BILL NUMBER: SB 1191 CHAPTERED 10/12/01 CHAPTER 745 FILED WITH SECRETARY OF STATE OCTOBER 12, 2001 APPROVED BY GOVERNOR OCTOBER 11, 2001 PASSED THE SENATE SEPTEMBER 6, 2001 PASSED THE ASSEMBLY AUGUST 30, 2001 AMENDED IN ASSEMBLY JULY 19, 2001 AMENDED IN ASSEMBLY JUNE 27, 2001 AMENDED IN ASSEMBLY JUNE 13, 2001 AMENDED IN SENATE APRIL 18, 2001 INTRODUCED BY Senator Speier MARCH 14, 2001 An act to amend Sections 4425, 6086.15, 6094.5, 7011.8, and 7017 of, and to repeal Sections 1616.1 and 12029 of, the Business and Professions Code, to amend Section 116.950 of the Code of Civil Procedure, to amend Sections 30.5, 8215, 8358, 8451, 32237, 32239.5, 35179.2, 44252.9, 44259.5, 44279.2, 44784, 49413, 52052, 52656, 54696, 56885, 58523, 60810, 66015, 66755, 67301, 67359.20, 71028, 87104, 89753, 89761, and 99306 of, and to repeal Sections 15750, 17001.5, 44329, 49590.5, 58922, 66293, 69733, 72681, 78217, and 99105 of, the Education Code, to amend Section 7571 of the Family Code, to repeal Sections 256, 8052, and 32955 of the Financial Code, to amend Sections 1000.5, 1796, 2079, 2645, 3409, 3951, 4904, 6450, and 6599 of, and to repeal Sections 2099, 6459, and 16533 of, the Fish and Game Code, to amend Sections 13135 and 76906 of, and to repeal Sections 4101.5, 13127.93, and 14104 of, the Food and Agricultural Code, to amend Sections 3114, 7585, 8654.1, 8670.55, 8879.3, 10242.5, 10601, 11007, 14070.2, 14660.1, 15277, 15333.3, 15333.4, 15378, 15813.6, 17562, 19793, 19993.05, 21662, 27279.4, 30401, 51207, 54238.7, 68511.2, 68604, 77009, 77604, 77605, and 77654 of, and to repeal Sections 8855.5, 8855.7, 8855.8, 11815, 11818, 12095.60, 13332.06, 13336.5, 14035.6, 15301.5, 16582, 16649.91, 30606, 65302.6, 67523, 70219, 75060.3, 75560.3, 92204, and 96103 of, the Government Code, to amend Sections 1200 and 3927 of, and to repeal Sections 65.8 and 658.6 of, the Harbors and Navigation Code, to amend Sections 1342.1, 1422, 11759.4, 18400.1, 25200.11, 25200.14.1, 25200.17, 25299.97, 33760, 34312.3, 39153, 44003, 46077, 50408, 50834, 57007, 104145, 104370, 108875, 119308, 120475, 120480, 120805, and 123775 of, and to repeal Sections 13143.10, 25171, 25171.5, 25245.6, 25269.9, 40453, 50806, 52045, 52570, 100146, and 100340 of, the Health and Safety Code, to amend Sections 10089.40 and 12693.93 of, and to repeal Section 10890 of, the Insurance Code, to amend Section 3214 of the Labor Code, to amend Section 1335 of the Military and Veterans Code, to amend Sections 1001.65, 7433, 13602, and 13731 of, and to repeal Sections 1170.6, 9008, 13510.6, and 13892 of, the Penal Code, to repeal Sections 10350 and 12104 of the Public Contract Code, to amend Sections 5094.2, 5096.244, 5631, 6211, 6230, 6231, 6477, 6916, 14314, 14537, 25403.5, 31108, 31163, 42005, 42871, and 71040 of, and to repeal Sections 674, 5017, 5780.17, 9756, 19524, 22052, and 25310.5 of, the Public Resources Code, to amend Sections 383, 398.5, 495.7, 739.3, 28767.3, 130292, and 132410 of the Public Utilities Code, to amend Section 7273 of the Revenue and Taxation Code, to amend Sections 100, 30796.9, 30950.3, and 30961 of, and to repeal Sections 1965 and 30895 of, the Streets and Highways Code, to amend Sections 5007, 9616, 9616.1, 10532, 15037, 15076.5, and 17002 of, and to repeal Sections 1088.7, 1274.05, 5202, 9614, 9616.5, and 10522 of, the Unemployment Insurance Code, to amend Sections 1810.7, 5023, 14602.1, and 35581 of, and to repeal Section 2936 of, the Vehicle Code, to amend Sections 8610, 11912, 12830, 12875, 12879.5, 12890.4, and 12939 of, and to repeal Sections 232, 10010, 10756, 11156, 12308, 12928.5, 12929.47, 13467, 14014, and 14919 of the Water Code, to amend Sections 4640.6, 4669.75, 5673, 10609.5, 10740, 10790, 11329, 11450.3, 11461.1, 11487.5, 14017.1, 14085.5, 14103.2, 14104.3, 14132, 14132.90, 14133.5, 14138.5, 14145.1, 14148, 14148.8, 14501, 16500.5, 18206, and 18240 of, and to repeal Sections 366.28, 5586, 10603.3, 14618, 15452, and 18214 of, the Welfare and Institutions Code, to amend Section 1 of Chapter 74 of the Statutes of 1978, to repeal Section 3 of Chapter 1523 of the Statutes of 1985, to amend Section 2 of Chapter 1495 of the Statutes of 1988, to amend Section 1 of Chapter 1350 of the Statutes of 1989, to repeal Section 1 of Chapter 674 of the Statutes of 1990, to amend Section 1 of Chapter 1621 of the Statutes of 1990, to repeal Section 2 of Chapter 1012 of the Statutes of 1993, to repeal Resolution Chapter 100 of the Statutes of 1995, and to amend Section 2 of Chapter 881 of the Statutes of 1997, relating to reports submitted to the Legislature, the Governor, and state entities, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 1191, Speier. State and local reporting requirements. Existing law requires or requests various state and local agencies to prepare and submit reports to the Governor, the Legislature, or other state entities. This bill would revise or delete certain reporting requirements for state and local agencies, and delete obsolete references. This bill would declare that it is to take effect immediately as an urgency statute. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 1616.1 of the Business and Professions Code is repealed. SEC. 2. Section 4425 of the Business and Professions Code is amended to read: 4425. (a) As a condition of a pharmacy's participation in the Medi-Cal program pursuant to Chapter 7 (commencing with Section 14000) of Division 9 of the Welfare and Institutions Code, the pharmacy, upon presentation of a valid prescription for the patient and the patient's Medicare card, shall charge Medicare beneficiaries a price that does not exceed the Medi-Cal reimbursement rate for prescription medicines, and an amount, as set by the State Department of Health Services to cover electronic transmission charges. However, Medicare beneficiaries shall not be allowed to use the Medi-Cal reimbursement rate for over-the-counter medications or compounded prescriptions. (b) The State Department of Health Services shall provide a mechanism to calculate and transmit the price to the pharmacy, but shall not apply the Medi-Cal drug utilization review process for purposes of this section. (c) The State Department of Health Services shall monitor pharmacy participation with the requirements of subdivision (a). (d) If prescription drugs are added to the scope of benefits available under the federal Medicare program, the Senate Office of Research shall report that fact to the appropriate committees of the Legislature. It is the intent of the Legislature to evaluate the need to continue the implementation of this article under those circumstances. SEC. 3. Section 6086.15 of the Business and Professions Code is amended to read: 6086.15. (a) The State Bar shall issue an Annual Discipline Report by April 30 of each year describing the performance and condition of the State Bar discipline system. The report shall cover the previous calendar year and shall include accurate and complete descriptions of all of the following: (1) The existing backlog of cases within the discipline system, including, but not limited to, the number of complaints as of December 31 of the preceding year that were pending beyond six months after receipt without dismissal, admonition, or the filing of a notice to show cause, and tables showing time periods beyond six months and the number in each category and a discussion of the reason for the extended periods. (2) The number of inquiries and complaints and their disposition. (3) The number and types of matters self-reported by members of the State Bar pursuant to subdivision (o) of Section 6068 and subdivision (c) of Section 6086.8. (4) The number and types of matters reported by other sources pursuant to Sections 6086.7 and 6086.8. (5) The speed of complaint handling and dispositions by type. (6) The number and types of filed notices to show cause and formal disciplinary outcomes. (7) The number and types of informal discipline outcomes, including petitions to terminate practice, interim suspensions and license restrictions, criminal conviction monitoring, letters of warning, private reprovals, admonitions, and agreements in lieu of discipline. (8) A description of the programs of the State Bar directed at assuring honesty and competence by attorneys. (9) A description of the programs of the State Bar directed at preventing acts warranting discipline. (10) A description of the condition of the Client Security Fund, including an accounting of payouts. (11) An accounting of the cost of the discipline system by function. (b) The Annual Discipline Report shall include statistical information presented in a consistent manner for year-to-year comparison and shall compare the information required under subdivision (a) to similar information for the previous three years. The report shall include the general data and tables included in the previous reports of the State Bar Discipline Monitor where feasible. (c) The Annual Discipline Report shall be presented to the Chief Justice of California, to the Governor, to the Speaker of the Assembly, to the President pro Tempore of the Senate, and to the Assembly and Senate Judiciary Committees, for their consideration and shall be considered a public document. SEC. 4. Section 6094.5 of the Business and Professions Code is amended to read: 6094.5. (a) It shall be the goal and policy of the disciplinary agency to dismiss a complaint, admonish the attorney, or forward a completed investigation to the Office of Trial Counsel within six months after receipt of a written complaint. As to complaints designated as complicated matters by the Chief Trial Counsel, it shall be the goal and policy of the disciplinary agency to dismiss, terminate by admonition, or forward those complaints to the Office of Trial Counsel within 12 months. A notice to show cause is a public record when filed. This goal and policy is not jurisdictional and shall not serve as a bar or defense to, any disciplinary investigation or proceeding. (b) The disciplinary agency, subject to its record retention policy, shall respond within a reasonable time to inquiries as to the status of pending disciplinary cases in which a notice to show cause has been filed, or as to public discipline that has been imposed upon an attorney in California, or to the extent known by the agency, elsewhere, and, to the extent such information is known to the agency, all criminal cases in which an indictment or information has been brought charging a felony against an attorney or an attorney has been convicted of a felony, or convicted of any misdemeanor committed in the course of the practice of law or in any manner such that a client of the attorney was the victim, or any felony or misdemeanor, a necessary element of which, as determined by the statutory or common law definition of the crime, involves improper conduct of an attorney, including interference with the administration of justice, running and capping, false swearing, misrepresentation, fraud, deceit, bribery, extortion, misappropriation, theft, dishonesty or other moral turpitude, or an attempt of a conspiracy or solicitation of another to commit such a crime. Such information acquired from the disciplinary agency under this section shall not be used by an attorney to solicit business. The disciplinary agency shall adopt regulations to carry out the purposes of this subdivision. SEC. 5. Section 7011.8 of the Business and Professions Code is amended to read: 7011.8. (a) Any person who reports to, or causes a complaint to be filed with, the Contractors' State License Board that a person licensed by that entity has engaged in professional misconduct, knowing the report or complaint to be false, is guilty of an infraction punishable by a fine not to exceed one thousand dollars ($1,000). (b) The board may notify the appropriate district attorney or city attorney that a person has made or filed what the entity believes to be a false report or complaint against a licensee. SEC. 6. Section 7017 of the Business and Professions Code is amended to read: 7017. The board, in addition to the usual periodic reports, shall within 30 days prior to the meeting of the general session of the Legislature submit to the Governor and the Legislature a full and true report of its transactions during the preceding biennium including a complete statement of the receipts and expenditures of the board during the period. A copy of the report shall be filed with the Secretary of State. SEC. 7. Section 12029 of the Business and Professions Code is repealed. SEC. 8. Section 116.950 of the Code of Civil Procedure is amended to read: 116.950. (a) This section shall become operative only if the Department of Consumer Affairs determines that sufficient private or public funds are available in addition to the funds available in the department's current budget to cover the costs of implementing this section. (b) There shall be established an advisory committee, constituted as set forth in this section, to study small claims practice and procedure, with particular attention given to the improvement of procedures for the enforcement of judgments. (c) The members of the advisory committee shall serve without compensation, but shall be reimbursed for expenses actually and necessarily incurred by them in the performance of their duties. (d) The advisory committee shall be composed as follows: (1) The Attorney General or a representative. (2) Two consumer representatives from consumer groups or agencies, appointed by the Secretary of the State and Consumer Services Agency. (3) One representative appointed by the Speaker of the Assembly and one representative appointed by the President pro Tempore of the Senate. (4) Two representatives appointed by the Board of Governors of the State Bar. (5) Two representatives of the business community, appointed by the Secretary of the Trade and Commerce Agency. (6) Six judicial officers who have extensive experience presiding in small claims court, appointed by the Judicial Council. Judicial officers appointed under this subdivision may include judicial officers of the superior court, judicial officers of the municipal court, judges of the appellate courts, retired judicial officers, and temporary judges. (7) One representative appointed by the Governor. (8) Two clerks of the court appointed by the Judicial Council. (e) Staff assistance to the advisory committee shall be provided by the Department of Consumer Affairs, with the assistance of the Judicial Council, as needed. SEC. 9. Section 30.5 of the Education Code is amended to read: 30.5. (a) Notwithstanding any other provision of law, bilingual education shall be defined as a system of instruction which builds upon the language skills of a pupil whose primary language is neither English nor derived from English. For purposes of this paragraph: (1) "Primary language" is a language, other than English or a language derived from English, which is the language the pupil first learned. (2) "Derived from English" means any dialect, idiom, or language derived from English. Both of the following shall be construed as being derived from English: (A) Any dialect, idiom, or language that has linguistic roots connected to English. (B) Any dialect, idiom, or language that has a syntax distinct from English, yet can be traced linguistically as derived from English. (b) A school district shall not utilize, as part of a bilingual education program, state funds or resources for the purpose of recognition of, or instruction in, any dialect, idiom, or language derived from English, as defined in paragraph (1). SEC. 10. Section 8215 of the Education Code is amended to read: 8215. (a) There is hereby established a project known as the California Child Care Initiative Project. It is the intent of the Legislature to promote and foster the project in cooperation with private corporations and local governments. The objective of the project is to increase the availability of quality child care programs in the state. (b) For purposes of this section, the California Child Care Initiative Project means a project to expand the role and functions of selected resource and referral agencies in activities including needs assessment, recruitment and screening of providers, technical assistance, and staff development and training, in order to aid communities in increasing their capability in the number of child care spaces available and the quality of child care services offered. (c) The Superintendent of Public Instruction shall allocate all state funds appropriated for the California Child Care Initiative Project for the purpose of making grants to those child care resource and referral agencies that have been selected as pilot sites for the project. (d) The project shall ensure that each dollar of state funds allocated pursuant to subdivision (c) is matched by two dollars ($2) from other sources, including private corporations, the federal government, or local governments. (e) The grants to the sites made available by the project shall be comprised of a combination of state funds and other funds pursuant to subdivision (d). (f) The Superintendent of Public Instruction shall develop a data base for the project. SEC. 11. Section 8358 of the Education Code is amended to read: 8358. (a) By January 31, 1998, the State Department of Education and the State Department of Social Services shall design a form for license-exempt child care providers to use for certifying health and safety requirements to the extent required by federal law. Until the form is adopted, the information required pursuant to Section 11324 of the Welfare and Institutions Code shall continue to be maintained by the county welfare department or contractor, as appropriate. (b) By January 31, 1998, the State Department of Education and the State Department of Social Services shall do both of the following: (1) Design a standard process for complaints by parents about the provision of child care that is exempt from licensure. (2) Design, in consultation with local planning councils, a single application for all child care programs and all families. (c) (1) County welfare departments and alternative payment programs shall encourage all providers who are licensed or who are exempt from licensure and who are providing care under Section 8351, 8353, or 8354, to secure training and education in basic child development. (2) Child care provider job training provided to CalWORKs recipients that is funded by either the State Department of Education or the State Department of Social Services shall include information on becoming a licensed child care provider. (d) The State Department of Education shall increase consumer education and consumer awareness activities so that parents will have the information needed to seek child care of high quality. High quality child care shall include both licensed and license-exempt care. SEC. 12. Section 8451 of the Education Code is amended to read: 8451. (a) Notwithstanding the provisions of this chapter and implementing regulations, the State Department of Education shall develop a prototype of a new contracting system pursuant to the discussion of relevant issues raised in the preliminary report titled "Revisions to the Current Contracting System for Child Care and Development Programs" dated February 6, 1996, as required by the Budget Act of 1995. (b) The prototype shall be implemented by no more than 5 percent of child care and development contractors. (c) The department shall develop a plan for the prototype by January 1, 1997, and shall commence testing it July 1, 1997, with any necessary amendments completed by September 1, 1997. The prototype test shall be conducted over a two-year period and may be extended only with the concurrence of the Department of Finance and 30 days' notification to the Joint Legislative Budget Committee. The department may not implement the prototype without the concurrence of the Department of Finance and 30 days' notification to the Joint Legislative Budget Committee. In developing the plan, the department shall fully consult with the Department of Finance, the Office of the Legislative Analyst, and representative child care and development contractors. (d) Except for separately authorized cost-of-living increases or expansions, the prototype shall neither increase aggregate state costs nor lower the total number of children served by the participating agencies. (e) An independent evaluation shall be conducted of the prototype. SEC. 12.5. Section 15750 of the Education Code is repealed. SEC. 13. Section 17001.5 of the Education Code is repealed. SEC. 14. Section 32237 of the Education Code is amended to read: 32237. The Superintendent of Public Instruction shall contract for an ongoing independent evaluation of the effectiveness of school violence reduction programs funded by grants pursuant to this article. The evaluation shall determine the effectiveness of each program based upon all of the following criteria: (a) A reduction in incidents of school violence at the schoolsite where the school violence reduction program is conducted. (b) A reduction in the number of suspensions or expulsions of pupils for violent behavior at the schoolsite where the school violence reduction program is conducted. (c) A comparison of incidents of school violence with schools of similar size and pupils of similar socioeconomic background as the schoolsite where the school violence reduction program is conducted. SEC. 15. Section 32239.5 of the Education Code is amended to read: 32239.5. (a) This article shall be known, and may be cited, as the Machado School Violence Prevention and Response Act of 1999. (b) A School Violence Prevention and Response Task Force is hereby established, which shall consist of the following members: (1) The Superintendent of Public Instruction, the Attorney General, the Director of the Office of Criminal Justice Planning, and the Secretary for Education shall be ex officio voting members of the School Violence Prevention and Response Task Force, and shall serve as cochairs of the task force. (2) Twelve members representing educators, health care practitioners, and members of the law enforcement community, each with expertise in school-based crisis prevention and response appointed as follows: (A) The Director of the Office of Criminal Justice Planning and the Attorney General shall each appoint three members to the task force. These appointments shall include representatives of the law enforcement and victims' services community. These appointments may include persons with expertise in juvenile justice, gang violence prevention, juvenile probation, victim assistance programs, crisis management, or academic experts in criminology or juvenile delinquency. (B) The Superintendent of Public Instruction and the Secretary for Education shall each appoint three members to the task force. These appointments shall include representatives of the education and health care practitioner communities. These appointments may include classroom educators, school administrators, school counselors, school psychologists, parents, pupils, mental health providers, or academic experts in child development or violence prevention. (c) The members of the task force may not receive a salary for their services but shall be reimbursed for their actual and necessary travel and other expenses incurred in the performance of their duties. (d) The task force shall do all of the following: (1) Analyze and evaluate current statutes and programs in the area of school-based crisis prevention and response. (2) Make appropriate policy recommendations on how to enhance state and local programs and training to adequately prepare school districts and county offices of education to meet the challenges stemming from disruptive and violent acts, or both, on or near school campuses. These recommendations shall include a discussion regarding the manner in which the recommendations may be implemented within existing resources. (3) Suggest methods for training school personnel on how to recognize risk indicators for pupils that could eventually lead to violence. These suggested methods shall include how to refer pupils to trained personnel, such as school psychologists, counselors, mental health providers, or other designated appropriate staff. (4) Hold at least two public meetings. (e) Each of the cochairs shall have the authority to convene subcommittee meetings. However, any findings or recommendations made by a subcommittee, or by any of the other members of the task force, shall be approved by at least three of the four voting members of the task force in order to be incorporated in the report described in paragraph (5) of subdivision (c). (f) The Office of Criminal Justice Planning shall make staff resources available to the task force. SEC. 16. Section 35179.2 of the Education Code is amended to read: 35179.2. (a) Subject to funds being appropriated for this purpose, the California Interscholastic Federation is encouraged to establish a statewide panel that includes, at a minimum, the following members: school administrators, school board members, coaches of secondary school athletics, teachers, parents, athletic directors, representatives of higher education, pupils participating in athletics at the secondary school level, and a representative of the State Department of Education, as described in Section 35179.3. (b) The panel established pursuant to subdivision (a) is encouraged to develop an application process whereby public secondary schools may submit applications to the State Department of Education for grants to offset the costs of education and training of athletic coaches in an education and training program that emphasizes the components set forth in subdivision (c) of Section 35179.1. (c) The panel established pursuant to subdivision (a) is encouraged to evaluate applications submitted to the State Department of Education pursuant to subdivision (b) and to recommend applicants to the State Department of Education for the award of dollar-for-dollar matching grants, in an amount determined by the department. SEC. 17. Section 44252.9 of the Education Code is amended to read: 44252.9. (a) The Legislature finds and declares that the effective education of pupils in kindergarten and grades 1 to 12, inclusive, depends substantially on the academic skills, content competence, and pedagogical preparation of classroom teachers. It is essential that the ongoing administration of the state basic skills proficiency exam for teachers be carried out at all times by a competent contractor who adheres to high standards using sound, effective, and defensible assessment procedures. The administration of this exam is jeopardized by the increasing costs of the exam and statutory restrictions that remain in effect. To preserve and strengthen the screening of teacher candidates in relation to their basic academic skills, the Legislature intends to maintain the state examination that is administered by the commission pursuant to Section 44252.5, and to support needed improvements in exam-related services to teaching credential candidates. (b) The commission shall make improvements to increase access to the state basic skills proficiency test, and shall improve exam-related services provided to candidates for teaching credentials, which may include, but are not limited to, the following: (1) Administering the test more frequently. (2) Increasing the number of testing locations. (3) Making the exam available year-round by appointment at examination centers that are highly secure and professionally supervised. (c) The commission shall adopt these improvements in consultation with the Department of Finance and shall report all improvements to the Legislature, no later than January 1, 2003. SEC. 18. Section 44259.5 of the Education Code is amended to read: 44259.5. (a) By July 1, 2002, the commission shall ensure that an accredited program of professional preparation offered pursuant to paragraph (3) of subdivision (b) of Section 44259 satisfies standards established by the commission for the preparation of teachers for all pupils, including English language learners. The standards shall be based upon an independent job analysis of the essential knowledge, skills, and abilities needed by all classroom teachers to develop English language skills while maintaining academic progress across the curriculum and shall take into account existing standards and test specifications for the Crosscultural, Language and Academic Development certificate. The commission shall ensure that the standards established pursuant to this subdivision are aligned with the requirements of subparagraph (A) of paragraph (4) of subdivision (b) of Section 44259 and Section 60200.4. (b) To maintain current statutory options for teachers in completing credential requirements, the commission shall provide candidates, including candidates prepared in other states, with an examination route to fulfilling the requirements pursuant to subdivision (a) for essential preparation to teach English language learners. The commission shall provide for a comprehensive validity study of the examination before implementing this section. (c) Commencing July 1, 2003, the commission may not issue a preliminary teaching credential to an applicant pursuant to subdivision (b) of Section 44259 unless the applicant has satisfied the standards and requirements established pursuant to subdivision (a) or has an authorization to provide services to English language learners issued pursuant to Section 44253, 44253.1, 44253.2, 44253.3, 44253.4, or 44253.10. (d) Commencing July 1, 2003, an approved program of beginning teacher induction offered pursuant to paragraph (2) of subdivision (c) of Section 44259 shall satisfy standards established by the commission and the Superintendent of Public Instruction for beginning teacher induction for teachers for all pupils, including English language learners. The commission and the superintendent shall incorporate in these standards the essential knowledge, skills, and abilities needed for first-year and second-year certificated teachers to apply effective instructional strategies that assist pupils to develop English language proficiency while maintaining academic progress across the curriculum. The standards shall be based upon the independent job analysis of the essential knowledge, skills, and abilities for all classroom teachers conducted pursuant to subdivision (a). (e) Commencing July 1, 2005, the commission may not initially issue a professional clear teaching credential to an applicant pursuant to subdivision (c) of Section 44259 unless the applicant has satisfied the standards and requirements established pursuant to subdivision (d) or has an authorization to provide services to English language learners issued pursuant to Section 44253, 44253.1, 44253.2, 44253.3, 44253.4, or 44253.10. (f) No provision of this section applies to the University of California except to the extent that the Regents of the University of California, by appropriate resolution, make that provision applicable. (g) A candidate for a teaching credential pursuant to Section 44259 is entitled to earn and receive the credential by fulfilling the standards and requirements for the credential that were in effect when the candidate entered accredited preparation or approved induction for the credential. (h) By July 1, 2001, the commission shall report to the education policy committees in each house of the Legislature on the new standards it is required to develop pursuant to subdivision (a) and the progress of the implementation of the new standards by accredited programs of professional preparation. (i) By July 1, 2002, the commission shall report to the education policy committees in each house of the Legislature on the outcomes and recommendations for the implementation of the validity study required pursuant to subdivision (b). SEC. 19. Section 44279.2 of the Education Code is amended to read: 44279.2. (a) The superintendent and the commission shall jointly administer the Beginning Teacher Support and Assessment System pursuant to this chapter. In administering this section, the superintendent and the commission shall provide for or contract for all of the following: (1) Establishment of requirements for reviewing and approving teacher induction programs. (2) Development and administration of a system for ensuring teacher induction program quality and effectiveness. For the purposes of this section, "program effectiveness" means producing excellent program outcomes in relation to the purposes defined in subdivision (b) of Section 44279.1. For the purposes of this section, "program quality" means excellence with respect to program factors, including, but not limited to, all of the following: (A) Program goals. (B) Design resources. (C) Management, evaluation, and improvement of the program. (D) School context and working conditions. (E) Support and assessment services to each beginning teacher. (3) Developing purposes and functions for reviewing and approving supplemental grants and standards for program clusters and program consultants, as defined pursuant to Section 44297.7. (4) Improving and refining the formative assessment system. (5) Improving and refining professional development materials and strategies for all personnel involved in implementing induction programs. (6) Conducting and tracking research related to beginning teacher induction. (7) Periodically evaluating the validity of the California Standards for the Teaching Profession adopted by the commission in January 1997 and the Standards of Quality and Effectiveness for Beginning Teacher Support and Assessment Program adopted by the commission in 1997 and making changes to those documents, as necessary. (b) As part of the Beginning Teacher Support and Assessment System, the commission and the superintendent shall establish requirements for local teacher induction programs. (c) A school district or consortium of school districts may apply to the superintendent for funding to establish a local teacher induction program pursuant to this section. From amounts appropriated for the purposes of this section, the superintendent shall allocate three thousand dollars ($3,000) for each beginning teacher participating in the program. Commencing with the 1998-99 fiscal year and each fiscal year thereafter that amount shall be adjusted by the inflation factor set forth in Section 42238.1. To be eligible to receive funding, a school district or consortium of school districts shall, at a minimum, meet all of the following requirements: (1) Develop, implement, and evaluate teacher induction programs that meet the Quality and Effectiveness for Beginning Teacher Induction Program Standards adopted by the commission in 1997. (2) Support beginning teachers in meeting the competencies described in the California Standards for the Teaching Profession, adopted by the commission in January 1997. (3) Meet criteria for the cost-effective delivery of program services pursuant to subdivision (a) of Section 44279. (4) From amounts received for the Mentor Teacher Program pursuant to Article 4 (commencing with Section 44490) of Chapter 2, or from other local, state, or resources available for the purposes of teacher induction programs, contribute not less than two thousand dollars ($2,000) for the costs of each beginning teacher served in the induction program. SEC. 20. Section 44329 of the Education Code is repealed. SEC. 21. Section 44784 of the Education Code is amended to read: 44784. (a) The institution selected under Section 44782 shall be assisted by an advisory committee, the function of which shall be: (1) To review and comment on plans for the establishment of the resource centers. (2) To assist in determining criteria for local and private funding matches to be required for the operation of each resource center. (3) To advise the project on the selection of proposals for funding. (b) The advisory committee shall contain the following members: (1) Ten members appointed by representatives of higher education, two each to be selected by the President of the University of California, the Chancellor of the California State University, the Chancellor of the California Community Colleges, the Association of Independent California Colleges and Universities, and the California Postsecondary Education Commission. At least one of the appointees of each of these appointing entities shall be an elementary or secondary school classroom teacher with classroom experience in international studies instruction. (2) Four public members with special interest or competence in international affairs, representing business, community, and subject area educational organizations, one each to be selected by the Superintendent of Public Instruction, the Governor, the Speaker of the Assembly, and the Senate Committee on Rules. (3) Three certificated school teachers, or other educators, with classroom experience in international studies instruction, to be designated by the institution selected to operate the project. SEC. 22. Section 49413 of the Education Code is amended to read: 49413. (a) The Legislature recognizes the importance of first aid and cardiopulmonary resuscitation training. In enacting this section, it is the intent of the Legislature to encourage school districts and schools, individually or jointly, to develop a program whereby their staff and pupils understand the importance of this training and have an appropriate opportunity to develop these skills. (b) A school district or school, individually or jointly with another school district or school, may provide a comprehensive program in first aid or cardiopulmonary resuscitation (CPR) training, or both, to pupils and employees. The program shall be developed using the following guidelines: (1) The school district or school collaborates with existing local resources, including, but not limited to, parent teacher associations, hospitals, school nurses, fire departments, and other local agencies that promote safety, to make first aid or CPR training, or both, available to the pupils and employees of the school district or school. (2) Each school district that develops a program, or the school district that has jurisdiction over a school that develops a program, compiles a list of resources for first aid or CPR information, to be distributed to all of the schools in the district. (3) The first aid and CPR training are based on standards that are at least equivalent to the standards currently used by the American Red Cross or the American Heart Association. SEC. 23. Section 49590.5 of the Education Code is repealed. SEC. 24. Section 52052 of the Education Code is amended to read: 52052. (a) (1) By July 1, 1999, the Superintendent of Public Instruction, with approval of the State Board of Education, shall develop an Academic Performance Index (API), to measure the performance of schools, especially the academic performance of pupils, and to demonstrate comparable improvement in academic achievement by all numerically significant ethnic and socioeconomically disadvantaged subgroups within schools. (2) For purposes of this section, a numerically significant ethnic or socioeconomically disadvantaged subgroup is a subgroup that constitutes at least 15 percent of a school's total pupil population and consists of at least 30 pupils. An ethnic or socioeconomically disadvantaged subgroup of at least 100 pupils constitutes a numerically significant subgroup, even if the subgroup does not constitute 15 percent of the total enrollment at a school. (3) The API shall consist of a variety of indicators currently reported to the State Department of Education including, but not limited to, the results of the achievement test administered pursuant to Section 60640, attendance rates for pupils and certificated school personnel for elementary schools, middle schools, and secondary schools, and the graduation rates for pupils in secondary schools. (A) The pupil data collected for the API that comes from the achievement test administered pursuant to Sections 60640 and 60644 and the high school exit examination administered pursuant to Section 60851, when fully implemented, shall be disaggregated by special education status, English language learners, socioeconomic status, gender and ethnic group. Only the test scores of pupils who were enrolled in a school district in the prior fiscal year may be included in the test results reported in the API. Results of the achievement test and other tests specified in subdivision (b) shall constitute at least 60 percent of the value of the index. (B) Before including high school graduation rates and attendance rates in the index, the Superintendent of Public Instruction shall determine the extent to which the data is currently reported to the state and the accuracy of the data. (b) Pupil scores from the following tests, when available and when found to be valid and reliable for this purpose, shall be incorporated into the API: (1) The assessment of the applied academic skills matrix test developed pursuant to Section 60604. (2) The nationally normed test as augmented pursuant to paragraph (1) of subdivision (f) of Section 60644. (3) The high school exit examination. (c) Based on the API, the Superintendent of Public Instruction shall develop, and the State Board of Education shall adopt, expected annual percentage growth targets for all schools based on their API baseline score as measured in July 1999. Schools are expected to meet these growth targets through effective allocation of available resources. For schools below the statewide API performance target adopted by the State Board of Education pursuant to subdivision (d), the minimum annual percentage growth target shall be 5 percent of the difference between a school's actual API score and the statewide API performance target, or one API point, whichever is greater. Schools at or above the statewide API performance target shall have, as their growth target, maintenance of their API score above the statewide API performance target. However, the State Board of Education may set differential growth targets based on grade level of instruction and may set higher growth targets for the lowest performing schools because they have the greatest room for improvement. To meet its growth target, a school shall demonstrate that the annual growth in its API is equal to or more than its schoolwide annual percentage growth target and that all numerically-significant ethnic and socioeconomically disadvantaged subgroups, as defined in subdivision (a) of Section 52052, are making comparable improvement. (d) Upon adoption of state performance standards by the State Board of Education, the Superintendent of Public Instruction shall recommend, and the State Board of Education shall adopt, a statewide API performance target that includes consideration of performance standards and represents the proficiency level required to meet the state performance target. When fully developed, schools may either meet the state target or meet their growth targets to be eligible for the Governor's Performance Award Program as set forth in Section 52057. (e) Beginning in June 2000, the API shall be used for both of the following: (1) Measuring the progress of schools selected for participation in the Immediate Intervention/Underperforming Schools Program pursuant to Section 52053. (2) Ranking all public schools in the state for the purpose of the High Achieving/Improving Schools Program pursuant to Section 52056. (f) Only comprehensive high schools, middle schools, and elementary schools that have a population of 100 or more pupils may be included in the API ranking. (g) By July 1, 2000, the Superintendent of Public Instruction, with the approval of the State Board of Education, shall develop an alternative accountability system for schools with fewer than 100 pupils, and for schools under the jurisdiction of a county board of education or a county superintendent of schools, community day schools, and alternative schools, including continuation high schools and independent study schools. SEC. 25. Section 52656 of the Education Code is amended to read: 52656. (a) Notwithstanding any other provision of law, school districts that received apportionment for extraordinary needs in English as a second language and basic skills from Provision (4) of Schedule (a) of Item 6110-156-001 of the Budget Act of 1991 for the 1991-92 fiscal year shall continue to receive those funds in the school district's adult block entitlement in the 1992-93 fiscal year, and each fiscal year thereafter. (b) Commencing in the 1993-94 fiscal year, school districts that receive an apportionment from subdivision (a) shall give priority to eligible immigrants in need of courses pursuant to paragraphs (2), (3), and (4) of subdivision (a) of Section 41976 and Section 52653 of the Education Code. (c) School districts are not restricted by this chapter from providing classes for immigrants pursuant to paragraph (4) of subdivision (a) of Section 41976 of the Education Code with other funds for adult education that are available to the district. SEC. 26. Section 54696 of the Education Code is amended to read: 54696. (a) The Superintendent of Public Instruction shall contract for a four-year independent review of the effectiveness of the newly funded California Partnership Academies. Preliminary results shall be reported after the 1994-95 fiscal year and a final evaluation shall be performed after the 1996-97 fiscal year. The independent review shall include, but not be limited to, all of the following: (1) An analysis of the extent and degree of success of business and industry involvement, including in-kind contributions, mentor services, summer jobs, and assistance in job placement. (2) The number of students obtaining employment, entering advanced training programs, and enrolling in postsecondary institutions after graduation. (3) Attendance rates and credits achieved. (4) The number of students completing their high school education and graduating. (5) An analysis of the extent to which components of the partnership program have been incorporated into the regular program of the school. (b) The Legislature finds that each new academy requires technical assistance for the academy team, administrators, teachers, and private sector participants in the multiple aspects of the academy program that differ from the standard high school program. To provide for the transfer of the experiences gained in the operation of currently successful academies to new academies, the Superintendent of Public Instruction shall develop a technical assistance team whose members have prior involvement in successful academy operation and make their expertise available, as necessary, to each new academy during its first two years of operation. SEC. 27. Section 56885 of the Education Code is amended to read: 56885. The Department of Finance shall, after consultation with appropriate state agencies, ascertain the amounts of funds, if any, that should be transferred between state agencies in order to achieve the purposes of the bill. Any savings that may occur to any program due to maximized use of federal funds or services to individuals with exceptional needs as provided in this article shall be utilized to defer projected increased costs to meet full mandates of the Individuals with Disabilities Education Act (20 U.S.C. Sec. 1400 et seq.). SEC. 28. Section 58523 of the Education Code is amended to read: 58523. The governing board of a school district receiving a grant pursuant to this chapter shall establish a single gender academy as a magnet school pursuant to its general power established under Section 35160 or as an alternative education magnet school pursuant to Chapter 3 (commencing with Section 58500). SEC. 29. Section 58922 of the Education Code is repealed. SEC. 30. Section 60810 of the Education Code is amended to read: 60810. (a) (1) The Superintendent of Public Instruction shall review existing tests that assess the English language development of pupils whose primary language is a language other than English. The tests shall include, but not be limited to, an assessment of achievement of these pupils in English reading, speaking, and written skills. The superintendent shall determine which tests, if any, meet the requirements of subdivisions (b) and (c). (2) If no suitable test exists, the superintendent shall explore the option of a collaborative effort with other states to develop a test or series of tests and share test development costs. If no suitable test exists, the superintendent, with approval of the State Board of Education, may contract with a local education agency to develop a test or series of tests that meets the criteria of subdivisions (b) and (c) or may contract to modify an existing test or series of tests so that it will meet the requirements of subdivisions (b) and (c). (3) Not later than August 15, 1999, the Superintendent of Public Instruction and the State Board of Education shall release a request for proposals for the development of the test or series of tests required by this subdivision. Not later than September 15, 1999, the State Board of Education shall select a contractor or contractors for the development of the test or series of tests required by this subdivision, to be available for administration during the 2000-01 school year. (b) The test or series of tests developed or acquired pursuant to subdivision (a) shall have sufficient range to assess pupils in kindergarten and grades 1 to 12, inclusive, in English reading, speaking, and written skills, except that pupils in kindergarten and grade 1 shall be assessed in reading and written communication only to the extent that comparable standards and assessments in English and language arts are used for native speakers of English. (c) The test or series of tests shall meet all of the following requirements: (1) Provide sufficient information about pupils at each grade level to determine levels of proficiency ranging from no English proficiency to fluent English proficiency with at least two intermediate levels. (2) Have psychometric properties of reliability and validity deemed adequate by technical experts. (3) Be capable of administration to pupils with any primary language other than English. (4) Be capable of administration by classroom teachers. (5) Yield scores that allow comparison of a pupil's growth over time, can be tied to readiness for various instructional options, and can be aggregated for use in the evaluation of program effectiveness. (6) Not discriminate on the basis of race, ethnicity, or gender. (7) Be aligned with the standards for English language development adopted by the State Board of Education pursuant to Section 60811. (d) The test shall be used for the following purposes: (1) To identify pupils who are limited English proficient. (2) To determine the level of English language proficiency of pupils who are limited English proficient. (3) To assess the progress of limited-English-proficient pupils in acquiring the skills of listening, reading, speaking, and writing in English. SEC. 31. Section 66015 of the Education Code is amended to read: 66015. It is the intent of the Governor and the Legislature, in cooperation with the Trustees of the California State University, to do both of the following: (a) Place a major priority on resolving the serious problem of impacted and overcrowded classes, not only with respect to the California State University, but throughout public postsecondary education. (b) Ensure that needy students receive financial aid sufficient to cover the cost of fee increases for each academic year. SEC. 31.5. Section 66755 of the Education Code is amended to read: 66755. (a) The California Community Colleges, the California State University, and the University of California shall evaluate the impact of the program established by this chapter, and shall report to the California Postsecondary Education Commission on or before June 30, 2002, on student use, revenue implications, and other issues that may be identified to judge satisfactorily the program's efficiency and determine whether it should be established permanently. (b) The California Postsecondary Education Commission shall prepare a report based on the information received from the segments pursuant to subdivision (a) and, notwithstanding Section 7550.5 of the Government Code, shall present the report, with recommendations, to the Governor and the Legislature on or before December 1, 2002. If, in the determination of the commission, the program established by this chapter appears to be underutilized, the report shall include the comments of the commission with respect to the reasons for the underutilization and options for increasing participation in the program. SEC. 32. Section 66293 of the Education Code is repealed. SEC. 33. Section 67301 of the Education Code is amended to read: 67301. (a) The Board of Governors of the California Community Colleges and the Trustees of the California State University shall, and the Regents of the University of California may, adopt rules and regulations prescribing requirements similar to those provided by Section 22511.5 of the Vehicle Code and all other applicable sections of the Vehicle Code relating to parking exemptions for disabled persons, as defined by Section 295.5 of the Vehicle Code, and disabled veterans, as defined by Section 295.7 of the Vehicle Code. The rules and regulations shall include authorization to park for unlimited periods in time-restricted parking zones and to park in any metered parking space without being required to pay any parking meter fee or to display a parking permit other than pursuant to Section 5007 or 22511.55 of the Vehicle Code, provided those spaces are otherwise available for use by the general public. The adopted regulations shall authorize parking at campus facilities and grounds by students with