reflected in  the appropriation in  this item due to insufficient
                                                 revenues generated
by the fee established  pursuant to Section 48000
of the Public Resources Code may vary from the distribution set
forth in  Section 48004(c) of the  Public Resources Code.

3940-001-0436--For support of State Water Resources Control
Board, for  payment to Item  3940-001-0001, payable from the
Underground Storage Tank Tester  Account  . . . 51,000

3940-001-0439--For support of State Water Resources Control
Board, for  payment to Item  3940-001-0001, payable from the
Underground Storage Tank Cleanup  Fund  . . . 243,991,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654 of the Statutes of 1995.

3940-001-0475--For support of State Water Resources Control
Board, for  payment to Item  3940-001-0001, payable from the
Underground Storage Tank Fund  . . .  434,000

Provisions:

1. Pursuant to subdivision (b) of Section 25287 of the Health and
Safety  Code, the surcharge to  be included in the fee paid to a
local
agency by each person who submits an  application for a  permit to
operate an underground storage tank shall be $56 per tank,  during
the 1997-98 fiscal  year. This surcharge shall be transmitted to the
State Water Resources  Control Board and  deposited in the
Underground Storage Tank Fund.

3940-001-0740--For support of State Water Resources Control
Board, for  payment to Item  3940-001-0001, payable from the 1984
State Clean Water Bond Fund  . . .  1,591,000

3940-001-0744--For support of State Water Resources Control
Board, for  payment to Item  3940-001-0001, payable from the 1986
Water Conservation and Water  Quality Bond Fund  . . .  311,000

3940-001-0764--For support of State Water Resources Control
Board, for  payment to Item  3940-001-0001, payable from the 1988
Clean Water and Water  Reclamation Fund  . . . 148,000

3940-001-0890--For support of State Water Resources Control
Board, for  payment to Item  3940-001-0001, payable from the
Federal Trust Fund  . . . 25,315,000

3940-001-0940--For support of State Water Resources Control
Board, for  payment to Item  3940-001-0001, payable from the
Renewable Resources Investment Fund  .  . . 350,000

3940-001-0942--For support of State Water Resources Control
Board, for  payment to Item  3940-001-0001, payable from the
Special Deposit Fund  . . . 605,000

3940-011-0740--For transfer by the State Controller from the 1984
State  Clean Water Bond Fund  to the State Water Pollution Control
Revolving Fund  . . . 1,214,000

3940-101-0744--For local assistance, State Water Resources Control
Board, payable from the  1986 Water Conservation and Water
Quality Bond Fund  . . . 13,000,000

3940-495--Reversion, State Water Resources Control Board. As of
June  30, 1997,  notwithstanding any other provision of law, the
unencumbered balance of  funds provided in the  following citation
shall revert to the fund balance of the fund from which  the
appropriation was  made.

387-Integrated Waste Management Account

(1) Chapter 1218, Statutes of 1992--$405,152 for reviewing solid
waste  assessment test reports.

3960-001-0001--For support of Department of Toxic Substances
Control,  for payment to Item  3960-001-0014  . . . 17,416,000

Provisions:

1. The Director of the Department of Toxic Substances Control may
expend $11,072,000 from  this item for the following activities at
the
Stringfellow Federal Superfund  site: (1) operation and  maintenance
of pretreatment plants to treat contaminated groundwater  extracted
from the site, (2)  site maintenance and groundwater monitoring, and
(3) implementation of  work to stabilize the  site.

2. The Director of the Department of Toxic Substances Control may
expend $5,955,000 from this  item to fund: (1) The mandatory state
match for final remedial actions and  long-term operation  and
maintenance at federal National Priority List (NPL) "orphan" sites,
and  (2) the investigation,  cleanup and long-term operation and
maintenance at state-only "orphan"  sites.

3960-001-0013--For support of Department of Toxic Substances
Control,  for payment to Item  3960-001-0014, payable from the
Federal Receipts Account, Hazardous  Waste Control Account   . . .
2,060,000

Provisions:

1. Upon request by the Department of Toxic Substances Control, and
approval of the Department  of Finance, the Controller shall augment
this item in an amount not to  exceed the proceeds of  federal
hazardous waste control fees deposited in the Federal Receipts
Account in the 1997-98  fiscal year, pursuant to Article 7, Section
25174.8 of Chapter 6.5 of  Division 20 of the Health and  Safety
Code.

3960-001-0014--For support of Department of Toxic Substances
Control,  payable from the  Hazardous Waste Control Account  . . .
51,147,000

Schedule:

(a) 12-Site Mitigation  . . . 84,203,000

(b) 13-Hazardous Waste Management  . . . 36,576,000

(c) 15-Statewide Support  . . . 4,547,000

(d) 18-Science, Engineering and Technology  . . . 9,703,000

(e) 19.01-Administration  . . . 22,826,000

(f) 19.02-Distributed Administration  . . . -22,826,000

(g) Reimbursements  . . . -10,856,000

(h) Amount payable from General Fund (Item 3960-001-0001)  . . .
-17,416,000

(i) Amount payable from Federal Receipts Account, HWCA (Item
3960-001-0013)  . . .  -2,060,000

(j) Amount payable from Unified Program Account (Item
3960-001-0028)   . . . -1,228,000

(k) Amount payable from Railroad Accident Prevention and
Response  Fund (Item  3960-001-0059)  . . . -535,000

(l) Amount payable from Illegal Drug Lab Cleanup Account (Item
3960-001-0065)  . . .  -5,819,000

(m) Amount payable from California Used Oil Recycling Fund (Item
3960-001-0100)  . . .  -222,000

(n) Amount payable from Federal Trust Fund (Item 3960-001-0890)
. . .  -27,694,000

(o) Amount payable from General Fund (Item 3960-001-0001,
Budget Act  of 1996)   . . .  -18,052,000

Provisions:

1. Of the funds appropriated by this item, $477,000 shall be used for

the  purposes of emergency  response activity pursuant to Section
25354 of the Health and Safety Code,  in lieu of any  appropriation
made pursuant to that section.

2. The Director of Finance is authorized to make a loan, not to
exceed  $12,000,000, from the  General Fund to the Hazardous
Waste Control Account to meet cash  needs. The loan is subject to
the repayment provisions of Section 16351 of the Government Code
and  the interest provisions of  Section 16314 of the Government
Code.

3. Upon request by the Department of Toxic Substances Control, and
approval of the Department  of Finance, the Controller shall augment
this item in an amount not to  exceed the proceeds of  fines and
penalties deposited in the Hazardous Waste Control Account in  the
1997-98 fiscal year,  pursuant to Article 8 (commencing with Section
25180, of Chapter 6.5 of  Division 20 of the  Health and Safety
Code, exclusive of fines and penalties transferred to the  Hazardous
Substance  Account pursuant to Section 25192 of the Health and
Safety Code for  expenditure in accordance  with Section 25385.9 of
the Health and Safety Code. The expenditure of  any augmentation
pursuant to this provision shall be limited to the purpose of
cleaning
up  hazardous substance sites  that are not part of the Expedited
Site
Remediation Pilot Program.

4. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

5. The fines and penalties deposited in the Hazardous Waste Control
Account in the 1997-98  fiscal year pursuant to Article 8
(commencing with Section 25180) of  Chapter 6.5 of Division 20  of
the Health and Safety Code, exclusive of fines and penalties
transferred  to the Hazardous  Substance Account pursuant to
Section 25192 of the Health and Safety  Code for expenditure in
accordance with Section 25385.9 of the Health and Safety Code,
shall be  expended by the  Department of Toxic Substances Control
for hazardous substance release  site projects, including  National
Priority List sites, state orphan sites, and orphan share sites
selected
for the Expedited  Site Remediation Pilot Program. The department
shall assign priority to  these projects on the  basis of economic
benefit and relative threat to the public health and the
environment.


3960-001-0028--For support of Department of Toxic Substances
Control,  for payment to Item  3960-001-0014, payable from the
Unified Program Account  . . . 1,228,000

  3960-001-0059--For support of Department of Toxic Substances
Control,  for payment to Item  3960-001-0014, payable from the
Hazardous Spill Prevention Account,  Railroad Accident  Prevention
and Response Fund  . . . 535,000

3960-001-0065--For support of Department of Toxic Substances
Control,  for payment to Item  3960-001-0014, payable from the
Illegal Drug Lab Cleanup Account  . . .  5,819,000

3960-001-0100--For support of Department of Toxic Substances
Control,  for payment to Item  3960-001-0014, payable from the
California Used Oil Recycling Fund  . . .  222,000

3960-001-0456--For support of Department of Toxic Substances
Control,  payable from the  Expedited Site Remediation Trust Fund  .

. . 1,260,000

Provisions:

1. Upon request by the Department of Toxic Substances Control, and
approval of the Department  of Finance, the Controller shall augment
this item in an amount which,  when combined with the
appropriation in this item, shall not exceed the amount transferred
to
the  Expedited Site  Remediation Trust Fund pursuant to Item
3960-011-0014.

2. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654 of the Statutes of 1995.

3960-001-0890--For support of Department of Toxic Substances
Control,  for payment to Item  3960-001-0014, payable from the
Federal Trust Fund  . . . 27,694,000

3960-011-0001--For transfer by the State Controller to the Illegal
Drug  Lab Cleanup Account  . .  . 5,819,000

3960-011-0014--For transfer by the State Controller from the
Hazardous  Waste Control Account  to the Expedited Site
Remediation Trust Fund  . . . (1,260,000)

Provisions:

1. Notwithstanding any other provision of law, upon request by the
Department of Toxic  Substances Control, and approval of the
Department of Finance, the  Controller shall transfer  funds from the

Hazardous Waste Control Account to the Expedited Site
Remediation Trust Fund,  pursuant to Chapter 6.85 (commencing
with Section 25396) of Division 20  of the Health and  Safety Code.
The amount of the funds transferred shall not exceed the  proceeds of

fines and  penalties deposited in the Hazardous Waste Control
Account in the  1997-98 fiscal year, exclusive  of the fines and
penalties transferred to the Hazardous Substance Account  pursuant
to Section  25192 of the Health and Safety Code for expenditure in
accordance with  Section 25385.9 of the  Health and Safety Code.
The Department of Toxic Substances Control  shall assign priority to
hazardous substance release site projects as described in Provision 5

of  Item 3960-001-0014, and  shall not cause to be transferred an
amount, which when added to the funds  available as of July 1,
1997, is in excess of the potential liability of the state for
cleanup
costs  associated with orphan  share sites selected for the Expedited

Site Remediation Pilot Program as of  March 31, 1998.

2. The amount specified in this item is an estimate of the funds
available  from the proceeds of  fines and penalties described in
Provision 1, and does not represent a limit  on funds which may be
transferred.

3. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

3960-011-0058-For transfer by the State Controller from the Rail
Accident  Prevention and  Response Fund to the Hazardous Spill
Prevention Account, Rail Accident  Prevention and  Response Fund
. . . (164,000)

3960-490--Reappropriation, Department of Toxic Substances
Control.  Notwithstanding any other  provision of law, any
unencumbered balance in the Expedited Site  Remediation Trust
Fund as of  June 30, 1997, is hereby reappropriated for the purposes
of Chapter 6.85  (commencing with  Section 25396) of Division 20
of the Health and Safety Code.

0456--Expedited Site Remediation Trust Fund

(1) Item 3960-001-0456, Budget Act of 1995  . . . 3,100,000

3960-491--Reappropriation, Department of Toxic Substances
Control.  Notwithstanding any other  provision of law, up to
$18,052,000 of the appropriation provided in Item  3960-001-0001
of the  Budget Act of 1996, is hereby reappropriated for the payment
of the State  of California's  responsible party liability for the
Casmalia hazardous waste site cleanup.

Provisions:

1. The Director of the Department of Toxic Substances Control may
expend $18,052,000 from  this item for payment of the State of
California's responsible party liability  for the Casmalia site
cleanup
and for providing technical review and oversight related to this
cleanup.

3960-495--Reversion, Department of Toxic Substances Control.
Notwithstanding any other  provision of law, as of June 30, 1997, the

unencumbered balance of the  appropriation provided in  the
following citation shall revert to the fund balance of the fund from
which the appropriation  was made:

0001-General Fund

(1) Chapter 1428, Statutes of 1985--$2,613,999 for remedial and
emergency actions at the  Stringfellow Acid Pits.

3980-001-0001--For support of Office of Environmental Health
Hazard  Assessment  . . .  4,952,000

Schedule:

(a) 10-Health Risk Assessment  . . . 12,191,000

(b) Reimbursements  . . . -6,326,000

(c) Amount payable from the California Environmental License Plate
Fund  (Item 3980-001-0140)   . . . -913,000

3980-001-0140--For support of Office of Environmental Health
Hazard  Assessment, for payment  to Item 3980-001-0001, payable
from the California Environmental License  Plate Fund  . . .  913,000



3985-001-0001--To the Secretary for Environmental Protection,
Special  Environmental  Programs, Program 10-Permit Assistance
Centers  . . . 664,000

Provisions:

1. The funds appropriated by this item may be transferred to the
Secretary  for Environmental  Protection for administration of the
Permit Assistance Centers.

                              HEALTH AND WELFARE



4100-001-0890--For support of the State Council on Developmental
Disabilities, payable from  the Federal Trust Fund   . . . 6,074,000


Schedule:

(a) 10-State Council Planning and Operations  . . . 1,254,000

(b) 20-Community Program Development  . . . 1,826,000

(c) 30-Allocation to Area Boards  . . . 2,994,000

Provisions:

1. In the event federal funds from the Basic State Grant to the
State
Council on Developmental  Disabilities are available to the council
in
an amount exceeding the amounts  appropriated in this  item, the
additional funds shall be used only for the following purposes,
unless
the funds are  specifically designated by federal law for other
purposes:

(a) To augment the allocation to the Program Development Fund.



(b) To fund the costs of salary and benefit increases approved by the

Legislature that exceed the  Budget Act appropriation.

(c) To fund the implementation of any portion of the state plan as
approved  by the council.

4110-001-0001--For support of Area Boards on Developmental
Disabilities  . . . 0

Schedule:

(a) 10-Area Board Services  . . . 2,994,000

(b) Reimbursements  . . . -2,994,000

4120-001-0001--For support of Emergency Medical Services
Authority  . .  . 1,237,000

Schedule:

(a) 10-Emergency Medical Services Authority  . . . 3,027,000

(b) Amount payable from the Emergency Medical Services Training
Program Approval Fund  (Item 4120-001-0194)  . . . -8,000

(c) Amount payable from the Emergency Medical Services Personnel
Fund  (Item 4120-001-0312)   . . . -766,000

(d) Amount payable from the Federal Trust Fund (Item
4120-001-0890).  .  . . -1,016,000

Provisions:

1. The Emergency Medical Services (EMS) Authority shall use the
following guidelines in  administering state-funded grants to local
agencies: (a) funding eligibility  shall be limited to rural
multicounty
regions that demonstrate a heavy use of the EMS system by
nonresidents, (b) local  agencies shall provide matching funds of at
least $1 for each dollar of state  funds received, (c)  state funding

shall be used to provide only essential minimum services  necessary
to operate the  system, as defined by the authority, (d) no region
shall
receive both federal  and state funds in the  same fiscal year for
the
same purpose, and (e) the authority shall use a  competitive process
to  award the funds and shall monitor the use of the funds by
recipients to  assure that these funds are  used in an appropriate
manner.

2. Each region shall be eligible to receive up to one-half of the
total
cost of  a minimal system for  that region, as defined by the
authority.
However, the authority may  reallocate unclaimed funds  among
regions.

3. Notwithstanding Provision 1 (b), each region with a population of
300,000 or less as of June  30, 1997, shall receive the full amount
for
which it is eligible if it provides a  cash match of $0.41  per
capita or
more. Failure to provide local cash  contributions at the  specified
level shall result in  a proportional reduction in state funding.


4120-001-0194--For support of Emergency Medical Services
Authority,  for payment to Item  4120-001-0001, payable from the
Emergency Medical Services Training  Program Approval Fund   . . .
8,000

4120-001-0312--For support of Emergency Medical Services
Authority,  for payment to Item  4120-001-0001, payable from the
Emergency Medical Services Personnel  Fund  . . . 766,000

4120-001-0890--For support of Emergency Medical Services
Authority,  for payment to Item  4120-001-0001, payable from the
Federal Trust Fund  . . . 1,016,000

4120-101-0001--For local assistance, Emergency Medical Services
Authority, Program 10, grants  to local agencies  . . . 2,435,000


Provisions:

1. The General Fund support for poison control centers shall
augment, but  not replace, local  expenditures for existing poison
control center services. These funds shall  be used primarily to
increase services to underserved counties and populations and for
poison  prevention and  information services. The Director of the
Emergency Medical Services  Authority may contract  with eligible
poison control centers for the distribution of these funds.

2. Upon the request of the Director of the Emergency Medical
Services  Authority, and subject to  the approval of the Department
of Health Services, the California Medical  Assistance  Commission,
and the Department of Finance, moneys appropriated in this  item
may be transferred  to the Emergency Services and Supplemental
Payments Fund for  expenditure as provided in Item  4260-101-0693
for local assistance for the purposes specified in that item.

4120-101-0890--For local assistance, Emergency Medical Services
Authority, Program 10,  payable from the Federal Trust Fund  . . .
2,013,000

4130-001-0632--For support of the Health and Welfare Agency Data
Center, payable from the  Health and Welfare Agency Data Center
Revolving Fund  . . . 207,580,000

Schedule:

(a) 10-Facilities Operations  . . . 68,532,000

(b) 20-Administration  . . . 16,603,000

(c) 30-Systems Management Services  . . . 122,445,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance may  authorize the creation  of deficiencies pursuant to
Section 11006 of the Government Code, for the  purposes of this
item,  no sooner than 30 days after providing notification in writing

to the  chairperson of the fiscal  committee of each house of the
Legislature and the Chairperson of the  Joint Legislative Budget
Committee, or no sooner than such lesser time as the chairperson of
the  committee, or his or her  designee, may in each instance
determine.

2. Funds appropriated in this item are in lieu of the amounts that
otherwise  would have been  appropriated pursuant to Section 11755
of the Government Code.

3. The Health and Welfare Agency Data Center shall provide an
annual  report to the Legislature  on the progress of the Statewide
Automated Welfare System (SAWS) as  required by Section  10822
of the Welfare and Institutions Code. Between annual reports, the
Health and Welfare  Agency Data Center shall provide interim
reports as necessary to raise  significant and time-critical  issues.


4. Notwithstanding any other provision of law, the Health and
Welfare  Agency Data Center shall  submit a Feasibility Study Report
or equivalent federal planning document  to the Department of
Finance for review and approval prior to award of the systems
implementation contract for each  welfare automation consortium
with the exception of the Los Angeles  Eligibility Automated
Determination, Evaluation, and Reporting System (LEADER) and
ISAWS,  for which the Health  and Welfare Agency Data Center
shall continue to submit Special Project  Reports or the  equivalent
federal planning document.

4140-001-0001--For support of Office of Statewide Health Planning
and  Development  . . .  847,000

Schedule:

(a) 10-Health Policy and Analysis  . . . 3,163,000

(b) 25-Demonstration Projects  . . . 10,000

(c) 30-Health Professions Development  . . . 2,592,000

(d) 42-Facilities Development  . . . 18,257,000

(e) 45-Cal Mortgage Loan Insurance  . . . 3,754,000

(f) 60-Health Facilities Data  . . . 8,342,000

(g) 80.01-Administration  . . . 6,699,000

(h) 80.02-Distributed Administration  . . . -6,537,000

(i) Reimbursements  . . . -737,000

(j) Amount payable from the Hospital Building Fund (Item
4140-001-0121)  . . . -18,257,000

(k) Amount payable from the California Health Data and Planning
Fund  (Item 4140-001-0143)  . .  . -11,130,000

(l) Amount payable from the Registered Nurse Education Fund (Item
4140-001-0181)  . . .  -636,000

(m) Amount payable from the Health Facilities Construction Loan
Insurance Fund (Section  436.26, Health and Safety Code)  . . .
-4,159,000

(n) Amount payable from the Minority Health Professions Education
Fund  (Section 69800,  Education Code)  . . . -442,000

(o) Amount payable from the Federal Trust Fund (Federal Funds)  . .
.  -72,000

4140-001-0121--For support of Office of Statewide Health Planning
and  Development, for  payment to Item 4140-001-0001, payable
from the Hospital Building Fund   . . . 18,257,000

4140-001-0143--For support of Office of Statewide Health Planning
and  Development, for  payment to Item 4140-001-0001, payable
from the California Health Data  and Planning Fund  . . .  11,130,000



4140-001-0181--For support of Office of Statewide Health Planning
and  Development, for  payment to Item 4140-001-0001, payable
from the Registered Nurse  Education Fund  . . .  636,000

4140-101-0001--For local assistance, Office of Statewide Health
Planning  and Development  . . .  5,535,000

Schedule:

(a) 30-Health Professions Development (Family Physician Training)
. . .  6,685,000

(b) Reimbursements  . . . -400,000

(c) Amount payable from the Federal Trust Fund (Item
4140-101-0890)  . .  . -750,000

Provisions:

1. Notwithstanding subdivision (a) of Section 2.00 of this act, or
any
other  provision of law, the  funds appropriated in this item for
contracts with accredited medical  schools or programs that  train
primary care physicians' assistants, as well as contracts with
hospitals
or other health care  delivery systems located in California, that
meet
the standards of the Health  Manpower Policy  Commission
established pursuant to Chapter 1 (commencing with Section  69270)
of Part 42 of  Division 5 of Title 3 of the Education Code, shall
continue to be available  for the 1998-99,  1999-2000, and
2000-2001 fiscal years. The amount appropriated by this  item shall
be used only  for such contracts that commence on or after July 1,
1998.

2. Of the funds appropriated in this item, $300,000 is for the Nurse
Practioner and Nurse  Midwifery Program.

4140-101-0890--For local assistance, Office of Statewide Health
Planning  and Development, for  payment to Item 4140-101-0001,
payable from the Federal Trust Fund  . . .  750,000

4170-001-0001--For support of Department of Aging  . . . 3,206,000


Schedule:

(a) 10-Nutrition  . . . 3,030,000

(b) 20-Senior Community Employment Service  . . . 409,000

(c) 30-Supportive Services and Centers  . . . 2,371,000

(d) 40-Special Projects  . . . 3,160,000

(e) 50.01-Administration  . . . 5,591,000

(f) 50.02-Distributed Administration  . . . -5,591,000

(g) Reimbursements  . . . -1,431,000

(h) Amount payable from the State HICAP Fund (Item
4170-001-0289)  . .  . -136,000

(i)

Amount payable from the Federal Trust Fund (Item 4170-001-0890)
. . .  -4,197,000

Provisions:

1. The Director of Finance may authorize the transfer of funds
between this  item and Item  4170-101-0001 no sooner than 30 days
after written notification to the  chairpersons of the fiscal
committees of each house and the Chairperson of the Joint
Legislative  Budget Committee, or not  sooner than whatever lesser
time the Chairperson of the Joint Legislative  Budget Committee may
determine. The notification shall include: (a) the amount of the
proposed  transfer; (b) an  identification of the purposes for which
                                                      the funds will
be used; (c)  documentation that the  proposed
activities must be carried out in the current year and that no other
funds are available for  their support; and (d) the impact of any
transfer on the level of services.



4170-001-0289--For support of California Department of Aging, for
payment to Item  4170-001-0001, payable from the State HICAP
Fund  . . . 136,000

4170-001-0890--For support of Department of Aging, for payment
to Item  4170-001-0001,  payable from the Federal Trust Fund  . . .
4,197,000

Provisions:

1. The Department of Finance may authorize the transfer of funds
between  this item and Item  4170-101-0890 no sooner than 30 days
after written notification to the  chairpersons of the fiscal
committees of each house and the Chairperson of the Joint
Legislative  Budget Committee, or not  sooner than whatever lesser
time the Chairperson of the Joint Legislative  Budget Committee may
determine. The notification shall include: (1) the amount of the
proposed  transfer; (2) an  identification of the purposes for which
the funds will be used; (3)  documentation that the  proposed
activities must be carried out in the current year and that no other
funds are available for  their support; and (4) the impact of any
transfer on the level of services.

4170-101-0001--For local assistance, Department of Aging  . . .
29,226,000

Schedule:

(a) 10-Nutrition  . . . 63,503,000

(b) 20-Senior Community Employment Service  . . . 6,491,000

(c) 30-Supportive Services and Centers  . . . 34,167,000

(d) 40-Special Projects  . . . 30,394,000

(e) Reimbursements  . . . -12,530,000

(f) Amount payable from the State HICAP Fund (Item
4170-101-0289)  . .  . -896,000

(g) Amount payable from the Federal Trust Fund (Item
4170-101-0890)  . .  . -91,903,000

Provisions:

1. Provision 1 of Item 4170-001-0001 is also applicable to this item.



2. Notwithstanding Section 26.00 of this act, the Department of
Finance  upon notification by the  Department of Aging may
authorize transfers between Program  10--Nutrition and Program
30--Supportive Services and Centers in response to budget revisions
submitted by the Area  Agencies on Aging.

4170-101-0289--For support of California Department of Aging, for
payment to Item  4170-101-0001, payable from the State HICAP
Fund  . . . 896,000

4170-101-0890--For local assistance, Department of Aging, for
payment to  Item 4170-101-0001,  payable from the Federal Trust
Fund  . . . 91,903,000

Provisions:

1. Provision 1 of Item 4170-001-0890 is also applicable to this item.



2. Notwithstanding subdivision (c) of Section 28.00 of this act, the
Department of Finance upon  notification by the Department of
Aging may authorize augmentations in  this item for budget  revisions

submitted by Area Agencies on Aging and approved by the
Department of Aging for  estimated entitlements of per-meal
reimbursements from the U.S.  Department of Agriculture and  for
funds allocated to Area Agencies on Aging for federal Title III
one-time-only allocations.

3. Notwithstanding Section 26.00 of this act, the Department of
Finance,  upon notification by the  Department of Aging, may
authorize transfers between Program  10--Nutrition and Program
30--Supportive Services and Centers in response to budget revisions
submitted by the Area  Agencies on Aging.

4180-001-0983--For support of Commission on Aging, payable from
the  California Fund for  Senior Citizens  . . . 187,000

Provisions:

1. Funds appropriated in this item from the California Fund for
Senior  Citizens shall be allocated  by the Commission on Aging for
the pur poses specified in Section 18723  of the Revenue and
Taxation Code.

2. Pursuant to Section 18723 of the Revenue and Taxation Code, the
unencumbered balance of  this item as well as the unencumbered
balance of prior year appropriations  from the California  Fund for
Senior Citizens may be carried over and expended in any  following
fiscal year.

4180-002-0886--For support of Commission on Aging, payable from
the  California Seniors  Special Fund  . . . 74,000

Provisions:

1. Pursuant to Section 18773 of the Revenue and Taxation Code, the
unencumbered balance of  this item as well as the unencumbered
balance of prior year appropriations  from the California  Seniors
Special Fund may be carried over and expended in any following
fiscal year.

4180-002-0890--For support of Commission on Aging, payable from
the  Federal Trust Fund  . . .  283,000

4200-001-0001--For support of the Department of Alcohol and Drug
Programs  . . . 4,290,000

Schedule:

(a) 15-Alcohol and Other Drug Services Program  . . . 27,172,000


(b) 30.01-State Administration  . . . 8,274,000

(c) 30.02-State Administration--distributed . . . -8,274,000

(d) Reimbursements  . . . -3,466,000

(e) Amount payable from Driving-Under-the-Influence Program
Licensing  Trust Fund (Item  4200-001-0139)  . . . -1,677,000

(f) Amount payable from Narcotic Treatment Program Licensing
Trust  Fund (Item  4200-001-0243)  . . . -966,000

(g) Amount payable from Audit Repayment Trust Fund (Item
4200-001-0816)  . . . -67,000

(h) Amount payable from the Federal Trust Fund (Item
4200-001-0890)  . .  . -16,706,000

Provisions:

1. Upon order of the Department of Finance,  the Controller shall
transfer  such funds as are  necessary between this item and Item
4200-101-0001.



2. The Director of the Department of Finance may authorize the
transfer of  the support General  Fund appropriation among the
Alcohol and Other Drug Services Program,  and the Administration
Program in response to shifts in workload among the two programs.


4200-001-0139--For support of the Department of Alcohol and Drug
Programs, for payment to  Item 4200-001-0001, payable from the
Driving-Under-the-Influence  Program Licensing Trust  Fund  . . .
1,677,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance may  authorize  expenditures for the
Driving-Under-the-Influence Program Licensing Trust  Fund in
excess of the  amount appropriated not sooner than 30 days after
notification in writing  of the necessity therefor  is provided to
the
chairpersons of the fiscal committees and the  Chairperson of the
Joint  Legislative Budget Committee, or not sooner than whatever
lesser time the  chairperson of the  committee, or his or her
designee,
may in each instance determine.

4200-001-0243--For support of the Department of Alcohol and Drug
Programs, for payment to  Item 4200-001-0001, payable from the
Narcotic Treatment Program  Licensing Trust Fund  . . .  966,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance may  authorize  expenditures for the Narcotic Treatment
Program Licensing Trust Fund in  excess of the amount
appropriated not sooner than 30 days after notification in writing of

the  necessity therefor is  provided to the chairpersons of the
fiscal
committees and the Chairperson  of the Joint Legislative  Budget
Committee, or not sooner than whatever lesser time the  chairperson
of the committee, or  his or her designee, may in each instance
determine.

4200-001-0816--For support of the Department of Alcohol and Drug
Programs, for payment to  Item 4200-001-0001, payable from the
Audit Repayment Trust Fund  . . .  67,000

4200-001-0890--For support of the Department of Alcohol and Drug
Programs, for payment to  Item 4200-001-0001, payable from the
Federal Trust Fund  . . . 16,706,000

Provisions:

1. Upon order of the Department of Finance, the State Controller
shall  transfer such funds as are  necessary between this item and
Item 4200-101-0890.

4200-101-0001--For local assistance, Department of Alcohol and
Drug  Programs  . . . 56,477,000

Schedule:

(a) 15-Alcohol and Other Drug Services Program  . . . 298,131,000


(b) Reimbursements  . . . -47,095,000

(c) Amount payable from the Federal Trust Fund (Item
4200-101-0890)  . .  . -194,415,000

(d) Amount payable from Resident-Run Housing Revolving Fund
(Item  4200-101-0977)  . . .  -144,000

Provisions:



1. Upon order of the Department of Finance, the Controller shall
transfer  funds as are necessary  between this item and Item
4200-001-0001.

2. Upon approval of the Department of Finance, one or more
short-term  loans not to exceed a  cumulative total of $68,333,000
may be made available from the General  Fund when there is a  delay
in the allocation of federal Substance Abuse Prevention and
Treatment (SAPT) Block Grant  funds to California. The loans shall
be repaid, with interest calculated  pursuant to subdivision  (a)  of

Section 16314 of the Government Code, upon receipt of the federal
SAPT Block Grant.

3. The funds appropriated by this item are available to provide
funding for  the state's share of  expenditures for substance abuse
services provided to persons eligible for  Medi-Cal.

4. Notwithstanding subdivision (a) of Section 2.00 and Section 26.00
of  this act, the Department  of Finance may authorize a transfer of
expenditure authority between Items  4200-101-0001 and
4200-102-0001 such that the funds appropriated by either item may
be  used to pay the state and  federal share of prior fiscal years
allowable Medi-Cal costs that exceed the  amount encumbered in
prior fiscal years. The Director of Finance shall notify the
Legislature
within 10 days after  authorizing a transfer pursuant to this
provision
unless prior notification of  the transfer has been  included in the
Medi-Cal estimates submitted pursuant to Section 14100.5  of the
Welfare and  Institutions Code.

5. Notwithstanding any other provision of law, both the federal and
nonfederal shares of any  money recovered for previously paid Drug
Medi-Cal program services  provided pursuant to  Chapter 7
(commencing with Section 14000) of Part 3 of Division 9 of the
Welfare and  Institutions Code are hereby appropriated and shall be
expended as soon as  practicable for Drug  Medi-Cal services as
defined in the Welfare and Institutions Code.

6. Notwithstanding Sections 26.00, 28.00 and 28.50 of this act, the
Director of Finance shall  authorize the transfer of funds from this
item to Item 4200-102-0001 as  necessary to maintain the  funding
level for the perinatal substance abuse treatment program at a
minimum level of  twenty-five million dollars ($25,000,000).

4200-101-0890--For local assistance, Department of Alcohol and
Drug  Programs, for payment to  Item 4200-101-0001, payable from
the Federal Trust Fund  . . .  194,415,000

Provisions:



1. Upon order of the Department of Finance, the State Controller
shall  transfer such funds as are  necessary between this item and
Item 4200-001-0890.

2. The Department of Alcohol and Drug Programs shall require
county  offices of alcohol and  drug programs to give funding
priority, within the funds expended on  youth prevention programs,
to establishing, expanding, or improving programs for the target
populations identified by the  federal grant requirements.

4200-101-0977--For local assistance, Department of Alcohol and
Drug  Programs, for payment to  Item 4200-101-0001, payable from
the Resident-Run Housing Revolving  Fund  . . . 144,000

Provisions:

1. To the extent that moneys available in the Resident-Run Housing
Revolving Trust Fund are less  than the amount appropriated by this
item, this appropriation shall be  limited to that lesser  amount.


2. Notwithstanding any other provision of law, if revenues and loan
repayments to the  Resident-Run Housing Revolving Trust Fund are
sufficient to create  additional allocation  workload, the Director
of
Finance may authorize expenditures for the  Department of Alcohol
and  Drug Programs in excess of the amount appropriated not sooner
than 30  days after notification in  writing of the necessity
therefor is
provided to the chairpersons of the fiscal  committees and the
Chairperson of the Joint Legislative Budget Committee, or not
sooner than  whatever lesser time  the chairperson of the committee,
or his or her designee, may in each  instance determine.

4200-102-0001--For local assistance, Department of Alcohol and
Drug  Programs, for perinatal  substance abuse treatment programs  .

. . 26,078,000

Schedule:

(a) 15-Alcohol and Other Drug Services Program  . . . 31,147,000

(b) Reimbursements  . . . -5,069,000

Provisions:

1. Upon order of the Department of Finance, the Controller shall
transfer  funds as are necessary  between this item and Item
4200-001-0001 for support costs associated  with the perinatal
substance abuse treatment programs.

2. The funds appropriated by this item, exclusive of funds allocated
to  alcohol and drug-free living  programs and transitional living
programs, are available to provide funding  for the state's share of
expenditures for perinatal substance abuse services provided to
persons  eligible for Medi-Cal.

3. Provisions 4 and 5 of Item 4200-101-0001 also apply to this item.



4. Notwithstanding Sections 26.00, 28.00 and 28.50 of this act, the
Director of Finance shall  authorize the transfer of funds to this
item
from Item 4200-101-0001 as  necessary to maintain the  funding
level for the perinatal substance abuse treatment program at a
minimum level of  twenty-five million dollars ($25,000,000).

4200-490--Reappropriation, Department of Alcohol and Drug
Programs.  Notwithstanding any  other provision of law, the
unencumbered balances of the following  appropriations are
reappropriated for the purposes provided for in those appropriations.

The  funds reappropriated by  this item shall be available for
encumbrance and expenditure until June 30,  1998:

0001--General Fund

(a) Item 4200-101-0001, Budget Act of 1996

(b) Item 4200-102-0001, Budget Act of 1996

4220-001-0001--For support of Child Development Programs
Advisory  Committee appointed  pursuant to Section 8286 of the
Education Code  . . . 240,000

Schedule:

(a) 10-Continuing program costs  . . . 392,000

(b) Reimbursements  . . . -152,000

4260-001-0001--For support of Department of Health Services  . . .
168,016,000

Schedule:

(1) 10-Public and Environmental Health  . . . 206,475,000

(2) 20-Health Care Services  . . . 376,941,000

(3) 30.01-Departmental Administration  . . . 32,111,000

(4) 30.02-Departmental Administration Distributed  . . . -31,586,000



(5) Reimbursements  . . . -17,451,000

(6) Amount payable from the Breast Cancer Research Account (Item
4260-001-0007)  . . .  -1,652,000

(7) Amount payable from the Breast Cancer Control Account (Item
4260-001-0009)  . . .  -5,939,000

(8) Amount payable from the Nuclear Planning Assessment Special
Account (Item  4260-001-0029)  . . . -495,000

(9) Amount payable from the Motor Vehicle Account, State
Transportation Fund (Item  4260-001-0044)  . . . -459,000

(10) Amount payable from the Sale of Tobacco to Minors Control
Account  (Item  4260-001-0066)  . . . -2,053,000

(11) Amount payable from the Occupational Lead Poisoning
Prevention  Account, General Fund  (Item 4260-001-0070)  . . .
-1,802,000

(12) Amount payable from the Medical Waste Management Fund
(Item  4260-001-0074)  . . .  -1,058,000

(13) Amount payable from the Radiation Control Fund (Item
4260-001-0075)  . . . -13,002,000

(14) Amount payable from the Tissue Bank License Fund (Item
4260-001-0076)  . . . -99,000

(15) Amount payable from the Export Document Program Fund
(Item  4260-001-0082)  . . .  -418,000

(16) Amount payable from the Clinical Laboratory Improvement
Fund  (Item 4260-001-0098)  . . .  -5,663,000

(17) Amount payable from the Health Statistics Special Fund (Item
4260-001-0099)  . . .  -9,754,000

(18) Amount payable from the Wine Safety Fund (Item
4260-001-0116)  . .  . -192,000

(19) Amount payable from the Water Device Certification Special
Account  (Item 4260-001-0129)   . . . -61,000

(20) Amount payable from the Food Safety Fund (Item
4260-001-0177)  . .  . -2,234,000

(21) Amount payable from the Environmental Laboratory
Improvement  Fund (Item  4260-001-0179)  . . . -2,252,000

(22) Amount payable from the Genetic Disease Testing Fund (Item
4260-001-0203)  . . .  -60,465,000

(23) Amount payable from the Low-Level Radioactive Waste
Disposal  Fund (Item  4260-001-0227)  . . . -1,181,000

(24) Amount payable from the Health Education Account, Cigarette
and  Tobacco Products  Surtax Fund (Item 4260-001-0231)  . . .
-28,073,000

(25) Amount payable from the Hospital Services Account, Cigarette
and  Tobacco Products  Surtax Fund (Item 4260-001-0232)  . . .
-966,000

(26) Amount payable from the Physician Services Account, Cigarette
and  Tobacco Products  Surtax Fund (Item 4260-001-0233)  . . .
-241,000

(27) Amount payable from the Research Account, Cigarette and
Tobacco  Products Surtax Fund  (Item 4260-001-0234)  . . .
-1,697,000

(28) Amount payable from the Unallocated Account, Cigarette and
Tobacco Products Surtax  Fund (Item 4260-001-0236)  . . .
-3,054,000

(29) Amount payable from the Domestic Violence Fund (Item
4260-001-0253)  . . . -450,000

(30) Amount payable from the Infant Botulism Treatment and
Prevention  Fund (Item  4260-001-0272)  . . . -678,000

(31) Amount payable from the Safe Drinking Water Account, (Item
4260-001-0306)  . . .  -7,935,000

(32) Amount payable from the Registered Environmental Health
Specialist  Fund (Item  4260-001-0335)  . . . -164,000

(33) Amount payable from the Mosquitoborne Disease Surveillance
Account (Item  4260-001-0478)  . . . -26,000

(34) Amount payable from the Emergency Services and
Supplemental  Payments Fund (Item  4260-001-0693)  . . . -113,000


(35) Amount payable from the California Alzheimer's and Related
Disorders Research Fund (Item  4260-001-0823)  . . . -236,000

(36) Amount payable from the Medi-Cal Inpatient Adjustment Fund
(Item  4260-001-0834)  . . .  -752,000

(37) Amount payable from the Federal Trust Fund (Item
4260-0010890)  .  . . -244,827,000

(38) Amount payable from the Local Health Capital Expenditure
Account,  County Health  Services Fund (Item 4260-001-0900)  . . .
-17,000

(39) Amount payable from the California Breast Cancer Research
Fund  (Item 4260-001-0945)  . .  . -466,000

Provisions:

1. Of the total amount of reimbursements in this item, $2,956,000
shall be  available for  administration, research, and training
projects.
Notwithstanding the  provisions of Section 28.00 of  this act, the
State Department of Health Services shall report any new  project or
any increase or  decrease in excess of $400,000 for an identified
project.

2. Except as otherwise prohibited by law, the department shall
promulgate  emergency regulations  to adjust the public health fees
set by regulation to an amount, such that if  the new fees were
effective throughout the 1997-98 fiscal year, the estimated revenues
would  be sufficient to offset  at least 95 percent of the approved
program level intended to be supported  by those fees.

3. Effective July 1, 1997, the annual fee for a general acute care
hospital,  acute psychiatric  hospital, special hospital, general
acute
care rehabilitation hospital and  chemical dependency  recovery
hospital shall be $61.46 per bed. Effective July 1, 1997, the  annual

fee for a skilled  nursing facility, intermediate care facility, or
intermediate care facility for  the developmentally  disabled is
$145.39 per bed.



  The fees of the State Department of Health Services that are
subject
to  the annual fee adjustment  pursuant to subdivision (a) of Section

100445 of the Health and Safety  Code shall be increased by  8.2
percent, effective July 1, 1997.

4. Of the funds appropriated by this item and Item 4260-001-0890,
$37,000 and $110,000,  respectively, are not available for
expenditure without prior approval by the  Director of Finance,  and
not sooner than 30 days after notification in writing of the
necessity
for  these expenditures is  provided to the Chairperson of the Joint
Legislative Budget Committee, or  not sooner than  whatever lesser
time the chairperson of the committee, or his or her  designee, may
determine. The  funds identified in this provision shall be available

exclusively for Medi-Cal  field offices located in  counties
originally
scheduled to be transitioned from the existing  fee-for-service
delivery system  to managed care health plans during the 1997-98
fiscal year. To the extent  that these transitions  do not occur as
scheduled, the budgeted savings will not be achieved. It is  the
intent
of this  provision to provide sufficient resources, subject to the
requirement of  legislative notification, to  process treatment
authorization requests and thereby avoid adverse impact  on either
providers or  beneficiaries.

5. When entering into contracts with health care service plans that
provide  comprehensive dental  benefits to Medi-Cal beneficiaries on
an at-risk basis, the State Department  of Health Services  may
require that the health care service plans pay for the costs of the
administrative and  regulatory oversight required to monitor the
contract compliance terms of  the agreement with the  department.



4260-001-0007--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Breast Cancer
Research Account  . . .  1,652,000

4260-001-0009--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Breast Cancer
Control Account  . . .  5,939,000

4260-001-0029--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Nuclear Planning
Assessment Account  .  . . 495,000

4260-001-0044--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Motor Vehicle
Account, State  Transportation Fund  . . .  459,000

4260-001-0066--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Sale of Tobacco
to Minors Control  Account  . . . 2,053,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

4260-001-0070--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Occupational
Lead Poisoning Prevention  Account, General  Fund  . . . 1,802,000


Provisions:

1. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

4260-001-0074--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Medical Waste
Management Fund  . . .  1,058,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

4260-001-0075--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Radiation
Control Fund  . . . 13,002,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

4260-001-0076--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Tissue Bank
License Fund   . . . 99,000

4260-001-0082--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Export
Document Program Fund  . . .  418,000

4260-001-0098--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Clinical
Laboratory Improvement Fund  .  . . 5,663,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

2. Notwithstanding any other provision of law, the Department of
Health  Services shall not  impose fees on clinical laboratories that

were not subject to state fees prior  to January 1, 1996,  until
exemption from the federal Clinical Laboratory Improvement
Amendments (CLIA; P.L.  100-578) of 1988 is granted.
Expenditures for the Clinical Laboratory  Program shall not exceed
amounts collected in clinical laboratory fees plus federal grant
funds
provided by the Health Care  Financing Administration to support
this program. Since the date of  exemption from CLIA is  unknown,
the Department of Finance may adjust the amounts provided for  this
program by this  item and from federal funds pursuant to the
provisions of Sections 27.00  and 28.00 of this act.

4260-001-0099--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Health Statistics
Special Fund  . . .  9,754,000

4260-001-0116--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Wine Safety
Fund  . . . 192,000

4260-001-0129--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Water Device
Certification Special  Account  . . . 61,000

4260-001-0177--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Food Safety
Fund  . . . 2,234,000

4260-001-0179--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Environmental
Laboratory Improvement  Fund  . . . 2,252,000

4260-001-0203--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Genetic Disease
                                  Testing Fund  . . .  60,465,000


4260-001-0227--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Low-Level
Radioactive Waste Disposal  Fund  . . . 1,181,000

Provisions:

1. Upon the request of the Department of Health Services and the
approval  of the Director of  Finance, a General Fund loan of up to
$1,000,000 shall be made to the  Low-Level Radioactive  Waste
Disposal Fund. The loan shall be repaid upon receipt of fees
collected from the disposal of  low-level radioactive waste by
generators once the Ward Valley site  becomes operational.  Accrued
interest shall also be repaid in accordance with Section 16314 of
the
Government Code.

4260-001-0231--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Health Education
Account, Cigarette  and Tobacco Products  Surtax Fund  . . .
28,073,000

4260-001-0232--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Hospital Services
Account, Cigarette  and Tobacco Products  Surtax Fund  . . .
966,000

4260-001-0233--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Physician
Services Account, Cigarette  and Tobacco Products  Surtax Fund  . .
. 241,000

4260-001-0234--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Research
Account, Cigarette and  Tobacco Products Surtax  Fund  . . .
1,697,000

4260-001-0236--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Unallocated
Account, Cigarette and  Tobacco Products Surtax  Fund  . . .
3,054,000

4260-001-0253--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Domestic
Violence Fund  . . . 450,000

4260-001-0272--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Infant Botulism
Treatment and  Prevention Fund  . . . 678,000

4260-001-0306--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Safe Drinking
Water Account, General  Fund  . . . 7,935,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from  the assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

4260-001-0335--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Registered
Environmental Health  Specialist Fund  . . . 164,000

4260-001-0478--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Mosquitoborne
Disease Surveillance  Account  . . . 26,000

4260-001-0693--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Emergency
Services and Supplemental  Payments Fund  . . .  113,000

Provisions:

1. To the extent that moneys available in the Emergency Services and
Supplemental Payments  Fund are less than the amount appropriated
in this item, this appropriation  shall be limited to that  lesser
amount.


2. Notwithstanding any other provision of law, if revenues to the
Emergency Services and  Supplemental Payments Fund are sufficient
to create additional allocation  workload, the Director  of Finance
may authorize expenditures for the Department of Health  Services in
excess of the  amount appropriated not sooner than 30 days after
notification in writing  of the necessity therefor  is provided to
the
chairpersons of the fiscal committees and the  Chairperson of the
Joint  Legislative Budget Committee, or not sooner than whatever
lesser time the  chairperson of the  committee, or his or her
designee,
may in each instance determine.

3. Funds appropriated by this item and augmentations authorized
pursuant  to Provision 2 may be  transferred by executive order
approved by the Director of Finance from  the Department of  Health
Services to the California Medical Assistance Commission if
revenues to the Emergency  Services and Supplemental Payments
Fund are sufficient to create  allocation workload for that
commission.

4260-001-0823--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the California
Alzheimer's and Related  Disorders Research Fund  . .  . 236,000


4260-001-0834--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Medi-Cal
Inpatient Payment Adjustment  Fund  . . . 752,000

4260-001-0890--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the Federal Trust
Fund  . . . 244,827,000

Provisions:

1. The limitations and conditions applicable to Item 4260-001-0001
also  apply to this item if  appropriate.

2. Of the funds appropriated by this item, $44,499,000 shall be
available for  administration,  research, and training projects.
Notwithstanding the provisions of Section  28.00 of this act, the
Department of Health Services shall report under that section any
new  project or any increase or  decrease in excess of $400,000 for
an identified project.

4260-001-0900--For support of Department of Health Services, in
lieu of  the amounts that  otherwise would be appropriated in the
Local Health Capital Expenditure  Account of the County  Health
Services Fund pursuant to Chapter 1351, Statutes of 1980, for
payment to Item  4260-001-0001, payable from the Local Health
Capital Expenditure  Account  . . . 17,000

4260-001-0945--For support of Department of Health Services, for
payment to Item  4260-001-0001, payable from the California Breast
Cancer Research Fund   . . . 466,000

4260-002-0942--For support of Department of Health Services,
payable  from the Health Facilities  Citation Penalties Account,
Special Deposit Fund  . . . 1,000,000

4260-003-0942--For support of Department of Health Services,
payable  from the Federal Citation  Penalties Account, Special
Deposit Fund  . . . 205,000

4260-007-0890--For support of Department of Health Services,
payable  from the Federal Trust  Fund  . . . 18,795,000

Provisions:

1. Notwithstanding Section 28.00 of this act, adjustments may be
made to  align the federal funds  for legislative actions and other
technical adjustments affecting the  recipient department's
appropriation authority.

4260-101-0001--For local assistance, Department of Health Services,
Medical Assistance  Program, payable from the Health Care Deposit
Fund (912) after transfer  from the General Fund   . . .
6,877,533,000


Schedule:

(a) 20.10.030-Benefits (Medical Care and Services)  . . .
15,915,850,000

(b) 20.10.010-Eligibility (County Administration)  . . . 879,283,000



(c) 20.10.020-Fiscal Intermediary Management  . . . 141,230,000

(d) Prior Fiscal Year Reconciliation  . . . 0

(e) Amount payable from the Federal Trust Fund (Item
4260-1010890)  . .  .  -10,045,560,000

(f) Amount payable from Federal Trust Fund (Item 4260-1030890)  .
. .  -13,270,000

Provisions:

  1. The aggregate principal amount of disproportionate share
hospital  general obligation debt that  may be issued in the 1997-98
fiscal year pursuant to subparagraph (A) of  paragraph (2) of
subdivision (f) of Section 14085.5 of the Welfare and Institutions
Code  shall be $0.

2. Notwithstanding any other provision of law, both the federal and
nonfederal shares of any  money recovered for previously paid health
care services, provided  pursuant to Chapter 7  (commencing with
Section 14000) of Part 3 of Division 9 of the Welfare  and
Institutions Code,  are hereby appropriated and shall be expended as
soon as practicable for  medical care and services  as defined in the

Welfare and Institutions Code.



3. Notwithstanding any other provision of law, accounts receivable
for  recoveries as described in  Provision 2 above shall have no
effect
upon the positive balance of the  General Fund or the  Health Care
Deposit Fund. Notwithstanding any other provision of law,  money
recovered as  described in this item that is required to be
transferred
from the Health  Care Deposit Fund to the  General Fund shall be
credited by the Controller to the General Fund  without regard to the

appropriation from which it was drawn.

4. Without regard to fiscal year, the General Fund shall make one or

more  loans available not to  exceed a cumulative total of
$45,000,000 to be transferred as needed to the  Health Care Deposit
Fund to meet cash needs. The loans are subject to the repayment
provisions  of Section 16351 of  the Government Code. Any
additional loan requirement in excess of  $45,000,000 shall be
processed in the manner prescribed by Section 16351 of the
Government  Code.

5. Notwithstanding any other provision of law, the Director of
Health  Services may give public  notice relative to proposing or
amending any rule or regulation that could  result in increased costs

in the Medi-Cal program only after approval by the Department of
Finance  as to the availability of  funds; and any rule or regulation

adopted by the Director of Health  Services and any  communication
that revises the Medi-Cal program shall be effective only  from and
after the date  upon which it is approved as to availability of funds
by
the Department of  Finance.

6. The reimbursement rate for any procedure or service shall not be
increased to exceed the  Medicare rate for a comparable procedure
or service, nor shall the  reimbursement rate for any  procedure or
service that is currently above the Medicare rate be increased  above

its current level.

7. Of the funds appropriated by this item, up to $50,000 may be
allocated  for attorneys' fees  awarded pursuant to state or federal
law without prior notification to the  Legislature. Individual
settlements authorized under this language shall not exceed $5,000.
The  semiannual estimates of  Medi-Cal expenditures due to the
Legislature in January and May shall  reflect attorney fees paid  15
or
more days prior to the transmittal of the estimate.

8. When a date for public hearing has been established for a change
in any  program, rule, or  regulation, the two fiscal committees and
the Joint Legislative Budget  Committee shall be   notified if the
annual General Fund cost of the proposed change is  $1,000,000 or
more.

9. Change orders to the medical or the dental fiscal intermediary
contract  for amounts exceeding  a total cost of $250,000 shall be
approved by the Director of Finance not  sooner than 30 days  after
written notification of the change order is provided to the
chairpersons of the fiscal and  policy committees in each house and
to the Chairperson of the Joint  Legislative Budget  Committee or
not sooner than such lesser time as the Chairperson of the  Joint
Legislative Budget  Committee, or his or her designee, may
designate. If there are changes or  potential changes in  federal
funding, the Department of Finance shall provide timely written
notification of the changes  to the chairperson of the fiscal
committee
in each house and the  Chairperson of the Joint  Legislative Budget
Committee. The semiannual estimates of Medi-Cal  expenditures due
to the  Legislature in January and May may constitute the
notification
required by  this provision.

10. Recoveries of advances made to counties in prior years pursuant
to  Section 14153 of the  Welfare and Institutions Code are
reappropriated to the Health Care  Deposit Fund for  reimbursement
of those counties where allowable costs exceeded the  amounts
advanced.  Recoveries in excess of the amounts required to fully
reimburse allowable  costs shall be  transferred to the General Fund.

When a projected deficiency exists in the  Medical Assistance
Program, these funds, subject to notification to the Chairperson of
the Joint  Legislative Budget  Committee, are appropriated and shall
be expended as soon as practicable  for the state's share of
payments
for medical care and services, county administration, and fiscal
intermediary services.

11. The Department of Finance may transfer funds representing all or
any  portion of any  estimated savings that are a result of
improvements in the Medi-Cal claims  processing procedures  from
the Medi-Cal services budget or the support budget of the State
Department of Health  Services (Item 4260-001-0001) to the fiscal
intermediary budget item for  purposes of making  improvements to
the Medi-Cal claims system.

12. Upon order of the Director of Finance, the Controller shall
transfer  such funds as are  necessary between this item and Item
4300-101-0001 for the state's share  of expenditures for
developmental services provided to persons eligible for Medi-Cal.


13. Notwithstanding subdivision (a) of Section 2.00 and Section 6.50
of  this act, the Department  of Finance may authorize transfer of
expenditure authority between  Schedule (a), (b), or (c) and
Schedule (d). Schedule (d) may be used for the liquidation of prior
years'  excess obligations of  Item 4260-101-0001.

  The Director of Finance shall notify the Legislature within ten
days
of  authorizing such a transfer  unless prior notification of the
transfer
has been included in the Medi-Cal  estimates  submitted  pursuant to
Section 14100.5 of the Welfare and Institutions Code.

4260-101-0693--Notwithstanding any other provision of law,
moneys  available in the Emergency  Services and Supplemental
Payments Fund, after the appropriation made by  Item
4260-001-0693  of this act, are appropriated to the Department of
Health Services for  expenditure for local  assistance for the
purposes
specified in Section 14085.6 of the Welfare and  Institutions Code.



4260-101-0890--For local assistance, Department of Health Services,
for  payment to Item  4260-101-0001, payable from the Federal
Trust Fund  . . . 10,045,560,000

Provisions:

1. Any of the provisions in Item 4260-101-0001 that are relevant to
this  item also apply to this  item.

4260-102-0001--For local assistance, Department of Health Services,
Program  20.10.030-Benefits (Medical Care and Services), for
supplemental  reimbursement for debt service  pursuant to Section
14085.5 of the Welfare and Institutions Code  . . .  65,613,000

4260-102-0890--For local assistance, Department of Health Services,
Program  20.10.030--Benefits (Medical Care and Services), for
supplemental  reimbursement for debt  service pursuant to Section
14085.5 of the Welfare and Institutions Code  .  . . 68,237,000

4260-103-0890--For local assistance, for refugee services,
Department of  Health Services, for  payment to Item
4260-101-0001, payable from the Federal Trust Fund  . . .
13,270,000

Provisions:

1. Any of the provisions in Item 4260-101-0001 that are relevant to
this  item also apply to this  item.

4260-111-0001--For local assistance, Department of Health Services
. . .  307,525,000

Schedule:

(a) 10.10.010-Vital Records Improvement Project  . . . 300,000

(b) 10.30.030-Childhood Lead Poisoning Prevention  . . . 6,712,000


(c) 10.30.040-Chronic Diseases  . . . 69,833,000

(d) 10.30.050-Communicable Disease Control  . . . 67,505,000

(e) 10.30.060-AIDS  . . . 149,114,000

(f) 20.30-County Health Services  . . . 200,008,000

(g) 20.40-Primary Care and Family Health  . . . 1,223,561,000

(h) Reimbursements-Family Health Services, CCS Enrollment Fees,
and  GHPP Repayments  . . .  -464,000

(i) Reimbursements-Primary Care and Family Health, WIC Rebates
and  Recoveries  . . .  -224,951,000

(j) Reimbursements-Public Health Service AIDS  . . . -7,249,000

(k) Reimbursements--Chronic Diseases  . . . -342,000

(#L##m#) Amount payable from the Breast Cancer Control Account
(Item  4260-111-0009)  . . .  -17,706,000

(m) Amount payable from the Health Statistics Special Fund (Item
4260-111-0099)  . . . -300,000

  (n) Amount payable from the Health Education Account, Cigarette
and  Tobacco Products Surtax  Fund (Item 4260-111-0231)  . . .
-44,346,000

(o) Amount payable from the Hospital Services Account, Cigarette
and  Tobacco Products Surtax  Fund (Item 4260-111-0232)  . . .
-126,555,000

(p) Amount payable from the Physician Services Account, Cigarette
and  Tobacco Products  Surtax Fund (Item 4260-111-0233)  . . .
-19,638,000

(q) Amount payable from the Unallocated Account, Cigarette and
Tobacco  Products Surtax Fund  (Item 4260-111-0236)  . . .
-103,262,000

(r) Amount payable from the Child Health and Safety Fund (Item
4260-111-0279)  . . . -350,000

(s) Amount payable from the Federal Trust Fund (Item
4260-1110890)  . .  . -864,345,000

Provisions:



1. Program 10.30.040--Chronic Diseases:

Of the total amount of reimbursements in this item, $342,000 shall be

available for administration,  research and training projects.
Notwithstanding the provisions of Section  28 of this act, the
Department of Health Services shall report  under that section, any
new  project or any increase or  decrease in excess of $400,000 for
an identified project.

2. Program 10.30.050--Communicable Disease Control:

(a) Of the funds appropriated in Schedule (d) of this item from
General  Fund vaccine savings to  be used for immunization
activities, $10,841,000 in local assistance funds  shall be allocated
for
the  following purposes:





(1) Development of a statewide network of local immunization
tracking  systems  . . . 3,300,000



(2) Grants to licensed primary care clinics for immunization
activities
. . .  3,520,000



(3) Grants to identify and immunize children now unserved due to
cultural,  linguistic, or  geographic barriers  . . . 4,021,000



(b) The State Department of Health Services shall require counties
that  receive federal or general  immunization funds to involve all
providers, including private and primary  care clinics, in the
development of local immunization action plans.

3. Program 10.30.060-AIDS:

(a) The Office of AIDS in the State Department of Health Services,
in  allocating and processing  contracts and grants, shall comply
with
the same requirements that are  established for contracts  and grants

for other public health programs. Specifically, the office: (1)
shall
develop  request-for-proposals that include the standards pursuant to

which the  proposals will be  evaluated; (2) shall use an evaluation
and selection committee consisting of  persons with expertise  in
reviewing proposals; (3) may negotiate the terms and conditions of
the  contracts and grants; (4)  may reject any and all contracts or
grants; and (5) shall publish a timetable  and develop  appropriate
outreach efforts to assure that the request for a proposal  reaches
appropriate  recipients of funds. The contracts or grants
administered
by the Office of  AIDS shall be exempt  from the Public Contract
Code and shall be exempt from approval by the  Department of
Finance  and the Department of General Services prior to their
execution.

(b) The State Department of Health Services, Office of AIDS, may
subsidize the health insurance  premiums for persons who are eligible

to receive AIDS drug treatment  under the AIDS Drug  Program,
under the following conditions:

(1) The eligible person's health insurance covers drug treatments
available  through the AIDS Drug  Program.

(2) The annual cost of the health insurance premiums do not exceed
the  annual  cost of providing  AIDS drugs for the eligible person.


(c) The State Department of Health Services, Office of AIDS, shall
use  behavioral survey data, as  provided through AIDS-related
research activities conducted by the  University of California, in
conjunction with epidemiological information to assist in targeting
HIV  education and prevention  efforts.



4. Program 20.40-Primary Care and Family Health:

(a) Notwithstanding Section 28.00 of this act, the Department of
Finance,  upon request of the  State Department of Health Services,
may authorize and approve a budget  revision to augment  Schedule
(i) Primary Care and Family Health, WIC Rebates and  Recoveries, in
this item for any  additional rebate moneys or recoveries that become

available for the  Special Supplemental Food  Program for Women,
Infants, and Children (WIC) during this fiscal year.

(b) Counties may retain 50 percent of total enrollment and
assessment fees  that are collected by  the counties for the CCS
program. Fifty percent of the enrollment and  assessment fee for each

county shall be offset from the state's match for that county.

(c) Of the funds appropriated in this item, $1,000,000 is available
in
augmentation of the  American Indian Health Program, but only to
the extent that the Director  of Health Services  determines that (1)

an agreement has been implemented with the authority  of the federal
Indian  Self Determination Act between the Health Care Financing
Administration  and the federal Indian  Health Service the result of
which is that the federal government will pay  for 100 percent of the

costs of providing Medi-Cal services provided to American Indians
through  tribally operated  health care programs and (2) federal
payment for those services will result  in General Fund cost  savings

of at least $3,000,000 during the 1997-98 fiscal year.



(d) Of the funds appropriated in this item for the Adolescent Family
Life  Program (AFLP),  $3,000,000 shall be used to provide AFLP
services to siblings of pregnant  or parenting teens.



(e) Notwithstanding Section 2.00 of this act, the $19,148,000
appropriated  in this item for the  Community Challenge Grant
Program shall be available for encumbrance  until June 30, 1999.



4260-111-0009--For local assistance, Department of Health Services,
for  payment to Item  4260-111-0001, payable from the Breast
Cancer Control Account  . . .  17,706,000

4260-111-0099--For local assistance, Department of Health Services,
for  payment to Item  4260-111-0001, payable from the Health
Statistics Special Fund  . . .  300,000

4260-111-0231--For local assistance, Department of Health Services,
for  payment to Item  4260-111-0001, payable from the Health
Education Account, Cigarette  and Tobacco Products  Surtax Fund
. . . 44,346,000

4260-111-0232--For local assistance, Department of Health Services,
for  payment to Item  4260-111-0001, payable from the Hospital
Services Account, Cigarette  and Tobacco Products  Surtax Fund   . .

. 126,555,000

4260-111-0233--For local assistance, Department of Health Services,
for  payment to Item  4260-111-0001, payable from the Physician
Services Account, Cigarette  and Tobacco Products  Surtax Fund   . .

. 19,638,000

4260-111-0236--For local assistance, Department of Health Services,
for  payment to Item  4260-111-0001, payable from the Unallocated
Account, Cigarette and  Tobacco Products Surtax  Fund   . . .
103,262,000

4260-111-0279--For local assistance, Department of Health Services,
for  payment to Item  4260-111-0001, payable from the Child Health
and Safety Fund  . . .  350,000

4260-111-0890--For local assistance, Department of Health Services,
for  payment to Item  4260-111-0001, payable from the Federal
Trust Fund  . . . 864,345,000

Provisions:

1. Of the funds appropriated by this item, $55,307,000 shall be
available for  administration,  research, and training projects.
Notwithstanding the provisions of Section  28.00 of this act, the
State Department of Health Services shall report under that section
any  new project or any  increase or decrease in excess of $400,000
for an identified project.

2. Notwithstanding any other provision of law, the State Department
of  Health Services' Maternal  and Child Health Branch may
reimburse county maternal and child health  programs for costs
identified in an approved annual expenditure plan as an alternative
to
contracts, grants, or  agreements. The use of these annual
expenditure plans shall be limited to  those programs that are
funded
in whole or in part by funding provided under Title V of the federal
Social Security Act.  The director shall establish the terms and
conditions for annual expenditure  plans and county  reimbursements.


