BILL NUMBER: SB 742 CHAPTERED 07/30/01 CHAPTER 118 FILED WITH SECRETARY OF STATE JULY 30, 2001 APPROVED BY GOVERNOR JULY 28, 2001 PASSED THE SENATE JULY 21, 2001 PASSED THE ASSEMBLY JULY 19, 2001 AMENDED IN ASSEMBLY JULY 19, 2001 AMENDED IN ASSEMBLY JUNE 28, 2001 AMENDED IN ASSEMBLY JUNE 27, 2001 INTRODUCED BY Senator Escutia (Coauthors: Senators Alarcon, Chesbro, Figueroa, Kuehl, and Ortiz) (Coauthors: Assembly Members Aroner, Longville, Migden, Shelley, Washington, and Wiggins) FEBRUARY 23, 2001 An act to add Section 25608.3 to the Corporations Code, to amend Sections 8277.5 and 8277.6 of the Education Code, to add Section 58750 to the Food and Agricultural Code, to amend Sections 15399.21, 75003, 75102, 75103, 75502, 75600.5, 75601, and 75602 of, to add Sections 1156.1 and 68203.1 to, and to add and repeal Section 14612 of, the Government Code, to amend Section 17021 of the Health and Safety Code, to amend Section 1012.3 of the Military and Veterans Code, and to amend Sections 270, 274, 275, 276, 277, 278, 279, and 280 of the Public Utilities Code, relating to fiscal affairs, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 742, Escutia. Fiscal affairs. (1) Existing law, the Corporate Securities Law of 1968, requires the Commissioner of Corporations to charge and collect specified fees in connection with securities-related actions and requires that those fees be credited to the State Corporations Fund. This bill would require the commissioner to set those fees for the 2002-03 and subsequent fiscal years in accordance with specified requirements. The bill would require the Department of Corporations to report to the Chair of the Joint Legislative Budget Committee and the Chairs of the Senate Committee on Budget and Fiscal Review and the Assembly Committee on Budget on the fees to be reduced and the projected revenue and fund balance impact on the State Corporations Fund. (2) Existing law establishes the Child Care and Development Services Loan Guaranty Fund and the Child Care and Development Facilities Direct Loan Fund in the State Treasury which are continuously appropriated funds, to be used for the purpose of guaranteeing and making loans for the purchase, development, construction, expansion, or improvement of licensed child care and development facilities. Existing law prohibits a direct loan from exceeding 50% of the total amount of investment for the purchase, development, expansion, or improvement of eligible child care and development facilities and prohibits the term of a direct loan from exceeding 20 years. Existing law requires the interest rate for a direct loan to be set at the time of application, fixed for the term of the loan, and set at a rate equivalent to the Surplus Money Investment Fund rate in effect on December 31 of the preceding year. This bill would instead prohibit a loan from exceeding 75% of the total amount of investment and from exceeding 30 years. The bill would require a direct loan to bear simple interest at the rate of 3% per annum on the unpaid principal balance. The bill would authorize the Department of Housing and Community Development to permit a loan to be assumed by an otherwise qualified borrower who agrees to continue to provide child care for the balance of the original term of the loan. (2.5) Existing law establishes various commissions and programs promoting various agricultural products produced in the state. This bill would authorize the Secretary of Food and Agriculture to enter into a marketing agreement, as specified promoting the Buy California Program. This bill would require the department to report to the Legislature on January 1, 2002, regarding expenditures and progress of the program. The bill would create the continuously appropriated Buy California Account in the Food and Agriculture Fund for that purpose. (3) Existing law requires the Department of Housing and Community Development to adopt regulations for serving family day care homes that serve more than 6 children efficiently and effectively, including making loans available from the Child Care and Development Facilities Direct Loan Fund to local microenterprise loan funds and other lenders who reloan the funds to eligible family day care home providers and authorizing guarantees of small loans by local microenterprise loan funds and other lenders serving family day care home providers. This bill would require the department to adopt regulations for serving family day care homes that serve up to 35 children and for licensed child care and development facilities. The bill would prohibit loans made by local microenterprise loan funds from being made for less than $5,000 and from exceeding $50,000. The bill would make only licensed small family day care homes eligible for loans from funds made available to local microenterprise loan funds and other lenders and for guarantees of small loans made by those loan funds and lenders. (4) Existing law includes family day care homes serving more than 6 children within the facilities eligible for the loan guaranty and the direct loan programs. This bill would instead include licensed large and small family day care homes within those eligible for those programs. (5) Existing law, the Administrative Procedure Act, establishes basic minimum procedural requirements for the adoption, amendment, or repeal of administrative regulations. This bill would, notwithstanding any other provision of law, authorize the Department of Housing and Community Development to implement, interpret, and make specific the changes made by this act, described in (2), (3), and (4) above, through guidelines that would be exempt from the requirements of the Administrative Procedure Act. (6) Existing law authorizes state officers and employees who are eligible to participate in a flexible benefits program, to elect to receive one or more benefits that would qualify to be excluded from gross income in lieu of a portion of his or her salary. Existing law establishes the Flexelect Benefit Fund as a continuously appropriated fund to implement the flexible benefits program and to pay the related administrative costs. This bill would authorize any eligible employee, as defined, to elect to participate in the State Employees' Pretax Parking Payroll Deduction Program, which would be administered by the Department of Personnel Administration. The bill would require that an amount equivalent to the value of the parking be excluded from the gross income of the employee, in lieu of a portion of the employee's compensation, and be transmitted to the State Employees' Pretax Parking Fund that would be established by the bill as a continuously appropriated fund. The fund would be used for the purposes of implementing the State Employees' Pretax Parking Payroll Deduction Program. (7) Existing law requires the Department of General Services to commit itself to 2 specified categories of services by July 1, 1998, and sets forth the conditions pursuant to which the director of the department, notwithstanding existing statutes and regulations, is required or authorized, among other things, to transfer funds, provide relief from accountability for debts, procure goods from the private sector even though the goods may be available through the Prison Industry Authority, certify funds for the payment of specified legal settlements and tort claims, and approve specified departmental forms in lieu of the Director of Finance. Existing law also exempts state agencies from using the Office of State Publishing for their printing needs. Existing law provides that these provisions become inoperative on the effective date of the Budget Act of 2001, or June 30, 2001, whichever occurs first. This bill would codify these provisions and also require state agencies, when soliciting bids for printing services from the private sector, to solicit a bid from the Office of State Publishing when the project is anticipated to cost more than $5,000. The bill would provide that these provisions shall remain operative only until the effective date of the Budget Act of 2002, or June 30, 2002, whichever occurs later, and as of January 1, 2003, are repealed. (8) Existing law requires the Technology, Trade, and Commerce Agency to conduct a program to