BILL NUMBER: SB 434 CHAPTERED
BILL TEXT
CHAPTER 876
FILED WITH SECRETARY OF STATE OCTOBER 12, 2003
APPROVED BY GOVERNOR OCTOBER 12, 2003
PASSED THE SENATE SEPTEMBER 9, 2003
PASSED THE ASSEMBLY SEPTEMBER 5, 2003
AMENDED IN ASSEMBLY SEPTEMBER 2, 2003
AMENDED IN ASSEMBLY AUGUST 18, 2003
AMENDED IN SENATE JUNE 4, 2003
AMENDED IN SENATE MAY 12, 2003
AMENDED IN SENATE MARCH 26, 2003
INTRODUCED BY Senator Escutia
(Coauthor: Senator Burton)
(Coauthor: Assembly Member Steinberg)
FEBRUARY 20, 2003
An act to amend Sections 25533, 25533.5, and 29544 of the
Corporations Code, to amend Sections 3309.5, 11180.5, 11181, 11183,
11184, 11185, 11186, 11187, and 11188 of, and to add Article 10
(commencing with Section 12657) to Chapter 6 of Part 2 of Division 3
of Title 2 of, the Government Code, and to add Section 131 to the
Penal Code, relating to investigations.
LEGISLATIVE COUNSEL'S DIGEST
SB 434, Escutia. State departments: investigations and hearings.
(1) Existing law, the Corporate Securities Law of 1968 and the
California Commodity Law of 1990, authorize the Commissioner of
Corporations to bring an action or conduct a public or private
investigation when it appears any person has violated or is about to
violate these laws. Existing law authorizes the commissioner to
refer any evidence showing a violation of these laws to the
appropriate district attorney for possible prosecution. Existing law
requires the commissioner to bring a civil action in superior court
to recover a civil fine imposed against a person for violation of
these laws.
This bill would additionally authorize the Attorney General to
bring an action or conduct an investigation when it appears any
person has violated or is about to violate these laws. The bill
would also authorize the Attorney General to bring a civil action in
superior court to recover a civil fine imposed against a person for
violation of these laws. Because the bill would make specified
activities associated with investigations under these laws a crime,
it would impose a state-mandated local program.
(2) Existing law provides that, at the request of a prosecuting
attorney or the Attorney General, any state agency, bureau, or
department may assist in conducting an investigation of an unlawful
activity that involves matters within or reasonably related to the
jurisdiction of the agency, bureau, or department.
This bill would provide that, at the request of a prosecuting
attorney or the Attorney General, any agency, bureau, or department
of this state, any other state, or the United States may assist in
conducting an investigation of an unlawful activity that involves
matters within or reasonably related to the jurisdiction of the
agency, bureau, or department. It would authorize the prosecuting
attorney or the Attorney General to disclose documents or information
acquired pursuant to the investigation to another agency, bureau, or
department if that entity agrees to maintain the confidentiality of
the information. This bill would provide that a department head may
divulge specified information or evidence discovered in the
investigation to the Attorney General or to any prosecuting attorney
of this state, any other state, or the United States who has
responsibility for investigating the unlawful activity, and may
present evidence related to the investigation to a court or at an
administrative hearing. The bill would state that the Legislature
declares that these provisions are declaratory of existing law.
(3) Existing law authorizes the head of a state department in
connection with investigations of an unlawful activity to inspect
books and records and to issue subpoenas for the attendance of
witnesses and the production of papers, books, accounts, documents,
and testimony and to promulgate interrogatories pertinent to the
investigation.
This bill would provide that the department head may copy these
books and records as well as other specified materials and issue a
subpoena for the production of any other "writing," as defined. It
would specify procedures for the appearance of witnesses when the
witness named in a subpoena is not a natural person and authorize
specified procedures for securing compliance with a subpoena.
(4) Under existing law, except in a report to the head of a
department or when testifying or reporting to a prosecutor, any state
officer who divulges information acquired from the private records
of a person under the provisions in paragraph (1) or (2) above, is
guilty of a misdemeanor and disqualified from office.
This bill would expand the materials protected from being
unlawfully divulged, thus imposing a state-mandated local program by
increasing the scope of an existing crime.