4260-295-0001--For local assistance, Department of Health Services,
for  reimbursement, in  accordance with the provisions of Section 6
of Article XIII B of the  California Constitution or of  Section
17561
of the Government Code, of the costs of any new program  or
increased level of  service of an existing program mandated by
statute
or executive order,  State Controller  . . .  6,716,000

Schedule:

(1) 98.01.026.891-SIDS Contacts by Local Health Officers (Ch.
268/91)  .  . . 309,000

(2) 98.01.045.374-SIDS Notices (Ch. 453, Stats. 1974)  . . . 33,000



(3) 98.01.091.692-Pacific Beach Safety (Ch. 916/92)  . . . 67,000


(4) 98.01.095.589-SIDS Autopsies (Ch. 955, Stats. 1989)  . . .
1,777,000

(5) 98.01.108.888-AIDS Search Warrants (Ch. 1088, Stats. 1988)  .
. .  855,000

(6) 98.01.116.381-Medi-Cal Beneficiary Death Notices (Ch. 102,
Stats.  1981 and Ch. 1163,  Stats. 1981)  . . . 95,000

(7) 98.01.159.788-Inmates AIDS Testing (Ch. 1597, Stats. 1988)  . .
.  1,180,000

(8) 98.01.160.390-Perinatal services for alcohol/drug exposed infants

(Ch.  1603, Stats. 1990)  . . .  2,400,000

Provisions:

1. Except as provided in Provision 2, allocations of funds
appropriated by  this item to the  appropriate local entities shall
be
made by the State Controller in  accordance with the provisions  of
each statute or executive order that mandates the reimbursement of
the  costs, and shall be  audited to verify the actual amount of the
mandated costs in accordance  with subdivision (d) of  Section 17561
of the Government Code. Audit adjustments to prior year  claims
may be paid from  this item. Funds appropriated by this item may be
                                          used to provide
reimbursement pursuant to  Article 5 (commencing
with Section 17615) of Chapter 4 of Part 7 of  Division 4 of Title 2
of the  Government Code.

2. If any of the scheduled amounts are insufficient to provide full
reimbursement of costs, the  Controller may, upon notifying the
Director of Finance in writing, augment  those deficient  amounts
from the unencumbered balance of any other scheduled amounts
therein. No order may  be issued pursuant to this provision unless
written notification of the  necessity therefor is provided  to the
chairperson of the committee in each house that considers
appropriations and  the  Chairperson of the Joint Legislative Budget
Committee or his or her  designee.

4260-301-0001--For capital outlay, Department of Health Services  .
. .  4,551,000

Schedule:

(1) 94.60.040-Phase II Replacement Laboratory Facilities,
Richmond-Working drawings  . . .  4,551,000

4260-401--In the event the bonds authorized for replacement
laboratory  facilities in the City of  Richmond, as authorized by
Section 100500 of the Health and Safety  Code, are not sold, the
Department of Health Services shall commit, from the amount
appropriated  to the department by  this act for its support, a
sufficient amount to repay interim financing loans  incurred for that

facilities purpose. It is the intent of the Legislature that this
commitment  requirement be included  in future Budget Acts until
outstanding loans for interim financing are  repaid either through
the
sale of bonds or from an appropriation.

4260-490--Reappropriation, Department of Health Services.
Notwithstanding any other provision  of law, of the appropriation
provided in the following citation, up to  $19,410,000 for the
Community Challenge Grant Program is reappropriated for the
program in  FY 1997-98, subject  to the limitations provided for in
the appropriation, and shall be available  for expenditure until
June
30, 1998:

001--General Fund:

(1) Item 4260-111-001(g), Budget Act of 1996, 20.40-Primary Care
and  Family Health

4270-001-0001--For support, California Medical Assistance
Commission  .  . . 1,177,000

Schedule:

(a) 10-California Medical Assistance Commission  . . . 2,354,000


(b) Reimbursements  . . . -1,177,000

4280-001-0309--For support of Managed Risk Medical Insurance
Board,  for payment to Item  4280-001-0313, payable from the
Perinatal Insurance Fund  . . . 717,000

Provisions:

1. Provision 1 of Item 4280-001-0313 also applies to this item.

4280-001-0313--For support of Managed Risk Medical Insurance
Board,  payable from the Major  Risk Medical Insurance Fund  . . .
684,000

Schedule:

(a) 10-Major Risk Medical Insurance Program  . . . 684,000

(b) 20-Access for Infants and Mothers Program  . . . 717,000

(c) 30-Health Insurance Plan of California   . . . 345,000

(d) Amount payable from the Perinatal Insurance Fund, (Item
4280-001-0309)  . . . -717,000

(e) Amount payable from the Voluntary Alliance Uniting Employers
Fund  (Item 4280-001-0957)   . . . -345,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance may  authorize  expenditures for the Managed Risk Medical
Insurance Board in excess of  the amount  appropriated not sooner
than 30 days after notification in writing of the  necessity therefor
is
provided to the chairpersons of the fiscal committees and the
Chairperson  of the Joint Legislative  Budget Committee, or not
sooner than whatever lesser time the   chairperson of the committee,
or  his or her designee, may in each instance determine.

4280-001-0957--For support of Managed Risk Medical Insurance
Board,  for payment to Item  4280-001-0313, payable from the
Voluntary Alliance Uniting Employers  Fund  . . . 345,000

Provisions:

1. Provision 1 of Item 4280-001-0313 also applies to this item.

4280-111-0232--For transfer by the State Controller to the Perinatal
Insurance Fund from the  Hospital Services Account, Cigarette and
Tobacco Products Surtax Fund,  for the implementation  of Part 6.3
(commencing with Section 12695) of Division 2 of the  Insurance
Code  . . .  (19,665,000)

4280-111-0233--For transfer by the State Controller to the Perinatal
Insurance Fund from the  Physician Services Account, Cigarette and
Tobacco Products Surtax Fund,  for the implementation  of Part 6.3
(commencing with Section 12695) of Division 2 of the  Insurance
Code  . . .  (12,160,000)

4280-111-0236--For transfer by the State Controller to the Perinatal
Insurance Fund from the  Unallocated Account, Cigarette and
Tobacco Products Surtax Fund, for  the implementation of  Part 6.3
(commencing with Section 12695) of Division 2 of the Insurance
Code  . . . (12,675,000)

  4280-112-0233--For transfer by the State Controller to the Major
Risk  Medical Insurance Fund  from the Physician Services Account,
Cigarette and Tobacco Products  Surtax Fund, for the
implementation of Part 6.5 (commencing with Section 12700) of
Division 2  of the Insurance Code   . . . (4,033,000)

4280-112-0236--For transfer by the State Controller to the Major
Risk  Medical Insurance Fund  from the Unallocated Account,
Cigarette and Tobacco Products Surtax  Fund, for the
implementation of Part 6.5 (commencing with Section 12700) of
Division 2  of the Insurance Code   . . . (5,967,000)

4300-001-0001--For support of Department of Developmental
Services  . .  . 23,028,000

Schedule:

(a) 10-Community Services Program  . . . 13,941,000

(b) 20-Developmental Centers Program  . . . 13,249,000

(c) 35.01-Administration  . . . 16,269,000

(d) 35.02-Distributed Administration  . . . -16,269,000

(e) Reimbursements  . . . -2,171,000

(f) Amount payable from the Developmental Disabilities Program
Development Fund (Item  4300-001-0172)  . . . -233,000

(g) Amount payable from the Federal Trust Fund (Item
4300-001-0890)  . .  . -1,758,000

4300-001-0172--For support of Department of Developmental
Services,  for payment to Item  4300-001-0001, payable from the
Developmental Disabilities Program  Development Fund  . . .
233,000

4300-001-0890--For support of Department of Developmental
Services,  for payment to Item  4300-001-0001, payable from the
Federal Trust Fund  . . . 1,758,000

Provisions:

1. Upon order of the Director of Finance, the State Controller shall
transfer  such funds as are  necessary between this item and Item
4300-101-0890 in order to effectively  administer the Early
Intervention Program (Part H of the Individuals with Disabilities
Education  Act).

4300-003-0001--For support of Department of Developmental
Services,  for Developmental  Centers  . . . 20,196,000

Schedule:

(a) 20-Developmental Centers Program  . . . 424,219,000

(b) Reimbursements  . . . -402,963,000

(c) Amount payable from the Lottery Education Fund (Item
4300-003-0814)  . . . -337,000

(d) Amount payable from the Federal Trust Fund (Item
4300-003-0890)  . .  . -723,000

Provisions:



1. The General Fund shall make a loan available to the State
Department of  Developmental  Services not to exceed a cumulative
total of $130,000,000. The loan funds  will be transferred to  this
item as needed to meet cash-flow needs due to delays in collecting
reimbursements from the  Health Care Deposit Fund, and subject to
the repayment provisions of  Section 16351 of the  Government
Code.

2. Of the amount appropriated in Schedule (a), $888,400 is provided
for  payment of energy  service contracts as required in connection
with issuance of Public Works  Board Energy  Efficiency Revenue
Bonds (State Pool Program), Series 1986 A.

3. To the extent that the State Department of Developmental
Services is  eligible to receive  additional Title XIX Medi-Cal
reimbursements as a result of population  increases in the
developmental centers, the department is authorized to expend those
reimbursements for the care  of the additional clients upon approval
of the Director of Finance.

4. Upon order of the Director of Finance, the Controller shall
transfer
such  funds as are necessary  between this item and Items
4300-101-0001 and 4440-011-0001. Within  10 working days after
approval of a transfer as authorized by this provision, the
Department
of  Finance shall notify the  chairperson of the fiscal committee of
each house of the Legislature of the  transfer, including the  amount

transferred, how the amount was determined, and how the amount
will be utilized.

5. The State Department of Developmental Services (DDS) shall
notify the  chairperson of the  fiscal committee of each house of the

Legislature, the Senate Special  Committee on  Developmental
Disabilities and Mental Health, and the Senate Health and  Human
Services  Committee of specific outcomes resulting from citations
and the results of  annual surveys  conducted by the State
Department of Health Services as well as findings  of any other
government agency authorized to conduct investigations or surveys
of state  developmental  centers. DDS shall forward the
notifications,
including a copy of the  specific findings, to the  chairpersons of
the
respective committees within 10 working days of its  receipt of these

findings.  DDS also shall forward these findings, within three
working days of  submission, to the  appropriate investigating
agency. In addition, DDS shall provide  notification to the
above-mentioned committee chairs, within three working days, of its
receipt of information  concerning any investigation initiated by the

United States Department of  Justice and the private  nonprofit
corporation designated by the Governor pursuant to Division 4.7
(commencing with  Section 4900) of the Welfare and Institutions
Code or concerning any  findings or  recommendations resulting
from any of these investigations.

4300-003-0814--For support of Department of Developmental
Services,  for payment to Item  4300-003-0001, payable from the
California State Lottery Education Fund   . . . 337,000

Provisions:

1. All funds received pursuant to Proposition 37 that are allocable
to
the  Department of  Developmental Services pursuant to Section
8880.5 of the Government  Code, and that are in  excess of the
amount appropriated in this item, are hereby appropriated in
augmentation of this  item. These additional funds may be expended
only upon written approval  of the Director of  Finance.

4300-003-0890--For support of Department of Developmental
Services,  for payment to Item  4300-003-0001, payable from the
Federal Trust Fund  . . . 723,000

4300-004-0001--For support of Department of Developmental
Services  (Proposition 98), for  Developmental Centers  . . .
13,181,000

Schedule:

(a) 20-Developmental Centers Program  . . . 18,168,000

(1) 20.17-AB 1202 Contracts  . . . 7,311,000

(2) 20.66-Medi-Cal Eligible Education Services  . . . 10,857,000


(b) Reimbursements  . . . -4,987,000

Provisions:

1. Of the amount appropriated in this item, $4,987,000 is to be used
to  provide the General Fund  match for Medi-Cal Eligible Education
Services.

4300-101-0001--For local assistance, Department of Developmental
Services, for Regional  Centers  . . . 492,831,000

Schedule:

10.10-Regional Centers

(a) 10.10.010-Operations  . . . 210,633,000

(b) 10.10.020-Purchase of Services  . . . 923,772,000

(c) 10.10.060-Early Intervention Programs--Other Agency Costs  . . .
20,050,000

(d) 10.20.010-Program Development  . . . 1,108,000

(e) Reimbursements  . . . -617,341,000

(f) Amount payable from Developmental Disabilities Program
Development  Fund (Item  4300-101-0172)  . . . -1,900,000

(g) Amount payable from Developmental Disabilities Services
Account  (Item 4300-101-0496)  . .  . -30,000

(h) Amount payable from Federal Trust Fund (Item 4300-1010890)  .
. .  -43,461,000

Provisions:

1. Upon order of the Director of Finance, the Controller shall
transfer
such  funds as are necessary  between this item and Item
4300-003-0001. The Director of Finance may  authorize the transfer
of  funds between this item and Item 4260-101-0001 for the state's
share of  expenditures for  developmental services provided to
persons eligible under the California  Medical Assistance  Program.



2. Any funds available from cost-of-living adjustments in the
Supplemental  Security Income/State  Supplementary Program
(SSI/SSP)  shall be used to offset General Fund  costs for
residential
care  services.

3. A loan shall be made available from the General Fund to the
Department  of Developmental  Services (DDS) not to exceed a
cumulative total of $110,000,000. The  loan funds shall be
transferred to this item as needed to meet cash-flow needs due to
delays in  collecting  reimbursements from the Health Care Deposit
Fund, and are subject to the  repayment provisions  of Section 16351
of the Government Code.

4. Upon order of the Director of Finance, the Controller shall
transfer
such  funds as are necessary  between this item and Item
5160-001-0001 to provide for the  transportation costs to and from
work activity programs of clients who are receiving vocational
rehabilitation services through the  Vocational Rehabilitation/Work
Activity Program (VR/WAP) Transition  program.

5. Upon order of the Director of Finance, in order to more
effectively
meet  client service needs,  the Controller shall transfer the
General
Fund share of program costs as  necessary between this  item and
Item 5160-001-0001 and Item 5160-101-0001 to provide for the  net
transfer of clients  between the Department of Developmental
Services and the Department of  Rehabilitation for the  following:


(a) The conversion of regional center day programs to work activity
or  supported employment  programs.

(b) The transfer between day programs and VR/WAP or VR/SEP.

(c) Clients originating from subdivision (b) of this provision who
transfer to  a work activity or a  supported employment program
upon closure from VR.



  The transfer of funds shall be accomplished through a budget
revision, on  a quarterly basis, in  the fiscal year in which  the
clients
initially transferred from the regional  center day programs.

4300-101-0172--For local assistance, Department of Developmental
Services, for payment to  Item 4300-101-0001, payable from the
Developmental Disabilities Program  Development Fund  .  . .
1,900,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance may  authorize  expenditures for the Department of
Developmental Services in excess of  the amount appropriated  no
sooner than 30 days after notification in writing of the chairperson
of
the fiscal committees and  the Chairperson of the Joint Legislative
Budget Committee, or no sooner  than such lesser time as  the
chairperson of the committee,  or his or her designee, may in each
instance determine.



4300-101-0496--For local assistance, Department of Developmental
Services, for payment to  Item 4300-101-0001, payable from the
Developmental Disabilities Service  Account  . . . 30,000

4300-101-0890--For local assistance, Department of Developmental
Services, for Regional  Centers, for payment to Item 4300-101-0001,
payable from Federal Trust  Fund  . . . 43,461,000

Provisions:

1. Upon order of the Director of Finance, the Controller shall
transfer
such  funds as are necessary  between this item and Item
4300-001-0890 in order to effectively  administer the Early
Intervention Program (Part H of the Individuals with Disabilities
Education  Act).

2. It is the intent of the Legislature that family resource centers
may
operate through a variety of  organizations within their local
communities.

3. The Department of Developmental Services, through coordination
with  the regional center,  shall ensure local interagency
coordination
and collaboration in the  provision of early intervention  services,
including local training activities, child find activities, public
awareness, and the family  resource center activities.

4300-295-0001--For local assistance, Department of Developmental
Services, for reimbursement,  in accordance with the provisions of
Section 6 of Article XIII B of the  California Constitution or  of
Section 17561 of the Government Code, of the costs of any new
program or increased level of  service of an existing program
mandated by statute or executive order,  State Controller  . . .
443,000

Schedule:

(1) 98.01.064.480--Judicial Proceedings (Ch. 644, Stats. 1980)  . . .

70,000

  (2) 98.01.069.475--Attorney Fees (Ch. 694, Stats. 1975)  . . .
180,000

(3) 98.01.125.380--MR Representation (Ch. 1253, Stats. 1980)  . . .
101,000

(4) 98.01.130.480--Conservatorship (Ch. 1304, Stats. 1980)  . . .
92,000

(5) 98.01.135.776--Guardianship/Conservatorship filings (Ch. 1357,
Stats.  1976)  . . . 0

Provisions:

1. Except as provided in Provision 2 below, allocations of funds
provided  in this item to the  appropriate local entities shall be
made
by the Controller in accordance  with the provisions of  each statute

or executive order that mandates the reimbursement of the  costs,
and shall be audited  to verify the actual amount of the mandated
costs in accordance with  subdivision (d) of Section  17561 of the
Government Code. Audit adjustments to prior year claims  may be
paid from this  item. Funds appropriated in this item may be used to
provide  reimbursement pursuant to Article 5  (commencing with
Section 17615) of Chapter 4 of Part 7 of Division 4 of  Title 2 of
the
Government Code.

2. Pursuant to Section 17581 of the Government Code, mandates
identified  in the appropriation  schedule of this item with an
appropriation of $0 and included in the  language of this provision
are  specifically identified by the Legislature for suspension during

the 1997-98  fiscal year:

(a) Guardianship/Conservatorship filings, (Ch. 1357, Stats. 1976)


3. If any of the scheduled amounts are insufficient to provide full
reimbursement of costs, the  Controller may, upon notifying the
Director of Finance in writing, augment  those deficient  amounts
from the unencumbered balance of any other scheduled amounts
therein. No order may  be issued pursuant to this provision unless
written notification of the  necessity therefor is provided  to the
chairperson of the committee in each house that considers
appropriations and the  Chairperson of the Joint Legislative Budget
Committee or his or her  designee.

4300-301-0001--For capital outlay, Department of Developmental
Services   . . . 1,926,000

Schedule:

(1) 55.55.300--Sonoma: Reinforce Main Kitchen Floor-Preliminary
plans,  working drawings, and  construction  . . . 400,000

(2) 55.50.310-Porterville: Air Condition Main Kitchen-Preliminary
plans  and working drawings  .  . . 139,000

(3) 55.10.300-Minor Capital Outlay  . . . 1,387,000

4300-490--Reappropriation, Department of Developmental Services.
Notwithstanding any other  provision of law, as of June 30, 1997, the

unencumbered balances of the  appropriations provided  in the
following citations are reappropriated for the purposes specified and

shall be available for  encumbrance and expenditure until June 30,
1998.

001--General Fund:

(1) Item 4300-101-001 (a) 10.10.010 and (b) 10.10.020, Budget Act
of  1996, for regional  centers. One-half of the savings generated by

regional centers operating  under performance-based  contracts shall
be reappropriated for one-time expenditures that are  approved by
the Department  of Developmental Services.

4440-001-0001--For support of Department of Mental Health  . . .
21,750,000

Schedule:

(a) 10-Community Services  . . . 24,090,000

(b) 20-Long-Term Care Services  . . . 8,156,000

(c) 35.01-Departmental Administration  . . . 12,953,000

(d) 35.02-Distributed Departmental Administration  . . . -12,953,000



(e) Reimbursements  . . . -8,417,000

(f) Amount payable from the Federal Trust Fund (Item
4440-001-0890)  . .  . -2,079,000

Provisions:

1. Upon order of the Director of Finance, and following 30-day
notification to the Joint  Legislative Budget Committee, the
Controller shall transfer between this  item and Item  4440-016-0001
those funds that are necessary for direct community  services, as
well
as  administrative and ancillary services related to the provision of

direct  services.

2. Of the funds appropriated for support of the Sexually Violent
Predator  program, any funds in  excess of the amount needed for the
program shall revert to the General  Fund unless the  expenditure of
those funds is approved by the Department of Finance.  Approval of
the  Department of Finance may not be effective sooner than 30 days
after  notification to the Joint  Legislative Budget Committee.

3. If the federal funds appropriated for support of the Department of

Mental Health/Department  of Rehabilitation Cooperative Program
are not made available to the state,  the positions  authorized to
support this program shall be eliminated.

4440-001-0890--For support of Department of Mental Health, for
payment  to Item  4440-001-0001, payable from the Federal Trust
Fund  . . . 2,079,000

Provisions:

1. Upon order of the Department of Finance, the State Controller
shall  transfer such funds as are  necessary between this item and
Item 4440-101-0890.

4440-011-0001--For support of the State Hospitals, Department of
Mental  Health  . . .  243,872,000

Schedule:

(a) 20.10-Lanterman-Petris-Short Act  . . . 139,648,000

(b) 20.20-Penal Code and Judicially Committed  . . . 243,872,000


(c) 20.30-Other State Hospital Services  . . . 68,781,000

(d) Reimbursements  . . . -208,201,000

(e) Amount payable from the California State Lottery Education
Fund  (Item 4440-011-0814)  . . .  -228,000

Provisions:

1. The funds appropriated by this item are for support of the
hospitals for  mentally ill judicially  committed patients, patients
committed pursuant to the Penal Code, or  patients committed
pursuant to the Lanterman-Petris-Short (LPS) Act.

2. Upon order of the Director of Finance, the Controller shall
transfer
such  funds as are necessary  between this item and Items
4300-003-0001, 4300-004-0001,  5240-001-0001, and
5460-001-0001.

3. Upon order of the Director of Finance, and following 30-day
notification  to the Joint  Legislative Budget Committee, the State
Controller shall transfer between  this item and Item  4440-016-0001
those funds that are necessary for direct community  services, as
well
as  administrative and ancillary services related to the provision of

direct  services.

4. Upon approval of the Department of Mental Health, a portion of
the  funds appropriated in  Schedule (b) shall be available to
reimburse counties for the cost of  treatment and legal services to
patients in the four Department of Mental Health State Hospitals,
pursuant  to Section 4117 of the  Welfare and Institutions Code.
Expenditures made under this item shall be  charged to either the
fiscal year in which the claim is received or the fiscal year in
which
the  Controller issues the  warrant. Claims filed by local
jurisdictions
for legal services may be  scheduled by the Controller  for payment.



5. The reimbursements identified in Schedule (d) of this item shall
include  amounts received by  the Department of Mental Health as a
result of billing for LPS state  hospital bed day expenditures
attributable to conservatees who are gravely disabled as defined in
subparagraph (B) of paragraph  (1) of subdivision (h) of Section
5008 of the Welfare and Institutions Code  (Murphy  Conservatee).


6. Of the total amount attributable in the 1997-98 fiscal year to
patient-generated collections for  LPS patients, a total of
$8,000,000
shall be transferred as revenue to the  General Fund, and the
remainder shall be used to offset county costs for LPS state hospital

beds.

7. Of the funds appropriated for the Sexually Violent Predator
program,  any funds in excess of the  amount needed for the program
shall revert to the General Fund unless the  expenditure of those
funds is approved by the Department of Finance. Approval of the
Department of Finance may not  be effective sooner than 30 days
after notification to the Joint Legislative  Budget Committee.

4440-011-0814--For support of the Department of Mental Health,
for  payment to Item  4440-011-0001, payable from the California
State Lottery Education Fund   . . . 228,000

Provisions:

1. All funds received pursuant to Proposition 37 that are allocable
to
the  Department of Mental  Health pursuant to Section 8880.5 of the
Government Code, and that are in  excess of the amount
appropriated in this item, are appropriated in augmentation of this
item.  These additional funds  may be expended only upon written
approval of the Director of Finance.

4440-012-0001--For support of the State Hospitals (Proposition 98),
Department of Mental  Health  . . . 3,400,000

Schedule:

(a) 20.10-Long-term Care Services-Lanterman-Petris-Short  . . .
3,400,000

  (b) 20.30-Other State Hospital Services  . . . 367,000

(c) Reimbursements  . . . -367,000

Provisions:

1. The funds appropriated by this item are available to contract for
the  provision of education  services for mental health patients on
state hospital grounds.

4440-016-0001--For support, Department of Mental Health, for
Conditional Release Services  . .  . 15,353,000

Schedule:

(a) 20-Long-Term Care Services  . . . 15,353,000

Provisions:

1. The funds appropriated by this item shall be used to provide
community  services as provided in  Section 4360 of the Welfare and
Institutions Code. These funds shall  support direct community
services, as well as administrative and ancillary services related to
the
                               provision of direct services.



2. Upon order of the Director of Finance, and following 30-day
notification  to the Joint  Legislative Budget Committee, the State
Controller shall transfer between  this item and Items
4440-001-0001 and 4440-011-0001 those funds that are necessary
for  direct community services,  as well as administrative and
ancillary services related to the provision of  direct services.


3. The Department of Mental Health shall provide forensic
conditional  release services mandated  either in Title 15
(commencing with Section 1600) of Part 2 or in Title 15
(commencing with  Section 2960) of Article 3 of the Penal Code,
through contracts with  programs which integrate  the supervision
and treatment roles and providers selected consistent with  Section
1615 of the  Penal Code.

4. Of the funds appropriated by this item, it is intended that no
funds
shall  be available for the  payment of treatment services to persons

on court visit from state hospitals  to the community as  designated
in
subdivision (a) of Section 4117 of the Welfare and  Institutions
Code.

4440-101-0001--For local assistance, Department of Mental Health  .
. .  37,756,000

Schedule:

(a) 10.25-Community Services-Other Treatment  . . . 383,898,000

(b) 10.40-Adult System of Care  . . . 7,772,000

(c) 10.47-Children's mental health services  . . . 23,754,000

(d) 10.85-AIDS  . . . 1,500,000

(e) Reimbursements  . . . -379,168,000

Provisions:

1. Augmentations to reimbursements in this item from the Office of
Emergency Services for  Disaster Relief are exempt from Section
28.00 of this act. The State  Department of Mental Health  shall
provide written notification to the Joint Legislative Budget
Committee  describing the nature  and planned expenditure of these
augmentations when the amount received  exceeds $200,000.

2. It is the intent of the Legislature that local expenditures for
mental
health  services for Medi-Cal  eligible individuals serve as the
match
to draw down maximum federal  financial participation to  continue
the Short-Doyle/Medi-Cal program.

3. The funds appropriated in Schedule (b) are for allocation to those

counties which had Adult  System of Care programs funded pursuant
to Chapter 982 of the Statutes  of 1988, and may not  be used for
any other purpose unless approved by the Director of Finance  and
following 30-day  notification to the Joint Legislative Budget
Committee.

4440-101-0311--For local assistance, Department of Mental Health,
all  funds that are transferred  into the Traumatic Brain Injury Fund

pursuant to subdivision (f) of Section  1464 of the Penal  Code  . .
.
500,000

Schedule:

(a) 10.87-Community Services--Traumatic Brain Injury Projects  . . .
900,000

(b) Reimbursements  . . . -400,000

4440-101-0890--For local assistance, Department of Mental Health,
payable from the Federal  Trust Fund  . . . 37,019,000

Schedule:

(a) 10.25-Community Services-- other treatment  . . . 22,861,000


(b) 10.47-Children's Mental Health Services  . . . 12,511,000

(c) 10.75-Homeless Mentally Dis-abled  . . . 1,647,000

Provisions:

1. The funds appropriated by this item are for assistance to local
agencies  in the establishment and  operation of mental health
services, in accordance with Division 5  (commencing with Section
5000) of the Welfare and Institutions Code.

2. Notwithstanding any other provision of law, funds appropriated in
Item  4440-101-0890 of the  Budget Act of 1996 for rollover by the
counties in the 1997-98 fiscal year  shall be used only for  the
specified purposes for which they were allocated, subject to review
and  approval of the  Department of Mental Health.

3. The Department of Mental Health may authorize advance
payments of  federal grant funds on a  monthly basis to the counties
for grantees. These advance payments may  not exceed one-twelfth
of Section 2.00 of the individual grant award for the 1997-98 fiscal
year.

4. Upon order of the Department of Finance, the Controller shall
transfer  such funds as are  necessary between this item and Item
4440-001-0890.

5. Upon order of the Department of Finance, the Controller shall
transfer  such funds as are  necessary between Schedule (a) and
Schedule (b) to meet federal  requirements.

4440-102-0001--For local assistance, Department of Mental Health
(Proposition 98) for early  mental health services  . . . 15,000,000


4440-103-0001--For local assistance, Department of Mental Health,
Program 10.25-Community  Services: Other Treatment for Mental
Health Managed Care  . . .  166,930,000

Provisions:

1. The allocation of funds appropriated by this item shall be
determined  based on a methodology  developed by the Department
of Mental Health in consultation with a  statewide organization
representing counties. This methodology shall be based on a review
of  actual and projected  expenditures for mental health services for

Medi-Cal beneficiaries, by  county.

2. Of the amount appropriated by this item, a total of $8,000,000
will
be  transferred to the Mental  Health Managed Care Deposit Fund
(Fund 0865).

3. Upon order of the Director of Finance and agreement between the
Department of Mental  Health and the Department of Health
Services, the State Controller shall  transfer between this  item and

Item 4260-101-0001 any General Fund amount determined
necessary to fully reflect the  transfer of responsibility for
administration of mental health services  pursuant to the
implementation of mental health managed care, including any
adjustments  that may be necessary  to implement the San Mateo
field test.

4. Notwithstanding any other provision of law, the emergency
regulations  developed pursuant to  Section 14680 of the Welfare
and Institutions Code to implement Part 2.5  (commencing with
Section 5775) of Division 5 of the Welfare and Institutions Code
shall  remain in effect until July  1, 1998, or until the regulations
are
made permanent, whichever occurs  first, and shall not be  subject to

the repeal provisions of Section 11346.1 of the Government  Code
until that time.

5. The Department of Mental Health may adopt emergency
regulations to  implement the second  phase of Mental Health
Managed Care as provided in Part 2.5  (commencing with Section
5775)  of Division 5 of the Welfare and Institution Code 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. The adoption of emergency regulations
that are  filed with the Office of  Administrative Law within one
year
of the date on which the act that added  this provision took  effect,

shall be deemed to be an emergency and necessary for the immediate
preservation of the  public peace, health and safety or general
welfare.

6. Of the funds appropriated by this item, $2,596,000 is included to
maintain the average cost per  beneficiary by aid code for those
beneficiaries transferring from Prepaid  Health Plans and will not
be
allocated to the counties until each of the Prepaid Health Plan
transfers  are completed.

4440-111-0001--For local assistance, Department of Mental Health,
for  caregiver resource  centers serving families of brain-damaged
adults  . . . 5,247,000

4440-131-0001--For local assistance, Department of Mental Health,
for  services to special  education pupils  . . . 12,334,000

Provisions:

1. In allocating to the counties funds for mental health services to
pupils  who are specified in  accordance with Chapter 26.5
(commencing with Section 7570) of  Division 7 of Title 1 of the
Government Code and the Individuals with Disabilities Education
Act  Section 602(a)  Amendments of 1990, as defined in Section
300.5 of Title 34 of the Code  of Federal Regulations,  and who meet
the requirements of Section 56026 of the Education Code  and
Sections 3030 and  3031 of Title 5 of the California Code of
Regulations, the Department of  Mental Health may  allocate the
funds based on the individual county's needs, in lieu of using  the
allocation method set  forth in Welfare and Institutions Code Section

5701.

4440-295-0001--For local assistance, Department of Mental Health,
for  reimbursement, in  accordance with the provision of Section 6 of

Article XIII B of the  California Constitution or of  Section 17561
of
the Government Code, or the costs of any new program  or increased
level of  service of an existing program mandated by statute or
executive order,  State Controller  . . .  23,041,000

Schedule:

(1) 98.01.049.877--Coroner's Costs (Ch. 498, Stats. 1977)  . . .
100,000

(2) 98.01.081.579--Short-Doyle Case Management (Ch. 815, Stats.
1979)   . . . 0

(3) 98.01.103.678--Mentally Disordered Offender Recommitments
(Ch.  1036, Stats. 1978)  . . .  176,000

(4) 98.01.111.479--Not Guilty By Reason of Insanity (Ch. 1114,
Stats.  1979)  . . . 277,000

(5) 98.01.132.784--Short-Doyle Audits (Ch. 1327, Stats. 1984)  . . .

0

(6) 98.01.135.285--Residential Care Services (Ch. 1352, Stats. 1985)
. . .  0

(7) 98.01.174.784--Services to Handicapped Students (Ch. 1747,
Stats.  1984)  . . . 22,488,000

Provisions:

1. Allocations of funds appropriated by this item to the appropriate
local  entities shall be made by  the State Controller in accordance
with the provisions of each statute or  executive order that
mandates
the reimbursement of the costs, and shall be audited to verify the
actual amount of the  mandated costs in accordance with subdivision
(d) of Section 17561 of the  Government Code.  Audit adjustments
to prior year claims may be paid from this item. Funds  appropriated
by this  item may be used to provide reimbursement pursuant to
Article 5  (commencing with Section  17615) of Chapter 4 of Part 7
of Division 4 of Title 2 of the Government  Code.

2. If any of the scheduled amounts are insufficient to provide full
reimbursement of costs, the  State Controller may, upon notifying the

Director of Finance in writing,  augment those deficient  amounts
from the unencumbered balance of any other scheduled amount
therein. No order may be  issued pursuant to this provision unless
written notification of the necessity  therefor is provided to  the
chairperson of the committee in each house that considers
appropriations and  the Chairperson  of the Joint Legislative Budget
Committee or his or her designee.

3. Pursuant to Section 17581 of the Government Code, mandates
identified  in the appropriation  schedule of this item with an
appropriation of $0 and included in the  language of this provision
are  specifically identified by the Legislature for suspension during

the 1996-97  fiscal year:

(a) Short-Doyle Case Management (Ch. 815, Stats. 1979)

(b) Short-Doyle Audits (Ch.1327, Stats. 1984)

(c) Residential Care Services (Ch. 1352, Stats. 1985)

4440-301-0001--For capital outlay, Department of Mental Health  . .
.  6,727,000

Schedule:

(1) 55.10.205-Minor Projects  . . . 1,181,000

(2) 55.40.260-Napa: Fire Protection System-Phase III-Construction
. . .  1,449,000

(3) 55.40.265-Napa: Perimeter Security Fencing-Preliminary plans
and  working drawings  . . .  472,000

(4) 55.40.270-Napa: Improve Domestic Water System-Preliminary
plans,  working drawings and  construction  . . . 867,000

(5) 55.45.255-Patton: Fire and Life Safety and Environmental
Improvements, EB  Building-Preliminary plans  . . . 179,000

(6) 55.45.260-Patton: Upgrade High Voltage System-Preliminary
plans,  working drawings and  construction  . . . 2,579,000

4700-001-0001--For support of Department of Community Services
and  Development, for the  California Mentor Program  . . . 175,000



Schedule:

(a) 40-Community Services  . . . 175,000

4700-001-0890--For support of Department of Community Services
and  Development, payable  from the Federal Trust Fund   . . .
11,723,000

Schedule:

(a) 20--Energy Programs  . . . 10,386,000

(b) 40--Community Services  . . . 2,408,000

(c) 50.01--Administration  . . . 2,906,000

(d)

50.02--Distributed Administration  . . . -2,906,000

(e) Reimbursements  . . . -1,071,000

Provisions:

1. On a federal fiscal year basis, the Department of Community
Services  and Development shall  make the following program
allocation for the community services block  grant, as a percentage
of
the total block grant:

(a) Administration#lf;.#  5 percent

The department shall provide the Controller with the dollar value of
this  allocation limit, as it  relates to the appropriation in this
item, at
the beginning of the state fiscal  year, and shall update  this
information whenever necessary to reflect federal revisions to the
grant.



2. Notwithstanding subdivision (a) of Section 16367.5 of the
Government  Code, the Department  of Community Services and
Development may expend up to 7.5 percent of  the federal Low
Income Home Energy Assistance Program (LIHEAP) block grant for
state  administrative costs,  adjusted for any allocations made by
the
Department of Finance for  employee compensation and  price
increases. In no event shall the department's state administrative
costs
for LIHEAP exceed  7.5 percent of the total LIHEAP grant,
inclusive of funding provided from  the Petroleum  Violation Escrow
Account.

3. Any federal carryover funds from Item 4700-001-0890, Budget
Act of  1996, shall be in  augmentation of Item 4700-001-0890 of
this Act and not subject to the  provisions of Section  28.00.

4700-101-0001--For local assistance, Department of Community
Services  and Development, for  the California Mentor Program  . . .

4,825,000

Schedule:

(a) 40-Community Services  . . . 4,825,000

4700-101-0890--For local assistance, Department of Community
Services  and Development, for  assistance to individuals and
payments to service providers, payable from  the Federal Trust Fund
. . . 96,421,000

Schedule:

(a) 20-Energy Programs  . . . 50,851,000

(b) 40-Community Services  . . . 45,570,000

Provisions:

1. On a federal fiscal year basis, the department shall make the
following  program allocations for   the community services block
grant as a percentage of the total block  grant:  #u8#(a)
Discretionary

5 percent  #u8#(b) Migrant and seasonal farm workers

10 percent  #u8#(c) Native American Indian

programs

3.9 percent



(d) Community action agencies and rural community services  . . .
76.1  percent

  All grantees under the community services block grant program
shall be  subject to standard state  contracting procedures required
under the program.

2. The department shall provide the State Controller with the dollar
value  of these allocation  limits, as they relate to the
appropriation in
this item, at the beginning of  the fiscal year, and shall  update
this
information whenever necessary to reflect federal revisions to  the
grant.

3. Funds collected by the department from energy contractors as a
result of  overpayments shall be  used for local assistance for
energy
programs, and funds collected from  community service block  grant
(CSBG) contractors as a result of overpayments shall be used for
local assistance for CSBG  programs in fiscal year 1997-98.

4. Funds scheduled in Item 4700-101-0890 may be transferred to
Item  4700-001-0890 for the  administration of the Low Income
Home Energy Assistance Programs,  subject to approval of the
Department of Finance.

5. Any federal carryover funds from Item 4700-101-0890, Budget
Act of  1996, shall be in  augmentation of Item 4700-101-0890 of
this Act and not subject to the  provisions of Section  28.00.

5100-001-0001--For support of Employment Development
Department,  for payment to Item  5100-001-0870  . . . 23,622,000


5100-001-0184--For support of Employment Development
Department,  for payment to Item  5100-001-0870, payable from the
Employment Development Department  Benefit Audit Fund  . . .
12,274,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the  assessment of fines   and penalties imposed as specified in

Chapter 654 of the Statutes of 1995.

5100-001-0185--For support of Employment Development
Department,  for payment to Item  5100-001-0870, payable from the
Employment Development Contingent  Fund  . . . 35,588,000

Provisions:

1. Funds appropriated in this item are in lieu of the amounts that
otherwise  would have been  appropriated for administration
pursuant to Section 1586 of the  Unemployment Insurance Code.

2. Notwithstanding the provisions of Item 9840-001-0494, the
Director of  Finance may authorize  the creation of deficiencies
pursuant to Section  11006 of the Government  Code for the
purposes  of this item.

3. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

5100-001-0514--For support of Employment Development
Department,  for payment to Item  5100-001-0870, payable from the
Employment Training Fund  . . .  62,352,000

Provisions:



1. Notwithstanding subdivision (a) of Section 2.00 of this act, funds

disencumbered from  Employment Training Fund training contracts
during the 1997-98 fiscal  year are hereby  appropriated for transfer

to, and in augmentation of, this item for allocation  by the
Employment  Training Panel for training contracts. The Employment
Development  Department shall notify the  Legislature by September
1, 1998, of the actual amount of funds  appropriated pursuant to this

provision.

2. Any funds appropriated for the Employment Development
Department,  State-Local  Cooperative Labor Market Information
Program, if not expended by June  30, 1998, shall be made  available
to the Employment Training Fund for purposes of funding job
training contracts.

3. Of the funds appropriated by this item, at least $10,000,000 shall

be used  for training activities  for small businesses or consortia
of
small businesses. For purposes of this  provision, "small  business"
means a business that employs fewer than 100 persons. In  addition,
the Employment  Training Panel shall dedicate administrative support
for the purpose of  reaching out to, and  assisting, small
businesses,
or consortia of small businesses, in accessing  the panel's training
contract funds.

5100-001-0588--For support of Employment Development
Department,  for payment to Item  5100-001-0870, payable from the
Unemployment Compensation Disability  Fund  . . . 139,503,000

  Provisions:

1. The Employment Development Department shall submit on
October 1,  1997, and April 20,  1998, to the Department of Finance
for its review and approval, an  estimate of expenditures for  both
the
current and budget years, including the assumptions and  calculations

underlying  Employment Development Department projections for
support  expenditures from this item. The  Department of Finance
shall approve, or modify, the assumptions  underlying all estimates
within  15 working days of the due date. If the Department of
Finance does not  approve or modify in  writing, the assumptions
underlying all estimates within 15 working days of  the due date, the

Employment Development Department shall consider the
assumptions and  calculations approved  as submitted. If the
Department of Finance determines that the estimate of  support
expenditures  differs from the amount appropriated by this item, the
Director of Finance  shall so report to the  Legislature. At the time

the report is made, the amount of this  appropriation shall be
adjusted
by  the difference between this Budget Act appropriation and the
approved  estimate of the  Department of Finance. Revisions for the
support of the Disability  Insurance program reported  pursuant to
this provision are not subject to Section 28.00 of this act.

2. Notwithstanding the provisions of Item 9840-001-0988, the
Director of  Finance may authorize  the creation of deficiencies
pursuant to Section 11006 of the Government  Code, for the
purposes  of this item.

5100-001-0869--For support of state programs under the Job
Training  Partnership Act,  Employment Development Department,
for Program 60--Job Training  Partnership, payable from  the
Consolidated Work Program Fund  . . . 117,532,000

Schedule:

(a) 60.11-Administrative Cost Pool  . . . 8,992,000

(b) 60.20-Incentive and Technical Assistance  . . . 8,658,000

(c) 60.30-Older Workers  . . . 7,488,000

(d) 60.40-Educational Linkages  . . . 13,814,000

(e) 60.60-Displaced Workers Program  . . . 77,847,000

(f) 60.65-Veterans  . . . 733,000

Provisions:

1. The funds appropriated in this item may be transferred to Item
5100-101-0869, upon the  approval of the Department of Finance,
when service delivery areas decide  to operate projects  under the
federal guidelines applicable to Adult and Youth Training  Programs.


2. Notwithstanding subdivision (a) of Section 2.00 of this act, funds

disencumbered from Job  Training Partnership Act subgrants during
the 1997-98 state fiscal year are  hereby appropriated  for transfer
to,
and in augmentation of, this item for allocation by the  Employment
Development  Department for Job Training Partnership Act
subgrants.

3. The Employment Development Department shall submit on
October 1,  1997, and April 20,  1998, to the Department of Finance
for its review and approval, an  estimate of federal grants and
expenditures for both current and budget years, including the
assumptions  and calculations  underlying the Employment
Development Department projections. The  Department of Finance
shall approve, or modify the assumptions underlying, all estimates
within  15 working days of the  due date. If the Department of
Finance does not approve or modify in  writing the assumptions
underlying all estimates within 15 working days of the due date, the
Employment Development  Department shall consider the
assumptions and calculations approved as  submitted. If the
Department of Finance determines that the estimate of federal grants
and  expenditures differs  from the amount appropriated by this item,

the Director of Finance shall so  report to the  Legislature. At the
time the report is made, the amount of this  appropriation shall be
adjusted by  the difference between this Budget Act appropriation
and the approved  estimate of the  Department of Finance. Revisions
reported pursuant to this provision are  not subject to Section
28.00
of this act.

5100-001-0870--For support of Employment Development
Department,  payable from the  Unemployment Administration
Fund--Federal  . . . 543,317,000

Schedule:

(a) 10-Employment and Employment Related Services  . . .
216,787,000

(b) 21-Tax Collection and Benefit Payments  . . . 513,602,000

(c) 22-California Unemployment Insurance Appeals Board  . . .
46,822,000

  (d) 30.01-General Administration  . . . 48,160,000

(e) 30.02-Distributed General Administration  . . . -43,964,000

(f) 50-Employment Training Panel  . . . 55,965,000

(g) Reimbursements  . . . -19,550,000

(h) Amount payable from the General Fund (Item 5100-001-0001)  .
. .  -23,622,000

(i) Amount payable from the Employment Development Department
Benefit Audit Fund (Item  5100-001-0184)  . . . -12,274,000

(j) Amount payable from the Employment Development Contingent
Fund  (Item 5100-001-0185)   . . . -35,588,000

(k) Amount payable from the Employment Training Fund (Item
5100-001-0514)  . . . -62,352,000

  (l) Amount payable from the Unemployment Compensation
Disability Fund  (Item  5100-001-0588)  . . . -139,503,000

(m) Amount payable from the School Employees Fund (Item
5100-001-0908)  . . . -766,000

(n) Amount payable from the Employment Development Contingent
Fund  (Sec. 1586, U.I.C.)  . .  . -400,000

Provisions:

1. Funds appropriated in this item are in lieu of the amounts that
otherwise  would have been  appropriated pursuant to Section 1555
of the Unemployment Insurance  Code.

2. The Employment Development Department (EDD) shall submit on
October 1, 1997, and April  20, 1998, to the Department of Finance
for its review and approval, an  estimate of expenditures  for both
current and budget years, including the assumptions and  calculations

underlying EDD  projections for support expenditures for the
Unemployment Insurance  program from this item.  The Department
of Finance shall approve, or modify, the assumptions  underlying all
estimates  within 15 working days of the due date. If the Department
of Finance does  not approve or modify  in writing the assumptions
underlying all estimates within 15 working days  of the due date,
EDD  shall consider the assumptions and calculations approved as
submitted. If  the Department of  Finance determines that the
estimate of support expenditures differs from  the amount
appropriated by this item, the Director of Finance shall so report to

the  Legislature. At the time  the report is made, the amount of this

appropriation shall be adjusted by the  difference between  this
appropriation and the Department of Finance approved estimate for
the  Unemployment  Insurance program. Revisions for the support of
the Unemployment  Insurance program that are  reported pursuant to
this provision are not subject to Section 28.00 of this  act.

5100-001-0908--For support of Employment Development
Department,  for payment to Item  5100-001-0870, payable from the
School Employees Fund  . . . 766,000

Provisions:

1. Notwithstanding the provisions of Item 9840-001-0988, the
Director of  Finance may authorize  the creation of deficiencies
pursuant to Section 11006 of the Government  Code, for the
purposes  of this item.

2. Funds appropriated in this item are in lieu of the amounts that
                                                            otherwise
  would have been  appropriated for administration
pursuant to Section 822 of the  Unemployment Insurance Code.

3. Provision 2 of Item 5100-001-0870 also applies to this item.

5100-011-0184--For support of the Employment Development
Department, the amount of the  unencumbered balance exceeding
$2,000,000 in the Employment  Development Department  Benefit
Audit Fund as of June 30, 1998, shall be transferred to the General
Fund.

5100-011-0185--For support of Employment Development
Department  payable from the  Employment Development
Contingent Fund. Notwithstanding any other  provision of law, the
State Controller shall transfer to the General Fund the amount, as
determined by the Director of  Finance, in the Employment
Development Contingent Fund as of June 30,  1998, that is in excess
of the $1,000,000 reserve required by Section 1590 of the
Unemployment  Insurance Code.

5100-011-0890--For support of Employment Development
Department,  payable from the Federal  Trust Fund, for transfer to
the Unemployment Administration Fund  . . .  (543,317,000)

5100-021-0890--For support of Employment Development
Department,  payable from the Federal  Trust Fund, for transfer to
the Consolidated Work Program Fund  . . .  (117,532,000)

5100-101-0588--For local assistance, Employment Development
Department, for Program  21--Tax Collections and Benefit
Payments, payable from the  Unemployment Compensation
Disability Fund  . . . 1,592,968,000

Provisions:

1. Notwithstanding Item 9840-001-0988, the Director of Finance
may  authorize the creation of  deficiencies pursuant to Section
11006 of the Government Code for the  purposes of this item.

2. Funds appropriated in this item are in lieu of the amounts that
otherwise  would have been  appropriated pursuant to Section 3012
of the Unemployment Insurance  Code.

3. The Employment Development Department shall submit on
October 1,  1997, and April 20,  1998, to the Department of Finance
for its review and approval, an  estimate of expenditures for  both
current and budget years, including the assumptions and calculations
underlying Employment  Development Department projections for
benefits payable from this item.  The Department of  Finance shall
approve, or modify the assumptions underlying, all estimates  within
15 working days  of the due date. If the Department of Finance does
not approve or modify  in writing the  assumptions underlying all
estimates within 15 working days of the due  date, the Employment
Development Department shall consider the assumptions and
calculations  approved as submitted.  If the Department of Finance
determines that the estimate of benefit  expenditures differs from
the
amount appropriated by this item, the Director of Finance shall so
report to  the Legislature. At  the time the report is made, the
amount
of this appropriation shall be  adjusted by the difference  between
this
Budget Act appropriation and the approved estimate of the
Department of Finance.  Revisions reported pursuant to this
provision are not subject to Section  28.00 of this act.

5100-101-0869--For local assistance under the Job Training
Partnership  Act, Employment  Development Department, for
Program 60-Job Training Partnership,  payable from the
Consolidated Work Program Fund  . . . 361,646,000

Schedule:

(a) 60.60-Displaced Workers Program  . . . 116,405,000

(b) 60.70-Adult and Youth Training Programs  . . . 134,099,000

(c) 60.80-Summer Youth Programs  . . . 111,142,000

Provisions:

1. Notwithstanding subdivision (a) of Section 2.00 of this act,
funds
disencumbered from Job  Training Partnership Act subgrants during
the 1997-98 fiscal year are  hereby appropriated for  transfer to and

in augmentation of this item for allocation by the  Employment
Development  Department for Job Training Partnership Act
subgrants.

2. The Employment Development Department shall submit on
October 1,  1997, and April 20,  1998, to the Department of Finance
for its review and approval, an  estimate of federal grants and
expenditures for both current and budget years, including the
assumptions  and calculations  underlying Employment Development
Department projections. The  Department of Finance shall  approve,
or modify the assumptions underlying, all estimates within 15
working days of the due  date. If the Department of Finance does not
approve or modify in writing  the assumptions  underlying all
estimates within 15 working days of the due date, the  Employment
Development  Department shall consider the assumptions and
calculations approved as  submitted. If the  Department of Finance
determines that the estimate of federal grants and  expenditures
differs  from the amount appropriated by this item, the Director of
Finance shall so  report to the  Legislature. At the time the report
is
made, the amount of this  appropriation shall be adjusted by  the
difference between this Budget Act appropriation and the approved
estimate of the  Department of Finance. Revisions reported pursuant
to this provision are  not subject to Section  28.00 of this act.


5100-101-0871--For local assistance, Employment Development
Department, for Program  21--Tax Collections and Benefit
Payments, payable from the Federal  Unemployment Fund  . . .
2,925,722,000

Provisions:

1. Funds appropriated in this item are in lieu of the amounts that
would  have otherwise been  appropriated pursuant to Section 1521
of the Unemployment Insurance  Code.

2. Provision 3 of Item 5100-101-0588 is also applicable to this item.



5100-101-0890--For local assistance, Employment Development
Department, payable from the  Federal Trust Fund, for transfer to the

Consolidated Work Program Fund  .  . . (361,646,000)

5100-101-0908--For local assistance, Employment Development
Department, for Program  21--Tax Collections and Benefit
Payments, payable from the School  Employees Fund  . . .
36,547,000

Provisions:

1. Notwithstanding Item 9840-001-0988, the Director of Finance
may  authorize the creation of  deficiencies pursuant to Section
11006 of the Government Code for the  purposes of this item.



2. Funds appropriated in this item are in lieu of the amounts that
otherwise  would have been  appropriated for benefits pursuant to
Section 822 of the Unemployment  Insurance Code.

3. Provision 3 of Item 5100-101-0588 also applies to this item.

5100-111-0890--For local assistance, Employment Development
Department, payable from the  Federal Trust Fund, for transfer to the

Federal Unemployment Fund (871)   . . . (2,925,722,000)

5160-001-0001--For support of Department of Rehabilitation  . . .
38,101,000

Schedule:

(a) 10-Vocational Rehabilitation Services  . . . 262,577,000

(b) 20-Habilitation Services  . . . 2,444,000

(c) 30-Support of Community Facilities  . . . 6,626,000

(d) 40.01-Administration  . . . 19,730,000

(e) 40.02-Distributed Administration  . . . -19,730,000

(f) Reimbursements  . . . -6,143,000

(g) Amount payable from the Federal Trust Fund (Item
5160-0010890)  . .  . -224,043,000

(h) Amount payable from the Special Deposit Fund--Vending Stands
Account, per Government  Code Section 16370  . . . -3,360,000

Provisions:

1. In order to participate in the County Mental Health Cooperative
Programs, a county shall  identify, in its joint proposal with a
local
office of the Department of  Rehabilitation, cash and  in-kind
resources it shall make available for prevocational and other
services
to supplement  vocational rehabilitation resources.

2. Upon order of the Director of Finance, the Controller shall
transfer
such  funds as are necessary  between this item and Item
4300-101-0001 to provide for the  transportation costs to and from
work activity programs of clients who are receiving vocational
rehabilitation services through the  Vocational Rehabilitation/Work
Activity Program (VR/WAP) Transition  program.

3. Upon order of the Director of Finance, in order to more
effectively
meet  client service needs,  the Controller shall transfer the
General
Fund share of program costs as  necessary between this  item and
Item 4300-101-0001 to provide for the net transfer of clients
between the State Depart   ment of Developmental Services and the
Department of Rehabilitation for  the following:

(a) The conversion of regional center day programs to work activity
or  supported employment  programs.

(b) The transfer between day program and VR/WAP or VR/SEP.

(c) Clients originating from (b) above who transfer to a work
activity
or  supported employment  program upon closure from VR.

The transfer of funds shall be accomplished through a budget
revision, on a  quarterly basis,  in the  fiscal year in which the
clients
initially transferred from the regional center  day programs.

5160-001-0890--For support of Department of Rehabilitation, for
payment  to Item  5160-001-0001, payable from the Federal Trust
Fund  . . . 224,043,000

Provisions:

1. The amount appropriated by this item that is payable from federal

Social  Security Act funds  for vocational rehabilitation services
for
SSI/SSDI recipients shall be  expended only to the extent  that funds

received exceed the amount appropriated by Item  5160-101-0890
that is payable from  the federal Social Security Act funds. It is
the
intent of the Legislature that  first priority of federal  Social
Security
Act funding be given to Independent Living Centers in the  amount
of federal  Social Security Act funding appropriated by Item
5160-101-0890.

5160-101-0001--For local assistance, Department of Rehabilitation  .

. .  79,710,000

Schedule:

(a) 10-Vocational Rehabilitation Services  . . . 487,000

(b) 20-Habilitation Services  . . . 79,848,000

(c) 30-Support of Community Facilities  . . . 6,837,000

(d) Amount payable from Federal Trust Fund (Item 5160-101-0890)
. . .  -7,462,000

Provisions:



1. Upon order of the Director of Finance, the Controller shall
transfer
funds as are necessary  between this item and Item 5160-001-0001 to
provide the state's share of  client service   expenditures for
habilitation clients who are eligible to become vocational
rehabilitation clients.

2. Upon order of the Director of Finance, in order to more
effectively
meet  client service needs,  the Controller shall transfer the
General
Fund share of program costs as  necessary between this  item and
Item 4300-101-0001 to provide for the net transfer of clients
between the State  Department of Developmental Services and the
Department of  Rehabilitation for the following:

(a) The conversion of regional center day programs to work activity
or  supported employment  programs.





(b) The transfer between day programs and VR/ WAP or VR/SEP.



(c) Clients originating from (b) above who transfer to a work
activity
or  supported employment  program upon closure from VR.

   The transfer of funds shall be accomplished through a budget
revision, on  a quarterly basis, in  the fiscal year in which the
clients
initially transferred from the regional  center day programs.

5160-101-0890--For local assistance, Department of Rehabilitation,
for  payment to Item  5160-101-0001, payable from the Federal
Trust Fund  . . . 7,462,000

5170-001-0001--For support of Statewide Independent Living
Council  . . .  0

Schedule:

(a) 10 Statewide Council Services  . . . 367,000

(b) Reimbursements  . . . -367,000

5180-001-0001--For support of Department of Social Services  . . .
65,352,000

Schedule:

(a) 10-Welfare Program Operations  . . . 80,003,000

(b) 20-Social Services Programs  . . . 37,442,000

(c) 30-Community Care Licensing  . . . 73,427,000

(d) 40-Disability Evaluation Program  . . . 165,804,000

(e) 50-Services to Other Agencies  . . . 6,965,000

(f) 60.01-Administration  . . . 35,066,000

(g) 60.02-Distributed Administration  . . . -35,066,000

(h) Reimbursements  . . . -14,474,000

(i) Amount payable from Foster Family Home and Small Family
Home  Insurance Fund (Item  5180-001-0131)  . . . -1,503,000

(j) Amount payable from the Federal Trust Fund (Item
5180-0010890)  . . .  -282,312,000

Provisions:

1. The Department of Finance may authorize the transfer of funds
from  Schedule (c) of this item  to Item 5180-161-0001, Program 30,
Community Care Licensing, in order  to allow counties to  perform
the facilities evaluation function.

2. The Department of Finance may authorize the transfer of funds
from  Schedule (b) of this item  to Schedule (f) of Item
5180-151-0001, Adoptions, in order to allow  counties to perform
the  adoption programs function.

3. The Department of Finance may authorize the transfer of funds
from  Schedule (a) of this item  to Item 5180-101-0001, Item
5180-141-0001 and Item 5180-151-0001 as  necessary to implement
California's program under the Personal Responsibility and Work
Opportunity Reconciliation Act  of 1996. The Department of Finance
shall transfer funds pursuant to this  provision no sooner than  30
days after providing notification in writing to the chairperson of
the
fiscal committee of each  house of the Legislature and the
Chairperson of the Joint Legislative  Budget Committee, or no
sooner than such lesser time as the chairperson of the committee, or
his or  her designee, may in  each instance determine.

5180-001-0131--For support of Department of Social Services, for
payment to Item  5180-001-0001, for claims payments and the
operation and maintenance of  the Foster Family  Home and Small
Family Home Insurance Fund  . . . 1,503,000

Provisions:

1. The Department of Finance is authorized to approve expenditures
from  the unexpended balance  available from prior years'
appropriations in the Foster Family Home and  Small Family Home
Insurance Fund during the 1997-98 fiscal year, in those amounts
made  necessary by increases in  either the payment of claims or the
costs of operating and maintaining the  Foster Family Home  and
Small Family Home Insurance Fund, which are within or in excess of
amounts appropriated in  this act for that year.

  If the Department of Finance determines that the estimate of
expenditures  will exceed the  expenditures authorized for the
1997-98 fiscal year, the department shall  notify the Legislature.
Upon notification the amount of the limitation for the 1997-98 fiscal

year  shall be increased by the  amount of such excess from the
unexpended balance available from prior  years' appropriations in
the
Foster Family Home and Small Family Home Insurance Fund.

5180-001-0270--For support of Department of Social Services,
payable  from the Technical  Assistance Fund  . . . 810,000

5180-001-0271--For support of Department of Social Services,
payable  from the Certification  Fund  . . . 605,000

5180-001-0279--For support of Department of Social Services,
payable  from the Child Health  and Safety Fund  . . . 354,000

5180-001-0890--For support of Department of Social Services, for
payment to Item  5180-001-0001, payable from the Federal Trust
Fund  . . . 282,312,000

Provisions:



1. The Department of Finance may authorize the transfer of federal
funds  from this item to Items  5180-151-0890 and 5180-161-0890 in
order to allow counties to perform  the adoptions program
functions, and the facilities evaluation function in Community Care
Licensing in the Department  of Social Services.

2. The Department of Finance may authorize the transfer of funds
from this  item to Item  5180-101-0890, Item 5180-141-0890 and
Item 5180-151-0890 as  necessary to implement  California's
program under the Personal Responsibility and Work  Opportunity
Reconciliation Act  of 1996. The Department of Finance shall
transfer funds pursuant to this  provision no sooner than  30 days
after providing notification in writing to the chairperson of the
fiscal
committee of each  house of the Legislature and the Chairperson of
the Joint Legislative  Budget Committee, or no  sooner than such
lesser time as the chairperson of the committee, or his or  her
designee, may in  each instance determine.

5180-011-0001--For support of Department of Social Services, for
transfer  to the Foster Family  Home and Small Family Home
Insurance Fund  . . . 1,019,000

Provisions:

1. Provision 1 of Item 5180-001-0131 also applies to this item.

5180-011-0890--For support of Department of Social Services, for
transfer  to the Foster Family  Home and Small Family Home
Insurance Fund  . . . 484,000

Provisions:



1. Provision 1 of Item 5180-001-0131 also applies to this item.

5180-101-0001--For local assistance, Department of Social Services
. . .  2,464,137,000

Schedule:

(a) 10.01-Temporary Assistance to Needy Families (TANF)  . . .
4,605,092,000

(b) 10.02-Foster Care  . . . 923,034,000

(c) 10.03-Non-TANF Child Support Incentives  . . . 95,748,000

(d) 10.05-Aid for Adoption of Children/Adoption Assistance
Program  . . .  125,184,000

(e) 10.06-Child Care   . . . 34,295,000

(f) 10.07-Refugee Cash Assistance   . . . 8,160,000

(g) Reimbursements  . . . -17,232,000

(h) Amount payable from the  Federal Trust Fund (Item
5180-101-0890)  .  . . -3,310,144,000

Provisions:

1. No funds appropriated by this item shall be encumbered unless
every  rule or regulation  adopted and every all-county letter issued

by the Department of Social  Services that adds to the  cost of any
welfare program is approved by the Department of Finance as  to the
availability of  funds before it becomes effective. In making the
determination as to  availability of funds to meet  the expenditures
of
a rule, regulation, or all-county letter that would  increase the
costs
of a  welfare program, the Department of Finance shall consider the
amount of  the proposed increase  on an annualized basis, the effect
the change would have on the  expenditure limitations for the
program set forth in this act, the extent to which the rule,
regulation,
or  all-county letter  constitutes a deviation from the premises
under
which the expenditure  limitations were  prepared,  and any
additional factors relating to  the fiscal integrity of the program
or
the state's fiscal  situation.

  Notwithstanding Sections 27.00, 28.00 and 28.5 of this act, the
availability of funds contained in  this item for welfare rules,
regulations, or all-county letters that add to  program costs funded
from  the General Fund in excess of $500,000 on an annual basis,
including those  that are the result of a  federal regulation but
excluding those that are (a) specifically required as a  result of
the
enactment  of a federal or state law, or (b) included in the
appropriation made by this  act, shall not be  approved by the
Department of Finance sooner than 30 days after  notification in
writing of the  necessity therefor to the chairperson of the
committee
in each house that  considers appropriations  and the Chairperson of
the Joint Legislative Budget Committee, or such  lesser time as the
chairperson of the committee, or his or her designee, may in each
instance  determine.



  Funds appropriated in this item are for welfare programs consisting

of  state and federal statutory  law, regulations, and court
decisions,
if funds necessary to carry out those  decisions are  specifically
appropriated in this act.

  For purposes of this provision, "welfare" means those program
elements  under "Welfare Program  Operations," as identified in the
Governor's Budget.

2. Notwithstanding Chapter 1 (commencing with Section 18000) of
Part 6  of Division 9 of the  Welfare and Institutions Code, a loan
not
to exceed $300,000,000 shall be  made available from  the General
Fund, from funds not otherwise appropriated, to cover the  federal
share of costs of a  program(s) when the federal funds have not been
received by this state  prior to the usual time for  transmitting
that
federal share to the counties of this state. This loan from  the
General
Fund shall  be repaid when the federal share of costs for the program

or programs  becomes available.

3. The Department of Finance may authorize the transfer of amounts
from  this item to Item  5180-001-0001 in order to fund the cost of
the administrative hearing  process associated with  changes in aid
payments in the Temporary Assistance to Needy Families  program.


4. The Department of Finance is authorized to approve expenditures
in  those amounts made  necessary by changes in either caseload or
payments, or any rule or  regulation adopted and any  all-county
letter issued as a result of the enactment of a federal or state law,
  the
adoption of a  federal regulation, or the following of a court
decision,
during the 1997-98  fiscal year that are  within or in excess of
amounts appropriated in this act for that year.

  If the Department of Finance determines that the estimate of
expenditures  will exceed the  expenditures authorized for this item,

the department shall so report to the  Legislature. At the  time as
the
report is made, the amount of the limitation shall be increased  by
the
amount of the  excess unless and until otherwise provided by law.


5. The Department of Finance may authorize the transfer of amounts
from  this item to Item 5180-  141-0001 (a), Program 10.20, County
Administration, to reimburse  counties for overpayment  recovery
activities pursuant to Section 11487.5  of Welfare and Institutions
Code.

6. The Department of Finance may authorize the transfer of funds, in
an  amount not to exceed  $26,619,000, from this item to Schedule
(e) of Item 5180-151-0001, Child  Welfare Services, in  order to
advance funds to participating counties to conduct a program of
family reunification and  family maintenance services pursuant to
Sections 16500.5 and 16500.55 of  the Welfare and  Institutions
Code.

7. The Department of Finance may authorize the transfer of funds
from  Schedule (a) of this item  to Item 5180-001-0001, Item
5180-141-0001 and Item 5180-151-0001 as  necessary to implement
California's program under the Personal Responsibility and Work
Opportunity Reconciliation Act  of 1996. The Department of Finance
shall transfer funds pursuant to this  provision no sooner than  30
days after providing notification in writing to the chairperson of
the
fiscal committee of each  house of the Legislature and the
Chairperson of the Joint Legislative  Budget Committee, or no
sooner than such lesser time as the chairperson of the committee, or
his or  her designee, may in  each instance determine.