make loans and grants to persons to upgrade, replace, or remove petroleum underground storage tanks to meet applicable local, state, or federal standards or to take corrective actions. Existing law provides that these provisions are repealed as of January 1, 2002. This bill would extend the operation of these provisions to January 1, 2004, when they would be repealed. (9) Existing law sets the salaries of the Chief Justice of California, the Associate Justices of the Supreme Court, the presiding and associate justices of the courts of appeal, and judges of the superior court, and provides for various percentage increases in those salaries. Under the California Rules of Court, the Chief Justice is the Chair of the Judicial Council. Under the California Constitution, laws that set the salaries of elected state officers are appropriations. This bill would, in addition to the above provisions, provide operative January 2, 2002, the salary of the position of Chair of the Judicial Council and the position of a presiding judge of a superior court which has 15 or more judges, and the positions of the administrative presiding justices of the appellate courts, shall be increased by that amount which is produced by multiplying the salary of each of these judicial offices by 4%; and that the salary for the position of a presiding judge of a superior court, which has 4 to 14 judges, shall be increased by that amount which is produced by multiplying the salary of this judicial office by 2%; but that a judge or justice who no longer serves in the position of an administrative presiding justice or a presiding judge of a superior court shall receive only the salary in effect for judges or justices of his or her court. The bill would also specify that these increases not be counted for specified provisions relating to contributions and computations under the Judges Retirement Law or the Judges' Retirement System II Law. The bill would make an appropriation by increasing the salaries of elected state officers. (10) The Employee Housing Act generally reserves to local jurisdictions specified planning and zoning requirements that include, among other things, the source of water supply and method of sewage disposal. However, this law specifies certain processing requirements with respect to a building permit, grading permit, or other approval from a city or county building department for the rehabilitation of real property improvements that are or will be employee housing for agricultural employees, or from a city or county health department for the operation, construction, or repair of a water system or waste disposal system servicing employee housing for agricultural employees. If a local building or health department does not respond to an application or permit request within 60 calendar days, the Department of Housing and Community Development may approve the application or permit request if it determines that the plans are consistent with all applicable building codes and health and safety requirements. This bill would authorize the Department of Housing and Community Development to recover any costs, up to a specified amount, incurred in approving an application or permit request under circumstances where a local building or health department did not timely respond to the application or permit request. (11) Existing law establishes the Veterans' Home of California, Yountville. Existing law establishes the total individual member's fees and charges based on the level of care. Existing law provides that for residential care a member's fees and charges for any fiscal year shall not be greater than 55% of the member's annual income, or $1,200 per month, whichever is less. This bill would instead provide, for residential care, the total of the member's fees and charges for any fiscal year shall not be greater than 471/2% of the member's annual income, or $1,200 per month, whichever is less. (12) Existing law, under the Public Utilities Act, creates 6 advisory boards to advise the Public Utilities Commission regarding the implementation, development, and administration of specified telecommunications programs, and to carry out the programs pursuant to the commission's direction, control, and approval. Existing law creates a fund in the State Treasury for each advisory board, and requires the commission, on or before July 1, 2000, to report to the Governor and the Legislature regarding a transition plan for programs associated with those funds. Existing law prohibits the appropriation, transfer, or diversion from each fund to any other fund or entity. This bill would provide that short-term loans between the funds may be authorized in the annual Budget Act. The bill would delete the provision requiring the commission to report to the Governor and the Legislature regarding a transition plan for programs associated with those funds. (13) Existing law requires the Public Utilities Commission to conduct financial audits of the revenues for each of the funds, and to conduct compliance audits with regard to each program, as specified, with the first 3-year period for a financial and compliance audit commencing on January 1, 2000. This bill would require the first 3-year period for a financial and compliance audit to commence on July 1, 2002. (14) Existing law requires telephone corporations to submit to the Public Utilities Commission approved rate revenues for transfer by the commission to the Controller for deposit in the California High-Cost Fund-A Administrative Committee Fund, California High-Cost Fund-B Administrative Committee Fund, Universal Lifeline Telephone Service Trust Administrative Committee Fund, Deaf and Disabled Telecommunications Program Administrative Committee Fund, Payphone Service Providers Committee Fund, and the California Teleconnect Fund Administrative Committee Fund. Existing law requires any unexpended revenues collected prior to the operative date of the bill to be deposited in the appropriate fund. This bill would provide instead that commencing on October 1, 2001, and continuing thereafter, the commission shall transfer the moneys received, and all unexpended revenues collected prior to October 1, 2001, to the Controller for deposit in the various funds, except that the bill would provide that the commission transfer the moneys received, and all unexpended revenues collected prior to July 1, 2002, to the Controller for deposit in the Deaf and Disabled Telecommunications Program Administrative Committee Fund commencing on July 1, 2002. The bill would provide that any transfers of money from the California High-Cost Fund-B Trust to the Deaf Equipment Acquisition Fund Trust prior to October 1, 2001, shall not be required to be transferred to the Controller for deposit in the California High-Cost Fund-B Administrative Committee Fund prior to July 1, 2002. (15) The bill would declare that it is to take effect immediately as an urgency statute. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 25608.3 is added to the Corporations Code, to read: 25608.3. (a) Notwithstanding Sections 25608 and 25608.1, the commissioner may set any fee under those sections at an amount below the maximum fee set forth in those sections. The commissioner shall set the fee for the upcoming fiscal year on or about June 1 of each year, except that for the six-month period of January 1, 2002, through June 30, 2002, and for the 2002-03 fiscal year, the commissioner, on January 1, 2002, shall, in a reasonable and prudent manner, reduce any fee under Sections 25608 and 25608.1 by an amount below the maximum fee set forth in those sections. For the fiscal year commencing on July 1, 2003, and thereafter, the commissioner shall establish the level of fees adequate to cover anticipated costs, including the maintenance of a prudent reserve, but not to exceed the maximum fees that may be levied under Sections 25608 and 25608.1. If, for the fiscal year commencing on July 1, 2003, or thereafter, the commissioner fails to set the fee for the upcoming fiscal year on or before June 1, then the fee for the next fiscal year shall be the fee that was in effect for the current fiscal year. (b) In carrying out this section, the commissioner shall reduce or suspend fees