disabilities and by persons providing transportation services to students with disabilities. Except as otherwise provided in this section, students with disabilities and persons providing transportation to students with disabilities shall be required to display a valid parking permit, if applicable, for the campus attended. Nothing in this section prohibits the adoption of rules and regulations providing greater accessibility for students with disabilities and persons providing transportation services to those students. The adopted rules and regulations shall exempt students with disabilities and persons providing transportation services to these persons from any applicable parking restrictions in areas including, but not limited to, metered parking spaces and parking facilities designated for use by students, faculty, administrators, and employees. (b) The Regents of the University of California may provide, and the Trustees of the California State University shall provide, and the Board of Governors of the California Community Colleges shall adopt rules and regulations requiring the governing board of each community college district to provide, visitor parking at each campus of the university or district at no charge for a disabled person, as defined by Section 295.5 of the Vehicle Code, or disabled veteran, as defined by Section 295.7 of the Vehicle Code, or as defined by each segment's policy concerning the provision of services to students with disabilities, whichever is more inclusive, and for persons providing transportation services to individuals with disabilities. Whenever parking designated for a disabled person is provided on any campus of the University of California, the California State University, or a community college district in a facility controlled by a mechanical gate, that university or district shall also provide accommodations for any person whose disability prevents him or her from operating the gate controls. These accommodations may be provided by making arrangements for disabled persons to be assisted in the operation of the gate controls, or through other effective and reasonable means the university or district may devise. Nothing in this subdivision shall be construed to require the replacement or elimination of special parking facilities restricted for the use of disabled persons located on the campuses of these universities or districts. It is the intent of the Legislature that community college districts shall utilize the proceeds from parking fees charged to community college students and employees to offset costs incurred by these districts in accommodating disabled persons pursuant to the requirements of this section. (c) The Board of Governors of the California Community Colleges and the Trustees of the California State University shall, and the Regents of the University of California may, establish procedures for the purpose of conducting biennial audits to determine whether individual campuses are in compliance with all state building code requirements relating to the location and the designation of minimum percentages of available campus parking spaces for use by students with disabilities, as determined by guidelines of Section 14679 of the Government Code, Section 2-7102 of Title 24 of the California Code of Regulations, Part 40 (commencing with Section 40.1) of Title 24 of the Code of Federal Regulations, Section 1190.31 of Title 36 of the Code of Federal Regulations, or their successor provisions, or any other applicable provisions of law, whichever provides the greater accessibility for disabled persons. SEC. 34. Section 67359.20 of the Education Code is amended to read: 67359.20. Any funds from the 1988 Higher Education Capital Outlay Bond Fund, the June 1990 Higher Education Capital Outlay Bond Fund, and the 1992 Higher Education Capital Outlay Bond Fund, not to exceed a combined total of seventy-five million dollars ($75,000,000), are hereby appropriated to the Director of Finance for allocation to the University of California, the California State University, and the California Community Colleges to meet the timely allocation of matching grants to repair, replace, reconstruct, renovate, or retrofit on-campus buildings or facilities, including utilities, and streets and roads that were damaged in the Northridge earthquake of January 17, 1994. SEC. 35. Section 69733 of the Education Code is repealed. SEC. 36. Section 71028 of the Education Code is amended to read: 71028. The board of governors shall adopt regulations to ensure that the California Community Colleges, as a system, establish and apply the statewide participation goals for contracting with minority business enterprises and women business enterprises specified in Section 10115 of the Public Contract Code. The statewide participation goal for the California Community Colleges shall be based upon the total dollar amount of contracts awarded, with not less than 15 percent being awarded to minority business enterprises, and not less than 5 percent being awarded to women business enterprises. The regulations adopted by the board of governors shall be adapted from and consistent with the provisions of Article 1.5 (commencing with Section 10115) of Chapter 1 of Part 1 of the Public Contract Code. SEC. 37. Section 72681 of the Education Code is repealed. SEC. 38. Section 78217 of the Education Code is repealed. SEC. 39. Section 87104 of the Education Code is amended to read: 87104. (a) The Board of Governors of the California Community Colleges, out of funds appropriated for these purposes, (1) shall provide assistance to local community colleges in adopting and maintaining high-quality affirmative action programs; (2) develop and disseminate to public community college districts guidelines to assist these agencies in developing and implementing affirmative action employment programs; and (3) shall establish a technical assistance team to review the affirmative action plan of each community college district which fails to make measurable progress in meeting the goals and timetables of its adopted plan. The technical assistance team shall recommend appropriate actions to assure reasonable progress in improving success rates. The board of governors shall prescribe those conditions necessary to assure reasonable progress and otherwise meet the legal requirements of affirmative action. The conditions may include the withholding of allowances made pursuant to Sections 87482.6 and 87107. (b) The board of governors shall establish, by July 1, 1989, within the chancellor's office or through other means as deemed necessary, a major service function to assist community college districts in identifying, locating, and recruiting qualified members of underrepresented groups, and in establishing and maintaining effective affirmative action hiring procedures. (c) The board of governors shall, by March 15, 1989, develop and adopt a systemwide plan for strengthening faculty and staff affirmative action policies and programs in the California Community Colleges. SEC. 40. Section 89753 of the Education Code is amended to read: 89753. All appropriations for the support of the California State University and the trustees shall be subject to Section 13320 of the Government Code and applicable Budget Act restrictions, with the following exceptions: (a) The trustees may, with regard to funds appropriated for the support of the California State University, approve any transfer of funds between general fund appropriations, unless restricted by the Budget Act or any other act, and within and between any category designated in any schedule set forth for the appropriation. In addition, the trustees may authorize the augmentation of the amount available for a category designated in any schedule set forth for the appropriation by transfer from any of the other designated categories, including additional reimbursements and amounts receivable within the same schedule, and shall furnish the Joint Legislative Budget Committee and appropriate legislative fiscal committees a report of the authorizations given during the preceding quarter. (b) The trustees may approve travel, both within and outside the state, and the payment of allowances and expenses related to travel, moving, and the relocation of employees in accordance with the allowances established by the trustees. (c) The trustees may, within funds appropriated for the support of the California State University, establish new positions and make changes in existing positions and the position payroll roster. SEC. 41. Section 89761 of the Education Code is amended to read: 89761. (a) The California State University shall adhere to uniform accounting standards in accordance with Generally Accepted Accounting Principles (GAAP) for institutions of higher education. (b) In the 1993-94 fiscal year, the California State University on five campuses representing the diversity of the system in both size of student body and campus budget shall have an independent audit of all funds performed and an independent audit report prepared. (c) A copy of the audit reports shall be available for public inspection in the library of each campus of the university. (d) The costs associated with the annual independent audit and audits performed pursuant to Section 89045 shall be funded from existing resources. SEC. 42. Section 99105 of the Education Code is repealed. SEC. 43. Section 99306 of the Education Code is amended to read: 99306. The State Department of Education shall create an evaluation design for the Student Academic Partnership Program. School districts that receive grants under this chapter shall use this evaluation design to assess the effectiveness of their programs. These school districts shall transmit their assessments to the department. SEC. 44. Section 7571 of the Family Code is amended to read: 7571. (a) On and after January 1, 1995, upon the event of a live birth, prior to an unmarried mother leaving any hospital, the person responsible for registering live births under Section 102405 of the Health and Safety Code shall provide to the natural mother and shall attempt to provide, at the place of birth, to the man identified by the natural mother as the natural father, a voluntary declaration of paternity together with the written materials described in Section 7572. Staff in the hospital shall witness the signatures of parents signing a voluntary declaration of paternity and shall forward the signed declaration to the Department of Child Support Services within 20 days of the date the declaration was signed. A copy of the declaration shall be made available to each of the attesting parents. (b) No health care provider shall be subject to any civil, criminal, or administrative liability for any negligent act or omission relative to the accuracy of the information provided, or for filing the declaration with the appropriate state or local agencies. (c) The local child support agency shall pay the sum of ten dollars ($10) to birthing hospitals and other entities that provide prenatal services for each completed declaration of paternity that is filed with the Department of Child Support Services, provided that the local child support agency and the hospital or other entity providing prenatal services has entered into a written agreement that specifies the terms and conditions for the payment as required by federal law. (d) If the declaration is not registered by the person responsible for registering live births at the hospital, it may be completed by the attesting parents, notarized, and mailed to the Department of Child Support Services at any time after the child's birth. (e) Prenatal clinics shall offer prospective parents the opportunity to sign a voluntary declaration of paternity. In order to be paid for their services as provided in subdivision (c), prenatal clinics must ensure that the form is witnessed and forwarded to the Department of Child Support Services within 20 days of the date the declaration was signed. (f) Declarations shall be made available without charge at all local child support agency offices, offices of local registrars of births and deaths, courts, and county welfare departments within this state. Staff in these offices shall witness the signatures of parents wishing to sign a voluntary declaration of paternity and shall be responsible for forwarding the signed declaration to the Department of Child Support Services within 20 days of the date the declaration was signed. (g) The Department of Child Support Services, at its option, may pay the sum of ten dollars ($10) to local registrars of births and deaths, county welfare departments, or courts for each completed declaration of paternity that is witnessed by staff in these offices and filed with the Department of Child Support Services. In order to receive payment, the Department of Child Support Services and the entity shall enter into a written agreement that specifies the terms and conditions for payment as required by federal law. (h) The Department of Child Support Services and local child support agencies shall publicize the availability of the declarations. The local child support agency shall make the declaration, together with the written materials described in subdivision (a) of Section 7572, available upon request to any parent and any agency or organization that is required to offer parents the opportunity to sign a voluntary declaration of paternity. The local child support agency shall also provide qualified staff to answer parents' questions regarding the declaration and the process of establishing paternity. (i) Copies of the declaration filed with the Department of Child Support Services shall be made available only to the parents, the child, the local child support agency, the county welfare department, the county counsel, the Department of Child Support Services, and the courts. (j) Publicly funded or licensed health clinics, pediatric offices, Head Start programs, child care centers, social services providers, prisons, and schools may offer parents the opportunity to sign a voluntary declaration of paternity. In order to be paid for their services as provided in subdivision (c), publicly funded or licensed health clinics, pediatric offices, Head Start programs, child care centers, social services providers, prisons, and schools shall ensure that the form is witnessed and forwarded to the Department of Child Support Services. (k) Any agency or organization required to offer parents the opportunity to sign a voluntary declaration of paternity shall also identify parents who are willing to sign, but were unavailable when the child was born. The organization shall then contact these parents within 10 days and again offer the parent the opportunity to sign a voluntary declaration of paternity. SEC. 45. Section 256 of the Financial Code is repealed. SEC. 46. Section 8052 of the Financial Code is repealed. SEC. 47. Section 32955 of the Financial Code is repealed. SEC. 48. Section 1000.5 of the Fish and Game Code is amended to read: 1000.5. (a) The department shall prepare and submit periodic reports to the Governor and the Legislature on the status of selected freshwater fisheries and the status of selected ocean fisheries, which may include, but are not limited to, graphs of historical population trends, potential problems facing each discussed species, the effects that toxics in the environment are having on those species, any problems relating to disease, and any other considerations the department believes to be relevant to policy determinations affecting those fisheries. (b) The reports shall be prepared and submitted to the Governor and to the Legislature at least every two years, not later than January 1. (c) The report to the Legislature shall be referred to the Joint Committee on Fisheries and Aquaculture and to the respective policy committee in each house which considers matters relating to fish and game. (d) The department shall prepare the reports within its existing financial and personnel resources. SEC. 49. Section 1796 of the Fish and Game Code is amended to read: 1796. No bank site shall be qualified under Section 1785 on or after January 1, 2010. SEC. 50. Section 2079 of the Fish and Game Code is amended to read: 2079. The department shall, by January 30 of every third year, beginning January 30, 1986, prepare a report summarizing the status of all state listed endangered, threatened, and candidate species, and shall submit the report to the commission, the Legislature, the Governor, and all individuals who have notified the commission, in writing with their address, of their interest. This report shall include, but not be limited to, a listing of those species designated as endangered, threatened, and candidate species, a discussion of the current status of endangered, threatened, or candidate species, and the timeframes for the review of listed species pursuant to this article. SEC. 51. Section 2099 of the Fish and Game Code is repealed. SEC. 52. Section 2645 of the Fish and Game Code is amended to read: 2645. All proposed appropriations for the program shall be included in a section in the Budget Bill for the 1984-85 fiscal year and each succeeding fiscal year for consideration by the Legislature and shall bear the caption "Fish and Wildlife Habitat Enhancement Program." The section shall contain separate items for each project, each class of projects, or each element of the program for which an appropriation is made. All appropriations shall be subject to all limitations enacted in the Budget Act and to all fiscal procedures prescribed by law with respect to the expenditure of state funds unless expressly exempted from such laws by a statute enacted by the Legislature. The section in the Budget Act shall contain proposed appropriations only for the program elements and classes of projects contemplated by this chapter, and no funds derived from the bonds authorized by this chapter may be expended pursuant to an appropriation not contained in that section of the Budget Act. SEC. 53. Section 3409 of the Fish and Game Code is amended to read: 3409. The department shall report every three years on the wildlife habitat enhancement and management program conducted pursuant to this article. The report shall include a listing of landholders participating in the wildlife habitat enhancement and management program, the wildlife habitat enhancement and management activities undertaken, the wildlife species managed, and harvest data. The report shall be submitted to the Speaker of the Assembly, the Chairperson of the Senate Committee on Rules, and the chairpersons of the policy committees in each house that have jurisdiction over the subject of this article. The report shall also be made available to the public upon request. SEC. 54. Section 3951 of the Fish and Game Code is amended to read: 3951. The commission may authorize the taking of tule elk pursuant to Section 332. The department shall relocate tule elk in areas suitable to them in the State of California and shall cooperate to the maximum extent possible with federal and local agencies and private property owners in relocating tule elk in suitable areas under their jurisdiction or ownership. When economic or environmental damage occurs, emphasis shall be placed on managing each tule elk herd at a biologically sound level through the use of relocation, sporthunting, or other appropriate means as determined by the department after consulting with local landowners. The number of tule elk in the Owens Valley shall not be permitted to increase beyond 490, or any greater number hereafter determined by the department to be the Owens Valley's holding capacity in accordance with game management principles. Within 180 days of the enactment of the bill which amended this section at the 1987 portion of the 1987-88 Regular Session of the Legislature, the department shall complete management plans for high priority areas, including, but not limited to, Potter Valley and Mendocino County. The plans shall include, but not be limited to: (a) Definition of the boundaries of the management area. (b) Characteristics of the tule elk herds within the management area. (c) The habitat conditions and trends within the management area. (d) Major factors affecting the tule elk population within the management area, including, but not limited to, conflicts with other land uses. (e) Management activities necessary to achieve the goals of the plan. SEC. 55. Section 4904 of the Fish and Game Code is amended to read: 4904. (a) The department shall biennially report the following to the Legislature: (1) The management units for which plans have been developed pursuant to Section 4901. (2) A summary of the data from the annual count conducted by the department for the purposes of subdivision (b) of Section 4902. (3) The number of license tags issued in the preceding season, and the number of mature Nelson bighorn rams taken under valid license tags in the preceding season. (4) Any instance known to the department of the unlawful or unlicensed taking of a bighorn sheep in this state and the disposition of any prosecution therefor. (5) The number of bighorn sheep relocated during the previous year, the area where reintroduced, a statement on the success of the reintroduction, and a brief description of any reintroduction planned for the following year. (b) The report which is due in 1991 shall be presented to the Legislature on or before July 1, 1991, and shall consist of a compilation of the results of the ongoing study conducted pursuant to this section each year since the enactment of this chapter and an assessment of the environmental impact of the hunting of Nelson bighorn sheep on the herds. SEC. 56. Section 6450 of the Fish and Game Code is amended to read: 6450. The department shall adopt regulations that provide for the control of aquatic plant pests using artificially introduced triploid grass carp under a permit issued by the department. The regulations shall do all of the following: (a) Restrict triploid grass carp introductions to those triploid grass carp that have been rendered sterile immediately after the eggs have been fertilized. (b) Require individual fish to be checked to ensure that a third, triploid, set of chromosomes has been retained, preventing further reproduction by that individual fish. (c) Limit aquatic plant pest control programs using triploid grass carp to the use of sterile triploid grass carp with documented certification of triploidy to ensure sterility. (d) Require the identification by tagging of individual fish as the property of each owner. (e) Require the posting of notices at stocked bodies of water declaring the penalties for removing triploid grass carp. (f) Limit the permits for the use of triploid grass carp in waters on golf courses located in residential areas to those waters that are determined by the department to be secure from the removal of triploid grass carp to unauthorized waters. (g) Provide for management of the triploid grass carp populations in a manner consistent with the provisions of this code where the department finds that such actions will benefit the long-term health of the state's biodiversity as a whole. (h) Until January 1, 1999, the regulations shall not authorize the issuance of permits for the use of triploid grass carp in waters located within condominium areas of any residential area for which a permit may not be issued pursuant to subdivision (f) except at three locations within the area authorized pursuant to this subdivision. The three locations shall be selected by the department in consultation with the Imperial Irrigation District. The limitation to three locations is necessary to enable monitoring of human-induced movement of triploid grass carp to unauthorized waters and to permit the evaluation of the impact of the experiment. SEC. 57. Section 6459 of the Fish and Game Code is repealed. SEC. 58. Section 6599 of the Fish and Game Code is amended to read: 6599. (a) On or before December 31 of each year, the director shall prepare and submit a report to the Legislature and the Legislative Analyst regarding the effectiveness of the program. (b) This section shall remain in effect only until January 1, 2003, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2003, deletes or extends that date. SEC. 59. Section 16533 of the Fish and Game Code is repealed. SEC. 60. Section 4101.5 of the Food and Agricultural Code is repealed. SEC. 61. Section 13127.93 of the Food and Agricultural Code is repealed. SEC. 62. Section 13135 of the Food and Agricultural Code is amended to read: 13135. The department and the State Department of Health Services shall jointly review the existing federal and state pesticide registration and food safety system and determine if the existing programs adequately protect infants and children from dietary exposure to pesticide residues. The review shall commence as early as possible in 1990, so that any policy or administrative adjustments determined to be necessary as a result of the joint review can be made on a timely basis. The department shall consult with the University of California and other qualified public and private entities in conducting the joint review. The joint review shall continue for a sufficient time in order to evaluate the report of infant exposure to pesticide residues, which is presently being undertaken by the National Academy of Sciences. Within six months of the official release of the National Academy of Sciences' study, the department shall finalize a report describing the evaluation that was conducted pursuant to this section, including any recommendations for modification of the existing regulatory system in order to adequately protect infants and children. SEC. 63. Section 14104 of the Food and Agricultural Code is repealed. SEC. 64. Section 76906 of the Food and Agricultural Code is amended to read: 76906. (a) All money that is collected by the director pursuant to this chapter shall be deposited in any bank, or other depository that is approved by the Director of Finance, allocated to the purposes of this chapter only, and disbursed by the director or the council only for the necessary expenses that are incurred by the council and the director in carrying out the purposes and provisions of this chapter, including expenses generated by the auditing requirement contained in this section. Money that is so collected shall be deposited and disbursed in conformity with appropriate auditing regulations which are prescribed by the director. The expenditure of the money is exempt from Section 925.6 and 16304 of the Government Code. (b) All expenditures by the council and the director shall be audited at least once every two years by one of the following means: (1) By contract with a certified public account. (2) By contract with a public accountant holding a valid permit issued by the California Board of Accountancy. (3) By contract with a public accounting firm. (4) By agreement with the Department of Finance. SEC. 70. Section 3114 of the Government Code is amended to read: 3114. The office shall be administered by a director who shall be appointed by and report to, the Governor. SEC. 71. Section 7585 of the Government Code is amended to read: 7585. (a) Whenever any department or any local agency designated by that department fails to provide a related service or designated instruction and service required pursuant to Section 7575 or 7576, and specified in the child's individualized education program, the parent, adult pupil, or any local education agency referred to in this chapter, shall submit a written notification of the failure to provide the service to the Superintendent of Public Instruction or the Secretary of Health and Welfare. (b) When either the Superintendent of Public Instruction or the Secretary of Health and Welfare receives a written notification of the failure to provide a service as specified in subdivision (a), a copy shall immediately be transmitted to the other party. The superintendent, or his or her designee, and the secretary, or his or her designee, shall meet to resolve the issue within 15 calendar days of receipt of the notification. A written copy of the meeting resolution shall be mailed to the parent, the local education agency, and affected departments, within 10 days of the meeting. (c) If the issue cannot be resolved within 15 calendar days to the satisfaction of the superintendent and the secretary, they shall jointly submit the issue in writing to the Director of the Office of Administrative Hearings, or his or her designee, in the State Department of General Services. (d) The Director of the Office of Administrative Hearings, or his or her designee, shall review the issue and submit his or her findings in the case to the superintendent and the secretary within 30 calendar days of receipt of the case. The decision of the Director of the Office of Administrative Hearings, or his or her designee, shall be binding on the departments and their designated agencies who are parties to the dispute. (e) If the meeting, conducted pursuant to subdivision (b), fails to resolve the issue to the satisfaction of the parent or local education agency, either party may appeal to the Director of the Office of Administrative Hearings, whose decision shall be the final administrative determination and binding on all parties. (f) Whenever notification is filed pursuant to subdivision (a), the pupil affected by the dispute shall be provided with the appropriate related service or designated instruction and service pending resolution of the dispute, if the pupil had been receiving the service. The Superintendent of Public Instruction and the Secretary of Health and Welfare shall ensure that funds are available for provision of the service pending resolution of the issue pursuant to subdivision (e). (g) Nothing in this section prevents a parent or adult pupil from filing for a due process hearing under Section 7586. (h) The contract between the State Department of Education and the Office of Administrative Hearings for conducting due process hearings shall include payment for services rendered by the Office of Administrative Hearings which are required by this section. SEC. 73. Section 8654.1 of the Government Code is amended to read: 8654.1. (a) The Legislature finds and declares that financial assistance is essential to meet disaster-related necessary expenses of the state and local governments and the serious needs of individuals or families affected by the Northridge earthquake which occurred January 17, 1994. The Legislature further finds and declares that the federal government will advance to the state, and will authorize local entities to advance from specified federal funds made available to them, the nonfederal share of the costs of this financial assistance. (b) In order to implement the advance of the nonfederal share from federal funds, in accordance with subdivision (a), the Director of Finance may enter into agreements for the acceptance of these advances, subject to the following: (1) Funds may be obtained directly from agencies of the federal government or from funds provided to local agencies by the federal government. (2) Advances may be accepted beginning in the 1994-95 fiscal year, and in no event later than the 1997-98 fiscal year. (3) The cumulative amount of advances accepted shall not exceed three hundred million dollars ($300,000,000), unless additional amounts are authorized subject to the 30-day notification of the Joint Legislative Budget Committee under Section 28 of the 1994 Budget Act and any substantially similar provision of subsequent budget acts. The state shall accept as advances only so much as may be needed to pay the expenses incurred herein and as may be repaid, consistent with this section, in a short period of time, having due regard for the current financial obligations of the state. (4) Funds received by the state shall be deposited in the Special Deposit Fund, subject to Article 2 (commencing with Section 16370) of Chapter 2 of Part 2 of Division 4, and may be expended, allocated, or transferred, upon order of the Department of Finance, only to meet the nonfederal share of disaster assistance costs incurred by state or local agencies as a result of the Northridge earthquake. (5) Funds received under this section, together with interest at a rate agreed upon by the state and federal or local agencies involved, shall be repaid, upon order of the Director of Finance, to the federal government or advancing local agency, from the General Fund as soon as the state is able to do so, but in no event shall any advance remain outstanding after July 31, 1997. The state shall repay no less than one-third of the funds advanced in each of the 1995-96, 1996-97 and 1997-98 fiscal years. SEC. 74. Section 8670.55 of the Government Code is amended to read: 8670.55. (a) The committee shall provide recommendations to the administrator, the State Lands Commission, the California Coastal Commission, and the State Interagency Oil Spill Committee, on any provision of this chapter including the promulgation of all rules, regulations, guidelines, and policies. (b) The committee may, at its own discretion, study, comment on, or evaluate, any aspect of oil spill prevention and response in the state. To the greatest extent possible, these studies shall be coordinated with studies being done by the federal government, the administrator, the State Lands Commission, the State Water Resources Control Board, and other appropriate state and international entities. Duplication with the efforts of other entities shall be minimized. (c) The committee may attend any drills called pursuant to Section 8601.10 or any oil spills, if practicable. (d) The committee shall report biennially to the Governor and the Legislature on their evaluation of oil spill response and preparedness programs within the state annually and may prepare and send any additional reports they determine to be appropriate to the Governor and the Legislature. SEC. 74.1. Section 8855.5 of the Government Code is repealed. SEC. 74.2. Section 8855.7 of the Government Code is repealed. SEC. 74.3. Section 8855.8 of the Government Code is repealed. SEC. 75. Section 8879.3 of the Government Code is amended to read: 8879.3. The Seismic Retrofit Bond Fund of 1996 is hereby created in the State Treasury. The proceeds of bonds issued and sold pursuant to this chapter for the purposes specified in this chapter are hereby appropriated, without regard to fiscal years, to the Department of Finance for allocation in the following manner: (a) Two billion dollars ($2,000,000,000) for the seismic retrofit of state-owned highways and bridges, including toll bridges, throughout the state. Funds allocated by the California Transportation Commission for this purpose shall be deposited in the 1996 Seismic Retrofit Account, which is hereby created in the fund, and, upon deposit, are continuously appropriated to the Department of Transportation. Funds may be used to match any available federal funds for transportation purposes or may be used without matching federal funds to reconstruct, replace, or retrofit state-owned highways and bridges, including toll bridges. (b) Funds described in this section shall be spent exclusively for the seismic retrofit of state-owned toll bridges in an amount equal to six hundred fifty million dollars ($650,000,000). (c) The funds in the 1996 Seismic Retrofit Account are available for borrowing only for cash-flow purposes of the State Highway Account, and the funds borrowed shall be repaid to the account within one year. In addition, the proceeds of the bonds sold shall be used to reimburse the State Highway Account and the Consolidated Toll Bridge Fund for Phase Two retrofit expenditures incurred in the 1994-95 and 1995-96 fiscal years. SEC. 76. Section 10242.5 of the Government Code is amended to read: 10242.5. (a) The Legislative Counsel shall prepare and publish annually a report that lists all reports that state and local agencies are required or requested by law to prepare and file with the Governor or the Legislature, or both, in the future or within the preceding year. The list shall include all of the following information: (1) The name of the agency that is required or requested to prepare and file the report. (2) A brief description of the subject of the report. (3) The date on which the report is to be completed and filed. (4) The date on which the report was completed and filed. (b) Each report by the Legislative Counsel prepared pursuant to subdivision (a) shall be sent to each Member of the Legislature and shall be available to the public. The Legislative Counsel may charge a fee that does not exceed the direct cost of printing the report. (c) Each state and local agency that is required or requested by law to prepare a report described in subdivision (a) shall file a copy of the report with the Legislative Counsel. (d) As used in this section: (1) "Agency" includes any city, county, special district, department, board, bureau, or commission, including any task force or other similar body that is created by statute or resolution. "Agency" does not include the University of California. (2) "Report" includes any study or audit. SEC. 77. Section 10601 of the Government Code is amended to read: 10601. The Joint Legislative Retirement Committee is hereby created. The committee shall study and review the benefits, programs, actuarial condition, practices, investments and procedures of, and all legislation relating to the retirement systems for public officers and employees in this state and the trends and developments in the field of retirement. The committee has a continuing existence and may meet, act, and conduct its business at any place within this state during the sessions of the Legislature or any recess thereof, and in the interim period between sessions. A copy of each bill which affects any public employee retirement system shall be transmitted to the committee. SEC. 77.5. Section 11007 of the Government Code is amended to read: 11007. Except as expressly authorized by law or as specifically authorized by the Director of General Services, property belonging to the state shall not be insured against risk of damage or destruction by fire, and the policies of fire insurance upon any property belonging to the state shall not be renewed. This section is not applicable to the State Compensation Insurance Fund nor to property owned by it. Insurance authorized by this section shall be procured utilizing insurance procurement procedures approved by the Director of General Services. SEC. 78. Section 11815 of the Government Code is repealed. SEC. 79. Section 11818 of the Government Code is repealed. SEC. 80. Section 12095.60 of the Government Code is repealed. SEC. 81. Section 13332.06 of the Government Code is repealed. SEC. 82. Section 13336.5 of the Government Code is repealed. SEC. 83. Section 14035.6 of the Government Code is repealed. SEC. 84. Section 14070.2 of the Government Code is amended to read: 14070.2. (a) If authorized by the secretary, the department may, through an interagency agreement, transfer to a joint powers board, and the board may assume, all responsibility for administering passenger rail service in the corridor. Upon the date specified in the agreement, the board shall succeed to the department's powers and duties relative to that service, except that the department shall retain responsibility for developing budget requests for the service through the state budget process, which shall be developed in consultation with the board, and for coordinating service in the corridor with other passenger rail services in the state. (b) The interagency agreement shall be executed on or before December 31, 1996. (c) The secretary shall require the board to demonstrate the ability to meet the performance standards established by the secretary pursuant to subdivision (f) of Section 14031.8. SEC. 86. Section 14660.1 of the Government Code is amended to read: 14660.1. (a) Notwithstanding subdivision (b) of Section 14669, the Director of General Services, on behalf of the state, may enter into an agreement to convert an existing lease or leases for real property located in the City of Sacramento into a lease-purchase agreement for the purpose of acquiring office and parking facilities, and any other improvements, betterments, and facilities related thereto to provide office space for any state agency. The total purchase price, excluding financing costs, shall not exceed the market value as determined by the Department of General Services. The state may incur costs of financing, including, but not limited to, interest during acquisition of these facilities, interest payable on any interim loan from the Pooled Money Investment Account pursuant to Section 16312 or 16313, a reasonably required reserve fund, and the costs of issuance of interim financing or permanent financing, planning funds, and funds for environmental documents that may be necessary for acquisition of these facilities. (b) The Director of General Services may proceed with acquisition pursuant to subdivision (a) if the total cost through ownership based on an analysis of savings to the state over a period commensurate with the useful life of the building, including the factoring in of the cost of the building, is determined to be of significant savings to the state. (c) Revenue bonds, negotiable notes, and negotiable bond anticipation notes may be issued by the State Public Works Board pursuant to the State Building Construction Act of 1955 (Part 10b (commencing with Section 15800)), to finance the acquisition of an office building and parking facilities, and any other improvements, betterments, and facilities related thereto, as specified in subdivision (a). (d) The amount of the revenue bonds, negotiable notes, or negotiable bond anticipation notes to be sold shall equal the cost of acquisition and related costs, including financing, of the complex and facilities. (e) The amount of negotiable bond anticipation notes sold shall not exceed the amount of revenue bonds and negotiable notes authorized by this section. Any augmentation of the approved project costs shall be subject to Section 13332.11. The board may borrow funds for project costs from the Pooled Money Investment Account pursuant to Section 16312 or 16313. (f) The Director of General Services may lease the complex and facilities financed with the proceeds of the revenue bonds, negotiable notes, or negotiable bond anticipation notes from the board pursuant to this section for use by any state agency. (g) The Director of General Services shall not utilize this section for more than one project as outlined in the report provided for in subdivision (b). Any other agreements shall be entered into as otherwise provided for in this article. SEC. 89. Section 15277 of the Government Code is amended to read: 15277. There is hereby established within the department a Division of Telecommunications. The division shall include a policy and planning unit whose duties shall include, but not be limited to, all of the following: (a) Assessing the overall long-range telecommunications needs and requirements of the state considering both routine and emergency operations, performance, cost, state-of-the-art technology, multiuser availability, security, reliability, and such other factors deemed to be important to state needs and requirements. (b) Developing strategic and tactical policies and plans for telecommunications with consideration for the systems and requirements of state agencies, counties, and other local jurisdictions; and preparing an annual strategic telecommunications plan which includes the feasibility of interfaces with federal and other state telecommunications networks and services. (c) Recommending industry standards for telecommunications systems to assure multiuser availability and compatibility. (d) Providing advice and assistance in the selection of telecommunications equipment to ensure that the telecommunications needs of state agencies are met and that procurements are compatible throughout state agencies and are consistent with the state's strategic and tactical plans for telecommunications. (e) Providing management oversight of statewide telecommunications systems developments. (f) Providing for coordination of, and comment on, plans and policies and operational requirements from departments which utilize telecommunications in support of their principal function, such as the Office of Emergency Services, National Guard, health and safety agencies, and others with primary telecommunications programs. (g) Monitoring and participating on behalf of the state in the proceedings of federal and state regulatory agencies and in congressional and state legislative deliberations which have an impact on state government telecommunications activities. (h) Developing plans and policy regarding teleconferencing as an alternative to state travel and regarding emergency communications. SEC. 90. Section 15301.5 of the Government Code is repealed. SEC. 91. Section 15333.3 of the Government Code is amended to read: 15333.3. (a) The California Space and Technology Alliance shall exist to foster the development of activities in California related to space flight including, but not limited to, space vehicle launches, space education and job training infrastructure and research launches, manufacturing, academic research, applied research, economic diversification, business development, tourism, and education. The alliance shall also function as the California Spaceport Authority. (b) The alliance shall be an official recipient of grants from federal, state, or local government or from private businesses or individuals, for California space flight-related activities, including, but not limited to, studies, services, infrastructure improvements and modernization, and defense transition programs to the extent permitted by law. Any other entity legally eligible may also receive grant funds for these purposes. (c) The alliance shall be an advocate in support of California space flight-related activities, including, but not limited to, the businesses, facilities, programs, developments, alterations, modifications, educational activities, and other programs impacting those activities. (d) To the extent authorized under the Internal Revenue Code, the alliance shall define and promote changes in federal, state, and local statutes and regulations that will enhance the development of California space flight-related activities. (e) (1) To the extent authorized under the Internal Revenue Code, the alliance shall report biennially, no later than July 1 of the reporting year, on the economic and employment impacts of California space flight-related activities to the Governor and the Legislature and other state agencies and commissions developing laws, regulations, decisions, or determinations affecting those activities. (2) The alliance shall recommend to the Governor and the Legislature appropriate state funding mechanisms and amounts to promote development of California space flight-related activities. (f) With regard to the development of California space flight-related activities, the alliance shall provide recommendations to the Governor and the Legislature in the form of strategic planning documents, and shall act as the official policy advisor to the Governor and the Legislature. (g) On matters relating to space flight-related activities, the alliance shall act as the official representative of state government to the federal government, other state governments, local government agencies, and the private sector. (h) The alliance shall review space flight-related grant applications on behalf of the Trade and Commerce Agency, the Department of Transportation, and all other state agencies, and shall make recommendations to the agency for award of those grants. (i) The alliance shall act as a clearinghouse for space flight-related issues and information. (j) The alliance may perform the activities listed in Section 15346.6. (k) In accordance with the California Defense Conversion Act of 1993 (Article 3.7 (commencing with Section 15346)) and with the cooperation of the California Defense Conversion Council, the alliance shall coordinate with Regional Technology Alliances in the development of California space flight-related activities to achieve the optimum utilization of defense conversion and other grant funds. (l) The alliance shall foster and promote activities related to space flight in all parts of California, and all of its actions shall be taken to benefit the entire State of California. (m) The alliance shall be a membership organization open to any person or business interested in California space flight-related activities. It shall be organized as a nonprofit corporation with a board of directors composed of no less than 15, but no more than 27 members. Each director shall serve a three-year term, and shall serve no more than three consecutive terms. Board members shall be selected by the alliance, with no more than 40 percent selected from the space flight industry, no more than 30 percent from local government agencies, and no more than 30 percent from the general public and industries other than space flight. One-third of the board of directors shall be residents of northern California, one-third residents of southern California, and one-third residents of central California. Nonvoting, ex officio board directors may be added at the discretion of the board. (n) The alliance acting as a corporation may not engage in or hold stock or any controlling interest in for-profit endeavors relating to space flight-related activities. (o) The alliance shall be accountable to the Secretary of Trade and Commerce and shall provide the secretary with quarterly reports of its activities and finances. The agency shall provide guidance and support to the alliance. (p) The California Space Flight Competitive Grant Program is hereby established to provide funding, upon appropriation by the Legislature, for the development of activities in California related to space flight. For purposes of this section, space flight activities shall include civil or commercial space transportation systems, new or improved space infrastructure, related space support services, or any additional activities that the alliance deems consistent with this section. Entities conducting activities in California intended to enhance or promote space flight, including public, private, educational, commercial, nonprofit, or for-profit entities are eligible to apply for the California Space Flight Competitive Grants. (1) To the extent authorized by the Internal Revenue Code, the alliance shall promote California Space Flight Competitive Grants. If funding is appropriated by the Legislature, the alliance shall, at least annually, issue requests for proposals. (2) (A) The alliance shall develop a minimum baseline set of requirements and points a grant application must receive in order to be considered for funding. Requirements in addition to the minimum baseline set, which are consistent with the goals and objectives of this program, may be added or deleted from each year's grant solicitation. (B) Any grant application meeting the minimum baseline set of requirements and points described in subparagraph (A) is automatically eligible for consideration in three subsequent grant year solicitations. The applicant is not required to resubmit a new grant application during this time, but, in future grant solicitations, may provide the review panel with any of the following: (i) Additional information to enhance its current minimum baseline set of requirements and points. (ii) Any additional information on the grant application that may be necessary to complete any new or existing requirements as provided for in subparagraph (A). (C) The program shall award grants based upon a competitive application process, addressing, at a minimum, each project's eligibility, a review of the proposal's scientific and technological aspects, and the ability to fulfill the goals of the program. (q) It is the intent of the Legislature that the following be considered in developing the minimum baseline set of requirements in subparagraph (A) of paragraph (2) of subdivision (p): (1) Identification of all sources of funding for the entire project, which should include at least one of the following: (A) A private sector company or companies. (B) One or more foundations, industry associations, or nonprofit cooperative associations, or any combination thereof. (C) Tangible or intangible in-kind support, including staff, facilities, applied technology, or other, as defined further in the grant solicitation. (D) Federal or local government funding. (2) No substitution of other project funding by this grant. (3) A demonstration that a majority of the project will be undertaken in California. (4) Inclusion of one or more of the following in the project, each of which should have significant operations in the state: (A) Private sector companies. (B) Foundations, industry associations, or nonprofit cooperative associations. (5) An agreement among all project participants as to the intellectual property rights relative to the project. (6) The potential impact on the state's economy. (7) The cost-effectiveness of the project. (8) The importance of state funding for the viability of the project. (9) Cost sharing by other project participants. (r) In evaluating grant proposals, the alliance shall establish an impartial review panel comprised of technical and scientific experts and government representatives to review grant applications. The panel shall be composed of members from throughout the state who are knowledgeable about activities related to space flight. The panel membership shall be selected so as to afford representation of all parts of the state so far as it is practicable. No more than 