(5) This bill would require that the investigation and enforcement
of its provisions by the Attorney General and the commissioner be
accomplished without duplication of effort. The bill would provide
that the Attorney General shall use existing resources in exercising
this authority.
(6) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25533 of the Corporations Code is amended to
read:
25533. The commissioner may refer any evidence available
concerning any violation of this law or of any rule or order
hereunder to the Attorney General or the district attorney of the
county in which the violation occurred, who may, with or without this
type of a reference, institute appropriate criminal proceedings
under this law. The commissioner and his or her counsel, deputies,
or assistants may, upon request of the Attorney General or the
district attorney, assist the prosecuting attorney in presenting the
law or facts at the trial.
SEC. 2. Section 25533.5 of the Corporations Code is amended to
read:
25533.5. The commissioner shall send a copy of a desist and
refrain order issued under this law to the Attorney General and the
district attorney of the county in which the person who is the
subject of the order resides or maintains a principal place of
business. There shall be no liability on the part of, and no cause
of action of any nature shall arise against, the State of California,
the department and its employees, the commissioner, the members of
the commissioner's staff, or the commissioner's authorized
representatives for the failure to provide to the Attorney General or
the district attorney a copy of the order as required by this
section.
SEC. 3. Section 29544 of the Corporations Code is amended to read:
29544. (a) Any person who willfully violates any provision of
this law, or who willfully violates any rule or order under this law,
shall be liable for a civil penalty not to exceed twenty-five
thousand dollars ($25,000) for each violation, which shall be
assessed and recovered in a civil action brought in the name of the
people of the State of California by the commissioner in any court of
competent jurisdiction.
The penalty collected shall be paid to the State Corporations Fund
to be used for the support of this division.
(b) As applied to the penalties for acts in violation of this
division, the remedies provided by this section and by other sections
of this division are not exclusive, and may be sought and employed
in any combination to enforce this division.
(c) No action shall be maintained to enforce any liability created
under subdivision (a) unless brought before the expiration of four
years after the act or transaction constituting the violation.
SEC. 4. Section 3309.5 of the Government Code is amended to read:
3309.5. (a) It shall be unlawful for any public safety department
to deny or refuse to any public safety officer the rights and
protections guaranteed to him or her by this chapter.
(b) Nothing in subdivision (h) of Section 11181 shall be construed
to affect the rights and protections afforded to state public safety
officers under this chapter or under Section 832.5 of the Penal
Code.
(c) The superior court shall have initial jurisdiction over any
proceeding brought by any public safety officer against any public
safety department for alleged violations of this chapter.
(d) (1) In any case where the superior court finds that a public
safety department has violated any of the provisions of this chapter,
the court shall render appropriate injunctive or other extraordinary
relief to remedy the violation and to prevent future violations of a
like or similar nature, including, but not limited to, the granting
of a temporary restraining order, preliminary, or permanent
injunction prohibiting the public safety department from taking any
punitive action against the public safety officer.
(2) If the court finds that a bad faith or frivolous action or a
filing for an improper purpose has been brought pursuant to this
chapter, the court may order sanctions against the party filing the
action, the parties attorney, or both, pursuant to Sections 128.6 and
128.7 of the Code of Civil Procedure. Those sanctions may include,
but not be limited to, reasonable expenses, including attorney's
fees, incurred by a public safety department, as the court deems
appropriate. Nothing in this paragraph is intended to subject
actions or filings under this section to rules or standards that are
different from those applicable to other civil actions or filings
subject to Section 128.6 or 128.7 of the Code of Civil Procedure.
(e) In addition to the extraordinary relief afforded by this
chapter, upon a finding by a superior court that a public safety
department, its employees, agents, or assigns, with respect to acts
taken within the scope of employment, maliciously violated any
provision of this chapter with the intent to injure the public safety
officer, the public safety department shall, for each and every
violation, be liable for a civil penalty not to exceed twenty-five
thousand dollars ($25,000) to be awarded to the public safety officer
whose right or protection was denied and for reasonable attorney's
fees as may be determined by the court. If the court so finds, and
there is sufficient evidence to establish actual damages suffered by
the officer whose right or protection was denied, the public safety
department shall also be liable for the amount of the actual damages.