to achieve no more than a 25-percent fund balance in the State Corporations Fund by June 30, 2007, and thereafter. (c) The department shall report by February 1, 2002, to the Chair of the Joint Legislative Budget Committee and the chairs of the budget committees on the fees to be reduced and the projected revenue and fund balance impact on the State Corporations Fund through the 2006-07 fiscal year. Each year from 2002 through 2007, the department shall submit a status update report by November 1 on the fees reduced, the revenue and fund balance impact in the prior fiscal year, and the projected revenue and fund balance impact through the 2006-07 fiscal year. SEC. 2. Section 8277.5 of the Education Code is amended to read: 8277.5. (a) For purposes of this section "department" means the Department of Housing and Community Development. (b) Subject to appropriation in the annual Budget Act, the Child Care and Development Facilities Loan Guaranty Fund and the Child Care and Development Facilities Direct Loan Fund are hereby established in the State Treasury. The Superintendent of Public Instruction may transfer state funds appropriated for child care facilities enhancement and the proceeds derived from any future sales of tax-exempt child care and development facilities bonds into these funds. (c) Notwithstanding Section 13340 of the Government Code, all moneys in the Child Care and Development Facilities Loan Guaranty Fund and the Child Care and Development Facilities Direct Loan Fund, including any interest on loans made from the fund, or loan repayments to the fund, are hereby continuously appropriated to the department for carrying out the purposes of this section and Section 8277.6, respectively. Any loan repayment or interest resulting from investment or deposit of moneys in these funds shall be deposited in the applicable fund, notwithstanding Section 16305.7 of the Government Code. Moneys in the funds shall not be subject to transfer to any other fund pursuant to Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except the Surplus Money Investment Fund. (d) (1) Moneys deposited in the Child Care and Development Facilities Loan Guaranty Fund shall be used for the purpose of guaranteeing private sector loans to sole proprietorships, partnerships, proprietary and nonprofit corporations, and local public agencies for the purchase, development, construction, expansion, or improvement of licensed child care and development facilities, and for the purpose of administering the guarantees of these loans. The loan guarantees shall be made by the department or by a public or private entity approved by the department, in accordance with the priorities established by the department, as described in Section 8277.6. The full faith and credit of the State of California is not pledged to the Child Care and Development Facilities Loan Guaranty Fund and the state is not liable for loan defaults that exceed the amount of funds deposited with the Child Care and Development Facilities Loan Guaranty Fund. (2) A loan guarantee made pursuant to this section may not exceed 80 percent of the principal and interest amount of a private sector loan guaranteed by the fund and shall be used only to guarantee a private sector loan for the purchase, development, construction, expansion, or improvement of facilities described in Section 8277.6 and for related equipment and fixtures, but shall not be used primarily to refinance an existing loan or for working capital, supplies, or inventory. A loan guarantee for improvements shall be limited to those improvements necessary, as determined by the department, for any of the following purposes: (A) To obtain, maintain, renew, expand, or revise a child care license. (B) To make necessary health and safety improvements. (C) To make seismic improvements. (D) To provide access for disabled children. (E) To expand upon or preserve existing child care operations. (3) The aggregate amount of outstanding loan guarantees shall not exceed four times the amount in the Child Care and Development Facilities Loan Guaranty Fund. (4) A loan guarantee made pursuant to this section shall be for the term of the loan or 20 years, whichever is less. Security for the guaranteed loan may include a deed of trust, personal guarantees of shareholders and partners in the case of proprietary borrowers, or other reasonably available collateral. These liens may be subordinated to other liens. Default provisions and other terms shall be reasonable and designed to obtain prompt and full repayment of the guaranteed loan by the borrower. Reasonable loan guarantee fees and points may be charged to applicants and borrowers by any public or private entity approved by the department, as described in regulations adopted by the department. (5) A loan guarantee made pursuant to this section shall only be granted if the applicant agrees to provide child care in a facility for a period of 20 years or the term of the guaranteed loan, whichever is less. (6) A loan guarantee made pursuant to this section terminates 120 days after the lender's receipt of notice that the recipient has either ceased making payments or providing child care in the facility for which the loan was made, or both, unless the lender takes action to accelerate the loan. If a family day care provider ceases to operate, but retains its three-year license, the provider shall give notice to the department and the lending institution of its intention to resume offering child care services for the term of its license, or shall provide notice of its intention to cease providing child care services. The Child Care and Development Facilities Loan Guaranty Fund is not liable for a default occurring after the loan guarantee has ended. (e) (1) Moneys deposited in the Child Care and Development Facilities Direct Loan Fund shall be used for the purpose of making subordinated loans directly or through a public or private entity approved by the department to sole proprietorships, partnerships, proprietary and nonprofit corporations, and local public agencies for the purchase, development, construction, expansion, or improvement of licensed child care and development facilities, and for the purpose of administering these loans. Loans shall be made in accordance with the priorities established by the department as set forth in Section 8277.6. The full faith and credit of the State of California is not pledged to the Child Care and Development Facilities Direct Loan Fund and the state is not liable for loan defaults that exceed the amount of funds deposited in the Child Care and Development Facilities Direct Loan Fund. (2) A loan made pursuant to this section may not exceed 75 percent of the total amount of investment for the purchase, development, expansion, or improvement of eligible child care and development facilities as described in Section 8277.6 and for related equipment and fixtures, but may not be used primarily to refinance an existing loan, for working capital, for supplies, or for inventory. A loan made pursuant to this section may not exceed 20 percent of the total amount of investment if the same facility is also utilizing a loan guarantee pursuant to subdivision (c). Investment for purposes of this paragraph means the total cost paid or incurred by the applicant in constructing, renovating, or acquiring a facility. A loan for improvements shall be limited to those improvements necessary, as determined by the department, for any of the following purposes: (A) To obtain, maintain, renew, expand, or revise a child care license. (B) To make necessary health and safety improvements. (C) To make seismic improvements. (D) To provide access for disabled children. (E) To expand upon or preserve existing child care operations. (3) The term of a loan made pursuant to this section may not exceed 30 years. Security for the loan may include a deed of trust, personal guarantees of shareholders and partners in the case of proprietary borrowers, or other reasonably available collateral. These liens may be subordinated to other liens. The payment provisions, late charges, and other terms may vary based on the ability of the borrower to repay the loan, but shall be reasonable and designed to obtain prompt