30 percent of the panel members shall be government representatives, and all other members shall either be actively involved in industries related to space flight, or technical and scientific experts in activities related to space flight. (1) The review panel shall review and evaluate California Space Flight Competitive Grant applications based on the grant solicitation requirements. In accordance with subparagraph (A) of paragraph (2) of subdivision (p), a point system shall be developed to evaluate the grant applications similar to those set forth in Sections 8450 and 15379.3. In making evaluations, the review panel shall apply the criteria and priorities as determined by the grant solicitation. The grant review shall include a determination as to whether the project is eligible, the application is complete, and the proposed use of funding is consistent with the requirements of the grant solicitation. The grant review shall also include a determination that there is no conflict of interest, and any other technical evaluation determined necessary. (2) The review panel shall compile a preliminary list of grant applications for projects determined to be qualified pursuant to paragraph (1), and submit the list to a coalition composed of the review panel, the center, and the Trade and Commerce Agency, each of which shall have one vote. (3) The coalition shall rank grant applications on the preliminary list by the degree to which each meets the criteria described in the grant solicitation, and shall forward this final, consolidated list to the Secretary of Trade and Commerce for awarding of grant funding. The final, consolidated list may include the coalition's recommendation as to the amount of state funding for each grant application, potential multiyear funding of a grant application which must be encumbered in a single fiscal year, or both. (4) The Secretary of Trade and Commerce shall award grants, based on the review coalition's final recommendation list, and to the extent funds are available, to applications receiving the highest ranking, unless the secretary finds that changes to the ranking are necessary due to noncompliance with the grant solicitation criteria or because they pose conflicts of interest. The Secretary of Trade and Commerce may overturn a recommendation by the coalition only if the secretary finds clear and convincing evidence to support that action. A report on the funding determination shall be transmitted to the Governor and the chairs of the Senate and Assembly fiscal committees. (s) The alliance is not eligible to apply for grant funding under this section. (t) The alliance may establish an advisory committee to provide input, evaluation, program funding recommendations, and other recommendations on the California Space Flight Competitive Grant Program. The committee may also provide recommendations on other space flight-related issues, as directed by the alliance. The committee membership may include representatives from local governments, industry, civic and research organizations, or the general public located in areas with active grant applications. The committee may also include members from throughout the state with an interest in space flight activities. (u) Nothing in this section shall preclude the state from providing alternative funding allocations for space-related activities. SEC. 92. Section 15333.4 of the Government Code is amended to read: 15333.4. (a) The Highway to Space Program is hereby established to promote the development of a commercial space transportation system based in California. Any entity conducting commercial space flight-related activities in California may choose to participate in the Highway to Space Program. (b) To the extent authorized by the Internal Revenue Code, the Western Commercial Space Center, a nonprofit corporation, shall be charged with promotion and coordination of entities choosing to participate in the Highway to Space Program. (c) The Highway to Space Competitive Grant Program is hereby established to provide funding, upon appropriation by the Legislature, for the development of activities in California related to commercial space infrastructure. For purposes of this section, commercial space infrastructure shall include civil or commercial space transportation systems, new or improved space infrastructure, related space support services, or any additional activities that the center deems consistent with these specifications. Entities conducting activities in California intended to enhance or promote commercial space infrastructure or space flight, including public, private, educational, commercial, nonprofit, or for-profit entities are eligible to apply for the Highway to Space Competitive Grants. (1) To the extent authorized by the Internal Revenue Code, the center shall promote Highway to Space Competitive Grants. If funding is appropriated by the Legislature, the center shall, at least annually, issue requests for proposals. (2) (A) The center shall develop a minimum baseline set of requirements and points a grant application must receive to be considered for funding. Requirements in addition to the minimum baseline set, which are consistent with the goals and objectives of this program, may be added or deleted from each year's grant solicitation. (B) Any grant application meeting the minimum baseline set of requirements and points in paragraph (2) is automatically eligible for consideration in three subsequent grant year solicitations. The applicant is not required to resubmit a new grant application during this time, but may, in future grant solicitations, provide the review panel with any of the following: (i) Additional information to enhance its current minimum baseline set of requirements and points. (ii) Any additional information on the grant application that may be necessary to complete any new or existing requirements as provided for in subparagraph (A). (C) The program shall award grants based upon a competitive application process, addressing, at a minimum, each project's eligibility, a review of the proposal's scientific and technological aspects, and the ability to fulfill the goals of the program. (d) It is the intent of the Legislature that the following be considered in developing the minimum baseline set of requirements in subparagraph (A) of paragraph (2) of subdivision (c): (1) Identification of all sources or funding for the entire project, which should include at least one of the following: (A) A private sector company or companies. (B) One or more foundations, industry associations, or nonprofit cooperative associations. (C) Tangible or intangible in-kind support including staff, facilities, applied technology, or other, as defined further in the grant solicitation. (D) Federal or local government funding. (2) No substitution of other project funding by this grant. (3) A demonstration that a majority of the project will be undertaken in California. (4) Inclusion of one or more of the following in the project, each of which should have significant operations in the state: (A) Private sector companies. (B) Foundations, industry associations, or nonprofit cooperative associations. (5) An agreement among all project participants as to the intellectual property rights relative to the project. (6) The potential impact on the state's economy. (7) The cost-effectiveness of the project. (8) The importance of state funding for the viability of the project. (9) Cost sharing by other project participants. (e) In evaluating grant proposals, the center shall establish an impartial review panel comprised of technical and scientific experts and government representatives to review grant applications. The panel shall be composed of members from throughout the state who are knowledgeable of commercial space infrastructure, or related activities. The panel membership shall be selected so as to afford representation of all parts of the state so far as is practicable. No more than 30 percent of the panel members shall be government representatives, and all other members shall either be actively involved in industries related to space flight, or technical and scientific experts in activities related to space flight. (1) The review panel shall review and evaluate Highway to Space Competitive Grant applications, based on the grant solicitation requirements. In accordance with subparagraph (A) of paragraph (2) of subdivision (c), a point system shall be developed to evaluate the grant applications similar to those set forth in Sections 8450 and 15379.3. In making evaluations, the review panel shall apply the criteria and priorities, as determined by the grant solicitation. The grant review shall include a determination as to whether the project is eligible, the application is complete, and the proposed use of funding is consistent with the requirements of the grant solicitation. The grant review shall include a determination that there is no conflict of interest, and any other technical evaluation determined necessary. (2) The review panel shall compile a preliminary list of grant applications for projects determined to be qualified pursuant to paragraph (1), and submit the list to a coalition composed of the review panel, the alliance, and the Trade and Commerce Agency, each of which shall have one vote. (3) The coalition shall rank grant applications on the preliminary list by the degree to which each meets the criteria described in the grant solicitation and shall forward this final, consolidated list to the Secretary of Trade and Commerce for awarding of grant funding. The list may include the coalition's recommendation as to the amount of state funding for each grant application, potential multiyear funding of a grant application which must be encumbered in a single fiscal year, or both. (4) The Secretary of Trade and Commerce shall award grants, based on the coalition's final recommendation list, and to the extent funds are available, to applications receiving the highest ranking, unless the secretary finds that changes to the ranking are necessary due to noncompliance with the grant solicitation criteria or because they pose conflicts of interest. The Secretary of Trade and Commerce may overturn a recommendation by the coalition only if the secretary finds clear and convincing evidence to support that action. (f) The center is not eligible to apply for grant funding under this section. (g) The Western Commercial Space Center shall be an official recipient of grants from federal, state, or local government or from private businesses or individuals, for Highway to Space Program activities, including, but not limited to, studies, services, infrastructure improvements and modernization, and defense transition programs, to the extent permitted by law. Any other entity legally eligible may also receive grant funds for these purposes. (h) The Western Commercial Space Center acting as a corporation may not engage in or hold stock or any controlling interest in for-profit endeavors relating to space flight-related activities. (i) The center may establish an advisory committee to provide input, evaluation, program funding recommendations, and other recommendations on the Highway to Space Competitive Grant Program. The committee may also provide recommendations on other space flight-related issues, as directed by the center. The committee membership may include representatives from local governments, industry, civic and research organizations, or the general public located in areas with active grant applications. The committee may also include members from throughout the state with an interest in space flight activities. (j) Nothing in this section shall preclude the state from providing alternative funding allocations for space-related activities. SEC. 93. Section 15378 of the Government Code is amended to read: 15378. (a) The Secretaries of the Business, Transportation and Housing, Health and Welfare, California Environmental Protection, Resources, and State and Consumer Services Agencies, and the heads of the independent agencies subject to the provisions of this chapter shall ensure that the departments, commissions, boards, and other administrative divisions within their agencies that issue permits comply with the provisions of this chapter. (b) The secretaries and agency heads shall adopt regulations establishing an appeal process through which an applicant can appeal directly to the secretary or agency head for a timely resolution of any dispute arising from a violation of the time periods required by this chapter. The regulations shall provide for the full reimbursement of any and all filing fees paid by a permit applicant whose application was not processed within the time limits adopted by an agency pursuant to this chapter, and whose appeal to the secretary or agency head was decided in the applicant's favor. The appeal shall be decided in the applicant's favor if the state agency has exceeded its established maximum time period for issuance or denial of the permit, the agency has complied with any notice and hearing requirements, and the agency has failed to establish good cause for exceeding the time period pursuant to subdivision (h) of Section 15376. Information regarding the appeal process shall be included in the permit application forms issued by the agency. SEC. 94. Section 15813.6 of the Government Code is amended to read: 15813.6. In consultation with the State Architect, the council shall prepare a report relative to the art in state buildings program pursuant to this chapter, to be submitted to Members of the Legislature as part of any report on the activities and programs of the council. SEC. 95. Section 16582 of the Government Code is repealed. SEC. 96. Section 16649.91 of the Government Code is repealed. SEC. 97. Section 17562 of the Government Code is amended to read: 17562. (a) The Legislature hereby finds and declares that the increasing revenue constraints on state and local government and the increasing costs of financing state-mandated local programs make evaluation of the cumulative effects of state-mandated local programs imperative. Accordingly, it is the intent of the Legislature to establish a method for regularly reviewing the costs of state-mandated local programs, by evaluating the benefit of previously enacted mandates. (b) (1) A statewide association of local agencies or a Member of the Legislature may submit a proposal to the Legislature recommending the elimination or modification of a state-mandated local program. To make such a proposal, the association or member shall submit a letter to the Chairs of the Assembly Committee on Local Government and the Senate Committee on Local Government specifying the mandate and the concerns and recommendations regarding the mandate. The association or member shall include in the proposal all information relevant to the conclusions. If the chairs of the committees desire additional analysis of the submitted proposal, the chairs may refer the proposal to the Legislative Analyst for review and comment. The chairs of the committees may refer up to a total of 10 of these proposals to the Legislative Analyst for review in any year. Referrals shall be submitted to the Legislative Analyst by December 1 of each year. (2) The Legislative Analyst shall review and report to the Legislature with regard to each proposal that is referred to the office pursuant to paragraph (1). The Legislative Analyst shall recommend that the Legislature adopt, reject, or modify the proposal. The report and recommendations shall be submitted annually to the Legislature by March 1 of the year subsequent to the year in which referrals are submitted to the Legislative Analyst. (3) The Department of Finance shall review all statutes enacted each year that contain provisions making inoperative Section 2229 or Section 2230 of the Revenue and Taxation Code or Section 17561 or Section 17565 that have resulted in costs or revenue losses mandated by the state that were not identified when the statute was enacted. The review shall identify the costs or revenue losses involved in complying with the provisions of the statutes. The Department of Finance shall also review all statutes enacted each year that may result in cost savings authorized by the state. The Department of Finance shall submit an annual report of the review required by this subdivision, together with the recommendations as it may deem appropriate, by December 1 of each year. (c) It is the intent of the Legislature that the Assembly Committee on Local Government and the Senate Committee on Local Government hold a joint hearing each year regarding the following: (1) The reports and recommendations submitted pursuant to subdivision (b). (2) The reports submitted pursuant to Sections 17570, 17600, and 17601. (3) Legislation to continue, eliminate, or modify any provision of law reviewed pursuant to this subdivision. The legislation may be by subject area or by year or years of enactment. SEC. 98. Section 19793 of the Government Code is amended to read: 19793. By November 15 of each year beginning in 1978, the State Personnel Board shall report to the Governor, the Legislature, and the Department of Finance on a census of the state workforce and any underutilization problems in a state agency or department that may indicate failure to provide equal employment opportunity to minorities, women, and persons with disabilities during the past fiscal year. The report also shall include information on laws that discriminate or have the effect of discrimination on the basis of race, color, religion, national origin, political affiliation, sex, age, or marital status. The Legislature shall evaluate the equal employment opportunity efforts of state agencies during its evaluation of the Budget Bill. SEC. 99. Section 19993.05 of the Government Code is amended to read: 19993.05. (a) This section shall be known and may be cited as the Freedom of Financial Choice Act. (b) The department shall permit officers and employees participating in a tax-deferred savings plan established by the department under this chapter or Chapter 9 (commencing with Section 19999.5) to invest in a range of investment options including, but not limited to, stocks and bonds listed with and traded on the New York Stock Exchange, the American Stock Exchange, or the National Market System sponsored by the National Association of Securities Dealers (NASD) and the National Association of Securities Dealers Automated Quotations system (NASDAQ), or any successor association, annuities, and shares or units of open-ended registered investment companies. However, the department may limit the number of banks, mutual fund companies, investment brokers, life insurance companies, and other financial institutions offering investments under the plans as necessary to ensure the continued qualification of the plan under the Internal Revenue Code and the cost-efficient and timely administration of the plans. (c) No fiduciary of a plan established by the department under this chapter or Chapter 9 (commencing with Section 19999.5) shall be liable for any loss that results from any individual investment choice made by a participant of a plan, except that this subdivision shall not extend to any malfeasance or misfeasance by any fiduciary of a plan established by the department under this chapter or Chapter 9 (commencing with Section 19999.5). (d) Notwithstanding any other provision of law, the Deferred Compensation Plan Fund (0915) is exempt from the application of Article 2 (commencing with Section 11270) of Chapter 3 of Part 3 of Division 3. SEC. 100. Section 21662 of the Government Code is amended to read: 21662. The board shall consult with employer and employee representatives of the state and local government entities for whom the board administers retirement benefits. The board and each employer is authorized to recover the administrative costs of the long-term care insurance program from insurance carriers and premiums paid by enrollees. Costs recovered by the board from insurance carriers and premiums paid by enrollees shall be deposited in the Public Employees' Long-Term Care Fund. SEC. 101. Section 27279.4 of the Government Code is amended to read: 27279.4. (a) The California Attorney General shall appoint an Electronic Recordation Task Force consisting of voluntary representatives from governmental agencies and industry groups specified in subdivision (b) who shall meet on a regular basis to address the technical, legal, security and economic issues associated with electronic recordation. The task force shall make recommendations regarding all of the following: (1) In addition to requesters qualifying under Section 27279.2, which persons and entities should be authorized to digitize and record documents electronically after January 1, 2000, in order to limit real property fraud, forgery, and consumer risks associated with electronic recordation and provide a cost benefit to the county. (2) Guidelines for the standardization of both software and hardware used by counties to ensure maximum efficiency, cost-effectiveness, and maximum use of the electronic recordation process by requesters qualifying under Sections 27279.2 and 27279.3. (3) Appropriate recording fees and other assessments to cover increased costs to both county recorders and requesters. (b) The task force described in subdivision (a) shall consist of representatives from governmental and industry groups, including county recorders, county district attorneys, the Franchise Tax Board, Fannie Mae, the United States Internal Revenue Service, trustees, mortgage bankers, financial institutions, and the title insurance and real estate industries. SEC. 102. Section 30401 of the Government Code is amended to read: 30401. (a) If the county has not filed a plan of adjustment with the bankruptcy court by January 1, 1996, the Governor may appoint an individual to serve as trustee of the county. The appointment may occur at any time after January 1, 1996, until confirmation of the plan. Notwithstanding the timely filing of a plan of adjustment, the Governor shall appoint a trustee if the Governor determines that, as of May 1, 1996, or any date thereafter, the parties specified below have failed to reach substantial agreement on the terms of the plan of adjustment and the timely confirmation of the plan appears unlikely. Before reaching the foregoing determination, the Governor or his or her designee shall first consult with (1) the specified county officers and the board of supervisors, (2) the Official Committee of Unsecured Creditors of the County of Orange appointed in the pending case, and (3) the Official Committee of Investment Pools Participants appointed in the investment pools case. The trustee is a public official of the state and shall serve at the pleasure of, and is responsible to, the Governor. (b) The trustee shall have recognized expertise in management and public finance. (c) The trustee may institute a financial plan for the county if the county fails to present a balanced budget. (d) In implementing a financial plan for the county, the trustee may exercise all necessary and appropriate powers of the county board of supervisors, subject to the same legal limitations that apply to the board of supervisors. (e) The trustee shall exercise the powers granted pursuant to this chapter for an emergency period that ends upon the adoption, after the appointment of the trustee, of two consecutive balanced final budgets and achievement of two positive audited fund balances, as determined by the Governor or his or her designee. SEC. 103. Section 30606 of the Government Code is repealed. SEC. 104. Section 51207 of the Government Code is amended to read: 51207. (a) On or before May 1 of every other year, the Department of Conservation shall report to the Legislature regarding the implementation of this chapter by cities and counties. (b) The report shall contain, but not be limited to, the number of acres of land under contract in each category and the number of acres of land which were removed from contract through cancellation, eminent domain, annexation, or nonrenewal. (c) The report shall also contain the following specific information relating to not less than one-third of all cities and counties participating in the Williamson Act program: (1) The number of contract cancellation requests for which notices of hearings were mailed to the Director of Conservation pursuant to Section 51284 which were approved by boards or councils during the prior two years or for which approval is still pending by boards or councils. (2) The amount of cancellation fees payable to the county treasurer as deferred taxes and which are required to be transmitted to the Controller pursuant to subdivision (d) of Section 51283 which have not been collected or which remain unpaid. (3) The total number of acres covered by certificates of cancellation of contracts during the previous two years. (4) The number of nonrenewal and withdrawal of renewal notices received pursuant to Section 51245 and the number of expiration notices received pursuant to Section 51246 during the previous two years. (5) The number of acres covered by nonrenewal notices that were not withdrawn and expiration notices during the previous two years. (d) The department may recommend changes to this chapter which would further promote its purposes. (e) The Legislature may, upon request of the department, appropriate funds from the deferred taxes deposited in the General Fund pursuant to subdivision (d) of Section 51283 in an amount sufficient to prepare the report required by this section. SEC. 105. Section 54238.7 of the Government Code is amended to read: 54238.7. Except those properties the Department of Transportation has in escrow as of August 15, 1997, to sell, the Department of Transportation shall not dispose of any surplus property in the City of South Pasadena prior to January 31, 1998. SEC. 106. Section 65302.6 of the Government Code is repealed. SEC. 108. Section 67523 of the Government Code is repealed. SEC. 110. Section 68511.2 of the Government Code is amended to read: 68511.2. Notwithstanding any other provision of law, the Judicial Council shall provide by rule for the photographic, microphotographic, mechanical, or electronic entry, storage, and retrieval of court records. SEC. 112. Section 68604 of the Government Code is amended to read: 68604. The Judicial Council shall collect and maintain statistics, and shall publish them at least on a yearly basis, regarding the compliance of the superior court of each county and of each branch court with the standards of timely disposition adopted pursuant to Section 68603. In collecting and publishing these statistics, the Judicial Council shall measure the time required for the resolution of civil cases from the filing of the first document invoking court jurisdiction, and for the resolution of criminal cases from the date of arrest, including a separate measurement in felony cases from the first appearance in superior court. The Judicial Council shall report its findings and recommendations to the Legislature in a biennial Report on the State of California's Civil and Criminal Justice Systems. The Judicial Council shall conduct a two-year study on the stipulated continuance authorized by subdivision (c) of Section 68616. SEC. 113. Section 70219 of the Government Code is repealed. SEC. 113.5. Section 75060.3 of the Government Code is repealed. SEC. 114. Section 75560.3 of the Government Code is repealed. SEC. 115. Section 77009 of the Government Code is amended to read: 77009. (a) For the purposes of funding trial court operations, each board of supervisors shall establish in the county treasury a Trial Court Operations Fund, which will operate as an agency fund. All funds appropriated in the Budget Act and allocated and reallocated to each court in the county by the Judicial Council shall be deposited into the fund. Accounts shall be established in the Trial Court Operations Fund for each trial court in the county, except that one account may be established for courts which have a unified budget. In a county where court budgets include appropriations for expenditures administered on a countywide basis, including, but not limited to, court security, centralized data processing and planning and research services, an account for each centralized service shall be established and funded from those appropriations. (b) The moneys of the Trial Court Operations Fund arising from deposits of funds appropriated in the Budget Act and allocated or reallocated to each court in the county by the Judicial Council shall be payable only for the purposes set forth in Sections 77003 and 77006.5, and for services purchased by the court pursuant to subdivisions (b) and (c) of Section 77212. The presiding judge of each court in a county, or his or her designee, shall authorize and direct expenditures from the fund and the county auditor-controller shall make payments from the funds as directed. Approval of the board of supervisors is not required for expenditure from this fund. (c) All funds received by a trial court from any source shall be deposited in the trial court operations fund, except as provided in this section. Funds that are received to fulfill the requirements of Article 4 (commencing with Section 4250) of Chapter 2 of Part 2 of Division 9 and Division 14 (commencing with Section 10000) of the Family Code shall be identified and maintained in a separate account established in the fund for this purpose. All other funds that are received for purposes other than court operations, as defined in Section 77003 and Rule 810 of the California Rules of Court, shall be identified and maintained in one or more separate accounts established in the fund pursuant to procedures adopted by the Judicial Council. This subdivision shall only apply to funds received by the courts for operating and program purposes. This subdivision shall not apply to either of the following: (1) Funds received by the courts pursuant to Section 68084, if those funds are not for operating or program use. (2) Payments from a party or a defendant received by a trial court or the county for any fees, fines, or forfeitures. (d) Interest received by a county that is attributable to investment of money required by this section to be deposited in its Trial Court Operations Fund shall be deposited in the fund and shall be used for trial court operations purposes. (e) In no event shall interest be charged to the Trial Court Operations Fund, except as provided in Section 77009.1. (f) Reasonable administrative expenses incurred by the county associated with the operation of this fund shall be charged to each court on a pro rata basis in proportion to the total amount allocated to each court in this fund. (g) A county, or city and county, may bill trial courts within its jurisdiction for costs for services provided by the county, or city and county, as described in Sections 77003 and 77212, including indirect costs as described in paragraph (7) of subdivision (a) of Section 77003 and Section 77212. The costs billed by the county, or the city and the county, pursuant to this subdivision shall not exceed the costs incurred by the county, or the city and the county, of providing similar services to county departments or special districts. (h) Pursuant to Section 77206, the Controller, at the request of the Legislature or the Judicial Council, may perform financial and fiscal compliance audits of this fund. (i) The Judicial Council with the concurrence of the Department of Finance and the Controller's office shall establish procedures to implement this section and to provide for payment of trial court operations expenses, as described in Sections 77003 and 77006.5, incurred on July 1, 1997, and thereafter. SEC. 116. Section 77604 of the Government Code is amended to read: 77604. (a) The task force shall be appointed by October 1, 1997. (b) The task force shall meet and establish its operating procedures on or before January 1, 1998. SEC. 117. Section 77605 of the Government Code is amended to read: 77605. (a) It is the intent of the Legislature to enact a personnel system, that shall take effect on or before January 1, 2001, for employment of trial court employees. The personnel system shall have uniform statewide applicability and promote organizational and operational flexibility in accordance with Section 77001. (b) Nothing in this chapter is intended to prejudge or compel a finding by the task force that court or county or state employment is preferred. (c) No provision of this article is intended to reduce judicial or court employee salary or benefits. (d) No provision of this chapter shall be deemed to affect the current employment status of, or reduce benefits for, any peace officer involved in court operations. SEC. 118. Section 77654 of the Government Code is amended to read: 77654. (a) The task force shall be appointed on or before October 1, 1997. (b) The task force shall meet and establish its operating procedures on or before September 1, 1998. (c) The task force shall review all available court facility standards and make preliminary determinations of acceptable standards for construction, renovation, and remodeling of court facilities in an interim report. (d) The task force shall complete a survey of all trial and appellate court facilities in the state and report its findings to the Judicial Council, the Legislature, and the Governor in a second interim report on or before January 1, 2001. The report shall document all of the following: (1) The state of existing court facilities. (2) The need for new or modified court facilities. (3) The currently available funding options for constructing or renovating court facilities. (4) The impact which creating additional judgeships has upon court facility and other justice system facility needs. (5) The effects which trial court coordination and consolidation have upon court and justice system facilities needs. (6) Administrative and operational changes which can reduce or mitigate the need for added court or justice system facilities. (7) Recommendations for specific funding responsibilities among the entities of government including full state responsibility, full county responsibility, or shared responsibility. (8) A proposed transition plan if responsibility is to be changed. (9) Recommendations regarding funding sources for court facilities and funding mechanisms to support court facilities. (e) The interim reports shall be circulated for comment to the counties, the judiciary, the Legislature, and the Governor. The task force may also circulate these reports to users of the court facilities. (f) The task force shall submit a final report to the Judicial Council, the Legislature, and the Governor on or before July 1, 2001. The report shall include all elements of the interim reports incorporating any changes recommended by the task force in response to comments received. (g) Notwithstanding any other provision of law, during the period from July 1, 1997, to June 30, 2001, the board of supervisors of each county shall be responsible for providing suitable and necessary facilities for judicial officers and court support staff for judicial positions created prior to July 1, 1996, to the extent required by Section 68073. The board of supervisors of each county shall also be responsible for providing suitable and necessary facilities for judicial officers and court support staff for judgeships authorized by statutes chaptered in 1996 to the extent required by Section 68073, provided that the board of supervisors agrees that new facilities are either not required or that the county is willing to provide funding for court facilities. Unless a court and a county otherwise mutually agree, the state shall assume responsibility for suitable and necessary facilities for judicial officers and support staff for any judgeships authorized during the period from January 1, 1998, to June 30, 2001. SEC. 119. Section 92204 of the Government Code is repealed. SEC. 120. Section 96103 of the Government Code is repealed. SEC. 121. Section 65.8 of the Harbors and Navigation Code is repealed. SEC. 122. Section 658.6 of the Harbors and Navigation Code is repealed. SEC. 123. Section 1200 of the Harbors and Navigation Code is amended to read: 1200. The board shall, from time to time, review pilotage expenses and establish guidelines for the evaluation and application of these expenses regarding its recommendations for adjustments in rates. SEC. 124. Section 3927 of the Harbors and Navigation Code is amended to read: 3927. The State Controller and the State Treasurer shall keep full and particular account and record of all their proceedings under this part, and they shall transmit to the Governor an abstract of all such proceedings thereunder. All books and papers pertaining to the matter provided for in this part shall at all times be open to the inspection of any party interested, or the Governor, or the Attorney General, or a committee of either house of the Legislature, or a joint committee of both, or any citizen of the State. SEC. 125. Section 1342.1 of the Health and Safety Code is amended to read: 1342.1. (a) The Legislature finds and declares all of the following: (1) More than 16 million Californians are enrolled in health care service plans, and this number is likely to grow significantly over the next decade. (2) Although the Knox-Keene Health Care Service Plan Act of 1975 contains many consumer protections, there is interest on the part of consumers and providers to determine if additional protections may be necessary. (3) Health care service plans have many different structures and payment mechanisms, and there is interest on the part of health care service plans, providers, health professions educators, and consumers as to whether and how these structures and payment mechanisms affect quality and cost. (b) The Governor shall convene a task force on health care service plans, composed of 30 members, to research all of the following by January 1, 1998: (1) The picture of health care service plans, as it stands in California today, including, but not limited to, the different types of health care service plans, how they are regulated, how they are structured, how they operate, the trends and changes in health care delivery, and how these changes have affected the health care economy, academic medical centers, and health professions education. (2) Whether the goals of managed care provided by health care service plans are being satisfied, including the goals of controlling costs and improving quality and access to care. (3) A comparison of the effects of provider financial incentives on the delivery of health care in health care service plans, other managed care plans, and fee-for-service settings. (4) The effect of managed care on the patient-physician relationship, if any. (5) The effect of other managed care plans on academic medical centers and health professions education. (c) The task force shall be composed of equal representation from the following groups: (1) Health care service plans, including at least one local initiative under contract with the State Department of Health Services as part of the two-plan model for Medi-Cal managed care, and at least one disability insurer. (2) Employers who purchase health care. (3) Health care service plan enrollees. (4) Providers of health care. (5) Representatives from consumer groups. (d) The members of the task force shall be appointed as follows: (1) The Senate Committee on Rules shall appoint five members, one from each of the categories set forth in subdivision (c). (2) The Speaker of the Assembly shall appoint five members, one from each of the categories set forth in subdivision (c). (3) The Governor shall appoint 20 members, four from each of the categories set forth in subdivision (c). (e) Notwithstanding any other provision of law, the members of the task force shall receive no per diem or travel expense reimbursement, or any other expense reimbursement. SEC. 126. Section 1422 of the Health and Safety Code is amended to read: 1422. (a) The Legislature finds and declares that it is the public policy of this state to assure that long-term health care facilities provide the highest level of care possible. The Legislature further finds that inspections are the most effective means of furthering this policy. It is not the intent of the Legislature by the amendment of subdivision (b) enacted by Chapter 1595 of the Statutes of 1982 to reduce in any way the resources available to the state department for inspections, but rather to provide the state department with the greatest flexibility to concentrate its resources where they can be most effective. (b) (1) Without providing notice of these inspections, the state department shall, in addition to any inspections conducted pursuant to complaints filed pursuant to Section 1419, conduct inspections annually, except with regard to those facilities which have no class "AA," class "A," or class "B" violations in the past twelve months. The state department shall also conduct inspections as may be necessary to assure the health, safety, and security of patients in long-term health care facilities. Every facility shall be inspected at least once every two years. The department shall vary the cycle in which inspections of long-term health care facilities are conducted to reduce the predictability of the inspections. (2) The state department shall submit to the federal Department of Health and Human Services on or before July 1, 1985, for review and approval, a request to implement a three-year pilot program designed to lessen the predictability of the long-term health care facility inspection process. Two components of the pilot program shall be (A) the elimination of the present practice of entering into a one-year certification agreement, and (B) the conduct of segmented inspections of a sample of facilities with poor inspection records, as defined by the state department. At the conclusion of the pilot project, an analysis of both components shall be conducted by the state department to determine effectiveness in reducing inspection predictability and the respective cost benefits. Implementation of this pilot project is contingent upon federal approval. (c) Except as otherwise provided in subdivision (b), the state department shall conduct unannounced direct patient care inspections at least annually to inspect physician and surgeon services, nursing services, pharmacy services, dietary services, and activity programs of all the long-term health care facilities. Facilities evidencing repeated serious problems in complying with this chapter or a history of poor performance, or both, shall be subject to periodic unannounced direct patient care inspections during the inspection year. The direct patient care inspections shall assist the state department in the prioritization of its efforts to correct facility deficiencies. (d) All long-term health care facilities shall report to the state department any changes in the nursing home administrator or the director of nursing services within 10 calendar days of the changes. (e) Within 90 days after the receipt of notice of a change in the nursing home administrator or the director of nursing services, the state department may conduct an abbreviated inspection of the long-term health care facilities. (f) If a change in a nursing home administrator occurs and the Board of Nursing Home Administrators notifies the state department that the new administrator is on probation or has had his or her license suspended within the previous three years, the state department shall conduct an abbreviated survey of the long-term health care facility employing that administrator within 90 days of notification. SEC. 127. Section 11759.4 of the Health and Safety Code is amended to read: 11759.4. Not later than January 1 of each year, the department, in collaboration with the counties and providers of alcohol and drug services, shall report to the Legislature during budget hearings regarding the status of the implementation of this chapter. SEC. 128. Section 13143.10 of the Health and Safety Code is repealed. SEC. 129. Section 18400.1 of the Health and Safety Code is amended to read: 18400.1. (a) In accordance with subdivision (b), the enforcement agency shall enter and inspect mobilehome parks, as required under this part, at least once every seven years, to ensure enforcement of this part and the regulations adopted pursuant to this part. The enforcement agency's inspection shall include an inspection of the exterior portions of individual manufactured homes and mobilehomes in each park inspected. Any notices of violation of this part shall be issued pursuant to Chapter 3.5 (commencing with Section 18420). (b) In developing its mobilehome park maintenance inspection program, the enforcement agency shall inspect the mobilehome parks that the enforcement agency determines either: (1) Had the most serious, or a substantial number of serious, health and safety violations as a result of inspections of the parks made pursuant to the mobilehome park maintenance inspection program during the 1991 through 1999 phase of the program. (2) Have complaints that have been made to the enforcement agency regarding serious health and safety violations in the park. A single complaint of a serious health and safety violation shall not automatically trigger an inspection of the entire park unless upon investigation of that single complaint the enforcement agency determines that there is a violation and that an inspection of the entire park is necessary. (c) Nothing in this part shall be construed to allow the enforcement agency to issue a notice for a violation of existing laws or regulations that were not violations of the laws or regulations at the time the mobilehome park received its original permit to operate, or the standards governing any subsequent permit to construct, or at the time the manufactured home or mobilehome received its original installation permit, unless the enforcement agency determines that a condition of the park, manufactured home, or mobilehome endangers the life, limb, health, or safety of the public or occupants thereof. (d) Not less than 30 days prior to the inspection of a mobilehome park under this section, the enforcement agency shall provide individual written notice of the inspection to the registered owners of the manufactured homes or mobilehomes, with a copy of the notice to the occupants thereof, if different than the registered owners, and to the owner or operator of the mobilehome park and the responsible person, as defined in Section 18603. (e) At the sole discretion of the enforcement agency's inspector, a representative of either the park operator or the mobilehome owners may accompany the inspector during the inspection if that request is made to the enforcement agency or the inspector requests a representative to accompany him or her. If either party requests permission to accompany the inspector or is requested by the inspector to accompany him or her, the other party shall also be given the opportunity, with reasonable notice, to accompany the inspector. Only one representative of the park owner and one representative of the mobilehome owners in the park may accompany the inspector at any one time during the inspection. If more than one representative of the mobilehome owners in the park requests permission to accompany the inspector, the enforcement agency may adopt procedures for choosing that representative. (f) The enforcement agency shall coordinate a preinspection orientation for mobilehome owners and mobilehome park operators with the use of an audio-visual presentation furnished by the department to affected local enforcement agencies. Enforcement agencies shall furnish the audio-visual presentation to park operators and mobilehome owner representatives in each park subject to inspection not less than 30 days prior to the inspection. Additionally, it is the Legislature's intent that the department shall, where practicable, conduct live presentations, forums, and outreach programs throughout the state to orient mobilehome owners and park operators on the mobilehome park maintenance inspection program and their rights and obligations under the program. (g) Any local enforcement agency that relinquishes enforcement authority to the department shall remit to the department fees collected pursuant to paragraph (2) of subdivision (c) of Section 18502 that have not been expended for purposes of that paragraph. (h) This section shall remain in effect only until January 1, 2007, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, 2007, deletes or extends that date. SEC. 129.3. Section 25171 of the Health and Safety Code is repealed. SEC. 129.5. Section 25171.5 of the Health and Safety Code is repealed. SEC. 129.7. Section 25200.11 of the Health and Safety Code is amended to read: 25200.11. (a) On or before July 1, 1993, the department shall take final action on each application for a hazardous waste facilities permit to be issued pursuant to Section 25200 for an offsite hazardous waste facility which is not subject to the time limits specified in Section 25200.7 and which has been operating under a grant of interim status pursuant to Section 25200.5 prior to January 1, 1992, if the permit application was submitted to the department before January 1, 1992. In taking final action pursuant to this section, the department shall either issue the hazardous waste facilities permit or make a final denial of the application. The department may extend final action for one year upon its determination that the permit application is complete and that more time is needed for review and evaluation of the application. (b) On July 1, 1992, interim status granted for any existing offsite hazardous waste facility, which is not subject to the time limits specified in Section 25200.7, shall be terminated, unless the department has received an application for a final hazardous waste facilities permit pursuant to Section 25200 on or before June 30, 1992. (c) Except for facilities subject to Section 25201.6, for any offsite facility, which facility or portion of facility was first granted interim status pursuant to Section 25200.5 on or after January 1, 1992, the department shall provide public notice for a permit determination to issue or deny a hazardous waste facilities permit for the facility, including a permit modification to incorporate a portion of a facility operating under a grant of interim status, not later than the following dates: (1) For interim status that was first granted on or after January 1, 1992, but prior to January 1, 1994, not more than four years from the date that interim status was first granted. (2) For interim status that was first granted on or after January 1, 1994, but prior to January 1, 1996, not more than three years from the date that interim status was first granted. (3) For interim status that was granted on or after January 1, 1996, not more than two years from the date that interim status was first granted. (d) For purposes of complying with this section, any change in the owner or operator of the hazardous waste facility shall not affect the applicability of this section with respect to permit determinations required for the facility, including a permit modification to incorporate a portion of the facility operating under a grant of interim status. (e) (1) Except as provided in paragraph (2), on or before July 1, 1997, for any facility operating under a grant of interim status pursuant to Section 25200.5, based on operations conducted on November 19, 1980, the department shall review the basis for the grant of interim status, including any amendments of that grant, and shall prepare status reports concerning the results of that review. If the department discovers an error in the scope of a grant of interim status made before July 1, 1997, and the error was caused in whole, or in part, by an intentional or negligent false statement or representation in the documents filed for purposes of establishing or obtaining interim status, the department shall take immediate action to correct the error, to the full extent authorized by law. In determining whether the scope of a grant of interim status made before July 1, 1997, complies with this chapter, the department shall require evidence other than facility owner or operator or employee declarations pertaining to previous activities that are the basis for that eligibility for interim status. (2) Paragraph (1) does not apply to a facility for which, on or before March 1, 1997, a draft permit has been issued by and is being processed by the department, a draft environmental impact report, or other appropriate document prepared pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) has been issued and made available for public comment and the environmental impact report or other document prepared pursuant to the California Environmental Quality Act considers all impacts to the environment from facility operations, including, at a minimum, all changes to operations since November 19, 1980, that were not addressed by a previous finally approved document prepared pursuant to the California Environmental Quality Act. The issuance of an appropriate document under the California Environmental Quality Act shall be deemed to have been issued for purposes of this paragraph if the lead agency has determined in writing that no further document is necessary under that act for purposes of the permit issuance. SEC. 130. Section 25200.14.1 of the Health and Safety Code is amended to read: 25200.14.1. (a) On or before July 1, 1997, the department shall complete an evaluation of the phase I environmental assessment requirement specified by Section 25200.14, and identify any necessary and appropriate changes to that requirement. (b) In