5180-101-0890--For local assistance, Department of Social Services,
for  payment to Item  5180-101-0001, payable from the Federal
Trust Fund  . . . 3,310,144,000

Provisions:

1. Provisions 1 and 4 of Item 5180-101-0001 also apply to this item.



2. The Department of Finance may authorize the transfer of amounts
from  this item to Item  5180-001-0890 in order to fund the cost of
the administrative hearing  process associated with  changes in aid
payments in the Temporary Assistance to Needy Families  program.


3. The Department of Finance may authorize the transfer of funds, in
an  amount not to exceed  $4,002,000, from this item to Item
5180-151-0890, Child Welfare  Services, in order to advance  funds
to participating counties to conduct a program of family
reunification
and family  maintenance services pursuant to Sections 16500.5 and
16500.55 of the  Welfare and Institutions  Code.

4. The Department of Finance may authorize the transfer of funds
from this  item to Item  5180-001-0890, Item 5180-141-0890 and
Item 5180-151-0890 as  necessary to implement  California's
program under the Personal Responsibility and Work  Opportunity
Reconciliation Act  of 1996. The Department of Finance shall
transfer funds pursuant to this  provision no sooner than  30 days
after providing notification in writing to the chairperson of the
fiscal
committee of each  house of the Legislature and the Chairperson of
the Joint Legislative  Budget Committee, or no  sooner than such
lesser time as the chairperson of the committee, or his or  her
designee, may in  each instance determine.

5180-111-0001--For local assistance, Department of Social Services
. . .  1,660,334,000

Schedule:

(a) 10.08-SSI/SSP  . . . 1,660,334,000

Provisions:

1. Provisions 1 and 4 of Item 5180-101-0001 also apply to this item.



2. Of the amount appropriated in this item, payments to counties
shall be  authorized pursuant to  Section 10985 of the Welfare and
Institutions Code.

3. The Department of Finance may authorize the transfer of funds
from this  item to Item  5180-001-0001 in order to fund the cost of
the administrative hearing  process associated with  federal law
changes in SSI/SSP. The Department of Finance shall transfer  funds
pursuant to this  provision no sooner than 30 days after providing
notification in writing to  the chairperson of the  fiscal committee
of
each house of the Legislature and the Chairperson of  the Joint
Legislative  Budget Committee, or no sooner than such lesser time as
the chairperson  of the committee, or his  or her designee, may in
each instance determine.

5180-141-0001--For local assistance, Department of Social Services
. . .  560,283,000

Schedule:

(a) 10.20-County Administration  . . . 1,562,484,000

(b) 10.25-Automation Projects  . . . 156,186,000

(c) Reimbursements  . . . -15,646,000

(d) Amount payable from the Federal Trust Fund (Item
5180-141-0890)  . .  . -1,142,741,000

Provisions:



1. Notwithstanding Chapter 1 (commencing with Section 18000) of
Part 6  of Division 9 of the  Welfare and Institutions Code, a loan
not
to exceed $127,000,000 shall be  made available from  the General
Fund, from funds not otherwise appropriated, to cover the  federal
share of costs of a  program(s) when the federal funds have not been
                                     received by this state  prior to
the usual time for  transmitting that
federal share to the counties of this state. This loan from  the
General
Fund shall  be repaid when the federal share of costs for the program

or programs  becomes available.

2. The State Department of Social Services may act in the place of
any  county and assume direct  responsibility for the administration
of
eligibility and grant determination.  Upon recommendation  of the
Director of Social Services, the Department of Finance may
authorize the transfer of funds  from Items 5180-141-0001 and
5180-141-0890, to Items 5180-001-0001  and 5180-001-0890, for
this purpose.

3. Notwithstanding any other provision of law, the State Department
of  Social Services may  withhold state financial support of a county'
s
automated welfare operations  if the county does not  provide a
fiscal
accounting of those operations in the form and manner as  may be
requested by the  department and the department may enter into an
agreement with a county  wherein state financial  support for the
development or modification of county-automated welfare
operations is  conditioned upon the realization of savings projected
by the county and  upon a finding by the  department that the
development or modification of county-automated  welfare
operations is  consistent with the development and implementation of
SAWS.

4. Provision 1 of Item 5180-101-0001 also applies to this item.

5. Pursuant to public assistance caseload estimates reflected in the
annual  Governor's Budget, the  Department of Finance may approve
expenditures in those amounts made  necessary by changes in
caseload that are in excess of amounts appropriated in this act. If
the
Department of Finance  determines that the estimate of expenditures
will exceed the expenditures  authorized for this item,  the
department shall so report to the Legislature. At the time the report

is  made, the amount of  the limitation shall be increased by the
amount of the excess unless and  until otherwise provided  by law.


6. The Department of Finance may augment the funds appropriated
in this  item to make  allocations to fund county plans that are
approved by the State Department  of Social Services  under Section
15200.6 of the Welfare and Institutions Code.

7. The Department of Finance may approve and transfer funds in this
item  to Item  4130-001-0632, Program 30--Systems Management
Services, for planning,  implementation and  maintenance activities
for the Statewide Automated Welfare System  (SAWS), the
Statewide  Automated Child Support System (SACSS) and the
Statewide Fingerprint  Imaging System  (SFIS). The Department of
Finance shall within 30 days of making such  transfer notify the
chairperson of the committee in each house that considers
appropriations  and the Chairperson of  the Joint Legislative Budget
Committee.

8. The State Department of Social Services shall require the counties

participating in SAWS,  other than the counties participating in the
Interim SAWS Consortium and  the LEADER  Consortium, to pay,
in the aggregate, five percent of total application  development
costs.
Each  county must pay a proportional share of these costs equal to
the county's  percentage of the  consortium's caseload in that county

for the fiscal year. A county may pay  these funds during the
development of the systems, or may enter into an agreement with the
state  to pay reimbursements  after the system is operational. Each
county subject to this provision shall  reimburse the General  Fund
no
later than four years after the initiation of case conversion in the
county. The department  shall pay the county share of all other
SAWS development and  implementation costs as approved  by the
Department of Finance and federal funding agencies.

9. (a) The State Department of Social Services shall pay the county
share  of maintenance and  operations costs for the first 12 months
of
production of the Statewide  Automated Welfare  System (SAWS)
for counties in the Interim SAWS Consortium, the  Welfare Case
Data  Consortium, and Consortium IV. Production shall be deemed
to begin in  each county when the  first case is converted to the
SAWS application or the first intake case is  processed on the SAWS
application, whichever occurs first.



(b) The department shall pay all SAWS maintenance and operations
costs  for specified counties as  defined in this subdivision. A
county
qualified for SAWS maintenance and  operations funding is  defined
as one having an average monthly, duplicated continuing case  count
below 3,700 cases  for the TANF and Foster Care, Non-Assistance
Food Stamps, Public  Assistance Food Stamps,  Medi-Cal and
County Medical Services programs. The department shall  make its
determination  based on actual case counts for the most current full
fiscal year. The  department shall provide  funding for the county
share of costs for those counties which annually  meet this
definition
until  June 30, 2001.

(c) Beginning October 1, 1998, the original 14 Interim SAWS
counties  shall pay the county share  of maintenance and operations
costs in accordance with existing statutes  governing county
administrative costs, with the exception of those counties meeting
the
definition in subdivision (b)  of this provision.

(d) The department shall pay the county share of Napa County's
Interim  SAWS application  maintenance costs through September
30, 1998.

(f) The department shall pay the county share of Merced County's
MAGIC  application  maintenance costs until September 30, 1998, or
until Merced County has  converted its  caseload  to one of the
SAWS consortia systems, whichever occurs first.

10. The Department of Finance may authorize the transfer of funds
from  this item to Item  5180-001-0001, Item 5180-101-0001 and
Item 5180-151-0001 as  necessary to implement  California's
program under the Personal Responsibility and Work  Opportunity
Reconciliation Act  of 1996. The Department of Finance shall
transfer funds pursuant to this  provision no sooner than  30 days
after providing notification in writing to the chairperson of the
fiscal
committee of each  house of the Legislature and the Chairperson of
the Joint Legislative  Budget Committee, or no  sooner than such
lesser time as the chairperson of the committee, or his or  her
designee, may in  each instance determine.

5180-141-0890--For local assistance, Department of Social Services,
for  payment to Item  5180-141-0001, payable from the Federal
Trust Fund  . . . 1,142,741,000

Provisions:

1. Provisions 1 to 6, inclusive, of Item 5180-141-0001 also apply to

this  item.

2. The Department of Finance may authorize the transfer of funds
from this  item to Item  5180-001-0890, Item 5180-101-0890 and
Item 5180-151-0890 as  necessary to implement  California's
program under the Personal Responsibility and Work  Opportunity
Reconciliation Act  of 1996. The Department of Finance shall
transfer funds pursuant to this  provision no sooner than  30 days
after providing notification in writing to the chairperson of the
fiscal
committee of each  house of the Legislature and the Chairperson of
the Joint Legislative  Budget Committee, or no  sooner than such
lesser time as the chairperson of the committee, or his or  her
designee, may in  each instance determine.

5180-151-0001--For local assistance, Department of Social Services
. . .  963,265,000

Schedule:

(a) 20.01-In-Home/Supportive Services  . . . 906,324,000

(1) 20.01.010-Services  . . . 792,325,000

(2) 20.01.015-Administration  . . . 113,999,000

(b) 20.05-Employment Services  . . . 420,092,000

(c) 20.08-Cal-Learn  . . . 62,611,000

(d) 20.10-Child Care  . . . 5,849,000

(e) 20.43-Child Welfare Services  . . . 933,088,000

(f) 20.44-Adoptions  . . . 58,364,000

(g) 20.47-Child Abuse Prevention  . . . 23,153,000

(h) 20.50-Special Programs  . . . 58,335,000

(1) 20.50.001-Specialized Services  . . . 512,000

(2) 20.50.005-Access Assistance for the Deaf  . . . 3,304,000

(3) 20.50.010-Maternity Care  . . . 2,010,000

(4) 20.50.015-Refugee Assistance Services  . . . 24,000,000

(5) 20.50.020-County Services Block Grant  . . . 28,509,000

(i) Reimbursements  . . . -502,169,000

(j) Amount payable from the Employment Training Fund (Item
5180-151-0514)  . . . -20,000,000

(k) Amount payable from the Child Health and Safety Fund (Item
5180-151-0279)  . . . -248,000

(l) Amount payable from the Federal Trust Fund (Item
5180-151-0890)  . .  . -982,134,000

Provisions:



1. The funds appropriated by this item are for social services
programs, for  the cost of special  social services programs for
which
federal grants in aid are made to the  state; for grants or  services
to
local agencies for the extension of child welfare services as
provided
by Chapter 5  (commencing with Section 16500) of Part 4 of
Division 9 of the Welfare  and Institutions Code;  for the cost of
the
adoption programs and care of children, to be expended  in
accordance with  Chapter 2 (commencing with Section 16100) of
Part 4 of Division 9 of the  Welfare and  Institutions Code; for the
costs incurred by counties, including, but not  limited to, the
required
county funds, for in-home supportive services as provided by Article
7  (commencing with Section  12300) of Chapter 3 of Part 3 of
Division 9 of the Welfare and Institutions  Code, and for  prevention

of child abuse and neglect as provided by Chapter 11  (commencing
with Section  18950) of Part 6 of Division 9 of the Welfare and
Institutions Code.

2. Provision 1 of Item 5180-101-0001 also applies to this item.

3. Notwithstanding Chapter 1 (commencing with Section 18000) of
Part 6  of Division 9 of the  Welfare and Institutions Code, a loan
not
to exceed $113,000,000 shall be  made available from  the General
Fund from funds not otherwise appropriated, to cover the  federal
share of costs of a  program(s) when the federal funds have not been
received by this state  prior to the usual time for  transmitting
that
federal share to the counties of this state. That loan from  the
General
Fund shall  be repaid when the federal share of costs for the
program(s) becomes  available.

4. The Department of Finance may approve expenditures for
Program  20.08, Cal-Learn, in those  amounts made necessary by
changes in  caseload or supportive services  payments which are in
excess of amounts appropriated in this act. If the Department of
Finance  determines that the  estimate of Cal-Learn expenditures will

exceed the expenditures authorized  for this program, the
department shall notify the Legislature. Upon notification, the
amount of  the limitation shall be  increased by the amount of the
excess unless and until otherwise provided  by law.

5. The Department of Finance may authorize the transfer of amounts
from  this item to Item  5180-161-0001, Program 30--Community
Care Licensing, in order to  reflect modifications in the
utilization of
federal Title XX funds.

6. The Department of Finance may approve and transfer funds in this
item  to Item  4130-001-0632, Program 30--Systems Management
Services, for activities  relating to the Child  Welfare Services
Case/Management System (CMS/CWS). The Department  of
Finance shall  within 30 days of making such transfer notify the
chairperson of the  committee in each house that  considers
appropriations and the Chairperson of the Joint Legislative  Budget
Committee.

7. Cal-Learn case management includes services provided pursuant
to the  Adolescent Family Life  Program (AFLP) Standards and the
Cal-Learn program-specific case  manager activities required  under
Article 3.5 (commencing with Section 11331) of Chapter 2 of Part 3
of Division 9 of the  Welfare and Institutions Code. Any county that
contracts out for the case  management services  shall reimburse the
contractor at an annual rate of $1,650 per Cal-Learn  client. This
amount does  not include mandated functions of county social
services departments,  including final  determination of bonuses,
sanctions, good cause, program exemption and  deferral,
administrative  costs for supportive services, and requirements of
the
Department of Social  Services for county  data reporting.

8. The Department of Finance may authorize the transfer of funds
from this  item to Item  5180-001-0001, Item 5180-101-0001 and
Item 5180-141-0001 as  necessary to implement  California's
program under the Personal Responsibility and Work  Opportunity
Reconciliation Act  of 1996. The Department of Finance shall
transfer funds pursuant to this  provision no sooner than  30 days
after providing notification in writing to the chairperson of the
fiscal
committee of each  house of the Legislature and the Chairperson of
the Joint Legislative  Budget Committee, or no  sooner than such
lesser time as the chairperson of the committee, or his or  her
designee, may in  each instance determine.

5180-151-0279--For local assistance, Department of Social Services,
for  payment to  5180-151-0001, payable from the Child Health and
Safety Fund  . . .  248,000

5180-151-0514-- For local assistance, Department of Social
Services, for  payment to Item  5180-151-0001, payable from the
Employment Training Fund  . . .  20,000,000

5180-151-0890--For local assistance, Department of Social Services,
for  payment to Item  5180-151-0001, payable from the Federal
Trust Fund  . . . 982,134,000

Provisions:

1. Provisions 1, 2, 4, and 6 of Item 5180-151-0001 also apply to this

item.

2. The Department of Finance may authorize the transfer of funds
from this  item to Item  5180-001-0890, Item 5180-101-0890 and
Item 5180-141-0890 as  necessary to implement  California's
program under the Personal Responsibility and Work  Opportunity
Reconciliation Act  of 1996. The Department of Finance shall
transfer funds pursuant to this  provision no sooner than  30 days
after providing notification in writing to the chairperson of the
fiscal
committee of each  house of the Legislature and the Chairperson of
the Joint Legislative  Budget Committee, or no  sooner than such
lesser time as the chairperson of the committee, or his or  her
designee, may in  each instance determine.

5180-161-0001--For local assistance, Department of Social Services
. . .  6,564,000

Schedule:

(a) 30-Community Care Licensing  . . . 13,524,000

(b) Amount payable from the Federal Trust Fund (Item
5180-161-0890)  . .  . -6,960,000

Provisions:

1. The Department of Finance may authorize the establishment of
positions  and transfer of  amounts from this item to Item
5180-001-0001, Program 30--Community  Care Licensing, in  order
to allow the state to perform the facilities evaluation function in
the
event the counties fail  to perform that function.

5180-161-0890--For local assistance, Department of Social Services,
for  payment to Item  5180-161-0001, payable from the Federal
Trust Fund  . . . 6,960,000

Provisions:

1. The Department of Finance may authorize the transfer of amounts
from  this item to Item 5180-  001-0890 in order to allow the state
to
perform the facilities evaluation  function in the  Community Care
Licensing Program in the event the counties fail to  perform that
function.

2. The Department of Finance may authorize the transfer of amounts
from  this item to Item  5180-151-0890 in order to reflect
modifications in the utilization of federal  Title XX funds.

5180-490--Reappropriation, Department of Social Services.
Notwithstanding any other provision  of law, the unencumbered
balances of the appropriations provided for in  the following
citations
are reappropriated for the purposes and subject to the limitations,
unless  otherwise specified,  provided for in those appropriations,
and
shall be available for expenditure  until June 30, 1998:

0001--General Fund

(1) The balance of the $13,159,877 CWS Training reappropriation in
Program 20.43, Child  Welfare Services, Item 5180-151-0001,
Budget Act of 1996, is  reappropriated for transfer to and  in
augmentation of Item 5180-151-001 of this act for the purpose of
funding the increased county  costs of conversion to the Child
Welfare Services Case Management  System (CWS/CMS)  resulting
from the staff time necessary to administer a fully operational
child
welfare services  system while workers, supervisors, and support
staff are training, or are  traveling to training, to  use the
CWS/CMS.
The department's determination of that amount shall be  based on
factors such  as the number of staff affected, the cost of the staff,
and
the implementation  schedule of the  CWS/CMS for each county
welfare department.

0890--Federal Fund

(1) The balance of the $6,059,999 CWS Training augmentation in
Program  20.43, Child Welfare  Services, Item 5180-151-0890,
Budget Act of 1996, is reappropriated for  transfer to and in
augmentation of Item 5180-151-0890 of this act for the purpose of
funding  the increased county  costs of conversion to the Child
Welfare Services Case Management  System (CWS/CMS)  resulting
from the staff time necessary to administer a fully operational
child
welfare services  system while workers, supervisors, and support
staff are training, or are  traveling to training, to  use the
CWS/CMS.
The department's determination of that amount shall be  based on
factors such  as the number of staff affected, the cost of the staff,
and
the implementation  schedule of the  CWS/CMS for each county
welfare department.

5180-491--Reappropriation, Department of Social Services.
Notwithstanding any other provision  of law, the appropriations
provided in the following citations are  reappropriated on the
effective  date of this act for the purposes (and subject to the
limitations unless  otherwise specified)  provided for in the
appropriations and shall be available for expenditure  until June 30,

1998:



0001--General Fund

(1) The balance of the appropriation provided in Item
5180-001-0001 of  Budget Act of 1996 for  disaster preparedness
and relief, is reappropriated for transfer and in  augmentation of
Item
5180-001-0001 of this act for disaster relief purposes.

0890--Federal Trust Fund



(1) The balance of the $60,000,000 GAIN augmentation in Program
20.05,  Employment  Services, Item 5180-151-0890, Budget Act of
1996, is reappropriated for  transfer to and in  augmentation of Item

5180-151-0890 of this act for the GAIN program.

                              YOUTH AND ADULT CORRECTIONAL
AGENCY



5240-001-0001--For support of the Department of Corrections

3,463,526,000

Schedule:

(a) 21-Institution Program  . . . 2,649,278,567

(b) 22-Health Care Services Pro-  gram 508,190,000

(c) 31-Community Correctional Pro-  gram 415,673,433

(d) 41.01-Administration  . . . 140,831,000

(e) 41.02-Distributed Adminis-  tration -140,831,000

(f) Reimbursements  . . . -64,424,000

(g) Amount payable from the Federal Trust Fund (Item
5240-001-0890)  . .  . -1,217,000

(h) Amount payable from the Federal Trust Fund (Item
5240-005-0890)  . .  . -2,363,000

(i) Amount payable from the Inmate Welfare Fund (Item
5240-001-0917)  .  . . -41,612,000

Provisions:

1. Funds appropriated to accommodate projected institutional
population  levels in excess of those  that actually materialize, if
any,
shall revert to the General Fund.

2. Funds appropriated to accommodate projected parole population
levels  in excess of those that  actually materialize, if any, shall
revert
to the General Fund.

3. It is the intent of the Legislature that the Department of
Corrections  shall utilize funds  appropriated by this item to
maintain,
at a minimum, its current level of  staff employed in  accordance
with
Sections 12000 to 12009, inclusive, of the Unemployment  Insurance
Code.

4. Any funds recovered as a result of audits of locally operated
return-to-custody centers shall  revert to the General Fund.

5. Any funds appropriated by this item for the Correctional
Management  Information (CMIS)  project may not be redirected or
eliminated as part of an unallocated  budget reduction. In  addition,

any funds appropriated by this item for the CMIS project that are
not expended for that  project shall revert to the General Fund.


6. When contracting with counties for vacant jail beds for any inmate

under  the jurisdiction of the  Director of the Department of
Corrections, the department shall not  reimburse counties more than
the average amount it costs the state to provide the same services in

comparable state institutions.  This restriction shall not apply to
any
existing contract, but shall apply to  the extension or renewal  of
that
contract. In addition, the total operational cost of incarcerating
state
inmates in lease  county jail beds (which includes state costs, but
is
exclusive of one-time  and capital outlay costs),  shall not exceed
the
department's average cost for operating comparable  institutions.


7. Notwithstanding any other provision of law, funds appropriated in
Schedule (a) for McGee  Training Facility rent payments may be
transferred to Item 5240-003-0001  by the Controller,  upon order of
the Director of Finance, as necessary to provide rental  payments on
lease revenue  bonds for the McGee Training Facility if a bond sale
occurs.

8. Notwithstanding any other provision of law, but subject to
providing 30  days' prior notification  to the Joint Legislative
Budget
Committee, funds appropriated in Schedule  (a) or (b), or both, of
this item may be transferred to Item 5240-101-0001, Schedule (b),
upon  order of the Director of  Finance, to provide funds for the
reimbursement of counties for the cost of  holding parole  violators
in
local jail.

5240-001-0890--For support of the Department of Corrections, for
payment to Item  5240-001-0001, payable from the Federal Trust
Fund  . . . 1,217,000

5240-001-0917--For support of the Department of Corrections, for
payment to Item  5240-001-0001, payable from the Inmate Welfare
Fund  . . . 41,612,000

5240-003-0001--For support of the Department of Corrections for
rental  payments on lease  revenue bonds  . . . 217,532,000

Schedule:

(a) Southern Maximum Security Complex  . . . 12,179,000

(b) Mule Creek State Prison  . . . 16,026,000

(c) California State Prison Corcoran  . . . 34,240,000

(d) Pelican Bay State Prison  . . . 27,974,000

(e) Central California Women's Facility  . . . 15,378,000

(f) Calipatria State Prison  . . . 18,725,000

(g) Centinella State Prison  . . . 19,704,000

(h) Pleasant Valley State Prison  . . . 18,931,000

(i) High Desert State Prison   . . . 24,138,000

(j) Valley State Prison  . . . 14,634,000

(k) Salinas Valley State Prison  . . . 24,600,000

(l) CSATF & SP at Corcoran II  . . . 2,045,000

(m) Emergency Bed Program  . . . 1,100,000

(n) Insurance  . . . 2,384,000

(o) Reimbursements  . . . -14,526,000

5240-005-0890--For support of the Department of Corrections, for
payment to Item  5240-001-0001, payable from the Federal Trust
Fund (Federal Crime Bill)   . . . 2,363,000

5240-101-0001--For local assistance, Department of Corrections  . .
.  24,136,000

Schedule:

(a) 21-Institution Program  . . . 9,439,000

(b) 31-Community Correctional Program  . . . 14,697,000

Provisions:

1. The amount appropriated by this item is provided for the following

purposes:



a. To pay the transportation costs of prisoners to and between state
prisons, including the return  of parole violators to prison and for
the
conveying of persons under  provisions of Division 3  (commencing
with Section 3000) of the Welfare and Institutions Code and  the
Western Interstate  Corrections Compact (Section 11190 of the
Penal Code), in accordance  with Section 26749 of  the Government
Code. Claims filed by local jurisdictions shall be filed  within six
months after the  end of the month in which those transportation
costs are incurred.  Expenditures shall be charged  to either the
fiscal
year in which the claim is received by the Controller or  the fiscal
year in which  the warrant is issued by the Controller.

  Claims filed by local jurisdictions directly with the Controller
may
be paid  by the Controller.

b. To pay the expenses of returning fugitives from justice from
outside the  state, in accordance  with Sections 1389, 1549, and 1557

of the Penal Code. Claims filed by  local jurisdictions shall be
filed
within six months after the end of the month in which expenses are
incurred, expenditures  shall be charged to either the fiscal year in

which the claim is received by  the Controller or the  fiscal year in

which the warrant is issued by the Controller, and any  restitution
received by the  state for those expenses shall be credited to the
appropriation of the year in  which the Controller's  receipt is
issued.


  Claims filed by local jurisdictions directly with the Controller
may
be paid  by the Controller.

c. To pay court costs and county charges, payable under Sections
4700.1,  4750 to 4755,  inclusive, and 6005 of the Penal Code.
Claims shall be filed by local  jurisdictions within six  months
after
the end of the month in which a service is performed by the  coroner,

a hearing is  held on the return of a writ of habeas corpus, the
district
attorney declines  to prosecute a case  referred by the Department of

Corrections, a judgment is rendered for a  court hearing or trial, an

appeal ruling is rendered for the trial judgment, or an activity is
performed  as permitted by these  sections. Expenditures shall be
charged to either the fiscal year in which the  claim is received by
the
Controller or the fiscal year in which the warrant is issued by the
Controller.

  Claims filed by local jurisdictions directly with the Controller
may
be paid  by the Controller.

d. To reimburse counties for the cost of detaining state parolees
pursuant  to Section 4016.5 of the  Penal Code. Claims shall be filed

by local jurisdictions within six months  after the end of the  month
in
which the costs are incurred. Claims filed by local jurisdictions
may
not include booking  fees, may not recover detention costs in excess
of $59 per day, and shall be  limited to the  detention costs for
those
days on which parolees are held subject only to a  Department of
Corrections request pursuant to subdivision (b) of Section 4016.5 of
the  Penal Code.  Expenditures shall be charged to either the fiscal
year in which the claim is  received by the  Department of
Corrections or the fiscal year in which the warrant is issued.

2. Notwithstanding any other provision of law, upon 30-day prior
notification to the Chairman of  the Joint Legislative Budget
Committee, funds appropriated in Schedule  (b) of this item may be
transferred to Schedules (a) or (b), or both, of Item 5240-001-0001,
upon  order of the Director of  Finance, to provide funds for the
reimbursement of counties for the cost of  holding parole  violators
in
local jails or for the auditing or monitoring of local assistance
costs.


5240-301-0001--For capital outlay, Department of Corrections  . . .
28,256,000

Schedule:

(1) 61.01.001-Statewide: Budget Packages and Advance Planning  . .
.  300,000

(2) 61.01.200-Statewide: Disability Placement Plan--American
Disabilities  Act  (ADA)--Preliminary plans and working drawings  . .

. 97,000

(3) 61.01.301-Statewide: Study and Design of Correctional
Treatment  Centers, Phase II-- Study,  preliminary plans and working
drawings  . . . 3,208,000

(4) 61.01.305-Statewide: Enhanced Outpatient Care--Preliminary
plans and  working drawings  . .  . 1,064,000

(5) 61.01.310-Statewide: Reception Center Screening and Evaluation
Program-- Preliminary  plans and working drawings  . . . 818,000


(6) 61.01.311-Statewide: Correctional Clinical Case Management--
Preliminary plans and  working drawings  . . . 2,713,000

(7) 61.04.040-California Correctional Institution, Tehachapi:
Wastewater  Treatment Plant  Renovation and New Potable Water
Source--Study  . . . 200,000

(8) 61.07.101-Folsom State Prison: Renovate Dental
Clinic--Preliminary  plans and working  drawings  . . . 30,000

(9) 61.07.102-Folsom State Prison: Renovate Branch Circuit Wiring,
Building 1--Preliminary  plans and working drawings  . . . 93,000


(10) 61.07.103-Folsom State Prison: Renovate Supply Heating and
Ventilation, Building  1--Preliminary plans and working drawings  . .

. 45,000

(11) 61.08.020-California Institution for Men, Chino: PCE
Contamination  Cleanup--Preliminary  plans and working drawings  .
. . 182,000

(12) 61.08.024-California Institution for Men, Chino: Replace
Locking  Devices--RC  Central--Working drawings and construction
. . . 2,330,000

(13) 61.08.028-California Institution for Men, Chino: Cold Freezer
Addition--Preliminary plans  and working drawings  . . . 25,000

(14) 61.10.101-California Men's Colony, San Luis Obispo: Central
Kitchen  Replacement (West)  --Preliminary plans and working
drawings  . . . 187,000

(15) 61.12.030-California State Prison at San Quentin: Facilities
Master  Plan--Study  . . .  1,000,000

(16) 61.14.030-Minor Projects  . . . 5,500,000

(17) 61.14.031-Minor Projects: Various Americans with Disabilities
Act  (ADA) Projects  . . .  7,859,000

(18) 61.15.030-California Rehabilitation Center, Norco: Patton State
Hospital Security Perimeter  --Preliminary plans, working drawings
and construction  . . . 1,995,000

(19) 61.15.031-California Rehabilitation Center, Norco: Construct
Water  Filtration  Plant--Preliminary plans and working drawings  . .
.
41,000

(20) 61.16.021-Sierra Conservation Center, Jamestown: Effluent
Disposal  Pipeline--Preliminary  plans  . . . 569,000

Provisions:

1. The funds appropriated in Schedule (1) are to be allocated by the
Department of Corrections,  upon approval by the Department of
Finance to develop design and cost  information for new  projects for

which funds have not been previously appropriated, but for  which
preliminary plan  funds, working drawings funds, or working
drawings and construction  funds are expected to be  included in the
1998-1999 or 1999-2000 Governor's Budget, and for which  cost
estimates or  preliminary plans can be developed prior to legislative

hearings on the  1998-1999 and 1999-2000  Governor's Budgets,
respectively. These funds may be used for all of the  following:
budget  package development, architectural programming,
engineering  assessments, schematic design, and  preliminary plans.
The amount appropriated in this item for that purpose  shall not be
construed as  a commitment by the Legislature as to the amount of
capital outlay funds it  will appropriate in any  future year.

2. As used in this appropriation, studies shall include site studies
and
suitability reports,  environmental studies, master planning,
architectural programming and  schematics.

5240-301-0660--For capital outlay, State Public Works Board,
payable  from the Public Buildings  Construction Fund  . . .
31,262,000

Schedule:

(1) 61.01.300-Statewide: Study, Design and Construction of
Correctional  Treatment  Centers--Construction  . . . 11,318,000


(2) 61.08.023-California Institution for Men, Chino: Replace
Program "C"  Dorms-Construction  .  . . 5,612,000

(3) 61.08.025-California Institution for Men, Chino: Denitrification
Plant-Construction  . . .  5,530,000

(4) 61.08.028-California Institution for Men, Chino: Cold Freezer
Addition-Construction  . . .  375,000

(5) 61.16.202-Sierra Conservation Center, Jamestown: Wastewater
Treatment Plant-Construction   . . . 8,427,000

Provisions:

1. The State Public Works Board may issue lease-revenue bonds,
notes or  bond anticipation notes  pursuant to Chapter 3.1
(commencing with Section 15819.1 to 15819.13  inclusive) of Part
10b of  Division 3 of Title 2 of the Government Code to finance the
construction.

2. The State Public Works Board and the California Department of
Corrections may obtain  interim financing including, but not limited
to, the Pooled Money  Investment Account pursuant to  Sections
16312 and 16313 of the Government Code for the project costs
authorized in this item.

3. The maximum amount of bonds, notes, or bond anticipation notes
to be  sold shall not exceed  the cost of construction and any
additional amounts necessary to pay  interim and permanent
financing costs.

4. The State Public Works Board may authorize the augmentation of
the  cost of construction of  the project set forth in this section
pursuant to the board's authority under  Section 13332.11. In
addition, the State Public Works Board may authorize any additional
amounts necessary to  establish a reasonable construction reserve and

to pay the cost of financing,  including the payment  of interest
during construction of the project, the cost of financing a debt
service reserve fund, and  the cost of issuance of permanent
financing
for the project. This additional  amount may include  interest
payable
on any interim financing including the Pooled Money  Investment
Account  pursuant to Section 16312.

5. In the event the bonds authorized for the project are not sold,
the
Department of Corrections  shall commit a sufficient portion of its
support appropriation provided for  in this act to repay any  loans
for
interim financing. It is the intent of the Legislature that this
commitment shall be  included in future Budget Acts until
outstanding loans for interim financing  are repaid either  through
the
sale of bonds or from an appropriation.

5240-301-0890--For capital outlay, Department of Corrections, for
payment to Item  5240-302-0001, payable from the Federal Trust
Fund  . . . 40,455,000

Provisions:

1. Notwithstanding Section 2 of this Act, the funds appropriated in
this  item shall be available  until June 30, 1999.

2. The amounts appropriated in this item represents federal funds
received  from the Violent  Offender Incarceration and Truth in
Sentencing grants as reflected in Item  5991-401.

5240-302-0001--For capital outlay, Department of Corrections  . . .
9,595,000

Schedule:

(1) 61.01.722-General and Advance Planning: New Correctional
Facilities-Site studies and  suitability reports, environmental
studies,
master planning and architectural  programming  . . .  2,250,000


(2) 61.39.001-California State Prison-Kern County at Delano II:
2,124-cell  combination medium  and maximum security prison,
together with a Level I support services  facility-Site acquisition,
site
studies and suitability reports, environmental studies, master
planning,  architectural  programming, schematics, preliminary plans
and working drawings  . . .  15,000,000

(3) 61.40.001-California State Prison-Kern County at California
City:  2,124-cell combination  medium and maximum security prison,
together with Level I support  services facility--Site  acquisition,
site
studies and suitability reports, environmental studies,  master
planning,  architectural programming, schematics, preliminary plans
and working  drawings  . . . 15,000,000

(4) 61.41.001-California State Prison-San Diego County II:
2,500-cell  combination reception  center and medium security
prison, together with a Level I support services  facility--Site
acquisition, site studies and suitability reports, environmental
studies,
master planning,  architectural programming, schematics, preliminary
plans and working  drawings  . . . 17,800,000

(5) Amount payable from the Federal Trust Fund (Item
5240-301-0890)  . .  . -40,455,000

Provisions:

1. Notwithstanding any other provision of law, the Department of
Finance  may make a loan from  the General Fund to the Department
of Corrections for the purposes of this  item to meet  cash-flow
needs
due to delays in collecting the funds from the Federal  Violent
Offender  Incarceration and Truth in Sentencing Incentive grants. All

moneys so  transferred shall be repaid  to the General Fund, as soon
as possible, but no later than one year from  the date of the loan.


2. Notwithstanding Chapter 10, commencing with Section 4525 et
seq., of  the Government Code,  the Department of Corrections may
amend any existing contracts with  firms for architectural,
engineering and/or environmental services to perform all required
architectural, engineering  and/or environmental services on an
expedited basis for the prison projects  authorized.

3. The provisions of Division 13 (commencing with Section 21000)
of the  Public Resources Code  that require consideration of
alternative sites for a proposed project and  alternative uses for
the
site of a proposed project shall not apply to a project authorized in

Schedule (1) in Sacramento  County.

4. Of the amount appropriated in this item, four million four hundred

ninety  five thousand  ($4,495,000) shall be used for the required
state match for federal funds  received from the Federal  Violent
Offender Incarceration and Truth in Sentencing grants.

5. Notwithstanding Section 2 of this Act, the funds appropriated in
schedule (5) of this item shall  be available until June 30, 1999.


6. The amounts appropriated in schedule (5) of this item represents
federal  funds received from  the Violent Offender Incarceration and
Truth in Sentencing grants as  reflected in Item 5991-401.

5240-302-0890--For capital outlay, Department of Corrections,
payable  from the Federal Trust  Fund  . . . 224,910,000

Schedule:

(1) 61.39.001-California State Prison-Kern County at Delano II:
2,124-cell  combination medium  and maximum security prison,
together with a Level I support services  facility-construction and
equipment  . . . 224,910,000

Provisions:

1. Notwithstanding Section 2 of this act, the funds appropriated in
this item  shall be available until  June 30, 2001.

2. The amount appropriated in this item may be used to either
reimburse  any expenditures to  construct the prison as authorized in

Item 5240-401 or applied to  lease-revenue bond debt service  costs
on the bonds sold to pay for the construction of California State
Prison-Kern County at  Delano II as authorized in Item 5240-401.


3. The amounts appropriated in this item represents federal funds
received  from the Violent  Offender Incarceration and Truth in
Sentencing grants as reflected in Item  5991-401.

5240-401--For the Department of Corrections.

(a) The Department of Corrections is hereby authorized to construct
and  establish a combination  medium and maximum security prison,
together with a Level I support  services facility, in the  vicinity
of
Delano in Kern County to be known as California State  Prison-Kern
County at Delano  II.

(b) The State Public Works Board may issue lease revenue bonds,
notes or  bond anticipation  notes pursuant to Chapter 3.1, Part 10b
of Division 3 of the Government  Code, Sections 15819.1  to
15819.13, inclusive, and Section 15819.15 for the project, provided
that  the following apply:

(1) "Prison facility," as used in Section 15819.1, includes the
California  State Prison-Kern County  at Delano II.

(2) Notwithstanding the limitation imposed by Section 15819.3
regarding  the amount of bonds to  be issued for construction and
financing of prison facilities, the State Public  Works Board may
issue additional bonds in order to pay the costs of acquiring and
constructing or refinancing the  California State Prison-Kern County
at Delano II.

(c) The sum of two hundred forty-nine million, nine hundred
thousand  dollars ($249,900,000)  shall be available for construction

and equipment of the California State  Prison-Kern County at
Delano II from funds derived from lease-purchasing financing
methods.

(d) Notwithstanding Section 2 of this act, funds derived from the
lease-purchase financing  methods for the California State
Prison-Kern County at Delano II  deposited in the State Treasury,
are hereby continuously appropriated without regard to fiscal year to

the  State Public Works  Board on behalf of the Department of
Corrections for the purpose of  acquiring and constructing  or
refinancing the prison facilities so financed.

(e) It is the intent of the Legislature to expeditiously utilize
federal
grant  funds that have been or  will be awarded to California over a
multi-year period pursuant to the  Federal Violent Crime  Control
and Law Enforcement Act of 1994 to construct the prison
authorized by this item.

(f) The amount appropriated in Item 5240-302-890 shall be used to
either  reimburse any  expenditures charged to this item to construct

the prison, or applied to pay  debt service on the  bonds sold to pay

for the construction of California State Prison-Kern  County at
Delano II.

(g) Of the amount appropriated in (c), 10 percent of the total
project
construction costs shall be  available to meet the state match
requirement for the Federal Funds  received from the Federal
Violent Offender Incarceration and Truth in Sentencing Incentive
grants.

(h) The State Public Works Board and the Department of
Corrections may  obtain interim  financing, including but not limited

to the Pooled Money Investment  Account pursuant to  Sections
16312 and 16313 of the Government Code.

(i) The State Public Works Board may authorize the augmentation of
the  cost of construction of  the project set forth in this section
pursuant to the board's authority under  Government Code  Section
13332.11. In addition, the State Public Works Board may  authorize
any additional  amounts necessary to establish a reasonable
construction reserve and to  pay the cost of financing,  including
the
payment of interest during acquisition or construction of the
project,
the cost of  financing a debt service reserve fund, and the cost of
issuance of permanent  financing for the  project. This additional
amount may include interest payable on any interim  financing
including  the Pooled Money Investment Account pursuant to
Government Code  Section 16312.

(j) Of the funds appropriated in (c) of this item, a maximum of two
million  dollars ($2,000,000)  may be made available to Kern County
for mitigation costs of local  governments, and a maximum  of two
million dollars ($2,000,000) may be made available to the Kern
County Superintendent of  Schools for mitigation costs of school
districts.

5240-490--Reappropriation, Department of Corrections, for the
Transportation Automation  Routing and Scheduling System
(TARSS). Notwithstanding any other  provision of law, the  balance
of appropriation 5240-001-0853/92, reappropriated by  5240-491/94
and 490/95 (Chapter  980/95), is reappropriated for the purposes
provided in the appropriation  and shall be available  until June 30,

1999.

5430-001-0001--For support of the Board of Corrections   . . .
927,000

Schedule:

(a) 11-Corrections Standards and Services  . . . 1,727,000

(b) 21-Standards and Training for Local Officers  . . . 2,333,000


(c) 31.01-Administration  . . . 257,000

(d) 31.02-Distributed Administration  . . . -257,000

(e) Reimbursements  . . . -524,000

(f) Amount payable from the Corrections Training Fund (Item
5430-001-0170)  . . . -2,141,000

(g) Amount payable from the 1988 County Correctional Facilities
Capital  Expenditure and Youth  Facility Fund (Item 5430-001-0796)
. . . -266,000

(h) Amount payable from the Federal Trust Fund Item
5430-005-0890  . . .  -202,000

5430-001-0170--For support of the Board of Corrections, for
payment to  Item 5430-001-0001,  payable from Corrections
Training Fund  . . . 2,141,000

5430-001-0796--For support of the Board of Corrections, for
payment to  Item 5430-001-0001,  payable from the 1988 County
Correctional Facilities Capital Expenditure  and Youth Facility  Fund

. . . 266,000

5430-005-0890--For support of the Board of Corrections, for
payment to  Item 5430-001-0001,  payable from the Federal Trust
Fund (Federal Crime Bill)  . . . 202,000

5430-101-0170--For local assistance, Board of Corrections, Program
21--Standards and Training  for Local Officers, payable from the
Corrections Training Fund  . . .  8,022,000

5430-105-0890--For local assistance, Board of Corrections, Program
11-Corrections Standards  and Services, payable from the Federal
Trust Fund (Federal Crime Bill)  . .  . 14,868,000

Provision:

1. Notwithstanding any other provision of law, the funds
appropriated in  this item shall be  available for expenditure until
June
30, 2000. These funds, which reflect  the allocation of 15% of  the
Federal Fiscal Year 1996 and 1997 Federal Crime Bill expenditure
plan  proposed by the  Administration, shall be allocated by the
Board of Corrections to local  governments to build  and/or expand
adult and juvenile detention facilities, as authorized. Local
entities
shall be   responsible for meeting the 10 percent match requirement.



5430-295-0001--For local assistance, Board of Corrections, for
reimbursement, in accordance  with the provisions of Section 6 of
Article XIII B of the California  Constitution or of Section  17561
of
the Government Code, of the costs of any new program or  increased
level of service of  an existing program mandated by statute or
executive order, State  Controller  . . . 1,847,000

Schedule:

(1) 98.01.022.193--Mandates: Domestic Violence Treatment
Program  Approvals (Ch. 221, Stats.  1993)  . . . 682,000

(2) 98.01.091.379--Mandates: Domestic Violence Diversion (Ch.
913,  Stats. 1979)  . . .  1,165,000

(3) 98.01.033.281--Mandates: Victims' Statements--Minors (Ch.
332,  Stats. 1981)  . . . 0

Provisions:

1. Allocations of funds provided in this item to the appropriate
local
entities shall be made by the  Controller in accordance with the
provisions of each statute or executive  order that mandates the
reimbursement of the costs, and shall be audited to verify the actual

amount  of the mandated costs  in accordance with subdivision (d) of
Section 17561 of the Government  Code. Audit adjustments  to prior
year claims may be paid from this item. Funds appropriated in this
item may be used to  provide reimbursement pursuant to Article 5
(commencing with Section  17615) of Chapter 4 of  Part 7 of
Division 4 of Title 2 of the Government Code.

2. If any of the scheduled amounts are insufficient to provide full
reimbursement of costs, the  Controller may, upon notifying the
Director of Finance in writing, augment  those deficient  amounts
from the unencumbered balance of any other scheduled amounts
therein. No order may  be issued pursuant to this provision unless
written notification of the  necessity therefor is provided  to the
chairperson of the committee in each house which considers
appropriations and the  Chairperson of the Joint Legislative Budget
Committee or his or her  designee.

3. Pursuant to Section 17581 of the Government Code, mandates
identified  in the appropriation  schedule of this item with an
appropriation of $0 and included in the  language of this provision
are  specifically identified by the Legislature for suspension during

the 1997-98  fiscal year:



(a) Victim's Statements--Minor (Ch. 332, Stats. 1981)

5430-490--Reappropriation, Board of Corrections. Notwithstanding
any  other provision of law,  the balances of the appropriations
provided in the following citations are  reappropriated for the
purposes provided for in the appropriations and shall be available
for
expenditure until June 30,  1999.

001-General Fund

(1) Item 5430-001-0001, Budget Act of 1996 (Repeat Offender
Program)

(2) Item 5430-101-0001, Budget Act of 1996 (Juvenile Justice
Grants)

5440-001-0001--For support of the Board of Prison Terms, Program
10  . .  . 13,094,000

5450-001-0001--For support of the Youthful Offender Parole Board,
Program 10  . . . 3,416,000

5460-001-0001--For support of the Department of the Youth
Authority  . .  . 278,578,000

Schedule:

(a) 20-Institutions and Camps  . . . 301,747,000

(b) 30-Parole Services  . . . 43,338,000

(c) 50.01-Administration  . . . 17,932,000

(d) 50.02-Distributed Administration  . . . -17,649,000

(e) Reimbursements  . . . -63,771,000

(f) Amount payable from the 1988 County Correctional Facilities
Capital  Expenditure and Youth  Facility Bond Fund (Item
5460-001-0796)  . . . -154,000

(g) Amount payable from the State Lottery Education Fund (Item
5460-001-0831)  . . .  -1,127,000

(h) Amount payable from the Federal Trust Fund (Item
5460-001-0890)  . .  . -1,475,000

(i) Amount payable from the Federal Trust Fund (Item
5460-005-0890)  (Federal Crime Bill)  . . .  -263,000

Provisions:

1. Of the funds appropriated in Schedule (a), $31,000 is provided for

payment of energy service  contracts in connection with the issuance
of Public Works Board Energy  Efficiency Revenue  Bonds (State
Pool Program), Series 1986A.

2. Notwithstanding any other provision of law, the Director of
Finance may  authorize a loan from  the General Fund to the
Department of the Youth Authority for the  purpose of meeting
operational cash-flow obligations for the 1996-97 or 1997-98 fiscal
years.  The loan shall not  exceed the estimated amount of
reimbursements to be collected, pursuant  to Chapter 6, Statutes  of
1996, for the final quarter of any fiscal year in which the loan is
to be
provided.

5460-001-0796--For support of the Department of the Youth
Authority,  for payment to Item  5460-001-0001, payable from the
1988 County Correctional Facilities  Capital Expenditure and  Youth
Facility Bond Fund  . . . 154,000

5460-001-0831--For support of the Department of the Youth
Authority,  for payment to Item  5460-001-0001, payable from the
California State Lottery Education  Fund--California Youth
Authority   . . . 1,127,000

Provisions:

1. All funds received pursuant to Proposition 37 that are allocable
to
the  Department of the Youth  Authority pursuant to Section 8880.5
of the Government Code and that are  in excess of the  amount
appropriated in this item, are hereby appropriated in augmentation
of
this item. Such  additional funds may be expended only upon written
approval of the  Department of Finance.

5460-001-0890--For support of the Department of the Youth
Authority,  for payment to Item  5460-001-0001, payable from the
Federal Trust Fund  . . . 1,475,000

5460-005-0890--For support of the Department of the Youth
Authority,  for payment to Item  5460-001-0001, payable from the
Federal Trust Fund (Federal Crime Bill)   . . . 263,000

5460-011-0001--For support of the Department of the Youth
Authority  (Proposition 98)  . . .  43,374,000

Schedule:

(a) 20-Institutions and Camps  . . . 43,193,000

(b) 30-Parole Services  . . . 181,000

5460-101-0001--For local assistance, Department of the Youth
Authority   . . . 38,321,000

Schedule:

(a) 20-Institutions and Camps  . . . 92,000

(b) 30-Parole Services  . . . 38,229,000

Provisions:



1. The amount appropriated by this item is provided for the following

purposes:

a. To pay the transportation costs of persons committed to the
Department  of the Youth  Authority to or between its facilities,
including the return of parole  violators; provided, that
expenditures
made under this item shall be charged to either the fiscal year  in
which the claim is  received by the Controller or the fiscal year in
which the warrant is issued  by the Controller.  However, claims
shall
be filed by local jurisdictions within six months after  the end of
the
month  in which the costs are incurred.

b. To reimburse counties, pursuant to Section 1776 of the Welfare
and  Institutions Code, for the  cost of the detention of Youth
    Authority parolees who are detained on  alleged parole
violations,
provided that expenditures made under this item shall be charged to
either  the fiscal year in which  the claim is received by the
Controller
or the fiscal year in which the  warrant is issued by the
Controller.
However, claims shall be filed by local jurisdictions within six
months after the end of  the month in which the costs are incurred.


c. Of the funds appropriated in this item, $32,700,000 shall be used
to  provide support for the  operation of county juvenile camps and
ranches.

5460-301-0001--For capital outlay, Department of the Youth
Authority  . .  . 13,965,000

Schedule:

(1) 60.01.035-Statewide Budget Packages and Advanced Planning  .
. .  250,000

(2) 60.01.070-Statewide: Install Personal Alarm System--Preliminary
plans  and working drawings   . . . 990,000

(3) 60.01.085-Statewide: Perimeter Security Fencing--Preliminary
plans  and working drawings  . .  . 575,000

(4) 60.02.055-Preston School of Industry: Perimeter Security
Fencing--Working drawings and  construction  . . . 1,499,000

(5) 60.02.075-Preston School of Industry: Water Line Replacement
--Preliminary plans and  working drawings  . . . 338,000

(6) 60.26.075-N. A. Chaderjian School: Security
Upgrade--Preliminary  plans, working drawings  and construction  . .

. 983,000

(7) 60.54.090-Fred C. Nelles School: Sewer Line
Replacement--Preliminary plans and working  drawings  . . . 234,000


(8) 60.56.020-Southern Reception Center/Clinic: Integrate Personal
Alarm  System--Working  drawings and construction  . . . 1,119,000


(9) 60.58.070-Ventura School: Special Education Assessment Center
--Preliminary plans and  working drawings  . . . 122,000

(10) 60.58.075-Ventura School: Free Venture Corridor--Preliminary
plans  and working drawings   . . . 325,000

(11) 60.67.075-Heman G. Stark/Youth Training School: Construct
Correctional Treatment  Center Space--Preliminary plans and
working drawings  . . . 102,000

(12) 60.67.080-Heman G. Stark/Youth Training School: Living Unit
Doors, Units 1/111--  Preliminary plans and working drawings  . . .
378,000

(13) 60.67.095-Heman G. Stark/Youth Training School: Additional
Free  Venture Work  Space--Preliminary plans and working drawings
. . . 75,000

(14) 60.67.100-Heman G. Stark/Youth Training School: Perimeter
Security Fence--Preliminary  plans, working drawings and
construction  . . . 1,800,000

(15) 60.67.105-Heman G. Stark/Youth Training School: Modify
Window  Screens--Preliminary  plans, working drawings and
construction  . . . 550,000

(16) 60.67.110-Heman G. Stark/ Youth Training School: Master
Key  System--Preliminary plans,  working drawings and construction
. . . 1,125,000

(17) 60.90.010-Minor Projects  . . . 3,500,000

Provisions:

1. The funds appropriated in Schedule (1) shall be allocated by the
Department of the Youth  Authority, upon approval of the
Department of Finance, to develop design  and cost information  for
new projects for which funds have not been previously appropriated,
but for which preliminary  plans funds, working drawings funds, or
working drawing or construction  funds are expected to  be included
in the Governor's Budget for the 1998-99 or 1999-2000 fiscal  year,
and for which  cost estimates and/or preliminary plans can be
developed prior to legislative  hearings on the  Governor's Budget
for
the 1998-99 or 1999-2000 fiscal year. These funds  may be used for
the  following: budget package development, architectural
programming,  engineering assessments,  schematic design, and
preliminary plans. The amount appropriated in this  item for these
purposes  shall not be construed as a commitment by the Legislature
as to the amount  of capital outlay funds  it will appropriate in any

future year.

5460-301-0660--For capital outlay, Department of the Youth
Authority  payable from the Public  Building Construction Fund,
from proceeds from the sale of bonds,  negotiable notes or negotiable

bond anticipation notes for the construction of Department of Youth
Authority institution facility  projects in this item pursuant to
Chapter
3.1 (commencing with Section  15819.1) of Part 10b of  Division 3
of the Government Code  . . . 8,382,000

Schedule:

(1) 60.02.065-Preston School of Industry: New Boiler
Room--Construction  . . . 1,913,000

(2) 60.52.075.960-El Paso de Robles School: New
Infirmary--Construction   . . . 2,687,000

(3) 60.54.050-Fred C. Nelles School: Maintenance
Building--Construction   . . . 2,582,000

(4) 60.67.015.960-Heman G. Stark/ Youth Training School:
Vocational  Auto/Body  Shop--Construction  . . . 700,000

(5) 60.67.095-Heman G. Stark/Youth Training School: Additional
Free  Venture Work  Space--Construction  . . . 500,000

Provisions:

1. Notwithstanding any other provision of law, the State Public
Works  Board may issue  lease-revenue bonds, notes or bond
anticipation notes pursuant to Chapter  5 (commencing with  Section
15830) of Part 10b of Division 3 of Title 2 of  the Government  Code
to finance the  construction, equipment and other costs relating to
the
construction  authorized by this item.

2. The State Public Works Board and the Department of the Youth
Authority may obtain interim  financing including, but not limited to

the Pooled Money Investment  Account pursuant to  Sections 16312
and 16313 of the Government  Code for the project costs  authorized
in this item.

3. The State Public Works Board may authorize the augmentation of
the  cost of construction of  the project set forth in this section
pursuant to the board's authority under  Section 13332.11. In
addition, the State Public Works Board may authorize any additional
amounts necessary to  establish a reasonable construction reserve and

to pay the cost of financing,  including the payment  of interest
during construction of the project, the cost of financing a debt
service reserve fund, and  the cost of issuance of permanent
financing
for the project. This additional  amount may include  interest
payable
on any interim financing including the Pooled Money  Investment
Account  pursuant to Section 16312.

4. The maximum amount of bonds, notes, or bond anticipation notes
to be  sold shall not exceed  the cost of construction and any
additional amounts necessary to pay  interim and permanent
financing costs.

5. In the event the bonds authorized for the project are not sold,
the
Department of the Youth  Authority shall commit a sufficient portion
of its support appropriation  provided for in this act to  repay any
loans for interim financing. It is the intent of the Legislature that
  this
commitment shall  be included in future Budget Acts until
outstanding loans for interim  financing are repaid either  through
the
sale of bonds or from an appropriation.

5460-301-0890--For capital outlay, Department of the Youth
Authority,  for payment to Item  5460-302-0001, payable from the
Federal Trust Fund  . . . 27,608,000

Provisions:

1. Notwithstanding Section 2.00 of this Act, funds appropriated in
this item  shall be available until  June 30, 2001.

2. The amounts appropriated in this item represent federal funds
received  from the Violent  Offender Incarceration and Truth in
Sentencing Incentive grants as  reflected in item 5991-401.

5460-302-0001--For capital outlay, Department of the Youth
Authority  . .  . 3,068,000

Schedule:

(1) 60.02.070-Preston School of Industry: 50-Room Living
Unit--Preliminary plans, working  drawings and construction  . . .
4,861,000

(2) 60.26.060-DeWitt Nelson School: 100-Room Living
Unit--Preliminary  plans, working  drawings and construction  . . .
8,134,000

(3) 60.52.085-El Paso de Robles School: 50-Room Living
Unit-Preliminary  plans, working  drawings and construction  . . .
4,861,000

(4) 60.54.085-Fred C. Nelles School: 100-Room Living
Unit--Preliminary  plans, working  drawings and construction  . . .
8,134,000

(5) 60.56.035.960-Southern Reception Center/Clinic: 50-Room
Intensive  Treatment Living  Unit-Working drawings and
construction  . . . 4,686,000

(6) Amount payable from the Federal Trust Fund (Item
5460-301-0890)  . .  . -27,608,000

Provisions:

1. Notwithstanding Section 2.00 of this Act, funds appropriated in
this item  shall be available until  June 30, 2001.

2. Of the amounts appropriated in this item, $3,068,000 shall be used

for  the required state match  (10 percent) for federal funds
received
from the Violent Offender  Incarceration and Truth in  Sentencing
Incentive grants as reflected in item 5991-401.

5591-401--Federal Crime Bill Program. It is the intent of the
Legislature to  maximize the  California receipt of federal grant
funds
available pursuant to the Federal  Violent Crime Control  and Law
Enforcement Act of 1994. It is also the intent to expeditiously
utilize
these federal grant  funds.

  All funds received by the State for this specific federal program
will
be  deposited by the  Department of Corrections into a separate
Federal Trust Fund Account to  be established for this  purpose.

  The following table reflects a five-year plan for receipt of
federal
moneys,  the expenditures by  department and the estimated reserve
for contingencies.

(A) State Operations



Department of Corrections  . . . 7,960,950



Department of the Youth Authority  . . . 964,000



Board of Corrections  . . . 1,890,000

(B) Local Assistance



Board of Corrections  . . . 63,000,000

(C) Capital Outlay



Department of Corrections  . . . 265,365,000



Department of the Youth Authority  . . . 27,608,000

(D) Reserve    . . . 52,965,050

        Totals  . . . $419,753,000

  The Legislature supports this plan and any additional federal funds

received pursuant to the  Federal Violent Crime Control and Law
Enforcement Act of 1994 are not  subject to reporting  requirements
of Section 28.00 of this Act.

  The appropriation items for 1997-98 are reflected in the
Department of  Corrections (5240),  Department of the Youth
Authority (5460) and the Board of Corrections  (5430).

                              EDUCATION

6110-001-0001--For support of Department of

Education

32,895,000

Schedule:

(a) 10-Instruction  . . . 37,520,000

(b) 20-Instructional Support  . . . 50,421,000

(c) 30-Special Programs  . . . 34,082,000

(d) 41.00-Executive Management and Special Services  . . .
9,603,000

(e) 41.01-State Board of Education  . . . 1,212,000

(f) 42.01-Department Management and Special Services  . . .
25,044,000

(g) 42.02-Distributed Department Management and Special Services
. . .  -25,044,000

(h) Reimbursements  . . . -12,945,000

(i) Amount payable from Federal Trust Fund (Item 6110-0010890)  .
. .  -86,998,000

Provisions:

1. An amount equal to or greater than the amount appropriated in
Schedule  (e) shall be available  for support of the State Board of
Education.

2. Notwithstanding Sections 33190 and 51219 of the Education
Code, or  any other provision of  law, the State Department of
Education shall expend no funds to prepare  (a) a statewide summary
of student performance on school district proficiency assessments or
(b) a  compilation of  information on private schools with five or
fewer students.

3. Of the amount appropriated by this item, $74,000 shall be
expended for  staff in the  department's Program Evaluation and
Research Division to (a) review and  approve studies and  program
evaluations and (b) assist in contract management.

4. Of the funds appropriated in this item, $90,000 shall be available

only for  Educational  Technology support services pursuant to
Section 51874 of the Education  Code and for the  expenses incurred
by members of the Education Council for Technology in  Learning in
carrying  out their duties.

5. Notwithstanding any other provision of law, of the funds
appropriated in  this item, $2,500,000  shall be used to provide
technical assistance and administrative support to  the Healthy Start

Program and $240,000 shall be used to provide technical assistance
and  administrative support for  the Teen Pregnancy Prevention and
Intervention Program (Art. 1  (commencing with Sec. 8800),  Ch. 5,
Part 6, Ed. C.).

6. Of the funds appropriated by this item, $300,000 and two
positions shall  be available only for  planning and implementation
of
the focus schools program authorized by  Chapter 6.1  (commencing
with Section 52050) of Part 28 of the Education Code.

7. Funds appropriated by this item may be expended or encumbered
to  make one or more  payments under a personal services contract
of a visiting educator pursuant  to Section 19050.8 of  the
Government Code, a long-term special consultant services contract,
or  an employment  contract between an entity that is not a  state
agency and a person who is  under the direct or daily  supervision of

a state agency, only if all of the following conditions are  met:

(a) The person providing service under the contract provides full
financial  disclosure to the Fair  Political Practices Commission in
accordance with the rules and regulations  of the commission.

(b) The service provided under the contract does not result in the
displacement of any represented  civil service employee.

(c) The rate of compensation for salary and health benefits for the
person  providing service under  the contract does not exceed by
more than 10 percent the current rate of  compensation for salary
and health benefits determined by the Department of Personnel
Administration for civil service  personnel in a comparable position.

The payment of any other  compensation or any  reimbursement for
travel or per diem expenses shall be in accordance with  the State
Administrative Manual and the rules and regulations of the State
Board of  Control.

8. Of the funds appropriated in this item, $2,428,086 is for the
purposes of  a pupil testing  program. Of this amount, $300,000 is
available only to fund education  consultant-level positions  to
develop the statewide test and upon certification by the State Board
of  Education to the  Director of Finance that the content and
performance standards, as defined  in Section 60603 of  the
Education Code for language arts and mathematics have been
adopted  pursuant to Section  60605 of the Education Code.

9. Of the funds appropriated by this item, $150,000 shall be used for

the  Gang Risk Intervention  Program (Ch. 5 (commencing with Sec.
58700), Pt. 31, Ed. C.).

10. The funds appropriated in Schedule (e) shall be for the support
of
the  State Board of  Education and shall be directed to meet the
policy priorities of its members.

11. The funds appropriated by this item may not be expended for any
REACH program.

12. The funds apropriated by this item may not be expended for the
development or dissemination  of program advisories, including, but
not limited to, program advisories on  the subject areas of  reading,

writing, and mathematics, unless explicitly authorized by the State
Board of Education.

13. Of the funds appropriated in this item, $206,000 shall be
available
as  matching funds for the  Department of Rehabilitation and provide
coordinated services to disabled  pupils. Expenditure of  the funds
shall be identified in the memorandum of understanding or other
written agreement with  the Department of Rehabilitation to ensure
an appropriate match to federal  vocational  rehabilitation funds.


14. Of the funds appropriated in this item, no less that $4,109,000
shall be  available for support of  Child Care Services (Program
30.10). This amount represents an  augmentation of $781,000 over
the 1996-97 base for these purposes.

15. Of the amounts included in Schedule (h) reimbursements,
$226,000 is  for a one-time  evaluation of the Trustline Registry
operated by the Department of Social  Services.

6110-001-0178--For support of the Department of Education,
Program  20.30--Instructional  Support, for the purpose of
conducting schoolbus driver instructor training  as provided in
Section  40070 of the Education Code, payable from the Driver
Training Penalty  Assessment Fund  . . .  1,094,000

Provisions:

1. Of the funds appropriated in this item, $100,000 shall be
available
only  for the purchase of a  schoolbus with automatic transmission.
If
any portion of that amount is not  needed for purchase  of the
schoolbus, it shall revert to the General Fund.

6110-001-0231--For support of Department of Education, Program
20.10.045-Instructional  Support, payable from the Health Education
Account, Cigarette and  Tobacco Products Surtax  Fund  . . .
970,000

6110-001-0344--For support of Department of Education, Program
20.30  Administrative  Services to local educational agencies,
payable
from the State School  Building Lease-Purchase  Fund  . . .
1,515,000

Provisions:

1. Funds appropriated by this item are for support of the activities
of
the  School Facilities  Planning Division and are to be used
exclusively for activities related to  local school construction,
reconstruction, rehabilitation, modernization, maintenance, deferred
maintenance, year-round  school programs, and schoolsite
acquisition.

6110-001-0687--For support of Department of Education, for the
California State Agency for  Donated Food Distribution, Program
30.50--Food Distribution, payable  from the Donated Food
Revolving Fund  . . . 9,117,000

6110-001-0890--For support of Department of Education, for
payment to  Item 6110-001-0001,  payable from the Federal Trust
Fund  . . . 86,998,000

Provisions:

1. The funds appropriated by this item include Federal Vocational
Education Act funds for the  1997-98 fiscal year to be transferred to

the California Community Colleges  by means of  interagency
agreements. These funds shall be used by the California  Community
Colleges for the  administration of vocational education programs.



2. Of the funds appropriated by this item, $52,000 is available to
the
Advisory Commission on  Special Education for the in-state travel
expenses of the commissioners and  the secretary to the  commission.




3. Of the funds appropriated by this item, $382,000 is available for
programs for homeless youth  and adults pursuant to the federal
Stewart B. McKinney Act. The  department shall participate on  the
Health and Welfare Agency Homeless Task Force and shall consult
with the Departments of  Economic Opportunity, Mental Health,
Housing and Community  Development, and Economic
Development in operating this program.

4. Of the funds appropriated by this item, up to $364,000 shall be
used to  provide in-service  training for special and regular
educators
and related persons, including,  but not limited to,  parents,
administrators, and organizations serving severely disabled
children.
These funds are also  to provide up to four positions for this
purpose.


5. Of the funds appropriated by this item, $318,000 shall be used to
provide training in culturally  nonbiased assessment and specialized
language skills to special education  teachers through  Second
Language Immersion Institutes.

6. Of the amount appropriated by this item, $177,000 shall be used
for the  administration of the  federal public charter schools grant
program.