and full repayment of the loan by the borrower. A direct loan shall bear simple interest at the rate of 3 percent per annum on the unpaid principal balance. Reasonable loan fees and points may be charged to applicants and borrowers, as described in regulations adopted by the department. The department may permit a loan to be assumed by an otherwise qualified borrower who agrees to continue to provide child care for the balance of the original term of the loan. (f) Funds appropriated for the purposes of this section and Section 8277.6 shall be made from funds that are not designated as meeting the state's minimum funding obligation under Section 8 of Article XVI of the California Constitution. SEC. 3. Section 8277.6 of the Education Code is amended to read: 8277.6. (a) For purposes of this section "department" means the Department of Housing and Community Development. (b) The department shall administer the Child Care and Development Facilities Loan Guaranty Fund and the Child Care and Development Facilities Direct Loan Fund. The department may administer the funds directly, through interagency agreements with other state agencies, through contracts with public or private entities, or through any combination thereof. If the department determines that a public or private entity is capable of making child care and development facilities loans or loan guarantees, the department may delegate the authority to review and approve those loans or guarantees to the public or private entity. The department is authorized to enter into an interagency agreement with the Trade and Commerce Agency to carry out the purposes of this section and Section 8277.5 by utilizing the services of small business financial development corporations established pursuant to Chapter 1 (commencing with Section 14000) of Part 5 of Division 3 of the Corporations Code. Toward this end, the department is authorized to transfer funds from the Child Care and Development Facilities Direct Loan Fund to the California Economic Development Grant and Loan Fund established by Section 15327 of the Government Code and to transfer funds from the Child Care and Development Facilities Loan Guaranty Fund to the Small Business Expansion Fund established by Section 14030 of the Corporations Code. Those funds shall be deposited into a Child Care Direct Loan Fund Account and a Child Care Loan Guaranty Fund Account hereby established in the respective funds. Notwithstanding anything to the contrary in Chapter 1 (commencing with Section 15310) of Part 6.7 of Division 3 of Title 2 of the Government Code and Chapter 1 (commencing with Section 14000) of Part 5 of Division 3 of the Corporations Code, the funds in these accounts shall be administered in compliance with the requirements of this section and Section 8277.5. (c) Eligible applicants for the loan guaranty program and the direct loan program shall include, but not be limited to, sole proprietorships, partnerships, proprietary and nonprofit corporations, and local public agencies that are responsible for contracting with or providing licensed child care and development services. Eligible facilities shall include licensed full-day and part-day child care and development facilities and licensed large family day care homes as described in Section 1597.465 of the Health and Safety Code, and licensed small family day care home as described in Section 1597.44 of the Health and Safety Code. (d) Loan guarantees and direct loans for family child care homes shall not be made for the purpose of purchasing a home or any real property. (e) The State Department of Education shall provide input regarding program priorities that shall be considered in the funding of applications by the department. These priorities shall include, but are not limited to, the following: (1) Geographic priorities based on the extent of need for child care and development supply-building efforts in different parts of the state. (A) Not less than 30 percent of the loan guarantee and direct loan obligations shall benefit providers located in rural areas, as defined in subparagraph (B). If the amount of qualified applications from rural providers is insufficient to satisfy this requirement, the excess capacity reserved for rural providers may be made available to other qualified applications according to the policies and procedures of the department. The remaining 70 percent of funds shall be available to rural or urban areas and other priorities in accordance with this subdivision. (B) For purposes of subdivision (a), rural communities are defined by any county with fewer than 400 residents per square mile. (2) Age priorities based on the extent of need for child care and development supply-building efforts for children of different age groups. (3) Income priorities shall include families transitioning to work or other lower income families. For purposes of this section, "lower income" shall have the same meaning as "income eligible" as set forth in Section 8263.1. (4) Program priorities based on the extent of facilities needs among specific kinds of providers, including those that contract to administer state and federally funded child care and development programs administered by the State Department of Education, providers who have lost classrooms due to class size reduction or other state or local initiatives, or providers that need to expand to meet the needs of a child care initiative for recipients of aid under Chapter 3 (commencing with Section 11200) of Part 3 of Division 9 of the Welfare and Institutions Code, or any successor program. (f) The program priorities shall reflect input from representatives of diverse sectors of the child care and development field, financial institutions, local planning councils, the Child Development Programs Advisory Committee, and the State Department of Social Services for purposes of identifying communities with high percentages of recipients of aid under Chapter 3 (commencing with Section 11200) of Part 3 of Division 9 of the Welfare and Institutions Code, or any successor program, who need child care to meet work requirements. As part of its annual report to the Legislature, required pursuant to Section 50408 of the Health and Safety Code, the department shall assess and report, after consultation with the State Department of Education, on the performance, effectiveness, and fiscal standing of the Child Care and Development Facilities Loan Guaranty Fund and the Child Care and Development Facilities Direct Loan Fund. The report shall include information on the number of defaults, the types of facilities in default, and a review of the adequacy of the set-aside for rural areas specified in paragraph (1) of subdivision (e). (g) The department shall adopt regulations and establish priorities, forms, policies and procedures for implementing and managing the Child Care and Development Facilities Loan Guaranty Fund and the Child Care and Development Facilities Direct Loan Fund and making the loan guarantees and direct loans authorized hereunder consistent with priorities provided by the State Department of Education. To the extent feasible, the department shall use applicant fees and points to cover its administrative costs. The department may utilize an amount of money from the Child Care and Development Facilities Loan Guaranty Fund and the Child Care and Development Facilities Direct Loan Fund, as appropriate, for reasonable administrative costs in any given fiscal year. Unless an appropriation for administrative costs is made in the annual Budget Act that exceeds the following limits, administrative expenditures shall not exceed 3 percent of the amount appropriated to each fund in the Budget Act of 1997. (h) (1) The department shall adopt regulations to efficiently and effectively implement the microenterprise loan program described in this subdivision, including, but not limited to, the following: (A) Making loans available from the Child Care and Development Facilities Direct Loan Fund to local microenterprise loan funds and other lenders who may relend the funds in appropriate amounts to eligible small family day care home providers described in Section 1597.44 of the Health and Safety Code, large family day care home