evaluating the phase I environmental assessment requirement, the department shall, at a minimum, consider the following issues: (1) Whether the phase I environmental assessment should continue to encompass the entire facility or be limited to a portion of the facility. (2) The extent to which, and under what conditions, the information contained in the facility's phase I environmental assessment should be maintained as confidential information not available for release to the public or to governmental agencies other than the department. SEC. 131. Section 25200.17 of the Health and Safety Code is amended to read: 25200.17. (a) Upon petition, the department may, by regulation, add new treatment activities to the list of activities eligible for operation pursuant to a permit-by-rule, under the regulations adopted by the department, or eligible for authorization under a grant of conditional authorization pursuant to Section 25200.3 or a grant of conditional exemption pursuant to Section 25201.5, if all of the following conditions are met: (1) The department finds that the new waste stream and treatment process combination poses no greater risk to the public health and safety or environment than those waste stream and treatment process combinations currently eligible for operation pursuant to a permit-by-rule, under the regulations adopted by the department, or for authorization under a grant of conditional authorization pursuant to Section 25200.3 or conditional exemption pursuant to Section 25201.5, whichever is applicable. (2) The activity does not require a hazardous waste facilities permit under the federal act. (3) The new activity is not already identified as eligible under a permit-by-rule pursuant to the regulations adopted by the department, or a grant of conditional authorization or conditional exemption pursuant to this chapter. (b) In making a determination whether to add a new activity, by regulation, to the list of activities eligible for operation under a permit-by-rule pursuant to the department's regulations, conditional authorization pursuant to Section 25200.3, or conditional exemption pursuant to Section 25201.5, the factors which the department shall consider, to the extent that information is available, shall include, but not be limited to, all of the following: (1) The hazardous waste streams that are treated using the treatment methods and the hazards to public health or safety or to the environment posed by those hazardous wastes and their hazardous constituents. (2) The complexity of the treatment method, the degree of difficulty in carrying it out, and the technology that is used to carry it out. (3) Chemical or physical hazards that are associated with the use of the treatment process and the degree to which those hazards are similar to, or differ from, the chemical or physical hazards that are associated with the production processes that are carried out in the facilities that produce the hazardous waste that is treated using the treatment methods. (4) The levels of specialized operator training, equipment maintenance, and monitoring that are required to ensure the safety of the treatment method and its effectiveness in treating particular hazardous waste streams. (5) The types of accidents that may occur during the treatment of particular types of hazardous waste streams, the likely consequences of those accidents, and the actual accident history associated with use of the treatment method. (6) The degree to which those hazardous waste streams or treatment methods are regulated under other provisions of law or regulations, including, but not limited to, process safety management requirements and risk management and prevention plans. (7) If the treatment method uses a hazardous waste treatment technology that is certified by the department pursuant to Section 25200.1.5, the information and analyses that were used to determine that the treatment technology does not pose a significant potential hazard to public health or safety or to the environment. SEC. 132. Section 25245.6 of the Health and Safety Code is repealed. SEC. 133. Section 25269.9 of the Health and Safety Code is repealed. SEC. 134. Section 25299.97 of the Health and Safety Code, as added by Chapter 814 of the Statutes of 1997, is amended to read: 25299.97. (a) For the purposes of this article, the following definitions shall apply: (1) "Public drinking water well" means a wellhead that provides drinking water to a public water system, as that term is defined in Section 116275, that is regulated by the State Department of Health Services and that is subject to Section 116455. (2) "MTBE" means methyl tertiary-butyl ether. (3) "GIS mapping system" means a geographic information system that collects, stores, retrieves, analyzes, and displays environmental geographic data in a data base that is accessible to the public. (4) "Motor vehicle fuel" includes gasoline, natural gasoline, blends of gasoline and alcohol or gasoline and oxygenates and any inflammable liquid, by whatever name the liquid may be known or sold, which is used or usable for propelling motor vehicles operated by the explosion type engine. It does not include kerosine, liquefied petroleum gas, or natural gas, in liquid or gaseous form. (5) "Oxygenated motor vehicle fuel" is motor vehicle fuel, as defined in paragraph (4), that meets the federal definition for "Oxygenated Fuel" as defined in Section 7545(m) of Title 42 of the United States Code. (6) "Oxygenate" means an organic compound containing oxygen that has been approved by the United States Environmental Protection Agency as a gasoline additive to meet the requirements for an "oxygenated fuel" pursuant to Section 7545 of Title 42 of the United States Code. (b) The State Water Resources Control Board shall upgrade the data base created by Section 25299.39.1. This upgrade shall include the establishment of a statewide GIS mapping system as described in this section only upon an appropriation by the Legislature for this purpose. (c) (1) For purposes of subdivision (b), the board shall create a GIS Mapping and Data Management Advisory Committee. The committee shall give the board advice on location standards, protocols, metadata, and the appropriate data to expand the data base to create a cost-effective GIS mapping system that will provide the appropriate information to allow agencies to better protect public drinking water wells and, if feasible, nearby aquifers that are reasonably expected to be used as drinking water, from contamination by motor vehicle fuel from underground storage tanks and intrastate and interstate pipelines that are regulated by the State Fire Marshal pursuant to the California Pipeline Safety Act of 1981, Chapter 5.5 (commencing with Section 51010.5) of Part 1 of Division 1 of Title 5 of the Government Code. (2) The advisory committee shall include, at a minimum, members from appropriate state and local agencies, affected industry and business, the water agencies that provide drinking water in Santa Monica, the water agencies that provide drinking water in the Santa Clara Valley, nonprofit environmental groups dedicated to the conservation and preservation of natural resources, and underground storage tank owners. (d) (1) The board shall create two pilot projects, the Santa Monica Groundwater Pilot Project and the Santa Clara Valley Groundwater Pilot Project, which shall terminate on July 1, 1999. (2) The board shall create the pilot projects with the advice of the advisory committee so as to expedite and prioritize the upgrading of the data base for those regions of the state where groundwater provides, or would be called on in an emergency to provide, a significant portion of the region's drinking water. (3) The board shall use the pilot projects to define and assess the parameters of the data base, identify data needs, develop opportunities to electronically link data bases and electronic submission of information, offer access to the public via the Internet, streamline existing processes, and work out the details for data management and a GIS mapping system as described in this article. (4) The pilot projects shall study appropriate modification to public water systems and response times. (e) To upgrade the data base as required by this section, the board, in consultation with the advisory committee, shall do all of the following: (1) Coordinate with the Department of Water Resources and the State Department of Health Services to obtain the location of existing drinking water wells and appropriate water resource and quality data to meet the requirements of this article. (2) Coordinate with local agencies authorized to implement this chapter to obtain the location of all underground storage tanks that store motor vehicle fuel that are within 1,000 feet of a public drinking water well. (3) Coordinate with local agencies authorized to implement this chapter to add the location of all known releases of motor vehicle fuel from underground storage tanks that are within 1,000 feet of a drinking water well. (4) Coordinate with the State Fire Marshal to add the location and leak history of all pipelines or segments of pipelines that transport motor vehicle fuel and that are regulated by the State Fire Marshal pursuant to Chapter 5.5 (commencing with Section 51010) of Part 1 of Division 1 of Title 5 of the Government Code that are within 1,000 feet of an existing public drinking water well. (f) The board may expend up to four hundred thousand dollars ($400,000) from the Underground Storage Tank Cleanup Fund for the purposes set forth in Section 25299.36 to fund the GIS mapping system projects referred to in this section. SEC. 135. Section 25299.97 of the Health and Safety Code, as added by Chapter 815 of the Statutes of 1997, is amended to read: 25299.97. (a) For the purposes of this article, the following definitions shall apply: (1) "Public drinking water well" means a wellhead that provides drinking water to a public water system, as that term is defined in Section 116275, that is regulated by the State Department of Health Services and that is subject to Section 116455. (2) "MTBE" means methyl tertiary-butyl ether. (3) "GIS mapping system" means a geographic information system that collects, stores, retrieves, analyzes, and displays environmental geographic data in a data base that is accessible to the public. (4) "Motor vehicle fuel" includes gasoline, natural gasoline, blends of gasoline and alcohol or gasoline and oxygenates and any inflammable liquid, by whatever name the liquid may be known or sold, which is used or usable for propelling motor vehicles operated by the explosion type engine. It does not include kerosine, liquefied petroleum gas, or natural gas, in liquid or gaseous form. (5) "Oxygenated motor vehicle fuel" is motor vehicle fuel, as defined in paragraph (4), that meets the federal definition for "Oxygenated Fuel" as defined in Section 7545(m) of Title 42 of the United States Code. (6) "Oxygenate" means an organic compound containing oxygen that has been approved by the United States Environmental Protection Agency as a gasoline additive to meet the requirements for an "oxygenated fuel" pursuant to Section 7545 of Title 42 of the United States Code. (b) The State Water Resources Control Board shall upgrade the data base created by Section 25299.39.1. This upgrade shall include the establishment of a statewide GIS mapping system as described in this section only upon an appropriation by the Legislature for this purpose. (c) (1) For purposes of subdivision (b), the board shall create a GIS Mapping and Data Management Advisory Committee. The committee shall give the board advice on location standards, protocols, metadata, and the appropriate data to expand the data base to create a cost-effective GIS mapping system that will provide the appropriate information to allow agencies to better protect public drinking water wells and, if feasible, nearby aquifers that are reasonably expected to be used as drinking water, from contamination by motor vehicle fuel from underground storage tanks and intrastate and interstate pipelines that are regulated by the State Fire Marshal pursuant to the California Pipeline Safety Act of 1981, Chapter 5.5 (commencing with Section 51010.5) of Part 1 of Division 1 of Title 5 of the Government Code. (2) The advisory committee shall include, at a minimum, members from appropriate state and local agencies, affected industry and business, the water agencies that provide drinking water in Santa Monica, the water agencies that provide drinking water in the Santa Clara Valley, nonprofit environmental groups dedicated to the conservation and preservation of natural resources, and underground storage tank owners. (d) (1) The board shall create two pilot projects, the Santa Monica Groundwater Pilot Project and the Santa Clara Valley Groundwater Pilot Project, which shall terminate on July 1, 1999. (2) The board shall create the pilot projects with the advice of the advisory committee so as to expedite and prioritize the upgrading of the data base for those regions of the state where groundwater provides, or would be called on in an emergency to provide, a significant portion of the region's drinking water. (3) The board shall use the pilot projects to define and assess the parameters of the data base, identify data needs, develop opportunities to electronically link data bases and electronic submission of information, offer access to the public via the Internet, streamline existing processes, and work out the details for data management and a GIS mapping system as described in this article. (4) The pilot project shall study appropriate notification to public water systems and response times. (e) To upgrade the data base as required by this section, the board, in consultation with the advisory committee, shall do all of the following: (1) Coordinate with the Department of Water Resources and the State Department of Health Services to obtain the location of existing drinking water wells and appropriate water resource and quality data to meet the requirements of this article. (2) Coordinate with local agencies authorized to implement this chapter to obtain the location of all underground storage tanks that store motor vehicle fuel that are within 1,000 feet of a public drinking water well. (3) Coordinate with local agencies authorized to implement this chapter to add the location of all known releases of motor vehicle fuel from underground storage tanks that are within 1,000 feet of a drinking water well. (4) Coordinate with the State Fire Marshal to add the location and leak history of all pipelines or segments of pipelines that transport motor vehicle fuel and that are regulated by the State Fire Marshal pursuant to Chapter 5.5 (commencing with Section 51010) of Part 1 of Division 1 of Title 5 of the Government Code that are within 1,000 feet of an existing public drinking water well. (f) The board may expend up to four hundred thousand dollars ($400,000) from the Underground Storage Tank Cleanup Fund for the purposes set forth in Section 25299.36 to fund the GIS mapping system projects referred to in this section. SEC. 135.1. Section 33760 of the Health and Safety Code is amended to read: 33760. (a) Within its territorial jurisdiction, an agency may determine the location and character of any residential construction to be financed under this chapter and may make mortgage or construction loans to participating parties through qualified mortgage lenders, or purchase mortgage or construction loans without premium made by qualified mortgage lenders to participating parties, or make loans to qualified mortgage lenders, for financing any of the following: (1) Residential construction within a redevelopment project area. (2) Residential construction of residences in which the dwelling units are committed, for the period during which the loan is outstanding, for occupancy by persons or families who are eligible for financial assistance specifically provided by a governmental agency for the benefit of occupants of the residence. (3) To the extent required by Section 103A of Title 26 of the United States Code, as amended, to maintain the exemption from federal income taxes of interest on bonds or notes issued by the agency under this chapter, residences located within targeted areas, as defined by Section 103(b)(12)(A) of Title 26 of the United States Code. Any loans to qualified mortgage lenders shall be made under terms and conditions which, in addition to other provisions as determined by the agency, shall require the qualified mortgage lender to use all of the net proceeds thereof, directly or indirectly, for the making of mortgage loans or construction loans in an appropriate principal amount equal to the amount of the net proceeds. Those mortgage loans may, but need not, be insured. (b) (1) Not less than 20 percent (15 percent in target areas) of the units in any residential project financed pursuant to this section on or after January 1, 1986, shall be occupied by, or made available to, individuals of low and moderate income, as defined by Section 103(b)(12)(C) of Title 26 of the United States Code. If the sponsor elects to establish a base rent for units reserved for lower income households, the base rents shall be adjusted for household size, as determined pursuant to Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), or its successor, for a family of one person in the case of a studio unit, two persons in the case of a one-bedroom unit, three persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, and five persons in the case of a four-bedroom unit. (2) Not less than one-half of the units described in paragraph (1) shall be occupied by, or made available to, very low income households, as defined by Section 50105. The rental payments for those units paid by the persons occupying the units (excluding any supplemental rental assistance from the state, the federal government, or any other public agency to those persons or on behalf of those units) shall not exceed the amount derived by multiplying 30 percent times 50 percent of the median adjusted gross income for the area, adjusted for family size, as determined pursuant to Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), or its successor, for a family of one person in the case of a studio unit, two persons in the case of a one-bedroom unit, three persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, and five persons in the case of a four-bedroom unit. (c) Units required to be reserved for occupancy as provided in subdivision (b) and financed with the proceeds of bonds issued on or after January 1, 1986, shall remain occupied by, or made available to, those persons until the bonds are retired. (d) This section shall become operative January 1, 1996. SEC. 135.5. Section 34312.3 of the Health and Safety Code is amended to read: 34312.3. (a) Subject to the requirements of this section and of Article 5 (commencing with Section 34350), an authority may do any of the following: (1) Issue revenue bonds for the purpose of financing the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing and for the provision of capital improvements in connection with and determined necessary to the multifamily rental housing. (2) Make or undertake commitments to make construction loans and mortgage loans to finance the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing. (3) Purchase or undertake, directly or indirectly through lending institutions, commitments to purchase, construction loans, and mortgage loans originated in accordance with a financing agreement with the authority to finance the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing or make loans to lending institutions under terms and conditions which, in addition to other provisions determined by the authority, shall require the lending institutions to use the net proceeds of the loans for the making, directly or indirectly, of construction loans or mortgage loans to finance the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing. (b) An authority may develop, rehabilitate, or finance housing projects or participate in the development, rehabilitation, or financing of housing projects; or purchase, sell, lease, own, operate, or manage housing projects so assisted, subject to all of the requirements of this section. So long as the proceeds of any sale, lease, or other disposition of real property, net of the cost of sale, are to be used directly to assist a housing project pursuant to this section for persons of low income, and the funds in any trust fund established pursuant to subdivision (f) are used directly to assist housing units for persons of very low income, an authority may, after a public hearing, sell, lease, or otherwise dispose of the real property without complying with any provision of law concerning disposition of surplus property, including, but not limited to, Sections 34315.5 and 34315.7. An authority may convey surplus lands it acquires from another public agency to a nonprofit or private developer for development of single-family homes where the development will provide for home ownership for persons and families of low or moderate income, as defined in Section 50093. This conveyance shall be after a public hearing. With the exception of subdivisions (b), (c), and (d) of Section 34315.7, the conveyance need not comply with any law concerning the disposition of surplus properties, including, but not limited to, Section 34315.5 or subdivision (a) of Section 34315.7. The proceeds of any sale or other disposition of surplus land, net of the cost of sale, shall be used to assist a housing project pursuant to this section for persons of low income. (c) (1) (A) Not less than 20 percent of all units in housing projects assisted by an authority pursuant to this section shall be available for occupancy on a priority basis to persons of low income. In the case of housing projects located within a targeted area, as defined by Section 103(b)(12)(A) of Title 26 of the United States Code, not less than 15 percent of all units in those housing projects assisted pursuant to this section shall be for occupancy on a priority basis by persons of low income. (B) If the sponsor elects to establish a base rent for units reserved for lower income households, the base rents shall be adjusted for household size, as determined pursuant to Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), or its successor, for a family of one person in the case of a studio unit, two persons in the case of a one-bedroom unit, three persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, and five persons in the case of a four-bedroom unit. (2) (A) Not less than one-half of the units required to be available for occupancy pursuant to paragraph (1) and financed with any bonds issued on or after January 1, 1986, shall be occupied by, or made available to, very low income households, as defined by Section 50105. (B) The rental payments for those units paid by the persons occupying the units (excluding any supplemental rental assistance from the state, the federal government, or any other public agency to those persons or on behalf of those units) shall not exceed the amount derived by multiplying 30 percent times 50 percent of the median adjusted gross income for the area, adjusted for family size, as determined pursuant to Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), or its successor, for a family of one person in the case of a studio unit, two persons in the case of a one-bedroom unit, three persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, and five persons in the case of a four-bedroom unit. (3) Any indebtedness incurred pursuant to a mortgage loan financed under the terms of this chapter shall be subject to acceleration and the balance owing declared immediately due and payable upon any sale of an owner-occupied residence to a purchaser who does not meet the required qualifications for borrowers as established by the authority. (4) The authority shall require the owners of housing projects assisted pursuant to this section to accept as tenants, on the same basis as all other prospective tenants, in the units reserved for very low income households, any very low income households who are recipients of federal certificates for rent subsidies pursuant to the existing program under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), or its successor. The authority shall not permit a selection criteria to be applied to Section 8 certificate holders that is any more burdensome than the criteria applied to all other prospective tenants. (5) No resident in housing units assisted pursuant to this section shall be denied continued occupancy or ownership because, after admission, the resident's family income increases to exceed the eligibility level. However, the authority shall ensure that percentage requirements of this section shall continue to be met by providing the next available unit or units to persons of low income or by taking other actions to satisfy the percentage requirements of this section. (6) In determining whether the percentage requirements of subdivision (c) have been achieved, the following terms and conditions shall be applied: (A) The requirement that 20 percent or 15 percent, as the case may be, of the housing units assisted by an authority pursuant to this section shall be available on a priority basis to, or occupied by, households whose adjusted gross income does not exceed the applicable limits prescribed by subdivision (c) shall apply to the aggregate number of units assisted by an authority pursuant to this section. (B) This section applies only to housing units first assisted after January 1, 1983, and the percentage requirements of subdivision (c) shall be complied with by January 1, 1986, and on January 1 of each even-numbered year thereafter. (C) The percentage requirements of subdivision (c) shall be achieved within each of the following categories: (1) rental housing developments; (2) homeownership developments; and (3) rehabilitation financing. Housing units provided by rehabilitation financing shall not be counted within either of the first two categories. (d) Units required to be reserved for occupancy by subdivision (c) and financed with the proceeds of bonds issued on or after January 1, 1986, shall remain occupied by, or made available to, those persons until the bonds are retired. (e) Multifamily rental housing financed pursuant to this section shall not be subject to the requirements of subparagraph (B) of paragraph (1) and paragraph (2) of subdivision (c), and the requirements of subdivision (d), if all of the following requirements are fulfilled: (1) The housing authority offers each tenant a homeownership opportunity when the bonds are retired. (2) A special trust fund or account which is funded with bond issuance proceeds or developer contributions, or both, is established no later than the time that the multifamily rental housing is first occupied. The initial funding of the account shall be no less than 5 percent of the face value of the bonds issued for the multifamily rental housing project. Upon repayment of the bonds, these funds, and all interest accruing thereon, less any amounts necessary to pay outstanding claims, shall be used to assist housing units for persons of very low income. (3) The requirements of subparagraph (A) of paragraph (1) and subparagraph (A) of paragraph (2) of subdivision (c) shall remain in effect for the periods required by Section 103(b)(12)(B) of Title 26 of the United States Code. (f) It is the intent of the Legislature, and the Legislature declares, that housing authorities are the local entities with primary responsibility for providing housing for low-income and very low income households within their jurisdictions. However, recognizing that housing projects only for low-income households cannot be adequately assisted or developed with currently available funds, and that excess funds from housing projects assisted pursuant to this section can be utilized to further assist in the provision of housing for lower income households, it is the intent of the Legislature that the authorization of this section is to be used to enhance and supplement the traditional housing authority role of providing housing only for low-income households. SEC. 136. Section 39153 of the Health and Safety Code is amended to read: 39153. This chapter shall remain in effect only until January 1, 2006, and as of that date is repealed, unless a later enacted statute, that is enacted on or before January 1, 2006, deletes or extends that date. SEC. 136.5. Section 40453 of the Health and Safety Code is repealed. SEC. 137. Section 44003 of the Health and Safety Code is amended to read: 44003. (a) (1) An enhanced motor vehicle inspection and maintenance program is established in each urbanized area of the state, any part of which is classified by the Environmental Protection Agency as a serious, severe, or extreme nonattainment area for ozone or a moderate or serious nonattainment area for carbon monoxide with a design value greater than 12.7 ppm, and in other areas of the state as provided in this chapter. (2) The enhanced motor vehicle inspection and maintenance program established pursuant to paragraph (1) shall be assessed jointly by the department and the state board periodically to determine whether changes in the program may be warranted. On or before January 1, 2003, the department and the state board shall jointly issue a report to the Legislature based on those periodic assessments, recommending any modifications to the enhanced program to improve its operations and lessen its impact on consumers while still achieving the necessary emission reductions to attain air quality standards. The report shall include a review of any program proposed pursuant to Section 15 of Chapter 803 of the Statutes of 1997. (3) A basic vehicle inspection and maintenance program shall be continued in all other areas of the state where a program was in existence under this chapter as of the effective date of this paragraph. (b) The department may prescribe different test procedures and equipment requirements for those areas described in subdivision (a). Program components shall be operated in all program areas unless otherwise indicated, as determined by the department. In those areas where the biennial program is not implemented and smog check inspections are required to complete the requirements set forth in Sections 4000.1 and 4000.2 of the Vehicle Code, program elements that apply in basic areas, including test equipment requirements for smog check stations, shall apply. (c) (1) Districts classified as attainment areas may request the department to implement all or part of the program elements defined in this chapter. However, the department shall not implement the program established by Section 44010.5 in any area other than an urbanized area, any part of which is classified by the Environmental Protection Agency as a serious, severe, or extreme nonattainment area for ozone or a moderate or serious nonattainment area for carbon monoxide with a design value greater than 12.7 ppm. (2) Districts that include areas classified as basic program nonattainment areas pursuant to subdivision (a) may, except as provided in paragraph (1), request the implementation in those areas of test procedures and equipment required for enhanced program areas and any other program requirement specified for enhanced program areas. SEC. 138. Section 46077 of the Health and Safety Code is amended to read: 46077. The office shall maintain a program to ensure coordinated state and federal noise control programs including, but not limited to, the following: (a) The study of federal noise regulations proposed for adoption pursuant to the Noise Control Act of 1972. (b) The preparation of comments, evaluations, objections or the use of any other means to ensure that the federal government considers existing California noise control statutes and regulations prior to the adoption of regulations in order to prevent the adoption of federal noise regulations weaker than existing state standards. SEC. 139. Section 50408 of the Health and Safety Code is amended to read: 50408. (a) On or before December 31 of each year, the department shall submit an annual report to the Governor and both houses of the Legislature on the operations and accomplishments during the previous fiscal year of the housing programs administered by the department, including, but not limited to, the Emergency Housing and Assistance Program and Community Development Block Grant activity. (b) The report shall include all of the following information: (1) The number of units assisted by those programs. (2) The number of individuals and households served and their income levels. (3) The distribution of units among various areas of the state. (4) The amount of other public and private funds leveraged by the assistance provided by those programs. (5) Information detailing the assistance provided to various groups of persons by programs that are targeted to assist those groups. (6) The information required to be reported pursuant to Section 17031.8. SEC. 140. Section 50806 of the Health and Safety Code is repealed. SEC. 141. Section 50834 of the Health and Safety Code is amended to read: 50834. (a) The department shall prepare a separate and discrete training manual and request for proposal for the economic development set-aside. The department shall ensure that it can respond to requests for grants as rapidly as possible. Once an economic development project award is approved by the director, a contract shall be executed and funds made available as soon as possible. (b) Any program income received by a city or county grantee, or any loan repayments made by a beneficiary to a grantee, may be utilized by the city or county grantee for any activity currently eligible under federal law and regulations, provided that the department determines that the beneficiary or grantee has complied reasonably with the terms and conditions described in the contract between the grantee and the department. (c) Any economic development set-aside of funds not encumbered for funding of a project by the end of the federal contract period shall revert to the general program and be set aside for use if approved projects for which no funds are available are pending. (d) The department shall conditionally commit economic development allocations to projects that meet the requirements of this chapter up front, contingent upon the applicant receiving those other funding commitments necessary to complete the project. SEC. 141.5. Section 52045 of the Health and Safety Code is repealed. SEC. 142. Section 52570 of the Health and Safety Code is repealed. SEC. 143. Section 57007 of the Health and Safety Code is amended to read: 57007. (a) The agency, and the offices, boards, and departments within the agency, shall institute quality government programs to achieve increased levels of environmental protection and the public's satisfaction through improving the quality, efficiency, and cost-effectiveness of the state programs that implement and enforce state and federal environmental protection statutes. These programs shall be designed to increase the level of environmental protection while expediting decisionmaking and producing cost savings. The secretary shall create an advisory group comprised of state and local government, business, environmental, and consumer representatives experienced in quality management to provide guidance in that effort. The secretary shall develop a model quality management program that local agencies charged with implementing air quality, water quality, toxics, solid waste, and hazardous waste laws and regulations may use at their discretion. (b) The agency, and each board, department, and office within the agency, shall submit a yearly report to the Governor and Legislature, no later than December 1 with respect to the previous fiscal year, reporting on the extent to which these state agencies have attained their performance objectives, and on their continuous quality improvement efforts. (c) Nothing in this section abrogates any collective bargaining agreement or interferes with any established employee rights. (d) For purposes of this section, "quality government program" means all of the following: (1) A process for obtaining the views of employees, the regulated community, the public, environmental organizations, and governmental officials with regard to the performance, vision, and needs of the agency implementing the quality government program. (2) A process for developing measurable performance objectiveness using the views of the persons and organizations specified in paragraph (1). (3) Processes for continually improving quality and for training agency personnel, using the information obtained from implementing paragraphs (1) and (2). SEC. 144. Section 100146 of the Health and Safety Code is repealed. SEC. 145. Section 100340 of the Health and Safety Code is repealed. SEC. 146. Section 104145 of the Health and Safety Code is amended to read: 104145. (a) The Legislature hereby requests the University of California to establish and administer the Breast Cancer Research Program, which is created by this act, as a comprehensive grant and contract program to support research efforts into the cause, cure, treatment, earlier detection, and prevention of breast cancer. It is the intent of the Legislature that this program incorporate the principles and organizational elements specified in this act, including, but not limited to, a research program office with a director and other necessary staff, a Breast Cancer Research Council, and research review panels. (b) For the purposes of this section: (1) "Breast cancer research" includes, but is not limited to, research in the fields of biomedical science and engineering, the social, economic and behavioral sciences, epidemiology, technology development and translation, and public health. (2) "Council" means the Breast Cancer Research Council. (3) "Grantee" means any qualifying public, private, or nonprofit agency or individual, including, but not limited to, colleges, universities, hospitals, laboratories, research institutions, local health departments, voluntary health agencies, health maintenance organizations, corporations, students, fellows, entrepreneurs, and individuals conducting research in California. (4) "Program" means the Breast Cancer Research Program. (5) "University" means the University of California. (c) It is the intent of the Legislature that this program be administered pursuant to the following principles: (1) The university shall work in close collaboration with the council and seek the consent of the council before taking an action different from the action recommended by the council. (2) The council shall develop the strategic objectives and priorities of the program, actively participate in the overall management of the program, and make final recommendations on which research grants should be funded based on the research priorities established for the program and the technical merits of the proposals as determined by peer review panels. (3) The program shall fund innovative and creative research, with a special emphasis on research that complements, rather than duplicates, the research funded by the federal government and other entities. (4) The university and the council shall work in close collaboration with the Breast Cancer Early Detection Program. (5) All research funds shall be awarded on the basis of the research priorities established for the program and the scientific merit of the proposed research, as determined by an open, competitive peer review process that ensures objectivity, consistency, and high quality. All investigators, regardless of affiliation, shall have equal access and opportunity to compete for program funds. (6) The peer review process for the selection of research grants awarded under this program shall be generally modeled on that used by the National Institutes of Health in its grantmaking process. (7) An awardee shall be awarded grants for the full cost, both direct and indirect, of conducting the sponsored research consistent with those federal guidelines governing all federal research grants and contracts. All intellectual property assets developed under this program shall be treated in accordance with state and federal law. (8) In establishing its research priorities, the council shall consider a broad range of cross-disciplinary breast cancer research, as defined in paragraph (1) of subdivision (b), including, but not limited to, research into the cause, cure, and prevention of breast cancer; translational and technological research, including research regarding the development and translation of technologies of earlier detection; research regarding the cultural, economic, and legal barriers to accessing the health care system for early detection and treatment of breast cancer; and research examining the link between breast cancer and environmental factors, including both natural and industrial chemicals, estrogen imitators, and electromagnetic fields. (d) It is the intent of the Legislature that the university, as lead agency, do all of the following: (1) Establish the Breast Cancer Research Council in accordance with the following: (A) The council shall consist of at least 13 and no more than 15 members representing a range of expertise and experience, appointed by the President of the University of California. Individuals and organizations may submit nominations to the council, and the University of California shall solicit nominations from relevant organizations and individuals. The council shall be comprised of the following members: (i) Four members from breast cancer survivor and breast cancer-related advocacy groups, including, but not limited to, the California Breast Cancer Organizations (CABCO). (ii) Four members drawn from the ranks of scientists or clinicians, including one from an independent research university in California. The scientists shall have expertise covering the various fields of scientific endeavor, including, but not limited to, the fields of biomedical research and engineering, social, economic, and behavioral research, epidemiology, and public health. (iii) Two members from nonprofit health organizations with a commitment to breast cancer research and control. (iv) One member who is a practicing breast cancer medical specialist. (v) Two members from private industry with a commitment to breast cancer research and control, including, but not limited to, entrepreneurs, or persons from the science or high technology industry or persons from the health care sector. (vi) One ex officio, nonvoting member from the Breast Cancer Early Detection Program. (B) If the president appoints more than 13 members, it is the intent of the Legislature that the proportional representation remain substantially the same as set forth in subparagraph (A). (C) Members shall serve without compensation, but may receive reimbursement for travel and other necessary expenses actually incurred in the performance of their official duties. Any member of the Breast Cancer Research Council shall be ineligible to apply for or receive funding for breast cancer research from the Breast Cancer Research Program during his or her term of service on the council, and for one cycle immediately following his or her term of service on the council, if the council member helped plan that subsequent cycle. (D) Membership shall be staggered in such a way as to maintain a full council while ensuring a reasonable degree of continuity of expertise and consistency of direction. (2) Provide overall coordination of the program. (3) Provide staff assistance to the program and council. (4) Develop administrative procedures relative to the solicitation, review, and awarding of grants to ensure an impartial, high quality peer review system. (5) Recruit and supervise research review panels. The membership of these panels shall vary depending on the subject matter of the proposals and the review requirements, and shall draw on the most qualified individuals. The work of the review panels shall be administered pursuant to policies and procedures established for the implementation of the program. In order to avoid conflicts of interest and to ensure access to qualified reviewers, the university may utilize reviewers not only from California but also from outside the state. When serving on review panels, institutions, corporations, or individuals who have submitted grant applications for funding by this program shall be governed by conflict-of-interest provisions consistent with the National Institutes of Health Manual (Chapter 4510 (item h)), and any applicable conflict-of-interest provisions in state law. (6) Provide for periodic program evaluation to ensure that research funded is consistent with program goals. (7) Maintain a system of financial reporting and accountability. (8) Provide for the systematic dissemination of research results to the public and the health care community, and provide for a mechanism to disseminate the most current research findings in the areas of cause, treatment, cure, earlier detection, and prevention of breast cancer, in order that these findings may be applied to the planning, implementation, and evaluation of the breast cancer-related programs of the State Department of Health Services, including the Breast Cancer Early Detection Program authorized by this act. (9) Develop policies and procedures to facilitate the translation of research results into commercial, alternate technological, and other applications wherever appropriate and consistent with state and federal law. (10) Transmit annually on or before each December 31, a report to the Legislature on grants made, grants in progress, program accomplishments, and future program directions. Each report shall include, but not be limited to, the following information: (A) The number and dollar amounts of research grants, including the amount allocated to indirect costs. (B) The subject of research grants. (C) The relationship between federal and state funding for breast cancer research. (D) The relationship between each project and the overall strategy of the research program. (E) A summary of research findings including discussion of promising new areas. (F) The institutions and campuses receiving grant awards. In addition, the first annual report shall include an evaluation and recommendations concerning the desirability and feasibility of requiring for-profit grantees to compensate the state in the event that a grant results in the development of a profitmaking product. This evaluation shall include, but not be limited to, the costs and benefits of requiring a for-profit grantee to repay the grant, to provide the product at cost to Medi-Cal and other state programs serving low-income breast cancer patients, and to pay the state a percentage of the royalties derived from the product. (e) It is the intent of the Legislature that no more than 5 percent of the allocation to the university be used for the purposes of administration of this program. (f) It is the intent of the Legislature that the responsibilities of the council shall include, but not be limited to, the following: (1) Development and review of the strategic objectives and research priorities of the program. (2) Delineation of resource allocation across the various priorities established for the program. (3) Participation in periodic program and financial review, including the report transmitted pursuant to paragraph (10) of subdivision (d). (4) Development and review of guidelines to ensure fairness, neutrality, and adherence to the principles of merit and quality in the conduct of the program. (5) Development of appropriate linkages to nonacademic entities, including, but not limited to, voluntary organizations, health care delivery systems, industry, government agencies, research entrepreneurs, and public officials. (6) Development and review of criteria and standards for granting awards. (7) Oversight and review of the request for applications (RFA). (8) Review of research review panel reports and recommendations for grant awards. (9) Making of final recommendations on which grants are to be awarded. (10) Development and review of oversight mechanisms for the dissemination of research results. (11) Development and review of policies and liaison programs to facilitate the translation of research results into commercial, alternate technological, or other applications wherever appropriate. (12) Establishment of its own internal rules of operation. (13) Participation in the identification and recruitment of breast cancer advocates and survivors, clinicians, scientists, and persons from the science, high technology, or health care sector with relevant expertise for possible participation in a peer review panel. The council may propose to assign a member of the council to sit as a nonvoting member of the peer review panels. SEC. 147. Section 104370 of the Health and Safety Code is amended to read: 104370. The committee shall be advisory to the department, the University of California, and State Department of Education for the following purposes: (a) Evaluation of research, school- and community-based programs funded under this article as necessary in order to assess the overall effectiveness of efforts made by the programs to reduce the use of tobacco products. In order to evaluate tobacco education, research, and cessation programs, the committee shall seek the cooperation and assistance of the department, the State Department of Education, county offices of education, local lead agencies, administrative representatives, target populations, school officials, and researchers. A principal measurement of effectiveness shall be reduction of smoking rates among a given target population. (b) Facilitation of programs directed at reducing and eliminating tobacco use that are operated jointly by more than one agency or entity. The committee shall propose strategies for the coordination of proposed programs administered by the department, the University of California, and the State Department of Education in order to avoid the duplication of services and to maximize the public benefit of the programs. (c) Make recommendations to the department, the University of California, and the State Department of Education regarding the most appropriate criteria for the selection of, standards of the operation of, and the types of programs to be funded under this article. (d) Reporting to the Legislature on or before January 1 of each year on the number and amount of tobacco education programs funded by the Health Education Account, created by Section 30122 of the Revenue and Taxation Code, the amount of money in the account, any moneys previously appropriated to the department, the University of California, and the State Department of Education but unspent by the departments, a description and assessment of all programs funded under this article, and recommendations for any necessary policy changes or improvements for tobacco education programs. (e) Ensuring that the most current research findings regarding tobacco use prevention are applied in designing the tobacco education programs administered by the department and the State Department of Education. The department and the State Department of Education shall apply the most current findings and recommendations of research including research funded by the Research Account of the Cigarette and Tobacco Products Surtax Fund created by Section 30122 of the Revenue and Taxation Code. (f) Based on the results of programs supported by this article and any other proven methodologies available to the committee, produce a comprehensive master plan for implementing tobacco education programs throughout this state for the prevention and cessation of tobacco use. The master plan shall include implementation strategies for each target population specified in Section 104360 for programs throughout this state. The Tobacco Education and Research Oversight Committee shall submit the master plan to the Legislature biennially. The master plan and its revisions shall include recommendations on administrative arrangements, funding priorities, integration and coordination of approaches by the department, the University of California, and the State Department of Education and their support systems, as well as progress reports relating to each target population. The master plan shall establish a goal of achieving a 75-percent reduction in tobacco consumption in California by the year 1999. SEC. 148. Section 108875 of the Health and Safety Code is amended to read: 108875. The department is responsible for the administration and enforcement of this chapter. The department, upon request, shall report to the Legislature concerning the number and findings of inspections performed and samples taken to determine compliance with this chapter. SEC. 149. Section 119308 of the Health and Safety Code is amended to read: 119308. The President of the California Conference of Local Health Officers shall act as the chairperson of a task force to be formed for the purpose of recommending legislation to the Legislature concerning licensing, training, sanitation, and other subjects deemed necessary to protect the health and welfare of persons seeking the services of practitioners of tattooing, body piercing, and permanent cosmetics. The task force shall be composed of 10 persons to be appointed by the President of the California Conference of Local Health Officers, and shall include a representative from the State Board of Barbering and Cosmetology, a physician and surgeon licensed in this state, a representative from a nonprofit professional body piercers' association, a representative from a nonprofit professional tattooists' association, a