7. Of the funds appropriated in this item, $4,831,000 is for the
administration of programs funded  with federal Goals 2000 funds.
Funds shall be allocated for the following  purposes:

(a) $500,000 for general administration of Goals 2000 funds and for
the  administration of grants  to implement local improvement plans.



(b) $319,000 for the staff development activities related to
integrating  standards, assessment,  instruction and curriculum.

(c) $562,000 for administration of Family-School Partnership grants.



(d) $500,000 for the development and distribution of documents and
training modules which  assist schools in developing and
implementing a balanced comprehensive  reading program  pursuant
to the Department of Education's 1996 reading program advisory
"Teaching Reading."

(e) $293,000 to publish and print the Mathematics,
English-Language Arts  and Foreign Language  Curriculum
Frameworks.

(f) $250,000 to monitor the implementation and effectiveness of state

educational policies in  mathematics in the elementary grades.

(g) $140,000 to hire a contultant to improve the instruction and
learning of  math in the middle  grade levels.

(h) $1,407,000 for transfer to and support of the Commission for the
Establishment of Academic  Content and Performance Standards and
its work in developing standards.

(i) $200,000 for transfer to the Office of Child Development and
Education  in support of the  Academic Volunteer and Mentor
Services Program.

(j) $660,000 for transfer to the Commission on Teacher
Credentialing for  completion of an  assessment of teachers' reading
competency.

8. Of the funds appropriated in this item, $7,146,000 is from the
Child Care  and Development  Block Grant Fund and includes
$226,000 for the costs of fingerprint  services for the Trustline
Registry to the Department of Justice and $158,000 for an
Interagency  Agreement with the Child  Development Programs
Advisory Committee.

6110-001-0975--For support of Department of Education, Program
20.40.040--Library and  Learning Resources, payable from the
California Public School Library  Protection Fund  . . .  15,000


Provisions:

1. Subject to the conditions of Article 6 (commencing with Section
18175)  of Chapter 2 of Part 6  of the Education Code, and based on
increases in the funds deposited in the  California Public  School
Library Protection Fund, the appropriation made by this item may  be
increased subject to  the approval of the Department of Finance.


6110-002-0001--For support of Department of Education, for
transfer by  the Controller to the  School Safety Account, Program
20.60.020.009--School Violence  Reduction, pursuant to Article  3.5
(commencing with Section 32230) of Chapter 2 of Part 19 of
Division  1 of Title 1 of the  Education Code and Section 11489 of
the Health and Safety Code  . . .  90,000

6110-003-0001--For support of Department of Education, Program
20.30.020-Instructional  Support, Standardized Account Code
Structure  . . . 824,000

Provisions:

1. The funds appropriated by this item shall be used only for the
direct  costs to administer the  Standardized Account Code Structure
program, as established by Chapter  237 of the Statutes of  1993, to
assist any school district or county office of education in financial

distress or bankruptcy,  to make available standard fiscal,
demographic, and performance data to  policy decision makers,  and
for indirect costs for those programs at the rate approved by the
United States Department of  Education.

6110-004-0001--For support of Department of Education, Program
20.60.020-Instructional  Support, School Crime Report  . . .
1,222,000

Provisions:

1. Of the funds appropriated by this item, $221,000 shall be
available
to the  State Department of  Education for training and monitoring
activities associated with the school  crime reporting  program
pursuant to Chapter 1.2 (commencing with Section 628) of Title  15
of Part 1 of the  Penal Code. The funds described in this provision
shall be used only for the  direct costs to  administer that school
crime reporting program, and for indirect costs of  the program at
the
rate  approved by the United States Department of Education.

2. Of the funds appropriated by this item, $1,001,000 shall be
allocated by  the State Department  of Education to the Butte County
Office of Education pursuant to a  contract entered into between  the

department and the Butte County of Education for the performance
of  other activities  associated with the school crime reporting
program identified in Provision  1.

6110-005-0001--For support of Department of Education, as
allocated by  the Department of  Education to the State Special
Schools, Program 10.60.040  . . .  22,507,000

Schedule:

(a) 10.60.040-Instruction  . . . 23,094,000

(1) 10.60.040.001-School for the Blind, Fremont  . . . 3,566,000


(2) 10.60.040.002-School for the Deaf, Fremont  . . . 10,189,000


(3) 10.60.040.003-School for the Deaf, Riverside  . . . 9,339,000


(b) Reimbursements  . . . -587,000

Provisions:

1. Of the amount appropriated by this item, $362,000 shall be
available for  the assessment centers  at the State Special Schools.


2. Of the amount appropriated by this item, $358,000 shall be used
for the  provision of a  four-week extended session in the State
Special Schools for the Deaf in  Fremont and Riverside  and the State

Special School for the Blind in Fremont.

3. Of the amount appropriated by this item, up to $13,000 is
provided for  payment of energy  service contracts in connection with

the issuance of Energy Conservation  Efficiency Revenue  Bonds.

6110-006-0001--For support of Department of Education
(Proposition  98), as allocated by the  Department of Education to
the State Special Schools  . . . 25,906,000

Schedule:



(a) 10.60.040-Instruction, State Special Schools  . . . 30,280,000


(1) 10.60.040.001-School for the Blind, Fremont  . . . 3,586,000


(2) 10.60.040.002-School for the Deaf, Fremont  . . . 9,933,000

(3) 10.60.040.003-School for the Deaf, Riverside  . . . 9,136,000


(4) 10.60.040.004-Diagnostic Center, North  . . . 2,675,000

(5) 10.60.040.005-Diagnostic Center, South  . . . 2,587,000

(6) 10.60.040.006-Diagnostic Center, Central  . . . 2,363,000

(b) Reimbursements  . . . -4,252,000

(c) Amount payable from the Lottery Education Fund (Item
6110-006-0814)  . . . -122,000

Provisions:

1. On or before January 15 of each year, the superintendent of each
State  Special School shall  report to each school district the
number
of pupils from that district who  are attending a State  Special
School
and the estimated payment due on behalf of the district for  those
pupils pursuant  to Section 59300 of the Education Code. The
Controller shall withhold  from the State School  Fund in the first
principal apportionment of that fiscal year the amount due  from each

school  district, as reported to the Controller by the Superintendent

of Public  Instruction. The amount  withheld shall be transferred
from
the State School Fund to this item. The  Superintendent of  Public
Instruction is authorized to adjust the estimated payments required
after the close of the  fiscal year by reporting to the Controller
the
information needed to make  the adjustment.

2. Of the funds appropriated by this item, $552,000 shall be used for

the  provision of a four-week  extended session in the State Special
Schools for  the Deaf in Fremont and  Riverside and the State
Special School for the Blind in Fremont.

6110-006-0814--For support of Department of Education, for
payment to  Item 6110-006-0001,  payable from the Lottery
Education Fund  . . . 122,000

Provisions:

1. All funds received pursuant to Proposition 37 that are allocable
to
the  State Special Schools  pursuant to Section 8880.5 of the
Government Code, and that are in excess  of the amount
appropriated in this item, are hereby appropriated in augmentation of

this  item.

6110-007-0001--For support of Department of Education, Program
20.20.010-Instructional  Materials Management and Distribution  . . .

100,000

Provisions:

1. Funds appropriated by this item shall be used only for direct
costs
to  conduct biennial state  adoptions of basic instructional
materials
pursuant to Section 60200 of the  Education Code and  for indirect
costs for that purpose at the rate approved by the United States
Department of  Education.

6110-008-0001--For support of Department of Education, as
allocated by  the Department of  Education to the State Special
Schools for student transportation  allowances, Program 10.60.040
. . . 436,000

Provisions:

1. Funds appropriated by this item are in lieu of funds that
otherwise
would  be transferred from  the General Fund to Section A of the
State School Fund in accordance  with Sections 14007 and  41301.5
of the Education Code.

6110-009-0001--For support of the Department of Education,
Program  20.10-Curriculum  Services  . . . 82,000

Provisions:

1. Funds appropriated by this item shall be used only for direct
costs
to  employ a reading  specialist (consultant level) to improve
reading
in the elementary grade  levels and for indirect  costs for that
purpose
at the rate approved by the United States  Department of Education.


6110-011-0001--For support of Department of Education, Program
10.10-School  Apportionments, Principal Apportionments System  . .
. 1,440,000

Provisions:

1. No funds shall be expended from this item unless the Department
of  Finance and the  Department of Information Technology have
approved the Request For  Proposal (RFP) prepared  by the
Department of Education, prior to the RFP being submitted to
prospective contractors for  this project.

6110-013-0001--For support of Department of Education, Program
10.10-Audit Resources  . . .  475,000

Provisions:

1. Notwithstanding any other provision of law, no funds shall be
expended  from this item without  prior approval from the
Department of Finance.

6110-015-0001--For support of Department of Education, Program
20.20.020--Instructional  Materials Management and Distribution  . .

. 370,000

Provisions:

1. Funds appropriated by this item are for transfer by the
Controller,
to the  State Instructional  Materials Fund, for allocation during
the
1997-98 fiscal year pursuant to  Article 3 (commencing  with Section
60240) of Chapter 2 of Part 33 of the Education Code. These  funds
shall be  transferred to the State Instructional Materials Fund by
the
Controller in  amounts claimed by the  Department of Education.

2. Funds appropriated by this item for the Instructional Materials
Management and Distribution  Program shall be transferred for direct
disbursement by the Department of  Education from the  State
Instructional Materials Fund.

6110-021-0001--For support, Department of Education, Program
30.20--Child  Nutrition--Nutrition Education Projects  . . . 601,000



6110-101-0231--For local assistance, Department of Education,
Program  20.10.045-Instructional  Support, for county offices of
education, payable from the Health  Education Account, Cigarette
and Tobacco Products Surtax Fund  . . . 2,500,000

6110-101-0349--For local assistance, Department of Education,
Program  20-Instructional  Support, for allocation to the Fiscal
Crisis
and Management Assistance  Team for the purpose of  administering
the California School Information Services program  . . .  10,040,000



Provisions:

1. Of the amount appropriated by this item, $800,000 shall be for
purposes  of implementing the  Student-Friendly Services Through
Technology project.

6110-101-0814--For local assistance, Department of Education,
Program  10.10, for allocation by  the State Controller in accordance

with Government Code Section 8880.5,  as enacted by the  voters in
Proposition 37 at the November 1984 general election,  payable
from the California  State Lottery Education Fund  . . . 581,872,000



Provisions:

1. All funds received pursuant to Proposition 37 that are allocable
to
local  education agencies that  serve pupils in kindergarten or any
of
grades 1 to 12, inclusive, pursuant to  Section 8880.5 of the
Government Code, and that are in excess of the amount appropriated
in  this item, are hereby  appropriated in augmentation of this item.



6110-101-0890--For local assistance, Department of Education, Title
VI of  the Elementary and  Secondary Education Act, payable from
the Federal Trust Fund  . . .  31,416,000

Schedule:

(a) 10-Instruction  . . . 31,137,000

(b) 20-Instructional support  . . . 279,000

6110-101-0975--For local assistance, Department of Education,
Program  20.40.040--Library and  Learning Resources, payable from
the California Public School Library  Protection Fund  . . .  345,000



Provisions:

1. Subject to the conditions of Article 6 (commencing with Section
18175)  of Chapter 2 of Part  11 of the Education Code, and based
on increases in the funds deposited in  the California Public  School

Library Protection Fund, the appropriation made by this item may  be
increased subject to  the approval of the Department of Finance.


6110-102-0001--For local assistance, Department of Education, for
transfer to the School Safety  Account, Program
20.60.020.009--School Violence Reduction, pursuant to  Article 3.5
(commencing with Section 32230) of Chapter 2 of Part 19 of
Division 1 of  Title 1 of the  Education Code and Section 11489 of
the Health and Safety Code  . . .  2,970,000

6110-102-0231--For local assistance, Department of Education,
Program  20.10.045-Instructional  Support, for local assistance,
payable from the Health Education Account,  Cigarette and Tobacco
Products Surtax Fund  . . . 31,937,000

6110-102-0890--For local assistance, Department of  Education,
Program  20.60.038-Learn and  Serve America Program, payable
from the Federal Trust Fund  . . .  2,131,000

6110-103-0001--For local assistance, Department of Education
(Proposition 98), Program  10.10.001.005--School Apportionments
for transfer to Section A of the  State School Fund, for  the
purposes
of Section 8152 of the Education Code  . . . 8,256,000

Provisions:

1. Notwithstanding Section 8154 of the Education Code, or any
other  provision of law, the funds  appropriated by this item shall
be
the only funds available for and allocated  by the Superintendent  of

Public Instruction for the apprentice  programs operated by school
districts and county offices  of education.

2. Notwithstanding Section 8152 of the Education Code, each
60-minute  hour of teaching time  devoted to each indentured
apprentice enrolled in and attending classes of  related and
supplemental instruction as provided under Section 3074 of the
Labor  Code shall be reimbursed  at the rate of $4.22 per hour. For
purposes of this provision,  each hour of  teaching time may  include

up to 10 minutes for passing time and breaks.

3. No school district or county office of education shall use funds
allocated  pursuant to this item  to offer any new or expanded
apprentice program unless the program has  been approved by the
Superintendent of Public Instruction.

4. The Superintendent of Public Instruction shall report to the
Department  of Finance and the  Legislature not later than October 1,

1997, on the amount of funds  expended for and the hours of  related
and supplemental instruction offered in the apprentice program
during the 1996-97 fiscal  year, with information to be provided by
the school district, county office  of education, program  sponsor,
and trade. Expenditure information shall distinguish between  direct
and indirect costs,  including administrative costs funded for the
State Department of  Education, school districts, and  county offices

of education. In addition, the report shall identify the hours  of
related and  supplemental instruction proposed for the 1997-98 and
1998-99 fiscal  years by the school district,  county office of
education, program sponsor, and trade. As a condition of  receiving
funds for the  apprenticeship program, school districts and county
offices of education  shall report to the  Superintendent of Public
Instruction the information necessary for the  completion of this
report.

5. Notwithstanding Article 8 (commencing with Section 8150) of
Chapter  1 of Part 6 of the  Education Code, or any other provision
of law, the total number of hours  eligible for state  reimbursement
in
apprentice programs operated by school districts and  county offices
of  education shall be limited to an amount equal to the amount of
the total  appropriation made by  this item divided by the hourly
rate
specified in Provision 2. The  Superintendent of Public  Instruction
shall have the authority to determine which apprentice  programs,
and which hours  offered in those programs, are eligible for
reimbursement.

6110-103-0890--For local assistance, Department of Education,
Program  41.20.030--Robert C.  Byrd Honors Scholarship Program,
payable from the Federal Trust Fund  .  . . 3,440,000

6110-104-0001--For local assistance, Department of  Education
(Proposition 98), Program  10.10.011--School Apportionments, for
transfer to Section A of the State  School Fund, for  summer school
programs pursuant to Section 42239 of the Education  Code  . . .
158,904,000

Schedule:

(a) Program 10.10.011.003-School apportionments, for remedial
summer  school programs, for  the purposes of Section 42239 of the
Education Code  . . . 53,617,000

(b) Program 10.10.011.004-School apportionments, for core
academic  summer school programs,  for the purposes of Section
42239 of the Education Code  . . . 105,287,000

  Provisions:

1. Notwithstanding paragraph (1) of subdivision (e) of Section 42239
of  the Education Code, or  any other provision of law, for the
1997-98 fiscal year a school district's  maximum entitlement for
pupil attendance in summer school programs offered pursuant to
paragraph  (2) of subdivision (d)  of Section 42239 of the Education
Code shall be an amount equal to 7  percent of the district's
enrollment for the prior year, times 120 hours, times the hourly rate

for the  1997-98 fiscal year  determined pursuant to Provision 4.


2.Notwithstanding subdivision (e) of Section 42239 of the Education
Code, for the 1997-98 fiscal  year the Superintendent of Public
Instruction shall allocate a minimum of  $6,494 for supplemental
summer school programs in each school district for which the prior
fiscal  year enrollment was less  than 500 and that, in the 1997-98
fiscal year, offers at least 1,500 hours of  supplemental summer
school instruction. A small school district, as described above, that

offers  less than 1,500 hours of  supplemental summer school
offerings shall receive a proportionate  reduction in its allocation.
For
the purpose of this provision, supplemental summer school programs
shall  be defined as programs  authorized under paragraph (2) of
subdivision (d) of Section 42239 of the  Education Code.

3. (a) Notwithstanding paragraph (1) of subdivision (e) of Section
42239 of  the Education Code,  or any other provision of law, the
Superintendent of Public Instruction shall  reallocate to any  school

district any unexpended balance of the appropriations made for the
1997-98 fiscal year for  reimbursement for actual pupil attendance in

summer school programs  authorized under  paragraph (2) of
subdivision (d) of Section 42239 of the Education Code.  In no event
shall any  district receive reimbursement for pupil attendance in
summer school  programs in excess of 10  percent of the district's
enrollment for the prior year, multiplied by 120  hours, multiplied
by
the  hourly rate for the 1997-98 fiscal year determined pursuant to
Provision 4.

(b) After any reallocation is made pursuant to subdivision (a) of
this
provision, the Superintendent  of Public Instruction shall reallocate

any unexpended balance of the  appropriation specified in  Schedule
(b) of this item in the following priority:

(1) For the purposes of funding any deficiencies, for the 1997-98
fiscal  year, in remedial summer  school programs authorized
pursuant to paragraph (1) of subdivision (d) of  Section 42239 of the

Education Code.

(2) For the purposes of funding general vocational work experience
education for the 1997-98  fiscal year authorized pursuant to
paragraph (3) of subdivision (d) of  Section 42239 of the  Education
Code.

4. For the 1997-98 fiscal year, allocations for summer school
attendance  shall be based on hourly  rates calculated pursuant to
subdivisions (a) and (c) of Section 42239 of  the Education Code,
reduced by the deficit factor described in Section 42238.145 of the
Education Code.

6110-105-0001--For local assistance, Department of Education
(Proposition 98), Program  10.10.004-- School Apportionments,
Regional Occupational Centers and  Programs, for transfer  to
Section A of the State School Fund for the purposes of Article 1
(commencing with Section  52300) of Chapter 9 of Part 28 of the
Education Code  . . . 271,694,000

Schedule:

(a) 10.10.004-Instruction  . . . 272,855,000

(b) Reimbursements  . . . -1,161,000

Provisions:

1. Notwithstanding any provision of law to the contrary, the funds
appropriated by this item are  for transfer by the Controller to
Section A of the State School Fund, in lieu  of the amount that
otherwise would be appropriated for transfer from the General Fund
in the  State Treasury to  Section A of the State School Fund for the

1997-98 fiscal year pursuant to  Sections 14002 and  14004 of the
Education Code, in an amount as needed for apportionment
pursuant to Article 1  (commencing with Section 52300) of Chapter
9 of Part 28 of the  Education Code.

2. Funds appropriated by this item shall be apportioned by the
Superintendent of Public  Instruction pursuant to Article 1.5
(commencing with Section 52335) of  Chapter 9 of Part 28 of  the
Education Code.

3. Because Chapter 482 of the Statutes of 1984 was chaptered after
Chapter 268 of the Statutes  of 1984, the Legislature's intent
regarding the eligibility of regional  occupational centers and
programs for incentive funding for a longer instructional year under
Section  46200 of the  Education Code was not carried out. It is the
intent of the Legislature that  regional occupational  centers and
programs not be eligible for that incentive funding.

   Notwithstanding any other provision of law to the contrary, none
of the  funds appropriated by  this item are for the purposes of
providing or continuing incentive funding  for a longer
instructional
year pursuant to Section 46200 of the Education Code.

4. Notwithstanding any other provision of law, funds appropriated by
this  item for average daily  attendance (ADA) generated by
participants in the Greater Avenues for  Independence (GAIN)
program established in Article 3.2 (commencing with Section 11320)
of  Chapter 2 of Part 3 of  Division 9 of the Welfare and
Institutions
Code may be apportioned on an  advance basis to local  education
agencies based on anticipated units of ADA if a prior application
for
this additional  ADA funding has been  approved by the
Superintendent of Public  Instruction.

5. Of the amount appropriated by this item, $1,161,000 is to fund
remedial  education services for  participants in the GAIN program.



6110-107-0001--For local assistance, Department of Education
(Proposition 98), Program  10.10--County Offices of Education
Fiscal Oversight  . . . 3,750,000

Schedule:

(a) 10.10.002-COE Oversight  . . . 1,500,000

(b) 10.10.005-FCMAT  . . . 1,600,000

(c) 10.10.015-Interim Reporting  . . . 150,000

(d) 10.10.016-Staff Development  . . . 500,000

Provisions:

1. The funds appropriated in Schedule (a) of this item are for the
purposes  provided in paragraph   (1) of subdivision (a) of Section
29
of Chapter 1213 of the Statutes of  1991.

2. Of the funds appropriated in Schedule (b) of this item, $1,100,000

shall  be allocated to a  selected county office of education to meet

the costs of participation under  Section 42127.8 of  the Education
Code.

   The remaining $500,000 appropriated in Schedule (b) shall be
allocated  to FCMAT for the  purpose of making comparable
standardized financial, as well as other local  education agency,
information available to the local education agencies and the public,

through the use of computer  technology.

3. The funds appropriated in Schedule (c) of this item are for the
increased  responsibility of  county offices of education for
oversight
of school districts with audit  exceptions, districts with  qualified
or
negative interim reports, districts that may be unable to meet
financial obligations for  the current or subsequent two years, or
districts with disapproved budgets,  as provided under  Chapter 924,
Statutes of 1993. Allocation of such funds shall be  administered by
the Fiscal Crisis  and Management Assistance Team (FCMAT) on a
reimbursement basis  and all reimbursements  shall be subject to the
approval of both the Department of Finance and the  Department of
Education.

4. The funds appropriated in Schedule (d) of this item are for the
purpose  of staff development of  local education agency school
finance and business personnel. Allocations  for this purpose shall
be
administered by the FCMAT.

5. The funds appropriated by this item shall be allocated in
accordance with  the above schedule  unless a revision to the
allocations contained herein has been approved by  the Department
of  Finance. The Department of Finance may not authorize any such
revision  sooner than 30 days  after notification in writing of the
necessity therefor to the chairperson of  the committee in each
house
that considers appropriations and the Chairperson of the Joint
Legislative Budget  Committee, or not sooner than whatever lesser
time the chairperson of the  joint committee, or his  or her
designee,
may in each instance determine.

6110-109-0001--For local assistance, Department of Education
(Proposition 98), Program  20.60--Gang Risk Intervention Program
pursuant to Chapter 5.5  (commencing with Section  58730) of Part
31 of Division 4 of Title 2 of the Education Code  . . .  3,000,000


6110-111-0890--For local assistance, Department of Education,
Elementary and Secondary  Education Act, Title I--Program
20.10.056 Character Education, payable  from the Federal Trust
Fund   . . . 175,000

6110-112-0890--For local assistance, Department of Education,
Program  20.60.036--Public  Charter Schools, payable from the
Federal Trust Fund  . . . 3,365,000

6110-113-0001--For local assistance, Department of Education
(Proposition 98), for purposes of  a pupil testing program  . . .
29,599,000

Schedule:

(a) 20.70.030.001- Golden State Examination  . . . 5,971,000

(b) 20.70.030.002-Statewide Assessment  . . . 1,000,000

(c) 20.70.030.003-Local Assessment-Incentive Funding  . . .
18,243,000

(d) 20.70.030.004-Career Technical Assessment  . . . 800,000

(e) 20.70.030.005-Assessment Review and Reporting  . . . 3,585,000


Provisions:

1. The funds appropriated in this item shall be for the pupil testing

program  authorized by Chapter  5 (commencing with Section
60600), Chapter 6 (commencing with Section  60800) of Part 33 of
the Education Code, and Sections 4 and 5 of Chapter 975, Statutes
of  1995, as amended by  Chapters 69 and 920, Statutes of 1996.

2. The Superintendent of Public Instruction shall allocate the funds
appropriated in Schedule (b)  of this item for the 1997-98 fiscal
year
only if the State Board of Education  certifies to the  Director of
Finance that the related content and performance standards, as
defined by Section  60603 of the Education Code, have been adopted
pursuant to Section  60605 of the Education  Code.

3. Notwithstanding any other provision of law, any funds
appropriated by  this item, but not  expended for development of a
statewide assessment test in 1997-98, shall  be available for
expenditure in the 1998-99 fiscal year for that purpose.

6110-114-0001--For local assistance, Department of Education
(Proposition 98), for transfer by  executive order of the Director of

Finance to the Controller, for  reimbursements of claims  received
pursuant to Sections 42243.6, 42243.8 and 42247 of the  Education
Code Program  10.10.018--Court-Ordered Integration--School
Apportionments  . . .  47,785,000

Schedule:

(1) 10.10.018.005-Bakersfield Unified Elementary School District  . .

.  594,000

(2) 10.10.018.010-Los Angeles Unified School District  . . .
36,962,000

(3) 10.10.018.015-San Bernardino Unified School District  . . .
1,883,000

(4) 10.10.018.025-San Francisco Unified School District  . . .
3,208,000

(5) 10.10.018.030-San Jose Unified School District  . . . 1,225,000



(6) 10.10.018.050-Redwood City Elementary School District  . . .
3,822,000

(7) 10.10.018.065-Sequoia High School District  . . . 49,000

(8) 97.20.011-Payments for Audit cost claims  . . . 42,000

Provisions:

1. Expenditure of these funds shall be consistent with provisions in
Chapter  7 Article 2 of the  Education Code relating to
Court-Ordered Programs as amended by  legislation to be enacted on
or before October 15, 1997 to adjust districts' base year funding
levels for  Court-Ordered  Integration Programs.

2. Funds appropriated by this item are for reimbursement of amounts
necessary to pay costs of  integration programs initially mandated by

the courts, as defined in Section  2205 of the Revenue  and Taxation
Code, pursuant to any final court order issued after January  1,
1978,
and for the  costs of audits as required by Provision 4 of this item.


3. Before submittal to the Controller for payment, school districts
shall  subject their past year  actual claims to audit, in accordance

with standards utilized by the  Controller in prior years for the
audit
of past year actual desegregation claims, to ensure that the claims
comply with the  requirements of Sections 42243.6, 42247.1,
42247.3, and 42247.4 of the  Education Code. School  districts may
contract with the Controller for the performance of those  audits.
All
past year actual  claims submitted to the Controller for payment
shall
be accompanied by  any reports issued by the  auditing entity, unless

the auditing entity was the Controller.

4. The Controller shall reimburse only those past year actual claims
that  conform with the  requirements set forth in Provision 4.

5. The Controller shall allocate funds appropriated by this item in
accordance with the provisions  of Sections 42243.6 and 42247 of
the Education Code. Pursuant to Section  42243.8 of the  Education
Code, the Controller shall reimburse claims received pursuant to
Sections 42243.6 and  42247 of the Education Code only from funds
appropriated specifically for  that purpose by the  Legislature.


6. The Controller shall allocate funds appropriated by this item in
accordance with the schedule to  be provided by the Department of
Finance. The Controller shall allocate  these funds only for  1997-98

fiscal year expenditures as claimed by local education agencies
pursuant to Sections  42243.6 and 42247 of the Education Code.

7. The Department of Finance may not authorize any revisions to the
schedule contained in this  item sooner than 30 days after
notification
in writing of the necessity  therefor to the chairperson  of the
committee in each house that considers appropriations and the
Chairperson of the Joint  Legislative Budget Committee, or not
sooner than whatever lesser time the  chairperson of the  joint
committee, or his or her designee, may in each instance determine.



8. Funds appropriated by this item shall not be used to reimburse
local  education agency claims  for school construction,
reconstruction, replacement of facilities, purchase  of existing
facilities,  purchase of land, or the performance of deferred
maintenance activities on  facilities.

6110-117-0001--For local assistance, State Department of
Education,  Program 10.70--Vocational  Education, in lieu of the
amount that otherwise would be appropriated  pursuant to
subdivision (b)  of Section 19632 of the Business and Professions
Code  . . . 562,000

Provisions:

1. Of the funds appropriated by this item, $50,000 shall be available

to  contract with the  California Association of Student Councils for

the purpose of providing  leadership development  and training to
pupils in grades 3 to 12, inclusive.

6110-121-0001--For local assistance, Department of Education
(Proposition 98), Program  10.30.070--Economic Impact Aid of
Chapter 1 of Part 29 of the Education  Code  . . . 49,349,000

  Provisions:

1. Funds appropriated by this item are for transfer by the Controller

to  Section A of the State  School Fund for direct disbursement by
the State Department of Education  to the districts listed  on a
schedule to be jointly developed by the Department of Finance and
the  Department of  Education.

2. Expenditure of these funds shall be consistent with Chapter 1 of
Part 29  of the Education Code  as amended by legislation to be
enacted on or before October 15, 1997.

6110-128-0890--For local assistance, Department of Education,
payable  from the Federal Trust  Fund  . . . 27,173,000

Schedule:

(a) 20.10.015.010-Math/Science Program Teacher Training Grants  .
. .  26,873,000

(b) 20.60.015.000-Middle School Mathematics Renaissance Program
. . .  300,000

6110-129-0001--For local assistance, Department of Education,
Program  41.00--Community  Education-Intergenerational Programs
. . . 171,000

6110-130-0001--For local assistance, Department of Education,
Program  20.60.100--Advancement via Individual Determination  . . .
2,000,000

6110-136-0890--For local assistance, Department of Education,
payable  from the Federal Trust  Fund  . . . 788,807,000

Schedule:

(a) 10.30.060--Title I-ESEA  . . . 786,227,000

(b) 10.30.065--Stewart B. McKinney Homeless Children Education
. . .  2,580,000

6110-139-0001--For local assistance, Department of Education
(Proposition 98), Program  10.10--School Apportionments, Pupil
Residency Verification  . . . 154,000

Provisions:

1. Funds appropriated by this item are for the purpose of assisting
school  districts that are  adjacent to the international border with

their pupil residency verification,  consistent with the  intent of
Chapter 309, Statutes of 1995.

6110-141-0890--For local assistance, Department of Education,
Program  10.30.010--Instruction,  Title I of the Elementary and
Secondary Education Act --Migrant  Education, payable from the
Federal Trust Fund  . . . 107,448,000

6110-142-0890--For local assistance, Department of Education,
Goals  2000, payable from the  Federal Trust Fund  . . . 89,700,000



Schedule:

(a) 20.10.002-Mathematics Improvement  . . . 2,000,000

(b) 20.10.003-Reading Improvement  . . . 56,000,000

(c) 20.10.025-California Computer Refurbishing Program  . . .
10,000,000

(d) 20.60-Local Improvement Plans  . . . 15,200,000

(e) 20.60.040-Family School Partnerships Initiative  . . . 1,500,000



(f) 20.60.050-Student Academic Partnerships  . . . 5,000,000

Provisions:

1. The funds appropriated in Schedule (a) shall be available only for
a
mathematics leadership  program to improve mathematics instruction
which reflects a balance of  basic skills, conceptual  understanding
and problem solving throughout eight stands of  mathematics:
number,  measurement, geometry, patterns and functions, statistics
and probability,  logic, algebra, and  discrete mathematics.

2. Of the funds appropriated in Schedule (b), $46,400,000 shall be
available  only to provide  in-service training in reading
instruction to
teachers who teach reading in  one or more of grades  of four
through eight and schoolsite administrators' pursuant to legislation
enacted during the  1997-98 Regular Session.

3. Of the funds appropriated in Schedule (b), $4,000,000 shall be
available  only to establish new  grants or continue existing grants
awarded pursuant to a letter prepared  under the authority of
Section 28.00 of the Budget Act of 1996, dated May 8, 1996 to
develop  partnerships between  school districts and institutions of
higher education to improve pre-service  preparation of teachers  in
the area of reading.

4. Of the funds appropriated in Schedule (b), $5,600,000 shall be
available  only for providing  reading staff development for
certificated employees pursuant to Education  Code Sections 44755
through 44757 with priority given to providing staff development to
employees who did not  receive training pursuant to these sections in

1996-97.

5. The funds appropriated in Schedule (c) shall be allocated by the
State  Department of Education  for the California Computer
Refurbishing Program. Funds shall be used to  purchase parts and
supplies needed for computer repair and refurbishing by a community
college, regional  occupational program or center, the Youth and
Adult Corrections Agency,  or other nonprofit  organization certified

for computer refurbishing by the State Department of  Education.
The State  Department of Education may contract with a local
education agency to  manage this program.  The cost of
administration and program management for a county office of
education shall not  exceed two percent of the total funds provided
for this program.

6. The funds appropriated in Schedule (d) shall be used to implement
local  improvement plans  developed from prior years' allocations of
Goals 2000 funds.

7. The funds appropriated in Schedule (e) shall be used to fund
Family/School Partnership grants  to local education agencies,
subject to the approval by the Office of Child  Development and
Education of the purpose and use of the grants, and the criteria by
which  the grants will be  approved by the Department of Education.


8. The funds appropriated in Schedule (f) shall be used for
competitive  grants to local education  agencies to train and hire
college students as academic tutors for K-6  pupils in the academic
areas  of English-language arts and mathematics. Local education
agencies shall  be responsible for the  day-to-day supervision of
tutors, but the agencies may contract with higher  education
institutions  to recruit, train and provide general oversight over
placement in schools.  Higher education  institutions may permit
tutors to receive academic credit for their related  field work
experiences in  lieu of pay. It is intended that these funds provide
tutors in at least 100  school sites.

6110-152-0001--For local assistance, Department of Education,
Program  10.30.050  . . . 376,000

  Provisions:

1. Funds appropriated by this item for Indian Education Centers are
to  carry out the provisions of  Article 6 (commencing with Section
33380) of Chapter 3 of Part 20 of the  Education Code.

6110-156-0001--For local assistance, Department of Education
(Proposition 98), for transfer to  Section A of the State School
Fund,
for allocation by the Superintendent of  Public Instruction to
school
districts, county offices of education, and other agencies for the
purposes of Proposition  98 educational programs funded by this
item, in lieu of the amount that  otherwise would be  appropriated
pursuant to statute  . . . 451,722,000

Schedule:

(a) 10.50.010.001-Adult Education  . . . 442,983,000

(b) 10.50.010.008-Remedial education services for participants in the

Greater Avenues for  Independence (GAIN) program  . . .
17,478,000

(c) Reimbursements  . . . -8,739,000

Provisions:

1. Credit for participating in adult education classes or programs
may
be  generated by a special  day class pupil only for days in which
the
pupil has met the minimum day  requirements set forth in  Section
46141 of the Education Code.

2. The funds appropriated in Schedule (b) constitute the funding for
remedial education services  for participants in the Greater Avenues
for Independence (GAIN) program  (Art. 3.2 (commencing  with
Sec. 11320), Ch. 2, Pt. 3, Div. 9, W.& I.C.). These funds shall be
apportioned by the  Superintendent of Public Instruction only to
school districts that certify that  they are unable to  provide
educational services to GAIN recipients within their adult  education

block entitlement.

6110-156-0890--For local assistance, Department of Education,
Program  10.50.010.001--Adult  Education, payable from the Federal
Trust Fund  . . . 38,486,000

Provisions:

1. Of the funds appropriated by this item, and as a condition of this

appropriation, $7,669,000  shall be used for adult basic education
for
citizenship and naturalization  services for legal  permanent
residents
who are eligible for naturalization.

  Citizenship and naturalization services shall include, for this
purpose, to  the extent consistent  with applicable federal law, all
of
the following: (a) outreach services; (b)  assessment of skills; (c)
instruction and curriculum development; (d) staff development; (e)
citizenship testing; (f)  naturalization preparation and assistance;
and
(g) regional and state  coordination and program  evaluation. The
providers of the citizenship and naturalization services, for
purposes
of this  provision, shall be those community-based organizations,
community  colleges, and adult  education programs approved for
this purpose by the State Department of  Education and the  federal
Immigration and Naturalization Service.

6110-158-0001--For local assistance, Department of Education
(Proposition 98), for transfer to  Section A of the State School Fund

in lieu of the amount that otherwise  would be appropriated  pursuant

to Section 41841.5 of the Education Code, Program
10.50.010.002--Adults in  Correctional Facilities  . . . 13,976,000


Provisions:

1. Notwithstanding any other provision of law, the amount
appropriated in  this item and any  amount allocated for this program

in this act shall not exceed, in the  aggregate, the maximum  amount
allocated for the purposes of Section 41841.5 of the Education
Code.

2. Notwithstanding Section 41841.5 of the Education Code or any
other  provision of law, the  amount appropriated by this item shall
be allocated based upon prior-year  rather than current-year
expenditures.

3. Notwithstanding any other provision of law, funding distributed to

each  local education agency  (LEA) for reimbursement of services
provided in the 1997-98 fiscal year  for the Adults in  Correctional
Facilities program shall be limited to the amount received by  that
agency for services  provided in the 1996-97 fiscal year, not to
exceed a total of $13,976,000  for all programs.  Funding shall be
reduced or eliminated, as appropriate, for any LEA that  reduces or
eliminates  services provided under this program in the 1997-98
fiscal
year, as  compared to the level of  service provided in the 1996-97
fiscal year. Any funds remaining as a result  of those decreased
levels
of service shall be allocated to provide support for new programs in
accordance with  Section 41841.8 of the Education Code.

4. Notwithstanding any other provision of law, funding distributed to

each  LEA for  reimbursement of services provided in the 1996-97
fiscal year for the  Adults in Correctional  Facilities program shall
be
limited to the amount received by that agency  for services provided
in  the 1995-96 fiscal year, not to exceed a total of $13,976,000 for

all  programs. Funding shall be  reduced or eliminated, as
appropriate, for any LEA that reduces or  eliminates services
provided  under this program in the 1996-97 fiscal year, as compared
to the level of  service provided in the  1995-96 fiscal year. Any
funds remaining as a result of those decreased  levels of service
shall
be  allocated to provide support for new programs in accordance
with Section  41841.8 of the  Education Code.

6110-161-0001--For local assistance, Department of Education
(Proposition 98), Program  10.60--Special Education Programs for
Exceptional Children  . . .  1,882,777,000

Schedule:

(a) 10.60.050.001-Special education instruction  . . . 1,842,955,000



(b) 10.60.050.080-Early Education Program for Individuals with
Exceptional Needs  . . .  54,217,000

(c) Reimbursements for Early Education Program, Part H  . . .
-14,395,000

  Provisions:

1. Funds appropriated by this item are for transfer by the Controller

to  Section A of the State  School Fund, in lieu of the amount that
otherwise would be appropriated  for transfer from the  General Fund
in the State Treasury to Section A of the State School Fund  for the
1997-98 fiscal  year pursuant to Sections 14002 and 41301 of the
Education Code, for  apportionment pursuant  to Part 30
(commencing with Section 56000) of the Education Code,
superseding all prior law.

2. Of the amount appropriated in Schedule (a) of this item,
$57,391,000  shall be available for  program growth pursuant to
Section 56728.6 of the Education Code. The  funds allocated
pursuant to this provision shall be the only funds available in this
item
for  program growth for  ages 3 to 21 years, inclusive. These funds
shall be allocated to fully fund  calculated growth units  for
special
education programs serving pupils ages 3 to 21 years, inclusive,
excluding pupils ages  three and four years not requiring intensive
services, based on each special  education local plan  area's (SELPA)

pupil count data and an average number of pupils per unit  of:

(a) For special day classes and centers--10.

(b) For resource specialist programs--24.

(c) For designated instructional services--24.

For the purposes of allocating special day class and center (SDC)
growth  units, a revenue limit  offset shall be calculated for the
unfunded 1996-97 P-2 SDC average daily  attendance for those
local educational agencies that are scheduled to receive SDC growth
units.  In no case shall the  offset exceed eight pupils per SDC
growth unit. All other SDC growth  units shall be allocated  using no

revenue limit offset.

3. The number of units to be recaptured shall be calculated pursuant
to  Section 56728.6 of the  Education Code. Within each SELPA, to
maximize the use of existing  units, the units available for
recapture
shall be shifted to any instructional setting that is eligible for
growth
pursuant to  Provision 2. After maximizing the existing units, growth

shall be calculated  pursuant to the  standards in Provision 2.
Waivers
of the subcaps (Sec. 56728.6, Ed.C.)  may be approved only if
compliance would prevent the provision of a free, appropriate public
education.

4. Of the amount specified in Provision 2, $500,000 shall be
available
only  for units approved by  waiver for SELPAs with small or sparse
populations as identified under  Article 1.5 (commencing  with
Section 56210) of Chapter 3 of Part 30 of the Education Code.
Waivers for sparsity may be  approved only after previous waivers
have been reviewed to determine that  those units were  utilized in
sparsely populated areas of the SELPA, that additional units are
necessary for these  areas, and that severe hardship would occur
without additional units for  this purpose.

5. Of the amount appropriated in Schedule (a) of this item, no more
than  $379,000 shall be  available for the purposes of Section
56775.5 of the Education Code.

6. Of the funds appropriated in Schedule (a) of this item, $8,552,000

shall  be available for the  purchase, repair, and inventory
maintenance of specialized books,  materials, and equipment for
pupils with low-incidence disabilities, as defined in Section 56026.5

of the  Education Code.

7. Of the funds appropriated in Schedule (a) of this item, $6,419,000

shall  be available for the  purposes of vocational training and job
placement for special education  pupils through Project  Workability
I pursuant to Article 3 (commencing with Section 56470) of  Chapter
4.5 of Part 30  of the Education Code. As a condition of receiving
these funds, each  agency shall certify that the  amount of
nonfederal
resources, exclusive of funds received pursuant to  this provision,
devoted to  the provision of vocational education for special
education pupils shall be  maintained at or above  the level provided

in the 1984-85 fiscal year. The Superintendent of Public  Instruction

may waive  this requirement for agencies that can demonstrate that
the requirement  would impose a severe  hardship.

8. Of the funds appropriated in Schedule (a) of this item, $2,965,000

shall  be available for  regional occupational centers and programs
that serve pupils having  disabilities, $128,151,000  shall be
available
for extended year programs for pupils with exceptional  needs ages 3
through 21,  $65,748,000 shall be available for regionalized program
specialist services,  and $6,185,000 shall  be available for county
office of education longer day and year programs.

9. Of the amount appropriated in Schedule (b) of this item, $907,000
shall  be available for infant  program growth units (ages birth-two
years). Funds for infant units shall be  allocated pursuant to
Provision 12 of this item, with the following average number of
pupils per  unit:

(a) For special classes and centers--16.

(b) For resource specialist programs--24.

(c) For designated instructional services--16.

10. Except for instructional personnel services units serving
infants,
the  county office of education  or school district reporting
instructional personnel services units for  funding shall be the
agency
that employs the personnel staffing the units, unless the combined
unit rate  and support services  ratio of a nonemploying agency is
equal to or lesser than that of the  employing agency and both
agencies agree that the nonemploying agency shall report the units
for  funding.

11. During the 1997-98 fiscal year, the State Board of Education
shall not  approve any waiver of  Section 56364.1 of the Education
Code relating to the full inclusion of  pupils with low incidence
disabilities. This restriction does not prohibit the State Board of
Education  from approving any  waiver of Section 56364 of the
Education Code relating to full inclusion  during the 1997-98 fiscal
year.

12. Notwithstanding any other provision of law. early education
programs  for infants and toddlers  shall be offered for 200 days.
Notwithstanding Section 56726 of, Section  56731 of, or paragraph
(2) of subdivision (e) of Section 56737 of, the Education Code, the
State  Department of  Education shall allocate funds for the 1997-98
fiscal year to those  programs receiving allocations  for
instructional
units pursuant to Section 56728.8 of the Education Code  for the
Early Education  Program for Individuals with Exceptional Needs
operated pursuant to  Chapter 4.4 (commencing  with Section
56425) of Part 30 of the Education Code, based on  computing
200-day entitlements.  For educational services for children with
exceptional needs, birth through  two years of age, no  funds shall
be
allocated pursuant to Section 56726 of the Education Code.  The
200-day  entitlements shall not exceed 111 percent of the current
entitlement for  each educational agency.

13. Notwithstanding Chapter 7 (commencing with Section 56700) of
Part  30 of the Education  Code, state funds appropriated in
Schedule (b) of this item in excess of the  amount necessary to  fund

the deficited entitlements pursuant to Section 56728.8 of the
Education Code and Provision  12 of this item shall be available for
allocation by the State Department of  Education to local  education
agencies for the operation of programs serving solely  low-incidence
infants and toddlers  pursuant to Title 14 (commencing with Section
95000) of the Government  Code. These funds  shall be allocated to
each local educational agency at a rate of $6,849 per  solely
low-incidence  child through age two, for each child in excess of the

number of solely  low-incidence children  through age two served by
the local educational agency during the 1992-93  fiscal year and
reported on the April 1993, pupil count. These funds shall only be
allocated  if the amount of  reimbursement received from the State
Department of Developmental  Services is insufficient to  fully fund
the costs of operating the Early Intervention Program, as  authorized

by Title 14  (commencing with Section 95000) of the Government
Code.

14. The State Department of Education, through coordination with
the  Special Education Local  Planning Areas, shall ensure local
interagency coordination and  collaboration in the provision of
early
intervention services, including local training activities, child
find
activities, public  awareness, and the family resource center
activities.


6110-161-0890--For local assistance, Department of Education,
payable  from the Federal Trust  Fund, Program 10.60--Special
Education Programs for Exceptional  Children  . . . 332,024,000

Schedule:

(a) 10.60.030.910-IDEA, Title VIC, Deaf-Blind Center  . . . 878,000


(b) 10.60.050.010-local entitlements, IDEA special education  . . .
259,724,000

(c) 10.60.050.015-IDEA, local entitlements, Preschool Program  . . .
19,286,000

(d) 10.60.050.020-IDEA, direct and indirect instructional services
approved in the State Plan  . . .  11,366,000

(e) 10.60.050.030-PL 99-457, Preschool Grant Program  . . .
36,000,000

(f) 10.60.050.040-IDEA, Title VID, Handicapped Personnel
Preparation  Grants  . . . 557,000

(h) 10.60.050.075-Juvenile Court Schools  . . . 3,000,000

(i) 10.60.050.085-Disabled children served by other agencies  . . .
1,213,000

Provisions:

1. If the funds for Part B of the Individuals with Disabilities
Education Act  that are actually  received by the state exceed
$306,377,000, at least 95 percent of the funds  received in excess of

that amount shall be allocated for local entitlements. Five percent
of
the  amount received in excess  of $306,377,000 may be used for
state administrative expenses. If the funds  for Part B of the
Individuals with Disabilities Education Act that are actually
received
by the  state are below  $306,377,000, the reduction shall be taken
in
direct and indirect  instructional services.

2. Of the funds appropriated in Schedule (d) of this item, up to
$1,000,000  may be used to fund  licensed children's institution
growth units pursuant to Section 56776 of the  Education Code.
These funds are to be used for instructional units only.

3. Of the funds appropriated in Schedule (d) of this item, up to
$2,324,000  may be used to  provide funding for infant programs,
and may be used for those programs  that do not qualify for  funding
pursuant to Section 56728.8 of the Education Code. Of these  funds,
$100,000 shall be  available, subject to approval of a work plan by
the Department of Finance,  to conduct follow-up  activities related
to the funding studies and funding plan submitted pursuant  to
Provisions 13 and  14 of Item 6110-161-001 of the Budget Act of
1995.



4. Of the funds appropriated in Schedule (d) of this item, $2,425,000

shall  be allocated to local  education agencies for the purposes of
Project Workability I.

5. Of the funds appropriated in Schedule (d) of this item, $1,700,000

shall  be used to provide  specialized services to pupils with
low-incidence disabilities, as defined in  Section 56026.5 of the
Education Code.

6. Of the funds appropriated in Schedule (d) of this item, $3,617,000

shall  be used for a personnel  development program. This program
shall include state-sponsored staff  development, local  in-service
components, bilingual, student study team, and core curriculum
components. Of this  amount, a minimum of $2,500,000 shall be
allocated directly to special  education local plan   areas. The
local
in-service programs shall include a parent training  component. All
programs are  to include evaluation components.

7. Of the funds appropriated in this item for the Preschool Grant
Program,  $1,228,000 shall be  used for in-service training programs.

This program shall include  state-sponsored and local  components.



8. Of the funds appropriated in Schedule (d) of this item, $200,000
shall be  used for research and  training in cross-cultural
assessments.


9. Of the funds appropriated in Schedule (d) of this item, $100,000
shall be  used to develop and  test procedures, materials, and
training
for alternative dispute resolution in  special education.

10. The funds appropriated in Schedule (h) of this item may be used
to  augment instructional units  for the special education programs
in
juvenile court schools to cover the  required number of days  of
instruction.

11. The amount appropriated in Schedule (i) shall be available to
provide  services to disabled  children ages 3 through 21 years
served
by the Department of  Developmental Services, the  California Youth
Authority, and the University of California at Los Angeles
Neuropsychiatric  Institute, and for children from birth through 21
years of age served by the  state special schools.

6110-162-0001--For local assistance, Department of Education
(Proposition 98), Program  10.60--Special Education Programs for
Exceptional Children  . . .  76,692,000

Provisions:

1. Funds appropriated in this item are for equalizing funding rates
pursuant  to legislation enacted  on or before October 15, 1997 to
reform the Special Education funding  system in such a manner  that
will reduce the inequities and complexities of the current system and

eliminate the financial  incentives related to special education
placements.

2. If legislation referred to in Provision 1 is not enacted on or
before
October 15, 1997, funds  appropriated in this item shall be
distributed
for program growth pursuant  to Section 56728.6 of  the Education
Code and Provision 2 of Item 6110-161-0001.

6110-165-0001--For local assistance, Department of Education  . . .
6,907,000

Schedule:

(a) 10.70--Vocational Education  . . . 23,782,000

(b) Reimbursements  . . . -16,875,000

Provisions:

1. $15,731,000 of the funds appropriated in this item are for the
purpose of  the federal Job  Training Partnership Act.

2. Notwithstanding any other provision of law, of the funds
appropriated  by this item, $6,907,000  are available for the purpose

of matching Job Training Partnership Act  funds available under
Section 1602(b)(1) of Title 29 of the United States Code. The
Superintendent of Public  Instruction shall allocate these funds for
provision of remedial education  services and for  provision of
occupational skills training services provided in conjunction  with
remedial education  services  to Greater Avenues for Independence
(GAIN) participants  pursuant to Section 33117.5  of the Education
Code.

6110-166-0890--For local assistance, Department of Education,
Program  10.70--Vocational  Education, payable from the Federal
Trust Fund  . . . 119,769,000

Provisions:

1. The funds appropriated by this item include Federal Vocational
Education Act funds for the  1997-98 fiscal year to be transferred to

the community colleges by means  of interagency  agreements for the
purpose of funding vocational education programs in  community
colleges.

2. The State Board of Education and the Board of Governors of the
California Community  Colleges shall target funds appropriated by
this item to provide services to  Greater Avenues for  Independence
(GAIN) participants.

3. The Superintendent of Public Instruction shall report, not later
than  February 1 of each year, to  the Joint Legislative Budget
Committee, to the Director of Finance, and to  the California State
Council on Vocational Education, describing the amount of
carryover  funds from this item,  reasons for the carryover, and
plans
to reduce the amount of carryover.

6110-176-0890--For local assistance, Department of Education,
Program  10.40.030--Emergency  Immigrant Education and Foreign
Language Assistance Programs, payable  from the Federal Trust
Fund  . . . 32,576,000

6110-180-0001--For local assistance, Department of Education
(Proposition 98), for Program  20.10.025-Educational Technology  .
. . 1,000,000

Provisions:

1. The funds appropriated in this item shall be allocated by the
State
Department of Education to  the San Diego County Office of
Education for one-time costs associated  with the establishment of  a

regional technology center.

6110-181-0465--For local assistance, Department of Education,
Program  20.10.055-Environmental Education, payable from the
Energy Resources  Programs Account,  General Fund  . . . 800,000


6110-183-0890--For local assistance, Department of Education,
Program  20.10.045--Health and  Physical Education, Instructional
Support--Safe and Drug Free Schools  and Communities Act of
1994  (PL 103-382)  . . . 44,198,000

Provisions:

1. Local education agencies shall give priority in the expenditure of

the  funds appropriated by this  item to create comprehensive drug
and violence prevention programs that  promote school safety,
reduce the use of drugs, and create learning environments that are
free of  alcohol and guns and  that support academic achievement for
all pupils. In addition to preventing  drug and alcohol use,
prevention programs will respond to the crisis of violence in our
schools by  addressing the need to  prevent serious crime, violence,
and discipline problems. The  Superintendent of Public Instruction
shall (a) notify local education agencies of this policy, and (b)
incorporate  the policy into the  department's compliance review
procedures.

6110-187-0001--For local assistance, Department of Education
(Proposition 98), for transfer to  Section A of the State School
Fund,
for cost-of-living increases to be  transferred to, in lieu of the
amount that otherwise would be provided pursuant to statute, and in
augmentation of, the  respective appropriations by the Controller
upon enactment in accordance  with the following  . . .  125,443,000



Schedule:

(1) 10.10.011.003--School apportionments, for remedial summer
school  programs, for transfer to  Schedule (a) of Item
6110-104-0001  . . . 1,357,000

(2) 10.10.011.004--School apportionments, for core academic
summer  school programs, for  transfer to Schedule (b) of Item
6110-104-0001  . . . 2,517,000

(3) 10.10.011.005--School apportionments, Continuation Schools
(Sec.  42243.7, Ed. C.)  . . .  714,000

(4) 10.25--Class Size Reduction, for transfer to Item 6110-234-0001
. . .  31,066,000

(5) 10.60.050--Special Education Program for Exceptional Children,
for  transfer to Schedule (a)  of Item 6110-161-0001  . . .
75,010,000


(6) 10.60.050.080--Early Education Program for Individuals with
Exceptional Needs, for transfer  to Schedule (b) of Item
6110-161-0001  . . . 1,372,000

(7) 30.10--Child Development, for transfer to Item 6110-196-0001  .
. .  13,407,000

Provisions:

1. Notwithstanding any other provision of law, the amount provided
in this  item for transfer to the  Special Education Program for
Exceptional Children shall be allocated on a  dollar amount basis
rather than as a percentage increase. The dollar amount shall be
equal
to  2.53 percent of the  average statewide unit rate.

6110-190-0001--For local assistance, Department of Education
(Proposition 98), Program  10-School Apportionments, Community
Day Schools  . . . 52,593,000

Provisions:

1. The funds appropriated by this item shall be used to reimburse
costs  incurred pursuant to  Chapter 974 of the Statutes of 1995.


2. Funds appropriated by this item shall not be available for the
purposes of  Section 41972 of the  Education Code.

3. Of the funds appropriated by this item, $1,765,000 shall be used
to
reimburse local mandated  costs required by Chapter 974 of the
Statutes of 1995.

6110-191-0001--For local assistance, Department of Education
(Proposition 98), Program  20.60.050.002-Beginning Teacher
Support and Assessment  . . .  10,000,000

Provisions:

1. The funds appropriated by this item are for transfer to Section A
of the  State School Fund, for  direct disbursement by the State
Department of Education for expansion of  the Beginning Teacher
Support and Assessment Program, as set forth in Article 4.5
(commencing  with Section 44279.2)  of Chapter 2 of Part 25 of the
Education Code.

2. The funds appropriated by this item shall be expended only after
development of a program and  expenditure plan by the State
Department of Education, and approval of  the plan by the
Department of Finance.

6110-194-0001--For local assistance, Department of
Education--Staff  Development  . . .  2,249,000

Schedule:

(a) 20.60.010.001-Administrator Training and Evaluation Program  .
. .  1,593,000

(b) 20.60.080-Exploratorium  . . . 551,000

(c) 20.60.125-Geography Education Alliances  . . . 105,000

Provisions:

1. The funds appropriated by this item are for transfer by the
Controller to  Section A of the State  School Fund, for direct
disbursement by the State Department of  Education in lieu of the
amount  that otherwise would be appropriated for staff development
pursuant to  subdivision (a) of Section  74 of Chapter 894 of the
Statutes of 1977.

2. Notwithstanding any other provision of law, the amount
appropriated in  Schedule (a) of this  item shall be the maximum
amount allocated for the 1997-98 fiscal year for  the purposes of the

administrator training and evaluation program set forth in Article 3
(commencing with Section  44681) of Chapter 3.1 of Part 25 of the
Education Code.

6110-196-0001--For local assistance, Department of Education
(Proposition 98), for transfer to  Section A of the State School
Fund,
for allocation by the Superintendent of  Public Instruction to
school
districts, county offices of education, and other agencies for the
purposes of Proposition  98 educational programs funded in this
item, in lieu of the amount that  otherwise would be  appropriated
pursuant to statute  . . . 543,027,000

Schedule:

(a) 30.10.010-Special Program, Child Development Preschool
Education  .  . . 121,042,000

(b) 30.10.020-Child Care Services  . . . 761,940,000

(1) 30.10.020.001-Special Program, Child Development, General
Child  Development Programs  .  . . 350,081,000

(2) 30.10.020.002-Special Program, Child Development, Community
College Match-Required  Center  . . . 2,499,000

(3) 30.10.020.003-Special Program, Child Development, High
School  Parenting and Infant  Development  . . . 10,453,000

(4) 30.10.020.004-Special Program, Child Development, Migrant
Day  Care  . . . 11,141,000

(5) 30.10.020.007-Special Program, Child Development, Alternative
Payment Program  . . .  215,832,000

(6) 30.10.020.008-Special Program, Child Development, Resource
and  Referral  . . . 10,333,000

(7) 30.10.020.009-Special Program, Child Development, Campus
Child  Care Tax Bailout  . . .  4,975,000

(8) 30.10.020.015-Special Program, Child Development, Extended
Day  Care  . . . 37,767,000

(9) 30.10.020.096-Special Program, Child Development, Allowance
for  Handicapped  . . .  879,000

(10) 30.10.020.106-Special Program, Child Development, California
Child  Care Initiative  . . .  250,000

(11) 30.10.020.900--Special Program, Child Development, Child
Protective Services   4,000,000

(12) 30.10.020.901--Special Program, Child Development, Quality
Improvement   14,984,000

(13) 30.10.020.902--Special Program, Child Development,
Automation  Set-aside   20,000,000

(14) 30.10.020.903--Special Program, Child Development,
Department of  Social Services  Pass-through . . . 75,297,000

(15) 30.10.020.904--Special Program, Child Development, Trustline
. . .  125,000

(16) 30.10.020.905--Special Program, Child Development, Local
Planning  Councils   1,020,000

(17) 30.10.020.906--Special Program, Child Development,
Dependent  Care Grant   2,304,000

(c) 30.10--Special Program, Child Development, Minimum Wage
Impact  .  . . 13,100,000

(d) Amount Payable from the Federal Trust Fund (Item
6110-196-0890)  .  . . -353,055,000

Provisions:

1. (a) Of the funds appropriated by this item, $3,334,000 is for the
purpose  of providing the  full-year funding for the expansion of the

state preschool program initiated  with a $3,334,000  augmentation
in the Budget Act of 1996. These funds shall be allocated for
services to children  participating in the state preschool program.
Funds for annualized  expansion shall not be used for  a
cost-of-living
adjustment for existing contracted services.

(b) Of the funds appropriated by this item, $6,666,000 is for the
purpose of  providing the full-year  funding for the expansion of the

general child care program initiated with a  $6,666,000
augmentation in the Budget Act of 1996. These funds shall be
allocated for  services to children  participating in the general
child
care program. Funds for annualized  expansion shall not be used  for
a cost-of-living adjustment for existing contracted services. It is
the
intent of the Legislature  that, notwithstanding Section 8263 of the
Education Code, the State  Department of Education  allocate the
funds identified in this subdivision, to the extent feasible, to
expand
child care and  development services to preschool children from ages
3 to 5, inclusive and  that this priority be  reflected in contracts
with
local agencies. In expanding services for  preschool children, local
agencies shall give priority to families consistent with subdivision
(b)
of  Section 8263 of the  Education Code.

2. Notwithstanding Section 8278 of the Education Code, funds
available  for expenditure pursuant  to Section 8278 of the Education

Code shall be expended in the 1997-98  fiscal year pursuant to  the
following schedule:

(a) The amount necessary for accounts payable pursuant to
paragraph (1)  of subdivision (b) of  Section 8278 of the Education
Code.

(b) Up to $1,308,000 for administrative costs of alternative payment
programs receiving prior  year federal Child Care and Development
Block Grant carryover funds.

(c) $100,000 for one-time-only planning and operational grants for
extended schoolday programs  pursuant to Chapter 775, Statutes of
1995.

(d) Of the funds available pursuant to Section 8278 of the Education
Code,  as scheduled under  this item for quality improvement
activities, the State Department of  Education shall allocate
$425,000 to the preschool education projects operated by the public
television stations in  Redding, San Francisco, San Jose, Los
Angeles, Fresno, and San Diego. Of  this amount, the  department
shall allocate $320,000 to public television stations in Redding,
San
Francisco, San  Jose, and Los Angeles, based upon the satisfaction
by the projects operated  by the public  television stations in each
of
those cities of all of the following criteria: (1)  the 30-percent
minimum match; (2) a plan that identifies the providers to be
trained;
(3)  the number of trainings  conducted and the number of trainers to

be trained; (4) the quality of the  training offered; (5)  linkages
to the
child care community; and (6) cost-effectiveness.

  The balance of the $425,000 identified in this subdivision shall be

made  available to support  projects in Fresno and San Diego, based
upon the determination by the  State Department of  Education of the
satisfaction by the projects operated by the public  television
station
in each of  those cities of the criteria set forth above in (1) to
(6),
inclusive, of the  preceding paragraph.

   As a condition of receiving funds as described in this subdivision
in
the  1996-97 fiscal year, each  grantee that received funds in the
1995-96 fiscal year shall complete and  submit to the State
Department of Education, no later than March 1, 1997, an evaluation
of  the effectiveness of the  project operated by the grantee in
improving the quality of child care  provided in the affected
community.

(e) The State Department of Education shall establish a plan for any
remaining unexpended  balances that sets forth the criteria for
determining funding priorities, the  funding priorities, and  the
amount of funding proposed per priority. The remaining funds shall
not  be allocated sooner  than 30 days after the Department of
Finance provides notification of its  approval of the plan to  the
Legislature in accordance with the procedures set forth in Section
28.00 of this act.

3. The State Department of Education shall report to the Joint
Legislative  Budget Committee, by  March 1, 1998, the amount of
child development funds, by program, that  have been determined
after audit to be unearned. The department shall report, by March 1,
1998,  the settlement of  claims payable from unearned contract
funds balances, by program.

4. Notwithstanding Section 8266.1 of the Education Code, for child
care  and development  contractors that serve children 10.5 hours or
more per day and demonstrate  to the satisfaction of  the State
Department of Education that their costs are reasonable and in
excess of those allowed  by Section 8266.1, the reimbursement factor
in subdivision (a) of Section  8266.1 shall be reduced  to 50 percent

and the reimbursement factor in subdivision (d) of Section  8266.1
shall be increased  to 150 percent. This provision does not apply to
the resource and referral  programs, the  alternative payment
programs, the state preschool programs, the schoolage  community
child care  services, or the schoolaged parent and infant development

programs.

5. Notwithstanding any other provision of law, alternative payment
child  care systems shall be  subject to the rates established in the

Regional Market Rate Survey of  California child care and
development providers for provider payments. The State Department
of  Education shall contract  with the State Child Care Resource and
Referral Network to conduct a  market rate survey, the  results of
which shall be provided to the State Department of Education  and
the State Department  of Social Services for utilization by various
programs under the jurisdiction  of both departments  to determine
limits of reimbursement to providers.

6. The funds appropriated by this item for campus child care tax
bailout  shall be allocated by the  State Department of Education
based on a schedule provided by the  Chancellor of the California
Community Colleges. The chancellor shall schedule the allocation of
these  funds to community  college districts that levied child care
permissive override taxes in the  1977-78 fiscal year pursuant  to
Sections 8329 and 8330 of the Education Code in an amount equal
to  the property tax  revenues, tax relief subventions, and state aid

required to be made available  by the district to its  child care and

development program for the 1979-80 fiscal year pursuant to
Section 30 of Chapter  1035 of the Statutes of 1979, increased by
any cost-of-living increases  granted in subsequent  fiscal years.
These funds shall be used only for the purpose of community  college
child care and  development programs.

7. Notwithstanding Section 8473.3 of the Education Code, if an
Extended  Day Care Program  contractor fails to operate at 98
percent of the minimum days of operation  required in its contract,
or ceases operations, or the contract is terminated prior to the end
of
the  contract period, the  maximum reimbursable amount shall be
reduced in proportion to the  percentage of the contract  minimum
days of operations that the contractor was not in operation.

8. Notwithstanding any provision of law to the contrary, higher
educational  institutions may  establish and maintain child
development programs on or near their  respective campuses with
priority for services given to children of students of that campus.
Those  higher educational  institutions under contract with the state

Department of Education for child  care and development  services
shall be subject to the rules and regulations adopted by the
Superintendent of Public  Instruction except where those rules and
regulations differ with respect to  the conditions specified  for the

Community Colleges in Item 6870-101-0001, provision 16(c).