Notwithstanding these provisions, a public safety department may
not be required to indemnify a contractor for the contractor's
liability pursuant to this subdivision if there is, within the
contract between the public safety department and the contractor, a
"hold harmless" or similar provision that protects the public safety
department from liability for the actions of the contractor. An
individual shall not be liable for any act for which a public safety
department is liable under this section.
SEC. 5. Section 11180.5 of the Government Code is amended to read:
11180.5. At the request of a prosecuting attorney or the Attorney
General, any agency, bureau, or department of this state, any other
state, or the United States may assist in conducting an investigation
of any unlawful activity that involves matters within or reasonably
related to the jurisdiction of the agency, bureau, or department.
This investigation may be made in cooperation with the prosecuting
attorney or the Attorney General. The prosecuting attorney or the
Attorney General may disclose documents or information acquired
pursuant to the investigation to another agency, bureau, or
department if the agency, bureau, or department agrees to maintain
the confidentiality of the documents or information received to the
extent required by this article.
SEC. 6. Section 11181 of the Government Code is amended to read:
11181. In connection with any investigation or action authorized
by this article, the department head may do any of the following:
(a) Inspect and copy books, records, and other items described in
subdivision (e).
(b) Hear complaints.
(c) Administer oaths.
(d) Certify to all official acts.
(e) Issue subpoenas for the attendance of witnesses and the
production of papers, books, accounts, documents, any writing as
defined by Section 250 of the Evidence Code, tangible things, and
testimony pertinent or material to any inquiry, investigation,
hearing, proceeding, or action conducted in any part of the state.
(f) Promulgate interrogatories pertinent or material to any
inquiry, investigation, hearing, proceeding, or action.
(g) Divulge information or evidence related to the investigation
of unlawful activity discovered from interrogatory answers, papers,
books, accounts, documents, and any other item described in
subdivision (e), or testimony, to the Attorney General or to any
prosecuting attorney of this state, any other state, or the United
States who has a responsibility for investigating the unlawful
activity investigated or discovered, or to any governmental agency
responsible for enforcing laws related to the unlawful activity
investigated or discovered, if the Attorney General, prosecuting
attorney, or agency to which the information or evidence is divulged
agrees to maintain the confidentiality of the information received to
the extent required by this article.
(h) Present information or evidence obtained or developed from
the investigation of unlawful activity to a court or at an
administrative hearing in connection with any action or proceeding.
SEC. 7. Section 11183 of the Government Code is amended to read:
11183. Except in a report to the head of the department or when
called upon to testify in any court or proceeding at law or as
provided in Section 11180.5 or subdivisions (g) and (h) of Section
11181, an officer shall not divulge any information or evidence
acquired by the officer from the interrogatory answers or subpoenaed
private books, documents, papers, or other items described in
subdivision (e) of Section 11181 of any person while acting or
claiming to act under any authorization pursuant to this article, in
respect to the confidential or private transactions, property or
business of any person. An officer who divulges information or
evidence in violation of this section is guilty of a misdemeanor and
disqualified from acting in any official capacity in the department.
SEC. 8. Section 11184 of the Government Code is amended to read:
11184. (a) In any hearing in any part of the state or in any
investigation conducted under this article, the head of the
department shall issue process and subpoenas in a manner consistent
with the California Constitution and the United States Constitution,
and the process and subpoenas shall be served in the same manner as
provided for the service of a summons as described in Chapter 4
(commencing with Section 413.10) of Title 5 of Part 2 of the Code of
Civil Procedure. Service of process and subpoenas may be effectuated
by any person designated for that purpose by the head of the
department. The person serving any process or a subpoena may receive
compensation as is allowed by the head of the department not to
exceed the fees prescribed by law for similar service. This
compensation shall be paid in the manner provided in this article for
the payment of the fees of witnesses.
(b) If the subpoena requires oral testimony from a witness who is
not a natural person, the subpoena shall describe, with reasonable
particularity, the matters on which examination is requested. In
that event, the subpoenaed witness shall designate and produce at the
hearing those natural persons who are most qualified to testify on
behalf of the subpoenaed witness about those matters to the extent of
any information known or reasonably available to the subpoenaed
witness. The subpoena shall notify the witness named in the subpoena
of its duty to designate and produce natural persons to testify as
described in this subdivision.