representative from a nonprofit professional permanent cosmetic association, a representative from a nonprofit professional cosmetology association, and a representative from an organization representing the interests of local health departments. The president of the California Conference of Local Health Officers may appoint the remaining three members from any other groups that may, in the judgment of the president, be of assistance. SEC. 150. Section 120475 of the Health and Safety Code is amended to read: 120475. On or before March 15 on a biennial basis, the department shall submit a report to the Legislature on all of the following issues: (a) The immunization status of young children in the state, based on available data. (b) The steps taken to strengthen immunization efforts, particularly efforts through the Child Health and Disability Prevention Program. (c) The steps taken to improve immunization levels among currently underserved minority children, young children in family day care and other child care settings, and children with no health insurance coverage. (d) The improvements made in ongoing methods of immunization outreach and education in communities where immunization levels are disproportionately low. (e) Its recommendations for a comprehensive strategy for fully immunizing all California children and its analysis of the funding necessary to implement the strategy. SEC. 151. Section 120480 of the Health and Safety Code is amended to read: 120480. (a) Funds appropriated in the Budget Act of 1998 to the State Department of Health Services for the purpose of valley fever (coccidioidomycosis) vaccine research shall be used to continue and expand the current research effort being conducted by the Valley Fever Vaccine Project. This augmentation shall not be subject to review by the Department of General Services. (b) The department shall augment and amend the existing contract to support research into the development of a vaccine to protect against valley fever. The department may contract on a sole source basis to a nonprofit organization that has provided funding for vaccine research on valley fever. The contract shall require the organization to distribute research grants to support research efforts that are likely to advance the effort to develop a vaccine. (c) The contractor shall establish an advisory group consisting of persons with relevant expertise in the fields of mycology and vaccine development and a representative from the department. The advisory group shall approve grants for those whose research is likely to advance the effort to develop a safe and effective vaccine. The contractor shall seek advice from the appropriate agencies in the National Institutes of Health and other federal agencies with experience in supporting vaccine research when reviewing the research of those receiving funds under this section. Funding awards shall be made so as to complement financial support provided by the federal government. (d) The contractor shall provide the department with periodic status reports on the progress of the researchers receiving funds pursuant to this section. The department shall review progress reports from the contractor describing the research progress and plans for future funding. (e) The contract shall require that funding is provided on the condition that, if a valley fever vaccine is developed and successfully marketed, the state shall be reimbursed for the cost of grants made under this section in proportion to the state's contribution to the research and development effort. SEC. 152. Section 120805 of the Health and Safety Code is amended to read: 120805. (a) The department shall: (1) Additionally, use funds appropriated by Section 6 of Chapter 23 of the Statutes of 1985 for purposes of making reimbursements to counties pursuant to Section 120895, for preventive education for individuals who are seropositive as a result of antibody testing. (2) Issue contracts to evaluate the effectiveness of the AIDS information and education program conducted by the department. (3) Issue contracts for development and implementation of pilot programs of professional education and training for hospital, home health agency, and attendant care workers. (4) Issue contracts for the development and implementation of pilot programs to reduce the spread of AIDS through residential detoxification and outpatient detoxification and treatment services for intravenous drug users with AIDS or AIDS-related conditions. (5) Monitor state and federal AIDS-related budget and policy development, and coordinate budget items to ensure that funding for matters related to AIDS is adequate and complete within the department each fiscal year. (6) Develop and maintain an information clearinghouse within the department including periodic updates or releases to inform health professionals or community organizations providing services to people with AIDS or AIDS-related conditions of the status of current or new clinical drug trials. These updates shall be compiled through review of scientific journals and in conjunction with the UC AIDS Task Force and researchers conducting clinical drug trials in California. (7) Review, edit, and input summaries from scientific journals into the Computerized AIDS Information Network (CAIN), and do outreach about CAIN availability to health professionals. (8) Develop and conduct a needs assessment of the availability of supportive services for people with AIDS or AIDS-related conditions. The needs assessment shall be conducted in conjunction with the state's AIDS education contractors and with any public or private agencies providing services to people with AIDS or AIDS-related conditions. (9) Promote information and education programs for the general public to correct misinformation about AIDS. This shall include, but need not be limited to, periodic press releases to the printed and broadcast media and public service announcements. (10) Establish, with the assistance of other state agencies as the department deems appropriate, centralized translation services to facilitate development of multilanguage, culturally relevant educational materials on HIV infection. (11) Include, to the extent feasible, in its HIV surveillance and reporting practices, a breakdown of the major Asian-Pacific Islander subgroup populations. This breakdown shall be reflected in the surveillance and morbidity statistics issued by the director pursuant to Section 120825. (12) Include, to the extent feasible with existing resources, in its HIV surveillance and reporting practices, information concerning newly identified clinical manifestations of HIV infection and available resources for health care practitioners to seek diagnostic and treatment information. (b) The director shall contract for a prospective two-year study to accomplish the following objectives: (1) Determine the medical costs of AIDS, comparing inpatient care, outpatient care, physician services, and community support services. (2) The study shall include cost factors in the review of inpatient costs that may not be apparent in the analysis of charges, such as private rooms and social work. (c) Notwithstanding Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code, if the director determines that it is in the best interest of the state to enter into a contract for the purposes specified below without competitive bids, then the state director may, during the 1985-86 fiscal year, enter into a sole source contract for all of the following: (1) Educational program evaluation. (2) Education of hospital, home health agency, and attendant care workers. (3) Drug education and treatment programs. (4) The cost-of-care study. SEC. 153. Section 123775 of the Health and Safety Code is amended to read: 123775. Each infant medical dispatch center established pursuant to this article shall annually report on the progress of the project, the status of the data base obtained pursuant to Section 123760, and any necessary changes to meet the goals prescribed in Section 123760 to the Legislature upon request of either the Joint Legislative Budget Committee or other interested committees or Members of the Legislature. SEC. 154. Section 10089.40 of the Insurance Code is amended to read: 10089.40. (a) Rates established by the authority shall be actuarially sound so as to not be excessive, inadequate, or unfairly discriminatory. Rates shall be established based on the best available scientific information for assessing the risk of earthquake frequency, severity, and loss. Rates shall be equivalent for equivalent risks. Factors the board shall consider in adopting rates include, but are not limited to, the following: (1) Location of the insured property and its proximity to earthquake faults and to other geological factors that affect the risk of earthquake or damage from earthquake. (2) The soil type on which the insured dwelling is built. (3) Construction type and features of the insured dwelling. (4) Age of the insured dwelling. (5) The presence of earthquake hazard reduction factors, including those set forth in subdivision (a) of Section 10089.2. (b) (1) If scientific information from geologists, seismologists, or similar experts that assesses the frequency or severity of risk of earthquake is considered in setting rates or in arriving at the modeling assumptions upon which those rates are based, the information may be used to establish differentials among risks only if the information, assumptions, and methodology used are consistent with the available geophysical data and the state of the art of scientific knowledge within the scientific community. (2) Scientific information from geologists, seismologists, or similar experts shall not be conclusive to support the establishment of different rates between the most populous rating territories in the northern and southern regions of the state unless that information, as analyzed by experts such as the United States Geological Survey, the California Division of Mines and Geology, and experts in the scientific or academic community, clearly shows a higher risk of earthquake frequency, severity, or loss between those most populous rating territories to support those differences. (3) It is not the intent of the Legislature in adopting this subdivision to mandate a uniform statewide flat rate for California Earthquake Authority policies. (c) The classification system established by the board shall not be adjusted or tempered in any way to provide rates lower than are justified for classifications that present a high risk of loss or higher than are justified for classifications that present a low risk of loss. (d) Policyholders who have retrofitted their homes to withstand earthquake shake damage according to standards and to the extent set by the board shall enjoy a premium discount or credit of 5 percent on the authority-issued policy of residential earthquake coverage. For residential dwellings, the 5-percent discount shall be applicable if the dwelling, at a minimum, meets the following requirements: the dwelling was built prior to 1979, is tied to the foundation, has cripple walls braced with plywood or its equivalent, and the water heater is secured to the building frame. For mobilehomes, the 5-percent discount shall be applicable if the mobilehome, at a minimum, is reinforced by an earthquake resistant bracing system certified by the Department of Housing and Community Development. The board may approve a premium discount or credit above 5 percent, as long as the discount or credit is determined actuarially sound by the authority. (e) All rates shall be approved by the commissioner prior to their use. SEC. 155. Section 10890 of the Insurance Code is repealed. SEC. 156. Section 12693.93 of the Insurance Code is amended to read: 12693.93. The board shall prepare an evaluation of the program and other state efforts to expand coverage to children in conformance with Section 2108 of Title XXI of the Social Security Act. The evaluation shall incorporate measurement of the delivery of preventive services by health plans and health care providers and assessment of changes over time in the health status of children participating in the program. SEC. 157. Section 3214 of the Labor Code is amended to read: 3214. (a) The Department of Corrections and the Department of the Youth Authority shall, in conjunction with all recognized employee representative associations, develop policy and implement the workers' compensation early intervention program by December 31, 1989, for all department employees who sustain an injury. The program shall include, but not be limited to, counseling by an authorized independent early intervention counselor and the services of an agreed medical panel to assist in timely decisions regarding compensability. Costs of services through early intervention shall be borne by the departments. (b) It is the intent of the Legislature to reduce all costs associated with the delivery of workers' compensation benefits, in balance with the need to ensure timely and adequate benefits to the injured worker. Toward this goal the workers' compensation early intervention program was established in the Department of Corrections and the Department of the Youth Authority. The fundamental concept of the program is to settle disputes rather than to litigate them. This is a worthwhile concept in terms of cost control for the employer and timely receipt of benefits for the worker. To ascertain the effectiveness of the program is crucial in helping guide policy in this arena. SEC. 158. Section 1335 of the Military and Veterans Code is amended to read: 1335. With respect to the design and construction of an enhanced memorial, the commission may do all of the following: (a) Establish a schedule for the design, construction, and dedication of the enhanced memorial. (b) Implement procedures to solicit designs for beautifying and enhancing the memorial and devise a selection process for the choice of the design. (c) Select individuals or organizations to provide fundraising services and to construct the enhanced memorial. (d) Review and monitor the design and construction of the memorial and establish a program for the rededication of the memorial. (e) Consult with the Department of General Services to determine parameters for the final size of the memorial. (f) Consult with and obtain final design and site orientation approval from the Department of General Services. SEC. 158.2. Section 1170.6 of the Penal Code is repealed. SEC. 158.5. Section 7433 of the Penal Code is amended to read: 7433. Money in the fund may only be expended pursuant to appropriations by the Legislature. SEC. 159. Section 9008 of the Penal Code is repealed. SEC. 160. Section 1001.65 of the Penal Code is amended to read: 1001.65. (a) A district attorney may collect a fee if his or her office collects and processes a bad check. The amount of the fee shall not exceed thirty-five dollars ($35) for each bad check in addition to the actual amount of any bank charges incurred by the victim as a result of the offense. (b) Notwithstanding subdivision (a), when a criminal complaint is filed in a bad check case after the maker of the check fails to comply with the terms of the bad check diversion program, the court, after conviction, may impose a bad check collection fee for the collection and processing efforts by the district attorney of not more than thirty-five dollars ($35) for each bad check in addition to the actual amount of any bank charges incurred by the victim as a result of the offense, not to exceed one thousand dollars ($1,000) in the aggregate. The court also may, as a condition of probation, require a defendant to participate in and successfully complete a check writing education class. If so required, the court shall make inquiry into the financial condition of the defendant and, upon a finding that the defendant is able in whole or part to pay the expense of the education class, the court may order him or her to pay for all or part of that expense. (c) If the district attorney elects to collect any fee for bank charges incurred by the victim pursuant to this section, that fee shall be paid to the victim for any bank fees that the victim may have been assessed. In no event shall reimbursement of a bank charge to the victim pursuant to subdivision (a) or (b) exceed ten dollars ($10) per check. SEC. 161. Section 13510.6 of the Penal Code is repealed. SEC. 162. Section 13602 of the Penal Code is amended to read: 13602. (a) The Department of Corrections shall use the training academy at Galt. This academy shall be known as the Richard A. McGee Academy. The Department of the Youth Authority shall use the training center at Stockton. The training divisions, in using the funds, shall endeavor to minimize costs of administration so that a maximum amount of the funds will be used for providing training and support to correctional peace officers while being trained by the departments. (b) Each new cadet who attends an academy after July 1, 2001, shall complete the course of training, pursuant to standards approved by CPOST before he or she may be assigned to a post or job as a peace officer. After July 1, 2001, every newly appointed first-line or second-line supervisor shall complete the course of training, pursuant to standards approved by CPOST for that position. Every effort shall be made to provide training prior to commencement of supervisorial duties. If this training is not completed within six months of appointment to that position, any first-line or second-line supervisor shall not perform supervisory duties until the training is completed. SEC. 163. Section 13731 of the Penal Code is amended to read: 13731. (a) The San Diego Association of Governments may serve as the regional clearinghouse for criminal justice data involving domestic violence. The association may obtain monthly crime statistics from all law enforcement agencies in San Diego County. These law enforcement agencies may include their domestic violence supplements in the monthly crime reports that are supplied to the association. The association may obtain client-based data regarding clients or victims of domestic violence who seek protection in San Diego County shelters. (b) Contingent upon the appropriation of funds therefor, the association shall do all of the following: (1) Create a standardized, uniform intake form, to be referred to as a Compilation of Research and Evaluation Intake Instrument, also known as C.O.R.E., for use in San Diego County's domestic violence shelters. This form shall be completed and ready to use in the field for data collection purposes not later than March 31, 1997. The C.O.R.E. intake form shall be standardized to compile the same information from all clients for all shelters. (2) Collect and analyze the standardized, uniform intake form in order to compile information including, but not limited to, victim sociodemographic characteristics, descriptions of domestic violence incidents pertaining to each victim and services needed by domestic violence shelter clients within San Diego County. (3) Use the collected client-based data to describe the nature and scope of violence from the perspective of domestic violence shelter clients and to determine the service needs of clients and what gaps in service delivery exist, so that resources can be appropriately targeted and allocated. All data supplied to the association shall be stripped of any information regarding the personal identity of an individual to protect the privacy of domestic violence shelter clients. (4) Establish an advisory committee in order to facilitate the research effort and to assess the value of the research project. The advisory committee shall consist of representation from the shelters, as well as members of the San Diego County Domestic Violence Council, local justice administrators, and the principal investigator. The advisory committee shall meet at least four times before April 30, 1999, to review the progress of the research, including research methodology, data collection instruments, preliminary analyses, and work product as they are drafted. Advisory committee members shall evaluate the final research product in terms of applicability and utility of findings and recommendations. SEC. 164. Section 13892 of the Penal Code is repealed. SEC. 164.5. Section 10350 of the Public Contract Code is repealed. SEC. 165. Section 12104 of the Public Contract Code is repealed. SEC. 167. Section 674 of the Public Resources Code is repealed. SEC. 170. Section 5017 of the Public Resources Code is repealed. SEC. 172. Section 5094.2 of the Public Resources Code is amended to read: 5094.2. With respect to each project as to which a letter of intent has been given, the Resources Agency through the Department of Parks and Recreation and the Department of Fish and Game, in cooperation with affected local public agencies, shall conduct an investigation and study of the project with respect to the areas of interest of each and prepare plans of the proposed state participation therein. The plans shall be submitted, upon request, to each affected local public agency for its review and comments thereon. The comments shall be transmitted to the agency by the affected local public agency within such period as determined by the administrator, which period shall be not less than 30 days nor more than 60 days from the date of submission to the local public agency. SEC. 173. Section 5096.244 of the Public Resources Code is amended to read: 5096.244. (a) The State Coastal Conservancy shall prepare and adopt priorities, criteria, and procedures for the making of grants to local public agencies or nonprofit organizations pursuant to Section 5096.232. The procedures shall specify the categories of expenditures for grants, and shall include procedures for the submittal, review, and approval of applications, disbursements, and, where appropriate, repayment of grant funds. (b) An application for a grant pursuant to this article shall be submitted to the State Coastal Conservancy for evaluation, review of adequacy, and classification as a park, beach, coastal access, or other project necessary to protect coastal resource values. (c) The minimum amount that may be applied for any individual project is one thousand dollars ($1,000). (d) Every application for a grant shall comply with the provisions of the California Environmental Quality Act (Division 13 (commencing with Section 21000)). (e) Funds granted pursuant to Section 5096.232 may be expended for development, rehabilitation, or restoration only on lands owned by, or subject to a lease or other interest held by, the applicant. If those lands are not owned by the applicant, the applicant shall first demonstrate to the satisfaction of the State Coastal Conservancy that the development, rehabilitation, or restoration will provide benefits commensurate with the type and duration of interest in land held by the applicant. (f) No state grant funds authorized under Section 5096.232 may be disbursed until the applicant agrees that any property acquired or developed with the funds shall be used by the applicant only for the purpose for which the funds were requested and that no other use, sale, or other disposition of the property shall be permitted except by specific act of the Legislature. If the use of the property is changed to one other than permitted under the category in Section 5096.232 from which the funds were appropriated, or the property is sold or otherwise disposed of, an amount equal to the amount of the grant or equal to the fair market value of the real property, or portion thereof, acquired or developed with the grant, whichever is greater, shall be used by the local public agency or the nonprofit organization for a purpose authorized in that category or shall be reimbursed to the State Coastal Conservancy Fund of 1984 for a use authorized in that category. (g) No state grant funds authorized under Section 5096.232 may be disbursed unless the applicant agrees to maintain and operate the property acquired or developed pursuant to this article for a period commensurate with the type of project and the proportion of state grant funds and local funds allocated to the capital costs of the project. SEC. 174. Section 5631 of the Public Resources Code is amended to read: 5631. The department, in cooperation with the federal government, local public agencies, and appropriate representatives of industry, shall, from time to time as needed but no less frequently than once very five years, coordinate and conduct a statewide needs analysis in relation to the purposes of this chapter. That analysis shall include a full review of the grant program authorized pursuant to this chapter. The department shall report its findings and recommendations from any analysis, including recommendations as to funding levels and sources in connection with the grant program, to the Legislature. The department may recommend specific legislative changes to the program. SEC. 175. Section 5780.17 of the Public Resources Code is repealed. SEC. 176. Section 6211 of the Public Resources Code is amended to read: 6211. (a) Whenever a parcel of timbered land under the jurisdiction of the commission is totally surrounded by, or is contiguous to, a national forest or a state forest, the commission may, if it is in the best interests of the state to do so, and after 10 days' prior notice to the Secretary of the Resources Agency for the receipt of comments, provide for the harvesting of timber from that land at the same time as the orderly harvesting of the surrounding or adjacent federal-owned or state-owned timber is conducted. In carrying out this section, the commission may enter into agreements with the United States or the Department of Forestry and Fire Protection for the inclusion of timbered lands under the jurisdiction of the commission within a total parcel to be offered for timber harvesting contracts. (b) Notwithstanding any other provision of law, timber from lands under the jurisdiction of the commission shall not be sold to any California division of a primary manufacturer, or to any person for resale to a primary manufacturer, who does either of the following: (1) Uses that timber at any plant not located within the United States, unless it is sawn on four sides to dimensions not greater than 4 inches by 12 inches. (2) Within one year prior to the bid date and one year after the termination of the contract, sells unprocessed timber which is harvested from private timberlands and is exported into foreign commerce. For the purposes of this section, "unprocessed timber" has the same meaning as set forth in subdivision (d) of Section 4650.1. (c) Any purchaser of timber from lands under the jurisdiction of the commission who makes use of the timber in violation of paragraph (1) of subdivision (b) is prohibited from making any further purchases of timber from any such lands for a period of five years. (d) The commission may adopt appropriate regulations to prevent the substitution of timber from lands under its jurisdiction for timber exported from private timberlands. SEC. 177. Section 6230 of the Public Resources Code is amended to read: 6230. An amount specified in the annual Budget Act shall be available for distribution for public and private higher education for use as up to two-thirds of the local matching share for projects under the National Sea Grant College and Program Act of 1966 (P.L. 89-688) approved, upon the recommendation of the advisory panel appointed pursuant to Section 6232, by the Secretary of the Resources Agency or the secretary's designee. SEC. 178. Section 6231 of the Public Resources Code is amended to read: 6231. There shall be a Sea Grant Advisory Panel consisting of 17 members as provided in Sections 6232, 6233, and 6234. The advisory panel shall do all of the following: (a) Review all applications for funding under this section and make recommendations based upon the priorities it establishes. (b) Periodically review progress on sea grant research projects subsequent to their approval and funding under this chapter. (c) Make recommendations to the Secretary of the Resources Agency with respect to the implementation of this section. SEC. 179. Section 6477 of the Public Resources Code is amended to read: 6477. The State Lands Commission shall report quarterly to the Teachers' Retirement Board and annually to the Legislature and the Governor on the following: (a) The management of school and lieu lands. (b) Waivers, suspensions, reductions, alterations, or amendments made by the commission pursuant to Section 6916, together with the reasons therefor. (c) The commission shall file a report with the Legislature annually on all waivers, suspensions, reductions, alterations, or amendments made by the commission pursuant to this section, together with the reasons therefor. SEC. 180. Section 6916 of the Public Resources Code is amended to read: 6916. (a) The commission may issue leases for direct heat application of geothermal resources for nonelectrical purposes for a royalty of less than 10 percent of gross revenue if it determines that such a royalty would be in the best interests of the state. (b) The commission may also waive, suspend, or reduce the rental or minimum royalty for the lands included in any permit or lease, or any portion thereof, and waive, suspend, alter, or amend the operating requirements contained in the lease or regulations adopted pursuant to this section affecting operations of the lease or permit, in the interests of conservation, and to encourage the greatest ultimate recovery of geothermal resources if the commission determines that the action is necessary or beneficial to promote development or finds that the permit or lease cannot be successfully operated under the permit or lease terms or under the regulations. SEC. 181. Section 9756 of the Public Resources Code is repealed. SEC. 182. Section 14314 of the Public Resources Code is amended to read: 14314. (a) On and after July 1, 1994, to further long-term strategic planning, the development of performance measures, operational and administrative efficiency and flexibility, and commitment to quality improvement, the corps shall be designated by the Department of Finance as a performance budget department whose annual budget shall take the form of a budget contract between the Legislature and the corps. (b) The Legislature hereby requests the Governor to issue an Executive order establishing performance goals for the corps, by which the Legislature may evaluate a proposed corps contract, and that the Executive order includes such goals as increasing the number of corpsmembers, increasing the number of corpsmember hours dedicated to public service conservation work and emergency response, and developing specific and quantifiable measures of the corps' success. SEC. 183. Section 14537 of the Public Resources Code is amended to read: 14537. The department shall keep accurate books, records, and accounts of all of its dealings, and these books, records, and accounts are subject to an annual audit by an auditing firm selected by the department. The auditing firm or the department shall also conduct a selective audit of entities making payments to, or receiving payments from, the department to determine whether redemption payments and applicable processing fees are being paid to the department on all beverage containers sold in California, and that refund values and processing payments are being paid out properly by the department. The audit shall be made a part of an annual report, copies of which shall be submitted to the Governor and the Legislature, by January 1 of each year. SEC. 184. Section 19524 of the Public Resources Code is repealed. SEC. 185. Section 22052 of the Public Resources Code is repealed. SEC. 186. Section 25310.5 of the Public Resources Code is repealed. SEC. 187. Section 25403.5 of the Public Resources Code is amended to read: 25403.5. The commission shall, by July 1, 1978, adopt standards by regulation for a program of electrical load management for each utility service area. In adopting the standards, the commission shall consider, but need not be limited to, the following load management techniques: (1) Adjustments in rate structure to encourage use of electrical energy at off-peak hours or to encourage control of daily electrical load. Compliance with such changes in rate structure shall be subject to the approval of the Public Utilities Commission in a proceeding to change rates or service. (2) End use storage systems which store energy during off-peak periods for use during peak periods. (3) Mechanical and automatic devices and systems for the control of daily and seasonal peakloads. The standards shall be cost-effective when compared with the costs for new electrical capacity, and the commission shall find them to be technologically feasible. Any expense or any capital investment required of a utility by the standards shall be an allowable expense or an allowable item in the utility rate base and shall be treated by the Public Utilities Commission as such in a rate proceeding. The commission may determine that one or more of such techniques are infeasible and may delay their adoption. If the commission determines that any techniques are infeasible to implement, it shall make a finding in each instance stating the grounds upon which the determination was made and the actions it intends to take to remove the impediments to implementation. The commission may also grant, upon application by a utility, an exemption from the standards or a delay in implementation. The grant of an exemption or delay shall be accompanied by a statement of findings by the commission indicating the grounds for the exemption or delay. Exemption or delay shall be granted only upon a showing of extreme hardship, technological infeasibility, lack of cost-effectiveness, or reduced system reliability and efficiency. This section does not apply to proposed sites and related facilities for which a notice of intent or an application requesting certification has been filed with the commission prior to the effective date of the standards. SEC. 189. Section 31108 of the Public Resources Code is amended to read: 31108. Commencing on January 2, 1980, and every third year thereafter, the conservancy shall prepare and submit to the Governor and to the Legislature a report describing progress in achieving the objectives of this division. The report shall include the following: (a) An evaluation of the effectiveness of the conservancy's programs in preserving agricultural lands, restoring coastal habitat, providing public access to the coastline, and in undertaking other functions prescribed in this division. (b) Identification of additional funding, legislation, or other resources required to more effectively carry out the objectives of this division. (c) A discussion of its progress in addressing the goals, priority areas, and concerns referenced in subdivision (a) of Section 31163, including, but not limited to, any funds that are received or disbursed for purposes related to addressing those goals, priority areas, and concerns. SEC. 190. Section 31163 of the Public Resources Code is amended to read: 31163. (a) The conservancy shall cooperate with cities, counties, and districts, the bay commission, other regional governmental bodies, nonprofit land trusts, nonprofit landowner organizations, and other interested parties in identifying and adopting long-term resource and outdoor recreational goals for the San Francisco Bay area, which shall guide the ongoing activities of the San Francisco Bay Area Conservancy Program. The conservancy shall utilize the list of priority areas and concerns established by the bay commission pursuant to subdivision (b) of Section 31056 as guidance in the selection of those San Francisco area projects that are within the jurisdiction of the bay commission. However, the guidance provided by the bay commission is advisory and the conservancy shall have the responsibility for making program decisions. Any acquisition of real property using funds authorized pursuant to this chapter shall be from willing sellers if the land is actively farmed or ranched. Any acquisition of real property by the conservancy pursuant to this chapter shall be from willing sellers. (b) The conservancy shall participate in and support interagency actions and public/private partnerships in the San Francisco Bay area for the purpose of implementing subdivision (a), and providing for broad-based local involvement in, and support for, the San Francisco Bay Area Conservancy Program. (c) The conservancy shall utilize the criteria specified in this subdivision to develop project priorities for the San Francisco Bay Area Conservancy Program that provide for development and acquisition projects, urban and rural projects, and open-space and outdoor recreational projects. The conservancy shall give priority to projects that, to the greatest extent, meet the following criteria: (1) Are supported by adopted local or regional plans. (2) Are multijurisdictional or serve a regional constituency. (3) Can be implemented in a timely way. (4) Provide opportunities for benefits that could be lost if the project is not quickly implemented. (5) Include matching funds from other sources of funding or assistance. SEC. 191. Section 42005 of the Public Resources Code is amended to read: 42005. (a) The board shall develop a comprehensive market development plan using existing resources, that will stimulate market demand in the state for postconsumer waste material and secondary waste material generated in the state. (b) The board's market development plan shall include, but shall not be limited to, achieving all of the following goals: (1) Increasing market demand for postconsumer waste materials and secondary waste materials available due to California's source reduction and recycling programs. (2) Increasing demand for recycled content products, especially high quality, value-added products. (3) Promoting efficient local waste diversion systems which yield high quality, industrially usable feedstocks. (4) Promoting the competitive collection and use of secondary waste materials. (c) The board's development plan shall also include efforts to encourage and promote cooperative, regional programs to expand markets for recycled material. These programs shall include activities to address problems and opportunities that are unique to rural, urban, and suburban areas of the state. (d) The board shall develop a plan, using existing resources, to provide assistance to local agencies when requested by a city, county, or regional agency, in the implementation of cost-effective programs that provide a quality supply of recycled materials for markets. SEC. 192. Section 42871 of the Public Resources Code is amended to read: 42871. The board shall administer a tire recycling program that promotes and develops alternatives to the landfill disposal of used whole tires. SEC. 194. Section 71040 of the Public Resources Code is amended to read: 71040. (a) The Secretary for Environmental Protection shall establish permit assistance centers throughout the state to provide businesses and other entities with assistance in complying with laws and regulations implemented by every board, department, and office within the California Environmental Protection Agency. Each permit assistance center shall, to the extent feasible, incorporate permit assistance activities of local and federal entities and of other entities of the state into its operations. (b) In addition to the centers authorized pursuant to subdivision (a), the secretary shall establish an electronic online permit assistance center through the Internet. The electronic online permit assistance center shall be available for use by any business or other entity subject to a law or regulation implemented by a board, department, or office within the California Environmental Protection Agency, and shall provide a business or other entity with assistance in complying with those laws and regulations. The center, which shall be called the "California Government-On Line to Desktops" or "CALGOLD" program, shall provide special software, "hotlinks" and other online resources and tools that may be used by a business or other entity to streamline and expedite compliance with laws and regulations implemented by a board, department, or office within the California Environmental Protection Agency. The CALGOLD program shall, to the extent feasible, incorporate permit assistance activities of local and federal entities and of other entities of the state into its operations. (c) The Secretary for Environmental Protection shall report annually, no later than December 1 with respect to the previous fiscal year, to the Governor and the Legislature on the number of permits issued, expedited, or otherwise streamlined by each center; the number and types of businesses assisted by each center; and how the assistance provided to businesses has improved environmental protection. The secretary, in consultation with the Secretary of the Trade and Commerce Agency, shall report on the permit assistance activities of both agencies and shall make recommendations to ensure that these activities are coordinated and nonduplicative. SEC. 195. Section 383 of the Public Utilities Code is amended to read: 383. Moneys collected pursuant to paragraph (3) of subdivision (b) of Section 381 shall be transferred to a subaccount of the Energy Resources Programs Account of the California Energy Resources Conservation and Development Commission to be held until further action by the Legislature for purposes of: (a) Supporting the operation of existing and the development of new and emerging in-state renewable resource technologies. (b) Supporting the operations of existing renewable resource generation facilities which provide fire suppression benefits, reduce materials going into landfills, and mitigate the amount of open-field burning of agricultural waste. (c) Supporting the operations of existing, innovative solar thermal technologies that provide essential peak generation and related reliability benefits. SEC. 196. Section 398.5 of the Public Utilities Code is amended to read: 398.5. (a) Retail suppliers that disclose specific purchases pursuant to Section 398.4 shall report on March 1, 1999, and annually thereafter, to the California Energy Resources Conservation and Development Commission, for each electricity offering, for the previous calendar year each of the following: (1) The kilowatthours purchased, by generator and fuel type during the previous calendar year, consistent with the meter data, including losses, reported to the system operator. (2) For each electricity offering the kilowatthours sold at retail. (3) For each electricity offering the disclosures made to consumers pursuant to Section 398.4. (b) Information submitted to the California Energy Resources Conservation and Development Commission pursuant to this section that is a trade secret as defined in subdivision (d) of Section 3426.1 of the Civil Code shall not be released except in an aggregated form such that trade secrets cannot be discerned. (c) On or before January 1, 1998, the California Energy Resources Conservation and Development Commission shall specify guidelines and standard formats, based on the requirements of this article and subject to public hearing, for the submittal of information pursuant to this article. (d) In developing the rules and procedures specified in this section, the California Energy Resources Conservation and Development Commission shall seek to minimize the reporting burden and cost of reporting that it imposes on retail suppliers. (e) On or before October 15, 1999, and annually thereafter, the California Energy Resources Conservation and Development Commission shall issue a report comparing information available pursuant to Section 398.3 with information submitted by retail suppliers pursuant to this section, and with information disclosed to consumers pursuant to Section 398.4. This report shall be forwarded to the California Public Utilities Commission. (f) Beginning April 15, 1999, and annually thereafter, the California Energy Resources Conservation and Development Commission shall issue a report calculating net system power. The California Energy Resources Conservation and Development Commission will establish the generation mix for net generation imports delivered at interface points and metered by the system operators. The California Energy Resources Conservation and Development Commission shall issue an initial report calculating preliminary net system power for calendar year 1997 on or before January 1, 1998. This report shall be updated on or before October 15, 1998. (g) The provisions of this section shall not apply to generators providing electric service onsite, under an over-the-fence transaction as described in Section 218, or to an affiliate or affiliates, as defined in subdivision (a) of Section 372. (h) The California Energy Resources Conservation and Development Commission may verify the veracity of environmental claims made by retail suppliers. SEC. 197. Section 495.7 of the Public Utilities Code is amended to read: 495.7. (a) The commission may, by rule or order, establish procedures to allow telephone or telegraph corporations to apply for the exemption of certain telecommunications services from the tariffing requirements of Sections 454, 489, 491, and 495. (b) The commission may, by rule or order, partially or completely exempt certain telecommunications services, except basic exchange service offered by telephone or telegraph corporations, from the tariffing requirements of Sections 454, 489, 491, and 495 if either of the following conditions is met: (1) The commission finds that the telephone corporation lacks significant market power in the market for that service for which an exemption from Sections 454, 489, 491, and 495 is being requested. Criteria to determine market power shall include, but not be limited to, the following: company size, market share, and type of service for which an exemption is being requested. The commission shall promulgate rules for determining market power based on these and other appropriate criteria. (2) The Commission finds that a telephone corporation is offering a service in a given market for which competitive alternatives are available to most consumers, and the commission has determined that sufficient consumer protections exist in the form of rules and enforcement mechanisms to minimize the risk to consumers and competition from unfair competition or anticompetitive behavior in the market for the competitive telecommunications service for which a provider is requesting an exemption from Sections 454, 489, 491, and 495. This paragraph does not apply to monopoly services for which the commission retains exclusive authority to set or change rates. (c) Before implementing procedures to allow telephone corporations to apply for the exemption of certain telecommunications services from the tariffing requirements of Sections 454, 489, 491, and 495, and no later than September 30, 1996, the commission shall establish consumer protection rules for those exempted services that include, but are not limited to: (1) Rules regarding the availability of rates, terms, and conditions of service to consumers. (2) Rules regarding notices to consumers of rate increases and decreases, changes in terms and conditions of service, and change of ownership. (3) Rules to identify and eliminate unacceptable marketing practices including, but not limited to, fraudulent marketing practices. (4) Rules to assure that aggrieved consumers have speedy, low-cost, and effective avenues available to seek relief in a reasonable time. (5) Rules to assure consumers that their right to informational privacy for services over which the commission has oversight. (6) Rules to assure a telephone corporation's cooperation with the commission investigations of customer complaints. (d) Prior to granting every exemption from the tariffing requirements of Sections 454, 489, 491, and 495, the commission shall find that there is no improper cross-subsidization or anticompetitive behavior in connection with the service for which an exemption is requested. (e) Nothing in this section shall require that the commission exempt any telecommunications service or telecommunications service provider from the requirements of Sections 454, 489, 491, and 495, nor shall this section limit the authority of the commission to require telephone corporations to provide it with contemporaneous information about the current terms, conditions, and prices under which telecommunications services that are exempted, in whole or in part, from Sections 454, 489, 491, and 495 are being offered to subscribers. (f) The commission, after notice and hearing if requested, may cancel, revoke, or suspend any exemption granted under subdivision (b) to any telephone corporation that fails to comply with any of the rules established by the commission pursuant to subdivision (c). (g) Any telecommunications service exempted from the tariffing requirements of Sections 454, 489, 491, and 495 shall not be subject to the limitation on damages that applies to tariffed telecommunications services. (h) The provisions of this section do not apply to commercial mobile services as defined by the Omnibus Budget Reconciliation Act of 1993 (Public Law 103-66). SEC. 198. Section 739.3 of the Public Utilities Code is amended to read: 739.3. (a) The commission shall develop, implement, and maintain a suitable program to establish a fair and equitable local rate structure aided by transfer payments to small independent telephone corporations serving rural and small metropolitan areas. The purpose of the program shall be to promote the goals of universal telephone service and to reduce any disparity in the rates charged by those companies. (b) For purposes of this section, small independent telephone corporations means those independent telephone corporations serving rural areas, as determined by the commission. (c) The commission shall develop, implement, and maintain a suitable, competitively neutral, and broadbased program to establish a fair and equitable local rate support structure aided by transfer payments to telephone corporations serving areas where the cost of providing services exceeds rates charged by providers, as determined by the commission. The commission shall develop and implement the program on or before October 1, 1996. The purpose of the program shall be to promote the goals of universal telephone service and to reduce any disparity in the rates charged by those companies. The commission shall structure the program required by this subdivision so that the amount of each transfer payment reasonably equals the value of the benefits of universal service to the transferor entity and its subscribers. Except as otherwise explicitly provided, this subdivision does not limit the manner in which the commission collects and disburses funds, and does not limit the manner in which it may include or exclude the revenue of transferring entities in structuring the program. (d) The commission shall investigate subsidy reduction, or elimination of subsidies in service areas with demonstrated competition. (e) Not later than February 1, 2001, the Legislative Analyst shall conduct a review of the state's universal telephone service program, including subsequent modifications as appropriate, and report to the Governor and the Legislature as part of the Legislative Analyst's analysis of the Budget Bill to be issued in February 2001. In evaluating the program, the Legislative Analyst shall consider all of the following: (1) The findings of the report required by subdivision (e). (2) An assessment of whether any identified problems are issues that affect the continued implementation of this chapter or issues that warrant revisions of statutes or regulations. (f) This section shall remain in effect until January 1, 2005, and as of that date is repealed, unless a later enacted statute, which becomes effective on or before January 1, 2005, deletes or extends that date. SEC. 199. Section 28767.3 of the Public Utilities Code is amended to read: 28767.3. Not later than October 12, 1974, the board shall adopt an affirmative action program approved by the Office of Federal Contract Compliance of the Department of Labor. SEC. 200. Section 130292 of the Public Utilities Code is amended to read: 130292. (a) The project shall be coordinated by the statutorily created county transportation commission in whose jurisdiction the project is located. The county transportation commission shall consult with local traffic and law enforcement agencies, the Department of Transportation, and the Department of the California Highway Patrol on all aspects of the project in order to provide necessary coordination of the project with existing plans and programs. (b) The county transportation commission shall make preliminary and final results of the demonstration project available to state and local public agencies for possible application throughout the state. (c) The county transportation commission shall prepare and transmit to the Legislature, no later than one year after the completion of the project, a report of its findings, conclusions, and recommendations. (d) The Department of Transportation shall reimburse the county transportation commission, from funds appropriated for projects pursuant to this article, for the costs incurred by the commission under this article. (e) No money from the General Fund shall be used for the operation of a smart freeway corridor telecommunications project established as a demonstration project pursuant to this article after the demonstration project is completed. SEC. 201. Section 132410 of the Public Utilities Code is amended to read: 132410. (a) The