9. $14,984,000 specified in schedule (b)(12) shall be reserved for
activities  to improve the quality  and availability of child care.
The
State Department of Education shall  establish an expenditure  plan
for these funds that sets forth the state and local activities to
improve
child care, including  the reasons therefore. Of the activities
specified
in the plan, no less than  $6,000,000 shall be made  available for
the
following: (a) activities designed to provide  comprehensive
consumer education  to parents and the public and activities that
increase parental choice; (b)  health and safety training  for
license
exempt providers; (c) expanded hot-line access to public health  and
communicable  disease information; (d) training resources for
development of new child  care aides from among  Temporary
Assistance for Needy Family (TANF) recipients; (e) increased
support of local child  care planning councils to guide the expansion

of child care availability at  the local level where  needs are
greatest.
This plan shall be submitted to the Department of  Finance by August
1, 1997.  Funds shall not be encumbered prior to approval of the plan

by the  Department of Finance.  Notwithstanding any other
provisions of law, the Department of Finance  may transfer funds to
Item 6110-001-0001 as determined necessary for the approved plan.


10. $20,000,000 in schedule (b)(13) is reserved for the development
and  implementation of a data  collection and retrieval system for
meeting reporting requirements  associated with the federal  child
care and development funds. Upon the approval of a Feasibility
Study  Report, the  Department of Finance may transfer $20,000,000
from this item to Item  6110-001-0001 for the  acquisition and
support of the approved data automation system.

11. $1,020,000 in schedule (b)(16) shall be allocated to Local Child
Care  Planning Councils to  develop local priorities for the
distribution of federal and state child care  and development funds
and to develop comprehensive countywide community child care
plans  which shall provide for the  expansion of center based child
care services, to the extent practical, to  meet the needs of
eligible
families based on the ages of children needing care, the hours of
care
needed, and geographic  areas within the county where care is
needed.

12. Of the $13,100,000 appropriated in schedule (c) for child care
and  development services  minimum wage impact, $9,150,000 is to
be added as a general Cost of  Living Adjustment in  addition to the
statutory Cost of Living Adjustment for all General Fund  direct
services.  $3,950,000 shall be allocated to providers below the
Standard  Reimbursement Rate only after  application of the cost of
living adjustments specified above, to the extent  contractors who
request increases can document that their increased costs are a
direct
result  of federal or state  minimum wage increases.

13. $75,297,000 in schedule (b)(14) shall be reserved for child care
programs for TANF recipients  operated by the Department of Social
Services upon completion of an  Interagency Agreement.  The
Interagency Agreement shall include an agreement to implement
uniform eligibility and family  contribution rules for all child care

programs operated by either agency as  specified in provision  15 of
this item.

14. The Department of Education and the Department of Social
Services  shall implement the  following new criteria no later than
January 1, 1998: Pursuant to the  recommendations of the  AB2184
Task Force final report, the California Department of Education  and
the Department of  Social Services in consultation with the
Governor's Office of Child  Development and Education  and the
Department of Finance shall: (a) establish standard entry and exit
income eligibility levels  for all child care and development
programs.
(These entry and exit levels  should: ensure that  public assistance
recipients are eligible for subsidized care; ensure that low  income
families and  those attempting to stay off welfare or transition off
welfare are eligible,  and; be adjustable  through the annual budget
act to reflect changes in the size of the eligible  population and
levels
of  available funding.) and (b) shall adopt a new family fee schedule

for all  families receiving  subsidized child care based on a
percentage
of the Standard  Reimbursement Rate or its  replacement. Fees
should be charged for each child with a charge for each  additional
child in the  same family at reduced rates, and a cap on the percent
of
gross income that  can be charged in  fees.

6110-196-0890--For local assistance, Department of Education, for
payment to Item  6110-196-0001 payable from the Federal Trust
Fund  . . . 353,055,000

Provisions:

1. Notwithstanding any other provision of law, the funds
appropriated by  this item, to the extent   permissible under federal

law, are subject to Section 8262 of the Education  Code.

2. The funds appropriated in this item constitute the Federal Child
Care and  Development Block  Grant and are contingent upon
receipt of the federal grant.

3. Of the funds appropriated by this item, $21,200,000 in federal
child care  and development  block grant funds appropriated by the
federal government prior to the 1996  federal fiscal year  shall be
available to alternative payment programs.

6110-200-0001--For local assistance, Department of Education
(Proposition 98), Healthy Start  Support Services for Children Act  .

. . 49,000,000

Provisions:

1. For purposes of allocating up to $10,000,000 of the funds
appropriated  by this item, the State  Department of Education shall
give priority to those applicants that address  the needs of pregnant

and parenting teenagers as specified in Chapter 311, Statutes of
1995.

6110-201-0001--For local assistance, Department of Education
(Proposition 98), Program  30.20-Child Nutrition  . . . 1,000,000


Provisions:

1. Notwithstanding any other provision of law, the amount
appropriated in  this item is for the  purpose of providing grants to

school districts and county superintendents  of schools during the
1997-98 school year pursuant to Section 49550.3 of the Education
Code.

6110-201-0890--For local assistance, Department of Education,
Program  30.20--Child Nutrition,  payable from the Federal Trust
Fund  . . . 1,073,545,000

Schedule:

(a) 30.20.010--Child Nutrition  . . . 1,051,707,000

(b) 30.20.040--Summer Food Service Program  . . . 21,838,000

6110-202-0001--For local assistance, Department of Education  . . .
10,364,000

Schedule:

(a) 30.20.010-Child Nutrition  . . . 10,358,000

(b) 30.20.020-Pregnant/Lactating Minors  . . . 6,000

Provisions:

1. Funds appropriated by this item are for child nutrition programs
pursuant to Section 41311 of  the Education Code. Claims for
reimbursement of meals pursuant to this  appropriation shall be
submitted not later than September 30, 1998, to be eligible for
reimbursement.

2. Notwithstanding any other provision of law, except as provided in
this  provision, funds  appropriated by this item shall be available
for
allocation in accordance  with Section 49536 of the  Education Code,
except that the allocation shall not be made based on all  meals
served, but based  on the number of meals that are served and that
qualify as free or  reduced-price meals in  accordance with Sections
49501, 49550, and 49552 of the Education  Code.

6110-226-0001--For local assistance, Department of Education
(Proposition 98), Program  20.60--School/Law Enforcement
Partnership Programs  . . . 4,481,000

Schedule:

(a) 20.60.020.001-Partnership Minigrants/Safe School Planning  . . .
3,501,000

(b) 20.60.020.012-Conflict Resolution  . . . 280,000

(c) 20.60.020.013-School Community Violence Prevention  . . .
700,000

Provisions:

1. The amount in Schedule (a) includes $2,873,000 in Supplemental
  Grant  funds that have been  designated by school districts for
school
safety purposes pursuant to  Section 17 of Chapter 308 of  the
Statutes of 1995.

6110-230-0001--For local assistance, Department of Education
(Proposition 98), for transfer to  Section A of the State School
Fund,
for allocation by the Superintendent of  Public Instruction to
school
districts, county offices of education, and other education agencies
for the purposes of the  Proposition 98 educational programs funded
in this item, in lieu of amounts  otherwise provided  for those
programs by statute  . . . 2,266,561,000

Provisions:

1. The Superintendent of Public Instruction shall take action, in a
manner  consistent with state  policy as expressed in statute and
with
the purposes of this act, to ensure  the orderly  administration of
state-funded education programs conducted by local  agencies. The
allocations  for the 1997-98 fiscal year of state aid for these
programs shall be in the  same amounts as the  1996-97 fiscal year
allocations, adjusted as appropriate to reflect changes  in other
state,
federal,  and local revenues, and the designation of supplemental
grant funds to  categorical programs  pursuant to Section 17 of
Chapter 308 of the Statutes of 1995. The  Superintendent of Public
Instruction shall apportion funds from the program allocations to
each  school district, county  office of education, or other
education
agency in a manner consistent with  the policies, formulas,
regulations, and statutes governing those apportionments, including
the  appropriate program and  schedule provisions set forth in Senate

Bill 89 of the 1995-96 Regular  Session as amended in the  Senate
May 30, 1995. If the funds appropriated by this item are less than
the amount necessary  for these programs, the superintendent shall
apportion the deficiency on a  proportional basis  across all
programs. If funding appropriated by this item is greater than the
amount necessary for  these programs, the Superintendent of Public
Instruction shall direct that  the excess funds be  transferred by
the
Controller to the State Instructional Materials Fund for  the 1997-98

fiscal year  for the purchase of instructional materials for
kindergarten and grades 1 to  8, inclusive, or grades  9 to 12,
inclusive.

2. Notwithstanding any other provision of law, not more than 20
percent of  the amount  apportioned to any school district, county
office of education, or other  education agency under  this item for
any program may be expended by that recipient for the  purposes of
any other  program for which the recipient is eligible for funding
under this item,  except that the total  amount of funding allocated
to
the recipient under this item that is  expended by the recipient for
the
purposes of any program pursuant to this item shall not exceed 125
percent of the amount of  state funding allocated pursuant to
Provision 1 to that recipient for that  program for the 1997-98
fiscal
year.

3. The educational programs that are not eligible for funding under
this  item are those programs  funded by the following items of the
Budget Act of 1996 (Ch. 162, Stats.  1996): Items  6110-001-0001,
6110-001-0178, 6110-001-0231, 6110-001-0344,  6110-001-0687,
6110-001-0890, 6110-001-0975, 6110-003-0001, 6110-004-0001,
6110-005-0001,  6110-006-0001, 6110-006-0814, 6110-007-0001,
6110-008-0001,  6110-009-0001,  6110-013-0001, 6110-015-0001,
6110-021-0001, 6110-101-0231,  6110-101-0814,  6110-101-0890,
6110-101-0975, 6110-102-0001, 6110-102-0890,  6110-103-0001,
6110-103-0890, 6110-104-0001, 6110-105-0001, 6110-107-0001,
6110-109-0001,  6110-111-0001, 6110-111-0890, 6110-112-0890,
6110-113-0001,  6110-115-0001,  6110-117-0001, 6110-118-0001,
6110-122-0001, 6110-124-0001,  6110-127,0001,  6110-128-0890,
6110-129-0001, 6110-130-0001, 6110-136-0890,  6110-139-0001,
6110-141-0890, 6110-152-0001, 6110-156-0001, 6110-156-0890,
6110-158-0001,  6110-160-0001, 6110-161-0001, 6110-161-0890,
6110-165-0001,  6110-166-0001,  6110-166-0890, 6110-176-0890,
6110-181-0465, 6110-183-0890,  6110-187-0001,  6110-188-0001,
6110-190-0001, 6110-191-0001, 6110-194-0001,  6110-196-0001,
6110-196-0890, 6110-197-0001, 6110-198-0001, 6110-200-0001,
6110-201-0001,  6110-201-0890, 6110-202-0001, 6110-206-0001,
6110-207-0001,  6110-208-0001,  6110-226-0001, 6110-234-0001,
6110-295-0001, and 6350-101-001.

4. The reduction of the maximum allowable building area for each
applicant  school district  pursuant to Section 17746.8 of the
Education Code shall be a permanent  reduction to the district's
eligibility for funding under Chapter 22 (commencing with Section
17700)  of Part 10 of the  Education Code. To the extent feasible,
the reduction shall be applied to  district projects that  represent
the
same grade levels of the pupils for which the district is  claiming
funding pursuant to  Section 42263 of the Education Code.

5. Notwithstanding Provision 3, local education agencies may use the
authority granted pursuant  to Provision 2 of this item to provide
the
funds necessary to initiate, to  continue support following  the
three-year state grant period, or to expand, a Healthy Start program
pursuant to Chapter 5  (commencing with Section 8800) of Part 6 of
the Education Code.

6. Notwithstanding Provision 3 of this item, local education agencies

may  use the authority  granted pursuant to Provision 2 of this item
to provide the funds necessary  to initiate a conflict  resolution
program pursuant to Chapter 2.5 (commencing with Section  32260)
or Part 19 of the  Education Code.

7. The amount appropriated by this item includes funds for the
environmental education program  established by Chapter 4
(commencing with Section 8700) of Part 6 of the  Education Code
and  the school-based management program established by Article 12
(commencing with Section  44666) of Chapter 3 of Part 25 of the
Education Code.

8. For purposes of Section 42263 of the Education Code, the
statewide  average cost avoided per  pupil for the 1997-98 fiscal
year
shall be the amount determined for that  purpose for the 1996-97
fiscal year.

9. As a condition of receiving funding under this item, each school
district  that receives  reimbursement for the costs of a
desegregation
program or programs shall  submit a report to the  Legislature on or
before March 1, 1998, on the use of those funds. The  report shall
include, but  not be limited to, the following information: (1) how
the
funds received for  a desegregation  program or programs have been
used to alleviate the harmful effects of  racial isolation; and (2)
how
the funds received for a desegregation program or programs have
been used to improve the  academic performance of pupils in schools
that receive desegregation  funds. If the report required  by this
provision is not received from any school district by March 1, 1998,
the Controller may  not pay the reimbursement claim for
desegregation costs of the district for  the 1997-98 school  year.


10. Notwithstanding Provision 2 of this item or any other provision
of law,  not more than 50  percent of the amount apportioned to any
school district, county office of  education, or other  agency under
this item for any program may be expended by the recipient  of those
funds for the  purpose of one-time costs associated with
implementing a class size  reduction program for  kindergarten and
grades 1 to 3, inclusive, as established pursuant to  Chapter 163,
Statutes of  1996.

11. As a condition of receiving funds apportioned from this item for
general staff development  purposes, districts shall use these funds
on
a priority basis to ensure that  (1) each probationary  certificated
employee assigned to a school within the district as a new  teacher
receives appropriate  training, assistance, and evaluation and (2)
state
categorical funding for  administrator training is  supplemented, as
needed, so that personnel assigned to evaluate teachers  achieve
competence in  instructional methodologies and evaluation for
teachers they are assigned  to evaluate.

6110-231-0001--For local assistance, Department of Education,
(Proposition 98), for transfer to  Section A of the State School
Fund,
for allocation by the Superintendent of  Public Instruction to
school
districts and county offices of education for the purpose of the
Proposition 98 educational  programs funded in Item 6110-230-0001
. . . 67,831,000

Provisions:

1. The funds appropriated by this item shall be allocated to all
school
districts and county offices  of education in the state on the basis
of
an equal amount per unit of  average daily attendance for  the
Proposition 98 educational programs funded in Item 6110-230-0001.


6110-234-0001--For local assistance, Department of Education
(Proposition 98), for transfer to  Section A of the State School
Fund,
for allocation by the Superintendent of  Public Instruction for  the
Class Size Reduction Program pursuant to Chapter 6.10
(commencing  with Section 52120) of  Part 28 of the Education
Code  . . . 1,227,910,000

Provisions:

1. Pursuant to Subdivision (c) of Section 52126 of the Education
Code, the  reimbursement rates  per pupil for programs operated in
1997-98 shall be $666 for pupils  claimed under Subdivision (a)  of
Section 52126 and $333 for pupils claimed under Subdivision (b) of
Section 52126.

6110-295-0001--For local assistance, Department of Education
(Proposition 98), for  reimbursement, in accordance with the
provisions of Section 6 of Article  XIII B of the California
Constitution or of Section 17561 of the Government Code, of the
cost of  any new program or  increased level of service of an
existing
program mandated by statute or  executive order,  Controller  . . .
119,726,000

Schedule:

(1) 98.01.008.786-School Discipline Rules (Ch. 87/86)  . . .
1,229,000

(2) 98.01.016.193-Intradistrict Attendance (Ch. 161/93)  . . .
2,170,000

(3) 98.01.017.201-Interdistrict Attendance (Ch. 172/86)  . . .
961,000

(4) 98.01.017.286-Interdistrict Transfer Parent's Employment (Ch.
172/86)   . . . 869,000

(5) 98.01.048.675-Test Claims and Reimbursement Claims (Ch. 486,
Stats.  1975)  . . . 4,166,000

(6) 98.01.049.801-Graduation Requirements (Ch. 498/93)  . . .
2,634,000

(7) 98.01.049.802-Notices of Truancy (Ch. 498, Stats. 1983)  . . .
4,650,000

(8) 98.01.062.492-School Bus Safety (Ch. 624, Stats. 1992)  . . .
26,000

(9) 98.01.064.186-Open Meetings Act (Ch. 641, Stats. 1986)  . . .
1,452,000

(10) 98.01.078.192-Charter Schools (Ch. 781, Stats. 1992)  . . .
619,000

(11) 98.01.079.980-PERS Death Benefits (Ch. 799, Stats. 1980)  . . .
694,000

(12) 98.01.081.891-AIDS Prevention Instruction (Ch. 818, Stats.
1991)  . .  . 3,856,000

(13) 98.01.096.175-Collective Bargaining (Ch. 961, Stats. 1975)  . .
.
31,224,000

(14) 98.01.096.501-Pupil Classroom Suspension (Ch. 498/93)  . . .
4,196,000

(15) 98.01.096.577-Public Health Screenings (Ch. 965/77)  . . .
1,498,000

(16) 98.01.101.184-Juvenile Court Records (Ch. 1011, Stats. 1984)
. . .  128,000

(17) 98.01.103.670-STRS Rate Increase (Ch. 1036, Stats. 1979)  . . .
45,018,000

(18) 98.01.110.784-Removal of Chemicals (Ch. 1107, Stats. 1984)  .
. .  1,506,000

(19) 98.01.117.677-Immunization Records (Ch. 1176, Stats. 1977)  .
. .  3,308,000

(20) 98.01.125.375-Expulsion Transcripts (Ch. 1253, Stats. 1975)  .
. .  6,000

(21) 98.01.130.689-Notification to Teachers of Public Expulsion
(Ch.  1306/89)  . . . 1,814,000

(22) 98.01.134.780-Scoliosis Screening (Ch. 1347, Stats. 1980)  . . .

1,950,000

(23) 98.01.139.874-PERS Unused Sick Leave Credit (Ch. 1398,
Stats.  1974)  . . . 2,872,000

(24) 98.01.160.784-School Crimes Reporting (Ch. 1607, Stats.
1984)  . . .  1,158,000

(25) 98.01.165.984-Emergency Procedures (Ch. 1659, Stats. 1984)
. . .  1,121,000

(26) 98.01.167.584-School Testing-Physical Fitness (Ch. 1675,
Stats.  1984)  . . . 601,000

Provisions:

1. Except as provided in Provisions 2 and 4, allocations of funds
appropriated by this item shall be  made by the Controller in
accordance with the provisions of each statute or  executive order
that  mandates the reimbursement of the costs, and shall be audited
to verify the  actual amount of the  mandated costs in accordance
with subdivision (d) of Section 17561 of the  Government Code.
Audit adjustments to prior year claims may be paid from this item.
Funds  appropriated by this  item may be used to provide
reimbursement pursuant to Article 5  (commencing with Section
17615) of Chapter 4 of Part 7 of Division 4 of Title 2 of the
Government  Code.

2. The funds appropriated in Schedule (17) is for transfer to the
State
Teachers' Retirement Fund  for the State Teachers' Retirement
System for reimbursement of costs  incurred pursuant to  Chapter
1036 of the Statutes of 1979.

3. If any of the scheduled amounts are insufficient to provide full
reimbursement of costs, the  Controller may, upon approval of the
Director of Finance, augment those  deficient amounts from  the
unencumbered balance of any other scheduled amounts therein. No
order may be issued  pursuant to this provision unless written
notification of the necessity  therefor is provided to the
chairperson
of the committee in each house that considers appropriations  and the

Chairperson of  the Joint Legislative Budget Committee or his or her
designee.

4. Notwithstanding any other provision of law, the funds
appropriated in  Schedules (11) and (23)  are for transfer to the
Public Employees' Retirement System for  reimbursement of costs
incurred  pursuant to Chapter 1398 of the Statutes of 1974 or
Chapter 799 of the  Statutes of 1980.

6110-401--For maintenance of accounting records by the State
Controller's  office and the  Department of Education or any other
agency maintaining such records,  appropriations made in  this act
for
agency 6110 (Department of Education) are to be recorded  under
agency 6100  (Department of Education).

6110-402--Notwithstanding any provision of law to the contrary, no
funds  appropriated by this  act, or by any act enacted prior to the
enactment of this act, shall be, in the  absence of a court  order,
deemed appropriated or available for expenditure for purposes of
claims for vocational  education average daily attendance arising
from Section 46140 of the   Education Code as it read  prior to the
enactment of Chapter 1230 of the Statutes of 1977.

6110-485--Reappropriation (Proposition 98), Department of
Education.  The sum of $23,910,000  is reappropriated from the
Proposition 98 Reversion Account, for the  following purpose:

001--General Fund

(a) $15,000,000 to provide funding for the purchase and relocation
of new  child care facilities to  address expansions in child care
services and replace facilities lost to the  Class Size Reduction
program.

(b) $3,910,000 for allocation by the State Department of Education
to the  Oxnard Union High  School District for the purpose of
extending the school year.

(c) $5,000,000 for second year costs of the Single Gender Academics
Pilot  Program pursuant to  Chapter 3.1 (commencing with Section
58520) of Part 31 of the Education  Code.

Provisions:

1. Of the amount provided in schedule (a), priority for the first
$9,600,000  shall be given to  replace facilities which are no longer

available for child care because they  must now be used for  Class
Size Reduction. Child care providers using facilities made available
by the use of funds  provided in part (a) shall be charged rent at a
fair
market value for such  facilities or an amount  sufficient to
amortize
the cost of purchase and relocation over a ten-year  period,
whichever is  lower. It is intended that the Department shall
establish
a revolving fund in  the state treasury to  deposit the rent charges
in
order to finance other facility expansions and  improvements in the
future. Prior to the allocation of funds, the Department shall submit
a
plan  by August 1, 1997, to  the Office of Child Development and
Education, Department of Finance,  and the Legislative  Analyst's
Office, which specifies the application procedures, allowable uses
of
the funds and the  form of the agreement, including but not limited
to
provisions to protect  the state's interests  including maintenance
and
the event of contract termination. Further, prior  to allocation it
is
intended that the Department shall submit reports to the Office of
Child  Development and  Education, Department of Finance, and the
Legislative Analyst Office  detailing the magnitude of  requests, who

should receive the funds for the facilities and for what  reasons and
a
projection of  the rents and funds available to the revolving fund in

the future.

2. The funds appropriated by schedule (b) shall not be disbursed
until
the  Oxnard Union High  School District has notified the State
Department of Education that they  elect to participate in the
Extended School Year Program and they will comply with the
following  requirements:

(a) The district shall make the extended school year applicable to
all
high  schools and all students  in grades 9 to 12, inclusive, in the
school district, and be uniform in its  application.

(b) The district shall provide to all students in the district at
least 195
days  of instruction, and at  least 70,200 instructional minutes in
the
extended school year program.  The district shall waive  the right to

staff development days in lieu of instructional days and waive  any
right to receive full  average daily attendance for those staff
development days, including, but  not limited to, the use of  staff
development days authorized by Sections 44670.6, 52022, 52854,
and  56242 of the  Education Code.

(c) The district shall contract with an independent evaluator for an
evaluation of the Extended  School Year Program to be conducted at
the conclusion of the fiscal year.  The evaluation shall  include,
but
not limited to, the impact of the longer year on student  academic
achievement,  student attendance, and dropout rates. A copy of the
evaluation shall be  provided to the State  Department of Education,
the Department of Finance, the Legislative  Analyst's Office, and the

Joint Legislative Budget Committee by November 1, 1998.

(d) If the district operates an extended school year program pursuant

to  this provision the State  Department of Education shall apportion

nineteen dollars and seventy-five  cents ($19.75) per unit  of
average
daily attendance for days 181 through 195 of the 1997-98  school
year, not to exceed  the amount appropriated by this item. This
calculation shall be exclusive of  adult average daily  attendance,
the
average daily attendance of pupils while participating in  regional
occupation  centers or programs, and average daily attendance for
pupils attending  summer school.

6110-490--Reappropriation, Department of Education.
Notwithstanding  any other provision of  law, the unencumbered
balances are reappropriated from the following  citations, for the
purpose  specified, and shall be available for encumbrance and
expenditure until June  30, 1997:

001--General Fund

(1) The unencumbered balance as of June 30, 1997 of funds
appropriated  in Chapter 975, Statutes  of 1995, Section 7, is
reappropriated for the purpose of developing the  statewide pupil
assessment  in the 1997-98 and 1998-99 fiscal years.

6110-495--Reversion, Department of Education, Proposition 98. The
unencumbered balance as of  June 30, 1997, of the appropriation
provided for in the following citation  shall revert to the
Proposition
98 Reversion Account:

1. Chapter 308 of the Statutes of 1995, Section 37, Northridge
Earthquake  matching funds.

6110-496--Reversion, Department of Education. The unencumbered
balance as of June 30, 1997,  of the appropriation provided for in
the
following citation shall revert to  the General Fund:

1. Chapter 735 of the Statutes of 1989, Bradley Human Relations
Pilot  Project.

2. Chapter 237 of the Statutes of 1993, model accounting and budget
structure.

3. Section 12.31 of Chapter 162 of the Statutes of 1996.

Provisions:

1. The appropriation made by Section 12.31 of Chapter 162 of the
Statutes  of 1996 shall not be  deemed an appropriation for
Proposition 98 pursuant to Section 8 of  Article XVI of the
California  Constitution.

6115-001-0001--For support of the Commission for the
Establishment of  Academic Content and  Performance Standards  . .
. 0

Schedule:

(a) 10-Standards Development  . . . 1,407,000

(b) Reimbursements  . . . -1,407,000

6120-011-0001--For support of California State Library, Division of
Libraries, and California  Library Services Board  . . . 13,374,000


Schedule:

(a) 10-State Library Services  . . . 13,396,000

(b) 20-Library Development Services  . . . 2,680,000

(c) 30-Automation Services  . . . 670,000

(d) 40.01 Administration  . . . 1,482,000

(e) 40.02 Distributed Administration  . . . -1,482,000

(f) Reimbursements  . . . -512,000

(g) Amount payable from the Federal Trust Fund (Item
6120-011-0890)  . .  . -2,860,000

6120-011-0020--For support of the California State Library,
Program  10--State Library Services,  for support of the State Law
Library  . . . 544,000

Provisions:

1. The Director of Finance may authorize the augmentation of the
total  amount available for  expenditure under this item in the
amount
of revenue received by the State  Law Library Special  Account
which is in addition to the revenue appropriated by this item or in
the amount of funds  unexpended from previous fiscal years, not
sooner than 30 days after  notification in writing to the
chairpersons
of the fiscal committees  of each house and the Chairperson of  the
Joint Legislative  Budget Committee.

6120-011-0890--For support of California State Library, for payment
to  Item 6120-011-0001,  payable from the Federal Trust Fund  . . .
2,860,000

6120-012-0001--For support of the California State Library, for debt
service payments on lease  revenue bonds  . . . 36,000

Schedule:

(a) Base Rental and Fees  . . . 2,613,000

(b) Insurance  . . . 12,000

(c) Reimbursements  . . . -2,589,000

6120-211-0001--For local assistance, California State Library,
Program  20--Library Development  Services  . . . 15,720,000

Schedule:

(a) 20.10--California Literacy Campaign  . . . 3,490,000

(b) 20.20--Families for Literacy Program  . . . 876,000

(c) 20.30--Direct Loan and Interlibrary Loan Programs  . . .
7,919,000

(d) 20.40--Computerized Data Base pursuant to Section 18767 of
the  Education Code  . . .  275,000

(e) 20.50--California Library Services Act pursuant to Chapter 4
(commencing with Section  18700) of Part 11 of the Education Code
. . . 3,160,000

Provisions:

1. Should the funds appropriated in Schedule (c) be insufficient to
fully  cover all transactions  under the Direct Loan and Interlibrary

Loan programs of the California  Library Services Act,  funding shall

be prorated such that expenditures for the program are within  the
appropriation  made in Schedule (c) of this item.

6120-211-0890--For local assistance, California State Library,
Program  20--Library Development  Services, payable from the
Federal Trust Fund  . . . 11,901,000

6120-221-0001--For local assistance, California State Library
Program  20-Library Development  Services-Public Library
Foundation Program  . . . 15,870,000

Provisions:

1. Notwithstanding any other provision of law, for the 1997-98 fiscal

year,  the date on or before  which the fiscal officer of each public

library shall report to the State  Librarian the information
specified in
Section 18023 of the Education Code shall be December 1,  1997.

2. Notwithstanding any other provision of law, for the 1997-98 fiscal

year,  the date on or before  which the Controller shall distribute
funds to the fiscal officer of each  public library as specified in
Section 18026 of the Education Code shall be February 15, 1998.

6255-001-0001--For state operations, California State Summer
School for  the Arts, Program 10  .  . . 639,000

6330-001-0890--For support of the California Occupational
Information  Coordinating  Committee, payable from the Federal
Trust Fund  . . . 284,000

6360-001-0001--For support of the Commission on Teacher
Credentialing,  for the purpose of  administering the
Paraprofessional
Teacher Training Program  . . . 60,000

Schedule:

(a) 10-Standards for Preparation and Licensing of Teachers  . . .
60,000

6360-001-0407--For support of Commission on Teacher
Credentialing,  payable from the Teacher  Credentials Fund  . . .
12,576,000

Schedule:

(a) 10-Standards for Preparation and Licensing of Teachers  . . .
12,576,000

(b) 10.40.010-Departmental Administration  . . . (2,152,000)

(c) 10.40.020-Distributed Departmental Administration  . . .
(-2,152,000)

Provisions:

1. The amount appropriated by this item may be increased based on
increases in credential  applications, increases in first-time
credential
applications requiring  fingerprint clearance,  unanticipated costs
associated with certificate discipline cases, or  unanticipated costs
of
litigation,  subject to approval of the Department of Finance, not
sooner than 30 days  after notification in  writing to the
chairpersons
of the fiscal committees of each house and the  Chairperson of the
Joint  Legislative Budget Committee.

2. Of the funds appropriated by this item, $127,000 shall be used for

the  administration and  support of the Alternative Certification
program. The Commission shall  complete and submit to  the
Department of Finance no later than September 1, 1998, an
evaluation  of the program's  effectiveness and a multi-year
projection of workload. The Department of  Finance may consider
the information contained in the report in analyzing future
                               programmatic  needs.

3. Notwithstanding Section 44234 of the Education Code, funds that
are  set aside for pending  litigation costs shall not be considered
part
of the reserve of the Teacher  Credentials Fund for  purposes of
subdivision (b) of Section 44234 of the Education Code.

4. The Department of Finance may make a loan from the General
Fund to  the Teacher Credentials  Fund for the purpose of providing
funding in the event that the reserves in  the Teacher  Credentials
Fund are depleted. Terms and conditions of repayment of any  loan
made pursuant to  this provision shall be determined by the Director
of Finance. Interest shall  be charged on the loan  pursuant to
Section
16314 of the Government Code.

6360-001-0408--For support of Commission on Teacher
Credentialing,  payable from the Test  Development and
Administration Account of the Teacher Credentials Fund   . . .
6,669,000

Schedule:

(a) 10-Standards for Preparation and Licensing of Teachers  . . .
7,329,000

(b) Reimbursements  . . . -660,000

Provisions:

1. The amount appropriated by this item may be increased for
unanticipated  costs of litigation, or  for costs from increases in
the
number of examinees, subject to approval of  the Department of
Finance and notification of the Joint Legislative Budget Committee in

accordance with the  provisions of Section 28.00 of this act.

2. Notwithstanding Section 44234 of the Education Code, funds that
are  set aside for pending  litigation costs shall not be considered
part
of the reserve of the Teacher  Credentials Fund for  purposes of
subdivision (b) of Section 44234 of the Education Code.

6360-001-0890--For support of Commission on Teacher
Credentialing,  payable from the Federal  Trust Fund  . . . 159,000


Schedule:

(a) 10-Standards for Preparation and Licensing of Teachers  . . .
159,000

6360-101-0001--For local assistance, Commission on Teacher
Credentialing (Proposition 98)  . . .  3,828,000

Schedule:

(a) 10-Standards for Preparation and Licensing of Teachers  . . .
3,828,000

Provisions:

1. Of the funds appropriated by this item, $2,000,000 is for
incentive
grant  funding to school  districts and county offices of education
participating in the alternative  teacher certification  program
established in Article 11 (commencing with Section 44380) of
Chapter 2 of Part 25 of  the Education Code.

2. Of the funds appropriated by this item, $1,478,000 shall be
available for  grants and subventions  to school districts and county

offices of education participating in the  California School
Paraprofessional Teacher Training Program pursuant to Article 6.5
(commencing with Section  69619) of Chapter 2 of Part 42 of the
Education Code.

3. Of the funds appropriated by this item, $350,000 shall be used to
reimburse county offices of  education for costs associated with
monitoring public schools and school  districts for teacher
misassignments. Funds shall be allocated on a basis determined by the

Commission. Districts and  county offices receiving funds for
credential monitoring will provide  reasonable and necessary
information to the Commission as a condition of receiving these
funds.

6360-486--Reappropriation, (Proposition 98), Commission on
Teacher  Credentialing. The sum of  $4,500,000 is reappropriated
from the Proposition 98 Reversion Account,  for the following
purpose:

0001--General Fund

(1) To provide incentive grants to school districts and county
offices
of  education participating in  the alternative teacher certification

program established in Article 11  (commencing with Section
44380) of Chapter 2 of Part 25 of the Education Code.

6420-001-0001--For support of California Postsecondary Education
Commission  . . . 2,750,000

Schedule:

(a) 100000-Personal Services  . . . 2,459,000

(b) 300000-Operating Expenses and Equipment  . . . 638,000

(c) Reimbursements  . . . -16,000

(d) Amount payable from the Federal Trust Fund (Item
6420-001-0890)  . .  . -331,000

6420-001-0890--For support of California Postsecondary Education
Commission, for payment to  Item 6420-001-0001, payable from the
Federal Trust Fund  . . . 331,000

6420-101-0001--For local assistance, California Postsecondary
Education  Commission, for  Pipeline Program grants  . . . 119,000


6420-101-0890--For local assistance, California Postsecondary
Education  Commission, payable  from the Federal Trust Fund  . . .
5,496,000

6440-001-0001--For support of University of California  . . .
2,035,198,000

Schedule:

(a) Support  . . . 1,940,967,000

(b) Charles R. Drew Medical Program  . . . 7,067,000

(c) Podiatry Program  . . . 857,000

(d) Mathematics, Engineering and Science Achievement (MESA)  . .
.  3,553,000

(e) Acquired Immune Deficiency Syndrome (AIDS) Research  . . .
8,079,000

(f) Institute of Global Conflict and Cooperation  . . . 550,000

(g) Student Financial Aid  . . . 52,865,000

(h) Loan Repayments  . . . 5,105,000

(i) Subject Matter Projects and International Studies Project  . . .
12,155,000

(j) San Diego Supercomputer Center  . . . 4,000,000

Provisions:

1. The appropriations made by this item are exempt from Section
31.00 of  this act.

2. None of the funds appropriated by this item may be expended to
initiate  major capital outlay  projects by contract without prior
legislative approval, except for  cogeneration and energy
conservation projects. Exempted projects shall be reported in a
manner  consistent with the  reporting procedures in subsection (d)
of Section 28.00 of this act.

3. The funds appropriated in Schedule (b) are for support of
University of  California program of  clinical health sciences
education, research, and public service, conducted  in conjunction
with the  Charles R. Drew Postgraduate Medical  School, as
provided for in Sections  1, 2, and 3 of Chapter  1140 of the
Statutes
of 1973.

4. The University of California shall ensure by adequate controls
that
funds  appropriated by  Schedule (b) are expended solely for the
support of the program identified  in that schedule.

5. The funds appropriated in Schedule (c) are for support of a
program of  basic and clinical health  science education and primary
health care delivery research in the field of  podiatry, University
of
California, to be conducted in conjunction with the California
College of  Podiatric Medicine as  provided for in Sections 1 to 4,
inclusive, of Chapter 1497 of the Statutes  of 1974.

6. Of the amount appropriated in Schedule (a), $2,629,957 shall be
available for expenditure only  for support of the Northern and
Southern Occupational Health Centers as  established by a  contract
entered into with the Department of Industrial Relations pursuant  to

Section 50.8 of the  Labor Code.

7. The funds appropriated in Schedule (g) are for support of Program
45,  Student Financial Aid,  to provide financial aid to needy
students
attending the University of  California, according to the  nationally

accepted needs analysis methodology.

8. Of the amount appropriated in Schedule (a), $7,258,300 is for
payment  of energy service  contracts in connection with the issuance

of Public Works Board Energy  Efficiency Revenue  Bonds.

9. Of the amount appropriated in Schedule (h), $2,700,000 is for
repayment of $25,000,000  borrowed by the University of California
for deferred maintenance in the  1994-95 fiscal year. It is  the
intent
of the Legislature to annually provide funds for that repayment
purpose through the  2009-10 fiscal year.

10. Of the amount appropriated in Schedule (h), $2,405,000 is for
repayment of $25,000,000  borrowed by the University of California
for deferred maintenance in the  1995-96 fiscal year. It is  the
intent
of the Legislature to annually provide funds for that repayment
purpose through the  2010-11 fiscal year.

11. Of the funds appropriated in Schedule (i), $11,191,000 is for
subject  matter projects pursuant  to Article 1 (commencing with
Section 99200) of Chapter 5 of Part 65 of  the Education Code,  and
$964,000 is for the international studies project.

12. The funds appropriated in Schedule (j) are for the support and
operations of the California  Supercomputer Center. Of the amount
appropriated in Schedule (j),  $2,000,000 shall be made  available
for
expenditure if and only if the California Supercomputer Center  is
chosen as a  national supercomputer center under the National
Science Foundation's  Partnership for Advanced  Computational
Infrastructure Program.

13. Of the funds appropriated in Schedule (a), $2,000,000 shall be
expended for student outreach,  including $500,000 for student
outreach in the Central Valley.

14. Of the funds appropriated in Schedule (a), $500,000 shall be
expended  for the Center for  Earthquake Engineering Research,
contingent upon the center receiving  federal matching funds  from
the National Science Foundation.

6440-001-0007--For support of University of California, payable
from the  Breast Cancer  Research Account  . . . 14,706,000

Provisions:

1. Notwithstanding subdivision (a) of Section 2.00 of this act, the
funds  appropriated by this item  shall be available for expenditure
until June 30, 2002.

6440-001-0046--For support of University of California, Institute of
Transportation Studies,  payable from the Transportation Planning
and Development Account, State  Transportation Fund   . . . 956,000


6440-001-0234--For support of the University of California, payable
from  the Research Account,  Cigarette and Tobacco Products
Surtax Fund  . . . 24,699,000

Provisions:

1. The funds appropriated by this item are to be allocated for
research  regarding tobacco use, with  an emphasis on youth and
young adults, including, but not limited to, the  effects of active
and
passive smoking, the primary prevention of tobacco use, nicotine
addiction  and its treatment, the  effects of secondhand smoke, and
public health issues surrounding tobacco  use.

2. Notwithstanding subdivision (a) of Section 2.00 of this act, the
funds  appropriated by this item  shall be available for expenditure
until June 30, 2002.

6440-001-0308--For support of the University of California, payable
from  the Earthquake Risk  Reduction Fund  . . . 1,500,000

Provisions:

1. The funds appropriated by this item shall be expended for the
Center for  Earthquake  Engineering Research, contingent upon the
Center receiving federal  matching funds from the  National Science
Foundation.

6440-001-0814--For support of University of California, for
allocation by  the State Controller in  accordance with the
provisions
of Government Code Section 8880.5 as  enacted by the voters in
Proposition 37 at the November 1984 general election, payable from
the  California State Lottery  Education Fund  . . . 15,801,000

Provisions:

1. All funds received pursuant to Proposition 37 that are allocable
to
the  University of California  pursuant to Section 8880.5 of the
Government Code, and that are in excess  of the amount ap

propriated in this item are hereby appropriated in augmentation of
this  item.

6440-002-0001--For support of University of California  . . .
(55,000,000)

Provisions:

1. Notwithstanding Section 2.00 of this act, the funds appropriated
by this  item are not available  for expenditure or encumbrance prior

to July 1, 1998. Claims for these  funds shall be submitted by  the
University of California on or after July 1, 1998, and before October

1,  1998.

2. No reserve may be established by the State Controller for this
appropriation before July 1,  1998.

6440-003-0001--For support of the University of California, for
transfer to  and in augmentation  of Item 6440-001-0001, for
payment of lease-purchase payments to be  allocated upon order of
the Director of Finance no sooner than necessary to allow the
University of  California to make the  required lease-purchase
payments  . . . 94,206,000

Schedule:

(a) Rental, insurance and administrative payments  . . . 98,523,000


(b) Reimbursements  . . . -4,317,000

6440-301-0658--For capital outlay, University of California, payable
from  the Higher Education  Capital Outlay Bond Fund of 1996  . . .
149,724,000

Schedule:

Berkeley Campus:

(1) 99.01.125-Environment, Health, and Safety Facility--Equipment
. . .  222,000

(2) 99.01.130-Hearst Memorial Mining Building Seismic and
Program  Improvements--Working  Drawings and Construction  . . .
32,831,000

(3) 99.01.180-Seismic Safety Corrections, Barker Hall--Preliminary
Plans  .  . . 589,000

Davis Campus:

(4) 99.03.160-Walker Hall Seismic Replacement Facility--Working
Drawings and Construction  .  . . 10,784,000

Irvine Campus:

(5) 99.09.100-Social Sciences Unit 2--Equipment  . . . 1,022,000


(6) 99.09.100-Humanities/Fine Arts Facilities--Construction and
Equipment  . . . 7,646,000

(7) 99.09.125-Environmental Health and Safety Services Building
--Working Drawings and  Construction  . . . 11,602,000

(8) 99.09.160-Administration Building Seismic
Corrections--Working  Drawings and Construction   . . . 1,611,000


(9) 99.09.170-Humanities Office Building Seismic
Improvements--Working Drawings and  Construction  . . . 4,479,000


Los Angeles Campus:

(10) 99.04.100-Electrical Distribution System Expansion, Step
6A--Working Drawings and  Construction  . . . 5,418,000

(11) 99.04.155-Schoenberg Hall Seismic Correction--Working
Drawings  and Construction  . . .  3,214,000

(12) 99.04.160-Rehabilitation Building Seismic Correction--Working
Drawings and Construction   . . . 2,571,000

(13) 99.04.205-Kinsey Hall Seismic Correction, Phase 2--Preliminary
Plans   . . . 824,000

(14) 99.04.210-Campus Fire Alarm System Upgrade, Phase
2--Working  Drawings and  Construction  . . . 1,815,000

Riverside Campus:

(15) 99.05.075-Science Library-Equipment  . . . 1,751,000

(16) 99.05.100-Rivera Library Seismic Upgrade and
Remodel--Working  Drawings  . . . 792,000

(17) 99.05.105-Boyce Hall Seismic Upgrade--Working Drawings  . .
.  143,000

(18) 99.05.110-Fine Arts Seismic Facility--Working Drawings and
Construction  . . . 23,913,000

San Diego Campus:

(19) 99.06.170-Galbraith Hall Renovation--Working Drawings and
Construction  . . . 10,929,000

(20) 99.06.185-York Hall Improvements--Construction  . . .
5,423,000

San Francisco Campus:

(21) 99.02.085-Chilled Water System, Phase 1--Preliminary Plans
and  Working Drawings  . . .  1,188,000

(22) 99.02.110-Health Sciences East Improvements, Phase
1--Working  Drawings and  Construction  . . . 6,026,000

(23) 99.02.115-UC Hall Seismic Replacement, Phase 1--Preliminary
Plans   . . . 299,000

Santa Barbara Campus:

(24) 99.08.065-Humanities and Social Sciences Renovations and
Seismic  Corrections--Equipment   . . . 627,000

(25) 99.08.075-Seawater System Renewal--Working Drawings and
Construction  . . . 8,787,000

(26) 99.08.090-Broida Hall Building Renewal--Preliminary Plans  . . .

449,000

Santa Cruz Campus:

(27) 99.07.095-Mt. Hamilton Infrastructure Improvements--Working
Drawings and Construction   . . . 2,654,000

(28) 99.07.100-Applied Sciences Building Alterations, Phase
1--Working  Drawings and  Construction  . . . 2,115,000

Provisions:

1. Identified savings in funds encumbered from this general
obligation
bond  fund for construction  contracts for capital outlay projects,
remaining after completion of a capital  outlay project and  upon
resolution of all change orders and claims, may be used: (a) to begin

working drawings for a  project for which preliminary plans funds
have been appropriated and the  plans have been  approved by the
State Public Works Board consistent with the scope and  cost
approved by the  Legislature as adjusted for inflation only, (b) to
proceed further with the  underground tank  corrections program, (c)
to perform engineering evaluations on buildings  that have been
identified  as potentially in need of seismic retrofitting, or (d) to

proceed with design  and construction of  projects to meet
requirements under the federal Americans with Disabilities  Act.

  No later than March 1, 1998, the University of California shall
provide the  Legislative Analyst  with a progress report showing the
identified savings by project, and the  purpose for which the
identified savings were used.

  No later than November 1, 1998, the University of California shall
prepare a report showing (a)  the identified savings by project and
(b)
the purpose for which the  identified savings were used.  This report

shall be submitted to the Chairperson of the Joint Legislative
Budget
Committee and  to the chairs of the fiscal committees in each house.



2. The University is seeking Funds from the Federal Emergency
Management Agency (FEMA)  for the Kinsey Hall Seismic
Correction, Phase 2 project at the Los Angeles  campus (Schedule
13).  If FEMA funds are allocated to this project, state funds for
the
project will  be reverted  commensurately.

6440-301-0705--For capital outlay, University of California, payable
from  the Higher Education  Capital Outlay Bond Fund of 1992  . . .
133,000

Schedule:

San Diego Campus:

(1) 99.06.190-SIO Utilities System Improvements--Preliminary Plans
and  Working Drawings  . . .  133,000

Provisions:

1. Identified savings in funds encumbered from this general
obligation
bond  fund for construction  contracts for capital outlay projects,
remaining after completion of a capital  outlay project and  upon
resolution of all change orders and claims, may be used: (a) to begin

working drawings for a  project for which preliminary plans funds
have been appropriated and the  plans have been  approved by the
State Public Works Board consistent with the scope and  cost
approved by the  Legislature as adjusted for inflation only, (b) to
proceed further with the  underground tank  corrections program, (c)
to perform engineering evaluations on buildings  that have been
identified  as potentially in need of seismic retrofitting, or (d) to

proceed with design  and construction of  projects to meet
requirements under the federal Americans with Disabilities  Act.

  No later than March 1, 1998, the University of California shall
provide the  Legislative Analyst  with a progress report showing the
identified savings by project, and the  purpose for which the
identified savings were used.

  No later than November 1, 1998, the University of California shall
prepare a report showing (a)  the identified savings by project and
(b)
the purpose for which the  identified savings were used.  This report

shall be submitted to the chair of the Joint Legislative Budget
Committee and to the  chairs of the fiscal committees in each house.



6440-301-0782--For capital outlay, University of California, payable
from  the Higher Education  Capital Outlay Bond Fund of 1986

Provisions:

1. Identified savings in funds encumbered from this general
obligation
bond  fund for construction  contracts for capital outlay projects,
remaining after completion of a capital  outlay project and  upon
resolution of all change orders and claims, may be used: (a) to begin

working drawings for a  project for which preliminary plans funds
have been appropriated and the  plans have been  approved by the
State Public Works Board consistent with the scope and  cost
approved by the  Legislature as adjusted for inflation only, (b) to
proceed further with the  underground tank  corrections program, (c)
to perform engineering evaluations on buildings  that have been
identified  as potentially in need of seismic retrofitting, or (d) to

proceed with design  and construction of  projects to meet
requirements under the federal Americans with Disabilities  Act.

  No later than March 1, 1998, the University of California shall
provide the  Legislative Analyst  with a progress report showing the
identified savings by project, and the  purpose for which the
identified savings were used.

  No later than November 1, 1998, the University of California shall
prepare a report showing (a)  the identified savings by project and
(b)
the purpose for which the  identified savings were used.  This report

shall be submitted to the chair of the Joint Legislative Budget
Committee and to the  chairs of the fiscal committees in each house.



6440-301-0785--For capital outlay, University of California, payable
from  the Higher Education  Capital Outlay Bond Fund of 1988  . . .
173,000

Schedule:

Davis Campus:

(1) 99.03.135-Environmental Services Facility--Equipment  . . .
74,000

San Diego Campus:

(2) 99.06.210-UCSDMC North Annex Seismic Replacement
Facility--Equipment  . . . 99,000

Provisions:

1. Identified savings in funds encumbered from this general
obligation  bond fund for construction  contracts for capital outlay
projects, remaining after completion of a capital  outlay project and

upon resolution of all change orders and claims, may be used: (a) to
begin  working drawings for a  project for which preliminary plans
funds have been appropriated and the  plans have been  approved by
the State Public Works Board consistent with the scope and  cost
approved by the  Legislature as adjusted for inflation only, (b) to
proceed further with the  underground tank  corrections program, (c)
to perform engineering evaluations on buildings  that have been
identified  as potentially in need of seismic retrofitting, or (d) to

proceed with design  and construction of  projects to meet
requirements under the federal Americans with Disabilities  Act.




  No later than March 1, 1998, the University of California shall
provide the  Legislative Analyst  with a progress report showing the
identified savings by project, and the  purpose for which the
identified savings were used.



  No later than November 1, 1998, the University of California shall
prepare a report showing (a)  the identified savings by project and
(b)
the purpose for which the  identified savings were used.  This report

shall be submitted to the chair of the Joint Legislative Budget
Committee and to the  chairs of the fiscal committees in each house.



6440-301-0791--For capital outlay, University of California, payable
from  the Higher Education  Capital Outlay Bond Fund of 1990.

Provisions:

1. Identified savings in funds encumbered from this general
obligation
bond  fund for construction  contracts for capital outlay projects,
remaining after completion of a capital  outlay project and  upon
resolution of all change orders and claims, may be used: (a) to begin

working drawings for a  project for which preliminary plans funds
have been appropriated and the  plans have been  approved by the
State Public Works Board consistent with the scope and  cost
approved by the  Legislature as adjusted for inflation only, (b) to
proceed further with the  underground tank  corrections program, (c)
to perform engineering evaluations on buildings  that have been
identified  as potentially in need of seismic retrofitting, or (d) to

proceed with design  and construction of  projects to meet
requirements under the federal Americans with Disabilities  Act.

  No later than March 1, 1998, the University of California shall
provide the  Legislative Analyst  with a progress report showing the
identified savings, by project, and the  purpose for which the
identified savings were used.

  No later than November 1, 1998, the University of California shall
prepare a report showing (a)  the identified savings by project and
(b)
the purpose for which the  identified savings were used.  This report

shall be submitted to the chair of the Joint Legislative Budget
Committee and to the  chairs of the fiscal committees in each house.



6440-302-0658--For capital outlay, University of California, payable
from  the Higher Education  Capital Outlay Bond Fund of 1996  . . .
21,637,000

Schedule:

Los Angeles Campus:

(1)99.04.300--Center for Health Sciences, Earthquake
Reconstruction  . . .  21,637,000

Provisions:

1. These funds are to be used to replace the UCLA Center for Health
Sciences facility that was  damaged in the 1994 Northridge
earthquake. Notwithstanding Control  Section 2.00, the
appropriation from this general obligation bond is exempt from
limitations  as to the period of  availability and shall remain
available
from year to year until expended.

2. These funds may be used only as matching funds for a replacement
facility consistent with  Damage Survey Reports approved by the
Federal Emergency Management  Agency.

3. Notwithstanding any other provision of law, including without
limitation, Government Code  Section 13332.11, upon approval of
the Budget Act, the University of  California may proceed  with any
phase of this project including preparation of preliminary plans,
working drawings, or  construction.

6440-490--Reappropriation, University of California.
Notwithstanding any  other provision of law,  the balances as of June

30, 1997, of the appropriations provided in the  following citations
are  reappropriated for the purposes and subject to the limitations,
unless  otherwise specified,  provided for in the appropriations and
shall be available for encumbrance  and expenditure until  June 30,
1998:

001--General Fund

(1) Item 6440-001-001, Budget Act of 1996.

Provisions:

1. Of the funds reappropriated by this item from Item 6440-001-001,
Budget Act of 1996, up to  $15,000,000 shall be available for
deferred maintenance, special repair  projects, and the  replacement
of instructional equipment. As of June 30, 1997, the balance of  the
funds from that  item in excess of $15,000,000 shall revert to the

     General Fund.

2. The University of California shall report to the Department of
Finance  and the Joint Legislative  Budget Committee the amount of
the balance, on June 30, 1997, of Item  6440-001-001 of the  Budget
Act of 1996, by September 30, 1997, and the expenditures made
pursuant to this item by  September 30, 1998.

3. The University of California shall return to the Controller state
general  funds appropriated in  the Budget Act of 1996 in an amount
equal to the General Fund portion of  federal contract and  grant
overhead funds in excess of the 1996-97 year budgeted amount.

(2) Item 6440-003-001, Budget Act of 1996.

6600-001-0001--For support of Hastings College of the Law  . . .
12,274,000

Provisions:

1. The appropriation made by this item is exempt from Section
31.00 of  this act.

2. Of the funds appropriated by this item, $774,000 is for support of

Program 40, Student  Services, to provide financial aid to needy
students attending the Hastings  College of the Law,  according to
the nationally accepted needs analysis methodology.

6600-001-0814--For support of Hastings College of the Law, for
allocation by the State  Controller in accordance with the provisions

of Government Code Section  8880.5 as enacted by  the voters in
Proposition 37 at the November 1984 General Election,  payable
from the California  State Lottery Education Fund  . . . 125,000

Provisions:

1. All funds received pursuant to Proposition 37 that are allocable
to
the  Hastings College of the  Law pursuant to Section 8880.5 of the
Government Code, and that are in  excess of the amount
appropriated in this item are hereby appropriated in augmentation of
this  item.

6600-301-0658--For capital outlay, Hastings College of the Law,
payable  from the Higher  Education Capital Outlay Bond Fund of
1996  . . . 8,332,000

Schedule:

(1) 60.10.001-198 McAllister Street
Building-Renovation--Construction   .  . . 8,332,000

6600-490--Reappropriation, Hastings College of the Law.
Notwithstanding  any other provision of  law, the balance, as of June

30, 1997, of the appropriation provided in the  following citation is

reappropriated and shall be available for encumbrance and
expenditure until  June 30, 1998:

001--General Fund

(1) Item 6600-001-001, Budget Act of 1996.

Provisions:

1. The Hastings College of the Law shall report to the Department
of  Finance and the Joint  Legislative Budget Committee the amount
of the balance, on June 30,  1997, of Item  6600-001-001 of the
Budget Act of 1996, by September 30, 1997, and  shall also report
the  expenditures made pursuant to this item by September 30, 1998.


6610-001-0001--For support of the California State University  . . .
1,826,333,000

Schedule:

(a) Support  . . . 2,566,479,000

(b) Bilingual Teacher Recruitment  . . . 2,000,000

(c) Reimbursements  . . . -132,778,000

(d) Amount payable from the Higher Education Fees and Income
Fund  (Item 6610-001-0498)  . .  . -609,368,000

Provisions:

1. The appropriations made by this item are exempt from Section
31.00 of  this act, except as  otherwise provided by the applicable
sections of the Government Code  referred to in Section  31.00.

2. Of the amount appropriated by this item, $557,000 is available for

transfer to the California  State University and Colleges Special
Projects Fund pursuant to Section  25008.5 of the Public  Resources
Code, which allows state agencies to retain 50 percent of the
financial benefits realized  through energy savings projects.

3. Of the amount appropriated by this item, $5,815,000 is provided
for  payment of energy service  contracts in connection with the
issuance of Public Works Board Energy  Efficiency Revenue  Bonds.


4. Of the amount appropriated by this item, $350,000 is for transfer
to the  Affordable Student  Housing Revolving Fund for the purpose
of subsidizing interest costs in  connection with bond  financing for

construction of affordable student housing at the Fullerton  and
Hayward campuses  in accordance with Article 3 (commencing with
Section 90085) of Chapter  8 of Part 55 of the  Education Code.

5. Of the amount appropriated by this item, $1,878,000 is for
repayment of  the $17,000,000  financed for the California State
University through a third party for  deferred maintenance  projects
in the 1994-95 fiscal year. It is the intent of the Legislature to
annually provide funds for  that repayment purpose through the
2009-10 fiscal year.

6. Of the amount appropriated by this item, $2,309,000 is for
repayment of  the $24,000,000 to be  financed for the California
State University through a third party for  deferred maintenance
projects in the 1995-96 fiscal year. It is the intent of the
Legislature
to  annually provide funds for  that repayment purpose through the
2010-11 fiscal year.

7. Of the amount appropriated by this item, $1,700,000 is for
conversion of  the Stockton  Developmental Center into the Regional
and Continuing Education Center  at CSU, Stanislaus. It  is the
intent
of the Legislature to annually provide funds for this purpose
through
the 2001-2002  fiscal year.

6610-001-0498--For support of the California State University, for
payment to Item  6610-001-0001, payable from the Higher
Education Fees and Income,  CSU Fund  . . .  609,368,000

Provisions:

1. All funds received in the Higher Education Fees and Income, CSU
Fund,  that are in excess of  the amount appropriated by this item
are
hereby appropriated in  augmentation of this item.

6610-001-0890--For support of the California State University,
payable  from the Federal Trust  Fund  . . . 10,000,000

Provisions:

1. All funds deposited in the Federal Trust Fund for the California
State  University for the  purposes of this item and that are in
excess
of the amount appropriated by  this item are hereby  appropriated in
augmentation of this item and are exempt from Section  28.00 of this
act, pursuant  to subdivision (a) of Section 89753 of the Education
Code.

6610-002-0001--For support of the California State University for
transfer  to and in augmentation  of Item 6610-001-0001, for the
purpose of providing direct costs and  administrative overhead
expenses for the Assembly, Senate, Executive and Judicial Fellows
programs and the Center for  California Studies  . . . 2,132,000


Schedule:

(a) Center for California Studies-- Fellows Program  . . . 279,000


(b) Center for California Studies-- Other  . . . 25,000

(c) Assembly Fellows  . . . 567,000

(d) Senate Fellows  . . . 567,000

(e) Executive Fellows  . . . 499,000

(f) Judicial Fellows  . . . 195,000

6610-003-0001--For support of the California State University for
transfer  to and in augmentation  of Item 6610-001-0001, for
payment of lease-purchase payments to be  allocated upon order of
the Director of Finance no sooner than necessary to allow the
California  State University to make  the required lease-purchase
payments  . . . 59,653,000

Schedule:

(a) Rental, insurance and administrative payments  . . . 61,120,000


(b) Reimbursements  . . . -1,467,000

6610-301-0658--For capital outlay, California State University,
payable  from the Higher  Education Capital Outlay Bond Fund of
1996  . . . 152,500,000

(1) 06.48.315-Systemwide: Minor Capital Outlay
Program--Preliminary  plans, working drawings,  and construction  . .

. 14,958,000

(2) 06.48.375-Systemwide: Seismic Studies--Preliminary plans  . . .
250,000

(3) 06.52.103-CSU, Chico: Fire Life Safety--Working drawings  . . .
79,000

(4) 06.52.104-CSU, Chico: Butte Hall Asbestos
Abatement--Working  drawings  . . . 100,000

(5) 06.54.073-CSU, Dominguez Hills: Seismic Upgrade, Educational
Resources  Complex--Preliminary plans, working drawings, and
construction  . . .  860,000

(6) 06.56.086-CSU, Fresno: Renovate McLane Hall--Construction  .
. .  7,359,000

(7) 06.56.087-CSU, Fresno: Infrastructure
Improvements--Preliminary  plans and working  drawings  . . .
271,000

(8) 06.62.082-CSU, Fullerton: Seismic Upgrade, Library-Phase
II-Preliminary plans, working  drawings, and construction  . . .
3,153,000

(9) 06.62.083-CSU, Fullerton: Seismic Upgrade, Langsdorf
Hall--Preliminary plans and working  drawings  . . . 258,000

(10) 06.67.091-Humboldt State University: Seismic Upgrade Field
House--Construction  . . .  1,650,000

(11) 06.67.092-Humboldt State University: Infrastructure
Improvements--Working drawings  . . .  529,000

(12) 06.67.093-Humboldt State University: Seismic Upgrade, West
Gym--Working drawings and  construction  . . . 891,000

(13) 06.71.103-CSU, Long Beach: Fire /Life Safety Infrastructure --
Working drawings  . . .  146,000

(14) 06.71.104-CSU, Long Beach: Seismic Upgrade, Renovate Fine
Arts  Bldg. &  Addition--Working drawings and construction  . . .
808,000

(15) 06.71.105-CSU, Long Beach: Peterson Hall
Addition--Preliminary  plans and working  drawings  . . . 1,428,000



(16) 06.73.087-CSU, Los Angeles: Seismic Upgrade-Library, South
--Construction  . . .  2,028,000

(17) 06.98.098-CSU, Pomona: Engineering Labs Replacement
--Construction  . . . 23,494,000

(18) 06.76.090-CSU, Sacramento: Perimeter Road Safety
Improvements--Working drawings and  construction  . . . 7,588,000


(19) 06.78.072-CSU, San Bernardino: Corporation
Yard/Administration  Services  Addition/Renovation --Working
drawings and construction  . . . 5,745,000

(20) 06.78.086-CSU, San Bernardino: Seismic Upgrade-Visual Arts
Building--Construction  . . .  4,428,000

(21) 06.80.146-San Diego State University: Infrastructure
Improvements--Working drawings  . . .  254,000

(22) 06.84.087-San Francisco State University: Corporation
Yard-Equipment  . . . 484,000.

(23) 06.84.089-San Francisco State University: Central Plant and
Utility  Infrastructure--Equipment  . . . 48,000

(24) 06.84.097-San Francisco State University: Seismic Upgrade,  J
Paul  Leonard  Library--Preliminary plans and working drawings  . . .

726,000

(25) 06.84.098-San Francisco State University: Renovate Hensill
Hall  (Seismic)--Preliminary  plans and working drawings  . . .
1,032,000

(26) 06.86.104-San Jose State University: Central Plant,
Telecommunications and Utility  Distribution System
Upgrade--Construction  . . . 25,737,000

(27) 06.86.106-San Jose State University: Seismic Upgrade,
Sweeney  Hall--Preliminary plans,  working drawings, and
construction  . . . 798,000

(28) 06.68.056-CSU, San Marcos: Academic Complex II-Building
15--Equipment  . . . 1,556,000

  (29) 06.90.074-Sonoma State University: Library/Information
Center  --Working drawings and  construction  . . . 30,775,000

(30) 06.92.051-CSU, Stanislaus: Professional Schools
Building--Equipment  . . . 2,326,000

(31) 06.92.053-CSU, Stanislaus: Campus Perimeter Road--Working
drawings and construction  .  . . 2,403,000

(32) 06.92.058-CSU, Stockton Regional Center for Education and
Human  Services--Preliminary  plans, working drawings,
construction, and equipment  . . . 2,500,000

(33) 70.68.003-California Maritime Academy: Utility Infrastructure
--Construction  . . . 3,226,000

  (34) 70.68.004-California Maritime Academy: Laboratory/ Library
Addition--Construction  . . .  4,163,000

(35) 06.51.003-California Maritime Academy: Seismic Upgrade,
Campuswide--Preliminary plans  and working drawings  . . . 449,000


Provisions:

1. Identified savings in funds encumbered from this general
obligation
bond  fund for construction  contracts for capital outlay projects,
remaining after completion of a capital  outlay project and  upon
resolution of all change orders and claims, may be used: (a) to begin

working drawings for a  project for which preliminary plans funds
have been appropriated and the  plans have been  approved by the
State Public Works Board consistent with the scope and  cost
approved by the  Legislature as adjusted for inflation only, (b) to
proceed further with the  underground tank  corrections program, (c)
to perform engineering evaluations on buildings  that have been
identified  as potentially in need of seismic retrofitting, or (d) to

proceed with design  and construction of  projects to meet
requirements under the federal Americans with Disabilities  Act.

  No later than March 1, 1998, the California State University shall
provide  the Legislative  Analyst with a progress report showing the
identified savings, by project,  and the purpose for  which the
identified savings were used.

  No later than November 1, 1998, the California State University
shall  prepare a report showing  the identified savings, by project,
and
the purpose for which the identified  savings were used. This  report

shall be submitted to the Chairperson of the Joint Legislative Budget

Committee and to the  chairpersons of the fiscal committees in each
house.

6610-301-0705--For capital outlay, California State University,
payable  from the Higher  Education Capital Outlay Bond Fund of
1992.

Provisions:

1. Identified savings in funds encumbered from this general
obligation
bond  fund for construction  contracts for capital outlay projects,
remaining after completion of a capital  outlay project and  upon
resolution of all change orders and claims, may be used: (a) to begin

working drawings for a  project for which preliminary plans funds
have been appropriated and the  plans have been  approved by the
State Public Works Board consistent with the scope and  cost
approved by the  Legislature as adjusted for inflation only, (b) to
proceed further with the  underground tank  corrections program, (c)
to perform engineering evaluations on buildings  that have been
identified  as potentially in need of seismic retrofitting, or (d) to

proceed with design  and construction of  projects to meet
requirements under the federal Americans with Disabilities  Act.

  No later than March 1, 1998, the California State University shall
provide  the Legislative  Analyst with a progress report showing the
identified savings, by project,  and the purpose for  which the
identified savings were used.