SEC. 9. Section 11185 of the Government Code is amended to read:
11185. (a) If the witness named in the subpoena is a natural
person, the person is not obliged to attend as a witness in any
matter under this article at a place out of the county in which he or
she resides, unless the distance is less than 75 miles from his or
her place of residence.
(b) If the witness named in the subpoena is not a natural person
and has an office within this state, the subpoena may provide that
the testimony of the persons designated to appear on behalf of the
witness, as described in subdivision (b) of Section 11184, shall be
given in the county in which the witness named in the subpoena has
its principal executive or business office in this state or within
150 miles of that location.
(c) If the witness conducts business in this state but does not
reside or have an office within this state, the subpoena may provide
that oral testimony shall be given at a location that is within 75
miles of the residence or executive or business office of the
witness.
(d) If the witness does not reside, have an office, or conduct
business in this state, the testimony shall be given and documents
and other items produced at a location set by a court.
(e) The department head may require any person who resides or
conducts business in this state to produce the documents and other
items described in subdivision (e) of Section 11181 at a location in
the county in which the department head or the Attorney General
maintains an office.
(f) Nothing in this section prevents the department head and
subpoenaed person from agreeing that testimony may be given or
production made at any location.
SEC. 10. Section 11186 of the Government Code is amended to read:
11186. The superior court in the county in which any hearing is
held or any investigation is conducted under the direction of the
head of a department or the county in which testimony is designated
to be given or documents or other items are designated to be
produced, has jurisdiction to compel the attendance of witnesses, the
giving of testimony, the answering without objection of
interrogatories, and the production, inspection, and copying of
papers, books, accounts, documents, and other items described in
subdivision (e) of Section 11181 as required by any subpoena issued
by the department head.
SEC. 11. Section 11187 of the Government Code is amended to read:
11187. (a) Except as provided in subdivision (c), if any witness
refuses to answer any interrogatory or to attend or testify or
produce or permit the inspection or copying of any papers or other
items described in subdivision (e) of Section 11181 required by
subpoena, the head of the department may petition the superior court
in the county in which the hearing or investigation is pending or the
county in which testimony is designated in the subpoena to be given
or documents or other items are designated in the subpoena to be
produced, for an order compelling the person to answer the
interrogatories or to attend and testify or produce and permit the
inspection and copying of the papers or other items required by the
subpoena before the officer named in the subpoena.
(b) The petition shall set forth all of the following:
(1) That due notice of the time and place for answering the
interrogatories or testifying or the attendance of the person or the
production of the papers or other items described in subdivision (e)
of Section 11181 was given.
(2) That the person was subpoenaed or required to answer
interrogatories in the manner prescribed in this article.
(3) That the person failed and refused to answer the
interrogatories or to attend or testify or produce or permit the
inspection or copying of the papers or other items required by
subpoena before the officer in the cause or proceeding named in the
subpoena, or has refused to answer questions propounded to him or her
in the course of the investigation or hearing.
(c) If the witness named in the subpoena does not reside or
conduct business in this state, the department head may seek to
compel the witness' testimony and production, inspection, and copying
of documents or other items described in subdivision (e) of Section
11181 in the manner provided for the enforcement of a deposition
notice to a nonparty as described in Section 2026 or 2027 of the Code
of Civil Procedure or in any other manner authorized by any law.
(d) If any witness objects and based on that objection refuses to
answer any interrogatory or to attend or testify or produce or permit
the inspection or copying of any papers or other items described in
subdivision (e) of Section 11181 as required by a subpoena, the
witness shall state the objection and the validity of the objection
shall be determined exclusively in a proceeding brought by the head
of the department to compel compliance as provided in this section.
SEC. 12. Section 11188 of the Government Code is amended to read:
11188. Upon the filing of the petition the court shall enter an
order directing the person to appear before the court at a specified
time and place and then and there show cause why he or she has not
attended, testified, answered interrogatories, or produced or
permitted the inspection or copying of the papers or other items
described in subdivision (e) of Section 11181 as required. A copy of
the order shall be served upon him or her in the manner provided for
the service of a summons described in Chapter 4 (commencing with
Section 413.10) of Title 5 of Part 2 of the Code of Civil Procedure.