providers described in Section 1597.465 of the Health and Safety Code, and licensed child care and development facilities that serve up to 35 children. (B) Authorizing a specified amount of guarantees of small loans by local microenterprise loan funds and other lenders serving eligible small family day care home providers described in Section 1597.44 of the Health and Safety Code, large family day care home providers described in Section 1597.465 of the Health and Safety Code, and licensed child care and development facilities that serve up to 35 children. (2) Notwithstanding anything to the contrary in this section or Section 8277.5, a loan made pursuant to this subdivision shall not be made for less than five thousand dollars ($5,000) or for more than fifty thousand dollars ($50,000) and shall not be subject to the 75-percent investment restriction contained in paragraph (2) of subdivision (e) of Section 8277.5. (i) The department may adopt regulations for the purposes of this section as emergency regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. For the purposes of the Administrative Procedure Act, including Section 11349.6 of the Government Code, the adoption of the regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare, notwithstanding subdivision (e) of Section 11346.1 of the Government Code. Notwithstanding subdivision (e) of Section 11346.1, any regulation adopted pursuant to this section shall not remain in effect more than 180 days unless the department complies with all provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, as required by subdivision (e) of Section 11346.1 of the Government Code. SEC. 3.5. Section 58750 is added to the Food and Agricultural Code, to read: 58750. (a) There is within the Department of Food and Agriculture a public and private collaboration known as the "Buy California Program." The purposes of the program are to encourage consumer nutritional and food awareness and to foster purchases of high-quality California agricultural products. (b) Pursuant to Section 58749, and in accordance with the provisions of this chapter, the secretary may issue and make effective a marketing agreement and be advised by those elements of the production agriculture and food processing industry willing to participate in the program via co-funding or in-kind contributions in a manner defined under the agreement. (c) The department shall report to the Legislature on January 1, 2002, and each successive January 1 while this section is operative, regarding its expenditures, progress, and ongoing priorities with this program. (d) The Buy California Account is created in the Food and Agriculture Fund and, notwithstanding Section 13340 of the Government Code, is continuously appropriated for purposes of this section. SEC. 4. Section 1156.1 is added to the Government Code, to read: 1156.1. (a) Any eligible employee may elect to participate in the State Employees' Pretax Parking Payroll Deduction Program. The program shall be administered by the Department of Personnel Administration. An amount equivalent to the value of the parking, to the extent permitted by Internal Revenue Code Section 132, shall be excluded from the gross income of the employee, in lieu of a portion of the employee's compensation, and shall be transmitted to the State Employees' Pretax Parking Fund. Each eligible employee electing to participate in the program, for the period that he or she is enrolled as a participant in the program, shall be subject to the applicable federal law and regulations and related state administrative regulations adopted by the Department of Personnel Administration. (b) For purposes of this section, an "eligible employee" means any of the following: (1) A "state employee," as defined in Section 3513. (2) An "excluded employee," as defined in Section 3527. (3) An officer or employee of the State of California in the executive branch of government who is not a state civil service employee pursuant to Part 2 (commencing with Section 18500) of Division 5 of Title 2. (c) There is in the State Treasury the State Employees' Pretax Parking Fund which, notwithstanding Section 13340, is continuously appropriated without regard to fiscal years to the Department of Personnel Administration for expenditure to implement the State Employees' Pretax Parking Payroll Deduction Program. The fund shall consist of the amounts received from employee compensation excluded from gross income and transmitted to the State Employees' Pretax Parking Fund pursuant to subdivision (a). SEC. 5. Section 14612 is added to the Government Code, to read: 14612. (a) The department shall commit itself to achieve improved levels of performance, as specified in this section, by focusing its efforts on enhancing the value of the services it delivers. (b) The department shall commit itself to providing (1) services that the Legislature or Governor requires state agencies to purchase from the department, and (2) services that state agencies are not required to purchase from the department, but that the department can provide on a cost-competitive basis. (c) Notwithstanding any other provision of law, the director of the department or his or her designee, in lieu of the Director of Finance, may approve DGS Form 22 and DGS Form 220, 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. (d) Notwithstanding Chapter 3 (commencing with Section 13940) of Part 4, the director of the department or his or her designee may approve "relief from accountability" for debts owed to the department up to five thousand dollars ($5,000) when the department determines it cannot collect the debts or when the cost of collection exceeds the amount of the debt. (e) Notwithstanding Section 2807 of the Penal Code, the director of the department or his or her designee may procure goods from the private sector even though the goods may be available from the Prison Industry Authority, when in his or her discretion, it is cost beneficial to do so and if the director or his or her designee continues to include the authority in soliciting quotations for goods. (f) Notwithstanding subdivision (a) of Section 948 and Section 965, the director of the department or his or her designee, in lieu of the Director of Finance, may certify funds for payment of all legal settlements and tort claims for which the department already has sufficient expenditure authority and funds without the need for augmentation. (g) Notwithstanding Chapter 7 (commencing with Section 14850) or Section 14901, no agency is required to use the Office of State Publishing for its printing needs and the Office of State Publishing may offer printing services to both state and other public agencies, including cites, counties, special districts, community college districts, the California State University, the University of California, and agencies of the United States government. When soliciting bids for printing services from the private sector, all state agencies shall also solicit a bid from the Office of State Publishing when the project is anticipated to cost more than five thousand dollars ($5,000). (h) Notwithstanding Section 14851, the Office of State Publishing may accept paid advertisements in state publications or in publications promoting an Office of State Publishing supported project or program, except that the Office of State Publishing may not accept or publish any paid political advertising. (i) Notwithstanding Section 965.2, the director of the department or his or her designee, in lieu of the Director of Finance, may certify funds for payment for all legal court settlements for projects funded from the Architecture Revolving Fund, if a sufficient fund balance exists in the work order to pay the claim and the payment does not require a budget augmentation to complete the project. (j) Notwithstanding Section 14957, the director of the department or his or her designee, in lieu of the Director of Finance, may approve the deposit of checks directly into the Architecture Revolving Fund. The department shall notify the Department of Finance within 30 days of the date that the department makes such a deposit. (k) This section shall remain operative only until the effective date of the Budget Act of 