  No later than November 1, 1998, the California State University
shall  prepare a report showing  the identified savings, by project,
and
the purpose for which the identified  savings were used. This  report

shall be submitted to the Chairperson of the Joint Legislative Budget

Committee and to the  chairpersons of the fiscal committees in each
house.

6610-301-0782--For capital outlay, California State University,
payable  from the Higher  Education Capital Outlay Bond Fund of
1986.

Provisions:

1. Identified savings in funds encumbered from this general
obligation
bond  fund for construction  contracts for capital outlay projects,
remaining after completion of a capital  outlay project and  upon
resolution of all change orders and claims, may be used: (a) to begin

working drawings for a  project for which preliminary plans funds
have been appropriated and the  plans have been  approved by the
State Public Works Board consistent with the scope and  cost
approved by the  Legislature as adjusted for inflation only, (b) to
proceed further with the  underground tank  corrections program, (c)
to perform engineering evaluations on buildings  that have been
identified  as potentially in need of seismic retrofitting, or (d) to

proceed with design  and construction of  projects to meet
requirements under the federal Americans with Disabilities  Act.

  No later than March 1, 1998, the California State University shall
provide  the Legislative  Analyst with a progress report showing the
identified savings, by project,  and the purpose for  which the
identified savings were used.

  No later than November 1, 1998, the California State University
shall  prepare a report showing  the identified savings, by project,
and
the purpose for which the identified  savings were used. This  report

shall be submitted to the Chairperson of the Joint Legislative Budget

Committee and to the  chairpersons of the fiscal committees in each
house.

6610-301-0785--For capital outlay, California State University,
payable  from the 1988 Higher  Education Capital Outlay Bond
Fund.

Provisions:

1. Identified savings in funds encumbered for construction contracts
from  this general obligation  bond fund after completion of a
capital
outlay project, and upon resolution  of all change orders  and
claims,
may be used: (a) to begin working drawings for a capital outlay
project for which  preliminary plans funds have been appropriated
and the plans have been  approved by the State  Public Works Board
consistent with the scope and cost approved by the  Legislature as
adjusted  for inflation only, (b) to proceed further with the
underground tank  corrections program, (c) to  perform engineering
evaluations on buildings that have been identified as  potentially in

need of  seismic retrofitting, or (d) to proceed with design and
construction of  projects to meet  requirements under the federal
Americans with Disabilities Act.

  No later than March 1, 1998, the California State University shall
provide  the Legislative  Analyst with a progress report showing the
identified savings, by project,  and the purpose for  which the
identified savings were used.



  No later than November 1, 1998, the California State University
shall  prepare a report showing  the identified savings, by project,
and
the purpose for which the identified  savings were used. This  report

shall be submitted to the Chairperson of the Joint Legislative Budget

Committee and to the  chairpersons of the fiscal committees in each
house.

6610-301-0791--For capital outlay, California State University,
payable  from the Higher  Education Capital Outlay Bond Fund of
June 1990.

Provisions:

1. Identified savings in funds encumbered from this general
obligation
bond  fund for construction  contracts for capital outlay projects,
remaining after completion of a capital  outlay project and  upon
resolution of all change orders and claims, may be used: (a) to begin

working drawings for a  project for which preliminary plans funds
have been appropriated and the  plans have been  approved by the
State Public Works Board consistent with the scope and  cost
approved by the  Legislature as adjusted for inflation only, (b) to
proceed further with the  underground tank  corrections program, (c)
to perform engineering evaluations on buildings  that have been
identified  as potentially in need of seismic retrofitting, or (d) to

proceed with design  and construction of  projects to meet
requirements under the federal Americans with Disabilities  Act.

  No later than March 1, 1998, the California State University shall
provide  the Legislative  Analyst with a progress report showing the
identified savings, by project,  and the purpose for  which the
identified savings were used.

  No later than November 1, 1998, the California State University
shall  prepare a report showing  the identified savings, by project,
and
the purpose for which the identified  savings were used. This  report

shall be submitted to the Chairperson of the Joint Legislative Budget

Committee and to the  chairpersons of the fiscal committees in each
house.

6610-401--In the event the bonds authorized for the projects
scheduled in  Item 6610-301-660,  Budget Act of 1995, are not sold,
the California State University shall  commit a sufficient portion
of
its support appropriation provided for in this Budget Act to repay
any  loans from the Pooled  Money Investment Account. It is the
intent of the Legislature that this  commitment shall be  included in

future Budget Acts until outstanding loans from the Pooled  Money
Investment  Account are repaid either through the sale of bonds or
from an  appropriation.

6610-490--Reappropriation, California State University.
Notwithstanding  any other provision of  law, the balances of the
appropriations provided in the following citations  are
reappropriated
for  the purposes and subject to the limitations, unless otherwise
specified,  provided for in the  appropriations and shall be
available
for expenditure until June 30, 1999:

001--General Fund

(1) Item 6610-001-001, Budget Act of 1996.

Provisions:

1. The reappropriated funds from Item 6610-001-001, Budget Act
of  1996, shall be available for  the  general support of the
California
State University.

2. The California State University shall report to the Department of
Finance and the Joint  Legislative Budget Committee the amount of
the balance on June 30, 1997,  of Item  6610-001-001 of the Budget
Act of 1996, by September 30, 1997,  and  also shall report the
expenditures made pursuant to this item by September 30, 1998, and
September 30, 1999.

(2) Item 6610-003-001, Budget Act of 1996.

498--Higher Education Fees and Income, CSU Fund

(1) Item 6610-001-498, Budget Act of 1996.

6870-001-0001--For support of Board of Governors of the
California  Community Colleges  . . .  9,303,000

Schedule:

(a) 10-Apportionments  . . . 1,072,000

(b) 20-Special Services and Operations  . . . 13,585,000

(c) 30.01-Administration  . . . 4,465,000

(d) 30.02-Administration--Distri-buted  . . . -4,465,000

(e) Reimbursements  . . . -5,354,000

Provisions:

1. Funds appropriated by this item may be expended or encumbered
to  make one or more  payments under a personal services contract
of a visiting educator pursuant  to Section 19050.8 of  the
Government Code, a long-term special consultant services contract,
or  an employment  contract between an entity that is not a state
agency and a person who is  under the direct or daily  supervision of

a state agency, only if all of the following conditions are  met:

(a) The person providing service under the contract provides full
financial  disclosure to the Fair  Political Practices Commission in
accordance with the rules and regulations  of the commission.

(b) The service provided under the contract does not result in the
displacement of any represented  civil service employee.

(c) The rate of compensation for salary and health benefits for the
person  providing service under  the contract does not exceed by
more than 10 percent the current rate of  compensation for salary
and health benefits determined by the Department of Personnel
Administration for civil service  personnel in a comparable position.

The payment of any other  compensation or any  reimbursement for
travel or per diem expenses shall be in accordance with  the State
Administrative Manual and the rules and regulations of the
Department of  Personnel  Administration.

2. Of the funds appropriated in Schedule (e), $229,000 shall be
available  for expenditure only  after the Chancellor of the
California
Community Colleges certifies to the  Department of Finance  that a
sufficient number of community college districts have entered into
service agreements with  the chancellor's office to offset fully the
estimated cost of $229,000 for  preparing information to  meet the
applicable requirement of the federal Student Right to Know Act.


6870-001-0705--For support of Board of Governors of the
California  Community Colleges,  Program 20.40.010-Facilities
Planning, payable from the Higher Education  Capital Outlay Bond
Fund of 1992  . . . 506,000

6870-001-0791--For support of Board of Governors of the
California  Community Colleges,  Program 20.40.010--Facilities
Planning, payable from the June 1990  Higher Education Capital
Outlay Bond Fund  . . . 400,000

6870-101-0001--For local assistance, Board of Governors of the
California  Community Colleges  (Proposition 98)  . . .
1,718,528,000

Schedule:

(a) 10.10.010-Apportionments  . . . 1,296,547,000

(b) 10.10.020-Basic Skills, GAIN, Apprenticeship  . . . 35,996,000



(c) 20.10.005-Student Financial Aid Administration  . . . 7,146,000



(d) 20.10.010-Extended Opportunity Programs and Services and
Special  Services  . . . 59,474,000

  (e) 20.10.020-Disabled Students  . . . 42,093,000

(f) 20.10.070-Matriculation  . . . 50,309,000

(g) 20.20.020-Academic Senate for the Community Colleges  . . .
452,000

(h) 20.20.040-Faculty and Staff Diversity  . . . 1,859,000

(i) 20.30.010-Faculty and Staff Development  . . . 5,233,000

(j) 20.30.020-Instructional Improvement, for Transfer to the
Community  College Fund for  Instructional Improvement  . . .
1,630,000

(k) 20.30.050-Economic Development  . . . 9,073,000

(l)  20.30.070-Transfer Education and Articulation  . . . 589,000


(n) 20.40.040-Hazardous Substances  . . . 8,000,000

(p) 20.40.035-Instructional Equipment and Library
materials--Replacement   . . . 15,000,000

(q) 20.40.045-Telecommunications and Technology Infrastructure  .
. .  14,000,000

(r) 10.10.030-Growth for Apportion-ment  . . . 67,000,000

(s) 20.40.025-Scheduled Maintenance /Special Repairs  . . .
39,000,000

(t) 20.20.050-Part-Time Faculty Health Insurance  . . . 500,000

(u) 20.10.040-Fund for Student Success  . . . 11,418,000

(v) 20.10.045-Special Services for TANF Recipients  . . . 53,209,000


Provisions:

1. The funds appropriated in Schedules (a), (b), (c), (d), (e), (f),
(h),
(i),  (k), (p), (q), (r), (t), and  (v) are for transfer by the
Controller
during the 1997-98 fiscal year to  Section B of the State  School
Fund.

2. Notwithstanding any other provision of law, $20,907,000 of the
funds  appropriated in Schedule  (b) shall be for allocation to
community college districts in the 1997-98  fiscal year for the
purposes of funding FTES in courses in basic skills, including
English-as-a-second-language  courses and work force preparation
courses for newly legalized  immigrants, to the extent the total
FTES
                                                              claimed
by a district for the 1997-98 fiscal year exceeds the level of
total FTES funded for  that district in the 1997-98 fiscal year. The
Chancellor of the California  Community Colleges shall  develop
criteria for allocating these funds.

3. (a) Of the amount appropriated in Schedule (b), up to $7,089,000
shall  be available as  necessary upon certification by the
Chancellor
of the California Community  Colleges for the  purpose of funding
community college-related and supplemental instruction  pursuant to
Section  3074 of the Labor Code as provided in Section 8152 of the
Education  Code. No community  college district shall use funds
available under this provision to offer any  new apprenticeship
training program or the expansion of any existing program unless the
new  program or expansion  has been approved by the chancellor.

(b) Notwithstanding Section 8152 of the Education Code, each
60-minute  hour of teaching time  devoted to each indentured
apprentice enrolled in and attending classes of  related and
supplemental instruction as provided under Section 3074 of the
Labor  Code shall be reimbursed  at the rate of four dollars and
twenty-two cents ($4.22) per hour. For  purposes of this provision,
each hour of teaching time may include up to 10 minutes for passing
time  and breaks.



4. Of the funds appropriated in Schedule (b), $8,000,000 is for
educational  services to participants  in the Greater Avenues for
Independence Program and shall not be  considered as part of the
base  revenues for community college districts in computing
apportionments for  the 1998-99 fiscal year.  The additional FTES
generated above each district's funded FTES shall not  be added to
the  subsequent year's FTES base, and the additional revenues and
FTES shall  not be included in  calculations for determining the
average revenues per FTES.

5.  Of the funds appropriated in Schedule (d), $52,611,000 is for
Extended  Opportunity Programs  and Services in accordance with
Article 8 (commencing with Section  69640) of Chapter 2 of Part  42
of the Education Code; $6,863,000 is for funding, at all colleges,
the
Cooperative Agencies  Resources for Education program in
accordance with Article 4  (commencing with Section 79150)  of
Chapter 9 of Part 48 of the Education Code. The board of governors
shall allocate funds on a  priority basis and to local programs on
the
basis of need for student  services.

6. (a) The funds appropriated in Schedule (e) are for local
assistance
for  funding the excess direct  instructional cost of providing
special
support services or instruction, or  both, to disabled students
enrolled at community colleges, and for state hospital programs.

(b) Of the amount appropriated in Schedule (e) at least $792,066
shall be  used for support of the  High Tech Centers for activities
including, but not limited to, training of  district employees and
students in the use of specialized computer equipment for the
disabled. All  High Tech Centers  shall meet standards developed by
the Chancellor's Office. Colleges that  receive these  augmentations
shall not supplant existing resources provided to the centers.

(c) Notwithstanding any other provision of law, of the funds
appropriated  in Schedule (e),  $1,781,130 shall be for state
hospital
adult education programs at the  hospitals served by the  Coast,
Kern, and West Valley Community College Districts since the
1986-87 fiscal year. The  amount provided includes the level of
funding provided for these state  hospital programs in the  1986-87
fiscal year, plus subsequent cost-of-living adjustments if provided.
If
adult education  services at any of the three hospitals are not
supported by the community  colleges in the 1997-98  fiscal year, the

associated funds shall, upon order of the Department of  Finance,
after 30 days'  notice to the Chairperson of the Joint Legislative
Budget Committee, be  transferred to the State  Department of
Developmental Services (DDS). For any transfer of funds to  DDS
during the  1997-98 fiscal year, the Proposition 98 base funding
levels for community  colleges and DDS shall  be adjusted
accordingly.

7. The funds appropriated in Schedule (f) are for the purpose of
student  matriculation, as speci  fied in Article 1 (commencing with
Section  78210) of Chapter 2 of Part 48  of the Education  Code.


8. Of the funds appropriated in Schedule (l), $589,000 is for Project

Assist.

  9. Of the funds appropriated in Schedule (a), up to $100,000 is for

a  maintenance allowance for  educational services to inmates, in
lieu
of other transportation funding,  pursuant to regulations  adopted by

the board of governors.

10. Of the funds appropriated in Schedules (b) and (c), the funds not

required for the 1997-98  fiscal year to meet the demand for the
programs funded under those  schedules shall be made  available on a
one-time basis for general apportionment under Schedule (a),
provided that no  transfer shall occur prior to May 15, 1997.

11. The funds appropriated in Schedule (p) are available for the
purpose of  providing community  college districts with funds to
replace high priority instructional equipment,  and library
materials.
The Chancellor of the California Community Colleges shall allocate
these  funds on the basis that,  for every $3 of funds allocated from

Schedule (p), the recipient district  shall provide $1 in  matching
funds. These funds shall not be used for personal services costs  or
operating expense.

12. Of the funds appropriated in Schedule (s), $39,000,000 shall be
distributed by the Chancellor  of the California Community Colleges
to community college districts on a  project-by-project basis  based
on priority of need for the project. As a condition of receiving
these
funds, a district shall  provide to the chancellor a resolution from
the
district governing board  indicating that it will  increase its
operations
and maintenance spending from 1995-96 fiscal year  actual levels by
the  amount of the allocation plus an amount to be provided from
district  discretionary funds  equivalent to $1 for each $1 of state
funds. The chancellor may waive the  matching requirement,
case-by-case, based upon a review of a district's financial
condition.
The  question of whether a  district has complied with its resolution

shall be reviewed under the annual  audit of that district.

13. Notwithstanding any other provision of law, the funds
appropriated in  Schedule (r) shall only  be allocated for growth in
FTES, on a district-by-district basis, as  determined by the
Chancellor
of  the California Community Colleges.

14. (a) $9,865,000 of the funds provided in Schedule (q) shall be for

the  purpose of providing  allocations to all districts. It is the
intent
that colleges receiving these funds  shall maintain all of  the
capabilities specified in the 1996-97 Budget Act for the
Telecommunications and Technology  Infrastructure program. The
funds appropriated in this item shall be  allocated by the
Chancellor,
shall not supplant existing funds used for technology and networking
purposes, and shall be  subject to established fiscal controls,
annual
reporting and accountability  requirements specified  by the
Chancellor. It is the intent that this allocation shall enable
further
development of networks.  Therefore, colleges shall match
maintenance and ongoing costs with other  funds, after installation,
for the following required purposes: (1) maintenance of
communication  lines, software and other  costs associated with
connecting to the collaborative California State
University/California
Community College telecommunications wide area network (C Net);
(2)  video conference  connectivity, transport, maintenance, and
training; (3) local planning and  development for  improving library
technology including library automation, connections to  college
local
area  networks and connections to external databases; (4) digital
satellite systems  and components not  funded in fiscal year 1996-97,

and the following optional purposes: (5) the  development and
expansion of local area networks both within and between buildings:
(6)  development of  districtwide wide area networks for
interconnecting multiple campuses and  off campus centers  within a
district; and (7) implementation of local technology applications
that
are intended to  improve student learning and other services.

   The Chancellor shall allocate the $9,865,000 by providing $85,000
for  each of the 106 colleges  and $45,000 for each of the 19
governing sites that are not co-located with  the colleges. All
provisions related to technology standards and telecommunication
plans as  specified in Item  6870-101-001, Provision 17 (a) of the
1996-97 Budget Act, shall apply.

(b) $4,135,000 of the funds provided in schedule (q) shall be for the

purpose of supporting  technical and application innovations and for
coordination of activities that  serve to maximize the  utility of
the
technology investments of the community college system  toward
improving learning  outcomes. Allocations shall be made by the
Chancellor, based on criteria  and guidelines as  developed by the
Chancellor, on a competitive basis through the RFA/RFP  application
process as  follows:

(1) At least $2,200,000 shall be available for technical and
application pilot  projects that improve  inter-college relationships
in
the areas of: (a) learning and instructional  services; (b) student
services; (c) administrative services. Not more than 25 percent of
the
amount shall be allocated  for this purpose.

(2) All provisions as specified in Item 6870-101-0001, Provision 17
(b) (2)  of the 1996-97 Budget  Act shall apply to provision (1)
above.

(3) Not more than $1,935,000 shall be available for a regional
coordination, cooperative purchase  agreement, and a faculty
development center. The dollar amounts shall be  the same as in
1996-97.  All other provisions as specified in Item 6870-101-0001,
Provision 17 (b)  (3) of the 1996-97  Budget Act shall apply.

(c) Not later than November 1, 1997, the Chancellor shall submit a
report  to the Legislative  Analyst, the budget fiscal committees,
and
the Department of Finance on  any changes to the  standards
developed pursuant to the control provisions for this program in  the

1996-97 Budget  Act.

(d) Not later than April 1, 1998 the Chancellor shall provide a
status
report  to the Legislative  Analyst and Department of Finance on the
implementation of the  telecommunication and  technology
infrastructure program described herein, this report shall be
consistent with the report  provisions outlined for this program in
Item 6870-101-0001, Provision  17(d) of the 1996-97  Budget Act.


15. The funds in Schedule (u) shall be used for competitive grants to

increase student success  based on an analysis of student outcomes.
The funds shall be available for a  limited duration, after  which
colleges shall institutionalize the programs within their budgets.
The
Chancellor shall  develop criteria for allocation of the competitive
grants. Of the funds  appropriated in Schedule  (u):

(a) $1,000,000 shall be available for small planning grants of up to
one year  duration.

(b) $8,695,000 shall be available for the initial year of two or
three
year  projects where the state  share shall be no greater than 75% of

the costs of the first year and no  more than 25% in the last.

(c) Up to $944,000 is for the Puente Project if these funds are
matched by  $100,000 of private  funds and the participating
community colleges and University of California  campuses maintain
their 1995-96 support level for the Puente Project.

(d) Up to $489,000 is for the Mathematics, Engineering and Science
Achievement/Minority  Engineering (MESA/MEP) Programs.

(e) Up to $299,000 is for Migrant Education Teacher Preparation
Programs.

   As a condition of receipt of funds pursuant to Provision 15 (a)
and
(b),  colleges must submit to  the Chancellor's Office a yearly
report
including: an expenditure plan, a  progress report detailing  number
of students served, and the ability of the college to increase
student
success based on an  analysis of student outcomes. It is the intent
that the Chancellor's Office  submit a report to the  Legislature and

Department of Finance by September 30, 1998. The report  shall
include an  analysis of the programs funded at each campus,
including the effects on  student outcomes. The  Chancellor shall
also
identify any colleges which did not continue operation  of the
program after  state funds have ceased and the reasons therefore.


16. The funds appropriated in Schedule (v) are for the purpose of
assisting  welfare recipient  students and those in transition off of

welfare to achieve long term  self-sufficiency through  coordinated
student services offered at community colleges including:
work-study; other  educational related work experience; job
placement services; child care  services; and coordination  with
county welfare offices to determine eligibility and availability of
services. All services funded  in this schedule shall be for current
recipients of Temporary Assistance for  Needy Families  (TANF)
who may utilize these services until their educational objectives
are
met but for no longer  than three years. The Chancellor shall develop

an equitable method for  allocating funds to all  districts and
colleges
based on the relative numbers of TANF recipients in  attendance and
shall  allocate funds for the following purposes:

(a) $32,500,000 shall be allocated for work/study. These funds shall
be  used solely for payments  to employers provided that such
payments shall not exceed 75% of the  wage for the work/study
positions; the employers shall pay at least 25% of the wage for the
work/study position. These  funds shall be expended only if the hours

of education and employment for  the student are  sufficient to meet
both state and federal minimum requirements for  qualifying work
related  activities.

(b) $5,255,000 shall be allocated for job development and job
placement  services. It is the intent  that each campus receiving
funds
shall develop placements for welfare  recipients engaged in paid  and

non-paid work experiences which further develop students skills in
their career objectives and  meet federal and state work requirements

for work related activities. It is  also the intent that the  staff
at each
college shall develop job placements for students completing  their
educational  objectives.

(c) $10,200,000 shall be allocated for subsidized child care for
children of  TANF recipients  through campus based centers or
parental choice vouchers at rates  consistent with programs  operated

by the State Department of Education including parental
contribution schedules.  Subsidized campus child care for TANF
recipients will be provided during  the period they are  engaged in
state and federal qualifying work activities and for up to three
months or the end of the  academic year, whichever is greater, for
those in transition off welfare and  enrolled in no less than  six
units
of classes within their educational plan.

(d) $5,254,000 shall be allocated for professional staff at all
colleges
to  coordinate with county  welfare offices for referral and
follow-up
for welfare recipient students and  to compile reports for
submission
to the Chancellor on the progress of the program.

As a condition of receipt of the funds available in Schedule (v),
colleges are  required to submit to  the Chancellor's Office reports
in
a format specified by the Chancellor by  the third week following
the
end of a semester/quarter term commencing in January 1997 which
identify the costs of  specific services utilized by each TANF
recipient, their eligibility status,  hours engaged monthly in
qualifying work activities, and the student's progress toward self
sufficiency  including units  attempted and successfully completed,
and success in work activities as  reported by employers  and
comments from teachers and counselors. It is intended that the
Chancellor's Office further  develop the reporting criteria for
participating colleges and submit that for  review to the
Legislative
Analyst, the Governor's Office of Child Development and  Education,
the Health and  Welfare Agency and the Department of Finance no
later than August 1,  1997 for review and  comment. It is intended
that, to the extent practical, reporting from  colleges utilize data
gathered  for federal reporting requirements at the state and local
level. Further, it is  intended that the  Chancellor's Office compile
the
information for biannual reports to the  Legislature, the Governor's
Office, the Legislative Analyst and the Department of Finance by
March 30  and September 30 of  each year, thereafter as specified in
the annual Budget Act.

17. Notwithstanding any other provision of law or regulation, if
1997-98  local revenues (property  tax and student fees) exceed the
estimates included in the Budget Act, an  equivalent amount of  funds

in Schedule (a) shall only be allocated to districts for one-time
purposes based on the  statewide ratio of actual FTES served for the
preceding fiscal year. This  amount will be reduced  from the
apportionment base of districts in subsequent years. Also, if local
revenues in excess of  the amount estimated for the 1996 Budget Act
occurs, funds allocated by  the Chancellor from  Schedule (a) of Item

6870-101-001 of the 1996 Budget Act, equivalent to  the excess
local  revenue amounts, shall be reduced from district base
apportionments for  purposes of determining  allocations of funds
budgeted herein in Schedules (a) and (r).

18. Pursuant to Sections 69648.5, 78216, and 84850 of the
Education  Code, the Chancellor may  allocate funds appropriated in
Schedules (d), (e), and (f) to one or more  districts for program
evaluation purposes.

6870-101-0814--For local assistance, Board of Governors of the
California  Community Colleges,  for allocation by the State
Controller in accordance with the provisions of  Government Code
Section 8880.5 as enacted by the voters in Proposition 37 at the
November  1984 general election,  payable from the California State
Lottery Education Fund  . . . 91,811,000

Provisions:

1. All funds received pursuant to Proposition 37 that are allocable
to
community college districts  pursuant to Section 8880.5 of the
Government  Code, that are in excess of  the amount  appropriated in
this item, are hereby appropriated in augmentation of this  item.


6870-101-0909--For local assistance, Board of Governors of the
California  Community Colleges  Program 20.30.020--Instructional
Improvement and Innovation, payable  from the Community  College
Fund for Instructional Improvement  . . . 1,975,000

Provisions:

1. Of the amount appropriated by this item, not more than
$1,630,000 shall  be allocated for grants  and not more than
$345,000 shall be allocated for loans.

6870-101-0959--For local assistance, Board of Governors of the
California  Community Colleges,  for Program 20.10.060-Student
Services-Foster Parent Training Program,  payable from the  Foster
Children and Parent Training Fund pursuant to Section 903.7 of the
Welfare and  Institutions Code  . . . 467,000

6870-103-0001--For local assistance, Board of Governors of the
California  Community Colleges  (Proposition 98), for transfer to and

in augmentation of Item  6870-101-0001, for lease-purchase
payments, including base rental and fees, to be allocated upon order
of the  Department of Finance  no sooner than necessary to allow
selected  community colleges to make  the required  lease-purchase
payments  . . . 57,323,000

6870-111-0001--For local assistance, Board of Governors of the
California  Community Colleges   . . . 0

Schedule:

(a) 10-Apportionments  . . . 8,000,000

(b) 20.10.060-Foster Parent Training   . . . 463,000

(c) 20.30.030-Vocational Education Special Projects  . . . 20,031,000



(d) 20.30.031-Vocational Education Allocations  . . . 28,468,000


(e) 20.30.060-Job Training Partnership Act  . . . 2,337,000

(f) Reimbursements  . . . -59,299,000

Provisions:

1. The amount appropriated in Schedule (e) shall be available for
expenditure until June 30, 1999.

2. The amounts appropriated in Schedules (a), (c) and (d) are for
transfer  by the Controller to  Section B of the State School Fund.


6870-295-0001--For local assistance, Board of Governors of the
California  Community Colleges,  (Proposition 98), for
reimbursement, in accordance with provisions of  Section 6 of Article

XIII B  of the California Constitution or of Section 17561 of the
Government  Code, of the costs of any  new program or increased
level of service of an existing program mandate  by statute or
executive  order, Controller  . . . 1,691,000

Schedule:

(1) 98.01.000.184--Health Fees (Ch. 1, Stats. 1984, 2nd Ex. Sess.)  .

. .  1,691,000

Provisions:

1. Allocation of funds appropriated by this item to the appropriate
local  entities shall be made by  the Controller in accordance with
the
provisions of each statute or  executive order that mandates  the
reimbursement of the costs, and shall be audited to verify the actual

amount of the mandated  costs in accordance with subdivision (d) of
Section 17561 of the  Government Code. Audit  adjustments to prior
year claims may be paid from this item. Funds  appropriated by this
item may  be used to provide reimbursement pursuant to Article 5
(commencing with  Section 17615) of  Chapter 4 of Part 7 of
Division 4 of Title 2 of the Government Code.

6870-301-0658--For capital outlay, Board of Governors of the
California  Community Colleges,  to be allocated by the board of
governors to community college districts  for expenditure as set
forth in the schedule below, payable from the Higher Education
Capital  Outlay Bond Fund of  1996  . . . 153,175,000

Schedule:

Allan Hancock Joint Community College District

Lompoc Valley Center

(1) 40.02.202-Phase I, Facilities-Equipment  . . . 2,379,000

(2) 40.02.203-Library Books, Initial Acquisition--Equipment  . . .
812,000

Cabrillo Community College District

Cabrillo College

(3) 40.06.107-Code Compliance: Health & Safety
Access--Construction  . .  . 4,804,000

Chabot-La Positas Community College District

Chabot College

(4) 40.62.111-Disabled Student Center Renovation--Equipment  . . .
169,000

(5) 40.62.112-Chemistry/Computer Science Renovation (Health &
Safety)--Construction  . . .  7,802,000

Las Positas College

(6) 40.62.211-Science Center/Tech/ Fine Arts, Secondary
Effects--Construction and equipment  .  . . 779,000

(7) 40.62.213-Math/Design Building
Renovation/Addition--Preliminary  plans and working  drawings  . . .

211,000

Chaffey Community College District

Chaffey College

(8) 40.08.108-Child Development Center--Preliminary plans  . . .
125,000

Citrus Community College District

Citrus College

(9) 40.09.117-Regional Adaptive Therapy Facility--Equipment  . . .
60,000

(10) 40.09.119-Cosmetology Addition/ Remodel (Health & Safety)--
Construction  . . . 1,948,000

  (11) 40.09.121-LibraryAddition/Reconstruction--Preliminary plans
and  working drawings  . . .  518,000

Desert Community College District

College of the Desert

(12) 40.10.111-Math/Social Science Buildings--Preliminary plans and
working drawings  . . .  427,000

Compton Community College District

Compton College

(13) 40.12.004-Health & Safety --Math/Science--Construction  . . .
8,932,000

(14) 40.12.005-Demolition, Phase I--Working drawings and
construction  .  . . 1,136,000

Contra Costa Community College District

Contra Costa College

(15) 40.13.105-Child Development Center--Preliminary plans  . . .
65,000

Diablo Valley College

(16) 40.13.210-Classroom/Faculty Offices--Equipment  . . . 198,000


(17) 40.13.214-Physical Science Building (Health &
Safety)--Construction   . . . 10,257,000

(18) 40.13.215-Music Remodel/Addition--Preliminary plans,
working  drawings and construction   . . . 774,000

(19) 40.13.216-Business Language Building--Preliminary plans and
working drawings  . . .  421,000

(20) 40.13.217-Library Building Addition--Preliminary plans and
working  drawings  . . . 323,000

Los Medanos College

(21) 40.13.310-Vocational Technology Addition--Preliminary plans
and  working drawings  . . .  171,000

(22) 40.13.311-Child Development Center---Preliminary plans  . . .
41,000

El Camino Community College District

El Camino College

(23) 40.14.106-Library Renovation, Phase II--Equipment  . . .
949,000

Foothill-DeAnza Community College District

DeAnza College

(24) 40.15.105-Child Development Center--Preliminary plans  . . .
112,000

Foothill College

(25) 40.15.203-Child Care/Development Center (Health &

Safety)--Construction

2,917,000

Fremont-Newark Community College District

Ohlone College

(26) 40.16.108-Child Development Center--Preliminary plans  . . .
61,000

(27) 40.16.110-Instructional Computing Laboratory--Preliminary
plans and  working drawings  . .  . 850,000

Gavilan Community College District

Gavilan College

(28) 40.17.105-Child Development Center--Preliminary plans  . . .
57,000

(29) 40.17.106-Health Occupations Building--Preliminary plans and
working drawings  . . .  178,000

Glendale Community College District

Glendale College

(30) 40.18.117-Aviation Arts Building Addition--Equipment  . . .
48,000

(31) 40.18.118-Fire Protection/Utility System
Upgrade--Construction  . . .  2,139,000

Grossmont-Cuyamaca Community College

District

Cuyamaca College

(32) 40.19.114-Child Development Center--Preliminary plans  . . .
76,000

Grossmont College

(33) 40.19.202-Information System Building--Equipment  . . .
191,000

Imperial Community College District

Imperial Valley College

(34) 40.21.104-Library Addition --Construction and equipment  . . .
1,445,000

Kern Community College District

Bakersfield College

(35)40.22.105-Child Development Center--Preliminary plans  . . .
85,000

(36) 40.22.108-Science and Engineering Code
Corrections--Construction  .  . . 3,979,000

Lassen Community College District

Lassen Community College

(37) 40.24.103-Child Development Center--Preliminary plans  . . .
73,000

Long Beach Community College District

Long Beach City College

(38) 40.25.113-Science/Math Building D (Health &
Safety)--Construction   . . . 12,842,000

(39) 40.25.114-Electrical System Replacement (Health &
Safety)--Preliminary plans, working  drawings and construction  . . .

907,000

Los Angeles Community College District

East Los Angeles College

(40) 40.26.103-Child Care/Development Center (Health & Safety)
--Construction  . . . 3,478,000

Los Angeles City College

(41) 40.26.203-Mechanical System Conversion--Construction  . . .
1,091,000

Los Angeles Valley College

(42) 40.26.801-Ventilation System --Construction  . . . 3,484,000


West Los Angeles College

(43) 40.26.903-Fine Arts Building-Equipment  . . . 966,000

(44) 40.26.905-Child Development Center--Preliminary plans  . . .
70,000

Los Rios Community College District

American River College

(45) 40.27.101-Child Development Center--Preliminary plans  . . .
148,000

Cosumnes River College

(46) 40.27.208-Child Development Center--Preliminary plans  . . .
135,000

Sacramento City College

(47) 40.27.306-Learning Resource Center--Equipment  . . .
3,189,000

Folsom Lake Center

(48) 40.27.500-On Site Development --Preliminary plans and
working  drawings  . . . 2,228,000

(49) 40.27.501-Instructional Facilities, Phase 1A--Preliminary plans
and  working drawings  . . .  1,193,000

Marin Community College District

Marin Community College

(50) 40.28.206-Child Development Center--Preliminary plans  . . .
135,000

Merced Community College District

Merced College

(51) 40.30.115-Child Development Center--Preliminary plans  . . .
111,000

Mira Costa Community College  District

Mira Costa College

(52) 40.31.104-Buildings G & H Conversion, Secondary
Effects-Equipment  . . . 308,000

(53) 40.31.107-Child Development Facility Expansion--Preliminary
plans  .  . . 56,000

Mt. San Antonio Community College District

Mt. San Antonio College

(54) 40.33.109-Learning Technology Center--Construction  . . .
11,918,000

Mt. San Jacinto Community College District

Mt. San Jacinto College

(55) 40.34.111-Child Development Center--Preliminary plans  . . .
110,000

(56) 40.34.113-Business & Technology, Secondary
Effects--Preliminary  plans and working  drawings  . . . 83,000

Menifee Valley Center

(57) 40.34.209-Child Development Center--Preliminary plans  . . .
138,000

Palo Verde Community College District

Palo Verde College

(58) 40.37.100-Phase I, Facilities --Preliminary plans and working
drawings  . . . 1,210,000

Palomar Community College District

Palomar College

(59) 40.38.110-Infrastructure Code Compliance for Health & Safety
--Construction   . . .  11,571,000

Pasadena Area Community College District

Pasadena City College

(60) 40.39.110-Library Secondary Effects--Equipment  . . .
1,073,000

(61) 40.39.111-Health & Safety Physical Education--Equipment  . . .
326,000

Redwoods Community College District

College of the Redwoods

(62) 40.42.104-Library & Media Services--Preliminary plans and
working  drawings  . . . 799,000

(63) 40.42.105-Child Development Center--Preliminary plans  . . .
119,000

Rio Hondo Community College District

Rio Hondo College

(64) 40.43.105-Science Building (Health & Safety)--Construction  . .

.  10,380,000

Riverside Community College District

Moreno Valley Center

(65) 40.44.206-Buildings, Phase II, Secondary Effects--Equipment  .
. .  865,000

Norco Center

(66) 40.44.306-Buildings, Phase II, Secondary Effects--Equipment  .
. .  822,000

Saddleback Community College District

Irvine Valley College

(67) 40.45.126-Fire/Safety Access Road--Preliminary plans and
working  drawings  . . . 155,000

(68) 40.45.127-Learning Resource Center, Secondary
Effects--Preliminary  plans and working  drawings  . . . 49,000

San Diego Community College District

San Diego City College

(69) 40.47.101-Learning Resource Center--Preliminary plans  . . .
632,000

San Francisco Community College District

San Francisco City College

(70) 40.48.104-Remodel Allied  Health--Construction  . . . 5,830,000


San Jose--Evergreen Community College District

Evergreen College

(71) 40.50.103-Biology/Nursing Addition--Preliminary plans and
working  drawings  . . . 658,000

San Luis Obispo County Community College  District

Cuesta College

(72) 40.51.108-Art/Music Laboratories Addition--Preliminary plans
and  working drawings  . . .  458,000

(73) 40.51.109--Learning Skills Center/Classroom
Building--Preliminary  plans and working  drawings  . . . 821,000


(74) 40.51.110-Child Development Center--Preliminary plans  . . .
78,000

San Mateo County Community College District

Skyline College

(75) 40.52.305-Learning Resources Center, Secondary
Effects--Construction and equipment  . . .  2,974,000

Santa Barbara Community College District

Santa Barbara City College

(76) 40.53.115-Business/Communications, Secondary
Effects--Equipment   . . . 378,000

(77) 40.53.118-Life Science/Geology Code
Corrections--Construction  . . .  2,610,000

Santa Clarita Community College District

College of the Canyons

(78) 40.54.103-Library--Equipment  . . . 139,000

(79) 40.54.109-Remodel Old Library and Labs, Secondary
Effects--Construction  . . . 4,636,000

Sequoias Community College District

College of the Sequoias

(80) 40.56.109-Music Building--Preliminary plans and working
drawings  .  . . 314,000

Sierra Joint Community College District

Sierra College

(81) 40.58.106--Student Services Center, Secondary
Effects--Preliminary  plans and working  drawings  . . . 599,000


Western Nevada County Center

(82) 40.58.205-Child Development Center--Preliminary plans  . . .
51,000

State Center Community College District

Fresno City College

(83) 40.64.105-Lab/Office Space Reconstruction, Secondary
Effects--Preliminary plans and  working drawings  . . . 180,000

Madera Center

(84) 40.64.300-Off-Site Development --Preliminary plans and
working  drawings  . . . 383,000

(85) 40.64.301-On-Site Development, Phase I Facilities--Preliminary
plans  and working drawings   . . . 1,278,000

Ventura County Community College District

Moorpark College

(86) 40.65.106-Math/Science Building--Equipment  . . . 1,046,000


(87) 40.65.107-Math/Science, Secondary Effects-Construction  . . .
962,000

Ventura College

(88) 40.65.303-Math & Science Complex, Secondary
Effects--Construction  . . . 936,000

Victor Valley Community College District

Victor Valley College

(89) 40.66.109-Child Development Center--Preliminary plans  . . .
56,000

(90) 40.66.114-Old Library Remodel, Secondary Effects--Equipment
. . .  621,000

West Valley-Mission Community College District

Mission College

(91)40.69.205--Learning Resource Center--Preliminary plans and
working  drawings  . . . 598,000

(92) 40.69.206--Child Development Center--Preliminary plans  . . .
60,000

Yosemite Community College District

Modesto Junior College

(93) 40.70.210-Sierra Hall Instructional Facility-Preliminary plans
and  working drawings  . . .  1,406,000

6880-001-0305--For support of Council for Private Postsecondary
and  Vocational Education,  payable from the Private Postsecondary
and Vocational Education  Administration Fund  . . .  4,707,000

Schedule:

(a) 10-Oversight and Approval  . . . 4,787,000

(b) 20.10-Administration  . . . 1,564,000

(c) 20.20-Administration--Distributed  . . . -1,564,000

(d) Reimbursements  . . . -80,000

Provisions:

1. Of the amount appropriated in Schedule (a), $775,000 shall only
be  available for expenditure  for cost of the Attorney General,
Office
of Administrative Hearings, and  operating expenses   directly
related
to administrative hearings pursuant to Sections 94913,  94932, and
94933 of the  Education Code.

2. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

6880-001-0890--For support of Council for Private Postsecondary
and  Vocational Education,  Program 10--Oversight and Approval,
payable from the Federal Trust Fund   . . . 1,000,000

Provisions:

1. Notwithstanding any other provision of law, the Federal Trust
Fund  Account of the Council for  Private Postsecondary and
Vocational Education may borrow from the  Private Postsecondary
and  Vocational Education Administration Fund an amount not to
exceed a  cumulative total of  $500,000 for the purpose of meeting
cash-flow needs for the purposes  funded by this item due to  delays
in collecting federal funds. Any loan made pursuant to this provision

shall be made only  upon approval of the Department of Finance, and
only if the council  demonstrates and certifies  that a sufficient
surplus exists in the Private Postsecondary and Vocational
Education  Administration Fund to support the amount of the loan,
and that funds will  be available from the  federal government to
repay the loan. All money transferred shall be repaid  to the fund as

soon as  possible, but not later than one year from the date of the
loan.

6880-001-0960--For support of Council for Private Postsecondary
and  Vocational Education,  Program 10--Oversight and Approval,
payable from the Student Tuition  Recovery Fund  . . .  310,000

Provisions:

1. The appropriation made by this item shall be in lieu of any
Student
Tuition Recovery Fund  allocation for administrative expenses made
pursuant to subdivision (b) of  Section 94982 of the  Education Code
during the 1996-97 fiscal year, and no funds shall be  allocated by
the
Controller  pursuant to subdivision (b) of Section 94343 of the
Education Code during  the 1996-97 fiscal  year.

7980-001-0001--For support of the Student Aid Commission  . . .
11,845,000

Schedule:

(a) 15-Financial Aid Grants Program  . . . 11,891,000

(b) 50-California Loan Program  . . . 150,000

(c) 80.01-Administration and Support Services  . . . 8,816,000

(d) 80.02-Distributed Administration and Support Services  . . .
-8,816,000

  (e) Reimbursements  . . . -196,000

Provisions:

1. Notwithstanding Education Code Section 69766, $4,965,000 of
the  amount appropriated shall  be transferred to the Guaranteed
Loan Reserve Fund.

7980-101-0001--For local assistance, Student Aid Commission  . . .
282,518,000

Schedule:

(a) 15-Financial Aid Grants Program  . . . 294,138,000

(b) Reimbursements  . . . -3,643,000

(c) Amount payable from the Federal Trust Fund (Item
7980-101-0890)  . .  . -7,977,000

Provisions:

1. Funds appropriated in Schedule (a) are for the purposes of all of
the  following:

(a) Awards in the Cal Grant Program under Article 3 (commencing
with  Section 69530) of  Chapter 2 of Part 42 of the Education Code.


(b) Graduate fellowship awards under Article 9 (commencing with
Section  69670) of Chapter 2  of Part 42 of the Education Code.

(c) Grants under Article 16 (commencing with Section 69900) of
Chapter 2  of Part 42 of the  Education Code, and for grants under
Section 4709 of the Labor Code.

(d) California Student Opportunity and Access Program contract
agreements under Article 4  (commencing with Section 69560) of
Chapter 2 of Part 42 of the  Education Code.

(e) The purchase of loan assumptions under Article 6.5 (commencing
with  Section 69612) of  Chapter 2 of Part 42 of the Education Code.


(f) Grants under the California State Work-Study Program, Article
18  (commencing with Section  69950) of Chapter 2 of Part 42 of the
Education Code.

(g) New and renewal Cal Grant awards in amounts not to exceed
award  levels comparable to  those in effect for the 1996-97 award
year except as otherwise provided by  law.

2. Notwithstanding any other provision of law, of the 19,026 new
grants  funded in Schedule (a)  for Cal Grant A for the 1997-98
fiscal
year, 500 grants shall be awarded to  community college  students
who transfer to a four-year college or university.

3. Notwithstanding any other provision of law, of the 15,578 new
grants  funded in Schedule (a)  for Cal Grant B for the 1997-98
fiscal
year, 250 grants shall be awarded to  community college  students
who transfer to a four-year college or university.



4. If federal trust funds for the 1997-98 fiscal year exceed budgeted

levels,  the funds appropriated  shall, to the extent allowable by
federal law, be reduced on a  dollar-for-dollar basis.

5. Eligibility for money appropriated by this item is limited to
students who  demonstrate financial  need according to nationally
accepted needs analysis methodologies, who  meet other Student Aid
Commission eligibility criteria, and whose income or family's gross
income  does not  exceed  $61,800 for the purposes of determining
recipients for the 1997-98 award  year.

6. Notwithstanding any other provision of law, of the amount
appropriated  by this item,  $10,000,000 shall be made available to
increase the award level of new Cal  Grant awards in the A  and B
programs for students attending private institutions.

7. Notwithstanding Provision 2 or 3 or any other provision of law, of

the  amount appropriated by  this item, $1,000,000 is available for
up
to 500 additional Cal Grants for  students who are  enrolled in or
are
planning to enroll in fields of study in preparation for  careers in
digital  animation. The commission shall determine the criteria for
distribution of  the awards, including  requirements for selection of

qualified applicants to receive awards. Funds  for grants shall be
made available based on receipt of an equal matching contribution
from  prospective employers in  the digital animation field.

7980-101-0890--For local assistance, Student Aid Commission, for
payment to Item  7980-101-0001, payable from the Federal Trust
Fund  . . . 7,977,000

7980-102-0001--For local assistance, Student Aid Commission
(Proposition 98), for the  California Student Opportunity and Access
Program (Cal-SOAP)  . . .  690,000

                              GENERAL GOVERNMENT

8100-001-0001--For support of Office of Criminal Justice Planning  .

. .  3,433,000

Schedule:



(a) 20.01-Administration  . . . 2,436,000

(b) 20.02-Distributed Administration  . . . -2,436,000

(c) 50-Criminal Justice Projects  . . . 10,810,000

(d) Reimbursements  . . . -460,000

(e) Amount payable from Local Public Prosecutors and Public
Defenders  Training Fund (Item  8100-001-0241)  . . . -67,000

(f) Amount payable from Victim-Witness Assistance Fund (Item
8100-001-0425)  . . . -1,477,000

(g) Amount payable from the Federal Trust Fund (Item
8100-001-0890)  . .  . -5,373,000

8100-001-0241--For support of Office of Criminal Justice Planning,
for  payment to Item  8100-001-0001, payable from the Local Public
Prosecutors and Public  Defenders Training Fund  .  . . 67,000

Provisions:

1. Notwithstanding any other provision of law restricting the costs
of  administering individual  programs, the full amount of this
appropriation may be used by the Office  of Criminal Justice
Planning for administrative costs.

8100-001-0425--For support of Office of Criminal Justice Planning,
for  payment to Item  8100-001-0001, payable from the
Victim-Witness Assistance Fund  . . .  1,477,000

8100-001-0890--For support of Office of Criminal Justice Planning,
for  payment to Item  8100-001-0001, payable from the Federal
Trust Fund  . . . 5,373,000

8100-101-0001--For local assistance, Office of Criminal Justice
Planning,  Program 50, Criminal  Justice Projects  . . . 32,715,000


Schedule:

(a) 50.20.102-Victims Legal Resources Center  . . . 173,000

(b) 50.20.103-Joint Venture  . . . 166,000

(c) 50.20.151-Domestic Violence Program  . . . 1,460,000

(d) 50.20.152-Family Violence Prevention  . . . 194,000

(e) 50.20.301-Rape Crisis Program  . . . 101,000

(f) 50.20.351-Homeless Youth Project  . . . 883,000

(g) 50.20.352-Youth Emergency Telephone Referral  . . . 253,000

(h) 50.20.353-Child Sexual Abuse and Exploitation Program  . . .
3,000

(i) 50.20.354-Child Sexual Abuse Prevention and Training  . . .
672,000

(j) 50.30.501-California Community Crime Resistance Program, to
be  allocated pursuant to  Chapter 5 (commencing with Section
13840) of Title 6 of Part 4 of the  Penal Code  . . . 923,000

(k) 50.30.511-California Career Criminal Apprehension Program  . . .
2,308,000

(l) 50.30.512-California Career Criminal Prosecution Program, to be
allocated pursuant to  Chapter 2.3 (commencing with Section 999b)
of Title 6 of Part 2 of the  Penal Code  . . .  3,987,000

(m) 50.30.513-Major Narcotic Vendors Prosecution Program  . . .
2,641,000

(n) 50.30.514-Serious Habitual Offender  . . . 547,000

(o) 50.30.515-Vertical Prosecution of Statutory Rape  . . . 8,361,000



(p) 50.30.521-Child Sexual Assault Prosecution Program  . . .
1,304,000

(q) 50.30.522-Evidentiary Medical Training  . . . 1,364,000

(r) 50.30.531-Vertical Defense  . . . 692,000

(s) 50.30.541-Public Prosecutors and Public Defenders  . . . 29,000



(t) 50.30.651-Suppression of Drug Abuse in Schools Program  . . .
3,274,000

(u) 50.30.661-California Gang Violence Suppression Program  . . .
5,131,000

(v) 50.30.700-Special Projects: Public Safety  . . . 641,000

(w) Reimbursements  . . . -2,392,000

Provisions:

1. Notwithstanding any other provisions of law, the Office of
Criminal  Justice Planning may  provide advance payment of up to 25
percent of grant funds awarded to  community-based,  nonprofit
organizations, cities, school districts, counties, and other units of

local government that  have demonstrated cash-flow problems
according to the criteria set forth  by the office.

2. To maximize the use of program funds and demonstrate the
commitment  of the grantees to  program objectives, the Office of
Criminal Justice Planning shall require all  grantees for funds  from

the Gang Violence Suppression-Curfew Enforcement Strategy
program to provide local  matching funds, of at least 10 percent, for

the first year and each  subsequent year of operation.  This match
requirement applies to each agency that is to receive grant  funds.
An
agency may meet  its match requirements with an in-kind match, if
approved by the Office of  Criminal Justice  Planning.

8100-101-0241--For local assistance, Office of Criminal Justice
Planning,  Program 50, Criminal  Justice Projects, payable from the
Local Public Prosecutors and Public  Defenders Training Fund  .  . .

1,027,000

Provisions:

1. Notwithstanding any other provisions of law, the Office of
Criminal  Justice Planning may  provide advance payment of up to 25
percent of grant funds awarded to  community-based,  nonprofit
organizations, cities, school districts, counties, and other units of

local government that  have demonstrated cash-flow problems
according to the criteria set forth  by the office.

8100-101-0425--For local assistance, Office of Criminal Justice
Planning,  Program 50, Criminal  Justice Projects, payable from the
Victim-Witness Assistance Fund  . . .  15,519,000

Schedule:

(a) 50.20.101-Victim-Witness Assistance Program  . . . 10,871,000


(b) 50.20.301-Rape Crisis Program  . . . 3,670,000

(c) 50.20.353-Child Sexual Abuse and Exploitation Program  . . .
978,000

Provisions:

1. Notwithstanding any other provisions of law, the Office of
Criminal  Justice Planning may  provide advance payment of up to 25
percent of grant funds awarded to  community-based,  nonprofit
organizations, cities, school districts, counties, and other units of

local government that  have demonstrated cash-flow problems
according to the criteria set forth  by the office.

8100-101-0890--For local assistance, Office of Criminal Justice
Planning,  Program 50, Criminal  Justice Projects, payable from the
Federal Trust Fund  . . . 95,619,000

Schedule:

(a) 50.20.151-Domestic Violence Program  . . . 2,492,000

(b) 50.20.161-Violence Against Women Act  . . . 9,636,000

(c) 50.20.302-Rape Prevention  . . . 4,062,000

(d) 50.20.451-Victims of Crime Act (VOCA)  . . . 13,361,000

(e) 50.30.525-Child Justice Act  . . . 1,045,000

(f) 50.30.551-Anti-Drug Abuse Program  . . . 47,467,000

(g) 50.30.552-Marijuana Suppression Program  . . . 2,668,000

(h) 50.30.555-Residential Substance Abuse Treatment  . . .
4,205,000

(i) 50.30.661-Gang Violence Suppression  . . . 1,005,000

(j) 50.30.701-Juvenile Justice and Delinquency Prevention  . . .
6,310,000

(k) 50.30.703-Community Delinquency Prevention Program  . . .
2,254,000

  (l) 50.30.706-Juvenile Justice-Project Challenge  . . . 1,114,000


Provisions:

1. Notwithstanding any other provision of law, the Office of
Criminal  Justice Planning may  provide advance payment of up to 25
percent of grant funds awarded to  community-based,  nonprofit
organizations, cities, school districts, counties, and other units of

local government that  have demonstrated cash-flow problems
according to the criteria set forth  by the office.

8120-001-0268--For support of Commission on Peace Officer
Standards  and Training, payable  from the Peace Officers' Training
Fund  . . . 10,198,000

Schedule:

(a) 10-Standards  . . . 3,735,000

(b) 20-Training  . . . 15,231,000

(c) 30-Peace Officer Training   . . . 88,000

(d) 40.01-Administration  . . . 3,852,000

(e) 40.02-Distributed Administration  . . . -3,852,000

(f) Amount payable from the Peace Officers' Training Fund (Item
8120-011-0268)  . . .  -7,300,000

(g) Amount payable from the Peace Officers Training Fund (Item
8120-012-0268)  . . .  -1,556,000

8120-011-0268--For support of Commission on Peace Officer
Standards  and Training, for  payment to Item 8120-001-0268,
payable from the Peace Officers' Training  Fund  . . . 7,300,000


Provisions:

1. Funds appropriated by this item are to be used for contractual
services  in support of local  training programs, pursuant to Section

13503(c) of the Penal Code.



2. Funds may be transferred between this item and Item
8120-101-0268 to  meet the needs of local  training programs.

8120-012-0268--For support of Commission on Peace Officer
Standards  and Training, for  payment to Item 8120-001-0268  . . .
1,556,000

Provisions:

1. The funds appropriated by this item are to be used for the
implementation of "Tools for  Tolerance" training program for law
enforcement personnel operated by  the Simon Wiesenthal
Center-Museum of Tolerance. The Commission on Peace Officer
Standards and Training shall  limit eligibility for reimbursement for

this program to those individuals who  have completed  cultural
tolerance and sensitivity coursework certified by the commission as
part of the Basic  Officer's Course Certificate.

8120-101-0268--For local assistance, Commission on Peace Officer
Standards and Training,  Program 30, for allocation to cities,
counties, and cities and counties  pursuant to Section 13523  of the
Penal Code, payable from the Peace Officers' Training Fund  . . .
21,937,000

Provisions:

1. Funds may be transferred between this item and Item
8120-011-0268 to  meet the needs of  local training programs.

2. The Director of Finance may authorize the augmentation of the
total  amount available for  expenditure under this item in the
amount
of revenue received by the Peace  Officers' Training  Fund that is in

addition to the revenue appropriated by this item, not sooner  than
30
days after  notification in writing to the chairpersons of the
respective
fiscal  committees and the Chairperson  of the Joint Legislative
Budget Committee.

8120-102-0268--For local assistance, Commission on Peace Officer
Standards and Training,  Program 30  . . . 444,000

Provisions:

1. Funds appropriated by this item are to be used for the
implementation of  the "Tools for  Tolerance" training program for
law enforcement personnel operated by  the Simon Wiesenthal
Center-Museum of Tolerance. The Commission on Peace Officer
Standards and Training shall  limit eligibility for reimbursement for

this program to those individuals that  have already  completed
cultural tolerance and sensitivity coursework certified by the
commission as part of the  Basic Officer's Course Certificate.

8140-001-0001--For support of State Public Defender  . . .
8,576,000

Schedule:

(a) 10-State Public Defender  . . . 8,600,000

(b) Reimbursements  . . . -24,000

Provisions:

1. Any federal funds received by the Office of the State Public
Defender as  reimbursements for  legal services provided for capital
cases shall revert to the unappropriated  surplus of the General
                              Fund.

8180-101-0001--For local assistance, Payment to Counties for Costs
of  Homicide Trials, for  payment by the State Controller  . . .
7,000,000

Provisions:

1. This item is for payment to counties for costs of homicide trials
pursuant  to Sections 15201 to  15203, inclusive, of the Government
Code, provided that expenditures  made under this item shall  be
charged to the fiscal year in which the warrant is issued by the
Controller.

2. The Controller shall reimburse counties for reasonable and
necessary  expenses incurred  pursuant to Section 15202 of the
Government Code except that  reimbursements to a county shall  not
exceed: (a) for attorney services, an hourly rate equal to that
county's
average hourly cost for  public defenders, the hourly rate paid to
appointed counsel, or the hourly  rate charged state  agencies by the

Attorney General for attorney services, whichever rate is  less; (b)
for
investigators, an hourly rate equal to that county's average hourly
cost for  county-employed  investigators or the hourly rate charged
state agencies by the Attorney  General for investigators,  whichever

rate is less; and (c) for expert witnesses, the hourly rate that the
county generally pays  for these services.

3. Notwithstanding any other provision of law, funds appropriated by
this  item shall be available  for reimbursement for one hundred
percent of any extraordinary costs  incurred by the County of
Sonoma in the homicide trial of People v. Davis and by the County of
Siskiyou in the homicide  trial of People v. Bowcutt.

8260-001-0001--For support of California Arts Council  . . .
1,955,000

Schedule:

(a) 10-Artists in Residence  . . . 797,000

(b) 20-Organizational Grants  . . . 1,062,000

(c) 25-Performing Arts Touring/Presenting Program  . . . 312,000

(d) 40-Statewide Projects  . . . 487,000

(e) 45-California Challenge Program  . . . 63,000

(f) 50.01-Administration  . . . 976,000

(g) 50.02-Distributed Administration  . . . -915,000

(h) Amount payable from the Graphic Design License Plate Account
(Item  8260-001-0078)  . . .  -210,000

(i) Amount payable from the Federal Trust Fund (Item
8260-001-0890)  . .  . -617,000

8260-001-0078--For support of California Arts Council, for payment
to  Item 8260-001-0001,  payable from the Graphic Design License
Plate Account  . . . 210,000

8260-001-0890--For support of California Arts Council, for payment
to  Item 8260-001-0001,  payable from the Federal Trust Fund  . . .
617,000

8260-101-0001--For local assistance, California Arts Council, for
grants  and subventions  . . .  9,731,000

Schedule:

(a) 10-Artists in Residence  . . . 2,003,000

(b) 20-Organizational Grants  . . . 6,010,000

(c) 25-Performing Arts Touring/Presenting Program  . . . 492,000


(d) 40-Statewide Projects  . . . 1,661,000

(e) Amount payable from the Graphic Design License Plate Account
(Item  8260-101-0078)  . . .  -435,000

Provisions:

1. Funds appropriated for the Small- and Mid-size Organizations
element  and the Large Budget  Organizations element of the
Organizational Grants program shall not be  expended unless the
grant recipient provides at least a dollar-for-dollar cash match. No
matching funds shall be  required for grants to individual artists.


8260-101-0078--For local assistance, California Arts Council, for
payment  to Item  8260-101-0001, payable from the Graphic Design
License Plate Account  .  . . 435,000

8260-101-0890--For local assistance, California Arts Council,
payable from  the Federal Trust  Fund  . . . 170,000

Schedule:

(a) 10-Artists in Residence  . . . 74,000

(b) 25-Performing Arts Touring/Presenting Program  . . . 12,000

(c) 40-Statewide Projects  . . . 84,000

Provisions:

1. Any organization applying for a grant under the Large Budget
Organizations element of the  Organizational Grants program may
not receive a grant under the Small-  and Mid-size  Organizations
element of the Organizational Grants program.

2. Any organization applying for a grant under the Small- and
Mid-size  Organizations element of  the Organizational Grants
program may not receive a grant under the Large  Budget
Organizations  element of the Organizational Grants program.

3. Funds appropriated for the Small- and Mid-size Organizations
element  and the Large Budget  Organizations element of the
Organizational Grants program shall not be  expended unless the
grant recipient provides at least a dollar-for-dollar cash match. No
matching funds shall be  required for grants to individual artists.


8260-111-0001--For local assistance, California Arts Council  . . .
759,000

Provisions:

1. Funds appropriated for the California Challenge Program shall not

be  expended unless the  grant recipient provides matching funds
through new and increased private  contri-butions based  on criteria
established by the California Arts Council specifically for this
program.

8280-001-0001--For support of Native American Heritage
Commission,  Program 10  . . . 310,000

  8300-001-0001--For support of Agricultural Labor Relations Board
. . .  4,557,000

Schedule:

(a) 10-Board Administration  . . . 2,136,000

(b) 20-General Counsel Administration  . . . 2,421,000

(c) 30.01-Administrative Services  . . . 234,000

(d) 30.02-Distributed Administrative Services  . . . -234,000

8320-001-0001--For support of Public Employment Relations Board
. . .  4,292,000

Schedule:

(a) 11-Public Employment Relations  . . . 4,299,000

(b) Reimbursements  . . . -7,000

8350-001-0001--For support of Department of Industrial Relations  .
. .  120,201,000

Schedule:

(1) 10-Regulation of Workers' Compensation Self-Insurance Plans  .
. .  2,920,000

(2) 20-Conciliation of Employer-Employee Disputes  . . . 1,816,000


(3) 30-Workers' Compensation Administration  . . . 91,298,000

(4) 35-Industrial Medical Council  . . . 3,803,000

(5) 36-Commission on Health and Safety and Worker's
Compensation  . . .  721,000

(6) 40-Prevention of Industrial Injuries and Deaths of California
Workers  .  . . 58,821,000

(7) 50-Enforcement and Promulgation of Laws Relating to Wages,
Hours,  and Conditions of  Employment, and Licensing and
Adjudication  . . . 26,315,000

(8) 60-Promotion, Development, and Administration of
Apprenticeship and  Other On-the-Job  Training  . . . 3,947,000

(9) 70-Labor Force Research and Data Dissemination  . . . 4,356,000


(10) 80-Payment of Claims, Wages, and Contingencies  . . .
23,632,000

(11) 94.01-Administration  . . . 16,671,000

(12) 94.02-Distributed Administration  . . . -16,671,000

(13) Reimbursements  . . . -6,264,000

(14) Amount payable from the Farm Labor Contractor's Special
Account  (Item 8350-001-0023)  .  . . -27,000

(15) Amount payable from the Industrial Medicine Fund (Item
8350-001-0079)  . . . -1,707,000

(16) Amount payable from the Cal-OSHA Targeted Inspection and
Consultation Fund (Item  8350-001-0096)  . . . -6,164,000

(17) Amount payable from Workers' Compensation Managed Care
Fund  (Item 8350-001-0132)  .  . . -395,000

(18) Amount payable from the Industrial Relations Construction
Industry  Enforcement Fund  (Item 8350-001-0216)  . . . -50,000

(19) Amount payable from the Workplace Health and Safety
Revolving  Fund (Item  8350-001-0222)  . . . -721,000

(20) Amount payable from Workers' Compensation Administration
Revolving Fund (Item  8350-001-0223)  . . . -17,629,000

(21) Amount payable from the Loss Control Certification Fund (Item
8350-001-0284)  . . .  -739,000

(22) Amount payable from Asbestos Consultant Certification
Account  (Item 8350-001-0368)  . . .  -326,000

(23) Amount payable from Asbestos Training Approval Account
(Item  8350-001-0369)  . . .  -237,000

(24) Amount payable from the Self-Insurance Plans Fund (Item
8350-001-0396)  . . . -2,866,000

(25) Amount payable from the Elevator Safety Inspection Account,
General Fund (Item  8350-001-0452)  . . . -5,970,000

(26) Amount payable from the Pressure Vessel Inspection Account,
General Fund (Item  8350-001-0453)  . . . -3,230,000

(27) Amount payable from the Garment Manufacturer's Special
Account  (Item 8350-001-0481)  .  . . -50,000

(28) Amount payable from Employment Training Fund (Item
8350-001-0514)  . . . -2,802,000

(29) Amount payable from the Uninsured Employer's Account,
Uninsured  Employer's Fund (Item  8350-001-0571)  . . .
-23,529,000

(30) Amount payable from the Federal Trust Fund (Item
8350-001-0890)  .  . . -22,786,000

(31) Amount payable from the Industrial Relations Unpaid Wage
Fund  (Item 8350-001-0913)  . .  . -946,000

(32) Amount payable from the Workers' Compensation
Administration  Revolving Fund (Item  8350-015-0223)  . . .
-490,000

(33) Amount payable from the Industrial Relations Unpaid Wage
Fund  (Labor Code Section 96.6)   . . . -500,000

8350-001-0023--For support of Department of Industrial Relations,
for  payment to Item  8350-001-0001, payable from the Farm Labor
Contractor's Special  Account  . . . 27,000

8350-001-0079--For support of Department of Industrial Relations,
for  payment to Item  8350-001-0001, payable from the Industrial
Medicine Fund  . . . 1,707,000

8350-001-0096--For support of Department of Industrial Relations,
for  payment to Item  8350-001-0001, payable from the Cal-OSHA
Targeted Inspection and  Consultation Fund  . . .  6,164,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

8350-001-0132--For support of Department of Industrial Relations,
for  payment to Item  8350-001-0001, payable from the Workers'
Compensation Managed Care  Fund  . . . 395,000

Provisions:

1. It is the intent of the Legislature that the regulation of workers'

compensation health care  organizations pursuant to Sections 4600.3
and 4600.5 of the Labor Code  be fully supported by  fees assessed
on certified health care organizations and applicants for
certification.


2. Notwithstanding the provisions of 1994 Budget Act Item
8350-021-001,  the General Fund loan  to the Division of Workers'
Compensation in the amount of $1,699,000 for  initial startup of the
Workers' Compensation Managed Care Program shall be repaid, plus
interest, to the General  Fund no later than June 30, 1998.