If it appears to the court that the subpoena was regularly issued,
or the interrogatories were regularly promulgated, by the head of the
department, the court shall enter an order that the person appear
before the officer named in the subpoena at the time and place fixed
in the order and testify or produce and permit the inspection and
copying of the required papers or other items described in
subdivision (e) of Section 11181 as required or answer the
interrogatories without objection. At the request of the department
head, the court may issue any additional order to aid the
implementation of the order enforcing compliance with the subpoena,
including the issuance of a commission or letters rogatory in the
manner provided for the enforcement of a deposition notice to a
nonparty as described in Section 2026 or 2027 of the Code of Civil
Procedure. Upon failure to obey the order, the person shall be dealt
with as for contempt of court.
SEC. 13. Article 10 (commencing with Section 12657) is added to
Chapter 6 of Part 2 of Division 3 of Title 2 of the Government Code,
to read:
Article 10. Securities and Commodities
12657. For purposes of this article, the following terms shall
have the following meanings:
(a) "Securities law" shall mean the Corporate Securities Law of
1968 (Division 1 (commencing with Section 25000) of Title 4 of the
Corporations Code) and any other rule or order issued by the
Commissioner of Corporations under this law.
(b) "Commodities law" shall mean the California Commodity Law of
1990 (Division 4.5 (commencing with Section 29500) of Title 4 of the
Corporations Code) and any other rule or order issued by the
Commissioner of Corporations under this law.
12658. (a) Whenever it appears to the Attorney General that any
person has engaged or is about to engage in any act or practice
constituting a violation of the securities law or the commodities
law, the Attorney General may, in his or her discretion, bring an
action in the name of the people of the State of California in the
superior court to enjoin the acts or practices or to enforce
compliance with the securities law or the commodities law. Upon a
proper showing, a permanent or preliminary injunction, restraining
order, or writ of mandate shall be granted and a receiver, monitor,
conservator, or other designated fiduciary or officer of the court
may be appointed for the defendant or the defendant's assets, or any
other ancillary relief may be granted as appropriate. A receiver,
monitor, conservator, or other designated fiduciary or officer of the
court appointed by the superior court pursuant to this section may,
with the approval of the court, exercise any or all of the powers of
the defendant's officers, directors, partners, trustees or persons
who exercise similar powers and perform similar duties, including the
filing of a petition for bankruptcy. No action at law or in equity
may be maintained by any party against the Attorney General, or a
receiver, monitor, conservator, or other designated fiduciary or
officer of the court, by reason of their exercising these powers or
performing these duties pursuant to the order of, or with the
approval of, the superior court.
(b) If the Attorney General determines it is in the public
interest, the Attorney General may include in any action authorized
by subdivision (a) a claim for ancillary relief, including, but not
limited to, a claim for restitution or disgorgement or damages on
behalf of the persons injured by the act or practice constituting the
subject matter of the action, and the court shall have jurisdiction
to award additional relief.
(c) In any case in which a defendant is ordered by the court to
pay restitution to a victim, the court may in its order require the
payment as a money judgment, which shall be enforceable by a victim
as if the restitution order were a separate civil judgment, and
enforceable in the same manner as is provided for the enforcement of
any other money judgment. Any order issued under this subdivision
shall contain provisions that are designed to achieve a fair and
orderly satisfaction of the judgment.
12659. (a) The Attorney General, in his or her discretion, (1)
may make public or private investigations within or outside of this
state that the Attorney General deems necessary to determine whether
any person has violated or is about to violate the securities law or
the commodities law or to aid in the enforcement of these laws or in
the prescribing of rules and forms by the Commissioner of
Corporations under these laws, and (2) may publish information
concerning any violation of the securities law or the commodities
law.
(b) In making any investigation authorized by subdivision (a), the
Attorney General may, for a reasonable time not exceeding 30 days,
take possession of the books, records, accounts, and other papers
pertaining to the business of any broker-dealer or investment adviser
and place a keeper in exclusive charge of them in the place where
they are usually kept. During this possession no person shall remove
or attempt to remove any of the books, records, accounts, or other
papers except pursuant to a court order or with the consent of the
Attorney General, but the directors, officers, partners, and
employees of the broker-dealer or investment adviser may examine
them, and employees shall be permitted to make entries therein
reflecting current transactions.