2002 or June 30, 2002, whichever occurs later, and, as of January 1, 2003, is repealed, unless a later enacted statute that is enacted before January 1, 2003, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 6. Section 15399.21 of the Government Code is amended to read: 15399.21. This chapter is repealed as of January 1, 2004, unless a later enacted statute that is enacted on or before January 1, 2004, deletes or extends that date. SEC. 7. Section 68203.1 is added to the Government Code, to read: 68203.1. (a) Operative January 2, 2002, the salary of the position of Chair of the Judicial Council and the position of a presiding judge of a superior court which has 15 or more judges, and the positions of the administrative presiding justices of the Courts of Appeal, shall be increased by that amount which is produced by multiplying the salary of each of these judicial offices by 4 percent; and the salary for the position of a presiding judge of a superior court, which has four to 14 judges, shall be increased by that amount which is produced by multiplying the salary of that judicial office by 2 percent. (b) A judge or justice who no longer serves in the position of an administrative presiding justice or a presiding judge of a superior court shall receive only the salary in effect for judges or justices of his or her court. SEC. 8. Section 75003 of the Government Code is amended to read: 75003. "Salary" means the compensation received by a judge as the emolument of the office of judge, and as limited by Section 75075.02, but, except as provided by Section 75076.2, does not include any additional compensation received by reason of designation as a judge pro tempore, assignment by the Chairperson of the Judicial Council, or the additional compensation pursuant to Section 68203.1. SEC. 9. Section 75102 of the Government Code is amended to read: 75102. Except as provided in Section 75103.3, the Controller shall at the end of each month commencing with the salary for the month of July 1964 deduct 8 percent from the monthly salary, not including the additional compensation pursuant to Section 68203.1, of each Justice of the Supreme Court and of the courts of appeal and of the portion paid by the state of the monthly salary of each judge of the superior court and shall cause this amount to be paid into the Judges' Retirement Fund. SEC. 10. Section 75103 of the Government Code is amended to read: 75103. Except as provided in Section 75103.3, the auditor of each county shall deduct 8 percent from the portion paid by a county of the monthly salary, not including the additional compensation pursuant to Section 68203.1, of each judge of the superior and municipal court and cause this amount to be paid into the Judges' Retirement Fund. SEC. 11. Section 75502 of the Government Code is amended to read: 75502. (a) "Judge" means a justice of the Supreme Court or of a court of appeal, or a judge of a superior court, municipal court, or justice court who is first elected or appointed to judicial office on or after November 9, 1994, and is not a member of the Judges' Retirement System pursuant to Chapter 11 (commencing with Section 75000). A retired judge does not acquire status as a judge for the purposes of this chapter by reason of designation as a temporary judge of, or assignment by the Chairperson of the Judicial Council to, any of these courts. A former member of the Judges' Retirement System under Section 75002 who withdrew his or her contributions upon leaving office, and who takes judicial office on or after November 9, 1994, becomes a member of the system existing under Chapter 11 (commencing with Section 75000) and does not become a member of the Judges' Retirement System II. No person shall be a member of the Judges' Retirement System II who is or ever has been a member of the Judges' Retirement System pursuant to Chapter 11 (commencing with Section 75000). (b) "System" means the Judges' Retirement System II established by this chapter. (c) "Service" means the period of time a judge received a salary and made contributions to the system by reason of holding office as a judge of any one or more of the courts of this state specified in subdivision (a), computed in years and fractions of years. (d) "Final compensation" means the average monthly salary of a judge during the 12 months immediately preceding his or her retirement from or otherwise leaving judicial office and as limited by Section 75572. (e) "Benefit factor" means the percentage used in calculating a judge's monthly retirement allowance under Section 75522. (f) "Contributions" means the accumulated deductions from the judge's salary under Sections 75601 and 75602. References to payment to a judge of his or her contributions or to the determination of a judge's and spouse's shares in the contributions include both the contributions and interest thereon at the rates determined by the Board of Administration of the Public Employees' Retirement System. (g) "Salary" means the compensation received by a judge as the emolument of the office of judge, but does not include any additional compensation received by reason of designation as a temporary judge or assignment by the Chairperson of the Judicial Council or the additional compensation pursuant to Section 68203.1. (h) "Board" means the Board of Administration of the Public Employees' Retirement System. (i) "Fund" or "retirement fund" means the Judges' Retirement System II Fund established pursuant to Section 75600. SEC. 12. Section 75600.5 of the Government Code is amended to read: 75600.5. (a) The Controller shall at the end of each month ascertain the aggregate amount of the annual salaries, not including the additional compensation pursuant to Section 68203.1, of all judges covered by the Judges' Retirement System II, and out of the General Fund he or she shall transfer monthly into the Judges' Retirement System II Fund a sum equal to 18.8 percent of one-twelfth of the aggregate amount of those salaries. (b) As of June 30 of the first year this chapter is in effect, and annually thereafter, the board shall make an actuarial investigation into the fund's experience, the ages of member judges, and other facts necessary to determine the actuarial soundness of the fund. Based on its investigation, the board shall determine the state contribution necessary to maintain or restore the actuarial soundness of the fund, stated as a percentage of judges' salaries. (c) The state's contribution as fixed under this chapter shall be adjusted thereafter from time to time in the annual Budget Act according to the following method. As part of the proposed budget submitted pursuant to Section 12 of Article IV of the California Constitution, the Governor shall include the contribution rate submitted by the board pursuant to subdivision (b). The Legislature shall adopt the contribution rate and authorize the appropriation in the Budget Act. SEC. 13. Section 75601 of the Government Code is amended to read: 75601. Except as provided in Section 75605, the Controller shall at the end of each month deduct 8 percent from the monthly salary, not including the additional compensation pursuant to Section 68203.1, of each justice of the Supreme Court and of the courts of appeal and of the portion paid by the state of the monthly salary of each judge of the superior court and shall cause this amount to be paid into the Judges' Retirement System II Fund. SEC. 14. Section 75602 of the Government Code is amended to read: 75602. Except as provided in Section 75605, the Controller or the auditor of each county shall deduct 8 percent from the portion paid by a county, or the Controller and the auditor, if appropriate, of the monthly salary, not including the additional compensation pursuant to Section 68203.1, of each judge of the superior and municipal court and cause this amount to be paid into the Judges' Retirement System II Fund. SEC. 15. Section 17021 of the Health and Safety Code is amended to read: 17021. (a) Except as provided in Sections 17021.5 and 17021.6, local use zone requirements, local fire zones, property line, source of water supply and method of sewage disposal requirements are hereby specifically and entirely reserved to the local