authority has all of the powers necessary for planning, acquiring, leasing, developing, jointly developing, owning, controlling, using, jointly using, disposing of, designing, procuring, and building the project, including, but not limited to, all of the following: (1) Acceptance of grants, fees, and allocations from the state, local agencies, and private entities. (2) Acquiring, through purchase or through eminent domain proceedings, any property necessary for, incidental to, or convenient for, the exercise of the powers of the authority. (3) Incurring indebtedness, secured by pledges of revenue available for project completion. (4) Contracting with public and private entities for the planning, design, and construction of the project. These contracts may be assigned separately or may be combined to include any or all tasks necessary for completion of the project. (5) Entering into cooperative or joint development agreements with local governments or private entities. These agreements may be entered into for the purpose of sharing costs, selling or leasing land, air, or development rights, providing for the transferring of passengers, making pooling arrangements, or for any other purpose that is necessary for, incidental to, or convenient for the full exercise of the powers granted the authority. For purposes of this paragraph, "joint development" includes, but is not limited to, an agreement with any person, firm, corporation, association, or organization for the operation of facilities or development of projects adjacent to, or physically or functionally related to, the project. (6) Relocation of utilities, as necessary for completion of the project. (b) The duties of the authority include, but are not limited to, all of the following: (1) Conducting the financial studies and the planning and engineering necessary for completion of the project. (2) (A) Adoption of an administrative code, not later than 60 days after establishment of the authority, for administration of the authority in accordance with any applicable laws, including, but not limited to, the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), contracting and procurement laws, laws relating to contracting goals for minority and women business participation, and the Political Reform Act of 1974 (Title 9 (commencing with Section 81000) of the Government Code). (B) (i) The administrative code adopted under subparagraph (A) shall include a code of conduct for employees and board members that is consistent with Sections 84308 and 87103 of the Government Code and prohibits board members and staff from accepting gifts valued at ten dollars ($10) or more from contractors, potential contractors, or their subcontractors. (ii) The code shall require the disclosure, on the record, of the proceedings by the officer of the agency who receives a contribution within the preceding 24 months in an amount of more than two hundred fifty dollars ($250) from a party or participant to a proceeding, and the disclosure by the party or participant. (iii) The code shall provide that no officer of the agency shall make, participate in making, or in any way attempt to use his or her official position to influence the decision in a proceeding, as described in Section 84308 of the Government Code, if the officer has willfully or knowingly received a contribution in the amount of more than two hundred fifty dollars ($250) within the preceding 24 months from a party or his or her agent, or from any participant or his or her agent if the participant has a financial interest in the decision. (iv) Any officer deemed ineligible to participate in a proceeding due to the provisions of this code of conduct may be replaced for the purposes of that proceeding by an appointee chosen by the appropriate appointing authority. (v) Under the code of conduct, board members shall be deemed to have a financial interest in a decision within the meaning of Section 87100 of the Government Code if the decision involves the donor of, or intermediary or agent for a donor of, a gift or gifts aggregating ten dollars ($10) or more in value within the 12 months prior to the time the decision was made. (c) The authority shall make reasonable progress, as determined by the commission, in the design and construction of the project within the timetable imposed under the 1998 State Transportation Improvement Program. SEC. 203. Section 7273 of the Revenue and Taxation Code is amended to read: 7273. In addition to the amounts otherwise provided for preparatory costs, the board shall charge an amount for its services in administering the transactions and use tax determined by the board, with the concurrence of the Department of Finance, as follows: (a) Beginning with the 1993-94 fiscal year, the amount charged shall be based on the total special taxing jurisdiction costs reflected in the annual Budget Act. This amount comprises the categories of direct, shared, and central agency costs incurred by the board and shall include the following: (1) The amount charged to each entity shall be based on the recommendations incorporated in the March 1992, report by the Auditor General entitled "The Board of Equalization Needs To Adjust Its Model For Setting Reimbursement Rates For Special Tax Jurisdictions." (2) The amount charged may be adjusted in the current fiscal year to reflect the difference between the board's budgeted costs and any significant revised estimate of costs. Any adjustment shall be subject to budgetary controls included in the Budget Act. Prior to any adjustment, the Department of Finance shall notify the Chairperson of the Joint Legislative Budget Committee not later than 30 days prior to the effective date of the adjustment. (3) For the 1995-96 fiscal year and each fiscal year thereafter, the amount charged shall be adjusted to reflect the difference between the board's recovered costs and the actual costs incurred by the board during the fiscal year two years prior. (b) The board shall, by June 1 of each year, notify districts of the amount that it anticipates will be assessed for the next fiscal year. The districts shall be notified of the actual amounts that will be assessed within 30 days after enactment of the Budget Act for that fiscal year. (c) The amount charged a transactions and use tax district that becomes operative during the fiscal year shall be estimated for that fiscal year based on that district's proportionate share of direct, indirect, and shared costs. (d) The amounts determined by subdivision (a) shall be deducted in equal amounts from the quarterly allocation of taxes collected by the board for a given district. (e) For the 1998-99 fiscal year and each fiscal year thereafter, the amount charged to a district by the board shall not exceed the lesser of the amount as a percentage of revenue the board would have charged for the 1998-99 fiscal year, or the first full year of a new district's operations under this section as it read prior to the amendments made by the act adding this subdivision, or the following percentages: (1) For districts imposing a transactions and use tax of one-half of 1 percent or greater, the amount charged by the board shall not exceed 1.5 percent, for the 1998-99 fiscal year and each fiscal year thereafter. (2) Beginning with the 1998-99 fiscal year and in each fiscal year thereafter, the amount charged to a district imposing a transactions and use tax ranging from one-quarter of 1 percent up to but less than one-half of 1 percent shall not exceed 3 percent. (3) Beginning with the 1998-99 fiscal year and in each fiscal year thereafter, the amount charged to a district imposing a transactions and use tax below one-quarter of 1 percent shall not exceed 5 percent. SEC. 205. Section 100 of the Streets and Highways Code is amended to read: 100. Using existing resources, the department shall monitor the cumulative impact of fragmented gaps in the state highway system to identify safety and long-term maintenance issues. SEC. 206. Section 1965 of the Streets and Highways Code is repealed. SEC. 207. Section 30796.9 of the Streets and Highways Code is amended to read: 30796.9. (a) The San Diego Association of Governments shall deposit thirty-three million dollars ($33,000,000) in the Toll Bridge Seismic Retrofit Account in the State Transportation Fund. (b) Maintenance of the San Diego-Coronado Bridge shall be funded by the state pursuant to Section 188.4. (c) Of the thirty-three million dollars ($33,000,000) in local funds to be paid by the San Diego Association of Governments as the local toll authority for the San Diego-Coronado Bridge, not less than ten million dollars ($10,000,000) shall be paid from local toll revenue reserve funds. The balance of funds shall be paid from toll bridge revenue bonds, as specified in Section 30796.10, supported by toll revenue. This revenue shall consist of the net toll revenue gained from shifting the cost of bridge maintenance to be funded by the state pursuant to Section 188.4 and by all or part of the remaining toll revenues. SEC. 208. Section 30895 of the Streets and Highways Code is repealed. SEC. 209. Section 30950.3 of the Streets and Highways Code is amended to read: 30950.3. (a) The authority, with the concurrence of the department, shall prepare and adopt a long-range plan for the completion of all projects identified in subdivisions (a), (c), and (d) of Section 30913 and in subdivision (a) of Section 30914. (b) The authority shall not allocate any toll revenues for any capital improvement projects, except those projects included in the long-range plan required under subdivision (a) and those projects funded pursuant to Article 3.5 (commencing with Section 30880) of Chapter 3. (c) The authority shall give first priority to projects and expenditures that are deemed necessary by the department to preserve and protect the bridge structures. SEC. 210. Section 30961 of the Streets and Highways Code is amended to read: 30961. Toll bridge revenue bonds shall be issued pursuant to a resolution adopted at any time, and from time to time, by the authority by a majority vote of all members of the authority. (a) The authority may from time to time issue bonds in accordance with the Revenue Bond Law of 1941 (Chapter 6 (commencing with Section 54300) of Part 1 of Division 2 of Title 5 of the Government Code), for the purpose of constructing, improving, or equipping any of the bridges or for any of the purposes authorized by this chapter, Chapter 4 (commencing with Section 30910), or Chapter 4.5 (commencing with Section 31000). Operation of the bridges or any grouping or units thereof shall constitute an "enterprise" within the meaning of Section 54309 of the Government Code, and the authority shall constitute a "local agency" within the meaning of Section 54307 of the Government Code. Article 3 (commencing with Section 54380) of Chapter 6 of Part 1 of Division 2 of Title 5 of the Government Code shall not apply to the issuance and sale of bonds pursuant to this chapter. Instead, the authority shall authorize the issuance of bonds by resolution, and that resolution shall specify all of the following: (1) The purposes for which the bonds are to be issued. (2) The maximum principal amount of the bonds. (3) The maximum term for the bonds or commercial paper. (4) The maximum rate of interest to be payable upon the bonds or commercial paper. That interest rate shall not exceed the maximum rate specified in Section 53531 of the Government Code. The rate may be either fixed or variable and shall be payable at the times and in the manner specified in the resolution. (b) The authority shall keep full, complete, and separate accounts of each toll bridge and shall annually prepare balance sheets and income and profit and loss statements showing the financial condition of each toll bridge. SEC. 211. Section 1088.7 of the Unemployment Insurance Code is repealed. SEC. 212. Section 1274.05 of the Unemployment Insurance Code is repealed. SEC. 213. Section 5007 of the Unemployment Insurance Code is amended to read: 5007. A registrant certified by the SAU pursuant to Section 11300 of the Welfare and Institutions Code shall accept assignment to employment or WIN training as determined appropriate by the department or face deregistration action. The following standards shall be met before the department requires any such individual to accept a work or training assignment: (a) All assignments for those in WIN training shall be within the scope of an individual's employability plan. This plan may be modified to reflect changed employment conditions. (b) To the extent permitted by federal law, an Aid to Families with Dependent Children--Family Group recipient who is required to register for the WIN program because he or she is enrolled in school for at least 12 units of credit shall be deemed unsuitable for participation in the WIN program components such as community work experience and job training, as long as the recipient's youngest child is under six years old and the program confers a post secondary degree, vocational certificate, or high school diploma. (c) The job or training assignment shall be related to the capability of the individual to perform the task on a regular basis. Any claim of adverse effect on physical or mental health shall be based on an adequate medical testimony from a physician or licensed or certified psychologist indicating that participation would impair the individual's physical or mental health. (d) The total daily commuting time to and from home to the work or training site to which the individual is assigned shall not normally exceed two hours, not including the transporting of a child to and from a child care facility, unless a longer commuting distance and time is generally accepted in the community, in which case the round trip commuting time shall not exceed the generally accepted community standards. (e) When child care is required, it shall meet the standards specified in applicable federal law and shall be available during the hours the individual is engaged in a WIN component or manpower activity, plus any additional necessary commuting time. (f) The work or training site to which the individual is assigned shall not be in violation of applicable federal, state, and local health and safety standards. (g) Assignments shall not be made which are discriminatory in terms of age, sex, race, creed, color, or national origin. (h) The individual shall not be referred to work or training unless supportive and manpower services necessary for participation are available. The cessation or withdrawal of such necessary services while the individual is in a WIN component shall constitute good cause for refusal to participate. (i) The quality of the training shall meet local employers' requirements so that the individual will be in a competitive position within the local labor market. The training shall also be likely to lead to employment which will meet the appropriate work criteria. SEC. 214. Section 5202 of the Unemployment Insurance Code is repealed. SEC. 215. Section 9614 of the Unemployment Insurance Code is repealed. SEC. 216. Section 9616 of the Unemployment Insurance Code is amended to read: 9616. (a) The department, in coordination with the United States Department of Defense and the various branches of the military of the United States, shall determine which military occupational specialties have civilian counterpart jobs that require licensure by state or local agencies. (b) The department shall further determine, to the degree possible, if any procedural, financial, technological, educational, or bureaucratic barriers exist that impede military personnel reentering the civilian workforce from acquiring these licenses. (c) The department shall implement this section only to the extent federal funds are available for the costs of implementation. SEC. 217. Section 9616.1 of the Unemployment Insurance Code is amended to read: 9616.1. (a) The department shall convene groups that represent local department field offices, county welfare departments, service delivery areas, and community colleges for the purpose of developing a local plan on how these entities will regularly coordinate employer outreach activities and the solicitation of entry-level and other job listings, in order to reduce duplication of effort and to enhance the overall job development activities in each county. Each local plan shall be signed by the local entities convened pursuant to this subdivision and submitted to the department. (b) The entities involved in formulating each local plan and the department shall review each plan on at least an annual basis. SEC. 218. Section 9616.5 of the Unemployment Insurance Code is repealed. SEC. 219. Section 10522 of the Unemployment Insurance Code is repealed. SEC. 220. Section 10532 of the Unemployment Insurance Code is amended to read: 10532. (a) The California Occupational Information Coordinating Committee shall develop and annually revise a plan for the use of available resources to design and implement a statewide comprehensive labor market and occupational supply and demand information system as specified in Section 1535 of Title 29 of the United States Code. The plan shall be submitted to the California Workforce Investment Board no later than May 1 of each year. The plan and the comments by the board shall be submitted to the Governor and the Legislature no later than June 30 of each year. (b) The plan shall, at the minimum, include the following: (1) The proposed design of a labor market and occupational supply and demand information system for this state, meeting the requirements of Section 1535 of Title 29 of the United States Code. (2) Proposed activities in implementing the labor market and occupational supply and demand information system for the fiscal year. (3) The amount and proposed use of each funding source available for the labor market and occupational supply and demand information system. (c) The California Occupational Information Coordinating Committee shall seek and obtain funds or in-kind contributions to the maximum extent possible from the National Occupational Information Coordinating Committee and other federal, state, and private sources, and may accept and use any such funds or in-kind contributions for the purposes of this section. (d) The California Occupational Information Coordinating Committee shall act as an advisory body to the Employment Development Department in the department's operation of the State-Local Cooperative Labor Market Information Program. SEC. 221. Section 15037 of the Unemployment Insurance Code is amended to read: 15037. The California Workforce Investment Board shall: (a) Review and comment on the state workforce development plan developed pursuant to Section 11011. (b) Develop and recommend to the Governor a coordination and special services plan, which includes a dislocated workers assistance plan, in accordance with Chapter 4.5 (commencing with Section 10510) of Part 1 of Division 3. (c) Recommend to the Governor local service delivery areas. To the extent permitted by federal law, designation of service delivery areas shall reflect the intent of the Legislature to integrate and coordinate employment and training services, public assistance programs, and other educational and training efforts as may exist which are designed to assist individuals in preparing for participation in the labor force. (d) To the extent permitted by federal law, establish policies which shall be followed by the department in performing all of the following functions: (1) Approval of local service delivery area plans. (2) Establishment of standards, criteria, and reporting requirements established by the department pursuant to this division with respect to local service delivery area plans. (3) Allocation of funds for local service delivery area plans, including funds for plans submitted under Chapter 7.5 (commencing with Section 15075). (e) Plan, review and approve the allocation, recapture, and reallocation of federal funds received by the state pursuant to the federal Job Training Partnership Act. Funds received by the state in accordance with Sections 202(c)(1)(C) and 262 (c)(1)(C) of that act shall be allocated to the Superintendent of Public Instruction as necessary to meet the need determined by the superintendent pursuant to Section 33117.5 of the Education Code. The board shall be deemed to have approved the disbursement of funds when the Governor approves a decision of the board specifying a budget for an authorized program or activity and designating the department or agency responsible for the expenditure of the budgeted funds. An agreement shall be entered into between the Employment Development Department and the State Department of Education and shall provide that Job Training Partnership Act funds provided for the purposes of Section 33117.5 of the Education Code shall be utilized for payment to local educational agencies. (f) Review and approve the annual labor market and occupational supply and demand information plan developed pursuant to Section 10532. (g) Consider and advise the director on all matters connected with the administration of this code as submitted to it by the director, and may upon its own initiative recommend changes in administration as it deems necessary. (h) Review and comment to the Governor and the Legislature on the annual report prepared in accordance with Section 15064. (i) Serve as the body responsible for making recommendations to the Governor when the director proposes to withdraw funding pursuant to Section 15028. SEC. 222. Section 15076.5 of the Unemployment Insurance Code is amended to read: 15076.5. The California Workforce Investment Board shall do all of the following: (a) Be the lead state agency to establish policies for: (1) Alleviating adverse conditions that might cause plant closures and, where closures are unavoidable, assisting local efforts to secure alternative employment and retraining opportunities for displaced workers. (2) Marshaling available state and federal resources to aid workers and communities affected by major plant closures and to foster long-term economic vitality, industrial growth, and job opportunities. (3) Integrating appropriate activities of the Trade and Commerce Agency, the Employment Development Department, the Employment Training Panel, the Department of Industrial Relations, the State Department of Education, the Chancellor's Office of the California Community Colleges, and the Governor's Office of Planning and Research with the State Dislocated Worker Unit. (4) Collection of data and preparation of economic analyses and reporting, intended to provide better and more detailed assessments of future trends within the industrial, commercial, and agricultural sectors of the economy. (b) Review and comment on the plans for displaced worker assistance programs submitted pursuant to Section 15076. (c) Recommend to the Governor necessary components of state plans under the jurisdiction of other state offices, departments, or agencies that administer programs appropriate for coordination with dislocated worker assistance programs authorized by this chapter. (d) Review and make recommendations to the Governor and the Legislature regarding changes needed in current federal and state statutes and programs in order to minimize adverse consequences of plant closures and promote rapid reemployment of workers and revitalization of communities. SEC. 223. Section 17002 of the Unemployment Insurance Code is amended to read: 17002. In carrying out the provisions of this division, the department shall conduct activities including, but not limited to, the following: (a) Establish a council of corporate executives consisting of 13 members drawn from the business community including, but not limited to, retired or former chief executive officers of major California corporations. Seven members shall be appointed by the Governor, three shall be appointed by the Senate Committee on Rules, and three shall be appointed by the Speaker of the Assembly. Appointments shall be made no later than January 31, 1998. This council shall provide ongoing advice and assistance to the department in recruiting private employers to hire recipients of aid. (b) In consultation with the council described in subdivision (a), establish a clearinghouse for information on the Internet or other forms of toll-free communication for private sector employers to obtain information about assistance and resources for hiring CalWORKs recipients and to register their pledges to assist the state in finding the jobs necessary to meet the local welfare-to-work goals throughout the state. (c) In consultation with the council described in subdivision (a), provide a forum for leaders in the faith-based communities, as well as other civic leaders, to assist the state in promoting welfare-to-work goals as part of the civic duty of their constituents. SEC. 224. Section 1810.7 of the Vehicle Code is amended to read: 1810.7. (a) Except as provided in Sections 1806.5, 1808.2, 1808.4, 1808.5, 1808.7, and 1808.21, the department may, by special permit, authorize any person to access the department's electronic data base, as provided for in this section, for the purpose of obtaining vehicle registration information for commercial use. (b) The department may limit the number of permits issued under this section, and may restrict, or establish priority for, access to its files as the department deems necessary to avoid disruption of its normal operations, or as the department deems is in the best interest of the public. (c) The department may establish minimum volume levels, audit and security standards, and technological requirements, or any terms and conditions it deems necessary for the permits. (d) As a condition of issuing a permit pursuant to this section, the department shall require each direct-access permittee to file a performance bond or other financial security acceptable to the department, in an amount the department deems appropriate. (e) The department shall charge fees for direct-access service permits, and shall charge fees pursuant to Section 1811 for any information copied from the files. (f) The department shall ensure that information provided pursuant to this section includes only the public portions of records. (g) The director shall, on and after January 1, 1992, report every three years to the Legislature on the implementation of this section. The report shall include the number and location of direct-access permittees, the volume and nature of direct-access inquiries, procedures the department has taken to ensure the security of its files, and the costs and revenues associated with the project. (h) The department shall establish procedures to ensure confidentiality of any records of residence addresses and mailing addresses as required by Sections 1808.21, 1808.22, 1808.45, 1808.46, and 1810.2. SEC. 226. Section 2936 of the Vehicle Code is repealed. SEC. 227. Section 5023 of the Vehicle Code is amended to read: 5023. (a) Any person described in Section 5101 may also apply for a set of commemorative Olympic reflectorized license plates and the department shall issue those special license plates in lieu of regular license plates. The commemorative Olympic reflectorized license plates shall be of a distinctive design and shall be available in a special series of letters or numbers, or both, as determined by the department after consultation with the United States Olympic Committee. (b) In addition to the regular fees for an original registration or renewal of registration, the following special fees shall be paid: (1) Fifty dollars ($50), inclusive of any administrative fees, for the initial issuance of the special plates. (2) Fifteen dollars ($15) for the transfer of the special plates to another vehicle. (3) Thirty-five dollars ($35) for duplicate, replacement commemorative Olympic reflectorized license plates of the same number in the series. (4) Thirty dollars ($30) for the annual renewal of the special plates. (c) When payment of renewal fees is not required as specified in Section 4000, or when the person determines to retain the plates upon sale, trade, or other release of the vehicle upon which the special plates have been displayed, the person shall notify the department and the person may retain the special plates. (d) All revenue derived from the additional special fees provided in this section, less costs incurred by the department pursuant to this section, shall be deposited in the California Olympic Training Account in the General Fund established pursuant to Section 7592 of the Government Code. SEC. 228. Section 14602.1 of the Vehicle Code is amended to read: 14602.1. Every state and local law enforcement agency, including, but not limited to, city police departments and county sheriffs' offices, shall report to the Department of the California Highway Patrol, on a form approved by that department, all vehicle pursuit data, which shall include, but not be limited to, all of the following: (a) Whether any person involved in a pursuit or a subsequent arrest was injured, specifying the nature of that injury. (b) The violations which caused the pursuit to be initiated. (c) The identity of the officers involved in the pursuit. (d) The means or methods used to stop the suspect being pursued. (e) The charges filed with the court by the district attorney. SEC. 229. Section 35581 of the Vehicle Code is amended to read: 35581. (a) The Department of Transportation, in cooperation with the Department of the California Highway Patrol, shall develop a plan for implementing or identifying new or existing scale facilities at major intermodal terminals which may serve as intermodal weighing facilities for weighing commercial vehicles which transport intermodal freight, prior to their entry onto any highway which is not specifically exempted from weight limitations by a local authority. The plan shall include consideration of options for financing the construction of required intermodal weighing facilities. The plan shall be submitted to the Legislature not later than August 1, 1989. (b) The Department of Transportation may enter into agreements with local authorities or private entities to provide for exemption from weight restrictions for short distance movement to an intermodal weighing facility. SEC. 230. Section 232 of the Water Code is repealed. SEC. 230.1. Section 8610 of the Water Code is amended to read: 8610. The board shall offer to lease to the Department of Fish and Game, or to an appropriate public resource protection or public conservation agency or organization approved by the Department of Fish and Game and the board, any lands it acquires as replacement habitat as mitigation for adverse environmental impacts of its projects. The lease agreement shall ensure that these lands are managed to provide the mitigation for which they were acquired and shall include, but not be limited to, provisions for funding management of those lands. Funds for management of those lands may include, but are not limited to, funds appropriated by the Legislature to the Department of Water Resources, the Reclamation Board, or the Department of Fish and Game, and funds available from local entities. The lease agreement shall reserve the authority of the board to carry out necessary flood control activities and mitigate adverse environmental impacts. SEC. 230.2. Section 10010 of the Water Code is repealed. SEC. 230.3. Section 10756 of the Water Code is repealed. SEC. 230.4. Section 11156 of the Water Code is repealed. SEC. 230.5. Section 11912 of the Water Code is amended to read: 11912. The department, in fixing and establishing prices, rates, and charges for water and power, shall include as a reimbursable cost of any state water project an amount sufficient to repay all costs incurred by the department, directly or by contract with other agencies, for the preservation of fish and wildlife and determined to be allocable to the costs of the project works constructed for the development of such water and power, or either. Costs incurred for the enhancement of fish and wildlife or for the development of public recreation shall not be included in the prices, rates, and charges for water and power, and shall be nonreimbursable costs. SEC. 230.6. Section 12308 of the Water Code is repealed. SEC. 230.7. Section 12830 of the Water Code is amended to read: 12830. The department may refuse to make any order for the reallocation of any of the funds if the provisions of this chapter are violated. SEC. 230.8. Section 12875 of the Water Code is amended to read: 12875. The department may refuse to make any order for the reallocation of any of the funds if the provisions of this chapter are violated. SEC. 230.9. Section 12879.5 of the Water Code is amended to read: 12879.5. (a) The sum of twenty million dollars ($20,000,000) of the money in the fund shall be deposited in the Local Water Projects Assistance Account and shall be available for loans to local agencies to aid in the construction of eligible projects. (b) No eligible project may receive more than five million dollars ($5,000,000) in loans from the department. (c) In the administration of this section, the department and the California Water Commission shall give preference to projects involving the development of new basic water supplies which may include the enlargement of existing dams and reservoirs, and for projects that will remedy existing water supply problems. The department and the California Water Commission shall set priority for loans pursuant to this section on the basis of the cost-effectiveness of the proposed project, with the most cost-effective projects receiving highest priority. (d) If the water supply function of a dam and reservoir facility is operationally limited or eliminated for dam safety purposes, pursuant to Part 1 (commencing with Section 6000) of Division 3, the department and the California Water Commission may give consideration to projects which would rehabilitate the dam and reservoir for water supply purposes. The rehabilitation of facilities may include comparable replacement facilities. (e) The department shall not make loans pursuant to this section for otherwise eligible projects whose benefits are more than 50 percent derived from hydroelectric generation, as determined by the department. (f) The department may make loans to local agencies, at the interest rates authorized pursuant to this chapter and pursuant to any terms and conditions as may be determined necessary by the department, for the purposes of financing feasibility studies of projects potentially eligible for funding pursuant to this section. No single potential project shall be eligible to receive more than five hundred thousand dollars ($500,000), and not more than 10 percent of the total amount of bonds authorized to be expended for purposes of this section may be expended for those purposes. SEC. 231. Section 12890.4 of the Water Code is amended to read: 12890.4. The department shall keep full and complete records and accounts concerning all of its transactions under this chapter. SEC. 231.5. Section 12928.5 of the Water Code is repealed. SEC. 232. Section 12929.47 of the Water Code is repealed. SEC. 232.1. Section 12939 of the Water Code is amended to read: 12939. Upon the written request of the board, supported by a statement of the expenditures made and to be made for the State Water Resources Development System, the committee shall determine whether or not it is necessary or desirable to issue any bonds authorized under this chapter in order to make those expenditures and, if so, the amount of bonds then to be issued and sold. Successive issues of bonds may be authorized and sold to make those expenditures progressively and it shall not be necessary that all of the bonds herein authorized to be issued shall be sold at any one time. SEC. 232.2. Section 13467 of the Water Code is repealed. SEC. 232.3. Section 14014 of the Water Code is repealed. SEC. 232.4. Section 14919 of the Water Code is repealed. SEC. 233. Section 366.28 of the Welfare and Institutions Code is repealed. SEC. 234. Section 4640.6 of the Welfare and Institutions Code is amended to read: 4640.6. (a) In approving regional center contracts, the department shall ensure that regional center staffing patterns demonstrate that direct service coordination are the highest priority. (b) Contracts between the department and regional centers shall require that regional centers implement an emergency response system that ensures that a regional center staff person will respond to a consumer, or individual acting on behalf of a consumer, within two hours of the time an emergency call is placed. This emergency response system shall be operational 24 hours per day, 365 days per year. (c) Contracts between the department and regional centers shall require regional centers to have service coordinator-to-consumer ratios, as follows: (1) An average service coordinator-to-consumer ratio of one to 62 for all consumers who have not moved from the developmental centers to the community since April 14, 1993. In no case shall a service coordinator for these consumers have an assigned caseload in excess of 79 consumers for more than 60 days. (2) An average service coordinator-to-consumer ratio of one to 45 for all consumers who have moved from a developmental center to the community since April 14, 1993. In no case shall a service coordinator for these consumers have an assigned caseload in excess of 59 consumers for more than 60 days. (d) For purposes of this section, "service coordinator" means a regional center employee whose primary responsibility includes preparing, implementing, and monitoring consumers' individual program plans, securing and coordinating consumer services and supports, and providing placement and monitoring activities. (e) In order to ensure that caseload ratios are maintained pursuant to this section, each regional center shall provide service coordinator caseload data to the department in September and March of each fiscal year, commencing in the 1999-2000 fiscal year. The data shall be submitted in a format prescribed by the department. Within 30 days of receipt of data submitted pursuant to this subdivision, the department shall make a summary of the data available to the public upon request. The department shall verify the accuracy of the data when conducting regional center fiscal audits. Data submitted by regional centers pursuant to this subdivision shall: (1) Only include data on service coordinator positions as defined in subdivision (d). Regional centers shall identify the number of positions that perform service coordinator duties on less than a full-time basis. Staffing ratios reported pursuant to this subdivision shall reflect the appropriate proportionality of these staff to consumers served. (2) Be reported separately for service coordinators whose caseload primarily includes any of the following: (A) Consumers who are three years of age and older and who have not moved from the developmental center to the community since April 14, 1993. (B) Consumers who have moved from a developmental center to the community since April 14, 1993. (C) Consumers who are younger than three years of age. (3) Not include positions that are vacant for more than 60 days. (f) The department shall provide technical assistance and require a plan of correction for any regional center that, for two consecutive reporting periods, fails to maintain service coordinator caseload ratios required by this section or otherwise demonstrates an inability to maintain appropriate staffing patterns pursuant to this section. Plans of correction shall be developed following input from the local area board, local organizations representing consumers, family members, regional center employees, including recognized labor organizations, and service providers, and other interested parties. (g) Contracts between the department and regional center shall require the regional center to have, or contract for, all of the following areas: (1) Criminal justice expertise to assist the regional center in providing services and support to consumers involved in the criminal justice system as a victim, defendant, inmate, or parolee. (2) Special education expertise to assist the regional center in providing advocacy and support to families seeking appropriate educational services from a school district. (3) Family support expertise to assist the regional center in maximizing the effectiveness of support and services provided to families. (4) Housing expertise to assist the regional center in accessing affordable housing for consumers in independent or supportive living arrangements. (5) Community integration expertise to assist consumers and families in accessing integrated services and supports and improved opportunities to participate in community life. (6) Quality assurance expertise, to assist the regional center to provide the necessary coordination and cooperation with the area board in conducting quality-of-life assessments and coordinating the regional center quality assurance efforts. (7) Each regional center shall employ at least one consumer advocate who is a person with developmental disabilities. (8) Other staffing arrangements related to the delivery of services that the department determines are necessary to ensure maximum cost-effectiveness and to ensure that the service needs of consumers and families are met. (h) Any regional center proposing a staffing arrangement that substantially deviates from the requirements of this section shall request a waiver from the department. Prior to granting a waiver, the department shall require a detailed staffing proposal, including, but not limited to, how the proposed staffing arrangement will benefit consumers and families served, and shall demonstrate clear and convincing support for the proposed staffing arrangement from constituencies served and impacted, that include, but are not limited to, consumers, families, providers, advocates, and recognized labor organizations. In addition, the regional center shall submit to the department any written opposition to the proposal from organizations or individuals, including, but not limited to, consumers, families, providers, and advocates, including recognized labor organizations. The department may grant waivers to regional centers that sufficiently demonstrate that the proposed staffing arrangement is in the best interest of consumers and families served, complies with the requirements of this chapter, and does not violate any contractual requirements. A waiver shall be approved by the department for up to 12 months, at which time a regional center may submit a new request pursuant to this subdivision. (i) The requirements of subdivisions (c), (f), and (h) shall not apply when a regional center is required to develop an expenditure plan pursuant to Section 4791, and when the expenditure plan addresses the specific impact of the budget reduction on staffing requirements and the expenditure plan is approved by the department. SEC. 235. Section 4669.75 of the Welfare and Institutions Code is amended to read: 4669.75. (a) Any proposal approved by the department pursuant to this article may be implemented immediately upon approval. Prior to submitting a proposal to the department, the regional center shall conduct a public hearing to receive comments on the proposal. Notice of the public hearing shall be given at least 10 business days in advance of the hearing. The public hearing shall be conducted in accordance with this section. (b) Notice shall include a summary of the proposal, analysis of the effect of the proposal upon the regional center budget and the state budget, the impact on regional center services, and the impact on consumers served under the proposal, and a list of the statutes and regulations that will be waived under the proposal. No proposal approved under this article shall authorize a regional center to implement proposals that have not met all the requirements of this article. The department may not delegate its authority to review and approve proposals in accordance with this article. (c) Each written comment submitted prior to the close of the final public hearing, and a summary of verbal testimony received, shall be considered by the regional center, and a summary of the responses to all comments shall be submitted as part of the proposal to the department. These comments and responses shall be made available, along with the proposal, for public review. (d) A service delivery alternative shall be required to be implemented within the existing regional center funding allocation and shall be cost-effective to the state. No additional allocation shall be made to permit a regional center to implement a service delivery alternative. No proposal approved under this article shall authorize or give authority to a regional center to go forward with any other specific action or proposal that has not met all of the requirements of this article. The department may not delegate its authority to review and approve proposals in accordance with this article to a regional center or any other entity. (e) Proposals approved by the department shall meet freedom of choice requirements pursuant to the assurances required in the home- and community-based services waiver under Section 1396n of Title 42 of the United States Code. SEC. 236. Section 5586 of the Welfare and Institutions Code is repealed. SEC. 237. Section 5673 of the Welfare and Institutions Code is amended to read: 5673. (a) A five-year pilot program is hereby authorized in Napa County and Riverside County to establish a 15-bed locked facility in each county, for the provision of community care and treatment for mentally disordered persons who are placed in a state hospital or another health facility because no community placements are available to meet the needs of these patients. It is the intent of the Legislature to carefully evaluate this specific approach to determine its potential for replication in other limited jurisdictions. Participation in this pilot program by the two counties shall be on a voluntary basis. The pilot program shall be implemented notwithstanding the following licensure requirements enforced by the State Department of Social Services: (1) Subdivision (a) of Section 1502 of the Health and Safety Code, which defines a community care facility as providing nonmedical care. (2) Subdivision (a) of Section 1505 of the Health and Safety Code, which exempts any health facility, as defined by Section 1250 of the Health and Safety Code, from licensure under the California Community Care Facilities Act (Chapter 3 (commencing with Section 1500) of Division 2 of the Health and Safety Code). (3) Section 1507 of the Health and Safety Code, which limits the provision of medical services in community care facilities to incidental medical services. (4) Paragraph (5) of subdivision (a) of Section 80001 of Title 22 of the California Code of Regulations, which states that an adult residential facility provides nonmedical care. (5) Paragraph (7) of subdivision (a) of Section 80072 of Title 22 of the California Code of Regulations, which relates to a client's right not to be locked in any room, building, or facility premises. However, for purposes of this section, a client shall not be locked in any room. (b) Clients provided care within these pilot facilities shall be conservatees as defined by Section 5350 who, prior to the establishment of this program, either received care at a state hospital or were placed in facilities for the mentally disordered. (c) Standards for services provided shall be developed by each county mental health director, in consultation with, and approved by, the State Department of Mental Health and monitored regularly by the department for compliance with these standards. These services shall be on a 24-hour basis in a therapeutic homelike environment. The services shall cover the full range of the social rehabilitation model concept, including, but not limited to, the following: (1) Counseling. (2) Day treatment. (3) Crisis intervention. (4) Vocational training. (5) Medication evaluation and management by a licensed physician and other licensed professional and paraprofessional staff who possess a valid license or certificate to perform this function. (d) Administration of medication and monitoring of medication shall occur notwithstanding statutory and regulatory licensure requirements for community care facilities to the contrary. Standards for use of medications shall be developed and monitored by the State Department of Mental Health. (e) The facilities shall be licensed and monitored by the State Department of Social Services and shall comply with all licensing requirements except those specifically exempted by this section. In addition, no less than 75 square feet of outdoor space per client shall be made available for client use. The State Department of Social Services shall conduct inspections of the facilities pursuant to Section 1533 of the Health and Safety Code and shall be given immediate access to the facilities. (f) In staffing the pilot program, each county board of supervisors shall give full consideration to each potential means of implementation, including, but not limited to, the clinical, programmatic, and economic benefits and advantages of each alternative. The pilot program shall meet all of the staffing criteria of subdivision (b) of Section 5670.5. The staff shall use and document the actions of a multidisciplinary professional consultation staff to meet the specific diagnostic and treatment needs of clients. The staff shall include, but need not be limited to, a licensed psychiatrist, a psychologist, a social worker, and a psychiatric technician. The staff may also include a licensed vocational nurse. One or more of the following licensed professionals shall be present at the facility at all times: (1) A psychiatrist or psychologist. (2) A registered psychiatric nurse. (3) A psychiatric technician. (4) A licensed vocational nurse. (g) Protocols and training shall be established for licensed vocational nurses employed by these facilities. (h) The State Department of Mental Health shall certify the program content in each county and monitor the program's functions on a regular basis and the State Department of Social Services shall regularly evaluate the facilities in accord with its statutory and regulatory licensure functions, pursuant to subdivisions (d) and (e). (i) The pilot program shall be deemed successful if it demonstrates both of the following: (1) That costs of the program are no greater than public expenditures for providing alternative services to the clients served by the program. (2) That the benefit to the clients, as described in subdivision (h), is improved by the program. (j) Commencement of the pilot program in each county pursuant to this section shall be contingent upon the county and the department identifying funds for this purpose, as described in a financial plan that is approved in advance by the Department of Finance. SEC. 238. Section 10603.3 of the Welfare and Institutions Code is repealed. SEC. 239. Section 10609.5 of the Welfare and Institutions Code is amended to read: 10609.5. (a) The department shall contract with an appropriate and qualified entity to conduct an evaluation of the adequacy of the current child welfare services budgeting methodology and make recommendations for revising the budgeting methodology, including appropriate caseload levels, supportive services, and preventative services, in order to accurately and adequately fund the system. This evaluation shall, at a minimum, consider the impact of the following factors on the budgeting methodology: (1) The current state and federal statutory and regulatory environment for child welfare services. (2) The state of the art advancements and best child welfare practice, such as family conferencing and wraparound services. (3) The impact of the child welfare services case management system on the workload of workers in the system. (4) The nature and degree of the problems experienced by families in need of child welfare services, and the service needs of abused and neglected children and their families. (5) The impact on workload of obtaining timely medical, mental health, educational, and developmental assessments of children in the child welfare system, and coordinating with other systems to meet the children's needs. (b) The department shall convene an advisory group that shall include representatives of the County Welfare Directors Association, the California State Association of Counties, child welfare services consumers, children's advocacy organizations, and child welfare social worker organizations. The advisory group shall do both of the following: (1) Provide oversight over the process of selecting an entity to conduct an evaluation under subdivision (a). (2) Provide oversight over, and technical assistance to, the entity selected to conduct the evaluation under subdivision (a). SEC. 240. Section 10740 of the Welfare and Institutions Code is amended to read: 10740. It is hereby declared that provision for health care services and medical assistance in this code is a matter of statewide concern. The State Department of Health Services is hereby designated as the single state agency with full power to supervise every phase of the administration of health care services and medical assistance for which grants-in-aid are received from the United States government or made by the state in order to secure full compliance with the applicable provisions of state and federal laws. SEC. 241. Section 10790 of the Welfare and Institutions Code is amended to read: 10790. (a) The director, in consultation with the County Welfare Directors Association and at least one advocate for welfare recipients, shall establish, within the Aid to Families