BILL NUMBER: AB 139	CHAPTERED
	BILL TEXT

	CHAPTER  74
	FILED WITH SECRETARY OF STATE  JULY 19, 2005
	APPROVED BY GOVERNOR  JULY 19, 2005
	PASSED THE SENATE  JULY 7, 2005
	PASSED THE ASSEMBLY  JULY 7, 2005
	AMENDED IN SENATE  JULY 6, 2005

INTRODUCED BY   Committee on Budget (Laird (Chair), Arambula,
Bermudez, Chan, Coto, De La Torre, Dymally, Evans, Goldberg, Hancock,
Montanez, Mullin, Nava, Parra, Pavley, and Wolk)

                        JANUARY 13, 2005

   An act to amend Sections 1721.5, 2154.4, 2499, 2529.5, 2534, 2568,
2687, 2894, 2981, 3455, 3520, 3771, 4974, 4984.6, 4994, 5683,
6980.81, 6980.82, 7599.71, 7599.74, 7886, 9872, and 17206 of the
Business and Professions Code, to amend Section 1789.30 of the Civil
Code, to repeal Article 13 (commencing with Section 14095) of Chapter
1 of Part 5 of Division 3 of Title 1 of the Corporations Code, to
add Section 4101.3 to the Food and Agricultural Code, to amend
Sections 7076, 11011, 11044, 11260, 14612.2, 14670, 15849.6, 15863,
16427, 22877, 68085, 68085.5, 69926.5, and 71386 of, to amend and
repeal Sections 11139.8 and 14840 of, and to add Sections 9147.5,
11544, 12587.1, 14982, 15849.7, 68085.6, 68085.7, and 68085.8 to, the
Government Code, to amend Sections 50517.10, 50601, 50603, 50710.1,
and 53533 of the Health and Safety Code, to amend Section 96.7 of the
Labor Code, to amend Section 1401 of, to amend and repeal Section
999.7 of, and to add Sections 1402 and 1403 to, the Military and
Veterans Code, to amend Section 1214.1 of the Penal Code, to amend
Section 6611 of, to amend and repeal Sections 10115.5, 10116, and
10359 of, and to add Section 10111 to, the Public Contract Code, to
add Section 42102 to the Public Resources Code, to amend Section
5003.2 of the Public Utilities Code, to amend Sections 97.76, 6479.3,
19183, and 19701 of, and to add Sections 18631.7 and 19523.5 to, the
Revenue and Taxation Code, to add Section 9619 to the Unemployment
Insurance Code, to add Chapter 3.2 (commencing with Section 18220) to
Part 6 of Division 9 of the Welfare and Institutions Code, and to
amend Section 16 of Chapter 876 of the Statutes of 2003, relating to
state government, making an appropriation therefor, and declaring the
urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 139, Committee on Budget  State government.
   (1) Existing law creates various boards and other entities under
the jurisdiction of the Department of Consumer Affairs with certain
licensing and regulatory functions relative to various professions
and vocations. Existing law, with respect to the funds created for
certain of these entities, provides that the money in those funds is
continuously appropriated for particular purposes.
   This bill would delete the continuous appropriations applicable to
certain funds. The bill would make other related changes.
   (2) Existing law, the Medical Practice Act, regulates the practice
of medicine in this state. Existing law establishes the Medically
Underserved Account in the Contingent Fund of the Medical Board of
California. Under existing law, specified moneys in the account are
continuously appropriated to repay loans per agreements with
physicians who practice in underserved areas.
   This bill would continuously appropriate all funds in the account
for these purposes.
   (3) Existing law authorizes the Attorney General and other public
prosecutors to bring an action for relief from an act of unfair
competition, as defined. Under existing law, a civil penalty may be
assessed in the action that is designated for the exclusive use of a
public prosecutor, including the Attorney General, for enforcing
consumer protection laws.
   This bill would create the Unfair Competition Law Fund and would
require that the civil penalty recovered by the Attorney General in
unfair competition and unfair business practice actions be deposited
into the fund and expended, upon appropriation by the Legislature,
for investigation and prosecution of these actions, and various other
activities.
   (4) Existing law regulates persons engaged in the business of
making or negotiating deferred deposit transactions and requires
every check casher to post a complete and detailed schedule of all
fees for cashing checks, drafts, money orders, or other commercial
paper, and the sale or issuance of money orders.
   This bill would additionally require a check casher who cashes
checks for the same person in an aggregate amount exceeding $10,000
within one calendar year, as provided, to file an informational
return with the Franchise Tax Board, as specified. This bill would
impose civil penalties on persons who fail to file these returns or
fail to supply all of the information required by these returns. In
the case of willful failures, this bill would make these failures a
new criminal felony and would thereby impose a state-mandated local
program.
   (5) Existing law provides for the creation, maintenance, and
authority of the Sixth District Agricultural Association, which is
known as the California Science Center, and which is a tax-exempt
organization and instrumentality of the state.
   This bill would authorize the center to enter into a site lease
and lease-purchase agreement with the California Science Center
Foundation for the purpose of constructing and funding of the Phase
II Project of the center, as specified.
   (5.5) The Enterprise Zone Act requires the Department of Housing
and Community Development to administer the act and to designate no
more than 42 enterprise zones at any one time that may be proposed by
a city, county, or city and county from applications selected on the
basis of the most effective, innovative, and comprehensive
regulatory, tax, program, and other incentives in attracting private
sector investment in the zone proposed. The act also requires the
department to provide technical assistance to the enterprise zones
and authorizes the department to establish, charge, and collect a fee
as reimbursement for the costs of its administration of the act.
   Existing law allows a credit against the net tax, as defined, to a
taxpayer who employs a qualified employee in an enterprise zone
during the taxable year.
   Existing law requires the Department of Housing and Community
Development, until July 1, 2006, to assess an enterprise zone a fee
of not more than $10 for each application it accepts for issuance of
a tax credit certificate.
   This bill would extend the assessment of this $10 fee until
January 1, 2007.
   (6) Existing law generally sets forth the duties of the Director
of Homeland Security in overseeing homeland security activities in
the state.
   Existing law sets forth the duties of the State Department of
Health Services in allocating specified federal funds for activities
related to bioterrorism preparedness and response.
   This bill would require the director, in collaboration with the
department, to annually report to the chairperson of the Joint
Legislative Budget Committee and the chairperson of the budget
committee of each house of the Legislature, on their respective
expenditures of federal homeland security and bioterrorism funds.
   (7) Existing law requires generally that moneys received from the
disposition of state property shall be paid into the General Fund.
   This bill instead would require that the net proceeds, as defined,
that are received from any state real property disposition shall be
paid into the Deficit Recovery Bond Retirement Sinking Fund Account,
a continuously appropriated fund, until the bonds issued pursuant to
the Economic Recovery Bond Act are retired, thereby making an
appropriation, and thereafter shall be deposited in the Special Fund
for Economic Uncertainties. The bill would authorize the Director of
Finance to approve loans from the General Fund to the Property
Acquisition Law Money Account, which would be created by this bill
and would be available for expenditure by the Department of General
Services upon appropriation by the Legislature. The bill would
provide that these changes are effective retroactively to November 3,
2004.
   (8) Existing law authorizes the Director of General Services, with
the consent of the state agency involved, to let for a period of not
to exceed 5 years, any real or personal property that belongs to the
state, subject to specified conditions. Any money received in
connection with these leases is required to be deposited in the
General Fund for appropriation to the department for specified
purposes.
   This bill instead would require that any money received in
connection with these leases be deposited in the Property Acquisition
Law Money Account and be available to the department upon
appropriation by the Legislature.
   (8.5) Existing law provides that no state agency is required to
use the Office of State Publishing for its printing needs until the
effective date of the Budget Act of 2005 or July 1, 2005, whichever
is later and this provision of existing law is repealed on January 1,
2006.
   This bill would continue to provide that no state agency is
required to use the Office of State Publishing for its printing needs
until the effective date of the Budget Act of 2006 or July 1, 2006,
whichever is later, and would repeal this provision on January 1,
2007.
   (9) Existing law generally makes the Attorney General responsible
for representing state agencies in litigation matters. Under existing
law, revenues in the Litigation Deposits Fund are continuously
appropriated to the Department of Justice for litigation purposes.
   This bill would create the Legal Services Revolving Fund and
require state agency payments for legal services rendered by the
Attorney General to be deposited therein. The bill would authorize
the Attorney General to expend the money in the fund, upon
appropriation by the Legislature, for litigation activities. The bill
would further provide that revenues transferred to the Legal
Services Revolving Fund from the Litigation Deposits Fund may be
expended by the Department of Justice only if approved by the
Department of Finance.
   (10) Existing law requires the Controller, after work is
performed, services are rendered, or materials or equipment are
furnished by one state agency to another state agency through the
advancement or transfer of funds, to transfer the amount ordered by
the Director of General Services and adjust the accounts relative to
the advancements or transfers to credit the appropriate fund or
appropriation.
   This bill would require the Controller, instead, to process
transfers from time to time as requested by the state agency that
performed the work.
   (11) Under existing law, the Supervision of Trustees and
Fundraisers for Charitable Purposes Act governs charitable
corporations, unincorporated associations trustees, commercial
fundraisers, fundraising counsel, commercial coventurers, and other
legal entities who hold or solicit property for charitable purposes
over which the Attorney General has enforcement and supervisory
powers. Under the act, the Attorney General is also required to
establish and maintain a register of charitable corporations,
unincorporated associations, and trustees subject to the act and
copies of specified financial reports required to be filed under the
act.
   This bill would establish the Registry of Charitable Trusts Fund
in the State Treasury, as specified. The bill would require that
moneys in the fund, upon appropriation by the Legislature, be used by
the Attorney General solely to operate and maintain the Attorney
General's Registry of Charitable Trusts and provide public access via
the Internet to reports filed with the Attorney General.
   (12) Existing law authorizes the Department of General Services to
procure prescription drugs on behalf of specified state agencies
through bulk purchasing and to investigate and implement other
strategies to achieve the greatest savings on prescription drugs with
prescription drug manufacturers and wholesalers.
   This bill would state the intent of the Legislature that the
Department of General Services, University of California, and the
Public Employees Retirement System regularly meet and share
information regarding each agency's procurement of prescription drugs
in an effort to identify and implement opportunities for cost
savings in connection with this procurement. It would require the
department to annually develop a work plan and to report, no later
than January 10, 2006, and annually thereafter, to the chairperson of
the Joint Legislative Budget Committee and the chairs of the fiscal
committees of the Legislature on any joint activities of these
agencies in connection with procurement of prescription drugs and any
resulting cost savings.
   (13) Existing law authorizes the State Public Works Board to issue
bonds, notes, or other obligations to finance the acquisition or
construction of a public building, facility, or equipment as
authorized by the Legislature in the total amount authorized by the
Legislature, and any additional amount authorized by the board to pay
the cost of financing. The additional cost may include, among other
things, interest during acquisition or construction of the public
building, facility, or equipment.
   This bill would additionally include interest prior to and for a
period of 6 months after construction of the public building,
facility, or equipment within the additional cost of financing that
the board may authorize.
   The bill would specify that notwithstanding any other provision of
law, including, but not limited to, any specific grant of authority
on or after June 30, 2001, the board may issue bonds, notes, or bond
anticipation notes for any and all phases of specified types of
capital outlay projects.
   (14) Governor's Reorganization Plan No. 2, as submitted to the
Legislature on May 9, 2005 (GRP 2), would create the Department of
Technology Services Revolving Fund in the State Treasury and
continuously appropriate the fund for specified purposes with respect
to the administration of a Department of Technology Services.
   This bill would, as of the date that GRP 2 goes into effect,
provide that these provisions would not be operative.  The bill
would, as of that date, instead create the fund in the State Treasury
for these purposes, subject to appropriation by the Legislature.
   (15) Existing law establishes the Trial Court Trust Fund, the
proceeds of which are apportioned for the purposes of funding trial
court operations. Existing law specifies certain fees that are to be
collected in a special account in the county treasury and transmitted
monthly to the Controller for deposit in the Trial Court Trust Fund.