(c) For the purpose of any investigation or proceeding under the
securities law or the commodities law, the Attorney General or any
officer designated by him or her may administer oaths and
affirmations, subpoena witnesses, compel their attendance, take
evidence, and require the production of books, papers,
correspondence, memoranda, agreements, or other documents or records
that the Attorney General deems relevant or material to the inquiry.
(d) In case of contumacy by, or refusal to obey a subpoena issued
to, any person, the superior court, upon application by the Attorney
General, may issue to the person an order requiring him or her to
appear before the Attorney General, or the officer designated by the
Attorney General, there to produce documentary evidence, if so
ordered, or to give evidence touching the matter under investigation
or in question. Failure to obey the order of the court may be
punished by the court as a contempt.
(e) No person is excused from attending and testifying or from
producing any document or record before the Attorney General, or in
obedience to the subpoena of the Attorney General or any officer
designated by him or her, or in any proceeding instituted by the
Attorney General, on the ground that the testimony or evidence,
documentary or otherwise, required of him or her may tend to
incriminate him or her or subject him or her to a penalty or
forfeiture, but no individual may be prosecuted or subjected to any
penalty or forfeiture for or on account of any transaction, matter,
or thing concerning which he or she is compelled, after validly
claiming his or her privilege against self-incrimination, to testify
or produce evidence, documentary or otherwise, except that an
individual testifying is not exempt from prosecution and punishment
for perjury or contempt committed in testifying.
12660. (a) Any person who violates any provision of the
securities law or the commodities law shall be liable for a civil
penalty not to exceed twenty-five thousand dollars ($25,000) for each
violation, which shall be assessed and recovered in a civil action
brought in the name of the people of the State of California by the
Attorney General in any court of competent jurisdiction.
(b) As applied to the penalties for acts in violation of the
securities law or the commodities law, the remedies provided by this
section and by other sections of this article are not exclusive, and
may be sought and employed in any combination to enforce the
provisions of this article.
(c) No action shall be maintained to enforce any liability created
under subdivision (a) unless brought before the expiration of four
years after the act or transaction constituting the violation.
12661. (a) The Attorney General may take any actions as are
authorized by Section 6d of the federal Commodity Exchange Act (7
U.S.C. Sec. 1 et seq.) as amended before or after the effective date
of this section.
(b) Nothing in this article shall be construed as a limitation on
the powers of the Attorney General under this division or any other
law administered by the Attorney General.
SEC. 14. Section 131 is added to the Penal Code, to read:
131. Every person in any matter under investigation for a
violation of the Corporate Securities Law of 1968 (Part 1 (commencing
with Section 25000) of Division 1 of Title 4 of the Corporations
Code), the California Commodity Law of 1990 (Chapter 1 (commencing
with Section 29500) of Division 4.5 of Title 4 of the Corporations
Code), Section 16755 of the Business and Professions Code, or in
connection with an investigation conducted by the head of a
department of the State of California relating to the business
activities and subjects under the jurisdiction of the department, who
knowingly and willfully falsifies, misrepresents, or conceals a
material fact or makes any materially false, fictitious, misleading,
or fraudulent statement or representation, and any person who
knowingly and willfully procures or causes another to violate this
section, is guilty of a misdemeanor punishable by imprisonment in a
county jail not exceeding one year, or by a fine not exceeding
twenty-five thousand dollars ($25,000), or by both that imprisonment
and fine for each violation of this section. This section does not
apply to conduct charged as a violation of Section 118 of this code.
SEC. 15. The addition of Article 10 (commencing with Section
12657) of Chapter 6 of Part 2 of Division 3 of Title 2 of the
Government Code is intended to provide the Attorney General with
concurrent enforcement powers that the Commissioner of Corporations
is authorized to use to enforce current securities and commodities
laws. This concurrent power is designed to enhance accountability
and deter fraud in the state's investment marketplace.
SEC. 16. The investigation and enforcement of the provisions
contained in Sections 1 to 15, inclusive, of this act shall be
accomplished without any
duplication of effort on the part of the Attorney General and the
Commissioner of Corporations. To the extent that the Attorney
General exercises this authority, it shall be done using existing
resources, and no future budget augmentations shall be made for this
purpose.
SEC. 17. The amendment of Sections 11180.5 and 11181 of the
Government Code made by this act does not constitute a change in, but
is declaratory of, existing law.
SEC. 18. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.