8350-001-0216--For support of Department of Industrial Relations,
for  payment to Item  8350-001-0001, payable from the Industrial
Relations Construction  Industry Enforcement Fund  .  . . 50,000


8350-001-0222--For support of Department of Industrial Relations,
for  payment to Item  8350-001-0001, payable from the Workplace
Health and Safety Revolving  Fund  . . . 721,000

Provisions:

1. Funds appropriated by this item are for the purpose of supporting
the  activities of the  Commission on Health and Safety and Workers'
Compensation within the  Department of  Industrial Relations as
established by Chapter 227 of the Statutes of 1993.

8350-001-0223--For support of Department of Industrial Relations,
for  Workers' Compensation  Administration, for payment to Item
8350-001-0001, payable from the  Workers' Compensation
Administration Revolving Fund  . . . 17,629,000

8350-001-0284--For support of Department of Industrial Relations,
for  payment to Item  8350-001-0001, payable from the Loss Control
Certification Fund  . . .  739,000

8350-001-0368--For support of Department of Industrial Relations,
for  payment to Item  8350-001-0001, payable from the Asbestos
Consultant Certification  Account  . . . 326,000

8350-001-0369--For support of Department of Industrial Relations,
for  payment to Item  8350-001-0001, payable from the Asbestos
Training Approval Account  . .  . 237,000

8350-001-0396--For support of Department of Industrial Relations,
for  payment to Item  8350-001-0001, payable from the
Self-Insurance Plans Fund  . . .  2,866,000

8350-001-0452--For support of Department of Industrial Relations,
for  payment to Item  8350-001-0001, payable from the Elevator
Safety Inspection Account,  General Fund  . . .  5,970,000

8350-001-0453--For support of Department of Industrial Relations,
for  payment to Item  8350-001-0001, payable from the Pressure
Vessel Inspection Account,  General Fund  . . .  3,230,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

8350-001-0481--For support of Department of Industrial Relations,
for  payment to Item  8350-001-0001, payable from the Garment
Manufacturer's Special  Account  . . . 50,000

8350-001-0514--For support of Department of Industrial Relations,
for  payment to Item  8350-001-0001, payable from the Employment
Training Fund  . . .  2,802,000

Provisions:

1. Notwithstanding Section 1611 of, and Chapter 3.5 (commencing
with  Section 10200) of Part  1 of Division 3 of, the Unemployment
Insurance Code, $2,802,000 from  the interest earned from  money in
the Employment Training Fund shall  be transferred by the State
Controller to the  Department of Industrial Relations for the support

of the Division of  Apprenticeship Standards.

8350-001-0571--For support of Department of Industrial Relations,
for  payment to Item  8350-001-0001, payable from the Uninsured
Employer's Account,  Uninsured Employer's Fund  . .  . 23,529,000


8350-001-0890--For support of Department of Industrial Relations,
for  payment to Item  8350-001-0001, payable from the Federal
Trust Fund  . . . 22,786,000

8350-001-0913--For support of Department of Industrial Relations,
for  payment to Item  8350-001-0001, payable from the Industrial
Relations Unpaid Wage Fund   . . . 946,000

Provisions:

1. Notwithstanding any other provision of law, funds appropriated by
this  item shall be expended  by the Department of Industrial
Relations Division of Labor Standards  Enforcement to administer
the Targeted Industries Partnership Program to increase enforcement
and  compliance in the  agricultural and garment industries.

2. It is the intent of the Legislature that the Targeted Industries
Partnership  Program result in  increased enforcement of, and
compliance by, the agricultural and garment  industries regarding
wages, hours, conditions of employment, licensing, registration, and
child  labor laws and  regulations.

8350-011-0001--For support of Department of Industrial Relations,
for  transfer to the Uninsured  Employer's Account   . . . 18,603,000



8350-015-0223--For support of Department of Industrial Relations,
Industrial Medical Council  for payment to Item 8350-001-0001,
payable from the Workers'  Compensation Administration  Revolving
Fund  . . . 490,000

8350-295-0001--For local assistance, Department of Industrial
Relations,  for reimbursement, in  accordance with the provisions of
Section 6 of Article XIII B of the  California Constitution or of
Section 17561 of the Government Code, of the costs of any new
program  or increased level of  service of an existing program
mandated by statute or executive order,  State Controller  . . .
1,257,000

Schedule:

(1) 98.01.117.189-Peace Officer's Cancer Presumption (Ch. 1171,
Stats.  1989)  . . . 603,000

(2) 98.01.156.882-Firefighter's Cancer Presumption (Ch. 1568, Stats.
1982)  . . . 654,000

(3) 98.01.999.001-Personal alarm devices (8 Cal. Code Regs. Sec.
3401(c))  . . . 0

(4) 98.01.999.002-Structural and wildland firefighter safety clothing

and  equipment (8 Cal. Code  Regs. Secs. 3401 to 3410, incl.)   . . .
0


Provisions:

1. Allocations of funds appropriated by this item to the appropriate
local  entities shall be made by  the Controller in accordance with
the
provisions of each statute or  executive order that mandates  the
reimbursement of the costs, and shall be audited to verify the actual

amount of the mandated  costs in accordance with subdivision (d) of
Section 17561 of the  Government Code. Audit  adjustments to prior
year claims may be paid from this item. Funds  appropriated by this
item may  be used to provide reimbursement pursuant to Article 5
(commencing with  Section 17615) of  Chapter 4 of Part 7 of
Division 4 of Title 2 of the Government Code.

2. If any of the scheduled amounts are insufficient to provide full
reimbursement of costs, the  State Controller may, upon notifying the

Director of Finance in writing,  augment those deficient  amounts
from the unencumbered balance of any other scheduled amounts
therein. No order may  be issued pursuant to this provision unless
written notification of the  necessity therefor is provided  to the
chairperson of the committee in each house that considers
appropriations and the  Chairperson of the Joint Legislative Budget
Committee or his or her  designee.

3. Pursuant to Section 17581 of the Government Code, mandates
identified  in the appropriation  schedule of this item with an
appropriation of $0 and included in the  language of this provision
are  specifically identified by the Legislature for suspension during

the 1997-98  fiscal year:

(a) Personal alarm devices (8 Cal. Code Regs. Sec. 3401(c))

(b) Structural and wildland firefighter safety clothing and equipment

(8 Cal.  Code Regs. Secs.  3401 to 3410, incl.)

8380-001-0001--For support of Department of Personnel
Administration  .  . . 6,035,000

Schedule:

(a) 20-Labor Relations  . . . 1,518,000

(b) 25-Legal  . . . 4,386,000

(c) 40.01-Administration  . . . 4,686,000

(d) 40.02-Distributed Administration  . . . -3,701,000

(e) 52-Classification and Compensation  . . . 3,262,000

(f) 54-Benefits Administration  . . . 9,627,000

(g) 56-Training and Development  . . . 9,253,000

(h) 58-Merit Award  . . . 341,000

(i) Reimbursements  . . . -16,393,000

(j) Amount payable from the Flexelect Benefit Fund (Item
8380-001-0821)   . . . -790,000

(k) Amount payable from the Deferred Compensation Plan Fund
(Item  8380-001-0915)  . . .  -6,154,000

8380-001-0821--For support of Department of Personnel
Administration,  for payment to Item  8380-001-0001, payable from
the Flexelect Benefit Fund  . . . 790,000

8380-001-0915--For support of Department of Personnel
Administration,  for payment to Item  8380-001-0001, payable from
the Deferred Compensation Plan Fund  . . .  6,154,000

8380-495--Reversion, Department of Personnel Administration. As
of June  30, 1997, the  unencumbered balance of the appropriation
provided in the following  citation shall revert to the  fund balance
of
the fund from which the appropriation was made.

0853--Petroleum Violation Escrow Account

(1) Chapter 980, Statutes of 1995

8385-001-0001--For support of California Citizens' Compensation
Commission, Program 10  . . .  25,000

8450-001-0001--For support of Workers' Compensation Benefit
Program,  for payment of the  additional compensation for
subsequent injuries provided for by Article 5  (commencing with
Section 4750) of Chapter 2 of Part 2 of Division 4 of the Labor Code
. . .  5,507,000

Schedule:

(a) Payment of Claims  . . . 7,570,000

(b) Support, State Compensation Insurance Fund  . . . 379,000

(c) Prelitigation Expenses  . . . 170,000

(d) Support, Department of Industrial Relations  . . . 688,000

(e) Amount payable from Subsequent Injuries Moneys Account,
General  Fund (Item  8450-001-0016)  . . . -3,300,000

Provisions:

1. This item shall not be construed as a limitation on funds
appropriated by  Item 8450-001-0016.

2. The funds appropriated by this item shall not be available for
expenditure  at any time that funds  appropriated by Item
8450-001-0016 are available for expenditure.



3. At the end of the 1997-98 fiscal year, any expenditures made from
the  General Fund against  this item shall be reduced by any amounts
remaining available from the  funds appropriated by Item
8450-001-0016.

8450-001-0016--For payment of workers' compensation benefits for
subsequent injuries, for  payment to Item 8450-001-0001, payable
from the Subsequent Injuries  Fund, General Fund  . . .  3,300,000


Provisions:

1. The Director of Finance may authorize the augmentation of the
total  amount available for  expenditure under this item in the
amount
of revenue received by the  Subsequent Injuries Fund  that is in
addition to the amount appropriated by this item, not sooner than  30

days after  notification in writing to the chairpersons of the
respective
fiscal  committees and the Chairperson  of the Joint Legislative
Budget Committee. The director may authorize  these augmentations
only  up to the amount required for payment of the additional
compensation for  subsequent injuries  provided by Article 5
(commencing with Section 4750) of Chapter 2 of  Part 2 of Division
4 of the  Labor Code.

8460-101-0001--For local assistance, Workers' Compensation
Benefits for  Disaster Service  Workers  . . . 663,000

Provisions:

1. Funds appropriated by the item are for furnishing workers'
compensation to disaster service  workers and their dependents, in
accordance with Division 4 (commencing  with Section 3200) of  the
Labor Code, including the reimbursing of the State Compensation
Insurance Fund for the cost  of services as adjusting agent,
Governor's office, Office of Emergency  Services. The State
Compensation Insurance Fund may draw from the State Treasury any
funds appropriated by this  item, without at the time presenting
vouchers and itemized statements, to  be used as a cash  revolving
fund. Expenditures made from the revolving fund in payment of
claims for workers'  compensation and adjusting services are
exempted from Section 925.6 of  the Government Code.
Reimbursement of the revolving fund for those expenditures shall be
made  upon presentation to  the State Controller of an abstract or
statement of the expenditures. The  abstract or statement  shall be
in
such form as the State Controller requires.

8500-001-0152--For support of Board of Chiropractic Examiners,
payable  from the State Board  of Chiropractic Examiners Fund  . . .

1,799,000

Schedule:

(a) 10-Board of Chiropractic Examiners  . . . 1,829,000

(b) Reimbursements  . . . -30,000

8510-001-0264--For support of Osteopathic Medical Board of
California  payable from the  Osteopathic Contingent Fund  . . .
849,000

Schedule:

(a) 10-Osteopathic Medical Board of California  . . . 865,000

(b) Reimbursements  . . . -16,000

8530-001-0290--For support of Board of Pilot Commissioners for
the Bays  of San Francisco, San  Pablo and Suisun, payable from the
Board of Pilot Commissioners' Special  Fund  . . . 1,350,000

Schedule:

(a) 10.01 Support  . . . 569,000

(b) 10.02 Training  . . . 781,000

8550-001-0191--For support of California Horse Racing Board,
payable  from the Fair and  Exposition  Fund  . . . 6,109,000

Schedule:

(a) 10-California Horse Racing Board  . . . 7,872,000

(b) Amount payable from Satellite Wagering Account (Item
8550-001-0192)  . . . -1,500,000

(c) Amount payable from the Racetrack Security Account, Special
Deposit  Fund (Item  8550-001-0942)  . . . -263,000

8550-001-0192--For support of the California Horse Racing Board,
for  payment to Item  8550-001-0191, payable from the Satellite
Wagering Account, Fair and  Exposition Fund  . . .  1,500,000

Provisions:

1. Notwithstanding any other provision of law, funds appropriated by
this  item are to be expended  for drug testing of horses.

8550-001-0942--For support of the California Horse Racing Board,
for  payment to Item  8550-001-0191, payable from the Racetrack
Security Account, Special  Deposit Fund  . . .  263,000

8550-011-0942--Notwithstanding paragraph (1) of subdivision (b) of
Section 19641 of the  Business and Professions Code, there is hereby
transferred to the General  Fund the unencumbered  balance of the
Racetrack Security Account, Special Deposit Fund, as of  June 30,
1998  . . .  (2,000,000)

8560-001-0510--For support of California Exposition and State Fair,
provided that the  expenditures from the appropriation made by this
item shall not exceed  those operating revenues  deposited in the
California Exposition and State Fair Enterprise Fund by  the
California Exposition  and State Fair  . . . 16,734,000

Schedule:

(a) 100000-Personal Services  . . . 9,104,000

(b) 300000-Operating Expenses and Equipment  . . . 8,695,000

(c) Reimbursements  . . . -1,065,000

Provisions:



1. The Director of Finance may authorize augmentations of up to a
total of  10 percent of the  amount available for expenditure from
the
California Exposition and State  Fair Enterprise Fund in  this item
if
the California Exposition and State Fair has certified in writing
that
there is sufficient  money in the reserve of the California
Exposition
and State Fair Enterprise  Fund to cover the  augmentation.

2. It is the intent of the Legislature that the funds made available
from the  appropriation made in  this item may be expended for
promotional and public relations purposes of  the California
Exposition and State Fair pursuant to subdivision (a) of Section 4403

of  the Food and  Agricultural Code.

3. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

8560-301-0510--For capital outlay, California Exposition and State
Fair,  payable from the  California Exposition and State Fair
Enterprise Fund  . . . 500,000

Schedule:

(1) 50.01.001-Unanticipated Capital Outlay Projects--Preliminary
Plans,  Working Drawings and  Construction  . . . 500,000

Provisions:

1. It is the intent of the Legislature to provide Cal-Expo sufficient

opportunity to respond to  available attractions and facility needs
identified by fair goers prior to the  succeeding fair. In order  to
accomplish this intent the funds appropriated in Schedule (1) of this

item  are to be expended  only on projects which: (1) may be
completed prior to the following fair  opening date, (2)  projects
must address health safety or other conditions which would impact
visitor attendance and  (3) projects where no other viable temporary
solution is available. Funds  appropriated in Schedule  (1) of this
item
are subject to Department of Finance approval prior to  expenditures.

Projects may  not be authorized sooner than 15 days after
notification in writing of the  necessity  therefor to the
Chairperson
of the Joint Legislative Budget Committee.

2. Of the funds appropriated in Schedule (1) of this item, an amount
not to  exceed $50,000, which  is directly attributable to in-house
labor for this project, may be transferred  to category  (a) of  Item

8560-001-0510, with the approval of the Department of Finance.

8570-001-0001--For support of Department of Food and Agriculture
. . .  49,690,000

Schedule:

(a) 11-Agricultural Plant and Animal, Pest and Disease Prevention  .
.
.  57,219,000

(b) 21-Marketing, Commodities, and Agricultural Services  . . .
18,050,000

(c) 31-Assistance to Fairs and County Agricultural Activities  . . .
2,772,000

(d) 41.01-Executive, Management, and Administrative Services  . . .
9,140,000

(e) 41.02-Distributed Executive, Management, and Administrative
Services   . . . -8,780,000

(f) Reimbursements  . . . -8,895,000

(g) Amount payable from the Agriculture Fund (Item
8570-001-0111)  . . .  -11,032,000

(h) Amount payable from the Fair and Exposition Fund (Item
8570-001-0191)  . . . -1,722,000

(i) Amount payable from the Harbors and Watercraft Revolving Fund
(Item  8570-001-0516)  . . .  -939,000

(j) Amount payable from the Agriculture Building Fund (Item
8570-001-0601)  . . . -1,361,000

(k) Amount payable from the Federal Trust Fund (Item
8570-001-0890)  . .  . -4,426,000

(l) Amount payable from the Agricultural Pest Control Research
Account  (Item 8570-011-0112)   . . . -13,000

(m) Amount payable from the Satellite Wagering Account (Item
8570-012-0192)  . . . -323,000

Provisions:

1. Funds appropriated to Schedule (a) from Item 8570-001-0111 are
in  lieu of the appropriation  provided by subdivision (b) of Section

224 of the Food and Agricultural  Code for emergency  detection,
eradication, or research of agricultural plant or animal pests or
diseases. In addition,  notwithstanding any other provision of law,
up
to an additional $800,000  of the funds  appropriated pursuant to
subdivision (c) of Section 224 of the Food and  Agricultural Code
shall  be available for use by the Department of Food and Agriculture

for  emergency projects to  augment Schedule (a) of this item. The
Secretary of Food and Agriculture  may expend the funds  identified
in this provision with the approval of the Director of Finance.  The
funds that are so  ap-propriated are not subject to Section 26.00,
27.00, 28.00, or 28.50 of  this act.

2. Funds appropriated from Item 8570-001-0111 are in lieu of the
appropriation provided by  subdivision (a) of Section 224 of the
Food and Agricultural Code. In  addition, notwithstanding  any other
provision of law, of the funds appropriated pursuant to  subdivision
(c) of Section 224 of  the Food and Agricultural Code, $650,000
shall be available for use by the  Department of Food  and
Agriculture for departmental overhead expenses.

3. Notwithstanding any other provision of law, of the funds
appropriated  pursuant to Business  and Professions Code Section
19630, $283,000 shall be available for use by  the Department of
Food and Agriculture to develop and administer an operational and
policy  framework for the  network of California fairs. The Secretary

of Food and Agriculture may  augment Schedule (c) of  this item
with the approval of the Director of Finance. The funds that are  so
appropriated are not  subject to Section 26.00, 27.00, 28.00, or
28.50 of this act.

4. Notwithstanding any other provision of law, of the funds
appropriated  pursuant to subdivision  (c) of Section 224 of the Food

and Agricultural Code, $208,000 shall be  available for use by the
Department of Food and Agriculture to establish a County/State
Liaison  Director. The Secretary  of Food and Agriculture may
augment Schedule (c) of this item with the  approval of the Director
of Finance. The funds that are so appropriated are not subject to
Section  26.00, 27.00, 28.00, or  28.50 of this act.

8570-001-0111--For support of Department of Food and
Agriculture, for  payment to Item  8570-001-0001, payable from the
Agriculture Fund  . . . 11,032,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

8570-001-0191--For support of Department of Food and
Agriculture, for  payment to Item  8570-001-0001, payable from the
Fair and Exposition Fund  . . . 1,722,000

  8570-001-0516--For support of Department of Food and
Agriculture, for  payment to Item  8570-001-0001, payable from the
Harbors and Watercraft Revolving Fund   . . . 939,000

8570-001-0601--For support of Department of Food and
Agriculture, for  payment to Item  8570-001-0001, payable from the
Agriculture Building Fund  . . .  1,361,000

Provisions:

1. Funds appropriated by this item are in lieu of  the appropriation

made by  Section 624 of the  Food and Agricultural Code.

8570-001-0890--For support of Department of Food and
Agriculture, for  payment to Item  8570-001-0001, payable from the
Federal Trust Fund  . . . 4,426,000

Provisions:

1. The Department of Finance may authorize the augmentation of
this item  in an amount not to  exceed a cumulative total of
$1,500,000. Any augmentation pursuant to  this provision shall be
made only if the Department of Food and Agriculture has a valid
federal  contract or grant. These  funds shall not be used for state
or
federal cooperative fruit fly eradication  projects. The
augmentations pursuant to this authority are not subject to Section
26.00  or 28.00 of this act.

8570-002-0001--For support of Department of Food and
Agriculture,  Program 11, for sterile  medfly release program in the
Los Angeles Basin  . . . 7,428,000

8570-003-0001--For support of Department of Food and Agriculture
for  rental payments on lease  revenue bonds  . . . 1,600,000

8570-003-0111--For support of Department of Food and
Agriculture, for  rental payments on  lease revenue bonds, payable
from the Agriculture Fund  . . . 40,000

8570-003-0601--For support of Department of Food and
Agriculture, for  rental payments on  lease revenue bonds, payable
from the Agriculture Building Fund  . . .  224,000

8570-011-0112--For support of Department of Food and
Agriculture, for  payment to Item  8570-001-0001, payable from the
Agricultural Pest Control Research  Account  . . . 13,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the  assessment of fines  and penalties imposed as specified in
Chapter 654, Statutes of 1995.

8570-011-0191--For transfer by the State Controller from the Fair
and  Exposition Fund to the  General Fund, for health benefits for
retired employees of district  agricultural associations  . . .
(246,000)


8570-012-0192--For support of Department of Food and
Agriculture, for  payment to Item  8570-001-0001, payable from the
Satellite Wagering Account  . . . 323,000

  8570-101-0001--For local assistance, Department of Food and
Agriculture   . . . 4,987,000

Schedule:

(a) 11-Agricultural Plant and Animal, Pest and Disease Prevention  .
.
.  4,987,000

(b) 31-Assistance to Fairs and County Agricultural Activities  . . .
1,333,000

(c) Amount payable from the Fair and Exposition Fund (Item
8570-101-0191)  . . . -950,000

(d) Amount payable from the General Fund (Item 8570-111-0001)  .
. .  -383,000

8570-101-0191--For local assistance, Department of Food and
Agriculture,  for payment to Item  8570-101-0001, payable from the
Fair and Exposition Fund  . . . 950,000

Provisions:

1. The funds appropriated by this item are for unemployment
insurance at  local fairs.

2.  The funds appropriated by this item are for the contributions, or

the  cost of benefits in lieu of  contributions, payable from the
Fair
and Exposition Fund to the  Unemployment Fund by all  entities
conducting fairs, including county, district, combined county and
district, and citrus fruit  fairs receiving funds pursuant to Chapter
4
(commencing with Section  19400) of Division 8 of the  Business and
Professions Code, as a result of unemployment insurance  coverage
pursuant to  Section 605 of the Unemployment Insurance Code.

8570-111-0001--For local assistance, Department of Food and
Agriculture,  for payment to Item  8570-101-0001  . . . 383,000

Provisions:

1. The funds appropriated by this item are also available for
compensation  for services performed  for agricultural departments
and are to be expended in accordance with the  provisions of
Sections  2221 to 2224, inclusive, of the Food and Agricultural
Code.

8570-301-0001--For capital outlay, Department of Food and
Agriculture  .  . . 1,059,000

Schedule:



(1) 90.80.010-Relocation-Truckee Agriculture Inspection Station
--Acquisition, preliminary plans  and working drawings  . . . 589,000



(2) 90.90.010-Minor Projects  . . . 470,000

8570-401--For support of the Department of Food and Agriculture:
Notwithstanding any other  provision of law, $2,900,000 of the funds
appropriated pursuant to  subdivision (c) of Section 224  of the Food

and Agricultural Code shall be allocated to counties in a  manner
prescribed by the  secretary for pest detection/trapping programs.
These funds are intended to  supplement funds  available for pest
detection/trapping in Item 8570-101-0001. As a  condition of
receiving these  funds, counties shall not reduce their level of
support
from any other funds  for pest  detection/trapping programs. If a
county declines to participate in a pest  detection/ trapping
program,
or fails to conduct the program to the state's satisfaction, the
secretary shall reduce, by  the amount that would otherwise be
allocated to the county, funds available  pursuant to  subdivision
(c)
of Section 224 and other state allocations from Item
8570-101-0001. These funds  are hereby appropriated to the
Department of Food  and Agriculture Item  8570-001-0001 for
purposes of  operating the pest detection/trapping programs in the
counties.

8570-402--For local assistance, Department of Food and
Agriculture: The  remaining funds  available pursuant to subdivision
(c) of Section 224 of the Food and  Agricultural Code, after
allocation in accordance with Item 8570-401 and Provisions 1 and 2
of  Item 8570-001-0001, shall  be apportioned to the counties as
follows: In relation to each county's  expenditures to the total
amount expended by all counties for the preceding fiscal year for
agricultural programs that are  supervised by the department and for
pesticide use enforcement programs  supervised by the  Department
of Pesticide Regulation. This item shall not be effective if a  later

enacted statute  amends subdivision (c) of Section 224 of the Food
and Agricultural Code.

8570-403--For the Department of Food and Agriculture.
Notwithstanding  any other provision of  law, 30 days prior to the
Department of Food and Agriculture's entering  into interim financing

or  long-term financing, including bond agreements, pursuant to
Article 9  (commencing with Section  19590) of Chapter 4 of
Division 8 of the Business and Professions Code,  the department
shall  submit a report to the Chairperson of the Joint Legislative
Budget  Committee with copies to the  Chairpersons of Senate
Budget and Fiscal Review Subcommittee Number  2, Assembly
Ways and  Means Subcommittee Number 3, the Senate Select
Committee on Fairs and  Rural Issues, and the  Subcommittee on
Fairs and Expostions of the Assembly Committee on  Agriculture.
The report  shall list: (a) proposed individual satellite wagering
expansion projects at  fairs, (b) costs for  constructing, operating,

and maintaining individual satellite wagering  projects, (c) net
revenue  projections for individual satellite wagering projects, and
(d)
projected  effect on net Satelite  Wagering Account revenue resulting

from individual satellite wagering  projects and satellite
wagering-related projects. Additional notification is not required
for
financing proposals unless  refinancing will result in the
expenditure
of additional funds, in which case  the report shall include  the
above-requested information relating only to the new debt. Reporting
shall be required only  for satellite wagering projects that are
funded
by interim financing or  long-term financing,  including bond
agreements.

8620-001-0001--For support of the Fair Political Practices
Commission  . .  . 2,341,000

Schedule:

(a) 10.10-Local enforcement  . . . 1,042,000

(b) 10.20-Legal, technical assistance and state enforcement  . . .
1,299,000

8640-001-0001--For support of Political Reform Act of 1974, the
following sums are  appropriated to, and in augmentation of, the
following agencies and  officers for the  administration,
investigation
and regulation of the political campaigns,  officials, and lobbyists
. . .
2,191,000

Schedule:

(1) 10-Secretary of State  . . . 713,000



For transfer by the State Controller to Item 0890-001-0001 as
follows:

(a) Personal Services  . . . 487,000

(b) Operating expenses and equipment  . . . 226,000

(2) 20-Franchise Tax Board  . . . 1,264,000



For transfer by the State Controller to Item 1730-001-0001 as
follows:

(c) 30-Political Reform Audit  . . . 1,264,000

(3) 30-Department of Justice  . . . 222,000



For transfer by the State Controller to Item 0820-001-0001 as
follows:

(d) 40-Criminal Law  . . . 80,000

(e) 50-Law Enforcement  . . . 142,000

(4) 40-Fair Political Practices Commission  . . . (3,297,000)

(5) Reimbursements  . . . -8,000



For transfer by the StateController to Item 0890-001-0001(d)

Provisions:

1. The Controller shall transfer funds as specified above, including

any  allocations made by the  Department of Finance, on January 1,
1998.

8660-001-0042--For support of Public Utilities Commission, for
payment  to Item  8660-001-0462, payable from the State Highway
Account, State  Transportation Fund  . . .  2,336,000

8660-001-0046--For support of Public Utilities Commission, for
payment  to Item  8660-001-0462, payable from the Transportation
Planning and  Development Account, State  Transportation Fund  . .
. 2,414,000

8660-001-0412--For support of Public Utilities Commission, for
payment  to Item  8660-001-0462, payable from the Transportation
Rate Fund  . . . 1,808,000

  8660-001-0461--For support of Public Utilities Commission, for
payment  to Item  8660-001-0462, payable from the Public Utilities
Commission  Transportation Reimbursement  Account, General Fund
. . . 7,196,000

8660-001-0462--For support of Public Utilities Commission, payable
from  the Public Utilities  Commission Utilities Reimbursement
Account, General Fund  . . .  46,088,000

Schedule:

(a) 100000-Personal Services  . . . 53,702,000

(b) 300000-Operating Expenses and Equipment  . . . 19,506,000

(c) Reimbursements  . . . -12,378,000

(d) Amount payable from the State Highway Account, State
Transportation Fund (Item  8660-001-0042)  . . . -2,336,000

(e) Amount payable from the Transportation Planning and
Development  Account, State  Transportation Fund (Item
8660-001-0046)  . . . -2,414,000

(f) Amount payable from the Transportation Rate Fund (Item
8660-001-0412)  . . . -1,808,000

(g) Amount payable from the Public Utilities Commission
Transportation  Reimbursement  Account, General Fund (Item
8660-001-0461)  . . . -7,196,000

(h) Amount payable from the Federal Trust Fund (Item
8660-001-0890)  . .  . -988,000

Provisions:

1. The Public Utilities Commission shall require any public utility
requesting a merger to  reimburse the commission for those expenses
that the commission deems  necessary to assist in its  consideration
of
the proposed merger.

8660-001-0890--For support of Public Utilities Commission, for
payment  to Item  8660-001-0462, payable from the Federal Trust
Fund  . . . 988,000

8660-003-0462--For support of Public Utilities Commission for
rental  payments on lease revenue  bonds  . . . 5,031,000

Schedule:

(a) Base Rental and Fees  . . . 4,988,000

(b) Insurance  . . . 43,000

8700-001-0001--For support of Board of Control  . . . 857,000

Schedule:

(a) 11-Citizens Indemnification  . . . 48,843,000

(b) 21-Disaster Relief Claim Program  . . . 20,000

(c) 31-Civil Claims Against the State  . . . 857,000

(d) 41-Citizens Benefiting the Public  . . . 20,000

(e) 51.01-Administration  . . . 3,299,000

(f) 51.03-Executive Office  . . . 175,000

(g) 51.04-Revenue Recovery and Compliance Branch  . . . 917,000


(h) 51.02-Distributed Administration  . . . -4,391,000

(i) Reimbursements  . . . -20,000

(j) Amount payable from the Restitution Fund (Item 8700-001-0214)
. . .  -27,880,000

(k) Amount payable from the Federal Trust Fund (Item
8700-001-0890)  . .  . -20,963,000

(l) Amount payable from the Restitution Fund (Item 8700-002-0214)
. . .  -20,000

Provisions:

1. The Board of Control shall not routinely notify all local agencies

and  school districts regarding  its proceedings. However, for each
of
its meetings, the board shall notify all  parties whose claims  or
proposals are scheduled for consider-ation and any party requesting
notice of the proceedings.

8700-001-0214--For support of Board of Control, for support
services  pursuant to Chapter 5  (commencing with Section 13959)
of Part 4 of Division 3 of Title 2 of the  Government Code, for
payment to Item 8700-001-0001, payable from the Restitution Fund
. . .  27,880,000

8700-001-0890--For support of the Board of Control, for payment
to Item  8700-001-0001,  payable from the Federal Trust Fund  . . .
20,963,000

8700-002-0214--For support of Board of Control for support
services  pursuant to subdivision (e)  of Section 13973 of the
Government Code for payment to Item  8700-001-0001, payable
from the  Restitution Fund  . . . 20,000

8700-011-0001--For transfer to the Restitution Fund upon written
approval of the Department of  Finance to provide operating funds
for support of the Victims of Crimes  Program on a monthly  basis,
as needed, for cash-flow purposes, with all money transferred during
the 1997-98 fiscal year  to be repaid to the General Fund prior to
September 30, 1998  . . .  (20,963,000)

Provisions:

1. Notwithstanding Section 16314 of the Government Code, any
funds  transferred pursuant to   this item shall not be subject to
the
payment of interest charges thereon.

8700-101-0001--For local assistance, Board of Control for
reimbursement  of special election  costs pursuant to Chapter 1102 of

the Statutes of 1996  . . . 534,000

8700-295-0001--For local assistance, Board of Control, for
reimbursement, in accordance with  the provisions of Section 6 of
Article XIII B of the California Constitution  or of Section 17561 of

the Government Code, of the costs of any new program or increased
level  of service of an  existing program mandated by statute or
executive order, State Controller   . . . 0

Schedule:

(1) 98.01.112.377--Adult Felony Restitution (Ch. 1123, Stats. 1977)
. . . 0

  Provisions:

1. Pursuant to Section 17581 of the Government Code, the mandate
identified in the  appropriation schedule of this item with an
appropriation of $0 and  included in the language of  this provision
is
specifically identified by the Legislature for suspension  during the

1997-98 fiscal  year:

(a) Adult Felony Restitution (Ch. 1123, Stats. 1977)

8780-001-0001--For support of Milton Marks "Little Hoover"
Commission  on California State  Government Organization and
Economy  . . . 697,000

Schedule:

(a) 10-Milton Marks Commission on California State Government
Organization and Economy  . .  . 699,000

(b) Reimbursements  . . . -2,000

8800-001-0001--For support of Memberships in Interstate
Organizations,  to be allocated by the  State Controller  . . .
1,631,000

Schedule:

(a) 10-Council of State Governments  . . . 364,000

(b) 20-National Conference of State Legislatures  . . . 366,000

(c) 30-Western States Legislative Forestry Task Force  . . . 22,000



(d) 35-Pacific Fisheries Legislative Task Force  . . . 22,000

(e) 40-Governmental Accounting Standards Board  . . . 69,000

(f) 50-State and Local Legal Center  . . . 8,000

(g) 60-National Governors' Association  . . . 139,000

(h) 70-Council of State Policy and Planning Agencies  . . . 15,000


(i) 80-Coastal States' Organization  . . . 13,000

(j) 90-Western Governors' Association  . . . 36,000

(k) 91-National Center for State Courts  . . . 306,000

(l) 92-Western Interstate Commission for Higher Education  . . .
81,000

(m) 93-Interstate Compact for Education  . . . 115,000

(n) 94-For the Sake of the Salmon  . . . 75,000

8820-001-0001--For support of Commission on the Status of
Women  . . .  420,000

Schedule:

(a) 100000-Personal Services  . . . 280,000

(b) 300000-Operating Expenses and Equipment  . . . 143,000

(c) Reimbursements  . . . -3,000

8830-001-0001--For support of California Law Revision
Commission  . . .  566,000

Schedule:

(a) 10-Law Revision Commission  . . . 581,000

(b) Reimbursements  . . . -15,000

8840-001-0001--For support of California Commission on Uniform
State  Laws  . . . 117,000

8855-001-0001--For support of Bureau of State Audits, for transfer
to the  State Audit Fund  . . .  9,106,000

Schedule:

(a) 10-State Auditor  . . . 9,616,000

(b) Reimbursements  . . . -510,000

8860-001-0001--For support of Department of Finance  . . .
22,028,000

Schedule:

(a) 10-Annual Financial Plan  . . . 13,902,000

(b) 20-Program and Information System Assessments  . . . 5,633,000


(c) 30-Supportive Data  . . . 9,011,000

(d) 40.01-Administration  . . . 4,401,000

(e) 40.02-Distributed Administration  . . . -3,926,000

(f) Reimbursements  . . . -6,993,000

Provisions:

1. The funds appropriated by this item for CALSTARS shall be
transferred  by the Controller,  upon order of the Department of
Finance, or made available by the  Department of Finance as a
reimbursement, to other items and departments for
CALSTARS-related  activities by the  Department of Finance.

2. The funds appropriated in this act for purposes of
CALSTARS-related  data processing costs  may be transferred
between any items in this act by the Controller upon  order of the
Director of  Finance. Any funds so transferred shall be  used only
for
support of  CALSTARS-related data  processing costs incurred.

8885-001-0001--For support of Commission on State Mandates,
Program  10  . . . 1,007,000

Provisions:

1. The Commission on State Mandates shall provide, in applicable
parameters and guidelines, as  follows:

(a) If a local agency or school district contracts with an
independent
contractor for the  preparation and submission of reimbursement
claims, the costs  reimbursable by the state for that  purpose shall
not
exceed the lesser of (1) 10 percent of the amount of the  claims
prepared and  submitted by the independent contractor, or (2) the
actual costs that  necessarily would have been  incurred for that
purpose if performed by employees of the local agency or  school
district.

(b) The maximum amount of reimbursement authorized by
subdivision (a)  may be exceeded only  if the local agency or school
district establishes, by appropriate  documentation, that the
preparation and submission of these claims could not have been
accomplished without the  incurring of the additional costs claimed
by the local agency or school  district.

2. In the case where the Commission receives one or more county
applications for a finding of  significant financial distress
pursuant to
Section 17000.6 of the Welfare and  Institutions Code,  and where
the Commission files a request under Section 27.00 of the  Budget
Act in order to carry  out its duties with respect to those
applications, then, notwithstanding the  provisions of Section
17000.6 of the Welfare and Institutions Code, the time limit imposed
on  the Commission to reach  its preliminary and final decisions
shall
be tolled until such time as the  Commission has received  spending
authorization.

8910-001-0001-For support of Office of Administrative Law  . . .
2,016,000

Schedule:

(a) 10-Regulatory Oversight  . . . 2,156,000

(b) Reimbursements  . . . -140,000

8940-001-0001--For support of Military Department  . . . 20,140,000


Schedule:

(a) 10-Army National Guard  . . . 33,323,000

(b) 20-Air National Guard  . . . 12,176,000

(c) 30.01-Office of the Adjutant General  . . . 5,346,000

(d) 30.02-Distributed Office of the Adjutant General  . . .
-5,346,000


(e) 35-Military Support to Civil Authority  . . . 2,076,000

(f) 40-Military Retirement  . . . 2,587,000

(g) 65-California National Guard youth programs  . . . 6,650,000


(h) Reimbursements  . . . -7,239,000

(i) Amount payable from the Armory Discretionary Improvement
Fund  (Item 8940-001-0485)  . .  . -150,000

(j) Amount payable from the Federal Trust Fund (Item
8940-001-0890)  . .  . -29,283,000

Provisions:

1. No expenditures shall be made from the funds appropriated by this
item  as a substitution for  personnel, equipment, facilities, or
other
assistance, or for any portion  thereof, that, in the absence  of the

expenditure, or of this appropriation, would be available to the
Adjutant General of the  State Military Forces, the California
National Guard, or the California  National Guard Reserve  from the
federal government.

2. The funds appropriated in Schedule (f) shall be for military
retirements,  in accordance with  Sections 228 and 256 of the
Military and Veterans Code.

8940-001-0485--For support of Military Department, for payment to
Item  8940-001-0001,  payable from the Armory Discretionary
Improvement Fund  . . . 150,000

Provisions:

1. No expenditures shall be made from this appropriation until
sufficient  revenues or income from  armories have been deposited
into the State Treasury to the credit of the  General Fund pursuant
to subdivision (c) of Section 431 of the Military and Veterans Code.



8940-001-0890--For support of Military Department, for payment to
Item  8940-001-0001,  payable from the Federal Trust Fund  . . .
29,283,000

8940-301-0001--For capital outlay, Military Department   . . .
14,044,000

Schedule:

(1) 70.10.010-Statewide-Project planning--Study, working drawings,
and  construction  . . .  997,000

(2) 70.11.010 Statewide: Building Systems Restoration--Preliminary
plans,  working drawings,  and construction  . . . 1,989,000

(3) 70.12.010 Statewide: Armory Facility Survey and Master Plan,
Phase  I--Study  . . . 485,000

(4) 70.43.030 Long Beach-Redondo: Security Lighting--Preliminary
plans,  working drawings,  and construction  . . . 503,000

(5) 70.44.030 San Diego: Security Lighting--Preliminary plans,
working  drawings, and  construction  . . . 1,653,000

(6) 70.52.010 Los Angeles Armory--Construction  . . . 5,569,000

(7) 70.58.030 Long Beach-Sterns: Security Lighting--Preliminary
plans,  working drawings, and  construction  . . . 643,000

(8) 70.59.030 Stockton: Security Lighting--Preliminary plans,
working  drawings, and  construction  . . . 288,000

(9) 70.90.030 Statewide: Minor Projects  . . . 1,917,000

8940-301-0890--For capital outlay, Military Department, payable
from the  Federal Trust Fund   .  . . 12,347,000

Schedule:

(1) 70.10.010 Statewide-Project planning--Study, working drawings,
and  construction  . . .  3,412,000

(2) 70.11.010 Statewide: Building Systems Restoration--Preliminary
plans,  working drawings,  and construction  . . . 1,989,000

(3) 70.52.010 Los Angeles Armory-Construction  . . . 6,946,000

8955-001-0001--For support of Department of Veterans Affairs  . . .
2,070,000

Schedule:

(a) 10-Farm and Home Loans to Veterans  . . . 1,247,000

(b) 20-Veterans Claims and Rights  . . . 1,449,000

(c) 30-Care of Sick and Disabled Veterans  . . . 756,000

(d) 35-Home Start-up Costs  . . . 209,000

(e) 50.01-General Administration  . . . 2,103,000

(f) 50.02-Distributed General Administration  . . . -2,103,000

(g) Reimbursements  . . . -319,000

(h) Amount payable from the Veterans Service Office Fund (Item
8955-001-0083)  . . . -25,000

(i) Amount payable from the Veterans' Farm and Home Building
Fund of  1943 (Item  8955-001-0592)  . . . -1,247,000

8955-001-0083--For support of Department of Veterans Affairs, for
payment to Item  8955-001-0001, payable from the Veterans Service
Office Fund  . . .  25,000

8955-001-0592--For support of Department of Veterans Affairs, for
payment to Item  8955-001-0001, payable from the Veterans Farm
and Home Building Fund  of 1943  . . .  1,247,000

8955-101-0001--For local assistance, Department of Veterans
Affairs, for  contribution to  counties toward compensation and
expenses of county veteran services  offices, to be expended in
accordance with Section 972 et seq. of the Military and Veterans
Code  . . .  1,600,000

Schedule:

(a) 20-Veterans Claims and Rights  . . . 2,438,000

(b) Reimbursements  . . . -838,000

8955-101-0083--For local assistance, Department of Veterans
Affairs,  county veteran services  offices, payable from the Veterans

Service Office Fund  . . . 196,000

8960-011-0001--For support of Veterans' Home of
California-Yountville  .  . . 25,482,000

Schedule:

(a) 30-Care of Sick and Disabled Veterans  . . . 54,409,000

(b) Reimbursements  . . . -18,967,000

(c) Amount payable from the Federal Trust Fund (Item
8960-011-0890)  . .  . -9,960,000

Provisions:

1. The General Fund shall make a loan available to the Veterans'
Home of  California to meet cash  needs resulting from the delay in
receipt of federal funds or reimbursements  for medical services
provided. The loan is short term, and shall be repaid within six
months.  Interest charges shall be  waived pursuant to subdivision
(e)
of Section 16314 of the Government  Code.

2. Any loan authorized pursuant to this item shall require approval
by
the  Department of Finance.  Provisions 2, 3, and 4 of Item
9840-011-0001 shall also apply to any loan  authorized pursuant to
this item.

3. Notwithstanding Section 1012.3 of the Military and Veterans
Code or  any other provision of  law, the Department of Veterans
Affairs may increase the fees and charges  to residents of the
Veterans' Home of California. The department shall assess the fees
on an  ability-to-pay basis and  under no circumstances shall the
fees
charged exceed the cost of the level  of care provided to the
resident. In addition, the department shall determine a reasonable
level of  monthly income for  residents' personal use and shall
exempt
this income from the monthly fees.

8960-011-0890--For support of Veterans' Home of
California-Yountville,  for payment to Item  8960-011-0001, payable
from the Federal Trust Fund  . . . 9,960,000

8965-001-0001--For support of Veterans' Home of
California-Barstow  . .  . 10,084,000

Schedule:

(a) 30-Care of Sick and Disabled Veterans   . . . 15,840,000

(b) Reimbursements  . . . -3,016,000

(c) Amount payable from the Federal Trust Fund (Item
8965-001-0890)  . .  . -2,740,000

Provisions:

1. Notwithstanding Section 1012.3 of the Military and Veterans
Code or  any other provision of  law, the Department of Veterans
Affairs may increase the fees and charges  to residents of the
Veterans' Home of California, Barstow. The department shall assess
the  fees on an ability-to-pay  basis, and under no circumstances
shall
the fees charged exceed the cost of  the level of care  provided to
the
resident. In addition, the department shall determine a  reasonable
level of monthly  income for residents' personal use and shall exempt

this income from the  monthly fees.

8965-001-0890--For support of Veterans' Home of
California-Barstow, for  payment to Item  8965-001-0001, payable
from the Federal Trust Fund  . . . 2,740,000

8965-003-0001--For Support of the Veterans Home of California
Barstow  for rental payments on  lease revenue bonds  . . . 860,000



Schedule:

(a) Base rental and fees  . . . 1,313,000

(b) Insurance  . . . 30,000

(c) Reimbursements  . . . -255,000

(d) Amount payable from Federal Trust Fund (Item 8965-003-0890)
. . .  -228,000

8965-003-0890--For support of the Veterans Home of California
Barstow  for rental payments on  lease revenue bonds, for payment
to Item 8965-003-0001, payable from the  Federal Trust Fund  .  . .
228,000

9100-101-0001--For local assistance, Tax Relief  . . . 474,941,000



Schedule:

(a) 10-Senior Citizens' Property Tax Assistance  . . . 2,100,000


(b) 20-Senior Citizens' Property Tax Deferral Program  . . .
16,500,000

(c) 30-Senior Citizen Renters' Tax Assistance  . . . 14,500,000

(d) 50-Homeowners' Property Tax Relief  . . . 405,471,000

(e) 60-Subventions for Open Space  . . . 36,000,000

(f) 90-Substandard Housing  . . . 370,000

Provisions:

1. Schedule (a) is for property tax assistance to  homeowner
claimants in  accordance with the  Senior Citizens Property Tax
Assistance and Postponement Law, as set  forth in Part 10.5
(commencing with Section 20501) of Division 2 of the Revenue and
Taxation Code.

  Any unexpended balance in Schedule (a) may be used to make
payments  to senior citizen renter  claimants under Schedule (c).


2. Schedule (b) is for property tax postponement and assistance to
claimants in accordance with  the Senior Citizens Property Tax
Assistance and Postponement Law, as set  forth in Part 10.5
(commencing with Section 20501) of Division 2 of the Revenue and
Taxation Code. The  appropriation made by this schedule shall be in
lieu of the appropriation for  the same purpose  contained in Section

16100 of the Government Code.

3. Schedule (c) is for property tax assistance to renter claimants in

accordance with the Senior  Citizens Property Tax Assistance and
Postponement Law, as set forth in  Part 10.5 (commencing  with
Section 20501) of Division 2 of the Revenue and Taxation Code.

  Any unexpended balance in Schedule (c) may be used to make
payments  to senior citizen  homeowner claimants under Schedule
(a).

4. Schedule (d) is for reimbursement to local taxing authorities for
revenue  lost by reason of the  homeowners' property tax exemption
granted pursuant to subdivision (k)  of Section 3 of Article  XIII of

the California Constitution. The appropriation made by this  schedule

shall be in lieu of the  appropriation required pursuant to Section
25
of Article XIII of the  California Constitution and  the
appropriation
for the same purposes contained in Section 16100 or  Section 16120
of the  Government Code.

5. Schedule (e) is for providing reimbursement to local taxing
authorities  for revenue lost by  reason of the assessment of
open-space lands under Sections 423, 423.3,  and 423.5 of the
Revenue and Taxation Code, and in accordance with Chapter 3
(commencing with Section  16140) of Part 1 of Division 4 of Title 2
of the Government Code. The  appropriation made by this  schedule
shall be in lieu of the appropriation for the same purpose  contained

in Section 16100 or  Section 16140 of the Government Code.

6. Schedule (f) is for transfer by the Controller to the Local Agency

Code  Enforcement and  Rehabilitation Fund, for the purpose of
providing funds to defray costs  incurred in the  enforcement of
local
housing code provisions and to fund housing  rehabilitation programs
for  persons and families of low and moderate income, as defined in
Section  50093 of the Health and  Safety Code, to be allocated to
local agencies, prorated on the basis of  their share of disallowed
deductions that resulted from the agencies' proceedings.

  This amount is in lieu of any statutory requirement.

9100-295-0001--For local assistance, Tax Relief, for reimbursement,
in  accordance with the  provisions of Section 6 of Article XIII B of

the California Constitution or  of Section 17561 of the  Government
Code, of the costs of any new program or increased level of  service
of an existing  program mandated by statute or executive order, State

Controller  . . .  952,000

Schedule:

(1) 98.01.124.277-Senior Citizens' Property Tax Deferral Program
(Ch.  1242, Stats. 1977)  . . .  258,000

(2) 98.01.092.187-Countywide Tax Rates (Ch. 921, Stats. 1987)  . . .
350,000

(3) 98.01.069.792-Allocation of Property Tax Revenue (Ch. 697,
Stat.  1992)  . . . 344,000

(4) 98.01.105.183-Senior Citizen's Mobilehome Property Tax
Deferral  (Ch. 1051, Stats. 1983)  . .  . 0

(5) 98.01.004.887-Property Tax-Family Transfers (Ch. 48, Stats.
1987)  . .  . 0

Provisions:

1. Except as provided in Provision 2 below, allocations of funds
provided  in this item to the  appropriate local entities shall be
made
by the State Controller in  accordance with the provisions  of each
statute or executive order that mandates the reimbursement of the
costs, and shall be  audited to verify the actual amount of the
mandated costs in accordance  with subdivision (d) of  Section 17561
of the Government Code. Audit adjustments to prior year  claims
may be paid from  this item. Funds appropriated in this item may be
used to provide  reimbursement pursuant to  Article 5 (commencing
with Section 17615) of Chapter 4 of Part 7 of  Division 4 of Title 2
of the  Government Code.

2. Pursuant to Section 17581 of the Government Code, mandates
identified  in the appropriation  schedule of this item with an
appropriation of $0 and included in the  language of this provision
are  specifically identified by the Legislature for suspension during

the 1997-98  fiscal year:

(a) Senior Citizen's Mobilehome Property Tax Deferral (Ch. 1051,
Stats.  1983)

(b) Property Tax-Family Transfers (Ch. 48, Stats. 1987)

3. If any of the scheduled amounts are insufficient to provide full
reimbursement of costs, the  State Controller may, upon notifying the

Director of Finance in writing,  augment those deficient  amounts
from the unencumbered balance of any other scheduled amounts
therein. No order may  be issued pursuant to this provision unless
written notification of the  necessity therefor is provided  to the
chairperson of the committee in each house which considers
appropriations and the  Chairperson of the Joint Legislative Budget
Committee or his or her  designee.

9210-101-0001--For local assistance, local government financing,
payable  from the General Fund   . . . 100,000,000

Provisions:

1. The funds appropriated by this item are for allocation by the
Controller  to local jurisdictions for  public safety purposes, as
determined by the Director of Finance pursuant  to Section 30061 et
seq. of the Government Code.

9210-103-0001--For local assistance, Local Government Financing.
For  assistance to  redevelopment agencies, to be allocated by the
State Controller  . . .  5,000,000

Provisions:

1. The appropriation made by this item shall be in lieu of any
appropriation  required pursuant to  Chapter 1.5 (commencing with
Section 16110) of Part 1 of Division 4 of  Title 2 of the  Government

Code.

2. The State Controller shall allocate funds appropriated in this
item
to  redevelopment agencies  that have pledged, pursuant to bond
instruments and supporting  documents, special supplemental
subventions as security for payment of the principal and interest on
bonds,  and have demonstrated  that gross tax increment revenues
allocated to them in the 1996-97 fiscal  year (as reported for
inclusion in the State Controller's "Annual Report of Financial
Transactions  Concerning  Community Redevelopment Agencies of
California, Fiscal Year 1996-97"),  less housing set-aside  amounts
not available for debt service, and less any reserve requirement
deficiency existing as of  December 31, 1997, would be insufficient
to cover their maximum annual  debt service  requirements on bonds
to which special supplemental subventions have  been pledged. The
amount  allocated to any redevelopment agency shall not exceed the
lesser of: (a)  the amount that the  redevelopment agency would
otherwise be entitled to receive pursuant to  paragraph (3) of
subdivision (c) of Section 16111 of the Government Code, or (b) the
amount required by the  redevelopment agency to cover its maximum
annual debt service  requirements on bonds to which  special
supplemental subventions have been pledged, plus any reserve
requirement deficiency  existing as of December 31, 1997, less the
amount of gross tax increment  revenues allocated to it  in the
1996-97 fiscal year, less housing set-aside amounts not available for

debt service.



3. If the allocation required pursuant to Provision 2 would exceed
the
amount of the  appropriation in this item, the State Controller shall

prorate the allocation  to those redevelopment  agencies which meet
the requirements of Provision 2.

4. Notwithstanding Section 2.00, the State Controller shall allocate
50  percent of the  appropriation in this item on or before December
31, 1997, and 50 percent  of the appropriation in  this item on July
31, 1998. Expenditure of the amount to be allocated on  July 31,
1998, shall be  accounted by the State Controller as an expenditure
of the 1998-99 fiscal  year.

9210-295-0001--For local assistance, Local Government Financing,
for  reimbursement, in  accordance with the provisions of Section 6
of Article XIII B of the  California Constitution or of  Section
17561
of the Government Code, of the costs of any new program  or
increased level of  service of an existing program mandated by
statute
or executive order,  State Controller  . . .  4,850,000

Schedule:

(1) 98.01.048.675-Test Claims and Reimbursement Claims (Ch.
486/75)  .  . . 2,580,000

(2) 98.01.064.186-Open Meetings Act Notices (Ch. 641/86)  . . .
2,199,000

(3)  98.01.084.578-Filipino Employee Surveys (Ch. 845/78)  . . . 0



(4) 98.01.088.981-Lis Pendens (Ch. 889/81)  . . . 0

(5)  98.01.098.084-Proration of Fines and Court Audits (Ch. 980/84)
. . .  0

(6)  98.01.099.991-Rape Victim Counseling Ctr. Notices (Ch.
999/91)  . . .  71,000

(7)  98.01.128.180-Involuntary Lien Notices (Ch. 1281/80)  . . . 0


(8)  98.01.160.984-Domestic Violence Information (Ch. 1609/84)  . .
. 0

Provisions:

1. Except as provided in Provision 2 below, allocations of funds
provided  in this item to the  appropriate local entities shall be
made
by the State Controller in  accordance with the provisions  of each
statute or executive order that mandates the reimbursement of the
costs, and shall be  audited to verify the actual amount of the
mandated costs in accordance  with subdivision (d) of  Section 17561
of the Government Code. Audit adjustments to prior year  claims
may be paid from  this item. Funds appropriated in this item may be
used to provide  reimbursement pursuant to  Article 5 (commencing
with Section 17615) of Chapter 4 of Part 7 of  Division 4 of Title 2
of the  Government Code.

2. Pursuant to Section 17581 of the Government Code, mandates
identified  in the appropriation  schedule of this item with an
appropriation of $0 and included in the  language of this provision
are  specifically identified by the Legislature for suspension during

the 1997-98  fiscal year:

(a) Filipino Employee Surveys (Ch. 845/78)

(b) Lis Pendens (Ch. 889/81)

(c) Proration of Fines and Court Audits (Ch. 980/84)

(d) Involuntary Lien Notices (Ch. 1281/80)

(e) Domestic Violence Information (Ch. 1609/84)

3. If any of the scheduled amounts are insufficient to provide full
reimbursement of costs, the  State Controller may, upon notifying the

Director of Finance in writing,  augment those deficient  amounts
from the unencumbered balance of any other scheduled amounts
therein. No order may  be issued pursuant to this provision unless
written notification of the  necessity therefor is provided  to the
chairperson of the committee in each house which considers
appropriations and the  Chairperson of the Joint Legislative Budget
Committee or his or her  designee.

9620-001-0001--For Payment of Interest on General Fund loans,
upon  order of the Director of  Finance, for any General Fund loan  .

. . 51,000,000

Provisions:

1. The Director of Finance, the Controller, and the State Treasurer
shall  satisfy any need of the  General Fund for borrowed funds in a
manner consistent with the  Legislature's objective of  obtaining the

lowest possible rate of interest on this borrowing. The state  fiscal

officers shall use  external borrowing rather than borrowing from
internal state funds  whenever it is economically  advantageous to
the
General Fund.

2. In the event that interest expenses related to internal borrowing
exceed  the amount  appropriated by this item, there is hereby
appropriated any amounts  necessary to pay the interest.  Funds
appropriated by this item shall not be expended prior to 30 days
after the Department of  Finance notifies the Joint Legislative
Budget
Committee of the amount(s)  necessary or not sooner  than such
lesser time as the Chairperson of the Joint Legislative Budget
Committee may  determine.

9625-001-0001--For Interest Payments to the Federal Government
arising  from the Cash  Management Improvement Act of 1990  . . .
12,000,000

Provisions:

1. Expenditures from the funds appropriated by this item shall be
made by  the State Controller,  subject to the approval of the
Department of Finance, and shall be charged  to the fiscal year in
which the disbursement is issued.

2. In the event that expenditures for interest payments to the
federal
government arising from the  Cash Management Improvement Act
exceed the amount appropriated by  this item, the Director of
Finance may allocate an additional amount not to exceed
$10,000,000 over  the amount  appropriated by this item. This
allocation shall be made no sooner than 30  days after notification
to
the Chairperson of the Joint Legislative Budget Committee and the
chairperson of the fiscal  committees in each house.

9625-001-0042--For Interest Payment to the Federal Government
arising  from the Cash  Management Improvement Act of 1990,
payable from the State Highway  Account, State  Transportation
Fund  . . . 500,000

Provisions:

1. Provision 1 of Item 9625-001-0001 also applies to this item.


2. In the event that expenditures for interest payments to the
federal
government arising from the  Cash Management Improvement Act of
1990 exceed the amount  appropriated by this item, the  Director of
Finance may allocate an additional amount not to exceed  $1,000,000
over the amount  appropriated by this item. This allocation shall be
made no sooner than 30  days after notification  to the Chairperson
of the Joint Legislative Budget Committee and the  chairperson of
the fiscal  committees in each house.

9625-001-0494--For Interest Payments to the Federal Government
arising  from the Cash  Management Improvement Act of 1990,
payable from the appropriate  special fund  . . . 1,000

Provisions:

1. Provision 1 of Item 9625-001-0001 and Provision 2 of Item
9625-001-0042 also apply to this  item.

9625-001-0988--For Interest Payments to the Federal Government
arising  from the Cash  Management Improvement Act of 1990,
payable from the appropriate  nongovernmental cost fund   . . . 1,000



Provisions:

1. Provision 1 of Item 9625-001-0001 and Provision 2 of Item
9625-001-0042 also apply to this  item.

9650-001-0001--For support of Health and Dental Benefits for
Annuitants.  For the state's  contribution for the cost of a health
benefits plan and dental care premiums,  for annuitants and  other
employees, in accordance with Sections 22825.7, 22828, 22829, and
22952 of the  Government Code, which cost is not chargeable to any
other appropriation   . . . 278,710,000

Schedule:

(a) Health benefit premiums  . . . 247,787,000

(b) Dental care premiums  . . . 30,923,000

Provisions:

1. The maximum transfer amounts specified in subdivision (b) of
Section  6.50 of this act shall not  apply to this item.

2. Notwithstanding Section 22819 of the Government Code or any
other  provision of law,  annuitants and their family members, who
were employed by the California  State University, and  who become
eligible for Part A and Part B of Medicare during the 1997-98  fiscal

year, shall not  be enrolled in a basic health benefits plan during
the
1997-98 fiscal year. If  the annuitant or family  member is enrolled
in
Part A and Part B of Medicare, he or she may enroll  in a supplement
to the  Medicare plan. This provision shall not apply to employees
and family  members who are  specifically excluded from enrollment
in a supplement to the Medicare plan  by federal law or  regulation.



3. The maximum monthly contribution for annuitants shall be $148
for a  single enrollee, $282 for  an enrollee and one dependent, and
$362 for an enrollee and two or more  dependents.

9670-001-0001--For equity claims before the State Board of Control
and  for settlements and  judgments in cases in which the state is
represented by the Department of  Justice for the  administration and

payment of tort liability claims, settlements,  compromises and
judgments  against the state, its officers, servants and employees of

state agencies,  departments, boards,  bureaus or commissions
supported from the General Fund, for expenditure  by the
Department of  Justice, subject to approval of the Department of
Finance in its discretion  .  . . 1,000

Provisions:

1. In the event that expenditures for purposes of Item
9670-001-0001  exceed the amount  appropriated in this item, the
Director of Finance may allocate sufficient  amounts, not to exceed
$1,200,000, from the Special Fund for Economic Uncertainties to
this item.

  2. There is hereby appropriated from each fund, other than the
General  Fund, an amount sufficient  for payment of tort liability
claims, settlements, compromises, and  judgments against the state,
its  officers, servants and employees of state agencies, departments,

boards,  bureaus, or commissions  arising from activities supported
from that fund. No expenditure from any  appropriation from a  fund
other than the General Fund for payment of tort liability claims,
settlements, compromises,  and judgments shall be made unless
approved by the Department of  Finance in its discretion.

3. Expenditures made under this item shall be charged to the fiscal
year in  which the warrant is  issued by the State Controller.

4. Payment under this item is limited in amount to claims,
settlements,  compromises, and  judgments which do not exceed
$70,000, exclusive of interest, and no  payment from this item
exceeding that amount shall be approved by the Department of
Finance or  made by the  Department of Justice.

5. No payment shall be approved by the Department of Finance or
made by  the Department of  Justice from this item except in full and

final satisfaction of the claim,  settlement, compromise, or
judgment
upon which the payment is based.



6. Funding for the payment of tort liability claims, settlements,
compromises, and judgments  which require the approval of the
Director of Finance shall first be  considered from within the
affected agency, department, board, bureau, or commission's existing
budgeted resources.  Payment pursuant to this item (from the
General Fund or funds other than  the General Fund) shall  be made
only after the affected agency, department, board, bureau, or
commission has  demonstrated to the Department of Finance that
insufficient funds are  available for payment of all  or a portion of
the
claim.

9670-401--For maintenance of accounting records by the State
Controller's  office or any other  agency maintaining these records,
appropriations made in this act for  Organization Code 9670  (Equity
Claims of Board of Control and Settlements and Judgments by
Department of Justice) are  to be recorded under Organization Code
9671 (Equity Claims of Board of  Control) and  Organization Code
9672 (Settlements and Judgments by Department of  Justice).

9800-001-0001--For Augmentation for Employee Compensation  . . .
0

Provisions:

1. It is the intent of the Legislature that the appropriation amount
specified  by this item not be  construed to control or influence
collective bargaining between the state  employer and the  exclusive
representatives of state employees. It is the intent of the
Legislature
that funds be  appropriated in accordance with the provisions of any
memoranda of  understanding executed by  the employer and
employee organizations and subsequently ratified by the  Legislature
pursuant to  Chapter 10.3 (commencing with Section 3512) of
Division 4 of Title 1 of  the Government Code.

9800-001-0494--For Augmentation for Employee Compensation,
payable  from other unallocated  special funds  . . . 0

Provisions:

1. It is the intent of the Legislature that the amount in this item
shall
not be  construed to control  or influence collective bargaining
between the state employer and the  exclusive representatives of
state employees. It is the intent of the Legislature that funds be
appropriated in accordance with  the provisions of any memoranda of
understanding executed by the  employer and employee
organizations and subsequently ratified by the Legislature pursuant
to
Chapter 10.3 (commencing  with Section 3512) of Division 4 of Title
1 of the Government Code.

9800-001-0988--For Augmentation for Employee Compensation,
payable  from other unallocated  nongovernmental cost funds  . . . 0



Provisions:

1. It is the intent of the Legislature that the amount in this item
shall
not be  construed to control  or influence collective bargaining
between the state employer and the  exclusive representatives of
state employees. It is the intent of the Legislature that funds be
appropriated in accordance with  the provisions of any memoranda of
understanding executed by the  employer and employee
organizations and subsequently ratified by the Legislature pursuant
to
Chapter 10.3 (commencing  with Section 3512) of Division 4 of Title
1 of the Government Code.

9800-011-0001--For Augmentation for Employee Compensation
(Proposition 98)  . . . 0

Provisions:

1. It is the intent of the Legislature that the amount in this item
shall
not be  construed to control  or influence collective bargaining
between the state employer and the  exclusive representatives of
state employees. It is the intent of the Legislature that funds be
appropriated in accordance with  the provisions of any memoranda of
understanding executed by the  employer and employee
organizations and subsequently ratified by the Legislature pursuant
to
Chapter 10.3 (commencing  with Section 3512) of Division 4 of Title
1 of the Government Code.



9840-001-0001--For Augmentation for Contingencies or
Emergencies  . . .  2,000,000

Provisions:

1. The funds appropriated for the augmentation for contingencies or
emergencies are to be  expended only on written authorization of the
Department of Finance for  contingencies or  emergencies.

2. Contingencies, within the meaning of these funds, are defined as
proposed expenditures arising  from unexpected conditions or losses
for which no appropriation, or  insufficient appropriation,  has been

made by law and which, in the judgment of the Director of  Finance,
constitute cases of  actual necessity. Emergencies, within the
meaning of this item, are defined  as expenditures  incurred in
response to conditions of disaster or extreme peril which  threaten
the health or safety  of persons or property within the state.



3. Emergency and contingency expenditure authorizations and
deficiency  expenditure  authorizations shall be limited to purposes
which have been specifically  approved by the  Legislature in Budget
Acts or other legislation, except that not more than  $200,000 of
each fund  may be expended for purposes for which no such specific
prior  authorizations exist.