   This bill would expand the fees to which that provision applies,
to include, among other things, court transfer filing fees, hearing
date postponement filing fees, appeals filing fees, judgment debtor
filing fees, court order violation fees, judgment creditor filing
fees, and contempt of court fees.
   The bill would also delete language contained in that provision
crediting amounts transmitted from certain recording and indexing
fees during a specified time frame against the total amount the
county is required to pay to the state.
   (16) Existing law specifies that money in the Trial Court Trust
Fund is to be invested in the Surplus Money Investment Fund and all
interest earned is to be allocated to the Trial Court Trust Fund
semiannually.
   This bill would instead require that interest earned to be
allocated quarterly.
   (17) Existing law provides that certain court fees and fines that
are not subject to a local revenue sharing agreement or practice, as
specified, except as to costs incurred by and services provided by
the superior court which are transmitted monthly to the Controller
for deposit in the Trial Court Trust Fund, are required to be
deposited in a special account in the county treasury. Existing law
provides, until July 1, 2005, for the distribution of the revenue
from these fees and fines.
   This bill would provide for the distribution of these fees and
fines commencing July 1, 2005.
   (18) Existing law provides, commencing January 1, 2004, for a
county-by-county transfer to the Trial Court Trust Fund each fiscal
year of the difference between $31,000,000 and the amount already
transmitted to the Trial Court Trust Fund for costs incurred by and
services provided by the superior court as described in (1).
   This bill would provide, commencing July 1, 2005, that the
counties' obligation to remit to the Trial Court Trust Fund each
fiscal year the amount described above shall expire. Instead, the
counties would be obligated to remit reduced amounts, as specified,
to the Trial Court Trust Fund each fiscal year through the 2008-09
fiscal year, in accordance with specified procedures.
   The bill would impose new administrative duties on the
Administrative Office of the Courts (AOC) and the California State
Association of Counties (CSAC), including, among other things,
determining the portion of these reduced amounts to be paid by each
county. The AOC and the CSAC would be required, by December 31, 2005,
to complete an initial review of the impact upon individual counties
and courts of the above changes in revenue distribution and payment
obligations for the purpose of correcting inequities, as specified,
and, by June 30, 2006, to agree upon a methodology to determine
whether a reduction in the counties' obligation should be recommended
to the Legislature.
   This bill would require counties that have not paid amounts billed
for the 2003-04 or 2004-05 fiscal year to pay the amounts still
owing to the Trial Court Trust Fund by September 1, 2005, and would
provide for the calculation of penalties for late payments.
   (19) Existing law requires, on or before January 1, 2005, the AOC
and the CSAC to jointly propose to the Legislature a long-term
revenue allocation schedule, to take effect on July 1, 2005, for
specified fees and fines.
   This bill would delete this provision.
   (20) Under existing law, a court may impose a civil assessment of
up to $250 against a criminal defendant who fails to appear in court,
as specified.
   This bill would increase the maximum amount that may be assessed
under that provision to $300. The bill would also require each court
and county to maintain the collection program that was in effect on
July 1, 2005, unless otherwise agreed to by those entities. The bill
would further require the court to deposit the money collected under
that provision as soon as practicable into a bank account specified
by the AOC, for transmission to the Controller for deposit in the
Trial Court Trust Fund in accordance with specified procedures.
   (21) Existing law requires, commencing in the 1999-2000 fiscal
year, and each fiscal year thereafter, each county to remit specified
amounts to the Trial Court Trust Fund, including an amount based
upon the amount of fine and forfeiture revenue remitted to the state
pursuant to specified provisions during the 1994-95 fiscal year.
   This bill would, commencing July 1, 2005, reduce each county's
annual fine and forfeiture remittance by the amount that the county
received from the civil assessments described in (4), after deducting
the cost of collecting those civil assessments, in the 2003-04
fiscal year. The bill would require the AOC and CSAC to determine the
amount of this reduction for each county, as specified.
   (22) Existing law imposes a surcharge of $20 for court security in
addition to the total court fees collected pursuant to specified
provisions and also authorizes the collection of an additional
surcharge in certain cases filed from January 1, 2004, to June 30,
2005, inclusive.
   This bill would extend that additional surcharge until June 30,
2006, as specified.
   (23) Until January 1, 2008, or earlier, as specified, the Rural
Health Care Equity Program, as administered by the Department of
Personnel Administration, provides subsidies and reimbursements for
certain health care premiums and health care costs incurred by state
employees and annuitants in rural areas in which there is no
board-approved health maintenance organization plan available for
enrollment. Moneys in the program are disbursed to reimburse eligible
employees for, among other things, a portion or all of his or her
deductible, coinsurance, and other out-of-pocket health-related
expenses that would otherwise be covered if the employee and his or
her family members were enrolled in a board-approved health
maintenance organization.
   This bill would continuously appropriate an unspecified sum from
the General Fund to reimburse those eligible employees for a portion
or all of his or her out-of-pocket health-related expenses in excess
of $1,500 per fiscal year, not to exceed a total of $15,336,000 for
all fiscal years combined.
   (24) Existing law, the Housing and Emergency Shelter Trust Fund
Act of 2002, transfers $910,000,000 from the money deposited in the
Housing and Emergency Shelter Trust Fund from the sale of bonds to
the Multifamily Housing Program, with certain exceptions, including
that $45,000,000 of that amount is required to be transferred to the
Preservation Opportunity Fund and is continuously appropriated for
the preservation of at-risk housing pursuant to the Preservation
Opportunity Program, a short-term capital loan program established to
ensure that the supply of affordable housing is not depleted by the
conversion of existing government-assisted rental housing to
market-rate housing.  Existing law requires that money received in
repayment of loans from the Preservation Opportunity Fund, including
interest from that money, be deposited in the Preservation
Opportunity Fund. Any funds not encumbered for the Preservation
Opportunity Program within 30 months of their transfer to the
Preservation Opportunity Fund revert to the Housing Rehabilitation
Loan Fund.
   This bill would, instead, require that all money received in
repayment of loans made under the Preservation Opportunity Program be
deposited into the Housing Rehabilitation Loan Fund for use in the
Multifamily Housing Program, except for $5,000,000. By adding a new
source of revenue for deposit into this continuously appropriated
fund, the bill would make an appropriation. The $5,000,000 remaining
in the Preservation Opportunity Fund and subsequent interest payments
on loans made from this amount is required to be made available for
the purposes of the Preservation Opportunity Program through at least
December 31, 2008, at which time the California Housing Finance
Agency may, based on an analysis of need, either continue to make the
funds available for the Preservation Opportunity Program or transfer
the funds to the Housing Rehabilitation Loan Fund for use in the
Multifamily Housing Program, thereby constituting an appropriation.
   (25) Existing law requires the Department of Housing and Community
Development to make matching grants and loans from the Joe Serna,
Jr. Farmworker Housing Grant Fund, for specified purposes, and
authorizes matching grants and loans to be made from the fund for
other purposes.
   Existing law, the Housing and Emergency Shelter Trust Fund Act of
2002, authorizes, for purposes of financing various existing housing
and code enforcement programs, the issuance of bonds in the amount of
$2,100,000,000 pursuant to the State General Obligation Bond Law.
Existing law provides that $25,000,000 of these funds be used for
projects that serve migratory farmworkers and specifically authorizes
the department to receive $5,500,000 of these funds for the purpose
of reconstructing migrant centers operated through the Office of
Migrant Services that would otherwise be scheduled for closure due to
health or safety considerations or are in need of significant
repairs to ensure the health and safety of the residents.
   This bill would increase the amount of the $25,000,000
appropriation that the department may use from $5,300,000 to
$15,000,000 and would require the department to make at least
$8,159,000 of that amount available for flexible loans and grants for
projects that serve migratory agricultural workers under a program
provided for under the Joe Serna, Jr.  Farmworker Housing Grant
Program that uses innovative, cost-effective mechanisms to provide
migrant farmworkers with affordable, durable, low-maintenance housing
options, as specified. By requiring the department to use these
funds for a new purpose, the bill would make an appropriation. The
bill would declare that the changes made by this act are consistent
with the Housing and Emergency Trust Fund Act of 2002 and the Joe
Serna, Jr. Farmworker Housing Grant Fund.
   (26) Existing law authorizes the Department of Housing and
Community Development to increase rents for a migrant farm labor
center assisted by the Office of Migrant Services above those charged
at other such centers under specified circumstances.
   This bill would prohibit a rent increase above 30% of the average
annualized household incomes of residents of any such facility
without legislative authorization.
   (27) Existing law requires the Labor Commissioner to, after
investigation and determination that wages or benefits are due to an
unpaid worker, collect such wages or benefits on behalf of the
worker, as specified. Existing law requires that whenever the balance
in the Industrial Relations Unpaid Wage Fund is in excess of
$200,000 the Labor Commissioner transmit the excess to the Controller
for deposit in the General Fund.
   This bill would instead require the Controller, at the end of each
fiscal year, to transfer to the General Fund the unencumbered
balance of the fund, less 6 months of expenditures as determined by
the Director of Finance.
   (28) Existing law requires the Department of Veterans Affairs, in
voluntary cooperation with the Shasta County Board of Supervisors and
the boards of supervisors of specified northern California counties,
to design, develop, and construct the Northern California Veterans
Cemetery. Existing law requires that all moneys received for the
design, development, and construction of the cemetery are to be
placed in the Northern California Veterans Cemetery Master
Development Fund, a continuously appropriated fund. Existing law
provides that specified moneys received for the maintenance of the
cemetery are to be deposited to the credit of the Northern California
Veterans Cemetery Perpetual Maintenance Fund for expenditure, upon
appropriation by the Legislature.
   This bill would authorize the administrator of the Northern
California Veterans Cemetery to accept donations for the maintenance
and beautification of the cemetery, as provided, and would provide
that these donations are to be deposited to the credit of the
Northern California Veterans Cemetery Perpetual Maintenance Fund.
This bill would require that all donations deposited to that fund for
the maintenance and beautification of the cemetery be continuously
appropriated to the department.
   This bill would also provide that any proposal for the
construction, placement, or donation of monuments or memorials to the
cemetery are to be reviewed by an advisory committee, as specified,
and that all proposals are subject to the approval of the director of
the department.
   (29) Existing law provides that expenditures for the maintenance
of the Northern California Veterans Cemetery may not exceed $600,000
per calendar year.
   This bill would instead provide that the total expenditures for
both the operations and the maintenance of the cemetery should not
exceed $600,000 per fiscal year, as appropriated in the annual Budget
Act.
   (30) Existing law requires each state department or agency
awarding a contract or procuring goods or services, and each local
agency receiving state funds, to report annually to the Governor and
Legislature on the level of participation by specified business
enterprises in contract and procurement activities. Existing law
requires the Department of General Services to submit an annual
report to the Legislature with respect to, among other things,
procurement categories, construction contract categories, and
contracts awarded to specified business enterprises.  Existing law
requires the Department of Veteran's Affairs to make an annual report
to the Governor and Legislature regarding the participation by
specified business enterprises in contracts with the department,
requires awarding departments to identify steps to meet goals of
contracting, and requires the Department of General Services to
prepare a summary regarding those goals. Existing law authorizes the
Department of General Services, relative to certain contracts, to use
a negotiation process if certain conditions exist.
   This bill would repeal all of those provisions as of January 1,
2007. This bill would, commencing January 1, 2007, require the
department, as defined, to make available a report on contracting
activity containing specified information, as provided.
                                                          (31)
Existing law requires the money in the Hazardous Waste Reduction Loan
Account to be expended by the Business, Transportation and Housing
Agency to make loans for equipment, projects, or facilities for the
reduction of hazardous waste.
   This bill would repeal the provisions authorizing that account and
would transfer the amount remaining in the Hazardous Waste Reduction
Loan Account on January 1, 2006, to the Chrome Plating Pollution
Prevention Fund, which this bill would create in the State Treasury,
and would require the money in the account be expended by the agency,
upon appropriation by the Legislature.
   The bill would require any amounts paid to the state for a loan
issued pursuant to those former provisions to be transferred to the
fund.
   The repeal of that account and transfer the money to the fund
would become operative only if legislation is enacted and becomes
operative on or after June 1, 2005, but before July 1, 2006, that
requires the funds so transferred to be expended for environmental
control technologies for chrome and metal plating related activities.

   (32) Under existing law, the Public Utilities Commission has
regulatory authority over public utilities and can establish its own
procedures, subject to statutory limitations or directions and
constitutional requirements of due process. Existing law directs the
Public Utilities Commission to require specified highway carriers for
whom the commission does not establish minimum or maximum rates to
pay specified reduced fees, and authorizes the commission to increase
the fees on other carriers whose minimum or maximum rates are
established by the commission, up to a maximum of 1/2% of reported
gross operating revenue, if necessary, to maintain adequate financing
for the purposes of the Transportation Rate Fund. The fees are
deposited in the Transportation Rate Fund and are continuously
appropriated to the commission for specified regulatory purposes.
   This bill would permit the commission to increase these fees on
carriers for whom the commission establishes minimum or maximum
rates, up to a maximum of 0.7%, thereby making an appropriation.
   (33) The Sales and Use Tax Law requires any person whose estimated
tax liability averages $20,000 or more per month to remit amounts
due by electronic funds transfer, as provided. That law imposes
specified penalties with respect to payment by electronic funds
transfer. That law also imposes specified penalties with respect to
nonpayment of taxes in general.
   This bill would require any person whose estimated monthly tax
liability averages $10,000 or more to remit amounts due by electronic
funds transfer, as provided.
   (34) Existing income and corporation tax laws impose a penalty of
not more than $5,000 on any person that, among other things, fails to
file a return or to supply any information required, or make,
render, sign, or verify any false or fraudulent return or statement,
or supply any false or fraudulent information.
   This bill would impose the penalty only if those violations occur
repeatedly over a period of 2 years or more and result in an
estimated delinquent tax liability of at least $15,000.
   (35) Existing income and corporation tax laws provide, in the case
of willful failure to pay estimated taxes, that the person is guilty
of a misdemeanor and subject to a fine or imprisonment, as provided.

   This bill would provide that the misdemeanor, fine, or
imprisonment provisions do not apply to any person who is mentally
incompetent or suffers from dementia, Alzheimer's disease, or a
similar condition.
   (36) Existing tax laws impose various taxes and fees, and
authorize the Franchise Tax Board to administer the assessment,
audit, and collection of various taxes and fees.
   This bill would require the Franchise Tax Board to suspend or
disbar a person from practice, as defined, before the Franchise Tax
Board, as provided, if that person has been suspended or disbarred
from practice, as defined, before the United States Department of the
Treasury, and would require a person who practices before the
Franchise Tax Board and is suspended or disbarred from practice
before the United States Department of the Treasury to notify the
Franchise Tax Board of the suspension or disbarment in writing within
45 days of the issuance of the final order by that department.
   (37) Existing property tax law requires the county auditor, in
each fiscal year, to allocate property tax revenue to local
jurisdictions in accordance with specified formulas and procedures,
and generally requires that each jurisdiction be allocated an amount
equal to the total of the amount of revenue allocated to that
jurisdiction in the prior fiscal year, subject to certain
modifications, and that jurisdiction's portion of the annual tax
increment, as defined. Existing law also provides, commencing with
the 2004-05 fiscal year, for allocations of ad valorem property tax
revenue to each city, county, and city and county in the form of a
"vehicle license fee adjustment amount," calculated by the Controller
in accordance with statute. Existing law requires the Controller to
determine the "vehicle license fee adjustment amount" for each city,
county, and city and county for the 2005-06 fiscal year by September
1, 2005.
   This bill would instead require the Controller to calculate the
"vehicle license fee adjustment amount" for each city, county, and
city and county by October 15, 2005, in consultation with the Bureau
of State Audits.
   (38) Existing law imposes various duties upon the Employment
Development Department, including the implementation of various
programs with respect to workforce training and development.
   This bill would, to the extent that funds are appropriated for
this purpose in the annual Budget Act, authorize the Employment
Development Department to award grants to regional collaboratives for
the creation of regional nursing simulation laboratories, as
provided, that will provide additional nursing students with access
to clinical education facilities. This bill would limit the amount of
any grant so made to $250,000.
   (39) Existing law authorizes, upon adoption by the board of
supervisors, a county to establish an At-Risk Youth Early
Intervention Program designed to assess and serve families with
children who have chronic behavioral problems that place the child at
risk of becoming a ward of the juvenile court.
   This bill would establish a schedule for the allocation of funds
to county probation departments from funds appropriated by the
Legislature to provide services for children who are habitual
truants, runaways, at risk of being wards of the juvenile court, or
under juvenile court supervision or the supervision of the probation
department, and would require the Department of Corrections and
Rehabilitation to administer the funding allocations.
   (40) Existing law requires that the investigation and enforcement
of the certain provisions of law by the Attorney General and the
Commissioner of Corporations be accomplished without duplication of
effort. Existing law further provides that to the extent that the
Attorney General exercises that authority, it shall be done using
existing resources, and no future budget augmentations be made for
that purpose.
   This bill would revise those provisions to provide that to the
extent the Attorney General exercises that authority, no General Fund
budget augmentations would be made for that purpose.
   (40.5) Under existing law, the Franchise Tax Board is authorized
to prescribe all rules and regulations necessary for the enforcement
of the Personal Income Tax Law and the Corporation Tax Law.
   This bill would authorize the board to continue to implement the
ReadyReturn pilot program, available to specified taxpayers, for the
2005-06 fiscal year and would require the pilot program to be
operated in the same manner it was operated during the 2004-05 fiscal
year.
   (40.7) The Budget Act of 2005 appropriates specified amounts from
the General Fund for local assistance to be paid by the State
Controller to local governments for the costs of homicide trials,
with specified limitations on these reimbursements.
   This bill would specify that these funds shall be available for
100% of any extraordinary costs incurred by the County of Stanislaus
related to a specified homicide trial.
   (40.8) Existing property tax law authorizes grants, under the
State-County Property Tax Administration Grant Program, to provide
funding for the local administration of property taxes for those
counties that elect to receive the grants.
   This bill would suspend those grants for the 2006-07 fiscal year.

  (41) 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.
  (42) This bill would declare that it is to take effect immediately
as an urgency statute.
   Appropriation: yes.