with Dependent Children (AFDC) program (Chapter 2 (commencing with Section 11200) of Part 3), and the Food Stamp Program (Chapter 10 (commencing with Section 18900) of Part 6), the Consolidated Public Assistance Eligibility Determination Demonstration Project. (b) (1) The director shall, by formal order, waive the enforcement of those regulations and standards necessary to implement the project with federal approval, in order to implement the demonstration project. (2) The order establishing the waiver authorized by paragraph (1) shall meet all of the following requirements: (A) It shall provide alternative methods and procedures of eligibility administration. (B) It shall not conflict with the basic purposes or coverage provided by law. (C) The director shall determine, based on estimates, the impact of the proposed changes on AFDC and food stamp recipients. The order shall be implemented only if no more than 5 percent of the recipients are expected to experience a net benefit reduction. (D) Applications for, and restorations of, aid shall be processed in the shorter of the time periods required for the AFDC and Food Stamp programs, when differences exist between the two programs. (E) It shall not be general in scope and shall apply only to the project authorized by this section. (3) The order establishing the waiver authorized by paragraph (1) shall take effect only if the appropriate federal agencies have agreed to approve the demonstration project and to waive those federal requirements that are necessary for waiver under the project. (c) Applicants and recipients under this chapter shall be entitled to the same rights and fair hearings and appeals as those to which they would otherwise be entitled under the AFDC program (Chapter 2 (commencing with Section 11200) of Part 3) and the Food Stamp Program (Chapter 10 (commencing with Section 18900) of Part 6). (d) The director shall include in the request for any waivers necessary for the implementation of this demonstration project the declaration that if any of the specific elements, pursuant to Section 10791, are deemed unwaivable or are not granted, the other elements may be considered independently and waived as permitted under federal law. (e) The director may exclude from the request for waivers any specific element, pursuant to subparagraph (D) of paragraph (2) of subdivision (b) of this section or Section 10791, determined to be not cost-effective due to significant General Fund costs. SEC. 243. Section 11329 of the Welfare and Institutions Code is amended to read: 11329. (a) The department shall evaluate the program and shall collect data on program cost, caseload movement, and program outcomes, including data on all of the following: (1) The numbers of voluntary and mandatory participants in each program component. (2) The amount of time that each participant remains in each component and the types of services, including supportive services, each participant receives. (3) The number of recipients in each component that move to each of the other components. (4) The number of participants sanctioned as well as the amount and duration of the sanction, the reason for the sanction, and the amount of time the participant was in the program prior to the sanction. (5) The number of participants who go off aid, and to the extent possible, the reason they have gone off aid. (6) The number of applicants who reapplied for and received aid after having gone off aid during the time they were participating in the program. (7) The starting salary of employed participants. (8) Participants' job retention rates. (9) The appropriateness of the categorization of participants. (10) The appropriateness of assessments and employment plans. (11) The appropriateness of preemployment preparation assignments, including a periodic review of the appropriateness of these assignments. (12) The effectiveness of training components based upon the number of individuals placed in employment. (13) The timeliness of preemployment preparation assignment reviews. (14) The appropriateness of sanctions applied under this article. (b) The department may use standard statistical sampling methods to conduct the evaluation. The department shall maintain this data for the state and for each county. The department may contract with a qualified organization for the evaluation required by this section. The department shall submit a plan for implementing this evaluation to the Joint Legislative Budget Committee. To the extent possible, the data collection system for this evaluation shall be designed to collect data in the least expensive and least time-consuming manner possible. SEC. 244. Section 11450.3 of the Welfare and Institutions Code is amended to read: 11450.3. (a) The director may establish, within the department, the Emergency Housing Apartment Program Demonstration Project. (b) The director may, by formal order, waive the operation of specific provisions in paragraph (2) of subdivision (f) of Section 11450, as required for participation in the Emergency Housing Apartment Program Demonstration Project. The order establishing the waiver shall limit the operation of the demonstration project to San Francisco or Contra Costa County, or both, for no more than five years of operation, and shall not result in the reduction or elimination of any family's eligibility for assistance under paragraph (2) of subdivision (f) of Section 11450. The order establishing the waiver shall not take effect unless and until the following conditions have been met: (1) The United States Department of Health and Human Services has approved federal financial participation for the demonstration project. (2) A comprehensive plan, including an analysis of the expected costs and savings, has been published in a newspaper of general circulation in the county or counties conducting the demonstration project and filed with the policy and fiscal committees of each house of the Legislature. (c) The county or counties participating in the demonstration project authorized by this section shall submit an annual report to the department on the demonstration project. The county or counties shall additionally collect and report any data and findings as required by the department and shall cooperate with the department in evaluating the demonstration project. (d) It is the intent of the Legislature that funding for the demonstration project authorized by this section be contained in annual Budget Act appropriations. SEC. 245. Section 11461.1 of the Welfare and Institutions Code is amended to read: 11461.1. It is the intent of the Legislature to ensure quality care for children who are placed in foster family homes. Therefore, the State Department of Social Services is directed to work with counties, foster parent associations, representatives of the community colleges, representatives of foster youth organizations, legislative staff members, and other interested parties concerning training requirements, experience, and retention of foster parents and the capacity of foster homes. SEC. 246. Section 11487.5 of the Welfare and Institutions Code is amended to read: 11487.5. (a) Notwithstanding any other provision of law, including Sections 11487 and 15204.5, the department shall implement a program in any participating county whereby the county shall be reimbursed for overpayment recoveries under Section 11004 as follows: (1) Reimbursement shall be made to a participating county based on a plan of operations for a program of overpayment recoveries that is approved by the department. No operating plan shall be approved by the department unless the plan contains assurances that the participating county will maintain a centralized unit or designate a person or persons to perform the overpayment recovery activities. (2) Reimbursement shall be made for all allowable administrative costs incurred, as defined by the department, to make a recovery of overpayments under Section 11004, not to exceed the state's share of the overpayments recovered by the county. (b) For purposes of this section, "participating county" means any county in which the welfare director applies to the department for participation in the program prescribed by this section. (c) This section shall be implemented when both of the following have occurred: (1) The federal government has made funding available for the activities described in this section. (2) The Department of Finance has examined the annual projection of costs and savings for these activities certified by the director, and has determined that during each fiscal year in which the director proposes to implement these provisions the savings to the General Fund from increased overpayment recoveries equals or exceeds the additional costs to the state. SEC. 247. Section 14017.1 of the Welfare and Institutions Code is amended to read: 14017.1. The Joint Legislative Audit Committee shall conduct an audit of one or more county eligibility departments. SEC. 248. Section 14085.5 of the Welfare and Institutions Code is amended to read: 14085.5. (a) Each disproportionate share hospital contracting to provide services under this article or contracting with a county organized health system, and which has or would have met the state criteria developed pursuant to the federal medicaid requirements regarding disproportionate hospitals for the three most recent years prior to submitting final plans for an eligible project in accordance with subparagraph (C) of paragraph (1) of subdivision (b), may, in addition to the rate of payment provided for in the contract entered into under this article, receive supplemental reimbursement to the extent provided for in this section. (b) (1) (A) A hospital qualifying pursuant to subdivision (a) shall submit documentation regarding debt service on revenue bonds used for financing the construction, renovation, or replacement of hospital facilities, including buildings and fixed equipment. (B) Qualified hospitals may submit debt service instruments to the department and to the commission regarding debt issued for new capital projects. (C) Eligible projects shall include those new capital projects funded by new debt for which final plans have been submitted to the Office of the State Architect and the Office of Statewide Health Planning and Development after September 1, 1988, and prior to June 30, 1994, except that projects submitted between September 1, 1988, and June 30, 1989, shall be eligible only if the submitting hospital had all of the following additional characteristics during the 1989 calendar year: (i) No less than 400 general acute care licensed beds. (ii) An average Medi-Cal patient census of not less than 30 percent of the total patient days. (iii) No less than 50,000 emergency department visits. (iv) An existing basic emergency department, obstetrical services, and a neonatal intensive care unit. (D) The department shall confirm in writing hospital and project eligibility for partial financing under this section. (E) Department advisory letters, conditioned on hospital and project conformity to plans, may be requested by hospitals prior to final plan submission. (F) Capital projects receiving partial financing under this section shall finance the upgrading or construction of buildings and equipment to a level required by currently accepted medical practice standards, including projects designed to correct Joint Commission on Accreditation of Hospitals and Health Systems fire and life safety, seismic, or other related regulatory standards. (2) Projects may also expand service capacity as needed to maintain current or reasonably foreseeable necessary bed capacity to meet the needs of Medi-Cal beneficiaries after giving consideration to bed capacity needed for other patients, including unsponsored patients. (3) (A) Debt service shall only be paid for projects, or for that portion of projects, that are available and accessible to patients treated under this article or by successor programs. (B) Each project shall cost at least five million dollars ($5,000,000) or, if less than five million dollars ($5,000,000), the project shall be necessary for retention of federal and state licensing and certification and for meeting fire and life safety, seismic, or other related regulatory standards. (4) Supplemental reimbursement payments shall commence no later than 30 days after receipt of the certificate of occupancy by the hospital. (5) (A) The state shall pledge to, and agree with, the holders of any revenue bonds issued to finance projects qualifying under this section that until debt service on the revenue bonds is fully paid, or until the supplemental rate is no longer required as provided by this section, the state will not limit or alter the rights vested in the hospital to receive supplemental reimbursement pursuant to this section. (B) The state shall pledge, and the hospital shall, as a condition of encumbering supplemental reimbursement payments received pursuant to this section, pledge that supplemental reimbursement payments shall be used for the payment of debt service on the revenue bonds. The hospital shall include its pledge and the agreement with the state in any agreement with the holders of the revenue bonds. (c) The hospital's supplemental reimbursement for a project qualifying pursuant to subdivisions (a) and (b) shall be calculated as follows: (1) For any fiscal year for which the hospital is eligible to receive reimbursement, the hospital shall report to the department the amount of debt service on the revenue bonds issued to finance the project. (2) (A) The department shall use the medicaid inpatient utilization rate as determined pursuant to Section 4112 of the Omnibus Budget Reconciliation Act of 1987 (Public Law 100-203) to determine the ratio of the hospital's total paid Medi-Cal patient days to total patient days. (B) (i) Notwithstanding any other provision of law, in determining the hospital's medicaid inpatient utilization rate for the purposes of this section, the department shall include in both the numerator and denominator all Medi-Cal inpatient days of care provided by the hospital after December 31, 1994, to Medi-Cal beneficiaries who are enrolled in prepaid health plans contracting with the department. Where reliable data regarding those days are available from Medi-Cal prepaid health plans contracting with participating hospitals for services rendered prior to January 1, 1995, that data may be used by the department in the calculations. (ii) For purposes of this section, Medi-Cal prepaid health plan programs, and the days relating thereto, shall include, but not be limited to, the programs listed in paragraph (1) of subdivision (b) of Section 14105.985, Section 14089, and any prepaid programs implemented under Section 14087.3, including the two-plan model described in the report issued on March 31, 1993, by the department, entitled "The State Department of Health Services' Plan for Expanding Medi-Cal Managed Care: Protecting Vulnerable Populations." (3) (A) (i) The supplemental Medi-Cal reimbursement to the hospital for each fiscal year shall equal the amount determined annually in paragraph (1) multiplied by the percentage figure determined in paragraph (2). In no instance shall the percentage figure determined pursuant to the ratio derived under paragraph (2) be decreased by more than 10 percent of the initial ratio determined pursuant to paragraph (2) prior to the retirement of the debt. (ii) Hospitals whose Medi-Cal ratio falls below 90 percent of the initial level established at the point of final plan submission shall at least maintain the volume of Medi-Cal utilization which was recorded at the time of final plan submission unless forces beyond the hospital's control have decreased the absolute volume of care. (B) (i) In no instance shall the total amount of reimbursement received under this section combined with that received from all other sources dedicated exclusively to debt service exceed 100 percent of the debt service over the life of the loan. (ii) A hospital qualifying for and receiving supplemental Medi-Cal reimbursement shall continue to receive the reimbursement until the qualifying loan is paid off, or the hospital is terminated as a Medi-Cal selective contractor and the hospital does not contract with a county organized health system. (iii) It is the intent of the Legislature that the state and the qualifying hospital shall negotiate in good faith for rates sufficient to ensure continued hospital participation in the program and to ensure adequate access to services for Medi-Cal beneficiaries. (iv) The state shall not terminate a contract with a qualified provider for the purpose of terminating the capital supplement. (v) If negotiations fail to permit continuation of a contract of a hospital qualifying for the supplemental Medi-Cal reimbursement, the supplemental Medi-Cal reimbursement shall cease as of the date of discontinuance of the selective provider contract. (4) In order to ensure provision of qualified supplemental payments to disproportionate share hospitals contracting with county organized health systems, the department shall make the qualified supplemental payments directly to these hospitals. (5) Funding for these supplemental payments shall be separately appropriated as a line item in the Budget Act for each fiscal year for any project for which a request for payment is received after April 1 of each fiscal year. The department shall request a deficiency appropriation if funds for the payment are not appropriated in the Budget Act. (6) (A) Paragraphs (1) to (4), inclusive, shall be incorporated into an amendment to any contract entered into by a hospital pursuant to this article. (B) (i) Any contract amendment required by paragraph (A) shall include a payment methodology based on inpatient hospital services rendered to Medi-Cal patients, either on a per diem basis, a per-discharge basis, or any other federally permissible basis, and which is consistent with the hospital's Medi-Cal contract. (ii) The payment methodology specified in clause (i) shall ensure that the hospital, on an annual basis, receives the amount of supplemental reimbursement calculated pursuant to paragraph (3), excluding only the federal portion of costs which have been determined by the federal government not to be allowable under Title XIX of the federal Social Security Act (Subchapter 19 (commencing with Section 1396) of Chapter 7 of Title 42 of the United States Code). (iii) The payment methodology specified in clause (i) shall contain a retrospective adjustment mechanism to ensure that, regardless of the payment methodology, the department shall pay the hospital the full amount owed to the hospital for the year, as determined pursuant to this section. (7) In negotiating contracts with hospitals receiving payments under this section, the commission shall take appropriate steps to ensure the duplicate payments are not made to the hospital for the debt service costs relating to the eligible project. (d) All reimbursement received by a hospital pursuant to this section shall be placed in a special account, the funds in which shall be used exclusively for the payment of debt service on the revenue bonds issued to finance the project. (e) If contracting under this section is superseded by other arrangements for payment of inpatient hospital services, the successor program shall include separate reimbursement, as determined pursuant to paragraph (3) of subdivision (c). (f) (1) For purposes of this section, "revenue bonds" are defined as that term is defined in subdivision (c) of Section 15459 of the Government Code, and shall also include general obligation bonds issued by or on behalf of eligible hospitals for projects of more than five million dollars ($5,000,000). (2) (A) The aggregate principal amount of general obligation bonds to be issued as revenue bonds under this subdivision for the anticipated allowable portion of projects shall not, in any fiscal year, exceed a statewide amount established in the Medi-Cal estimates submitted to the fiscal committees of the Legislature pursuant to Section 14100.5, or as otherwise statutorily determined by the Legislature. (B) In preparing Medi-Cal estimates, the department shall consider, but need not include, all actual and anticipated projects. (g) (1) The department shall promptly seek any necessary federal approvals for the implementation of this section, and, if necessary to obtain federal approval, the department may, for federal purposes, limit the program to those costs which are allowable expenditures under Title XIX of the federal Social Security Act (Subchapter 19 (commencing with Section 1396) of Chapter 7 of Title 42 of the United States Code), subject to paragraph (2). (2) The department shall continue to be responsible for the reimbursement of eligible providers from state funds for the amount of supplemental reimbursement pursuant to paragraph (3) of subdivision (c), excluding only the federal portion of costs which have been determined by the federal government not to be allowable under Title XIX of the federal Social Security Act. (h) (1) A hospital receiving supplemental reimbursement pursuant to this section shall be liable for any reduced federal financial participation resulting from the implementation of this section. (2) The department shall submit claims for federal financial participation for all elements of the supplemental reimbursements which are allowable expenditures under federal law. (3) The department shall, on an annual basis, submit any necessary materials to the federal government to provide assurances that claims for federal financial participation will include only those expenditures which are allowable under federal law. (4) (A) The department may require that hospitals receiving supplemental reimbursement submit data necessary for the department to determine the appropriate amounts to claim as expenditures qualifying for federal financial participation. (B) Unless otherwise permitted by federal law, the total statewide payment under the selective provider contracting program, in the aggregate on an annual basis, shall not exceed an amount that would otherwise have been paid under the Medi-Cal program on a statewide basis for the same services, in the aggregate on an annual basis, if the contracting program were not implemented. (i) (1) Subject to paragraph (2), any hospital that met the criteria specified in subdivision (a) at the time it submitted its final plans for an eligible project in accordance with subparagraph (C) of paragraph (1) of subdivision (b) shall continue to receive reimbursement as set forth in this section irrespective of whether or not the hospital qualifies as a disproportionate share hospital after submission of its final plans. (2) A hospital that fails to meet the criteria for disproportionate share status on or before June 30, 2002, shall be required to submit data to the department that demonstrates that the hospital failed to meet the criteria for a disproportionate share hospital because its low-income utilization rate, as determined pursuant to Section 4112 of the Omnibus Budget Reconciliation Act of 1987 (Public Law 100-203), does not exceed 25 percent due to one or more of the following factors: (A) An increase in outpatient utilization. (B) A decrease in the average length of stay for Medi-Cal beneficiaries or charity care patients due to technological advances in the provision of care. (C) Increased implementation within the state of Medi-Cal prepaid health plan programs. (D) The level of reimbursement that the hospital receives for outpatient visits. (E) Other circumstances beyond the hospital's control that affect the hospital's ability to meet the criteria for disproportionate status, even though the hospital continues to have a mission to provide care to Medi-Cal and charity care patients. SEC. 249. Section 14103.2 of the Welfare and Institutions Code is amended to read: 14103.2. Whenever the director determines that the services or products of a provider cost the program in excess of reasonable value received, the provider shall thereafter be disqualified from participation in the program. The disqualification shall not become effective until an opportunity for a public hearing has been granted. The department shall conduct a continuing review of reimbursements to all hospitals participating in the program in order to determine if any reimbursements are in excess of reasonable value received. SEC. 250. Section 14104.3 of the Welfare and Institutions Code is amended to read: 14104.3. (a) The department may, to the extent feasible, enter into nonexclusive contracts providing arrangements under which funds available for health care under this chapter shall be administered and disbursed to providers of health care or to their designated agents in consideration for services rendered and supplies furnished by them in accordance with the provisions of the applicable contract and any schedule of charges or formula for determining payments established pursuant to the contract. The contract shall provide that the contractor: (1) Will take any action as may be necessary to assure that payment for services to hospitals and other facilities and professional services shall be based on standards determined by the director. The formula for the payments shall be determined in accordance with regulations establishing the methods to be used and the items to be included. (2) Will take any action which may be necessary to assure that charges by providers will be reasonable and not higher than the charge for a comparable service and under comparable circumstances made to other payors. (3) Bills for service under this chapter shall be reviewed and rejected or processed for payment within an average of 18 days from receipt of evidence establishing validity of the bill for payment in the office of the contractor. Ninety percent of all bills submitted to the contractor and under the contractor's control, as set forth in the request for proposal, shall be processed and paid in 30 days and 99 percent of all claims submitted to the contractor and under the contractor's control, as set forth in the request for proposal, shall be processed and paid in 90 days. If it is determined by the contractor that additional evidence of validity is required, the evidence shall be requested within 18 days from the date the bill is received by the contractor. In any event, notice shall be given within 30 days from the date the bill is received concerning the status of the bill submitted if the bill is held for peer review by the contractor beyond 18 days. In no event, shall the number of bills not processed for payment within 30 days of receipt exceed 9 percent of the total bills inventory. (b) Contracts awarded under this section shall be awarded on a bid basis, and before entering into any contract, the director shall publish notice soliciting bids. (c) Contracts awarded under this section may provide all of the following: (1) Payments to the contractor may be on a capitation or prepayment basis, or on a combination of both methods of payment. (2) Providers may assume all or part of the risk of utilization of services, or costs of services, or both, and that providers who agree to assume that risk may be separately classified for purposes of applicable rates of payment or administrative requirements. (3) Any other provisions which have previously been incorporated into pilot programs established pursuant to Chapter 8 (commencing with Section 14200) and determined by the director to be desirable and feasible. SEC. 252. Section 14132 of the Welfare and Institutions Code is amended to read: 14132. The following is the schedule of benefits under this chapter: (a) Outpatient services are covered as follows: Physician, hospital or clinic outpatient, surgical center, respiratory care, optometric, chiropractic, psychology, podiatric, occupational therapy, physical therapy, speech therapy, audiology, acupuncture to the extent federal matching funds are provided for acupuncture, and services of persons rendering treatment by prayer or healing by spiritual means in the practice of any church or religious denomination insofar as these can be encompassed by federal participation under an approved plan, subject to utilization controls. (b) Inpatient hospital services, including, but not limited to, physician and podiatric services, physical therapy and occupational therapy, are covered subject to utilization controls. (c) Nursing facility services, subacute care services, and services provided by any category of intermediate care facility for the developmentally disabled, including podiatry, physician, nurse practitioner services, and prescribed drugs, as described in subdivision (d), are covered subject to utilization controls. Respiratory care, physical therapy, occupational therapy, speech therapy, and audiology services for patients in nursing facilities and any category of intermediate care facility for the developmentally disabled are covered subject to utilization controls. (d) Purchase of prescribed drugs is covered subject to the Medi-Cal List of Contract Drugs and utilization controls. (e) Outpatient dialysis services and home hemodialysis services, including physician services, medical supplies, drugs and equipment required for dialysis, are covered, subject to utilization controls. (f) Anesthesiologist services when provided as part of an outpatient medical procedure, nurse anesthetist services when rendered in an inpatient or outpatient setting under conditions set forth by the director, outpatient laboratory services, and X-ray services are covered, subject to utilization controls. Nothing in this subdivision shall be construed to require prior authorization for anesthesiologist services provided as part of an outpatient medical procedure or for portable X-ray services in a nursing facility or any category of intermediate care facility for the developmentally disabled. (g) Blood and blood derivatives are covered. (h) (1) Emergency and essential diagnostic and restorative dental services, except for orthodontic, fixed bridgework, and partial dentures that are not necessary for balance of a complete artificial denture, are covered, subject to utilization controls. The utilization controls shall allow emergency and essential diagnostic and restorative dental services and prostheses that are necessary to prevent a significant disability or to replace previously furnished prostheses which are lost or destroyed due to circumstances beyond the beneficiary's control. The department's utilization controls shall not require X-rays as a condition of reimbursement for fillings for children under 18 years of age. Notwithstanding the foregoing, the director may by regulation provide for certain fixed artificial dentures necessary for obtaining employment or for medical conditions which preclude the use of removable dental prostheses, and for orthodontic services in cleft palate deformities administered by the department's California Children Services Program. (2) For persons 21 years of age or older, the services specified in paragraph (1) shall be provided subject to the following conditions: (A) Periodontal treatment is not a benefit. (B) Endodontic therapy is not a benefit except for vital pulpotomy. (C) Laboratory processed crowns are not a benefit. (D) Removable prosthetics shall be a benefit only for patients as a requirement for employment. (E) The director may, by regulation, provide for the provision of fixed artificial dentures that are necessary for medical conditions that preclude the use of removable dental prostheses. (F) Notwithstanding the conditions specified in subparagraphs (A) to (E), inclusive, the department may approve services for persons with special medical disorders subject to utilization review. (3) Paragraph (2) shall become inoperative July 1, 1995. (i) Medical transportation is covered, subject to utilization controls. (j) Home health care services are covered, subject to utilization controls. (k) Prosthetic and orthotic devices and eyeglasses are covered, subject to utilization controls. Utilization controls shall allow replacement of prosthetic and orthotic devices and eyeglasses necessary because of loss or destruction due to circumstances beyond the beneficiary's control. Frame styles for eyeglasses replaced pursuant to this subdivision shall not change more than once every two years, unless the department so directs. Orthopedic and conventional shoes are covered when provided by a prosthetic and orthotic supplier on the prescription of a physician and when at least one of the shoes will be attached to a prosthesis or brace, subject to utilization controls. Modification of stock conventional or orthopedic shoes when medically indicated, is covered subject to utilization controls. When there is a clearly established medical need that cannot be satisfied by the modification of stock conventional or orthopedic shoes, custom-made orthopedic shoes are covered, subject to utilization controls. (l) Hearing aids are covered, subject to utilization controls. Utilization controls shall allow replacement of hearing aids necessary because of loss or destruction due to circumstances beyond the beneficiary's control. (m) Durable medical equipment and medical supplies are covered, subject to utilization controls. The utilization controls shall allow the replacement of durable medical equipment and medical supplies when necessary because of loss or destruction due to circumstances beyond the beneficiary's control. The utilization controls shall allow authorization of durable medical equipment needed to assist a disabled beneficiary in caring for a child for whom the disabled beneficiary is a parent, stepparent, foster parent, or legal guardian, subject to the availability of federal financial participation. The department shall adopt emergency regulations to define and establish criteria for assistive durable medical equipment in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (n) Family planning services are covered, subject to utilization controls. (o) Inpatient intensive rehabilitation hospital services, including respiratory rehabilitation services, in a general acute care hospital are covered, subject to utilization controls, when either of the following criteria are met: (1) A patient with a permanent disability or severe impairment requires an inpatient intensive rehabilitation hospital program as described in Section 14064 to develop function beyond the limited amount that would occur in the normal course of recovery. (2) A patient with a chronic or progressive disease requires an inpatient intensive rehabilitation hospital program as described in Section 14064 to maintain the patient's present functional level as long as possible. (p) Adult day health care is covered in accordance with Chapter 8.7 (commencing with Section 14520). (q) (1) Application of fluoride, or other appropriate fluoride treatment as defined by the department, other prophylaxis treatment for children 17 years of age and under, are covered. (2) All dental hygiene services provided by a registered dental hygienist in alternative practice pursuant to Sections 1768 and 1770 of the Business and Professions Code may be covered as long as they are within the scope of Denti-Cal benefits and they are necessary services provided by a registered dental hygienist in alternative practice. (r) (1) Paramedic services performed by a city, county, or special district, or pursuant to a contract with a city, county, or special district, and pursuant to a program established under Article 3 (commencing with Section 1480) of Chapter 2.5 of Division 2 of the Health and Safety Code by a paramedic certified pursuant to that article, and consisting of defibrillation and those services specified in subdivision (3) of Section 1482 of the article. (2) All providers enrolled under this subdivision shall satisfy all applicable statutory and regulatory requirements for becoming a Medi-Cal provider. (3) This subdivision shall be implemented only to the extent funding is available under Section 14106.6. (s) In-home medical care services are covered when medically appropriate and subject to utilization controls, for beneficiaries who would otherwise require care for an extended period of time in an acute care hospital at a cost higher than in-home medical care services. The director shall have the authority under this section to contract with organizations qualified to provide in-home medical care services to those persons. These services may be provided to patients placed in shared or congregate living arrangements, if a home setting is not medically appropriate or available to the beneficiary. As used in this section, "in-home medical care service" includes utility bills directly attributable to continuous, 24-hour operation of life-sustaining medical equipment, to the extent that federal financial participation is available. As used in this subdivision, in-home medical care services, include, but are not limited to: (1) Level of care and cost of care evaluations. (2) Expenses, directly attributable to home care activities, for materials. (3) Physician fees for home visits. (4) Expenses directly attributable to home care activities for shelter and modification to shelter. (5) Expenses directly attributable to additional costs of special diets, including tube feeding. (6) Medically related personal services. (7) Home nursing education. (8) Emergency maintenance repair. (9) Home health agency personnel benefits which permit coverage of care during periods when regular personnel are on vacation or using sick leave. (10) All services needed to maintain antiseptic conditions at stoma or shunt sites on the body. (11) Emergency and nonemergency medical transportation. (12) Medical supplies. (13) Medical equipment, including, but not limited to, scales, gurneys, and equipment racks suitable for paralyzed patients. (14) Utility use directly attributable to the requirements of home care activities which are in addition to normal utility use. (15) Special drugs and medications. (16) Home health agency supervision of visiting staff which is medically necessary, but not included in the home health agency rate. (17) Therapy services. (18) Household appliances and household utensil costs directly attributable to home care activities. (19) Modification of medical equipment for home use. (20) Training and orientation for use of life support systems, including, but not limited to, support of respiratory functions. (21) Respiratory care practitioner services as defined in Sections 3702 and 3703 of the Business and Professions Code, subject to prescription by a physician and surgeon. Beneficiaries receiving in-home medical care services are entitled to the full range of services within the Medi-Cal scope of benefits as defined by this section, subject to medical necessity and applicable utilization control. Services provided pursuant to this subdivision, which are not otherwise included in the Medi-Cal schedule of benefits, shall be available only to the extent that federal financial participation for these services is available in accordance with a home- and community-based services waiver. (t) Home- and community-based services approved by the United States Department of Health and Human Services may be covered to the extent that federal financial participation is available for those services under waivers granted in accordance with Section 1396n of Title 42 of the United States Code. The director may seek waivers for any or all home- and community-based services approvable under Section 1396n of Title 42 of the United States Code. Coverage for those services shall be limited by the terms, conditions, and duration of the federal waivers. (u) Comprehensive perinatal services, as provided through an agreement with a health care provider designated in Section 14134.5 and meeting the standards developed by the department pursuant to Section 14134.5, subject to utilization controls. The department shall seek any federal waivers necessary to implement the provisions of this subdivision. The provisions for which appropriate federal waivers cannot be obtained shall not be implemented. Provisions for which waivers are obtained or for which waivers are not required shall be implemented notwithstanding any inability to obtain federal waivers for the other provisions. No provision of this subdivision shall be implemented unless matching funds from Subchapter XIX (commencing with Section 1396) of Chapter 7 of Title 42 of the United States Code are available. (v) Early and periodic screening, diagnosis, and treatment for any individual under 21 years of age is covered, consistent with the requirements of Subchapter XIX (commencing with Section 1396) of Chapter 7 of Title 42 of the United States Code. (w) Hospice service which is Medicare-certified hospice service is covered, subject to utilization controls. Coverage shall be available only to the extent that no additional net program costs are incurred. (x) When a claim for treatment provided to a beneficiary includes both services which are authorized and reimbursable under this chapter, and services which are not reimbursable under this chapter, that portion of the claim for the treatment and services authorized and reimbursable under this chapter shall be payable. (y) Home- and community-based services approved by the United States Department of Health and Human Services for beneficiaries with a diagnosis of AIDS or ARC, who require intermediate care or a higher level of care. Services provided pursuant to a waiver obtained from the Secretary of the United States Department of Health and Human Services pursuant to this subdivision, and which are not otherwise included in the Medi-Cal schedule of benefits, shall be available only to the extent that federal financial participation for these services is available in accordance with the waiver, and subject to the terms, conditions, and duration of the waiver. These services shall be provided to individual beneficiaries in accordance with the client's needs as identified in the plan of care, and subject to medical necessity and applicable utilization control. The director may under this section contract with organizations qualified to provide, directly or by subcontract, services provided for in this subdivision to eligible beneficiaries. Contracts or agreements entered into pursuant to this division shall not be subject to the Public Contract Code. (z) Respiratory care when provided in organized health care systems as defined in Section 3701 of the Business and Professions Code, and as an in-home medical service as outlined in subdivision (s). (aa) (1) There is hereby established in the department, a program to provide comprehensive clinical family planning services to any person who has a family income at or below 200 percent of the federal poverty level, as revised annually, and who is eligible to receive these services pursuant to the waiver identified in paragraph (2). This program shall be known as the Family Planning, Access, Care, and Treatment (Family PACT) Waiver Program. (2) The department shall seek a waiver for a program to provide comprehensive clinical family planning services as described in paragraph (8). The program shall be operated only in accordance with the waiver and the statutes and regulations in paragraph (4) and subject to the terms, conditions, and duration of the waiver. The services shall be provided under the program only if the waiver is approved by the federal Health Care Financing Administration in accordance with Section 1396n of Title 42 of the United States Code and only to the extent that federal financial participation is available for the services. (3) Solely for the purposes of the waiver and notwithstanding any other provision of law, the collection and use of an individual's social security number shall be necessary only to the extent required by federal law. (4) Sections 14105.3 to 14105.39, inclusive, 14107.11, 24005, and 24013, and any regulations adopted under these statutes shall apply to the program provided for under this subdivision. No other provision of law under the Medi-Cal program or the State-Only Family Planning Program shall apply to the program provided for under this subdivision. (5) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department may implement, without taking regulatory action, the provisions of the waiver after its approval by the federal Health Care Financing Administration and the provisions of this section by means of an all-county letter or similar instruction to providers. Thereafter, the department shall adopt regulations to implement this section and the approved waiver in accordance with the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. Beginning six months after the effective date of the act adding this subdivision, the department shall provide a status report to the Legislature on a semiannual basis until regulations have been adopted. (6) In the event that the Department of Finance determines that the program operated under the authority of the waiver described in paragraph (2) is no longer cost-effective, this subdivision shall become inoperative on the first day of the first month following the issuance of a 30-day notification of that determination in writing by the Department of Finance to the chairperson in each house that considers appropriations, the chairpersons of the committees, and the appropriate subcommittees in each house that considers the State Budget, and the Chairperson of the Joint Legislative Budget Committee. (7) If this subdivision ceases to be operative, all persons who have received or are eligible to receive comprehensive clinical family planning services pursuant to the waiver described in paragraph (2) shall receive family planning services under the Medi-Cal program pursuant to subdivision (n) if they are otherwise eligible for Medi-Cal with no share of cost, or shall receive comprehensive clinical family planning services under the program established in Division 24 (commencing with Section 24000) either if they are eligible for Medi-Cal with a share of cost or if they are otherwise eligible under Section 24003. (8) For purposes of this subdivision, "comprehensive clinical family planning services" means the process of establishing objectives for the number and spacing of children, and selecting the means by which those objectives may be achieved. These means include a broad range of acceptable and effective methods and services to limit or enhance fertility, including contraceptive methods, federal Food and Drug Administration approved contraceptive drugs, devices, and supplies, natural family planning, abstinence methods, and basic, limited fertility management. Comprehensive clinical family planning services include, but are not limited to, preconception counseling, maternal and fetal health counseling, general reproductive health care, including diagnosis and treatment of infections and conditions, including cancer, that threaten reproductive capability, medical family planning treatment and procedures, including supplies and followup, and informational, counseling, and educational services. Comprehensive clinical family planning services shall not include abortion, pregnancy testing solely for the purposes of referral for abortion or services ancillary to abortions, or pregnancy care that is not incident to the diagnosis of pregnancy. Comprehensive clinical family planning services shall be subject to utilization control and include all of the following: (A) Family planning related services and male and female sterilization. Family planning services for men and women shall include emergency services and services for complications directly related to the contraceptive method, federal Food and Drug Administration approved contraceptive drugs, devices, and supplies, and followup, consultation, and referral services, as indicated, which may require treatment authorization requests. (B) All United States Department of Agriculture, federal Food and Drug Administration approved contraceptive drugs, devices, and supplies that are in keeping with current standards of practice and from which the individual may choose. (C) Culturally and linguistically appropriate health education and counseling services, including informed consent, that include all of the following: (i) Psychosocial and medical aspects of contraception. (ii) Sexuality. (iii) Fertility. (iv) Pregnancy. (v) Parenthood. (vi) Infertility. (vii) Reproductive health care. (viii) Preconception and nutrition counseling. (ix) Prevention and treatment of sexually transmitted infection. (x) Use of contraceptive methods, federal Food and Drug Administration approved contraceptive drugs, devices, and supplies. (xi) Possible contraceptive consequences and followup. (xii) Interpersonal communication and negotiation of relationships to assist individuals and couples in effective contraceptive method use and planning families. (D) A comprehensive health history, updated at next periodic visit (between 11 and 24 months after initial examination) that includes a complete obstetrical history, gynecological history, contraceptive history, personal medical history, health risk factors, and family health history, including genetic or hereditary conditions. (E) A complete physical examination on initial and subsequent periodic visits. SEC. 253. Section 14132.90 of the Welfare and Institutions Code is amended to read: 14132.90. (a) As of September 15, 1995, day care habilitative services, pursuant to subdivision (c) of Section 14021 shall be provided only to alcohol and drug exposed pregnant women and women in the postpartum period, or as required by federal law. (b) (1) Notwithstanding any other provision of law, except to the extent required by federal law, if, as of May 15, 2000, the projected costs for the 1999-2000 fiscal year for outpatient drug abuse services, as described in Section 14021, exceed forty-five million dollars ($45,000,000) in state General Fund moneys, then the outpatient drug free services, as defined in Section 51341.1 of Title 22 of the California Code of Regulations, shall not be a benefit under this chapter as of July 1, 2000. (2) Notwithstanding paragraph (1), narcotic replacement therapy and Naltrexone shall remain benefits under this chapter. (3) Notwithstanding paragraph (1), residential care, outpatient drug free services, and day care habilitative services, for alcohol and drug exposed pregnant women and women in the postpartum period shall remain benefits under this chapter. (c) Expenditures for services purchased at the direction of county welfare departments on behalf of CalWORKs recipients shall not be included in the computation of costs for subdivision (b). (d) For the 1999-2000 fiscal year and each fiscal year thereafter, there shall be separate annual fiscal year General Fund appropriations for drug Medi-Cal perinatal services (Item 4200-104-0001 of the Budget Act), drug Medi-Cal nonperinatal services (Item 4200-103-0001 of the Budget Act), nondrug Medi-Cal perinatal services (Item 4200-102-0001 of the Budget Act), and nondrug Medi-Cal nonperinatal services (Item 4200-101-0001 of the Budget Act). (e) Notwithstanding any other provision of law, the State Department of Alcohol and Drug Programs shall maintain a contingency reserve of the reappropriated General Fund moneys for the purpose of drug Medi-Cal program expenditures. (f) Unexpended General Fund moneys appropriated for the drug Medi-Cal program may be transferred for use as nondrug Medi-Cal county expenditures in the current or budget years. Unexpended General Fund moneys shall not be transferred from nondrug Medi-Cal to the drug Medi-Cal program for purposes of providing matching funds for federal financial participation. SEC. 254. Section 14133.5 of the Welfare and Institutions Code is amended to read: 14133.5. There shall be established a two-year pilot program, whereby in Alameda County, utilization controls shall not be required when, pursuant to Title XVIII of the federal Social Security Act, a county hospital based utilization review committee has been established to determine the level of authorization for payment and a utilization plan has been filed with the department and approved by it. The department shall adopt rules and regulations to implement this section, within 60 days of the effective date of this act, including requirements that a hospital's utilization review committee shall demonstrate that it is more cost-effective than the Medi-Cal utilization control function. No later than 18 months following the commencement of the pilot program, the department shall submit a report to the Legislature on the program. SEC. 255. Section 14138.5 of the Welfare and Institutions Code is amended to read: 14138.5. The State Department of Health Services shall report to the Legislature on a biennial basis on all of the following data with respect to the child health and disability prevention program provided for pursuant to Article 6 (commencing with Section 124025) of Chapter 3 of Part 2 of Division 106 of the Health and Safety Code: (a) The number of children, by age and by county, enrolled in each plan contracting with the department or with the California Medical Assistance Commission. (b) The improved reporting capabilities of the new contract for the Management Information System/Decision Support System (MIS/DSS), with specific emphasis on how it can be used to gather data from the PM 160 forms that are useful for analytical purposes. (c) Information on what actions are being taken to ensure compliance with Child Health and Disability Prevention Program examination requirements. (d) The statewide percentage of all children enrolled in managed care plans, by age, who received a comprehensive Child Health and Disability Prevention Program examination, and