4. Authorizations for expenditures or deficiency expenditures arising

from  a contingency shall  become effective no sooner than 30 days
after notification in writing to the  Joint Legislative  Budget
Committee, or no sooner than such  lesser time as the committee,  or
its designee, may in  each instance determine.

5. For expenditure authorizations or deficiency expenditure
authorizations  arising from an  emergency, the Director of Finance
shall file with the Joint Legislative  Budget Committee, within  10
days after approval, copies of all executive orders for
emergency-related  encumbrance or  expenditure authorizations,
stating the reasons for, and the amount of, all  such authorizations,

except that any emergency augmentation from this item to any
program in  excess of 10 percent of  the amount authorized for
expenditure in the 1997-98 fiscal year for such  program shall
become  effective no sooner than 30 days after notification in
writing
to the Joint  Legislative Budget  Committee or no sooner than such
lesser time as the committee, or its  designee, may in each  instance

determine, except that no such limit shall apply if the Director of
Finance states in writing  to the Chairperson of the Joint
Legislative
Budget Committee the necessity  and urgency for the  allocation
which, in the judgment of the director, makes prior approval
impractical.

6. For purposes for which the Governor previously vetoed funding,
allocation of funds or  authorization for deficiency expenditures
shall
not be made under the  emergency provisions.

9840-001-0494--For Augmentation for Contingencies or
Emergencies,  payable from unallocated  special funds  . . .
1,500,000


Provisions:

1. Provisions 1, 2, 3, 4, 5, and 6 of Item 9840-001-0001 also apply
to this  item.

2. For the Augmentation for Contingencies or Emergencies, payable
from  special funds, there are  appropriated from each special fund
sums necessary to meet contingencies  or emergencies, to be
expended only on written authorization of the Director of Finance.
No  deficiencies shall be  authorized by the Director of Finance in
any
appropriation of money from  special funds made by  this act for the
1997-98 fiscal year under the provisions of Section 11006  of the
Government  Code. Accounts, special accounts, and funds in the
General Fund, that are  treated as other  governmental cost funds for

accounting and budgeting purposes in  accordance with Section
13303 of the Government Code, shall be considered to be special
funds  within the meaning of this  item.

9840-001-0988--For Augmentation for Contingencies or
Emergencies,  payable from unallocated  nongovernmental cost funds
. . . 1,500,000

Provisions:

1. Provisions 1, 2, 3, 4, 5, and 6 of Item 9840-001-0001 also apply
to this  item.

2. For Reserve for Contingencies or Emergencies, payable from
nongovernmental cost funds,  there is appropriated from each
nongovernmental cost fund that is subject  to control or limited by
this act, sums necessary to meet contingencies or emergencies, to be
expended only on written  authorization of the Director of Finance.
No deficiencies shall be  authorized by the Director of  Finance in
any
appropriation of money from nongovernmental cost funds  made by
this act for the  1997-98 fiscal year under the provisions of Section

11006 of the  Government Code.

9840-011-0001--For Augmentation for Contingencies or
Emergencies  (Loans)  . . . (2,500,000)

Provisions:

1. This appropriation is for loans that may be made to state agencies

which  derive their support  from the General Fund or from sources
other than the General Fund, upon  terms and conditions  for
repayment as may be prescribed by the Department of Finance. Any
sum so loaned shall, if  ordered by the Department of Finance, be
transferred by the State  Controller to the fund from  which the
support of the agency is derived.

2. No loan shall be made which requires repayment from a future
legislative  appropriation.

3. Authorizations for loans shall become effective no sooner than 30
days  after notification in  writing to the Joint Legislative Budget
Committee, or no sooner than a  lesser time which the  committee, or
its designee, may in each instance determine, except that this  limit

shall not apply if  the Director of Finance states in writing to the
Chairperson of the Joint  Legislative Budget  Committee the
necessity and urgency for the loan which, in the judgment of  the
director, makes  prior approval impractical.

4. Within 10 days after approval, the Director of Finance shall file
with the  Joint Legislative  Budget Committee copies of all executive

orders for loans stating the  reasons for, and the amount  of, all of

these authorizations.

9840-490--Reappropriation, Augmentation for Contingencies or
Emergencies. As of June 30,  1997, the balances of the
appropriations made by Items 9840-001-0001,  9840-001-0494 and
9840-001-0988, Budget Act of 1996, shall revert to the
unappropriated  surplus of the General  Fund, special funds, and
nongovernmental cost funds, respectively.

  As of July 1, 1997, the amounts reverted as of June 30, 1997, for
Items  9840-001-0001,  9840-001-0494 and 9840-001-0988, Budget
Act of 1996, are  reappropriated and shall be  available until June
30,
1998, and may be expended on written  authorization of the
Department of  Finance issued on or before said date, for
contingencies and emergencies,  within the meaning of  those items,
occurring during the 1996-97 fiscal year.

9860-301-0001--For unallocated capital outlay (10.10.010)   . . .
50,000

Provisions:

1. The funds appropriated by this item are to be allocated by the
Department of Finance to state  agencies to develop design and cost
information for new projects for which  funds have not been
appropriated previously, but which are anticipated to be included in
the  1998-99 or 1999-2000  Governor's Budget. The amount
appropriated in this item shall not be  construed as a commitment  by

the Legislature as to the amount of capital outlay funds it will
appropriate in any future fiscal  year.

   SEC. 3.00.  Whenever herein an appropriation is made for
support, it  shall include salaries and  all other proper expenses,
including repairs and equipment, incurred in  connection with the
institution, department, board, bureau, commission, officer,
employee, or  other agency for which  the appropriation is made.


   Each item appropriating funds for salaries and wages includes the
additional funds necessary  to continue the payment of the amount of
salaries in effect on June 30,  1997, for the state officers  whose
salaries are specified by statute.

   Whenever herein an appropriation is made for capital outlay, it
shall  include acquisition of  land or other real property, major
construction, improvements, equipment,  designs, working  plans,
specifications, repairs, and equipment necessary in connection with a

construction or  improvement project.

   Whenever herein any item of appropriation contains provisions
for  acquisition of land or other  real property, it shall include
all
necessary expenses in connection with the  acquisition of the
property.

   Whenever herein an appropriation is made in accordance with a
schedule set forth after the  appropriation, the expenditures from
that
item for each category, program,  or project included in  the
schedule
shall be limited to the amount specified for that category,  program,

or project, except  as otherwise provided in this act. Each schedule
is
a restriction or limitation  upon the expenditure  of the respective
appropriation made by this act, does not itself appropriate  any
money, and is not  itself an item of appropriation.

   As used in this act in reference to the schedules "category",
"program",  or "project" means a  class of expenditure such as, but
not limited to:



   (a) "Personal services," which shall include all expenditures for
payment  of officers and  employees of the state, including: salaries

and wages, workers'  compensation, compensation paid  to
employees on approved leave of absence on account of sickness,
unemployment compensation  benefits, insurance premiums for
workers' compensation coverage,  industrial disability leave and
payments, nonindustrial disability benefits and payments, the state's

contributions to the Public  Employees' Retirement Fund, the
Teachers' Retirement Fund, the  University of California  Retirement
Fund to provide for that portion of retirement costs to be  provided
for Hastings  College of the Law in Item 6600-001-0001 of this
Budget Act, the Old  Age and Survivors'  Insurance Revolving Fund,
the Public Employees' Contingency Reserve  Fund, and the state's
cost  of health benefits plans; but do not include compensation of
independent  contractors rendering  personal services to the state
under contract.

   (b) "Operating expenses and equipment," which shall include all
expenditures for purchase of  materials, supplies, equipment,
services
(other than services of state  officers and employees),  departmental

services (services provided by other organizational units  within a
department,  including indirect distributed costs), and all other
proper
expenses.

   (c) "Preliminary plans" are defined as a site plan, architectural
floor  plans, elevations, outline  specifications, and a cost
estimate.
For each utility, site development,  conversion and remodeling
project, the drawings shall be sufficiently descriptive to accurately

convey  the location, scope,  cost, and the nature of the improvement

being proposed.

   (d) "Working drawings" are defined as a complete set of plans
and  specifications showing and  describing all phases of a project,
architectural, structural, mechanical,  electrical, civil
engineering,
and landscaping systems to the degree necessary for the purposes of
accurate bidding by  contractors and for the use of artisans in
constructing the project. All  necessary professional fees  and
administrative service costs are included in the preparation of these

drawings.

   (e) "Construction," when used in connection with a capital outlay
project, shall include all  such related things as fixtures,
installed
equipment, auxiliary facilities,  contingencies, project
construction,
management, administration and associated costs.

   (f) "Minor projects" include planning, working drawings,
construction,  improvements, and  equipment projects not specifically

set forth in the schedule.



   (g) "Programs" include all expenditures, regardless of category,
required to carry out the  objectives of the named activity.

   For the purpose of further interpreting the meaning of the words,
terms  and phrases, and  uniform codes used in the schedules,
reference is hereby made to those  documents entitled, "State  of
California Governor's Budget for 1997-98," submitted by the
Governor  to the Legislature at  the 1997 portion of the 1997-98
Regular Session, the uniform accounting  system prescribed by  the
Department of Finance under the provisions of Section 13300 and
following of the  Government Code, the Uniform Codes Manual, and
the appropriate  portions thereof. The  Department of Finance shall
establish interpretations necessary to carry out  the provisions of
this
section and shall furnish the same to the State Controller and to
every state  agency to which  appropriations are made under this act.



   SEC. 3.50.  Whenever herein an appropriation is made for
support or  other expenses for an  institution, department, board,
bureau, commission, officer, employee, or  other agency, there shall
be charged to the appropriation from which salaries and wages are
paid:  workers' compensation,  compensation paid to employees on
approved leave of absence on account  of sickness,  unemployment
compensation benefits, industrial disability leave and  payments,
nonindustrial  disability benefits and payments, the administrative
costs of the Merit  Award Program provided  by Section 19823 of
the Government Code, the state's contribution to the  Public
Employees'  Retirement Fund as provided by Sections 20751 and
20752 of the  Government Code, the state's  contribution to the
Teachers' Retirement Fund as provided by Sections  23000, 23400,
and  23400.1 of the Education Code, the state's contribution to the
Old Age and  Survivors' Insurance  Revolving Fund as provided by
Sections 20782 and 20783 of the  Government Code, the state's
contribution to the Old Age and Survivors' Insurance Revolving
Fund for  payment of hospital  insurance taxes imposed by the
Internal Revenue Code, the state's  contribution to the Public
Employees' Contingency Reserve Fund, the state's contribution for
the cost  of health benefits  plans as provided by Sections 22825.1,
22828 and 22829 of the  Government Code, and the state's
contribution for costs of other employee benefits and the
administrative  costs associated with the  provision of benefits
established by any state agency legally authorized to  negotiate and
set salary  and benefit levels.

   As of the effective date of this act, the state's contributions as

provided  by Sections 22825.1,  22828 and 22829 of the Government
Code and for costs of any other  employee benefits and the
administrative costs associated with the provisions of these benefits

established by any state  agency legally authorized to negotiate and
set salary and benefit levels for  any month shall be  charged to the

same appropriations used for payment of salaries and wages  from
which the  employee premium contributions for such month are
deducted.

   The appropriations made by Sections 20751, 20752, 20782,
20783,  22825.1, 22828, and  22829 of the Government Code and by
Sections 23000, 23400 and  23400.1 of the Education  Code, shall
continue to be available for expenditure, and shall be charged  for
any
expenditure  which is not chargeable to an appropriation for support
or other expenses  as provided in this  section. This transfer may be

chargeable to such appropriation for a  previous fiscal year if there

are no funds available from that fiscal year.

   The State Controller may transfer to the State Payroll Revolving
Fund  the contributions  required by Sections 20751, 20752, 20782,
20783, 22825.1, 22828, and  22829 of the  Government Code,
contributions required for payment of the hospital  insurance tax,
and
upon  certification by the Board of Administration of the Public
Employees'  Retirement System as  required by Section 20754 of the
Government Code, may transfer from the  State Payroll  Revolving
Fund to the Public Employees' Retirement Fund and the Old  Age
and Survivors'  Insurance Revolving Fund the amounts of
contributions.

   SEC. 3.60.  (a) Notwithstanding any other provision of law, the
employers' retirement  contributions for the 1997-98 fiscal year,
which are chargeable to an  appropriation made in this  act, with
respect to each state officer and employee who is a member of the
Public Employees'  Retirement System and who is in that
employment or office, including  university members as  provided by
Section 20751 of the Government Code, shall be the  percentage of
salaries and  wages by state member category as follows:

  Miscellaneous, First Tier  . . . 13.106%      Miscellaneous, Second

Tier  . . . 9.345%    State Industrial  . . . 9.260%      State
Safety  . . .
14.656%      Highway Patrol  . . . 15.851%     Peace
Officer/Firefighter  . . . 15.401%

   The Department of Finance may adjust amounts in any
appropriation  item, or in any category  thereof, in this act as a
result
of changes from amounts budgeted for  employer contribution for
1997-98 fiscal year retirement benefits.

   (b) Notwithstanding any other provisions of law, the Department
of  Finance shall require  retirement contributions computed pursuant

to subdivision (a) to be offset  by the State Controller  with
surplus
funds in the Public Employees' Retirement Fund, employer  surplus
asset accounts.

   (c) Notwithstanding any other provision of law, for purposes of
calculating the  "appropriations subject to limitation" as defined in

Section 8 of Article XIII  B of the California  Constitution, the
appropriations in this act shall be deemed to be the  amounts
remaining after the  reductions required by subdivisions (a) and (b)
are made.

   SEC. 4.20.  Notwithstanding any other provision of law, the
employer's  contributions to the  Public Employees' Contingency
Reserve Fund, as required by Section  22826 of the Government
Code, shall be 0.5 percent of the gross health insurance premiums
paid by  the employer and  employee for administrative expenses.


   SEC. 5.25.  (a) Payment of specified attorney's fee claims,
settlements,  compromises, and  judgments arising from actions in
state courts against the state, its officers,  and officers and
employees of state agencies, departments, boards, bureaus, or
commissions, shall be paid from  items of appropriation in this act
that support the state operations of the  affected agency,
department, board, bureau, or commission.

   (b) Expenditures authorized by subdivision (a) shall be made by
the  State Controller, subject  to the approval of the Department of
Finance, and shall be charged to the  fiscal year in which the
disbursement is issued.

   (c) Payments authorized by this section shall be made only for (1)

state  court actions filed  pursuant to Section 1021.5 of the Code of

Civil Procedure, the "private  attorney general"  doctrine, or the
"substantial benefit" doctrine, or for (2) writ of mandate  actions
filed
pursuant to  Section 10962 of the Welfare and Institutions Code.


   (d) No payment shall be made by the State Controller for
expenditures  pursuant to subdivision  (a) except in full and final
satisfaction of the claim, settlement, compromise,  or judgment for
attorney's fees incurred in connection with a single action.

   (e) The Director of Finance shall notify the Chairperson of the
Joint  Legislative Budget  Committee, the Chairperson of the Senate
Committee on Budget and Fiscal  Review, and the  Chairperson of
the Assembly Budget Committee pursuant to Section 27.00  of this
act when there  are insufficient funds appropriated in this act in
support of the state  operations of the affected  agency, department,

board, bureau, or commission to satisfy the claim  completely.

   SEC. 6.00.  No more than $35,000 of the funds appropriated for
support purposes under  Section 2.00 or any other sections of this
act may be encumbered for  preliminary plans, working  drawings, or
construction of any project for the alteration of a state facility
unless
the Director of  Finance determines that the proposed alteration is
critical and that it is  necessary to proceed using  funds
appropriated
for support purposes. The maximum cost of any such  project shall
not exceed  $250,000, and any approved critical project costing more
than $35,000, but  not greater than  $250,000, shall be reported to
the Chairperson of the Joint Legislative  Budget Committee or his  or

her designee, not less than 30 days prior to requesting bids for the
project. The report shall  detail those factors that make the project
so
critical that it must proceed  using support funds.

   SEC. 8.50.  (a) In making appropriations to state agencies that
are  eligible for federal  programs, it is the intent and
understanding
of the Legislature that  applications made by the  agencies for
federal
funds under federal programs shall be for the maximum  amount
allowable  under federal law. Therefore, any amounts received from
the federal  government are hereby  appropriated from federal funds
for expenditure or for transfer to, and  disbursement from, the
State
Treasury fund established for the purpose of receiving the federal
assistance subject to any  provisions of this act that apply to the
expenditure of these funds, including  Section 28.00 of this  act.


   (b) However, if federal funds for block grant programs assumed
by the  state or for any item  receiving federal funds are reduced by

more than 5 percent of the amount  appropriated in this act,  the
Director of Finance shall notify the chairperson of the committee in
each house which  considers appropriations, and the Chairperson of
the Joint Legislative  Budget Committee, in  writing within 30 days
after notification by the federal government that  federal funds have

                                                             been
reduced, and shall include an estimate of the amount of the
available or  anticipated federal funds,  the 1997-98 fiscal year
expenditures of each program affected by the  reduction, the effect
of
reduced funding on service levels authorized by this act, and a plan
of
reduced expenditures for  each program affected by the reduction.
The plan shall be operational on an  interim basis for up to  45 days

pending legislative review, after which time the plan shall become
permanent.

   SEC. 8.51.  Each state agency shall, by certification to the State

Controller, identify the  account within the Federal Trust Fund when
charges are made against any  appropriation made  herein from the
Federal Trust Fund.

   SEC. 9.20.  Notwithstanding Section 15860 of the Government
Code,  the amount of funds  expended for administrative costs
associated with any appropriation  contained in this act for
acquisition of property pursuant to the Property Acquisition Law
shall be  limited to the amount  specified for those costs in the
Supplemental Report of the Budget Act of  1997. Amounts for
administrative costs may be augmented by no more than 5 percent by
the  State Public Works  Board. Notwithstanding the foregoing, any
amounts needed for  administrative costs associated  with acquisition

through the condemnation authority of the State Public  Works
Board shall be  provided through augmentation of the affected
appropriations as  authorized by existing law.

   SEC. 9.30.  In the event that federal courts issue writs of
execution for  the levy of state funds  and such writs are executed,
the State Controller shall so notify the  Department of Finance. The
Department of Finance shall then notify the State Controller of the
specific  appropriation or fund  to be charged. Federal writs of
execution for the levy of state funds may  only be charged against
appropriations or funds having a direct programmatic link to the
circumstances under which the  federal writ was issued. If the
appropriate department or agency no longer  exists, or no linkage
can be identified, the federal writ shall be charged to the
unappropriated  surplus of the General  Fund. In the event that an
appropriation in the act is made deficient by such  a charge, funding

augmentations must follow the regular budget processes including
Section  27.00 of the Budget  Act.  However, the 30-day notification
requirement is waived for payments  mandated by federal  courts.

   SEC. 9.50.  For minor capital outlay projects for which, pursuant
to  Sections 10108 and  10108.5 of the Public Contract Code, the
services of the Department of  General Services are not  required and

a state agency or department is authorized to carry out its  own
project, the amount  of the unencumbered balance of the project shall

be determined in  accordance with Section 14959  of the Government
Code. Upon receipt of bids for the project, an estimate  of any
amount  necessary for the completion of the project, including
supervision,  engineering, and other items, if  any, shall be deemed
a
valid encumbrance and shall be included with any  other valid
encumbrance  in determining the amount of an unencumbered
balance.

   SEC. 11.00.  (a) A state agency to which state funds are
appropriated  by one or more  statutes, including this act, for an
information technology project may not  enter into one or more
contracts, or agree to one or more contract amendments, in the
1997-98  fiscal year that result, in  the aggregate, in an increase
in the
budgeted cost of the project exceeding  five hundred thousand
dollars ($500,000), or 10 percent of the budgeted cost of the
project,
whichever is less, unless the  approval of the Department of Finance
is first obtained and written  notification of that approval is
provided
by the department to the Chairperson of the Joint Legislative  Budget

Committee, and  the chairperson of the budget committee of each
house of the Legislature,  not less than 30 days  prior to the
effective
date of the approval, or not sooner than whatever  lesser time the
chairperson  of the joint committee, or his or her designee, may in
each instance  determine. Each notification  required by this section

shall (1) explain the necessity and rationale for the  proposed
contract or  amendment, (2) identify the cost savings, revenue
increase, or other fiscal  benefit of the proposed  contract or
amendment, and (3) identify the funding source for the  proposed
contract or  amendment.

   (b) Subdivision (a) does not apply to a resulting increase in the
budgeted cost of a project that  is less than one hundred thousand
dollars ($100,000), or that is funded by  an augmentation  authorized

pursuant to Section 26.00 of this act.

   (c) The following definitions apply for the purposes of this
section:

   (1) "Budgeted cost of a project" means the total cost of the
project as  identified in the most  recent feasibility study report,
special project report, or equivalent  document submitted to the
Legislature in connection with its consideration of a bill that
appropriated  any state funding for  that project.

   (2) "State agency" means each agency of the state that is subject
to  both Chapter 7  (commencing with Section 11700) of Part 1 of,
and Article 2 (commencing  with Section 13320)  of Chapter 3 of
Part 3 of, Division 3 of Title 2 of the Government Code.

   SEC. 11.51.  The Director of Finance may allocate funds among
the  Energy and Resources  Fund; the Energy Account, Energy and
Resources Fund; and the Resources  Account, Energy and
Resources Fund.

   SEC. 11.52.  Notwithstanding any other provision of law, the
State  Controller shall transfer to  the General Fund the
unencumbered balance, as of June 30, 1997, from the  following
funds: (a)  State Construction Program Fund; (b) Special Account
for Capital Outlay;  (c) Energy and  Resources Fund; and (d) Capital
Outlay Fund for Public Higher Education.

   SEC. 11.60.  Notwithstanding Article 12 (commencing with
Section  16429.30) of Chapter 2  of Part 2 of Division 4 of Title 2
of
the Government Code, Section 25115  of the Revenue and  Taxation
Code, or any other provision of law, all moneys deposited in the
California Unitary Fund  during the 1997-98 fiscal year and all
expenditures, disbursements, and  transfers from the  California
Unitary Fund shall be budgeted and accounted for at the fund  level.

No expenditure,  disbursement, or transfer shall be made from the
California Unitary Fund  except in accordance  with this act.

   SEC. 11.61.  Notwithstanding Article 12 (commencing with
Section  16429.30) of Chapter 2  of Part 2 of Division 4 of Title 2
of
the Government Code, Section 25115  of the Revenue and  Taxation
Code, or any other provision of law, all moneys deposited in the
California Unitary Fund  during the 1997-98 fiscal year shall be
transferred to the General Fund on a  quarterly basis.

   SEC. 12.00.  For the purposes of Article XIII B of the California
Constitution, there is hereby  established a state "appropriations
limit" of forty-five billion one hundred  twenty-seven million
dollars
($45,127,000,000) for the 1997-98 fiscal year.

   Any judicial action or proceeding to attack, review, set aside,
void, or  annul the  "appropriations limit" for the 1997-98 fiscal
year
shall be commenced  within 45 days of the  effective date of this
act.


   SEC. 12.20.  (a) The Controller shall transfer from the General
Fund to  the Special Deposit  Fund for the 1997-98 fiscal year the
sum of thirty million seven thousand,  four hundred fifty-three
dollars ($30,007,453), which is hereby appropriated to satisfy the
state's  obligation for that fiscal  year, as identified in the
February
14, 1996, Stipulation For Settlement And  Entry of Judgment in  the
cases of Malibu Video Systems v. Brown and Abramovitz v. Wilson,
as  consolidated (Case  Nos. BC101796, BC103453, BC106884, and
BC120571 in the Superior  Court of the County of  Los Angeles), to
make repayments, including interest as specified in the  stipulation,
to
various  special funds as identified in Exhibit A of that
stipulation.
The Controller  shall transfer, upon  order of the Department of
Finance, from those moneys in the Special  Deposit Fund to each
identified special fund, an amount equal to the repayment obligation
for  that special fund for the  1997-98 fiscal year, including an
adjustment for interest, pursuant to the  stipulation.

   SEC. 12.30.  There is hereby appropriated from the General
Fund for  transfer to the Special  Fund for Economic Uncertainties by

the Controller, upon order of the  Director of Finance, an  amount
necessary to bring the balance of this special fund up to the amount
stated in the Final  Change Book for the 1997-98 fiscal year ending
balance in the Special  Fund for Economic  Uncertainties, as of July
1, 1997. The amount so transferred shall be  reduced by the amount
of  excess revenues subject to Section 2 of Article XIII B of the
California  Constitution, as  determined by the Director of Finance.



   SEC. 12.32.  (a) It is the intent of the Legislature that
appropriations  that are subject to  Section 8 of Article XVI of the
California Constitution be designated with  the wording  "Proposition

98." In the event these appropriations are not so designated,  they
may be designated  as such by the Department of Finance where that
designation is consistent  with legislative intent,  within 30 days
after
notification in writing of the proposed designation to  the
chairperson
of the  committee in each house that considers appropriations and the

Chairperson  of the Joint  Legislative Budget Committee, or within a
lesser time that the chairperson  of the joint committee,  or his or
her
designee, determines.

   (b) Pursuant to the Proposition 98 funding requirements
established in  Chapter 2  (commencing with Section 41200) of Part
24 of the Education Code, the  total appropriations for  Proposition
98 for the 1997-98 fiscal year are twenty billion nine hundred
eighty-five million five  hundred thirty-nine thousand dollars
($20,985,539,000), or 41.9 percent of  total General Fund  revenues
and transfers subject to the state appropriations limit. General
Fund
revenues  appropriated for school districts are eighteen billion nine

hundred nineteen  million eight hundred  thirty-seven thousand
dollars ($18,919,837,000), or 37.8 percent of total  General Fund
revenues  and transfers subject to the state appropriations limit.
General Fund  revenues appropriated for  California Community
College districts are one billion seven hundred  seventy-seven
million
five  hundred forty-two thousand dollars ($1,777,542,000), or 3.5
percent of  total General Fund  revenues and transfers subject to the

state appropriations limit. General  Fund revenues  appropriated for
other state agencies that provide direct elementary and  secondary
level  education, as defined in Section 41302.5 of the Education
Code, are  eighty-eight million one  hundred sixty thousand dollars
($88,160,000), or 0.2 percent of total  General Fund revenues and
transfers subject to the state appropriations limit. General Fund
revenues  appropriated for partial  repayment of emergency loans are
two hundred million dollars  ($200,000,000), or 0.4 percent of  total

General Fund revenues and transfers subject to the state
appropriations limit.

   SEC. 13.00.  (a) Notwithstanding any other provision of law,
expenditures under Item  0160-001-0001 of Section 2.00 of this act
or any appropriation in  augmentation of that item shall  be exempt
from Chapter 7 (commencing with Section 11700) of Part 1 of,  and
Article 2  (commencing with Section 13320) of Chapter 3 of Part 3
of, Division 3 of  Title 2 of the  Government Code, Division 2
(commencing with Section 1100) of the  Public Contract Code, and
subdivision (a) of Section 713 of Title 2 of the California Code of
Regulations, and may be  expended as set forth in the Governor's
Budget, or for other purposes,  including expenditures for  the
number of positions in various classifications authorized by the
Joint
Rules Committee.

   (b) Notwithstanding any other provision of law, the
unencumbered  balances as of June 30,  1997, of the appropriations
made by Items 0160-001-0001 and  8840-001-0001 of the Budget
Act  of 1996 are reappropriated and shall be available for
encumbrance until  June 30, 1998, for the  same programs and
purposes for which appropriations for these items have  been made
by this act.

     (c) Notwithstanding any other provision of law, all money that
is  received as payment for the  sale of services or personal
property
by the agency that has not been taken  into consideration in  the
schedule of Item 0160-001-0001 or is in excess of the amount so
taken  into consideration is  to be credited to that item and is
hereby
appropriated in augmentation of  that item for the same  programs
and purposes for which appropriations for that item have been  made
by this act.

   SEC. 14.00.  (a) Notwithstanding any other provision of law, if
the  Director of the  Department of Consumer Affairs determines in
writing that there is  insufficient cash in a special  fund under the

authority of a board, commission, or bureau of the  department to
make one or  more payments currently due and payable, the director
may order the  transfer of moneys to that  special fund, in the
amount
necessary to make the payment or payments, as  a loan from a special
fund under the authority of another board, commission, or bureau of
the  department. That loan  shall be subject to all of the following
conditions:

   (1) No loan from a special fund shall be made that would
interfere with  the carrying out of the  object for which the special

fund was created.

   (2) The loan shall be repaid as soon as there is sufficient money
in
the  recipient fund to repay  the amount loaned, but no later than a
date 18 months after the date of the  loan. Interest on the  loan
shall
be paid from the recipient fund at the rate accruing during the  loan

period to moneys in  the Pooled Money Investment Account.

   (3) The amount loaned shall not exceed the amount that the
appropriate board, commission,  or bureau is statutorily authorized
at
the time of the loan to expend during  the 1997-98 fiscal year  from
the recipient fund.

   (4) The terms and conditions of the loan are approved, prior to
the  transfer of funds, by the  Department of Finance pursuant to
appropriate fiscal standards.

   (b) (1) Notwithstanding any other provision of law, the
Department of  Consumer Affairs,  during the 1997-98 fiscal year,
may order the release of moneys from the  clearing account in the
Consumer Affairs Fund in an amount exceeding the amount
advanced to  the clearing account  from a special fund within the
department, as a loan to make one or more  payments on behalf of
that special fund that are currently due and payable. To the extent
that the  amount of moneys  currently in the clearing account is
insufficient to make the payment or  payments on behalf of that
special fund, the department may transfer additional moneys to the
clearing  account from any  other special fund under the authority of

a board, commission, or bureau of  the department to  include in the
loan. A loan made to a special fund under this subdivision  shall be
subject to all of  the following conditions:

   (A) The loan shall not be made if it would reduce the amount
advanced  to the clearing  account from another special fund, or the
amount contained in that special  fund, as applicable, to  an extent
that would interfere with the carrying out of the object for which
that special fund was  created.

   (B) The loan shall be repaid as soon as there is sufficient money
in  the  recipient fund to repay  the amount loaned, but no later
than a
date 60 days after the date of the  loan.

   (C) The amount loaned shall not exceed the amount that the
appropriate board, commission,  or bureau is statutorily authorized
at
the time of the loan to expend during  the 1997-98 fiscal year  from
the recipient fund.

   (2) For purposes of this subdivision, the "clearing account" in
the
Consumer Affairs Fund is  the account established in that fund,
consisting of moneys advanced from  the various special funds
within the department, from which the Department of Consumer
Affairs  pays operating and other  expenses of each special fund in
an
amount ordinarily not exceeding the  amount advanced from  that
special fund.

   (c) The Director of the Department of Consumer Affairs shall
provide a  report by March 1,  1998, on all loans initiated or
repayments made pursuant to subdivision (a)  or (b) within the
preceding 12-month period to the chairperson of the budget
committee,  and the chairperson of  the appropriate legislative
oversight committee, of each house of the  Legislature.

                              EDUCATION

   SEC. 24.00.  For the 1997-98 fiscal year, the donations and oil
and  mineral revenues from  federal lands that are deposited in the
State School Fund shall be divided  between Section A and  Section
B of the State School Fund, with 85 percent of these revenues to  be
credited to Section A  of the fund exclusively for regular
apportionments for school districts  serving pupils in  kindergarten
or
any of grades 1 to 12, inclusive, and 15 percent to Section  B of the

fund  exclusively for community college district regular
apportionments. The  amounts accruing to the  State School Fund
under this section shall be disbursed fully before any  General Fund
transfers to  Section A or Section B of the State School Fund are
disbursed for regular  apportionments.



   SEC. 24.03.  Notwithstanding any other provision of law, funds
appropriated by Section 2.00,  Section 8.50, Section 28.00, Section
28.50, or any other provision of this  act may not be  expended for
the support of any program, network, or material, with the
exception of instruction  to pupils who are identified as deaf or
hearing impaired pursuant to 34  C.F.R. 300.7(b)  paragraphs (3) and
(4), that (a) promotes or uses reading instruction  methodologies
that
emphasize contextual clues in lieu of fluent decoding, or (b)
systematically  uses or encourages  inventive spelling techniques in
the teaching of writing.

   SEC. 24.10.  (a) Notwithstanding Section 1464 of the Penal
Code or  Section 41304 of the  Education Code, the first one million
and ninety-four thousand dollars  ($1,094,000) received by  the
Driver Training Penalty Assessment Fund for the 1997-98 fiscal year
shall be available for the  purposes of Item 6110-001-0178. The
amount retained by the Driver  Training Penalty  Assessment Fund
for the purposes of Item 6110-001-0178 may be adjusted  by the
Department of  Finance for actions pursuant to any Budget Act
Control Section.

   (b) After moneys are retained in the Driver Training Penalty
Assessment Fund pursuant to  subsection (a), the Controller shall
transfer, on a monthly basis, any balance  in the fund to the  Victim

Witness Assistance Fund, and the Peace Officers' Training Fund,
using ratios of 15.575  percent and 6.240 percent, respectively. Any
remaining unallocated moneys  in the Driver Training  Penalty
Assessment Fund shall be transferred to the General Fund.

   SEC. 24.30.  Notwithstanding any other provision of law, the
Controller, upon order of the  Director of Finance, shall transfer
rental income received in the 1997-98  fiscal year pursuant to
Section 17789 of the Education Code from the State School Building
Aid  Fund to the General  Fund.

   SEC. 24.60.  (a) From the funds appropriated in Items
4300-003-0814,  4440-011-0814,  5460-001-0831, 6110-006-0814,
6110-101-0814, 6440-001-0814,  6600-001-0814, and
6870-101-0814 of this act, the State Department of Developmental
Services, the State  Department of Mental Health, the Department of
the Youth Authority, the  State Special Schools,  the Regents of the
University of California, the Board of Directors of  Hastings College

of the  Law, the Board of Trustees of the California State
University,
and  community college districts  through the Chancellor of the
California Community Colleges shall report  to the Governor and the
Legislature no later than January 15, 1999, the amount of lottery
funds that  each entity received  and the purposes for which those
funds were expended in the 1997-98  fiscal year, including
administrative costs, and proposed expenditures and purposes for
expenditure for the 1998-99  fiscal year. If applicable, the amount
of
lottery funds received on the basis  of adult education  average
daily
attendance (ADA) and the amount of lottery funds expended  for
adult education  also shall be reported.



   (b) The State Department of Education shall conduct a survey of
a  representative sample of  100 local education agencies to
determine the patterns of use of lottery  funds in those agencies.
The
sample shall be drawn to include all local education agencies having
more than 200,000 ADA  and representative local education agencies
randomly selected by size,  range, type, and  geographical
dispersion.
On or before January 15, 1998, the State  Department of Education
shall  report to the Legislature and the Governor the results of the
survey for the  1996-97 fiscal year.

   SEC. 24.70.  From the funds appropriated to the State
Department of  Education for local  assistance, the department shall
ensure that the expenditure of funds  allocated to a local education
agency (LEA), through a contract between the department and the
LEA or  through a grant from  the department to the LEA, shall be
subject to the LEA's fiscal  accountability policies and  procedures.
If
it is necessary for the LEA to establish a separate entity to
complete
the work  scope of the contract or grant, the fiscal accountability
policies and  procedures for that entity shall  be the same as those
of
the LEA, or amended only with the approval of  both the
superintendent of  schools of the LEA and a fiscal representative of
the department designated  by the Superintendent  of Public
Instruction. Further, the department shall have the authority to
provide for an audit of  the expenditures under the contract or grant

between the department and  the LEA to verify  conformance with
appropriate fiscal accountability policies and procedures.  The cost
of
the audit,  if required, shall be charged to the audited contract or
grant.

   SEC. 26.00.  (a) It is the intent of the Legislature, in enacting
this
section, to provide  flexibility for the administrative approval of
intraschedule transfers within  individual items of  appropriation in

those instances where the transfers are necessary for the  efficient
and
cost-effective implementation of the programs, projects, and
functions  funded by this act. No  transfer shall be authorized under

this section to either eliminate any  program, project, or  function,

except when implementation is found to be no longer feasible in
light
of changing  circumstances or new information, or establish any new
program, project,  or function.

   (b) The Director of Finance may, pursuant to a request by the
officer,  department, division,  bureau, board, commission, or other
agency to which an appropriation is  made by this act,  authorize the

augmentation of the amount available for expenditure for  personal
services or  operating expenses and equipment for a program,
project, or function,  which amount is  designated in any schedule
set
forth for that appropriation, by making a  transfer from any of the
other designated programs, projects, or functions within the same
schedule.  No intraschedule  transfer may be made under this section
to fund any capital outlay purpose.  Upon the conclusion  of the
1997-98 fiscal year, the Director of Finance shall furnish the
chairpersons of the committees  in each house of the Legislature that

consider appropriations and the  budget, and the Chairperson  of the
Joint Legislative Budget Committee, with a report on all
authorizations given pursuant to  this section during that fiscal
year.


   (c) Intraschedule transfers of the amounts available for
expenditure for  a program, project, or  function designated in any
line of any schedule set forth for that  appropriation by transfer
from
any of the  other designated programs, projects, or functions within
the  same schedule shall not  exceed, during any fiscal year:

   (1) 20 percent of the amount so scheduled on that line for those
appropriations made by this  act that are $2,000,000 or less.

   (2) $400,000 of the amount so scheduled on that line for those
appropriations made by this  act that are more than $2,000,000 but
equal to or less than $4,000,000.

   (3) 10 percent of the amount so scheduled on that line for those
appropriations made by this  act that are more than $4,000,000.

   (4) The Department of Transportation Highway Program shall be
limited to a schedule change  of 10 percent.

   (d) Any transfer in excess of $200,000 may be authorized
pursuant to  this section not sooner  than 30 days after notification
in
writing of the necessity therefor is  provided to the chairperson of
the committee in each house of the Legislature that considers
appropriations and the Chairperson  of the Joint Legislative Budget
Committee, or not sooner than whatever  lesser time the
Chairperson of the Joint Legislative Budget Committee, or his or her
designee, may in each  instance determine.

   SEC. 27.00.  (a) Approval by the Department of Finance of the
creation of deficiencies  pursuant to Section 11006 of the
Government Code or approval to expend  at rates that, in the
opinion of the Director of Finance, will require a deficiency
appropriation  may be granted only in  cases of actual necessity. It
is
the intent of the Legislature that  authorization for deficiency
spending under this section should be limited to cases of
unanticipated  expenses incurred in the  operation of existing
programs, where it is necessary to incur those  expenses during the
1997-98  fiscal year. No deficiency authorization may be made under
  this section for  any expenditure for  capital outlay.

   (b) The Director of Finance may not approve any deficiency
authorization unless the approval  is made in writing and filed with
the Chairperson of the Joint Legislative  Budget Committee and  the
chairperson of the committee in each house that considers
appropriations not later than 30  days prior to the effective date of

the approval, or not sooner than  whatever lesser time the
chairperson of the joint committee, or his or her designee, may in
each  instance determine, except  for an approval for an emergency
expenditure. "Emergency expenditure,"  for this purpose, means  an
expenditure incurred in response to conditions of disaster or extreme

peril that threaten the  health or safety of persons or property
within
the state. This notification  requirement is not  applicable to
caseload
increases in Medi-Cal, Temporary Assistance for  Needy Families
(TANF),  and Supplemental Security Income/State Supplementary
Program  (SSI/SSP). All notifications  shall include: (1) the date a
deficiency request was received by the  Department of Finance, (2)
the  reason for the proposed deficiency, (3) the approved amount,
and (4) the  basis of the department's  determination that the
expenditure for which the deficiency authorization is  approved is
required  by a case of actual necessity.

   (c) Approval for any emergency expenditure shall be made in
writing  and filed with the  Chairperson of the Joint Legislative
Budget Committee and the chairperson  of the committee in  each
house that considers appropriations not later than 10 days after the
effective date of the  approval. All notices shall state the reason
for
and the amount of the  deficiency, together with the  director's
determination that the expenditure for which the deficiency
authorization is approved  satisfies the criteria for emergency
expenditures set forth in this section,  and the basis for that
determination.

   (d) Each notification of a deficiency or emergency expenditure
shall  include a determination  by the Director of Finance as to
whether the expenditure was proposed  previously at any point in
the Legislature's consideration of the Budget Bill for the 1997-98
fiscal  year and was not  approved and, if the expenditure not
approved, for what reasons.

   (e) The Department of Finance shall provide copies of all
requests from  agencies to spend at  rates that will result in a
deficiency appropriation, in an aggregate amount  for the 1997-98
fiscal  year that exceeds five hundred thousand dollars ($500,000),
to
the  Chairperson of the Joint  Legislative Budget Committee and the
chairperson of the committee in  each house that considers
appropriations. The department shall submit these copies within 10
days of  receipt. The  transmittal of this information to the
Legislature shall not be construed by  the requesting agency  as
approval of the deficiency request.

   (f) The Department of Finance shall provide deficiency bill
updates to  the Chairperson of the  Joint Legislative Budget
Committee and the chairperson of the committee  in each house that
considers appropriations if requested by the Legislature or as deemed

necessary by the  Department of Finance.

   SEC. 28.00.  (a) It is the intent of the Legislature in enacting
this
section to provide flexibility  for administrative approval of
augmentations for the expenditure of  unanticipated federal funds or
other nonstate funds in cases that meet the criteria set forth in
this
section.  However, this section  is not intended to provide an
alternative budget process, and proposals for  additional spending
ordinarily should be considered in the annual state budget or other
state  legislation.

   (b) The Director of Finance may authorize the augmentation of
the  amount available for  expenditure for any program, project, or
function in the schedule set forth  for any appropriation in  this
act or
any additional program, project, or function in the amount of  any
additional,  unanticipated funds that he or she estimates will be
received by the state  during the 1997-98 fiscal  year from any
agency
of  local government or the federal government, or  from any other
nonstate  source, provided that the additional funding meets all of
the
following  requirements:

   (1) The funds will be expended for a purpose that is consistent
with  state law.

   (2) The funds are made available to the state under conditions
permitting their use only for a  specified purpose, and the
additional
expenditure proposed under this  section would apply to that
specified funding purpose.

   (3) Acceptance of the additional funding does not impose on the
state  any requirement to  commit or expend new state funds for any
program or purpose.

   (4) The need exists to expend the additional funding during the
1997-98 fiscal year.

   (c) The Director of Finance also may reduce any program,
project, or  function whenever he or  she determines that funds to be

received will be less than the amount taken  into consideration in
the
schedule.

   (d) Any augmentation or reduction that exceeds either (1) two
hundred  thousand dollars  ($200,000) or (2) 10 percent of the
amount available for expenditure in the  affected program,  project,
or function may be authorized not sooner than 30 days after
notification in writing of the  necessity therefor to the chairperson
of
the committee in each house of the  Legislature that  considers
appropriations, the chairpersons of the committees, and the
appropriate subcommittees,  in each house that consider the state
budget, and the Chairperson of the  Joint Legislative Budget
Committee, or not sooner than whatever lesser time the Chairperson
of the  Joint Legislative  Budget Committee, or his or her designee,
may in each instance determine.  With regard to any  proposed
augmentation, the notification shall state the basis for the
determination by the Director  of Finance that the augmentation
meets each of the requirements set forth  in subdivision (b). This
notification requirement does not apply to federal funds related to
caseload  increases in Medi-Cal  and Supplemental Security
Income/State Supplementary Program  (SSI/SSP).

   (e)  Any personnel action that is dependent on funds subject to
this  section shall not be  effective until after the provisions of
this
section have been complied with.  Any authorization  made pursuant
to this section shall remain in effect for the period the  director
may
determine in  each instance, but in no event after June 30, 1998.


   SEC. 28.50.  Except as otherwise provided by law, an officer,
department, division, bureau,  or other agency of the state may
expend for the 1997-98 fiscal year all  money received as
reimbursement from another officer, department, division, bureau, or
other  agency of the state  that has not been taken into
consideration
by this act or any other statute,  upon the prior written  approval
of
the Director of Finance. For any expenditure of  reimbursements for
the 1997-98 fiscal  year that exceed two hundred thousand dollars
($200,000), the Director of  Finance shall provide  notification in
writing of any approval granted under this section, not less  than 30

days prior to  the effective date of that approval, to the
chairperson
of the committee in  each house of the  Legislature that considers
appropriations, the chairpersons of the  committees and the
appropriate  subcommittees in each house of the Legislature that
consider the state  budget, and the  Chairperson of the Joint
Legislative Budget Committee, or not sooner than  whatever lesser
time  the Chairperson of the Joint Legislative Budget Committee, or
his or her  designee, may in each  instance determine.

   SEC. 29.00.  The Department of Finance shall calculate and
publish a  listing of total  personnel-years and estimated salary
savings for each department and  agency. These listings shall  be
published by the Department of Finance at the same time as the
publication of (a) the  Governor's Budget, (b) the May Revision and
(c) the Final Change Book.

   (a) The listing provided at the time of the publication of the
Governor's  Budget shall contain  estimates of personnel-years for
the prior year, current year, and budget  year.

   (b) The listing provided at the time of publication of the May
revision  shall contain estimates  of personnel-years proposed for
the
budget year.

   (c) The listing provided at the time of the publication of the
Final
Change Book shall contain  estimates of personnel-years for the
budget year just enacted.

   SEC. 30.00.  Section 13340 of the Government Code is amended
to  read:

   13340.  (a) Except as provided in subdivision (b), on and after
July 1,  1998, no moneys in that  fund that, by any statute other
than
a Budget Act, is continuously  appropriated without regard to  fiscal

years, may be encumbered unless the Legislature, by statute,
specifies
that the moneys in the  fund are appropriated for encumbrance.

   (b) Subdivision (a) does not apply to any of the following:

   (1) The scheduled disbursement of any local sales and use tax
proceeds  to an entity of local  government pursuant to Part 1.5
(commencing with Section 7200) of  Division 2 of the Revenue  and
Taxation Code.

   (2) The scheduled disbursement of any transactions and use tax
proceeds to an entity of local  government pursuant to Part 1.6
(commencing with Section 7251) of  Division 2 of the Revenue  and
Taxation Code.

   (3) The scheduled disbursement of any funds by a state or local
agency  or department that  issues bonds and administers related
programs for which funds are  continuously appropriated as  of June
30, 1998.

   (4) Moneys that are deposited in proprietary or fiduciary funds of

the  California State  University and that are continuously
appropriated without regard to fiscal  years.

   SEC. 31.00.  (a) The appropriations made by this act shall be
subject,  unless otherwise  provided by law, to Section 13320 of, and

Article 2.5 (commencing with  Section 13332) of  Chapter 3 of Part
3 of Division 3 of Title 2 of, the Government Code,  requiring
expenditures to  be made in accordance with the allotments and other
provisions of fiscal  year budgets approved  by the Department of
Finance.

   (b) The fiscal year budget shall authorize, in the manner that the

Department of Finance shall  prescribe, all established positions
whose continuance for the year is  approved and all new  positions.
No new position shall be established unless authorized by the
Department of Finance on  the basis of work program and
organization.



   (c) The Director of Finance, or his or her authorized designee,
shall  notify the Chairperson of  the Joint Legislative Budget
Committee within 30 days of authorizing any  position not authorized
for that fiscal year by the Legislature or any reclassification to a
position  with a minimum step per  month of five thousand two
hundred eighty-three dollars ($5,283) as of  July 1, 1997. He or she
also shall report all transfers to blanket authorizations and the
establishment of any permanent  positions out of a blanket
authorization.

   (d) All positions administratively established pursuant to this
section  during the 1997-98 fiscal  year shall terminate on June 30,
1998, except for those positions that have  been (a) included in the
Governor's Budget for the 1998-99 fiscal year as proposed new
positions,  or (b) approved by the  Department of Finance and
reported to the Legislature after the 1998-99  Governor's Budget
submission to the Legislature. The positions identified in (a) and
(b)
above  may be reestablished  by the Department of Finance during
the 1998-99 fiscal year, provided  these positions are shown  in the
Governor's Budget for the 1999-00 fiscal year as submitted to the
Legislature, or in  subsequent Department of Finance letters to the
Legislature, and provided  that these positions do  not result in the

establishment of positions deleted by the Legislature  through the
budget process  for the 1998-99 fiscal year.

   (e) No money in any 1997-98 fiscal year appropriation not
appropriated  for that purpose may  be expended for increases in
salary ranges or any other employee  compensation action unless the
Department of Finance certifies to the salary and other
compensation-setting authority, prior to  the adoption of the action,

that funds are available to pay the increased  salary or employee
compensation resulting from the action. Prior to certification, the
Department of Finance shall  determine whether the increase in salary

range or employee compensation  action will require  supplemental
funding in the 1998-99 fiscal year. If the Department of  Finance
determines that  supplemental funding will be required, no
certification shall be issued unless  notification in writing  is
given by
the Department of Finance, at least 30 days before certification  is
made, to the  chairperson of the committee in each house that
considers appropriations  and the Chairperson of  the Joint
Legislative Budget Committee, or a lesser time which the
chairperson of the joint  committee, or his or her designee,
determines.

   (f) A certification on a payroll claim that expenditures therein
are
in  accordance with current  budgetary provisions as approved by the
Department of Finance shall be  sufficient evidence to the
Controller
that these expenditures comply with the provisions of this  section.



   SEC. 32.00.  The officers of the various departments, boards,
commissions, and institutions,  for whose benefit and support
appropriations are made in this act, are  expressly forbidden to make

any expenditures in excess of these appropriations unless the consent

of the  Department of  Finance is first obtained, and a certificate
in
writing is duly signed by the  director of the  department seeking
authority for the expenditure, certifying the  unavoidable necessity
of
the  expenditure. Any indebtedness attempted to be created against
the state in  violation of this section  shall be null and void, and
shall
not be allowed by the Controller nor paid  out of any state
appropriation. Any member of a department, board, commission, or
institution who shall vote for  any expenditure, or create any
indebtedness against the state in excess of  the respective
appropriations made by this act, unless the consent of the
Department of  Finance and the  director's signature on the
certificate, as required by this section, are first  obtained, shall
be
liable  both personally and on his or her official bond for the
amount
of the  indebtedness, to be recovered  in any court of competent
jurisdiction by the person or persons, firm, or  corporation to which

the  indebtedness is owing.

   SEC. 33.00.  If any item of appropriation in this act is vetoed,
eliminated, or reduced by the  Governor under Section 10 of Article
IV of the California Constitution,  while approving portions  of this

act, such veto, elimination, or reduction shall not affect the other
portions of this act, and  these other portions of this act, so
approved, shall have the same effect in  law as if any vetoed or
eliminated items of appropriation had not been present in this act,
and as if  any reduced item of  appropriation had not been reduced.



   SEC. 34.00.  If any portion of this act is held unconstitutional,
such  decision shall not affect  the validity of any other portion of
this
act. The Legislature hereby declares  that it would have  passed this

act, and each portion thereof, irrespective of the fact that any
other
portion be  declared unconstitutional.

   SEC. 35.00.  This act, inasmuch as it provides for an
appropriation for  the usual current  expenses of the state, shall,
under the provisions of Section 8 of Article IV  of the California
Constitution, take effect immediately.

   SEC. 36.00.  This act is an urgency statute necessary for the
immediate  preservation of the  public peace, health, or safety
within
the meaning of Article IV of the  California Constitution and  shall
go
into immediate effect. The facts constituting the necessity are:


   This act makes appropriations and contains related provisions for
support of state and local  government for the 1997-98 fiscal year
and provides for capital outlay  appropriations, in  continuation of
existing programs and to promote and sustain the economy  of the
state. It is  imperative that these appropriations be available for
expenditure  commencing not later than July  1, 1997. It is therefore

necessary that this act go into immediate effect.

            INDEX BY BUDGET TITLE

   SEC. 99.00.  The following provides an index to the
appropriations and  related provisions of  this act, by organization
in
alphabetical order, with the code number of the  affected
organization.  The organization code is the first four numbers of any

item number in this  act. For ease of  reference, the appropriation
items in this act are organized in numerical  order, and all of the
appropriation items for any one organization are adjacent to one
another.

Department                                     Organization Code

                              "A"

Academic Content and Performance Standards, Commission for the
Establishment of  . . . 6115
Accountancy, Board of  . . . 1120  Acupuncture Examining
Committee  . . . 1400
Administrative Law, Office of  . . . 8910
Aging, Commission on  . . . 4180
Aging, Department of  . . . 4170
Agricultural Labor Relations Board  . . . 8300
Air Resources Board, State  . . . 3900
Alcohol and Drug Programs, State Department of  . . . 4200
Alcoholic Beverage Control, Department of  . . . 2100
Alcoholic Beverage Control Appeals Board  . . . 2120
Alternative Energy and Advanced Transportation Financing
Authority,  California  . . . 0971
Architectural Examiners, State Board of  . . . 1130
Arts Council, California  . . . 8260  Assembly  . . . 0120
Athletic Commission, State  . . . 1140
Audits, Bureau of State  . . . 8855
Augmentation for Contingencies or Emergencies  . . . 9840

                              "B"

Banking Department, State  . . . 2140
Barbering and Cosmetology, State Board of  . . . 1165
Behavioral Science Examiners, Board of  . . . 1170
Boards.  See subject (e.g., Air Resources, Control, etc.)
Boating and Waterways, Department of  . . . 3680
Business, Transportation and Housing Agency, Secretary of the  . . .

0520

                              "C"

California Tahoe Conservancy  . . . 3125
Child Development and Education, Secretary of  . . . 0558
Child Development Programs Advisory Committee  . . . 4220
Chiropractic Examiners, State Board of  . . . 8500
Citizens Compensation Commission, California  . . . 8385
Coachella Valley Mountains Conservancy  . . . 3850
Coastal Commission, California  . . . 3720
Coastal Conservancy, State  . . . 3760
Colorado River Board of California  . . . 3460
Commerce (see Trade and Commerce Agency, 2920)
Community Colleges, Board of Governors of the California  . . .
6870
Community Services and Development, Department of  . . . 4700
Conservation, Department of  . . . 3480
Conservation Corps, California  . . . 3340
Consumer Affairs-Bureaus, Programs and Divisions, Department of
. . .  1111
Consumer Affairs-Regulatory Boards, Department of  . . . 1120-1600
Contractors State License Board  . . . 1230
Contributions to.  See subject (e.g., Judges' Retirement, Teachers'
Retirement, etc.)
Control, Board of  . . . 8700
Controller, State  . . . 0840
Corporations, Department of  . . . 2180
Corrections, Board of  . . . 5430
Corrections, Department of  . . . 5240
Councils.  See subject (e.g., Arts, etc.)
Court Reporters Board of California  . . . 1520
Criminal Justice Planning, Office of  . . . 8100

                              "D"

Debt and Investment Advisory Commission, California  . . . 0956
Debt Limit Allocation Committee, California  . . . 0959
Delta Protection Commission  . . . 3840
Dental Examiners of California, Board of  . . . 1260-1270
Dentistry, Board of  . . . 1260
Department of.  See subject (e.g., Corrections, Food and
Agriculture, etc.)
Developmental Disabilities, Area Boards on  . . . 4110
Developmental Disabilities, State Council on  . . . 4100
Developmental Services, State Department of  . . . 4300

                              "E"

Education, State Department of  . . . 6110
Emergency Medical Services Authority  . . . 4120
Emergency Services, Office of  . . . 0690
Employee Compensation, Augmentation for  . . . 9800
Employment Development Department  . . . 5100
Energy Resources Conservation and Development Commission,
State  . . .  3360
Environmental Health Hazard Assessment, Office of  . . . 3980
Environmental Protection, Secretary for  . . . 0555
Equalization, State Board of  . . . 0860
Equity Claims of Board of Control and Settlements and Judgments
by Department of Justice  . . . 9670
Exposition and State Fair, California  . . . 8560

                              "F"

Fair Employment and Housing Commission  . . . 1705
Fair Employment and Housing, Department of  . . . 1700
Fair Political Practices Commission  . . . 8620
Finance, Department of  . . . 8860
Financial Institutions, Department of  . . . 2150
Fish and Game, Department of  . . . 3600
Food and Agriculture, Department of  . . . 8570
Forestry and Fire Protection, Department of  . . . 3540
Franchise Tax Board  . . . 1730

                              "G"

General Services, Department of  . . . 1760
Geologists and Geophysicists, State Board of Registration for  . . .

1340
Governor's Office  . . . 0500
Guide Dogs for the Blind, State Board of  . . . 1350

                              "H"

Hastings College of the Law  . . . 6600
Health and Welfare Agency, Secretary of the  . . . 0530
Health and Welfare Agency Data Center  . . . 4130
Health and Dental Benefits for Annuitants  . . . 9650
Health Services, State Department of  . . . 4260
Hearing Aid Dispensers Examining Committee  . . . 1410
Highway Patrol, Department of the California  . . . 2720
Homicide Trials, Payments to Counties for Costs of  . . . 8180
Horse Racing Board, California  . . . 8550
Housing and Community Development, Department of  . . . 2240

                              "I"

Independent Living Council, State  . . . 5170
Industrial Development Financing Advisory Commission, California
. . .  0965
Industrial Relations, Department of  . . . 8350
Information Technology, Department of  . . . 0505
Institutions (See Department of Corrections, State Department of
Health,  etc.)   Insurance, Department of  . . . 0845
Integrated Waste Management Board, California  . . . 3910
Interest Payments to the Federal Government  . . . 9625

                              "J"

Judges' Retirement Fund, Contributions to  . . . 0390
Judicial Performance, Commission on  . . . 0280
Judiciary  . . . 0250
Justice, Department of  . . . 0820

                              "L"

Lands Commission, State  . . . 3560
Landscape Architects, Board of  . . . 1370
Law Revision Commission, California  . . . 8830
Legislative Analyst, Office of the  . . . 0130
Legislative Counsel Bureau  . . . 0160
Legislature (See Assembly, Senate, or Joint Expenses)   Library,
California State  . . . 6120
Lieutenant Governor, Office of the  . . . 0750
Local Government Financing  . . . 9210

                              "M"

Managed Risk Medical Insurance Board  . . . 4280
Medical Assistance Commission, California  . . . 4270
Medical Board of California  . . . 1390-1460
Memberships in Interstate Organizations  . . . 8800
Mental Health, State Department of  . . . 4440
Military Department  . . . 8940
Milton Marks "Little Hoover" Commission on California State
Government   Organization and Economy  . . . 8780
Motor Vehicles, Department of  . . . 2740

                              "N"

Native American Heritage Commission  . . . 8280
Nursing Home Administrators, State Board of  . . . 1470

                              "O"

Occupational Information Coordinating Committee, California  . . .
6330
Office of.  See subject (e.g., Emergency Services, Planning and
Research, etc.)
Optometry, State Board of  . . . 1480
Osteopathic Medical Board of California  . . . 8510

                              "P"

Parks and Recreation, Department of  . . . 3790
Payment of Interest on General Fund Loans  . . . 9620
Peace Officer Standards and Training, Commission on  . . . 8120
Personnel Administration, Department of  . . . 8380
Personnel Board, State  . . . 1880
Pesticide Regulation, Department of  . . . 3930
Pharmacy, California State Board of  . . . 1490
Physical Therapy Examining Committee  . . . 1420
Physician's Assistant Examining Committee  . . . 1430
Pilot Commissioners for the Bays of San Francisco, San Pablo
and Suisun, Board of  . . . 8530
Planning and Research, Office of  . . . 0650
Podiatry Examining Committee  . . . 1440
Political Reform Act of 1974  . . . 8640
Postsecondary Education Commission, California  . . . 6420
Prison Terms, Board of  . . . 5440
Private Postsecondary and Vocational Education, Council for  . . .
6880
Professional Engineers and Land Surveyors, State Board of
Registration  for  . . . 1500
Psychiatric Technician Program, Board of Vocational Nurse  . . .
1600
Psychology, Board of   . . . 1450
Public Defender, State  . . . 8140
Public Employees' Retirement System  . . . 1900
Public Employment Relations Board  . . . 8320
Public Utilities Commission  . . . 8660

                              "R"

Real Estate Appraisers, Office of  . . . 2310
Real Estate, Department of  . . . 2320
Registered Nursing, Board of  . . . 1510
Rehabilitation, Department of  . . . 5160
Resources Agency, Secretary of the  . . . 0540
Resources Programs, Special  . . . 3110
Respiratory Care Examining Committee  . . . 1455

                              "S"

San Francisco Bay Conservation and Development Commission  . . .
                              3820
San Joaquin River Conservancy  . . . 3830
Santa Monica Mountains Conservancy  . . . 3810
Savings and Loan, Department of  . . . 2340
Science Center, California  . . . 1100
Secretary of State  . . . 0890
Seismic Safety Commission  . . . 3580
Senate  . . . 0110
Social Services, State Department of  . . . 5180
Special Environmental Programs  . . . 3985
Special Resources Programs  . . . 3110
Special Transportation Programs  . . . 2640
Speech Pathology and Audiology Examining Committee  . . . 1460
State. See subject (e.g., Controller, Treasurer, etc.)
State and Consumer Services, Secretary for  . . . 0510
State Mandates, Commission on  . . . 8885
Statewide Health Planning and Development, Office of  . . . 4140
Status of Women, Commission on the  . . . 8820
Stephen P. Teale Data Center  . . . 2780
Structural Pest Control Board  . . . 1530
Student Aid Commission  . . . 7980
Summer School for the Arts, California State  . . . 6255

                              "T"

Tax Credit Allocation Committee, California  . . . 0968
Tax Relief  . . . 9100
Teacher Credentialing, Commission on  . . . 6360
Teachers' Retirement System, State  . . . 1920
Toxic Substances Control, Department of  . . . 3960
Trade and Commerce Agency, California  . . . 2920
Traffic Safety, Office of  . . . 2700
Transportation, Department of  . . . 2660
Transportation Commission, California  . . . 2600
Transportation Programs, Special  . . . 2640
Treasurer, State  . . . 0950
Trial Court Funding, State  . . . 0450

                              "U"

Unallocated Capital Outlay  . . . 9860
Uniform State Laws, California Commission on  . . . 8840
University, California State  . . . 6610
University of California  . . . 6440

                              "V"

Veterans Affairs, Department of  . . . 8955
Veterans' Home of California-Yountville  . . . 8960
Veterans' Home of California-Barstow  . . . 8965
Veterinary Medicine, Board of Examiners in  . . . 1560-1570
Violent Offender Incarceration and Truth in Sentencing (Federal
Crime Bill  Program)  . . . 5991
Vocational Nurse and Psychiatric Technician Examiners, Board of  . .

.  1590-1600

                              "W"

Water Resources, Department of  . . . 3860
Water Resources Control Board, State  . . . 3940
Wildlife Conservation Board  . . . 3640
Workers' Compensation Benefits for Subsequent Injuries  . . . 8450
Workers' Compensation Benefits for Disaster Service Workers  . . .
8460
World Trade Commission (see Trade and Commerce Agency, 2920)


                              "Y"

Youth and Adult Correctional Agency, Secretary of the  . . . 0550
Youth Authority, Department of the  . . . 5460
Youthful Offender Parole Board  . . . 5450


            INDEX FOR CONTROL SECTIONS

   SEC. 99.50.  The following is an index to the general sections of
this  act. These sections serve  to define terms and identify
restrictions concerning the appropriations  contained in this act.


1.00       Budget Act Citation
1.50       Intent and Format
2.00       Availability of Appropriations
3.00       Defines purposes of Appropriations
3.50       Benefit Charges against Salaries and Wages
3.60       Contribution to Public Employees' Retirement Benefits
4.20       Contribution to Public Employees' Contingency Reserve

                 Fund
5.25       Attorneys' Fees
6.00       Project alterations limits
8.50       Federal Funds Receipts
8.51       Federal Funds Accounts
9.20       Administrative Costs associated with the acquisition of

                property
9.30       Federal Levy of State Funds
9.50       Minor Capital Outlay Projects
11.00       EDP/Information Technology Reporting Requirements
11.51       Energy-related Fund Transfers
11.52       Transfer of Unencumbered Balance of Various Funds to
                  the  General Fund
11.60       Accounting of, and Allocations from, California Unitary

                  Fund
11.61       Unitary Fund Transfer
12.00       State Appropriations Limit (SAL)
12.20       Loans to Special Funds for Litigation
12.30       Special Fund for Economic Uncertainties
12.32       Proposition 98 Funding Guarantee
13.00       Legislative Counsel Bureau
14.00       Special fund loans between boards of the Department of

                  Consumer Affairs
16.01       Abortion Restrictions on Disciplined Providers
24.00       State School Fund Allocations
24.03       Reading Control
24.10       Transfer Surplus of Driver Training Penalty Assessment
Fund to  the General Fund
24.30       Transfer School Building Rental Income to the General
Fund
24.60       Report of Lottery Funds Received
24.70       Local Educational Agency Fiscal Accountability
26.00       Intraschedule Transfers
27.00       Deficiency Reporting Requirements
28.00       Program Change Notification
28.50       Agency Reimbursement Payments
29.00       Personnel-Year Estimates of Governor's Budget, May
Revision  and Final Change Book
30.00       Continuous Appropriations
31.00       Budget Act Administrative Procedures for Salaries and
Wages
32.00       Prohibits Excess Expenditures
33.00       Item Veto Severability
34.00       Constitutional Severability
35.00       Provides that Budget Act is for Usual and Current
Expenses
36.00       Urgency Clause
99.00       Alphabetical Organization Index
99.50       Numerical Control Section Index