jurisdictions. (b) Notwithstanding any other provision of law, with respect to a building permit, grading permit, or other approval from a city or county building department for the rehabilitation of real property improvements that are or will be employee housing for agricultural employees, or from a city or county health department for the operation, construction, or repair of a water system or waste disposal system servicing employee housing for agricultural employees, all of the following processing requirements shall apply: (1) The local building or health department shall have up to 60 calendar days to approve or deny a complete application or permit request accompanied by applicable fees, or a shorter time period if required by the Permit Streamlining Act (Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code). An application or permit request may be denied on procedural grounds only if the denial occurs within 30 calendar days and the denial includes an itemization of the procedural defects. An application or permit request may be denied on substantive grounds if the denial includes an itemization of all substantive defects. (2) If the application or permit request is not approved or denied by the local building or health department within the period prescribed by paragraph (1), then the Department of Housing and Community Development may approve the application or permit request if it determines that the plans are consistent with all applicable building codes and health and safety requirements. At that time, the applicant may initiate any work consistent with the application or permit approved pursuant to this subdivision. Upon completion of the work, any other state or local agency shall accept the improvements as if they had been approved by the local building or health department. However, if that other local agency identifies any defects that would have resulted in that agency's disapproval of the improvements or plans thereto, those defects may be identified by the agency and shall be corrected by the applicant. The local building or health department shall inspect the plans and improvements prior to and during rehabilitation and issue a certificate of completion if the work is consistent with the plans and all applicable building codes and health and safety requirements. (c) Nothing in this section shall be construed to exempt an application or permit request from complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). (d) For purposes of this section, "agricultural employee" has the same meaning specified in subdivision (b) of Section 1140.4 of the Labor Code. (e) The Department of Housing and Community Development may recover from a local building or health department costs incurred to review an application or permit request in compliance with paragraph (2) of subdivision (b). The amount recoverable may not exceed the applicable plan check fee published by the International Conference of Building Officials. SEC. 16. Section 1012.3 of the Military and Veterans Code is amended to read: 1012.3. Members of the home shall pay fees and charges as determined by the department, except that the total of the individual member's fees and charges for any fiscal year shall not be greater than as set forth in the following schedule: (a) Forty-seven and one-half percent of the member's annual income, or one thousand two hundred dollars ($1,200) per month, for residential care, whichever is less. (b) Sixty-five percent of the member's annual income, or two thousand three hundred dollars ($2,300) per month, for intermediate care, whichever is less. (c) Seventy percent of the member's annual income, or two thousand five hundred dollars ($2,500) per month, for skilled nursing care, whichever is less. SEC. 17. Section 270 of the Public Utilities Code is amended to read: 270. (a) The following funds are hereby created in the State Treasury: (1) The California High-Cost Fund-A Administrative Committee Fund. (2) The California High-Cost Fund-B Administrative Committee Fund. (3) The Universal Lifeline Telephone Service Trust Administrative Committee Fund. (4) The Deaf and Disabled Telecommunications Program Administrative Committee Fund. (5) The Payphone Service Providers Committee Fund. (6) The California Teleconnect Fund Administrative Committee Fund. (b) Moneys in the funds may only be expended pursuant to this chapter and upon appropriation in the annual Budget Act. (c) Moneys in each fund may not be appropriated, or in any other manner transferred or otherwise diverted, to any other fund or entity. Notwithstanding any other provision of this chapter, short-term loans between the funds may be authorized in the annual Budget Act. SEC. 18. Section 274 of the Public Utilities Code is amended to read: 274. The commission may on its own order, whenever it determines it to be necessary, conduct financial audits of the revenues required to be collected and submitted to the commission for each of the funds specified in Section 270. The commission may on its own order, whenever it determines it to be necessary, conduct compliance audits on the compliance with commission orders with regard to each program subject to this chapter. The commission shall conduct a financial and compliance audit of program-related costs and activities at least once every three years. The first three-year period for a financial and compliance audit commences on July 1, 2002. The second and subsequent three-year periods for financial audits commence three years after the completion of the prior financial audit. The second and subsequent three-year periods for compliance audits commence three years after the completion of the prior compliance audit. The commission may contract with the Bureau of State Audits or the Department of Finance for all necessary auditing services. All costs for audits shall be paid from the fund that supports the activities of the board audited and shall be subject to the availability of money in that fund. SEC. 19. Section 275 of the Public Utilities Code is amended to read: 275. (a) There is hereby created the California High-Cost Fund-A Administrative Committee, which is an advisory board to advise the commission regarding the development, implementation, and administration of a program to provide for transfer payments to small independent telephone corporations providing local exchange services in high-cost rural and small metropolitan areas in the state to create fair and equitable local rate structures, as provided for in Section 739.3, and to carry out the program pursuant to the commission's direction, control, and approval. (b) All revenues collected by telephone corporations in rates authorized by the commission to fund the program specified in subdivision (a) shall be submitted to the commission pursuant to a schedule established by the commission. Commencing on October 1, 2001, and continuing thereafter, the commission shall transfer the moneys received, and all unexpended revenues collected prior to October 1, 2001, to the Controller for deposit in the California High-Cost Fund-A Administrative Committee Fund. All interest earned by moneys in the fund shall be deposited in the fund. (c) Moneys appropriated from the California High-Cost Fund-A Administrative Committee Fund to the commission shall be utilized exclusively by the commission for the program specified in subdivision (a), including all costs of the board and the commission associated with the administration and oversight of the program and the fund. SEC. 20. Section 276 of the Public Utilities Code is amended to read: 276. (a) There is hereby created the California High-Cost Fund-B Administrative Committee, which is an advisory board to advise the commission regarding the development, implementation, and administration of a program to provide for transfer payments to telephone corporations providing local exchange services in high-cost areas in the state to create fair and equitable local rate structures, as provided for in Section 739.3, and to carry out the program pursuant to the commission's direction, control, and approval. (b) All revenues collected by telephone corporations in rates authorized by the commission to fund the program specified in subdivision (a) shall