the percentage of all children enrolled who received a comprehensive Child Health and Disability Prevention Program examination, by county and by plan. (e) The number of children in each plan, by age, who are current on periodicity health assessments, with appropriate documentation. If the capability to report this information does not exist, a timeline of when the information will be available and the barriers that exist to reporting the information. (f) The number of children in each plan, by county and by age, who were referred for followup diagnosis or treatment following a Child Health and Disability Prevention Program comprehensive examination. (g) The number of children in each plan, by county and by age, who received needed diagnosis and treatment as a result of a Child Health and Disability Prevention Program examination. If the capability to report this information does not exist, a timeline of when it will be available and the barriers that exist to reporting this information. SEC. 256. Section 14145.1 of the Welfare and Institutions Code is amended to read: 14145.1. (a) The department may administer grants for purposes of this article, that shall be awarded through a request for application process. (1) Grants may be awarded to local organizing groups (LOGs) that are existing or new community-based nonprofit organizations or government entities for purposes of implementing long-term care integration pilot projects, pursuant to Article 4.05 (commencing with Section 14139.05). (2) Grants may be available for LOGs in the planning phase, or the development phase of the project, or both. Planning phase grants shall be limited to a maximum award of fifty thousand dollars ($50,000). Development phase grants shall be limited to a maximum award of one hundred fifty thousand dollars ($150,000). The planning phase includes activities related to initial planning for a long-term care integration pilot project (LTCIPP). The development phase includes activities for implementing the planning phase, up to actual implementation of the pilot project. (b) Criteria for grant selection shall include, but not be limited to, the following: (1) For planning phase grants: (A) Identification of a LOG committed to development of a LTCIPP that includes major stakeholders, including, but not limited to, consumers, community-based providers, institutional providers, and public entities. (B) Evidence of local government support for development of a LTCIPP. (C) A description of current and planned consumer involvement. (D) A plan for the use of funds. (E) Specification of goals and objectives, and a work plan for achieving them. (F) A proposed strategy for project evaluation. (2) For development phase grants: (A) Identification of the authorized grantee sanctioned by the local government entity. (B) Identification of an entity for operation of the LTCIPP. (C) Definition of a governance structure. (D) An adopted work plan that includes all of the following: (i) A vision statement describing the long-term care system for the community. (ii) Description of the covered scope of services and programs to be integrated at the local level. (iii) Description of the target population. (iv) Plan for integration of funding for those services. (E) Specific work goals for the development phase. (F) A work schedule for completion. (G) A proposed strategy for project evaluation. (3) Both planning phase and development phase grant funds may be used for, but are not limited to, the following purposes: (A) Staff support. (B) Consulting contracts. (C) Community organizing support. (D) Data analysis. (c) Grantees shall be required to match a portion of the grant awarded, either with cash, or in-kind contributions totaling 20 percent of the total grant. The match required by this subdivision shall be supplemental to the funds appropriated for the LTCIPP. SEC. 257. Section 14148 of the Welfare and Institutions Code is amended to read: 14148. (a) The department shall adopt the federal option provided under Section 4101 of the Omnibus Budget Reconciliation Act of 1987 (Public Law 100-203) to extend eligibility for medical assistance under Medicaid to all pregnant women and infants with family incomes not in excess of 185 percent of the federal poverty level. If a premium is imposed, the amount of the premium shall not exceed 10 percent of the amount by which the family's income, less actual child care costs, exceeds 150 percent of the federal poverty level as required by Section 4101 (a) of the 1987 Medicaid Budget Reconciliation Agreement. The department shall implement this section by emergency regulation. (b) Upon order of the Department of Finance, the State Controller shall transfer funds from Item 4260-101-001 of the Budget Act of 1988 to Item 4260-111-001 of the Budget Act of 1988 during the 1988-89 fiscal year for the purpose of funding outreach efforts for perinatal services. (c) Notwithstanding subdivision (a), the state may limit implementation of this section during the 1988-89 fiscal year, based upon the availability of department funds. The department may use maternal and child health funds to finance the increased costs of implementing an expansion of Medi-Cal eligibility to women and children with incomes of up to 185 percent of federal poverty levels if both of the following conditions exist: (1) The department has allocated for expenditure at least sixteen million dollars ($16,000,000) in funds redirected from the Medi-Cal program for that expansion. (2) If, and to the extent, the department determines that estimates of costs based on actual data indicate that the funds are needed to cover costs. (d) This section shall be fully implemented no later than April 1, 1990. (e) To assist Medi-Cal eligible pregnant women in receiving prenatal care promptly, all pregnant women applying for Medi-Cal shall be determined to have an immediate need. Counties, within existing resources, shall expedite the eligibility determination process for all pregnant women on the basis of their immediate needs. Upon determination of eligibility, a Medi-Cal card shall be issued immediately. (f) To the extent federal financial participation is available, the department shall apply the more liberal income deduction described in Section 1396a(r) of Title 42 of the United States Code when determining eligibility for pregnant women and infants under this section. The amount of this deduction shall be the difference between the 185 percent and the 200 percent federal poverty level applicable to the size of the family. SEC. 258. Section 14148.8 of the Welfare and Institutions Code is amended to read: 14148.8. (a) The State Department of Health Services shall provide Medi-Cal reimbursements to alternative birth centers for facility-related delivery costs at a statewide all-inclusive rate per delivery that shall not exceed 80 percent of the average Medi-Cal reimbursement received by general acute care hospitals with Medi-Cal contracts and shall be based on an average hospital length of stay of 1.7 days. The reimbursement rate shall be updated annually and shall be based on the California Medical Assistance Commission's annually published legislative report of average contract rates for general acute care hospitals with Medi-Cal contracts. However, the reimbursement shall not exceed the alternative birth center's charges to any non-Medi-Cal patient for similar services. (b) In order to be eligible for reimbursement pursuant to this section, an alternative birth center shall satisfy the following criteria as determined by the state department: (1) At least 150 patients or 50 percent of the patient caseload served at the center each year, whichever is less, shall be Medi-Cal patients and low-income patients. (2) The facility shall be currently certified as a comprehensive perinatal services provider. If not currently certified, the facility shall be certified with the first year of operation. (3) The facilities may utilize certified nurse midwives, certified nurse practitioners, and clinical nurse specialists where appropriate. (4) The facility shall meet the standards for certification established by the National Association of Childbearing Centers, including those relating to the proximity and involvement of hospitals, obstetricians, and pediatricians. (5) The facility shall establish and maintain a quality assurance program. (6) The facility shall maintain newborn followup care for at least one year. (7) The gathering of data and preparing reports as required in subdivision (c). (c) (1) Each alternative birth center awarded reimbursement pursuant to this section shall gather data and annually report outcome measures relating to the safety, cost-effectiveness, and patient acceptance of the center to the department to be made available upon request. (2) The report shall include data on the incidence of maternal and infant death, preterm newborns, low birth weight newborns, maternal complications, newborn complications, cesarean sections, forcep-assisted deliveries, deliveries involving use of anesthesia, months of prenatal care, family involvement in childbirth, breast-feeding, infant immunizations, well baby care, adjusted cost per case for deliveries performed at the center, and cost per case for women transferred to hospitals for delivery. (3) The department shall provide the Legislature with an annual report summarizing the data reported by the centers. (4) The department shall, to the extent information and resources are available, as determined by the department, compare the data provided by the centers with information furnished by other providers of prenatal and delivery services. The department shall use the comparative data to determine for the Medi-Cal program whether alternative birth centers are cost-effective, improve access to prenatal care, reduce the anticipated incidence of maternal and newborn complications, and have a high degree of patient acceptance. (d) The director shall administer this section and establish standards, procedures, and reimbursement rates, as the director deems necessary in carrying out this section. The establishment of the reimbursement rates is not required to be adopted as regulations pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (e) Nothing in this act shall alter the scope of practice for any health care professional or authorize the delivery of health care services in a setting or in a manner not authorized by the Health and Safety Code or the Business and Professions Code. SEC. 259. Section 14501 of the Welfare and Institutions Code is amended to read: 14501. The Office of Family Planning shall have all of the following functions, powers, and duties: (a) To make available to citizens of the state of childbearing age comprehensive medical knowledge, assistance and services relating to the planning of families. (b) To consult with state and local agencies which provide or administer family planning services and to participate in the formulation of regulations and other policy decisions governing the provision or administration of family planning services pursuant to state law or regulation. (c) To establish goals and priorities for all state agencies providing or administering family planning services. (d) To coordinate all family planning services and related programs conducted or administered by state agencies with the federal government so as to maximize the availability of these services by utilizing all available federal funds. (e) To conduct a survey of all of the existing facilities within the state having to do with family planning and infertility and the rendering of advice and assistance on birth control techniques and information. (f) To evaluate all existing programs and to establish in each county a viable program for the dispensation of family planning, infertility and birth control information and techniques. (g) To develop and administer scientific investigation into problems of infertility and existing and new family planning and birth control techniques. (h) To survey, evaluate, and establish programs of professional education and training for physicians, nurses, medical and nursing students, and other health care practitioners in rendering advice on family planning, infertility and birth control techniques and information. (i) To enter into contracts and agreements with individuals, colleges, universities, associations, corporations, municipalities and other units of government as may be deemed necessary and advisable to carry out the general intent and purposes of this article which may provide for payment by the state within the limit of funds available for material, equipment and services. (j) To submit a biennial report to the Legislature including, but not limited to, the subjects specified above. (k) To annually update and analyze family planning data. The data shall include, but not be limited to, the following: (1) Client number. (2) Ethnicity. (3) Family size. (4) Method. (5) Family income. (6) Service type. (7) Birthdate. (8) Total billing amount. (9) Pay source. (10) Date of visit. (11) Site number. (12) County of residence. (13) Updated estimates of women in need of subsidized family planning services from the federal government, when available, for all Office of Family Planning clinical service contractors by county of service, as well as statewide totals. SEC. 260. Section 14618 of the Welfare and Institutions Code is repealed. SEC. 261. Section 15452 of the Welfare and Institutions Code is repealed. SEC. 262. Section 16500.5 of the Welfare and Institutions Code is amended to read: 16500.5. (a) (1) The Legislature hereby declares its intent to encourage the continuity of the family unit by: (A) (i) Providing family preservation services. (ii) For purposes of this subdivision, "family preservation services" means intensive services for families whose children, without these services, would be subject to any of the following: (I) Be at imminent risk of out-of-home placement. (II) Remain in existing out-of-home placement for longer periods of time. (III) Be placed in a more restrictive out-of-home placement. (B) Providing supportive services for those children within the meaning of Sections 360, 361, and 364 when they are returned to the family unit or when a minor will probably soon be within the jurisdiction of the juvenile court pursuant to Section 301. (C) Providing counseling and family support services designed to eradicate the situation that necessitated intervention. (2) The Legislature finds that maintaining abused and neglected children in foster care grows increasingly costly each year, and that adequate funding for family services which might enable these children to remain in their homes is not as readily available as funding for foster care placement. (3) The Legislature further finds that other state bodies have addressed this problem through various systems of flexible reimbursement in child welfare programs that provide for more intensive and appropriate services to prevent foster care placement or significantly reduce the length of stay in foster care. (4) Accordingly, it is the intent of the Legislature in enacting this section to establish a system of flexible reimbursement in order to evaluate its potential as an efficient, economical, and effective alternative to out-of-home placement of children. (b) It is the intent of the Legislature that family preservation and support services in California conform to the federal definitions contained in Section 431 of the Social Security Act as contained in Public Law 103-66, the Omnibus Budget Reconciliation Act of 1987. The Legislature finds and declares that California's existing family preservation programs meet the intent of this new federal initiative. (c) (1) (A) (i) Any county, subject to the approval of the State Department of Social Services, may claim, on an annual basis, a portion of the state's share, and to the extent permitted, the federal share, of that county's AFDC-FC expenditures pursuant to subdivision (d) of Section 11450 for children subject to Sections 300, 301, 360, 361, and 364, in advance, provided the county conducts a program of family reunification and family maintenance services for families receiving these services pursuant to Sections 300, 301, 360, 364, and, as permitted by the department, children subject to Sections 601, 602, 726, and 727 of this code, and Section 7572.5 of the Government Code. (ii) The department or a participating county may terminate a county's participation in the program upon 30 days' notice if the project is deemed unsuccessful by either party. (iii) For each fiscal year of the program, a participating county may claim in advance an amount not to exceed an actual dollar amount that shall not exceed 25 percent of the state's share, and to the extent permitted, the federal share, of AFDC-FC funds to be expended by that county pursuant to subdivision (d) of Section 11450 for children subject to Sections 300, 301, 360, 361, and 364, and if permitted by the department, Sections 601, 602, 726, and 727, calculated for the first year of the project. (iv) The amount of funds to be advanced annually shall be calculated at the beginning of the county's program described in this subdivision. The advance shall be determined by projecting the state share of AFDC-FC General Fund expenditures, and to the extent permitted, the federal share of AFDC-FC expenditures for abused or neglected children pursuant to Sections 300, 301, 360, 361, 364, and, if permitted by the department, Sections 601, 602, 726, and 727, based upon state, and to the extent permitted, federal expenditures for AFDC-FC for the previous five years. (B) Except as provided in subparagraph (C), if the county's total AFDC-FC General Fund expenditures and, to the extent permitted by federal law, the federal share of AFDC-FC expenditures, added to the amount expended from the advance to the county exceeds, by more than 5 percent, the county's total projected AFDC-FC General Fund expenditures and, to the extent permitted by federal law, the federal share of AFDC-FC expenditures for that fiscal year, the county shall fund that portion of the overage in excess of 5 percent on a 100-percent basis. If the sum of a participating county's total AFDC-FC General Fund expenditures and, to the extent permitted by federal law, the federal share of AFDC-FC expenditures for their children, added to the amount expended from the advance to the county, is less than the total projected AFDC-FC General Fund expenditures and, to the extent permitted by federal law, the federal share of AFDC-FC expenditures for their children for that fiscal year, the county shall receive 25 percent of the amount of the savings. (C) (i) A participating county's share of expenditures in excess of the projected total may be reduced upon approval of the department. In determining this reduction, the department shall consider the increase in foster care placements of children in the homes of relatives as provided in Sections 361.3 and 16501.1, and in Section 505 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104-193; 42 U.S.C.A. Sec. 671(a)), which result in higher than projected AFDC-FC expenditures for children described in subparagraph (A). In considering the increase in relative foster care placements, the department shall adjust the total to consider only those children whose families have no history of receiving family preservation services. (ii) This subparagraph shall become inoperative on the date that the director executes a declaration, which shall be retained by the director, specifying that the department has established a kinship care program that is separate and distinct from the existing foster care program and that provides services uniquely suited to the needs of children being cared for by their kin, or on January 1, 2002, whichever is earlier. (2) Services which may be provided under this program may include, but are not limited to, counseling, mental health treatment and substance abuse treatment services, parenting, respite, day treatment, transportation, homemaking, and family support services. Each county that chooses to provide mental health treatment and substance abuse treatment shall identify and develop these services in consultation with county mental health treatment and substance abuse treatment agencies. Additional services may include those enumerated in Sections 16506 and 16507. The services to be provided pursuant to this section may be determined by each participating county. Each county may contract with individuals and organizations for services to be provided pursuant to this section. Each county shall utilize available private nonprofit resources in the county prior to developing new county-operated resources when these private nonprofit resources are of at least equal quality and costs as county-operated resources and shall utilize available county resources of at least equal quality and cost prior to new private nonprofit resources. (3) Participating counties authorized by this subdivision shall provide specific programs of direct services based on individual family needs as reflected in the service plans to families of the following: (A) Children who are dependent children not taken from physical custody of their parents or guardians pursuant to Section 364. (B) Children who are dependent children removed from the physical custody of their parents or guardian pursuant to Section 361. (C) Children who it is determined will probably soon be within the jurisdiction of the juvenile court pursuant to Section 301. (D) Upon approval of the department, children who have been adjudged wards of the court pursuant to Sections 601 and 602. (E) Upon approval of the department, families of children subject to Sections 726 and 727. (F) Upon approval of the department, children who are determined to require out-of-home placement pursuant to Section 7572.5 of the Government Code. (4) The services shall only be provided to families whose children will be placed in out-of-home care without the provision of services or to children who can be returned to their families with the provision of services. (5) The services selected by any participating county shall be reasonable and meritorious and shall demonstrate cost-effectiveness and success at avoiding out-of-home placement, or reducing the length of stay in out-of-home placement. A county shall not expend more funds for services under this subdivision than that amount which would be expended for placement in out-of-home care. (6) The program in each county shall be deemed successful if it meets the following standards: (A) Enables families to resolve their own problems, effectively utilize service systems, and advocate for their children in educational and social agencies. (B) Enhancing family functioning by building on family strengths. (C) At least 75 percent of the children receiving services remain in their own home for six months after termination of services. (D) During the first year after services are terminated: (i) At least 60 percent of the children receiving services remain at home one year after services are terminated. (ii) The average length of stay in out-of-home care of children selected to receive services who have already been removed from their home and placed in out-of-home care is 50 percent less than the average length of stay in out-of-home care of children who do not receive program services. (E) Two years after the termination of family preservation services: (i) The average length of out-of-home stay of children selected to receive services under this section who, at the time of selection, are in out-of-home care, is 50 percent less than the average length of stay in out-of-home care for children in out-of-home care who do not receive services pursuant to this section. (ii) At least 60 percent of the children who were returned home pursuant to this section remain at home. (7) Funds used for services provided under this section shall supplement, not supplant, child welfare services funds available for services pursuant to Sections 16506 and 16507. (8) Each county participating in the program authorized by this section shall only continue to utilize the advance fund-claiming mechanism specified in paragraph (1) if the department finds the county has demonstrated the successful outcome of the county program, based on the criteria for success specified in paragraph (6). (9) Programs authorized after the original pilot projects shall submit data to the department upon the department's request. (d) (1) A county welfare department social worker or probation officer may, pursuant to an appropriate court order, return a dependent minor or ward of the court removed from the home pursuant to Section 361 to his or her home, with appropriate interagency family preservation program services. (2) The county probation department may, with the approval of the State Department of Social Services, through an interagency agreement with the county welfare department, refer cases to the county welfare department for the direct provision of services under this subdivision. (e) State foster care funds shall remain within the administrative authority of the county welfare department and shall be used only for placement services or placement prevention services or county welfare department administrative cost related to the interagency family preservation program. (f) To the extent permitted by federal law, any federal funds provided for services to families and children may be utilized for the purposes of this section. (g) A county may establish family preservation programs that serve one or more geographic areas of the county, subject to the approval of the State Department of Social Services. SEC. 263. Section 18206 of the Welfare and Institutions Code is amended to read: 18206. (a) The director shall specify performance and quality assurance standards to be included in any experimental project for in-home supportive services undertaken pursuant to Section 18204 or extended pursuant to subdivision (a) of Section 18205. (b) In the case of a project subject to subdivision (a) of Section 18205 that is conducted pursuant to a contract between a private provider and a county, the standards shall assure delivery of all required services at the time the services are needed, including weekends and nights; establish proper screening, training, and supervision of persons providing direct services; and institute frequent periodic quality control audits and utilization review of all services. These standards shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (c) Quality control audits and utilization review shall be performed by entities that are independent of the county and the private contractor. The reports of the quality control audits and utilization review, excluding client confidential information, shall be made available to the public. The cost of those quality control audits and utilization review shall be considered as part of the county administrative costs for the managed contract. (d) (1) One year after the effective date of any project for in-home supportive services established pursuant to Section 18204 or after the date of extension pursuant to subdivision (a) of Section 18205, the Auditor General shall commission a study to review the performance of that project. Any independent reviewer designated in an existing contract may be commissioned to perform the study. (2) The study shall give special attention to both of the following: (A) The health and welfare of the recipients under the project, including the degree to which all required services have been delivered, out-of-home placement rates, prompt response to recipient complaints, and any other issue the director deems relevant. (B) The cost implications of the project, estimating the potential for ongoing savings, if any. (3) The study may include a fiscal audit of the contract. (e) Projects subject to Section 18204 relating to in-home supportive services and subject to this section shall, to the greatest extent possible, permit recipients to select their own qualified provider of care and set their own service schedule. SEC. 264. Section 18214 of the Welfare and Institutions Code is repealed. SEC. 265. Section 18240 of the Welfare and Institutions Code is amended to read: 18240. (a) Upon a request by the County of Los Angeles, the department may review and approve a waiver that would permit changes in earned income incentives available to residents in housing complexes in that county participating in the Jobs-Plus Community Revitalization Initiative for Public Housing Families. (b) Waiver authority pursuant to subdivision (a) shall be limited to applicable working-age residents of the County of Los Angeles taking part in the initiative implemented at Jobs-Plus sites in the county. (c) The waiver shall permit work-related financial incentives that are more generous than those otherwise operating pursuant to Chapter 2 (commencing with Section 11200) of Part 3. (d) Waivers shall last only for the duration of the initiative referred to in subdivision (a). (e) The department shall grant the requested waivers no sooner than 30 days after a report to the appropriate policy and fiscal committees of the Legislature of the nature, extent, and duration of the waivers. (f) This article shall remain in effect only until January 1, 2004, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2004, deletes or extends that date. SEC. 268. Section 1 of Chapter 74 of the Statutes of 1978, as amended by Section 1 of Chapter 317 of the Statutes of 1997, is amended to read: Section 1. There is hereby granted to the City of Newport Beach and its successors all of the right, title, and interest of the State of California held by the state by virtue of its sovereignty in and to all that portion of the tidelands and submerged lands, whether filled or unfilled, bordering upon and under the Pacific Ocean or Newport Bay in the County of Orange, which were within the corporate limits of the City of Newport Beach, a municipal corporation, on July 25, 1919; the same to be forever held by the city and its successors in trust for the uses and purposes and upon the following express conditions: (a) The lands shall be used by the city and its successors for purposes in which there is a general statewide interest, as follows: (1) For the establishment, improvement, and conduct of a public harbor; and for the construction, maintenance, and operation thereon of wharves, docks, piers, slips, quays, ways, and streets, and other utilities, structures, and appliances necessary or convenient for the promotion or accommodation of commerce and navigation. (2) For the establishment, improvement, and conduct of public bathing beaches, public marinas, public aquatic playgrounds, and similar recreational facilities open to the general public; and for the construction, reconstruction, repair, maintenance, and operation of all works, buildings, facilities, utilities, structures, and appliances incidental, necessary, or convenient for the promotion and accommodation of any such uses. (3) For the preservation, maintenance, and enhancement of the lands in their natural state and the reestablishment of the natural state of the lands so that they may serve as ecological units for scientific study, as open space, and as environments which provide food and habitat for birds and marine life, and which favorably affect the scenery and climate of the area. (b) Except as otherwise provided in this section, the city or its successors shall not, at any time, grant, convey, give, or alienate the lands, or any part thereof, to any individual, firm, public or private entity, or corporation for any purposes whatever; except that the city or its successors may grant franchises thereon for a period not exceeding 50 years for wharves and other public uses and purposes and may lease the lands, or any part thereof, for terms not exceeding 50 years for purposes consistent with the trust upon which the lands are held by the state and with the uses specified in this section. (c) The lands shall be improved without expense to the state; provided, however, that nothing contained in this act shall preclude expenditures for the development of the lands for the purposes authorized by this act, by the state, or any board, agency, or commission thereof, or expenditures by the city of any funds received for such purpose from the state or any board, agency, or commission thereof. (d) In the management, conduct, operation, and control of the lands or any improvements, betterments, or structures thereon, the city or its successors shall make no discrimination in rates, tolls, or charges for any use or service in connection therewith. (e) The state shall have the right to use without charge any transportation, landing, or storage improvements, betterments, or structures constructed upon the lands for any vessel or other watercraft or railroad owned or operated by the state. (f) There is hereby reserved to the people of the state the right to fish in the waters on the lands with the right of convenient access to the waters over the lands for such purpose, which rights shall be subject, however, to such rules and regulations as are necessary for the accomplishment of the purposes specified in subdivision (a). (g) Notwithstanding any provision of this section to the contrary, the city may lease the lots located within Parcels A, B, and C described in Section 6 of this act for the purposes set forth in this act and for terms not to exceed 50 years. The consideration to be received by the city for such leases shall be the fair market rental value of such lots as finished subdivided lots with streets constructed and all utilities installed. The form of such leases and the range of consideration to be received by the city shall be approved by the State Lands Commission prior to the issuance of any such lease. All money received by the city from existing and future leases of those lots shall be deposited in the city tideland trust funds as provided in Section 2. (h) With the approval of the State Lands Commission, the city may transfer portions of the lands granted by this act, or held pursuant to this act, to the state acting by and through the State Lands Commission, for lease to the Department of Fish and Game for an ecological reserve or wildlife refuge, or both, and other compatible uses to be undertaken by the department; provided, however, that, if at any time the Department of Fish and Game no longer uses those portions of the lands so transferred by the city to the state for those purposes, the lands so transferred shall revert to the city to be held pursuant to the provisions of this act. Upon approving such a transfer from the city to the state, the State Lands Commission shall lease the lands so transferred to the Department of Fish and Game. The public benefits shall be the sole consideration to be received by the State Lands Commission from the Department of Fish and Game for that lease. Any and all income received by the Department of Fish and Game from the lands so leased shall be used only in connection with the department's improvement and administration of the leased lands. (i) The city shall establish a separate tidelands trust fund or funds in such a manner as may be approved by the State Lands Commission, and the city shall deposit in the fund or funds all money received directly from, or indirectly attributable to, the granted tidelands in the city. (j) In accordance with this act, the city, acting either alone or jointly with another local or state agency, may use revenues accruing from or out of the use of the granted tidelands or from any additional trust assets, for any or all of the purposes set forth in this act on public trust lands within the City of Newport Beach. Those revenues may be deposited in one or more reserve funds for use in accordance with the terms and conditions set forth in this act. (k) As to the accumulation and expenditure of revenues for any single capital improvement on the public trust lands within the city involving an amount in excess of two hundred fifty thousand dollars ($250,000) in the aggregate, the city shall file with the State Lands Commission a detailed description of such capital improvement not less than 30 days prior to the time of any disbursement therefor or in connection therewith. The executive officer of the commission shall notify the city within 30 days from the date of the filing, if the proposed expenditure raises significant issues. Upon receipt of the notification, the city shall not make any disbursement in connection with the proposed expenditure for 60 days or until the commission has acted on the proposed expenditure, whichever is the shorter period. Within 60 days of the notification by the executive officer, the State Lands Commission may determine and notify the city that the capital improvement is not in the statewide interest and benefit or is not authorized by the provisions of subdivision (j). The State Lands Commission may request the opinion of the Attorney General on the matter; and, if it does so, a copy of the opinion shall be delivered to the city with the notice of its determination. If the State Lands Commission notifies the city that the capital improvement is not authorized, the city shall not disburse any revenue for or in connection with the capital improvement unless and until it is determined to be authorized by a final order or judgment of a court of competent jurisdiction. The city is authorized to bring suit against the state for the purpose of securing such an order or adjudication, which suit shall have priority over all other civil matters. Service of process shall be made upon the Executive Officer of the State Lands Commission and the Attorney General, and the Attorney General shall defend the state in such suit. If judgment be given against the state in the suit, no costs shall be recovered against it. (l) On June 30, 1978, and on June 30 of every third fiscal year thereafter, that portion of the city tideland trust revenues in excess of two hundred fifty thousand dollars ($250,000) remaining after deducting current and accrued operating costs and expenditures directly related to the operation or maintenance of tideland trust activities shall be deemed excess revenues. However, any funds deposited in a reserve fund for future capital expenditures or any funds used to retire bond issues for the improvement or operation of the granted lands shall not be deemed excess revenue. Capital improvements of the granted lands for purposes authorized by this act, including improvements on lands transferred to the state pursuant to subdivision (h) and paid for by the city, may be considered as expenditures for the purpose of determining excess revenues; provided, however, that if made after the effective date of this act they may be so considered only if made in accordance with subdivision (k). The excess revenue, as determined pursuant to this subdivision, shall be allocated as follows: 85 percent shall be transmitted to the Treasurer for deposit in the General Fund in the State Treasury, and 15 percent shall be retained by the city for deposit in the trust fund for use in any purpose authorized by subdivision (j) of this section. (m) At the request of the city, the State Lands Commission shall grant an extension of time, not to exceed 90 calendar days, for filing any report or statement required by this act, that was not filed due to mistake or inadvertence. (n) If the city fails or refuse to file with the State Lands Commission any report, statement, or document required by any provision of this act, or any extension period granted pursuant to this act, or fails or refuses to carry out the terms of this act, the Attorney General shall, upon the request of the State Lands Commission, bring such judicial proceedings for correction and enforcement as are appropriate and shall act to protect any improvements to, or assets situated upon, the granted lands or diverted therefrom. The State Lands Commission shall notify the Chief Clerk of the Assembly and the Secretary of the Senate within 30 days from the date of the occurrence of the failure or refusal and of actions taken as a result thereof. (o) The State Lands Commission shall, from time to time, recommend to the Legislature such amendments as it may determine to be necessary in the terms and conditions of this act. (p) The State Lands Commission shall, from time to time, institute a formal inquiry to determine that the terms and conditions of this act, and amendments thereto, have been complied with in good faith. (q) If the commission determines any transaction or condition reported to the commission pursuant to this act to be in probable conflict with this act or with any other provision of law, the Attorney General shall, upon formal request of the State Lands Commission made only after a noticed public hearing at which the city has been given an opportunity to express fully any disagreement with the commission's findings or to describe any extenuating circumstances causing the violation, bring an action in the Superior Court in the County of Orange to declare that the grant under which the city holds the tidelands and submerged lands is revoked for gross and willful violation of this act or any other provision of law or to compel compliance with the requirements of this act and any other provision of law. (r) The city shall cause to be made and filed annually with the State Lands Commission a detailed statement of receipts and expenditures by it of all rents, revenues, issues, and profits in any manner arising after the effective date of this act from the granted lands or any improvements, betterments, or structures thereon. (s) The Department of Fish and Game shall establish the funds and make the deposits required by subdivision (i) of this section and shall prepare and file statements required by subdivision (r) as to any lands transferred to the state pursuant to subdivision (h). (t) The provisions of Chapter 2 (commencing with Section 6701) of Part 2 of Division 6 of the Public Resources Code shall be applicable to this section. The provisions of Section 6359 of the Public Resources Code shall not be applicable to this section. (u) Notwithstanding any other provision of this act, the city shall pay to the state all revenues received from the production of oil, gas, and other minerals derived from or attributable to the real property described in Section 6 of this act and the real property acquired by the city pursuant to subdivision (a) of Section 2 of this act. Whenever practicable, the city shall obtain the mineral rights in real property acquired pursuant to subdivision (a) of Section 2 of this act. SEC. 269. Section 3 of Chapter 1523 of the Statutes of 1985 is repealed. SEC. 270. Section 2 of Chapter 1495 of the Statutes of 1988 is amended to read: Sec. 2. There is hereby created a pilot project on direct access contractor license verification systems. The goals of the pilot project shall be to determine the most appropriate method of providing cities, counties, or cities and counties with direct access to the licensure information, including bonding, maintained by the Contractors' State License Board and the most appropriate method of obtaining and providing timely and accurate workers' compensation insurance information on contractors to cities, counties, and cities and counties. The project shall be conducted in not less than six cities, counties, or cities and counties, or other entities, as determined by the Registrar of Contractors, and upon assent thereto by those cities, counties, or cities and counties, or other entities. The Contractors' State License Board shall provide each participant in the pilot project with the capability to obtain verification of proper licensure, bonding, and workers' compensation insurance of contractors engaged in projects requiring licensure through direct access, to computerized contractor license records maintained by the Contractors' State License Board. The Contractors' State License Board shall consider methods of access including magnetized stripe cards, bar coded cards, microchip-based cards, related hardware and software, and telecommunication means. Their initial analysis shall include technical feasibility, operational effectiveness, maintenance, risk factors, and cost or benefit of these media. This analysis shall be done in coordination with the office of information technology of the Department of Finance. Risk factors shall include security information in accordance with the Records Management Act, the Information Practices Act, and state electronic data processing policies. The pilot project shall be in operation no less than one year in each of the participating entities. SEC. 271. Section 1 of Chapter 1350 of the Statutes of 1989 is amended to read: Section 1. (a) The Legislature finds and declares, based on adult correctional studies and experiences, the following: (1) Maintaining a prisoner's family ties has a positive effect on the recidivism rate for offenders. (2) Enhancing visitor services increases the frequency and quality of visits and, in the Department of Corrections, has demonstrated that violent behavior in institutions is thereby decreased. (3) Enhancing visitor services provides prisoners with strong family support, which can have a stabilizing influence on the institution benefiting the prisoners, the staff, and the community. (b) The Legislature further finds and declares that the location of the Northern California Youth Center and lack of services to assist visitors impedes visiting. (c) The Department of the Youth Authority shall establish a visitor center at the Northern California Youth Center which visitor center shall provide, at a minimum, each of the following services to visitors, as needed: (1) Outreach programs to wards' families. (2) Assistance to visitors with transportation between public transit terminals in the Stockton area and the Northern California Youth Center. (3) Crisis intervention. (4) Information on visiting regulations and processes. (5) Referral to other agencies and services. (6) Parent education. (7) A sheltered area for visitors who are waiting before or after visits. In addition, the visitor center staff shall maintain working relations with the local community and institution. (d) The visitor center may also provide child care services for the children of visitors. (e) The goals of the Department of the Youth Authority in operating a visitor center shall be to achieve all of the following: (1) Enhancing visitor services in order to provide wards with strong family support, which support can have a stabilizing influence on the institution and enhance the ward's parole performance. (2) Improvement of ward institutional performance and behavior. (f) For purposes of program evaluation, records shall be maintained of wards receiving visits and families receiving services. The wards shall be traced through their institutional and parole experiences. Their success and failure rate shall be compared to that of wards who did not receive visits or services. (g) The department shall contract with a nonprofit agency to provide any of the services at the visitor center which the department is unable to provide. (h) The establishment of a visitor center at the Northern California Youth Center is subject to the availability of funds provided to the department for purposes of this act through the annual Budget Act. SEC. 272. Section 1 of Chapter 674 of the Statutes of 1990 is repealed. SEC. 273. Section 1 of Chapter 1621 of the Statutes of 1990 is amended to read: Section 1. The Legislature finds and declares the following: (a) Federal programs in such areas as transportation, housing, space, and defense generate a major portion of the state's employment and are vital to those areas of our economy. (b) California received $103 billion in federal expenditures in 1988, over $40 billion more than the second place State of New York. (c) After increasing dramatically between 1979 and 1985, new authority for defense portions of federal spending has fallen in inflation-adjusted terms for five consecutive years. The Commission on State Finance projects that defense expenditures entering California during 1990 will be down for the second consecutive year, with an anticipated inflation adjusted loss of 5 percent. Shifts in United States Department of Defense policies may further accelerate that loss. Continued slowing in defense spending will adversely affect firms in California's high-technology and aerospace industries, including aircraft manufacturing, space, electronics, and communications equipment. (d) The impacts of these changing expenditure patterns will be felt particularly in the state's educational establishments. According to recent estimates by the Commission on State Finance, the University of California was the sixth largest recipient of Department of Defense contracts in 1988, receiving $1.3 billion in prime awards. (e) The development of statewide policies mitigating the need for major economic adjustment and conversion efforts will require close private and public sector cooperation. To assist local governments, educational institutions, businesses, and individuals to understand and evaluate the impact of these shifting patterns on their budgeting, training needs, competitive possibilities, and job prospects, there is need to reauthorize in a modified form the current responsibility of the Commission on State Finance to develop and maintain an economic model capable of estimating the impact of federal expenditures on the state's economy and employment. The commission should: (1) Develop strategies to maximize dissemination of Commission on State Finance federal expenditure data for the benefit of local and regional planners, state and local job training agencies, and economic development groups. (2) Modify the content and format of the Commission on State Finance report, "Impact of Federal Expenditures on the Economy," to provide macro economic data as well as microanalysis of specific topics of governmental finance where federal spending plays a significant role, such as in infrastructure finance, transportation, education, and health and welfare. SEC. 274. Section 2 of Chapter 1012 of the Statutes of 1993 is repealed. SEC. 274.5. Resolution Chapter 100 of the Statutes of 1995 is repealed. SEC. 275. Section 2 of Chapter 881 of the Statutes of 1997 is amended to read: Sec. 2. (a) The sum of four million dollars ($4,000,000) appropriated as Item 2240-104-0927 in the Budget Act of 1997, shall be allocated for the following purposes: (1) Three million dollars ($3,000,000) appropriated as Item 2240-104-0927 in the Budget Act of 1997, shall be allocated to the Farmworker Housing Grant Fund for the purposes set forth in Section 50517.5 of the Health and Safety Code. Sponsors utilizing funds appropriated pursuant to this act shall consider using participants in job training, vocational education, and welfare-to-work programs in development projects. (2) One million dollars ($1,000,000) appropriated as Item 2240-104-0927 in the Budget Act of 1997, shall be allocated to the Farmworker Housing Grant Fund for two demonstration programs that finance the acquisition, construction, or rehabilitation of housing that provides farmworkers with affordable, durable, low-maintenance housing options. The department may waive any requirements of Section 50517.5 of the Health and Safety Code and any regulations promulgated thereunder that are inconsistent with prompt and effective implementation of the demonstration programs described in this item. The demonstration programs shall be as follows: (A) A program establishing prototype portable housing units that incorporate design research and are factory constructed and that will be sited in or adjacent to a migrant farmworker community facility in which job, housing, child care, health, and educational referrals are provided. (B) A program containing other innovative models that are responsive to local needs, that bring together stakeholders to formulate appropriate local responses, that leverage grower and other private sector assistance, and that demonstrate the feasibility of innovative approaches to farmworker housing, including, but not limited to, dormitory and barracks-style housing, motel conversions, fast-track local permit approval of farmworker housing proposals, homeownership assistance and housing with scattered site management. (C) The department shall submit a report on or before January 1, 1999, and biennially thereafter on or before each January 1 for which a report is due, to the Legislature on the administration and implementation of the demonstration programs. The report shall include, but not be limited to, the following information: (i) The number and type of housing units. (ii) The cost of the housing units. (iii) The department's administrative costs and budget for implementation and management. (iv) Details of the implementation and success of the various components of the projects. (b) The department shall use funds appropriated for purposes of subparagraphs (A) and (B) to maximize other local, state, federal, or private funds and may waive the requirement that the sponsor make a contribution if the department determines that the sponsor does not have the capability to make the contribution. (c) Of the funds appropriated for the purpose authorized in paragraphs (1) and (2) of subdivision (a), no more than two hundred seventy thousand dollars ($270,000) may be expended in any fiscal year for costs of administering the programs authorized thereby. SEC. 276. 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 that state and local agencies may be relieved of the burden of preparing unessential reports at the earliest possible time, it is necessary that this act take effect immediately.