be submitted to the commission pursuant to a schedule established by the commission. Commencing on October 1, 2001, and continuing thereafter, the commission shall transfer the moneys received, and all unexpended revenues collected prior to October 1, 2001, to the Controller for deposit in the California High-Cost Fund-B Administrative Committee Fund. Any transfers of money from the California High-Cost Fund-B Trust to the Deaf Equipment Acquisition Fund Trust prior to October 1, 2001, shall not be required to be transferred to the Controller for deposit in the California High-Cost Fund-B Administrative Committee Fund prior to July 1, 2002. (c) Moneys appropriated from the California High-Cost Fund-B Administrative Committee Fund to the commission shall be utilized exclusively by the commission for the program specified in subdivision (a), including all costs of the board and the commission associated with the administration and oversight of the program and the fund. SEC. 21. Section 277 of the Public Utilities Code is amended to read: 277. (a) There is hereby created the Universal Lifeline Telephone Service Trust Administrative Committee, which is an advisory board to advise the commission regarding the development, implementation, and administration of a program to ensure lifeline telephone service is available to the people of the state, as provided for in Article 8 (commencing with Section 871) of Chapter 4 of Part 1 of Division 1, and to carry out the program pursuant to the commission's direction, control, and approval. (b) All revenues collected by telephone corporations in rates authorized by the commission to fund the program specified in subdivision (a) shall be submitted to the commission pursuant to a schedule established by the commission. Commencing on October 1, 2001, and continuing thereafter, the commission shall transfer the moneys received, and all unexpended revenues collected prior to October 1, 2001, to the Controller for deposit in the Universal Lifeline Telephone Service Trust Administrative Committee Fund. All interest earned by moneys in the fund shall be deposited in the fund. (c) Moneys appropriated from the Universal Lifeline Telephone Service Trust Administrative Committee Fund to the commission shall be utilized exclusively by the commission for the program specified in subdivision (a), including all costs of the board and the commission associated with the administration and oversight of the program and the fund. SEC. 22. Section 278 of the Public Utilities Code is amended to read: 278. (a) (1) There is hereby created the Deaf and Disabled Telecommunications Program Administrative Committee, which is an advisory board to advise the commission regarding the development, implementation, and administration of programs to provide specified telecommunications services and equipment to persons in this state who are deaf or disabled, as provided for in Sections 2881, 2881.1, and 2881.2, and to carry out the programs pursuant to the commission' s direction, control, and approval. (2) In addition to the membership qualifications established by the commission pursuant to subdivision (a) of Section 271, the commission shall establish qualifications for persons to serve as members of the Deaf and Disabled Telecommunications Program Administrative Committee to achieve appropriate representation by the consumers of telecommunications services for the deaf and disabled. (b) All revenues collected by telephone corporations in rates authorized by the commission to fund the programs specified in subdivision (a) shall be submitted to the commission pursuant to a schedule established by the commission. Commencing on July 1, 2002, and continuing thereafter, the commission shall transfer the moneys received, and all unexpended revenue collected prior to July 1, 2002, to the Controller for deposit in the Deaf and Disabled Telecommunications Program Administrative Committee Fund. All interest earned by moneys in the fund shall be deposited in the fund. In addition, those revenues that are collected pursuant to subdivision (d) of Section 2881 shall be accounted for separately, as required by subdivision (b) of Section 2881.2, and deposited in the fund created by the commission pursuant to subdivision (b) of Section 2881.2. (c) Moneys appropriated from the Deaf and Disabled Telecommunications Program Administrative Committee Fund to the commission shall be utilized exclusively by the commission for the program specified in subdivision (a), including all costs of the board and the commission associated with the administration and oversight of the program and the fund. SEC. 23. Section 279 of the Public Utilities Code is amended to read: 279. (a) There is hereby created the Payphone Service Providers Committee, which is an advisory board to advise the commission regarding the development, implementation, and administration of programs to educate payphone service providers, ensure compliance with the commission's requirements for payphone operations, and educate consumers on matters related to payphones, as provided for in commission Decision 90-06-018, and to provide for the placement of telecommunications devices capable of servicing the needs of the deaf or the hearing impaired in existing buildings and public accommodations, as specified in subdivision (a) of Section 2881.2. (b) All revenues collected by telephone corporations in rates authorized by the commission to fund the programs specified in subdivision (a) shall be submitted to the commission pursuant to a schedule established by the commission. Commencing on October 1, 2001, and continuing thereafter, the commission shall transfer the moneys received, and all unexpended revenues collected prior to October 1, 2001, to the Controller for deposit in the Payphone Service Providers Committee Fund. All interest earned by moneys in the fund shall be deposited in the fund. (c) Moneys appropriated from the Payphone Service Providers Committee Fund to the commission shall be utilized exclusively by the commission for the program specified in subdivision (a), including all costs of the board and the commission associated with the administration and oversight of the program and the fund. SEC. 24. Section 280 of the Public Utilities Code is amended to read: 280. (a) There is hereby created the California Teleconnect Fund Administrative Committee, which is an advisory board to advise the commission regarding the development, implementation, and administration of a program to advance universal service by providing discounted rates to qualifying schools, libraries, hospitals, health clinics, and community organizations, consistent with Chapter 278 of the Statutes of 1994, and to carry out the program pursuant to the commission's direction, control, and approval. (b) All revenues collected by telephone corporations in rates authorized by the commission to fund the program specified in subdivision (a) shall be submitted to the commission pursuant to a schedule established by the commission. Commencing on October 1, 2001, and continuing thereafter, the commission shall transfer the moneys received, and all unexpended revenues collected prior to October 1, 2001, to the Controller for deposit in the California Teleconnect Fund Administrative Committee Fund. All interest earned by moneys in the fund shall be deposited in the fund. (c) Moneys appropriated from the California Teleconnect Fund Administrative Committee Fund to the commission shall be utilized exclusively by the commission for the program specified in subdivision (a), including all costs of the board and the commission associated with the administration and oversight of the program and the fund. SEC. 25. Notwithstanding any other provision of law, the Department of Housing and Community Development may implement, interpret, and make specific the changes made to Sections 8277.5 and 8277.6 of the Education Code by this act through guidelines that shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2 of the Government Code. SEC. 26. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to make necessary changes that are needed to implement the Budget Act of 2001, it is necessary for this act to take effect immediately.