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


  SECTION 1.  Section 1721.5 of the Business and Professions Code is
amended to read:
   1721.5.  All funds received by the State Treasurer under the
authority of this chapter which relate to dental auxiliaries shall be
placed in the State Dental Auxiliary Fund for the purposes of
administering this chapter as it relates to dental auxiliaries.
  SEC. 2.  Section 2154.4 of the Business and Professions Code is
amended to read:
   2154.4.  (a) The Medically Underserved Account is hereby created
in the Contingent Fund of the Medical Board of California.
   (b) The sum of three million four hundred fifty thousand dollars
($3,450,000) is hereby authorized to be expended from the Contingent
Fund of the Medical Board of California on this program. These moneys
are appropriated as follows:
   (1) One million one hundred fifty thousand dollars ($1,150,000)
shall be transferred from the Contingent Fund of the Medical Board of
California to the Medically Underserved Account on July 1, 2003. Of
this amount, one hundred fifty thousand dollars ($150,000) shall be
used by the Medical Board of California in the 2003-04 fiscal year
for operating expenses necessary to manage this program.
   (2) One million one hundred fifty thousand dollars ($1,150,000)
shall be transferred from the Contingent Fund of the Medical Board of
California to the Medically Underserved Account on July 1, 2004. Of
this amount, one hundred fifty thousand dollars ($150,000) shall be
used by the Medical Board of California in the 2004-05 fiscal year
for operating expenses necessary to manage this program.
   (3) One million one hundred fifty thousand dollars ($1,150,000)
shall be transferred from the Contingent Fund of the Medical Board of
California to the Medically Underserved Account on July 1, 2005. Of
this amount, one hundred fifty thousand dollars ($150,000) shall be
used by the Medical Board of California in the 2005-06 fiscal year
for operating expenses necessary to manage this program.
   (c) Funds placed into the Medically Underserved Account shall be
used by the board to repay the loans per agreements made with
physicians.
   (1) Funds paid out for loan repayment may have a funding match
from foundation or other private sources.
   (2) Loan repayments may not exceed one hundred five thousand
dollars ($105,000) per individual licensed physician.
   (3) Loan repayments may not exceed the amount of the educational
loans incurred by the physician applicant.
   (d) Notwithstanding Section 11005 of the Government Code, the
board may seek and receive matching funds from foundations and
private sources to be placed into the Medically Underserved Account.
The board also may contract with an exempt foundation for the receipt
of matching funds to be transferred to the Medically Underserved
Account for use by this program.
   (e) Funds in the Medically Underserved Account are continuously
appropriated for the repayment of loans per agreements made between
the board and the physicians.
  SEC. 3.  Section 2499 of the Business and Professions Code is
amended to read:
   2499.  There is in the State Treasury the Board of Podiatric
Medicine Fund. Notwithstanding Section 2445, the division shall
report to the Controller at the beginning of each calendar month for
the month preceding the amount and source of all revenue received by
it on behalf of the board, pursuant to this chapter, and shall pay
the entire amount thereof to the Treasurer for deposit into the fund.
All revenue received by the board and the division from fees
authorized to be charged relating to the practice of podiatric
medicine shall be deposited in the fund as provided in this section,
and shall be used to carry out the provisions of this chapter
relating to the regulation of the practice of podiatric medicine.

  SEC. 4.  Section 2529.5 of the Business and Professions Code is
amended to read:
   2529.5.  Each person to whom registration is granted under the
provisions of this chapter shall pay into the Contingent Fund of the
Medical Board of California a fee to be fixed by the Division of
Licensing at a sum not in excess of one hundred dollars ($100).
   The registration shall expire after two years. The registration
may be renewed biennially at a fee to be fixed by the division at a
sum not in excess of fifty dollars ($50). Students seeking to renew
their registration shall present to the division evidence of their
continuing student status.
   The money in the Contingent Fund of the Medical Board of
California shall be used for the administration of this chapter.
  SEC. 5.  Section 2534 of the Business and Professions Code is
amended to read:
   2534.  The board shall report to the Controller at the beginning
of each month for the month preceding the amount and source of all
revenue received by it pursuant to this chapter, and shall pay the
entire amount thereof to the Treasurer for deposit in the
Speech-Language Pathology and Audiology Board Fund, which fund is
hereby created to carry out the purposes of this chapter.
  SEC. 6.  Section 2568 of the Business and Professions Code is
amended to read:
   2568.  The board shall report to the Controller at the beginning
of each month for the month preceding the amount and source of all
revenue received by it pursuant to this chapter, and shall pay the
entire amount thereof to the Treasurer for deposit in the Dispensing
Opticians Fund, which fund is created to carry out the provisions of
this chapter.
  SEC. 7.  Section 2687 of the Business and Professions Code is
amended to read:
   2687.  All fees earned by the board and all fines and forfeitures
of bail to which the board is entitled shall be reported at the
beginning of each month, for the month preceding, to the State
Controller. At the same time, the entire amount of these collections
shall be paid into the State Treasury and shall be credited to the
Physical Therapy Fund.
   This fund shall be for the use of the board to pay all salaries
and all other expenses necessarily incurred in carrying into effect
the provisions of this chapter.
  SEC. 8.  Section 2894 of the Business and Professions Code is
amended to read:
   2894.  All money in the Vocational Nursing and Psychiatric
Technicians Fund shall be used to carry out the provisions of this
chapter, including the promotion of nursing education in this state,
and for the refund, in accordance with law, of license fees or other
moneys paid into the Vocational Nursing and Psychiatric Technicians
Fund under the provisions of this chapter.
   Claims against the Vocational Nursing and Psychiatric Technicians
Fund shall be audited by the Controller, and shall be paid by the
Treasurer upon warrants drawn by the Controller.
  SEC. 9.  Section 2981 of the Business and Professions Code is
amended to read:
   2981.  The money in the Psychology Fund shall be used for the
administration of this chapter.
  SEC. 10.  Section 3455 of the Business and Professions Code is
amended to read:
   3455.  There is established in the State Treasury the Hearing Aid
Dispensers Fund. All fees collected pursuant to this chapter shall be
paid by the bureau into the fund. All money in the Hearing Aid
Dispensers Fund shall be used to carry out the purposes of this
chapter.
  SEC. 11.  Section 3520 of the Business and Professions Code is
amended to read:
   3520.  Within 10 days after the beginning of each calendar month
the board shall report to the Controller the amount and source of all
collections made under this chapter and at the same time pay all
those sums into the State Treasury, where they shall be credited to
the Physician Assistant Fund, which fund is hereby created. All money
in the fund shall be used to carry out the purpose of this chapter.

  SEC. 12.  Section 3771 of the Business and Professions Code is
amended to read:
   3771.  Within 10 days after the beginning of each calendar month,
the board shall report to the Controller the amount and source of all
collections made from persons licensed or seeking to be licensed
under this chapter, and all fines and forfeitures to which the board
is entitled, and at the same time, pay all these sums into the State
Treasury, where they shall be credited to the Respiratory Care Fund,
which is hereby created to carry out the purposes of this chapter.

  SEC. 13.  Section 4974 of the Business and Professions Code is
amended to read:
   4974.  The board shall report to the Controller at the beginning
of each month for the month preceding the amount and source of all
revenue received by it pursuant to this chapter, and shall pay the
entire amount thereof to the Treasurer for deposit in the Acupuncture
Fund, which fund is created to carry out the provisions of this
chapter.
  SEC. 14.  Section 4984.6 of the Business and Professions Code is
amended to read:
   4984.6.  (a) The Behavioral Sciences Fund shall be used for the
purposes of carrying out and enforcing the provisions of this
chapter.
   (b) The board shall keep any records as will reasonably ensure
that funds expended in the administration of each licensing or
registration category shall bear a reasonable relation to the revenue
derived from each category, and shall so notify the department no
later than May 31 of each year.
   (c) Surpluses, if any, may be used in such a way so as to bear a
reasonable relation to the revenue derived from each category, and
may include, but not be limited to, expenditures for education and
research related to each of the licensing or registration categories.

  SEC. 15.  Section 4994 of the Business and Professions Code is
amended to read:
   4994.  All moneys in the Behavioral Sciences Fund shall be
expended by the board for the purposes of the programs under its
jurisdiction.
  SEC. 16.  Section 5683 of the Business and Professions Code is
amended to read:
   5683.  The money paid into the California Architects
Board-Landscape Architects Fund shall be used for expenditure in the
manner prescribed by law to defray the expenses of the board and in
carrying out and enforcing the provisions of this chapter.
  SEC. 17.  Section 6980.81 of the Business and Professions Code is
amended to read:
   6980.81.  (a) The bureau shall report each month to the Controller
the amount and source of all revenue received pursuant to this
chapter and shall pay the entire amount thereof into the State
Treasury for credit to the Private Security Services Fund.
   (b) All moneys paid into the Private Security Services Fund
pursuant to subdivision (a) shall be used for the purposes of this
chapter.
  SEC. 18.  Section 6980.82 of the Business and Professions Code is
amended to read:
   6980.82.  The director shall furnish one copy of the licensing law
and rules and regulations to any applicant or licensee without
charge. The director shall charge and collect a fee equivalent to the
cost of producing such laws, rules and regulations, manuals, or
guides, plus sales tax for each additional copy which may be
furnished on request to any applicant or licensee, and for each copy
furnished on request to any other person. All moneys derived pursuant
to this section, except for any sales tax collected, shall be used
to cover the costs of producing copies of these laws, rules and
regulations, manuals, or guides. All moneys collected for sales tax
shall be remitted to the State Board of Equalization.
  SEC. 19.  Section 7599.71 of the Business and Professions Code is
amended to read:
   7599.71.  The director shall furnish one copy of any issue or
edition of the licensing law, rules and regulations, manuals, or
guides to any applicant or licensee without charge. The director
shall charge and collect a fee equivalent to the cost of producing
such laws, rules and regulations, manuals, or guides, plus sales tax
for each additional copy which may be furnished on request to any
applicant or licensee, and for each copy furnished on request to any
other person. All moneys derived, pursuant to this section except for
any sales tax collected shall be used to cover the costs of
producing copies of such laws, rules and regulations, manuals or
guides. All moneys collected for sales tax shall be remitted to the
State Board of Equalization.
  SEC. 20.  Section 7599.74 of the Business and Professions Code is
amended to read:
   7599.74.  All money derived from Section 7591.9 shall be used to
support the bureau's enforcement program.
  SEC. 21.  Section 7886 of the Business and Professions Code is
amended to read:
   7886.  The money paid into the Geology and Geophysics Fund shall
be used by the board to carry out the provisions of this chapter.

  SEC. 22.  Section 9872 of the Business and Professions Code is
amended to read:
   9872.  The money in the Electronic and Appliance Repair Fund
necessary for the administration of this chapter shall be used for
such purposes.
  SEC. 23.  Section 17206 of the Business and Professions Code is
amended to read:
   17206.  Civil Penalty for Violation of Chapter
   (a) Any person who engages, has engaged, or proposes to engage in
unfair competition shall be liable for a civil penalty not to exceed
two thousand five hundred dollars ($2,500) 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, by
any district attorney, by any county counsel authorized by agreement
with the district attorney in actions involving violation of a
county ordinance, by any city attorney of a city, or city and county,
having a population in excess of 750,000, with the consent of the
district attorney, by a city prosecutor in any city having a
full-time city prosecutor, or, with the consent of the district
attorney, by a city attorney in any city and county, in any court of
competent jurisdiction.
   (b) The court shall impose a civil penalty for each violation of
this chapter. In assessing the amount of the civil penalty, the court
shall consider any one or more of the relevant circumstances
presented by any of the parties to the case, including, but not
limited to, the following: the nature and seriousness of the
misconduct, the number of violations, the persistence of the
misconduct, the length of time over which the misconduct occurred,
the willfulness of the defendant's misconduct, and the defendant's
assets, liabilities, and net worth.
   (c) If the action is brought by the Attorney General, one-half of
the penalty collected shall be paid to the treasurer of the county in
which the judgment was entered, and one-half to the General Fund. If
the action is brought by a district attorney or county counsel, the
penalty collected shall be paid to the treasurer of the county in
which the judgment was entered. Except as provided in subdivision
(e), if the action is brought by a city attorney or city prosecutor,
one-half of the penalty collected shall be paid to the treasurer of
the city in which the judgment was entered, and one-half to the
treasurer of the county in which the judgment was entered. The
aforementioned funds shall be for the exclusive use by the Attorney
General, the district attorney, the county counsel, and the city
attorney for the enforcement of consumer protection laws.
   (d) The Unfair Competition Law Fund is hereby created as a special
account within the General Fund in the State Treasury. The portion
of penalties that is payable to the General Fund or to the Treasurer
recovered by the Attorney General from an action or settlement of a
claim made by the Attorney General pursuant to this chapter or
Chapter 1 (commencing with Section 17500) of Part 3 shall be
deposited into this fund. Moneys in this fund, upon appropriation by
the Legislature, shall be used by the Attorney General to support
investigations and prosecutions of California's consumer protection
laws, including implementation of judgments obtained from such
prosecutions or investigations and other activities which are in
furtherance of this chapter or Chapter 1 (commencing with Section
17500) of Part 3.
   (e) If the action is brought at the request of a board within the
Department of Consumer Affairs or a local consumer affairs agency,
the court shall determine the reasonable expenses incurred by the
board or local agency in the investigation and prosecution of the
action.
   Before any penalty collected is paid out pursuant to subdivision
(c), the amount of any reasonable expenses incurred by the board
shall be paid to the Treasurer for deposit in the special fund of the
board described in Section 205. If the board has no such special
fund, the moneys shall be paid to the Treasurer. The amount of any
reasonable expenses incurred by a local consumer affairs agency shall
be paid to the general fund of the municipality or county that funds
the local agency.
   (f) If the action is brought by a city attorney of a city and
county, the entire amount of the penalty collected shall be paid to
the treasurer of the city and county in which the judgment was
entered for the exclusive use by the city attorney for the
enforcement of consumer protection laws. However, if the action is
brought by a city attorney of a city and county for the purposes of
civil enforcement pursuant to Section 17980 of the Health and Safety
Code or Article 3 (commencing with Section 11570) of Chapter 10 of
Division 10 of the Health and Safety Code, either the penalty
collected shall be paid entirely to the treasurer of the city and
county in which the judgment was entered or, upon the request of the
city attorney, the court may order that up to one-half of the
penalty, under court supervision and approval, be paid for the
purpose of restoring, maintaining, or enhancing the premises that
were the subject of the action, and that the balance of the penalty
be paid to the treasurer of the city and county.
  SEC. 24.  Section 1789.30 of the Civil Code is amended to read:
   1789.30.  (a) (1) Every check casher, as applicable to the
services provided, shall post a complete, detailed, and unambiguous
schedule of all fees for (A) cashing checks, drafts, money orders, or
other commercial paper serving the same purpose, (B) the sale or
issuance of money orders, and (C) the initial issuance of any
identification card. Each check casher shall also post a list of
valid identification which is acceptable in lieu of identification
provided by the check casher. The information required by this
section shall be clear, legible, and in letters not less than
one-half inch in height. The information shall be posted in a
conspicuous location in the unobstructed view of the public within
the check casher's premises.
   (2) Every check casher who cashes a check, or a series of checks,
in the aggregate amount that exceeds ten thousand dollars ($10,000)
for the same person in the same calendar year, whether in a single
transaction or in multiple transactions, shall file a return required
by Section 18631.7 of the Revenue and Taxation Code.
   (b) (1) Except as provided in paragraph (2), this section shall
become operative December 31, 2004.
   (2) Paragraph (2) of subdivision (a) shall apply to checks cashed
on or after January 1, 2006.
  SEC. 25.  Article 13 (commencing with Section 14095) of Chapter 1
of Part 5 of Division 3 of Title 1 of the Corporations Code is
repealed.
  SEC. 26.  Section 4101.3 is added to the Food and Agricultural
Code, to read:
   4101.3.  (a) Notwithstanding any other provision of law, the
California Science Center is hereby authorized to enter into a site
lease with the California Science Center Foundation, a California
Nonprofit Corporation, with the approval of the State and Consumer
Services Agency, Department of Finance, and the Department of General
Services, for the purpose of the foundation developing,
constructing, equipping, furnishing, and funding the project known as
Phase II of the California Science Center. The overall construction
cost and scope shall be consistent with the amount authorized in 2002
Budget Act, provided that nothing in this section shall prevent the
foundation from expending additional nonstate funds to complete Phase
II provided that the additional expenditures do not result in
additional state operation and maintenance costs. Any additional
expenditure of nonstate funds by the foundation shall not increase
the state's contribution.
   (b) For the purpose of carrying out subdivision (a), all of the
following shall apply:
   (1) In connection with the development described in subdivision
(a), above, the foundation may, in its determination, select the most
qualified construction manager/general contractor to oversee and
manage the work and prepare the competitive bid packages for all
major subcontractors to be engaged in the construction of Phase II
Project. Any construction manager/general contractor selected shall
be required to have a California general contractor's license.
   (2) Prior to commencement of construction of the Phase II Project,
the California Science Center shall enter into a lease-purchase
agreement upon approval by the Department of Finance with the
foundation on terms that are compatible with the Phase I Project
financing. The term of the lease-purchase agreement shall be a term
not to exceed 25 years.  Lease payments on behalf of the state shall
be commensurate with the twenty-two million nine hundred forty-five
thousand two hundred sixty-three dollars ($22,945,263), (nineteen
million one hundred thirty-seven thousand dollars ($19,137,000) plus
19.9 percent augmentation authority) construction cost allocation of
the state. Lease payments may also include any cost of financing that
the foundation may incur related to tax exempt financing. The
California Science Center shall be authorized to direct the State
Controller's Office to send the rental payments under the
lease-purchase agreement directly to the foundation's bond trustee.
   (3) The foundation shall ensure that the Phase II Project is
inspected during construction by the state in the manner consistent
with state infrastructure projects. The foundation shall also
indemnify and defend and save harmless the Department of General
Services for any and all claims and losses accruing and resulting
from or arising out of the foundation's use of the state's plans and
specifications. The foundation and the California Science Center,
upon consultation with the Director of the Department of General
Services and the Department of Finance shall agree on a reasonable
level of state oversight throughout the construction of the Phase II
Project in order to assist the foundation in the completion of the
project within the intended scope and cost.
   (4) At the end of the term of the site lease and the
lease-purchase agreement unencumbered title to the land and
improvements shall return to the State of California with
jurisdiction held by the California Science Center.
  SEC. 26.5.  Section 7076 of the Government Code is amended to read:

   7076.  (a) (1) The department shall provide technical assistance
to the enterprise zones designated pursuant to this chapter with
respect to all of the following activities:
   (A) Furnish limited onsite assistance to the enterprise zones when
appropriate.
   (B) Ensure that the locality has developed a method to make
residents, businesses, and neighborhood organizations aware of the
opportunities to participate in the program.
   (C) Help the locality develop a marketing program for the
enterprise zone.
   (D) Coordinate activities of other state agencies regarding the
enterprise zones.
   (E) Monitor the progress of the program.
   (F) Help businesses to participate in the program.
   (2) Notwithstanding existing law, the provision of services in
subparagraphs (A) to (F), inclusive, shall be a high priority of the
department.
   (3) The department may, at its discretion, undertake other
activities in providing management and technical assistance for
successful implementation of this chapter.
   (b) The applicant shall be required to begin implementation of the
enterprise zone plan contained in the final application within six
months after notification of final designation or the enterprise zone
shall lose its designation.
   (c) The department may establish, charge, and collect a fee as
reimbursement for the costs of its administration of this chapter.
The department shall assess each enterprise zone a fee of not more
than ten dollars ($10) for each application it accepts for issuance
of a certificate pursuant to subdivision (c) of Section 17053.74 of
the Revenue and Taxation Code and subdivision (c) of Section 23622.7
of the Revenue and Taxation Code. The enterprise zone administrator
may collect this fee at the time it accepts an application for
issuance of a certificate. This subdivision shall become inoperative
on January 1, 2007, and shall have no force or effect on or after
that date.
   (d) Any fee assessed and collected pursuant to subdivision (c)
shall be refundable if the certificate issued by the local government
pursuant to subdivision (c) of Section 17053.74 of the Revenue and
Taxation Code and subdivision (c) of Section 23622.7 of the Revenue
and Taxation Code is not accepted by the Franchise Tax Board.
  SEC. 27.  Section 9147.5 is added to the Government Code, to read:

   9147.5.  (a) Notwithstanding Section 7550.5, the Director of
Homeland Security, in collaboration with the State Department of
Health Services, shall, on or before February 1 of each year, report
to the chairperson of the Joint Legislative Budget Committee, and the
chairperson of the budget committee of each house of the
Legislature, on their respective expenditures of federal homeland
security and bioterrorism funds.
   (b) The report shall include all of the following information:
   (1) Descriptions of grant expenditures and coordination activities
at the state and local level that have occurred over the past fiscal
year.
   (2) How those activities met the state's strategic goals and
objectives.
   (3) Funding amounts awarded to state and local agencies.
   (4) Funding levels by grant and grant year, designating which
funds have been expended or encumbered, or remain unencumbered.
   (5) Any challenges encountered by state or local agencies that
hindered their expenditure of the funds.
   (6) Areas of focus for the upcoming fiscal year.
   (c) Nothing in this section shall be construed to require the
Director of Homeland Security or the State Department of Health
Services to disclose or include classified information.
  SEC. 28.  Section 11011 of the Government Code is amended to read:

                              11011.  (a) On or before December 31st
of each year, each state agency shall make a review of all
proprietary state lands, other than tax-deeded land, land held for
highway purposes, lands under the jurisdiction of the State Lands
Commission, land that has escheated to the state or that has been
distributed to the state by court decree in estates of deceased
persons, and lands under the jurisdiction of the State Coastal
Conservancy, over which it has jurisdiction to determine what, if
any, land is in excess of its foreseeable needs and report thereon in
writing to the Department of General Services. These lands shall
include, but not be limited to, the following:
   (1) Land not currently being utilized, or currently being
underutilized, by the state agency for any existing or ongoing state
program.
   (2) Land for which the state agency has not identified any
specific utilization relative to future programmatic needs.
   (3) Land not identified by the state agency within its master
plans for facility development.
   (b) Jurisdiction of all land reported as excess shall be
transferred to the Department of General Services, when requested by
the director thereof, for sale or disposition under this section or
as may be otherwise authorized by law.
   (c) The Department of General Services shall report to the
Legislature annually, the land declared excess and request
authorization to dispose of the land by sale or otherwise.
   (d) The Department of General Services shall review and consider
reports submitted to the Director of General Services pursuant to
Section 66907.12 of the Government Code and Section 31104.3 of the
Public Resources Code prior to recommending or taking any action on
surplus land, and shall also circulate the reports to all agencies
that are required to report excess land pursuant to this section. In
recommending or determining the disposition of surplus lands, the
Director of General Services may give priority to proposals by the
state that involve the exchange of surplus lands for lands listed in
those reports.
   (e) Except as otherwise provided by any other provision of law,
whenever any land is reported as excess pursuant to this section, the
Department of General Services shall determine whether or not the
use of the land is needed by any other state agency. If the
Department of General Services determines that any land is needed by
any other state agency it may transfer the jurisdiction of this land
to the other state agency upon the terms and conditions as it may
deem to be for the best interests of the state.
   (f) When authority is granted for the sale or other disposition of
lands declared excess, and the Department of General Services has
determined that the use of the land is not needed by any other state
agency, the Department of General Services shall sell the land or
otherwise dispose of the same pursuant to the authorization, upon any
terms and conditions and subject to any reservations and exceptions
as the Department of General Services may deem to be for the best
interests of the state. The Department of General Services shall
report to the Legislature annually, with respect to each parcel of
land authorized to be sold under this section, giving the following
information:
   (1) A description or other identification of the property.
   (2) The date of authorization.
   (3) With regard to each parcel sold after the next preceding
report, the date of sale and price received, or the value of the land
received in exchange.
   (4) The present status of the property, if not sold or otherwise
disposed of at the time of the report.
   (g) Except as otherwise specified by law, the net proceeds
received from any real property disposition, including the sale,
lease, exchange, or other means, that is received pursuant to this
section shall be paid into the Deficit Recovery Bond Retirement
Sinking Fund Subaccount, established pursuant to subdivision (f) of
Section 20 of Article XVI of the California Constitution, until the
time that the bonds issued pursuant to the Economic Recovery Bond Act
(Title 18 (commencing with Section 99050)), approved by the voters
at the March 2, 2004, statewide primary election, are retired.
Thereafter, the net proceeds received pursuant to this section shall
be deposited in the Special Fund for Economic Uncertainties.
   For purposes of this section, net proceeds shall be defined as
proceeds less any outstanding loans from the General Fund, or
outstanding reimbursements due to the Property Acquisition Law Money
Account for costs incurred prior to June 30, 2005, related to the
management of the state's real property assets, including, but not
limited to, surplus property identification, legal research,
feasibility statistics, activities associated with land use, and due
diligence.
   (h) The Director of Finance may approve loans from the General
Fund to the Property Acquisition Law Money Account, which is hereby
created in the State Treasury, for the purposes of supporting the
management of the state's real property assets.
   (i) Any rentals or other revenues received by the department from
real properties, the jurisdiction of which has been transferred to
the Department of General Services under this section, shall be
deposited in the Property Acquisition Law Money Account and shall be
available for expenditure by the Department of General Services upon
appropriation by the Legislature.
   (j) Nothing contained in this section shall be construed to
prohibit the sale, letting, or other disposition of any state lands
pursuant to any law now or hereafter enacted authorizing the sale,
letting, or disposition.
   (k) Subdivisions (a) to (f), inclusive, of this section shall be
inoperative from August 16, 2004, until July 1, 2005, with the
exception of subdivisions (g) to (j), inclusive, which shall take
effect retroactively, beginning November 3, 2004.
  SEC. 29.  Section 11044 of the Government Code is amended to read:

   11044.  (a) The Legal Services Revolving Fund is hereby created in
the State Treasury. The Department of Justice shall administer this
fund. Moneys in the fund, upon appropriation by the Legislature,
shall be used by the Attorney General for investigation and
litigation activities taken on behalf of the state agencies employing
the legal services of the department and for investigation and
litigation activities funded through judgments or settlements.
   (b) For state agencies, departments, or programs that are charged
for the costs of legal services rendered by the Attorney General, the
Attorney General shall charge an amount sufficient to recover the
costs incurred in providing the legal services. These funds shall be
deposited into the Legal Services Revolving Fund. Except as approved
by the Department of Finance, charges for legal services may not be
made against the General Fund, but may be made against any other fund
or special account in the General Fund.
   (c) Upon the request of the Attorney General in the form
prescribed by the Controller, the Controller shall transfer the
amount of the charges for services rendered from the agency's
appropriation to the appropriation for the support of the Attorney
General's office, provided that the Attorney General shall not
request an amount which, when added to previous charges in the same
fiscal year, exceeds the amount budgeted by the state agency for
Attorney General legal services. Payments for these charges shall be
credited to and in augmentation of the appropriation for the support
of the Attorney General's office from which the cost of the services
was or will be paid.
   (d) A state agency that has a dispute regarding charges for legal
services provided by the Attorney General shall notify the Attorney
General, in writing, of the dispute and the basis for it. The
Attorney General shall immediately provide a credit to the state
agency in the subsequent billing or billings for the amount of the
charges in dispute. No further transfer of funds shall occur with
respect to the services for which charges are disputed until the
dispute is resolved by the Attorney General, subject to the approval
of the Department of Finance.
  SEC. 30.  Section 11139.8 of the Government Code is amended to
read:
   11139.8.  (a) Notwithstanding any other provision of law,
commencing January 1, 2003, each state department or agency awarding
a contract or procuring goods or services shall, and each local
agency receiving state funds may, collect information and report to
the Governor and the Legislature on the level of participation by
minority, women, and disabled veteran-owned business enterprises in
contract and procurement activities as identified in this section.
The reports shall be submitted annually, on or before July 1 of each
year, and shall include dollar values of contract awards for the
following categories of contractors:
   (1) Construction.
   (2) Architecture and engineering and other professional services.

   (3) Procurement of materials, supplies, and equipment.
   (4) Information technology procurements.
   (b) This section shall remain in effect only until January 1,
2007, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2007, deletes or extends
that date.
  SEC. 31.  Section 11260 of the Government Code is amended to read:

   11260.  After work is performed, services are rendered, or
materials or equipment are furnished pursuant to advances or
transfers made under Sections 11257 and 11258, the Controller shall
process transfers from time to time as requested by the state agency
that performed the work. Any agency receiving an advance or transfer
under Section 11257 or 11258 shall remain fully accountable therefor
to the Controller who shall audit as provided in Section 12410.
  SEC. 32.  Section 11544 is added to the Government Code, to read:
   11544.  (a) The Department of Technology Services Revolving Fund,
hereafter known as the fund, is hereby created within the State
Treasury. The fund shall be administered by the director, pursuant to
the department's plan of operations, to receive all revenues from
the sale of technology or technology services provided for in this
chapter and all other moneys properly credited to the board and
department from any other source, and, subject to appropriation by
the Legislature, to pay all costs arising from this chapter,
including, but not limited to, operating and other expenses of the
board and department and costs associated with approved information
technology projects, and to establish reserves. At the discretion of
the director, segregated, dedicated accounts within the fund may be
established.
   (b) The fund shall consist of all of the following:
   (1) Moneys appropriated and made available by the Legislature for
the purpose of this chapter.
   (2) Any other moneys that may be made available to the department
for the purpose of this chapter from any other source, including the
return from investments of moneys by the Treasurer.
   (c) The department may collect payments from public agencies for
providing services to those agencies that the agencies have
contracted with the department to provide. The department may require
monthly payments by client agencies for the services the agencies
have contracted the department to provide. Pursuant to Section 11255,
the Controller shall transfer any amounts so authorized by the
department, consistent with the annual budget of each department, to
the fund. The department shall notify each affected state agency upon
requesting the Controller to make the transfer.
   (d) If the balance remaining in the fund at the end of any fiscal
year exceeds 25 percent of the department's current fiscal year
budget, the excess amount shall be used to reduce the billing rates
for services rendered during the following fiscal year.
  SEC. 33.  Section 12587.1 is added to the Government Code, to read:

   12587.1.  (a) The Registry of Charitable Trusts Fund is hereby
established in the State Treasury, to be administered by the
Department of Justice.
   (b) Notwithstanding any other provision of law, all registration
fees, registration renewal fees, and late fees or other fees paid to
the Department of Justice pursuant to this article, Section 2850 of
the Probate Code, or Section 320.5 of the Penal Code, shall be
deposited in the Registry of Charitable Trusts Fund.
   (c) Moneys in the fund, upon appropriation by the Legislature,
shall be used by the Attorney General solely to operate and maintain
the Attorney General's Registry of Charitable Trusts and provide
public access via the Internet to reports filed with the Attorney
General.
  SEC. 33.5.  Section 14612.2 of the Government Code is amended to
read:
   14612.2.  (a) Notwithstanding Chapter 7 (commencing with Section
14850) of Part 5.5 of Division 3 of Title 2 of, or Section 14901 of,
the Government Code, no agency is required to use the Office of State
Publishing for its printing needs and the Office of State Publishing
may offer printing services to both state and other public agencies,
including cities, counties, special districts, community college
districts, the California State University, the University of
California, and agencies of the United States government. When
soliciting bids for printing services from the private sector, all
state agencies shall also solicit a bid from the Office of State
Publishing when the project is anticipated to cost more than five
thousand dollars ($5,000).
   (b) This section shall remain operative only until the effective
date of the Budget Act of 2006 or July 1, 2006, whichever is later,
and as of January 1, 2007, is repealed, unless a later enacted
statute that is enacted before January 1, 2007, deletes or extends
the dates on which it becomes inoperative and is repealed.
  SEC. 34.  Section 14670 of the Government Code is amended to read:

   14670.  (a) With the consent of the state agency concerned, the
director may do any of the following:
   (1) Let for a period of not to exceed five years, any real or
personal property that belongs to the state, the letting of which is
not expressly prohibited by law, if he or she deems the letting to be
in the best interest of the state.
   (2) Sublet any real or personal property leased by the state, the
subletting of which is not expressly prohibited by law, if he or she
deems the subletting to be in the best interest of the state.
   (3) Let for a period not to exceed five years, and at less than
fair market rental, any real property of the state to any public
agency for use as nonprofit, self-help community vegetable gardens
and related supporting activities, provided:
   (A) Parcels let for those purposes shall not exceed five acres.
   (B) Two or more contiguous parcels shall not be let for those
purposes.
   (C) Parcels shall be let subject to applicable local zoning
ordinances.
   (b) The Legislature finds and declares that any leases let at less
than fair market rental pursuant to paragraph (3) of subdivision (a)
shall be of broad public benefit.
   (c) Any money received in connection with paragraph (1) of
subdivision (a) shall be deposited in the Property Acquisition Law
Money Account and shall be available to the department upon
appropriation by the Legislature.
   (d) All money received pursuant to paragraph (2) of subdivision
(a) shall be accounted for to the Controller at the close of each
month and on order of the Controller be paid into the State Treasury
and credited to the appropriation from which the cost of the lease
was paid.
  SEC. 35.  Section 14840 of the Government Code is amended to read:

   14840.  The department shall submit an annual report to the
Legislature no later than January 1 of each year containing the
following information:
   (a) Upon request, an up-to-date list of eligible small business
bidders by general procurement and construction contract categories,
noting company names and addresses and also noting which small
businesses also qualify as microbusinesses.
   (b) By general procurement and construction contract categories,
statistics comparing the small business and microbusiness contract
participation dollars to the total state contract participation
dollars.
   (c) By awarding department and general procurement and
construction categories, statistics comparing the small business and
microbusiness contract participation dollars to the total state
contract participation dollars.
   (d) Any recommendations for changes in statutes or state policies
to improve opportunities for small businesses and microbusinesses.
   (e) A statistical summary of small businesses and microbusinesses
certified for state contracting by the number of employees at the
business for each of the following categories: 0-25, 26-50, 51-75,
and 76-100.
   (f) To the extent feasible, beginning in the year 2002, the number
of contracts awarded by the department in the categories specified
in subdivision (e).
   (g) The number of contracts and dollar amounts awarded annually
pursuant to Section 14838.5 to small businesses, microbusinesses, and
disabled veteran business enterprises.
   (h) This section shall remain in effect only until January 1,
2007, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2007, deletes or extends
that date.
  SEC. 36.  Section 14982 is added to the Government Code, to read:
   14982.  (a) It is the intent of the Legislature that the
Department of General Services, University of California, and the
Public Employees Retirement System regularly meet and share
information regarding each agency's procurement of prescription drugs
in an effort to identify and implement opportunities for cost
savings in connection with this procurement. It is the intent of the
Legislature that the University of California and the Public
Employees Retirement System cooperate with the department in order to
reduce each agency's costs for prescription drugs.
   (b) The department shall do all of the following:
   (1) Share information on a regular basis with the University of
California and the Public Employees Retirement System regarding each
agency's procurement of prescription drugs, including, but not
limited to, prices paid for the same or similar drugs and information
regarding drug effectiveness.
   (2) Identify opportunities for the department, the University of
California, and the Public Employees Retirement System to consolidate
drug procurement or engage in other joint activities that will
result in cost savings in the procurement of prescription drugs.
   (3) Participate in at least one independent association that
develops information on the relative effectiveness of prescription
drugs.
   (4) No later than January 1, 2006, and annually thereafter,
develop a work plan that includes, but is not limited to, a
description of the department's annual activities to reduce the state'
s costs for prescription drugs and an estimate of cost savings.
   (5) No later than January 10, 2006, and annually thereafter,
report to the chairperson of the Joint Legislative Budget Committee
and the chairs of the fiscal committees of the Legislature on any
joint activities of the department, the University of California, and
the Public Employees Retirement System in the last 12 months in
connection with procurement of prescription drugs and any resulting
cost savings. This report shall include the work plan described in
paragraph (4).
   (c) Nothing in this section shall be construed to require sharing
of information that is prohibited by any other provision of law or
contractual agreement, or the disclosure of information that may
adversely affect potential drug procurement by any state agency.
  SEC. 37.  Section 15849.6 of the Government Code is amended to
read:
   15849.6.  Notwithstanding any provision of this part to the
contrary, the board may issue bonds, notes, or other obligations to
finance the acquisition or construction of a public building,
facility, or equipment as authorized by the Legislature, in the total
amount authorized by the Legislature, and any additional amount
authorized by the board to pay the cost of financing. This additional
amount may include interest during acquisition or interest prior to,
during, and for a period of six months after construction of the
public building, facility, or equipment, interest payable on any
interim loan for the public building, facility, or equipment from the
General Fund pursuant to Section 15849.1 or from the Pooled Money
Investment Account pursuant to Section 16312 or 16313, a reasonably
required reserve fund, and the costs of issuance of permanent
financing after completion of the construction or acquisition of the
public building, facility, or equipment.
   This section shall be applicable to, but not limited to, bonds,
notes, or obligations of the board that were authorized by
appropriations of the Legislature made prior to the effective date of
this section.
  SEC. 38.  Section 15849.7 is added to the Government Code, to read:

   15849.7.  Notwithstanding any other provision of law, including,
but not limited to, any specific grant of authority on or after June
30, 2001, the State Public Works Board may issue bonds, notes, or
bond anticipation notes for any and all phases of any capital outlay
project authorized to be financed pursuant to Chapter 5 (commencing
with Section 15830).
  SEC. 39.  Section 15863 of the Government Code is amended to read:

   15863.  (a) The net proceeds of any sale made pursuant to Section
15862 shall be deposited in the Deficit Recovery Bond Retirement
Sinking Fund Subaccount established pursuant to subdivision (f) of
Section 20 of Article XVI of the California Constitution, until the
time that the bonds issued pursuant to the Economic Recovery Bond Act
(Title 18 (commencing with Section 99050)), approved by the voters
at the March 2, 2004, statewide primary election, are retired. At
that time, the net proceeds, as defined in subdivision (g) of Section
11011, received pursuant to this section shall be deposited in the
Special Fund for Economic Uncertainties.
   (b) All rents received by the Department of General Services
pursuant to Section 15862 shall be deposited in the Property
Acquisition Law Money Account and shall be available for expenditure
by the Department of General Services upon appropriation.
  SEC. 40.  Section 16427 of the Government Code is amended to read:

   16427.  (a) For purposes of this article, "department" means the
Department of Justice.
   (b) The fund is under the control of the department. The
department shall maintain accounting records pertaining to the fund,
including subsidiary records of individual litigation deposits and
the disbursements from the fund.
   (c) The department shall file a claim with the Controller to pay
out money in the fund to whomever and at the time the department
directs. However, notwithstanding Section 13340, if a sum of money in
the fund was deposited pursuant to order or direction of the court,
that sum shall be paid to whomever and at the time the court directs.
The department may expend revenue transferred from the fund to the
Legal Services Revolving Fund only upon approval by the Department of
Finance. The department shall submit a written application to the
Department of Finance to request approval for the expenditure. The
request shall be deemed approved if the Department of Finance neither
approves nor disapproves the request within 30 days of receipt of
the application.
   (d) Any residue remaining in a deposit account after satisfaction
of all court-directed claims, or payment of departmental expenditures
for that account shall be transferred no later than July 1 of each
fiscal year to the General Fund.
   (e) The department shall prepare and submit to the chairperson of
the Joint Legislative Budget Committee, the chairpersons of the
fiscal committees of the Senate and the Assembly, and the Director of
Finance, quarterly reports concerning the activity of the fund that
detail the number of deposits received, the receipt of interest
income, disbursements to claimants, and what amount, if any, was used
for the litigation costs of the department.
  SEC. 41.  Section 22877 of the Government Code is amended to read:

   22877.  (a) As used in this section, the following definitions
shall apply:
   (1) "Coinsurance" means the provision of a health benefit plan
design that requires the health benefit plan and state employee or
annuitant to share the cost of hospital or medical expenses at a
specified ratio.
   (2) "Deductible" means the annual amount of out-of-pocket medical
expenses that a state employee or annuitant must pay before the
health benefit plan begins paying for expenses.
   (3) "Program" means the Rural Health Care Equity Program.
   (4) "Rural area" means an area in which there is no board-approved
health maintenance organization plan available for enrollment by
state employees or annuitants residing in the area.
   (b) (1) The Rural Health Care Equity Program is hereby established
for the purpose of funding the subsidization and reimbursement of
premium costs, deductibles, coinsurance, and other out-of-pocket
health care expenses paid by employees and annuitants living in rural
areas that would otherwise be covered if the state employee or
annuitant was enrolled in a board-approved health maintenance
organization plan. The program shall be administered by the
Department of Personnel Administration or by a third-party
administrator approved by the Department of Personnel Administration
in a manner consistent with all applicable state and federal laws.
The board shall determine the rural area for each subsequent fiscal
year, at the same time that premiums for health maintenance
organization plans are approved.
   (2) Separate accounts shall be maintained within the program for
all of the following:
   (A) Employees, as defined in subdivision (c) of Section 3513.
   (B) Excluded employees, as defined in subdivision (b) of Section
3527.
   (C) State annuitants.
   (c) Moneys in the program shall be allocated to the respective
accounts as follows:
   (1) The contribution provided by the state with respect to each
employee, as defined in subdivision (c) of Section 3513, who lives in
a rural area and is otherwise eligible, shall be an amount
determined through the collective bargaining process.
   (2) The contribution provided by the state with respect to each
excluded employee, as defined in subdivision (b) of Section 3527, who
lives in a rural area and is otherwise eligible, shall be an amount
equal to, but not to exceed,
    the amount contributed pursuant to paragraph (1).
   (3) The contribution provided by the state with respect to each
state annuitant who lives in a rural area, is not a Medicare
participant, resides in California, and is otherwise eligible, shall
be an amount not to exceed five hundred dollars ($500) per year.
   (4) The contribution provided by the state with respect to each
state annuitant who lives in a rural area, resides in California,
participates in a supplement Medicare health benefit plan, and is
otherwise eligible, shall be an amount equal to the Medicare Part B
premiums incurred by the annuitant, not to exceed seventy-five
dollars ($75) per month. The program may not reimburse for penalty
amounts.
   (5) If an employee enters or leaves service with the state during
a fiscal year, contributions for the employee shall be made on a pro
rata basis. A similar computation shall be used for anyone entering
or leaving the bargaining unit, including a person who enters the
bargaining unit by promotion during a fiscal year.
   (d) Each fund of the State Treasury, other than the General Fund,
shall reimburse the General Fund for any sums allocated pursuant to
subdivision (c) for employees whose compensation is paid from that
fund. That reimbursement shall be accomplished using the following
methodology:
   (1) On or before December 1 of each year, the Department of
Personnel Administration shall provide a list of active state
employees who participated in the program during the previous fiscal
year to each employing department.
   (2) On or before January 15 of each year, each department that
employed an active state employee identified by the Department of
Personnel Administration as a participant in the program shall
provide the Department of Personnel Administration with a list of the
funds used to pay each employee's salary, along with the proportion
of each employee's salary attributable to each fund.
   (3) Using the information provided by the employing departments,
the Department of Personnel Administration shall compile a list of
program payments attributable to each fund. On or before February 15
of each year, the Department of Personnel Administration shall
transmit this list to the Department of Finance.
   (4) The Department of Finance shall certify to the Controller the
amount to be transferred from the unencumbered balance of each fund
to the General Fund.
   (5) The Controller shall transfer to the General Fund from the
unencumbered balance of each impacted fund the amount specified by
the Department of Finance.
   (6) To ensure the equitable allocation of costs, the Director of
the Department of Personnel Administration or the Director of Finance
may require an audit of departmental reports.
   (e) For any sums allocated pursuant to subdivision (c) for
annuitants, funds, other than the General Fund, shall be charged a
fair share of the contribution provided by the state in accordance
with the provisions of Article 2 (commencing with Section 11270) of
Chapter 3 of Part 1 of Division 3. On or before July 31 of each year,
the Department of Personnel Administration shall provide the
Department of Finance with the total costs allocated for annuitants
in the previous fiscal year. The reported costs may not include
expenses that have been incurred but not claimed as of July 31.
   (f) Notwithstanding any other provision of law and subject to the
availability of funds, moneys within the program shall be disbursed
for the benefit of eligible employees. The disbursements shall
subsidize the preferred provider plan premiums for the employee by an
amount equal to the difference between the weighted average of
board-approved health maintenance organization premiums and the
lowest board-approved preferred provider plan premium available under
this part, and reimburse the employee for a portion or all of his or
her incurred deductible, coinsurance, and other out-of-pocket
health-related expenses that would otherwise be covered if the
employee and his or her family members were enrolled in a
board-approved health maintenance organization plan. These subsidies
and reimbursements shall be provided as determined by the Department
of Personnel Administration, which may include, but is not limited
to, a supplemental insurance plan, a medical reimbursement account,
or a medical spending account plan.
   (g) Notwithstanding any other provision of law and subject to the
availability of funds, moneys within the program shall be disbursed
for the benefit of eligible annuitants. The disbursements shall
either reimburse the annuitant, if not a Medicare participant, for
some or all of the deductible incurred by the annuitant or a family
member, not to exceed five hundred dollars ($500) per fiscal year, or
reimburse the annuitant, if a Medicare participant, for Medicare
Part B premiums incurred by the annuitant, not to exceed seventy-five
dollars ($75) per month. The program may not reimburse for penalty
amounts. These reimbursements shall be provided by the Department of
Personnel Administration. Notwithstanding any other provision of law,
any annuitant who cannot be located within a period of three months
and whose disbursement is returned to the Controller as unclaimed is
ineligible to participate in the program.
   (h) Subject to subdivision (i), moneys remaining in an account of
the program at the end of any fiscal year shall remain in the account
for use in subsequent fiscal years, until the account is terminated.
Moneys remaining in a program account upon termination, after
payment of all expenses and claims incurred prior to the date of
termination, shall be deposited in the General Fund.
   (i) Notwithstanding Section 13340, there is hereby continuously
appropriated, in support of subdivision (f), moneys to reimburse
eligible employees for a portion or all of his or her out-of-pocket
health-related expenses in excess of one thousand five hundred
dollars ($1,500) per fiscal year. In no case shall the total
expenditures from this appropriation exceed fifteen million three
hundred thirty-six thousand dollars ($15,336,000) for all fiscal
years combined.
   (j) The Legislature finds and declares that the program is
established for the exclusive benefit of employees, annuitants, and
family members.
   (k) This section shall cease to be operative on January 1, 2008,
or on an earlier date if the board makes a formal determination that
health maintenance organization plans are no longer the most
cost-effective health benefit plans offered by the board.
  SEC. 42.  Section 68085 of the Government Code is amended to read:

   68085.  (a) (1) There is hereby established the Trial Court Trust
Fund, the proceeds of which shall be apportioned at least quarterly
for the purpose of funding trial court operations, as defined in
Section 77003.  Apportionment payments may not exceed 30 percent of
the total annual apportionment to the Trial Court Trust Fund for
state trial court funding in any 90-day period.
   (2) The apportionment payments shall be made by the Controller.
The final payment from the Trial Court Trust Fund for each fiscal
year shall be made on or before August 31 of the subsequent fiscal
year.
   (3) If apportionment payments are made on a quarterly basis, the
payments shall be on July 15, October 15, January 15, and April 15.
In addition to quarterly payments, a final payment from the Trial
Court Trust Fund for each fiscal year may be made on or before August
31 of the subsequent fiscal year.
   (4) Notwithstanding any other provision of law, in order to
promote statewide efficiency, the Judicial Council may authorize the
direct payment or reimbursement or both of actual costs from the
Trial Court Trust Fund or the Trial Court Improvement Fund to fund
administrative infrastructure within the Administrative Office of the
Courts, such as legal services, financial services, information
systems services, human resource services, and support services, for
one or more participating courts upon appropriation of funding for
these purposes in the annual Budget Act. The amount of appropriations
from the Trial Court Improvement Fund under this subdivision may not
exceed 20 percent of the amount deposited in the Trial Court
Improvement Fund pursuant to subdivision (a) of Section 77205. Upon
prior written approval of the Director of Finance, the Judicial
Council may also authorize an increase in any reimbursements or
direct payments in excess of the amount appropriated in the annual
Budget Act. For any increases in reimbursements or direct payments
within the fiscal year that exceed two hundred thousand dollars
($200,000), the Director of Finance shall provide notification in
writing of any approval granted under this section, not less than 30
days prior to the effective date of that approval, to the chairperson
of the committee in each house of the Legislature that considers
appropriations, the chairpersons of the committees and the
appropriate subcommittees in each house of the Legislature that
consider the annual Budget Act, and the Chairperson of the Joint
Legislative Budget Committee, or not sooner than whatever lesser time
the Chairperson of the Joint Legislative Budget Committee, or his or
her designee, may in each instance, determine. The direct payment or
reimbursement of costs from the Trial Court Trust Fund may be
supported by the reduction of a participating court's allocation from
the Trial Court Trust Fund to the extent that the court's
expenditures for the program are reduced and the court is supported
by the program. The Judicial Council shall provide the affected trial
courts with quarterly reports on expenditures from the Trial Court
Trust Fund incurred as authorized by this subdivision. The Judicial
Council shall establish procedures to provide for the administration
of this paragraph in a way that promotes the effective, efficient,
reliable, and accountable operation of the trial courts.
   (b) Notwithstanding any other provision of law, the fees listed in
subdivision (c) shall all be deposited upon collection in a special
account in the county treasury, and transmitted monthly to the
Controller for deposit in the Trial Court Trust Fund.
   (c) (1) Except as specified in subdivision (d), this section
applies to all fees collected pursuant to Sections 631.3, 116.230,
and 403.060 of the Code of Civil Procedure and Sections 26820.4,
26823, 26826, 26826.01, 26827, 26827.4, 26830, 26832.1, 26833.1,
26835.1, 26836.1, 26837.1, 26838, 26850.1, 26851.1, 26852.1, 26853.1,
26855.4, 26862, 68086, 72055, 72056, 72056.01, and 72060.
   (2) Notwithstanding any other provision of law, except as
specified in subdivision (d), this section applies to all fees and
fines collected pursuant to Sections 116.390, 116.570, 116.760,
116.860, 177.5, 491.150, 704.750, 708.160, 724.100, 1134, 1161.2, and
1218 of the Code of Civil Procedure, Sections 26824, 26828, 26829,
26834, and 72059 of this code, and Sections 166 and 1214.1 of the
Penal Code.
   (3) If any of the fees provided for in this subdivision are
partially waived by court order, and the fee is to be divided between
the Trial Court Trust Fund and any other fund, the amount of the
partial waiver shall be deducted from the amount to be distributed to
each fund in the same proportion as the amount of each distribution
bears to the total amount of the fee.
   (d) This section does not apply to that portion of a filing fee
collected pursuant to Section 26820.4, 26826, 26827, 72055, or 72056
which is allocated for dispute resolution pursuant to Section 470.3
of the Business and Professions Code, the county law library pursuant
to Section 6320 of the Business and Professions Code, the Judges'
Retirement Fund pursuant to Section 26822.3, automated recordkeeping
or conversion to micrographics pursuant to Sections 26863 and
68090.7, and courthouse financing pursuant to Section 76238. This
section also does not apply to fees collected pursuant to
subdivisions (a) and (c) of Section 27361.
   (e) This section applies to all payments required to be made to
the State Treasury by any county or city and county pursuant to
Section 77201, 77201.1, or 77205.
   (f) Notwithstanding any other provision of law, no agency may take
action to change the amounts allocated to any of the funds described
in subdivision (a), (b), (c), or (d).
   (g) The Judicial Council shall reimburse the Controller for the
actual administrative costs that will be incurred under this section.
Costs reimbursed under this section shall be determined on an annual
basis in consultation with the Judicial Council.
   (h) Any amounts required to be transmitted by a county or city and
county to the state pursuant to this section shall be remitted to
the Controller no later than 45 days after the end of the month in
which the fees were collected.  This remittance shall be accompanied
by a remittance advice identifying the collection month and the
appropriate account in the Trial Court Trust Fund to which it is to
be deposited. Any remittance that is not made by the county or city
and county in accordance with this section shall be considered
delinquent, and subject to the penalties specified in this section.
   (i) Upon receipt of any delinquent payment required pursuant to
this section, the Controller shall calculate a penalty on any
delinquent payment by multiplying the amount of the delinquent
payment at a daily rate equivalent to 1 1/2 percent per month for the
number of days the payment is delinquent. Notwithstanding Section
77009, any penalty on a delinquent payment that a court is required
to reimburse to a county's general fund pursuant to this section and
Section 24353 shall be paid from the Trial Court Operations Fund for
that court.
   (j) Penalty amounts calculated pursuant to subdivision (i) shall
be paid by the county to the Trial Court Trust Fund no later than 45
days after the end of the month in which the penalty was calculated.

   (k) The Trial Court Trust Fund shall be invested in the Surplus
Money Investment Fund and all interest earned shall be allocated to
the Trial Court Trust Fund quarterly and shall be allocated among the
courts in accordance with the requirements of subdivision (a). The
specific allocations shall be specified by the Judicial Council.
   (l) It is the intent of the Legislature that the revenues required
to be deposited into the Trial Court Trust Fund be remitted as soon
after collection by the courts as possible.
  SEC. 43.  Section 68085.5 of the Government Code is amended to
read:
   68085.5.  (a) Notwithstanding any other provision of law, except
subdivision (h) and Section 68085.6, the fees and fines collected
pursuant to Sections 116.390, 116.570, 116.760, 116.860, 491.150,
704.750, 708.160, 724.100, 1134, and 1161.2 of the Code of Civil
Procedure, Sections 26824, 26828, 26829, 26834, and 72059 of the
Government Code, and Section 1835 of the Probate Code, that are not
part of a local revenue sharing agreement or practice shall be
deposited in a special account in the county treasury and transmitted
therefrom monthly to the Controller for deposit in the Trial Court
Trust Fund.
   (b) Notwithstanding any other provision of law, except subdivision
(h) and Section 68085.6, the fees and fines collected pursuant to
Sections 26827.6, 26827.7, 26840.1, 26847, 26854, 26855.1, 26855.2,
26859, 27293, 71386, and 72061 of the Government Code, Section 103470
of the Health and Safety Code, Sections 1203.4 and 1203.45 of the
Penal Code, Sections 2343, 7660, and 13201 of the Probate Code, and
Section 14607.6 of the Vehicle Code, that are not subject to a local
revenue sharing agreement or practice, shall be deposited in a
special account in the county treasury.
   (c) However, if a superior court incurs the cost or provides the
services specified in subdivision (b), the fees and fines collected
shall be transmitted from the special account in the county treasury
monthly to the Controller for deposit in the Trial Court Trust Fund.

   (d) (1) Until July 1, 2005, each superior court and each county
shall maintain the distribution of revenue from the fees specified in
subdivisions (a) and (b) that is in effect pursuant to an agreement
or practice that is in place at the time this section takes effect.
   (2) In order to ensure that expenditures from revenue sharing
agreements are consistent with Judicial Council fiscal and budgetary
policy, the Administrative Director of the Courts shall review and
approve all distribution of revenue agreements that are negotiated
after the effective date of this section. If approval of an agreement
negotiated after the effective date of this section is not granted,
the director shall advise the court and county of the reasons for not
granting approval and suggest modifications that will make the
agreement consistent with the Judicial Council fiscal and budgetary
policies.
   (e) The Administrative Office of the Courts and the California
State Association of Counties shall jointly determine and administer
on or after January 1, 2004, and on or after January 1, 2005, all of
the following:
   (1) The amount of revenue that was deposited in the Trial Court
Trust Fund pursuant to subdivisions (a) and (b) during the calendar
year that just ended.
   (2) The difference between the amount specified in subdivision (c)
and thirty-one million dollars ($31,000,000).
   (3) A county-by-county transfer of the amount specified in
paragraph (2) to the Trial Court Trust Fund in two equal
installments, on February 15 and May 15, in each fiscal year.
   (4) Any payment to correct for an overpayment or underpayment made
for the 2003-04 fiscal year, shall be paid to the appropriate party
on or before September 15, 2004. Any payment to correct for an
overpayment or underpayment made for the 2004-05 fiscal year, shall
be paid to the appropriate party on or before November 15, 2005.
   (5) The sum of the amounts specified in paragraphs (1) and (2) may
not exceed thirty-one million dollars ($31,000,000), and shall be
deposited in the Trial Court Trust Fund.
   (6) Counties that have not paid amounts billed under this section
for the 2003-04 or 2004-05 fiscal year shall pay the amounts still
owing to the Trial Court Trust Fund on or before September 1, 2005.
If payment is not received on or before September 1, 2005, it shall
be considered delinquent and subject to the penalties set forth in
Section 68085.
   (7) Penalty amounts calculated under paragraph (6) shall be paid
by the county or the city and county to the Trial Court Trust Fund no
later than 45 days after the end of the month in which the penalty
was calculated.
   (f) Each superior court and each county shall provide detailed
quarterly reports of the revenues generated by the fees and fines
specified in subdivisions (a) and (b), Sections 177.5 and 1218 of the
Code of Civil Procedure, and Sections 166 and 1214.1 of the Penal
Code. The reports shall include the total amount collected and
retained by the court or county and the existing distribution of
those fees.
   (g) No other transfers of the fees and fines specified in
subdivisions (a) and (b), Sections 177.5 and 1218 of the Code of
Civil Procedure, and Sections 166 and 1214.1 of the Penal Code shall
take effect prior to July 1, 2005.
   (h) This section does not apply to fees and fines specified in
subdivisions (a), (b), and (f) that are collected on or after July 1,
2005.
   (i) Nothing in this section shall be deemed to alter or make void
the shift of responsibility for court funding from the counties to
the state.
  SEC. 44.  Section 68085.6 is added to the Government Code, to read:

   68085.6.  (a) Commencing July 1, 2005, the counties' obligation to
remit to the Trial Court Trust Fund each fiscal year the difference
between thirty-one million dollars ($31,000,000) and the amount
remitted to the Trial Court Trust Fund under Section 68085.5 shall
expire. The counties thereafter shall be obligated to remit to the
Trial Court Trust Fund the following amounts:
   (1) In the 2005-06 fiscal year, twenty million dollars
($20,000,000).
   (2) In the 2006-07 fiscal year, fifteen million dollars
($15,000,000).
   (3) In the 2007-08 fiscal year, ten million dollars ($10,000,000).

   (4) In the 2008-09 fiscal year, five million dollars ($5,000,000).

   (5) In the 2009-10 fiscal year and thereafter, the obligation
shall expire.
   (b) If the amounts remitted annually to the Trial Court Trust
Fund, pursuant to subdivision (a) of this section, and the amendments
made to Section 68085.5 of the Government Code and Section 1214.1 of
the Penal Code by the act that added this section, are less than the
differences between thirty-one million dollars ($31,000,000) and the
amounts specified in paragraphs (1) to (5), inclusive, of
subdivision (a), no additional state funds shall be appropriated to
the courts to mitigate these revenue shortfalls.
   (c) In the 2005-06 fiscal year, the amount described in paragraph
(1) of subdivision (a) shall be remitted to the Trial Court Trust
Fund in two equal installments on February 15, 2006, and May 15,
2006. In each subsequent fiscal year, the amount described in
subdivision (a) shall be remitted to the Trial Court Trust Fund in
four equal installments, due on October 1, January 1, April 1, and
May 1. Each county shall pay the installments from all available
resources, including the county's general fund.
   (d) Any payment to correct for an overpayment or underpayment made
in any fiscal year shall be paid to the appropriate party on or
before November 15 of the subsequent fiscal year.
   (e) All moneys required to be paid to the Trial Court Trust Fund
under this section shall be considered delinquent if not paid by the
dates specified in this section, and shall be subject to the
penalties set forth in Section 68085.
   (f) Penalty amounts calculated under subdivision (e) shall be paid
by the county or the city and county to the Trial Court Trust Fund
no later than 45 days after the end of the month in which the penalty
was calculated.
   (g) The portion of the amount in subdivision (a) to be paid by
each county shall be determined by the Administrative Office of the
Courts (AOC) and the California State Association of Counties (CSAC)
with the following conditions:
   (1) Any county that did not receive a reduction of county
remittances for support of trial courts to compensate for loss of
civil assessment revenue under Section 68085.7 shall not be required
to make any payments under this section.
   (2) No county's payment in any year, commencing in the 2005-06
fiscal year, shall be greater than 90 percent of the annual payment
that county was required to pay toward the thirty-one million dollars
($31,000,000) in subdivision (e) of Section 68085.5 as it read on
January 1, 2004.
   (3) The AOC and the CSAC shall determine the portion of the
amounts in subdivision (a) to be paid by each county on or before
October 31, 2005. If the AOC and the CSAC do not agree on the
portions, they may request a mutually agreed-upon third party to
arbitrate and determine the portion for each county. The portions
shall be determined on or before December 31, 2005.
   (h) On or before June 30, 2006, the AOC and the CSAC shall agree
upon a methodology to determine whether the growth in revenue to the
Trial Court Trust Fund created by the transfer of revenues under this
section and Section 68085.7 has significantly exceeded projected
levels so that a reduction in the counties' obligation under
paragraph (4) of subdivision (a) should be recommended to the
Legislature.
   (i) Nothing in this section shall be deemed to alter or make void
the shift of responsibility for court funding from the counties to
the state.
  SEC. 45.  Section 68085.7 is added to the Government Code, to read:

   68085.7.  (a) Notwithstanding any other provision of law, Section
68085.5 does not apply to the following fees and fines collected on
or after July 1, 2005: any fees and fines specified in subdivision
(a) or (b) of Section 68085.5, Section 177.5 or 1218 of the Code of
Civil Procedure, or Section 166 or 1214.1 of the Penal Code.
Commencing July 1, 2005, these fees and fines shall be distributed as
provided by Section 68085 or, if no provision is made is Section
68085, the section that provides for the fee or fine.
   (b) Commencing July 1, 2005, in each fiscal year, the amount of
each county's annual remittance to the state Trial Court Trust Fund
under paragraph (2) of subdivision (b) of Section 77201.1 shall be
reduced by the amount that the county received from civil assessments
under Section 1214.1 of the Penal Code, after deducting the cost of
collecting those civil assessments as defined in subdivision (f), in
the 2003-04 fiscal year. The reduction provided by this subdivision
for the 2005-06 fiscal year shall apply only to a county that
transmits to the Trial Court Trust Fund any money received by the
county between July 1, 2005 and the effective date of this section
that would have been transmitted to the Trial Court Trust Fund
pursuant to subdivision (a), and the amendments to Section 68085 of
this code and Section 1214.1 of the Penal Code, if this section had
been effective on July 1, 2005.
   (c) The amount of the reduction under this section for each county
shall be determined by agreement between the Administrative Office
of the Courts (AOC) and the California State Association of Counties
(CSAC). Each county and each superior court shall exchange relevant
factual information to determine and jointly report to the AOC and
the CSAC the total amount the county received from civil assessments
for the 2003-04 fiscal year, both gross and net after costs, on or
before August 31, 2005. If the court and the county do not agree on
the amount, the court and the county shall each report the amount
each believes is correct to the AOC and the CSAC on or before August
31, 2005.
   (d) The AOC and the CSAC shall agree on the amount of the
reduction for each county under this section on or before October 31,
2005. If a court or county disagrees with the amount agreed to by
the AOC and the CSAC for that county, the court or county may appeal
to the AOC and the CSAC for an adjustment. The AOC and the CSAC shall
determine whether to make any requested adjustment.
   (e) If the AOC and the CSAC do not agree on the amount of the
reduction for a county, they may request a mutually agreed-upon third
party to arbitrate and determine the amount. The amount shall be
determined on or before December 31, 2005.
   (f) Guidelines of the Controller shall apply to the determination
of revenues from civil assessments under Section 1214.1 of the Penal
Code. The costs of collecting civil assessments applied in
determining net                                          civil
assessments are only those costs used to collect those civil
assessments.
  SEC. 46.  Section 68085.8 is added to the Government Code, to read:

   68085.8.  (a) On or before December 31, 2005, the Administrative
Office of the Courts (AOC) and the California State Association of
Counties (CSAC) shall complete an initial review of the impact upon
individual counties and courts of the changes in revenue
distributions and payment obligations under Sections 68085.6, and
68085.7 for the purpose of correcting inequities that may result from
these changes. The AOC and CSAC shall work with counties and courts
to develop and implement procedures to correct inequities resulting
from either the implementation of these changes or any changes in the
provision of services or benefits under any of the following
circumstances:
   (1) Institution of new civil assessment programs after the 2003-04
fiscal year.
   (2) Substantial impacts on memoranda of understanding or other
agreements that are existing or pending as of June 10, 2005, or
practices in effect at that time, which agreements and practices
contemplate the use of revenues transferred under the act that added
this section.
   (3) The demonstration by clear evidence that the information used
as the basis for determining a reduction under Section 68085.7, or
for determining a county's obligation under Section 68085.6, results
in an inequity, and that the inequity imposes an undue hardship on
the court or county.
   (b) Inequities may be corrected by one or more of the following
mechanisms:
   (1) Adjustment of the reduction under subdivision (b) of Section
68085.7.
   (2) Adjustment of the amount of a county's obligation under
subdivision (a) of Section 68085.6.
   (3) Adjustment of allocations to a trial court to the Trial Court
Trust Fund under subdivision (a) of Section 68085.
   (4) If necessary, with agreement of the court and county,
adjustments of the rights and duties of the parties under memoranda
of understanding or other agreements or practices.
   The adjustments under paragraphs (1) to (4), inclusive, may be
temporary or permanent. Adjustments under this section shall be made
only with the mutual agreement of the AOC and CSAC.
  SEC. 47.  Section 69926.5 of the Government Code is amended to
read:
   69926.5.  (a) To ensure and maintain adequate funding for court
security, a surcharge of twenty dollars ($20) is added to the total
fee collected pursuant to Section 26820.4, 26826, 26827, 72055, or
72056.
   (b) In addition to the surcharge in subdivision (a), a surcharge
of twenty dollars ($20) is added to the total filing fee collected in
a case pursuant to Section 26820.4, 26826, or 26827, a surcharge of
twenty dollars ($20) is added to the total filing fee collected in a
limited civil case pursuant to Section 72055 or 72056 where the
amount demanded, excluding attorney's fees and costs, is in excess of
ten thousand dollars ($10,000), and a surcharge of ten dollars ($10)
is added to the total filing fee collected in a limited civil case
pursuant to Section 72055 or 72056 where the amount demanded,
excluding attorney's fees and costs, is ten thousand dollars
($10,000), or less. The surcharges in this subdivision shall be
collected in cases filed from January 1, 2004, to June 30, 2006,
inclusive. The purpose of this surcharge is to stabilize funding for
court security at the current level and is not intended to increase
the funding available for court security in the 2004-05 and 2005-06
fiscal years. This subdivision shall become inoperative on July 1,
2006, or upon the enactment of a uniform filing fee, whichever is
earlier.
   (c) Notwithstanding any other provision of law, the surcharges
collected pursuant to subdivisions (a) and (b) shall all be deposited
in a special account in the county treasury, and transmitted
therefrom monthly to the Controller for deposit in the Trial Court
Trust Fund.
  SEC. 48.  Section 71386 of the Government Code is amended to read:

   71386.  (a) Each superior court shall adopt a written policy,
consistent with rules adopted by the Judicial Council, governing the
acceptance of checks and money orders in payment of any fees, fines,
or bail deposits. The policy shall permit clerks to accept checks and
money orders under conditions that tend to assure their validity.
   (b) A court shall accept a personal check, bank cashier's check,
or money order for payment of any fee or fine, or for a deposit of
bail for any offense that is not declared to be a felony, provided
the check or money order meets the criteria established in
subdivision (a). However, no court shall be required to accept a
check in excess of three hundred dollars ($300) from a defendant in
custody as a deposit of bail for any alleged violation of the Penal
Code.
   (c) The acceptance of a check pursuant to this section constitutes
payment of the obligation owed to the payee public agency to the
extent of the amount of the check as of the date of acceptance when,
but not before, the check is duly paid.
   (d) If any check offered in payment pursuant to this section is
returned to the payee without payment, a reasonable charge for the
returned check not to exceed the actual costs incurred may be imposed
to recover the processing and collection costs. This charge may be
added to, and become part of, any underlying obligation other than an
obligation that constitutes a lien on real property, or a different
method of payment for that payment and future payments by that person
may be prescribed. If the costs are incurred by the county, the
charges imposed by a court for a returned check shall be retained by
the treasurer of the county and be deposited in the county general
fund. If the costs are incurred by the court, the charges imposed for
a returned check shall be distributed to the court.
  SEC. 49.  Section 50517.10 of the Health and Safety Code is amended
to read:
   50517.10.  (a) The department shall use the funds allocated
pursuant to clause (ii) of subparagraph (A) of paragraph (4) of
subdivision (a) of Section 53533 to fund a program that uses
innovative, cost-effective mechanisms to provide migrant farmworkers
with affordable, durable, low-maintenance housing options. It is the
intent of the Legislature that the department conduct outreach and
provide technical assistance to facilitate expedient use of these
funds. For the purpose of this subdivision, the department may assist
housing projects that meet the following criteria:
   (1) Are located on sites that permit occupancy by agricultural
employees pursuant to Section 17021.5 or 17021.6.
   (2) Consist of alternative housing types that meet state and
federal standards for livability and durability, including
manufactured housing, factory-built housing, other forms of
prefabricated housing, motel conversions, and dormitory- and
barracks-style housing in which residents share common cooking and
sanitary facilities.
   (3) Provide affordable replacement housing alternatives for
migrant farmworkers who face displacement from existing labor camps,
mobilehome parks, or other housing because of the existence of
conditions that are a danger to the health and safety of the
residents due to overcrowding, lack of adequate infrastructure, or
substantial violations of health and safety standards or because of
the retirement or fallowing of agricultural land.
   (4) Consist of a migrant housing center in which migrant
farmworkers are provided with job, child care, educational, medical,
and other social service referrals.
   (5) Consist of any other type of migrant housing permitted by this
chapter.
   (6) Consist of new migrant farmworker housing centers or other new
migrant housing authorized by Chapter 8.5 (commencing with Section
50710). The department shall, to the maximum extent possible, develop
new migrant housing within developed areas of agricultural
communities and near essential social services such as schools,
transportation, and health care.
   (b) In providing financing for purposes of subdivision (a), the
department may do any of the following:
   (1) Make no-interest deferred loans to agricultural employers who
assume responsibility for paying or securing the operating costs of
migrant housing assisted pursuant to this section, with payment
deferred until the housing is no longer used to house migrant
farmworkers for at least 90 days each year or 20 years, whichever is
less, with up to one-half of the loan being forgivable after 20 years
and a proportionately lower percentage of the loan being forgivable
for periods of occupancy of 10 years to 20 years.
   (2) Make loans or grants to local agencies, nonprofit entities, or
limited partnerships or to joint ventures of agricultural employers
and local agencies or nonprofit entities.
   (3) Permit the housing to be used by persons other than migrant
farmworkers, when not in use by migrant farmworkers.
   (4) Waive the requirement that the applicant make a matching
contribution.
   (5) Permit the applicant to deposit funds in a reserve account to
defray unanticipated cost increases or revenue shortfalls to the
extent necessary to maintain the fiscal integrity of the housing or
to cure or avoid a default on any loan or other obligation.
   (6) Permit as eligible costs, the cost of development,
redevelopment, acquisition, rehabilitation, land purchase, options to
buy land, professional services, permit and application fees and
bonding, site preparation, water, sewer, and associated
infrastructure development, improvements to common areas, reasonable
consulting fees, permanent financing, and reserves.
   (7) Establish maximum rent levels by type of housing and an annual
rent adjustment formula using an inflation index adopted by the
department.
   (c) In addition to the purposes specified in subdivision (a) of
Section 50517.5, the department may make grants and loans under the
Joe Serna, Jr. Farmworker Housing Grant Program to local public
entities and nonprofit corporations in order to establish capitalized
operating reserves for short-term occupancy housing for migrant
farmworker households, purchase land for, and construct, housing
structures for short-term occupancy by migrant farmworker households,
lease or purchase existing structures for short-term occupancy by
migrant farmworker households, and, where the department determines
that extraordinary or emergency circumstances exist, directly rent or
lease housing for short-term occupancy by migrant farmworker
households.
  SEC. 50.  Section 50601 of the Health and Safety Code is amended to
read:
   50601.  (a) The Preservation Opportunity Fund is hereby created in
the State Treasury. Notwithstanding Section 13340 of the Government
Code, all money in the fund is continuously appropriated to the
department without regard to fiscal years for the purposes of this
chapter and for costs incurred in administering the program. The
combined administrative expenses of the department and the agency
shall not exceed 5 percent of the funds deposited in the fund for the
purposes of this chapter.
   (b) The following shall be paid into the fund:
   (1) Any money appropriated and made available by the Legislature
for purposes of the fund.
   (2) Any money that the department or the agency receives in
repayment of loans from the fund, including interest therefrom,
except as provided in subdivision (f) of Section 50603.
   (3) Any other money that may be made available to the department
for the purposes of this chapter from any other source.
  SEC. 51.  Section 50603 of the Health and Safety Code is amended to
read:
   50603.  (a) There is hereby created the Preservation Opportunity
Program.
   (b) The department shall contract with the agency for the
administration of this section, and the agency shall establish the
terms upon which loans may be made consistent with this section.
   (c) A project shall meet all of the following requirements to be
eligible for a loan:
   (1) It shall be an assisted housing development.
   (2) The borrower shall, in conjunction with this loan, receive a
loan from the agency's Preservation Acquisition Program for the
acquisition of this project.
   (3) The borrower shall agree to obligate itself and any successors
in interest to maintain the affordability of the assisted housing
development for households of very low, low, or moderate income for a
term of not less than 30 years. To the extent economically feasible,
the development shall be continuously occupied in the approximate
percentages that those households have occupied that development as
of the date of acquisition by the purchaser or the approximate
percentages specified in existing federal, state, or locally imposed
use restrictions, whichever is higher.  This obligation shall be
recorded at the close of escrow in the office of the county recorder
of the county in which the development is located. In addition, the
regulatory agreement shall contain provisions requiring the renewal
of rental subsidies, if they are available and are provided at a
level sufficient to maintain the project's fiscal viability. Nothing
in this paragraph shall be construed to require the future income
restriction of units unrestricted under the new regulatory agreement
required by this subdivision.
   (d) Projects that meet the requirements of subdivision (c) shall
be evaluated for funding based on their ability to address the
following priorities:
   (1) First priority shall be given to projects whose rent
restrictions have expired or are eligible to expire within two years
of application for a loan under this program.
   (2) Second priority shall be given to projects with rent
restrictions expiring within five years.
   (e) The loans for assisted housing developments under this section
shall include the following terms:
   (1) The agency shall determine the term of the loan. A loan may
not exceed a term of two years, unless the agency determines, in its
discretion, that a longer term is required to do both of the
following:
   (A) To preserve the affordability of a project.
   (B) To ensure the financial viability of a project.
   (2) The rate of interest shall not exceed 3 percent per annum on
the unpaid balance for that portion of the loan made with General
Fund or general obligation bond moneys. The rate of interest for
portions of the loan made with non-General Fund, nongeneral
obligation bond moneys shall be established by the agency.
   (3) Simple interest shall accrue but be deferred until loan
maturity or transfer of the property.
   (4) Any other terms and provisions that the agency may deem
proper.
   (f) Notwithstanding paragraph (2) of subdivision (b) of Section
50601, with the exception of five million dollars ($5,000,000), all
money that the agency receives in repayment of loans made with funds
from the Housing and Emergency Shelter Trust Fund Act of 2002 shall
be deposited into the Housing Rehabilitation Loan Fund created by
Section 50661 for use in the Multifamily Housing Program. The five
million dollars ($5,000,000) remaining in the Preservation
Opportunity Fund and subsequent interest payments on loans made from
this five million dollars ($5,000,000) shall be made available for
the purposes of the Preservation Opportunity Program through at least
December 31, 2008, at which time the agency may, based on an
analysis of need, either continue to make these funds available for
the purposes of the Preservation Opportunity Program or transfer all
remaining funds to the Housing Rehabilitation Loan Fund for use in
the Multifamily Housing Program.
  SEC. 52.  Section 50710.1 of the Health and Safety Code is amended
to read:
   50710.1.  (a) If all the development costs of any migrant farm
labor center assisted pursuant to this chapter are provided by
federal, state, or local grants, and if inadequate funds are
available from any federal, state, or local service to write-down
operating costs, the department may approve rents for that center
that are in excess of rents charged in other centers assisted by the
Office of Migrant Services. However, notwithstanding any other
provision of law, commencing with the 2006 growing season, the
department shall not increase rents for residents of any facility
assisted by the Office of Migrant Services to a level that exceeds 30
percent of the average annualized household incomes of residents of
the facility without specific legislative authorization. Prior to
approving these rents, the department shall consider the adequacy of
evidence presented by the entity operating the center that the rents
reimburse actual, reasonable, and necessary costs of operation.
   (b) At the end of each fiscal year, any entity operating a migrant
farm labor center pursuant to this chapter may establish a reserve
account comprised of the excess funds provided through the annual
operating contract received from the department if the department
certifies there is no need to address reasonable general maintenance
requirements or repairs, rehabilitation, and replacement needs of the
requesting migrant farm labor center which affect the immediate
health and safety of residents. The cumulative balance of the reserve
account shall not exceed 10 percent of the annual operating funds
annually committed to the entity by the department. Funds in the
reserve account shall be used only for capital improvements such as
replacing or repairing structural elements, furniture, fixtures, or
equipment of the migrant farm labor center, the replacement or repair
of which are reasonably required to preserve the migrant farm labor
center. Withdrawals from the reserve account shall be made only upon
the written approval of the department of the amount and nature of
expenditures.
   (c) A migrant farm labor center governed by this chapter may be
operated for an extended period prior to or beyond the standard
180-day period after approval by the department, provided that all of
the following conditions are satisfied:
   (1) No additional subsidies provided by the department are used
for the operation or administration of the migrant farm center during
the extended occupancy period except to the extent that state funds
are appropriated or authorized for the purpose of funding all or part
of the cost of subsidizing extended occupancy periods during the
first 14 days only.
   (2) Rents are not to be increased above the rents charged during
the standard 180-day occupancy period unless the department finds
that an increase is necessary to cover the difference between
reasonable operating costs necessary to keep the center open during
the extended occupancy period and the amount of state funds available
pursuant to paragraph (1) and any contributions from agricultural
employers or other federal, local, or private sources. These
contributions shall not be used to reduce the amount of state funds
that otherwise would be made available to the center to subsidize
rents during an extended occupancy period.
   (3) In no event shall the rent during the extended occupancy
period exceed the average daily operating cost of the center, less
any subsidy funds available pursuant to paragraph (1) or (2). With
respect to an extended occupancy beyond the standard 180-day period,
households representing at least 25 percent of the units in the
center shall have indicated their desire and intention to remain in
residency by signing a petition to the local entity to keep the
center open for an extended period at rents that are the same or
higher than rents during the regular period of occupancy. Each
household shall receive a clear bilingual notice describing the
extended occupancy options attached to the lease.
   The Legislature finds and declares that because the number of
residents may be substantially reduced during the extended occupancy
period, a rent increase may be necessary to cover operating costs. It
is the intent of the Legislature that the public sector, private
sector, and farmworkers should each play an important role in
ensuring the financial viability of this important source of needed
housing.
   (4) An extended occupancy period is requested by an entity
operating the migrant farm labor center and received by the
department no earlier than 30 days and no later than 15 days prior to
the center's scheduled opening or closing date. The department shall
notify the entity and petitioning residents of the final decision no
later than seven days prior to the center's scheduled opening or
closing date. During the extended occupancy period, occupancy shall
be limited to migrant farmworkers and their families who resided or
intended to reside at a migrant center during the regular period of
occupancy.
   (5) Before approving or denying an early opening or an extension
and establishing the rents for the extended occupancy period, both of
which shall be within the sole discretion of the department, the
department shall take into consideration all of the following
factors:
   (A) The structural and physical condition of the center, including
water and sewer pond capacity and the capacity and willingness of
the local entity to operate the center during the extended occupancy
period.
   (B) Whether local approvals are required, and whether there are
competing demands for the use of the center's facilities.
   (C) Whether there is adequate documentation that there is a need
for residents of the migrant center to continue work in the area, as
confirmed by the local entity.
   (D) The climate during the extended occupancy period.
   (E) The amount of subsidy funds available that can be allocated to
each center to subsidize rents below the operating costs and the
cost of operating each center during the extended occupancy period.
   (F) The extended occupancy period is deemed necessary for the
health and safety of the migrant farmworkers and their families.
   (G) Other relevant factors affecting the migrant farmworkers and
their families and the operation of the centers.
   (6) The rents collected during the extended occupancy period shall
be remitted to the department. However, based on financial records
to the satisfaction of the department, the department may reduce the
amount to be remitted by an amount it determines the local entity has
expended during the extended occupancy period that is not being
reimbursed by department funds.
   (7) The occupancy during the extended occupancy period represents
a new tenancy and is not subject to existing and statutory and
regulatory limitations governing rents. Prior to the beginning of the
extended occupancy period, residents shall be provided at least two
days' advance written notice of any rent increase and of the expected
length of the extended occupancy period, including the scheduled
date of the beginning of the extended occupancy period and closure of
the center. Prior to being eligible for residency during the
extended occupancy period, residents shall sign rental documents
deemed necessary by the department.
   (d) The Legislature finds and declares that variable annual
climates and changing agricultural techniques create an inability to
accurately predict the end of a harvest season for the purposes of
housing migrant farmworkers and their families. Because of these
factors, in any part of this state, and in any specific year, one or
more migrant farmworker housing centers governed by this chapter need
to open early or remain open for up to two additional weeks to allow
the residents to provide critical assistance to growers in
harvesting crops while also fulfilling work expectations that
encouraged them to migrate to the areas of the centers. In addition,
if the centers close prematurely or open late, the migrant
farmworkers often must remain or reside in the areas to work for up
to two weeks. During this time they will not be able to obtain
decent, safe, and affordable housing and the health and safety of
their families and the surrounding community will be threatened.
   The Legislature therefore finds and declares that, for the
purposes of any public or private right, obligation, or authorization
related to the use of property and improvements thereon as a 180-day
migrant center, an extended use of any housing center governed by
this chapter pursuant to this section is deemed to be the same as the
180-day use generally authorized by this chapter.
   (e) Because of the presumed income levels of the occupants of
migrant farm labor centers, an entity operating a migrant farm labor
center shall be deemed eligible for the California Alternative Rates
for Energy program established pursuant to Sections 382 and 739.1 of
the Public Utilities Code. Any savings from a reduction in energy
rates shall be passed on to the occupants of the migrant farm labor
center.
  SEC. 53.  Section 53533 of the Health and Safety Code is amended to
read:
   53533.  (a) Money deposited in the fund from the sale of bonds
pursuant to this part shall be allocated for expenditure in
accordance with the following schedule:
   (1) Nine hundred ten million dollars ($910,000,000) shall be
transferred to the Housing Rehabilitation Loan Fund to be expended
for the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, except for the following:

   (A) Fifty million dollars ($50,000,000) shall be transferred to
the Preservation Opportunity Fund and, notwithstanding Section 13340
of the Government Code, is continuously appropriated without regard
to fiscal years for the preservation of at-risk housing pursuant to
Chapter 5 (commencing with Section 50600) of Part 2.
   (B) Twenty million dollars ($20,000,000) shall be used for
nonresidential space for supportive services, including, but not
limited to, job training, health services, and child care within, or
immediately proximate to, projects to be funded under the Multifamily
Housing Program. This funding shall be in addition to any applicable
per -unit or project loan limits and may be in the form of a grant.
Service providers shall ensure that services are available to project
residents on a priority basis over the general public.
   (C) Twenty-five million dollars ($25,000,000) shall be used for
matching grants to local housing trust funds pursuant to Section
50843.
   (D) Fifteen million dollars ($15,000,000) shall be used for
student housing through the Multifamily Housing Program, subject to
the following provisions:
   (i) The department shall give first priority for projects on land
owned by a University of California or California State University
campus. Second priority shall be given to projects located within one
mile of a University of California or California State University
campus that is suffering
from a severe shortage of housing and limited availability of
developable land as determined by the department. Those
determinations shall be set forth in the Notice of Funding
Availability and shall not be subject to the requirements of Chapter
3.5 (commencing with Section 11340) of Part 1 of Title 2 of the
Government Code.
   (ii) All funds shall be matched on a one-to-one basis from private
sources or by the University of California or California State
University. For the purposes of this subparagraph, "University of
California" includes the Hastings College of the Law.
   (iii) Occupancy for the units shall be restricted to students
enrolled on a full-time basis in the University of California or
California State University.
   (iv) Income eligibility pursuant to the Multifamily Housing
Program shall be established by verification of the combined income
of the student and his or her family.
   (v) Any funds not used for this purpose within 24 months of the
date that the funds are made available shall be awarded pursuant to
subdivision (a) for the Downtown Rebound Program as set forth in
paragraph (1) of subdivision (c) of Section 50898.2.
   (E) Any funds not encumbered for the purposes set forth in this
paragraph, except subparagraph (D), within 30 months of availability
shall revert to the Housing Rehabilitation Loan Fund created by
Section 50661 for general use in the Multifamily Housing Program.
   (2) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Emergency Housing and Assistance Fund to be
expended for the Emergency Housing and Assistance Program authorized
by Chapter 11.5 (commencing with Section 50800 of Part 2).
   (3) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Housing Rehabilitation Loan Fund to be expended
for supportive housing projects under the Multifamily Housing
Program authorized by Chapter 6.7 (commencing with Section 50675) of
Part 2, to serve individuals and households moving from emergency
shelters or transitional housing or those at risk of homelessness.
   (4) Two hundred million dollars ($200,000,000) shall be
transferred to the Joe Serna, Jr. Farmworker Housing Grant Fund to be
expended for farmworker housing programs authorized by Chapter 3.2
(commencing with Section 50517.5) of Part 2, except for the
following:
   (A) Twenty-five million dollars ($25,000,000) shall be used for
projects that serve migratory agricultural workers as defined in
subdivision (i) of Section 7602 of Title 25 of the California Code of
Regulations. If, after July 1, 2003, funds remain after the approval
of all feasible applications, the department shall be deemed an
eligible recipient for the purposes of reconstructing migrant centers
operated through the Office of Migrant Services pursuant to Chapter
8.5 (commencing with Section 50710) that would otherwise be scheduled
for closure due to health or safety considerations or are in need of
significant repairs to ensure the health and safety of the
residents. Of the dollars allocated by this subparagraph, the
department shall receive fifteen million dollars ($15,000,000) for
these purposes subject to the following conditions and requirements:

   (i) The amount available to the department as a recipient shall be
limited to ten million seven hundred thousand dollars ($10,700,000)
prior to September 1, 2006. The department may receive up to four
million three hundred thousand dollars ($4,300,000) in additional
funds after that date and prior to July 1, 2007, to the extent that
unencumbered funds are available.
   (ii) The department shall make at least eight million one hundred
fifty-nine thousand dollars ($8,159,000) available for flexible loans
and grants for projects that serve migratory agricultural workers
pursuant to subdivision (a) of Section 50517.10. These funds shall be
available for encumbrance until September 1, 2006.
   (iii) Any funds allocated by this subparagraph remaining
unencumbered on July 1, 2007, shall revert for general use in the Joe
Serna, Jr. Farmworker Housing Grant Program.
   (B) Twenty million dollars ($20,000,000) shall be used for
developments that also provide health services to the residents.
Recipients of these funds shall be required to provide ongoing
monitoring of funded developments to ensure compliance with the
requirements of the Joe Serna, Jr. Farmworker Housing Grant Program.
Projects receiving funds through this allocation shall be ineligible
for funding through the Joe Serna, Jr. Farmworker Housing Grant
Program.
   (C) Except as provided in subparagraph (A) funds not encumbered
for the purposes set forth in this paragraph within 30 months of
availability shall revert for general use in the Joe Serna, Jr.
Farmworker Housing Grant Program.
   (5) Two hundred five million dollars ($205,000,000) shall be
transferred to the Self-Help Housing Fund.  Notwithstanding Section
13340 of the Government Code and Section 50697.1, these funds are
hereby continuously appropriated without regard to fiscal years to
the department to be expended for the purposes of the CalHome Program
authorized by Chapter 6 (commencing with Section 50650) of Part 2,
except for the following:
   (A) Seventy-five million dollars ($75,000,000) shall be
transferred to the Building Equity and Growth in Neighborhoods Fund
to be used for the Building Equity and Growth in Neighborhoods
(BEGIN) Program pursuant to Chapter 4.5 (commencing with Section
50860) of Part 1.
   (B) Five million dollars ($5,000,000) shall be used to provide
grants to cities, counties, cities and counties, and nonprofit
organizations to provide grants for lower income tenants with
disabilities for the purpose of making exterior modifications to
rental housing in order to make that housing accessible to persons
with disabilities. For the purposes of this subparagraph, "exterior
modifications" includes modifications that are made to entryways or
to common areas of the structure or property. The program provided
for under this subparagraph shall not be subject to the requirements
of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2
of the Government Code.
   (C) Ten million dollars ($10,000,000) shall be expended for
construction management under the California Self -Help Housing
Program pursuant to subdivision (b) of Section 50696.
   (D) Any funds not encumbered for the purposes set forth in this
paragraph within 30 months of availability shall revert for general
use in the CalHome Program.
   (6) Five million dollars ($5,000,000) shall be transferred to the
Housing Rehabilitation Loan Fund to be expended for capital
expenditures in support of local code enforcement and compliance
programs. This allocation shall not be subject to the requirements of
Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2 of
the Government Code.  If the moneys allocated pursuant to this
paragraph are not expended within three years after being
transferred, the department may, in its discretion, transfer the
moneys to the Housing Rehabilitation Loan Fund to be expended for the
Multifamily Housing Program.
   (7) Two hundred ninety million dollars ($290,000,000) shall be
transferred to the Self-Help Housing Fund.  Notwithstanding Section
50697.1, these funds are hereby continuously appropriated to the
agency to be expended for the purposes of the California Homebuyer's
Downpayment Assistance Program authorized by Chapter 11 (commencing
with Section 51500) of Part 3, except for the following:
   (A) Fifty million dollars ($50,000,000) shall be transferred to
the School Facilities Fee Assistance Fund as provided by subdivision
(a) of Section 51453 to be used for the Homebuyer Down Payment
Assistance Program of 2002 established by Section 51451.5.
   (B) Eighty-five million dollars ($85,000,000) shall be transferred
to the California Housing Loan Insurance Fund to be used for
purposes of Part 4 (commencing with Section 51600). The agency may
transfer these moneys as often as quarterly in amounts that shall not
exceed the dollar amount of new insurance written by the agency
during the preceding quarter for loans for the purchase of homes made
to owner-occupant borrowers with incomes not exceeding 120 percent
of the area median income, divided by the risk-to-capital ratio
required for the maintenance of satisfactory credit ratings from
nationally recognized credit rating services.
   (C) (i) Twelve million five hundred thousand dollars ($12,500,000)
shall be reserved for downpayment assistance to low-income
first-time home buyers who, as documented to the agency by a
nonprofit organization certified and funded to provide home ownership
counseling by a federally funded national nonprofit corporation, are
purchasing a residence in a community revitalization area targeted
by the nonprofit organization and who has received home ownership
counseling from the nonprofit organization. Community revitalization
areas shall be limited to targeted neighborhoods identified by
qualified nonprofit organizations as those neighborhoods in need of
economic stimulation, renovation, and rehabilitation through efforts
that include increased home ownership opportunities for low-income
families.
   (ii) Effective January 1, 2004, 50 percent of the funds available
pursuant to clause (i) shall be available for downpayment assistance
in an amount not to exceed 6 percent of the home sales price.
   (iii) After 12 months of availability, if more than 50 percent of
the funds set aside pursuant to clause (ii) have been encumbered, the
agency shall discontinue that program and make all remaining funds
available for downpayment assistance pursuant to clause (i). If,
however, less than 50 percent of the funds allocated pursuant to
clause (ii) are encumbered after that 12-month period, the agency
may, at its sole discretion, either make all remaining funds provided
pursuant to clause (i) available for the purpose of clause (ii), or
may continue to implement clause (ii) until all of the funds
allocated for that purpose as of January 1, 2004, have been
encumbered.
   (D) Twenty-five million dollars ($25,000,000) shall be used for
downpayment assistance pursuant to Section 51505. After 18 months of
availability, if the agency determines that the funds set aside
pursuant to this section will not be utilized for purposes of Section
51505, these funds shall be available for the general use of the
agency for the purposes of the California Homebuyer's Downpayment
Assistance Program, but may also continue to be available for the
purposes of Section 51505.
   (E) Funds not utilized for the purposes set forth in subparagraphs
(B) and (C) within 30 months shall revert for general use in the
California Homebuyer's Downpayment Assistance Program.
   (8) One hundred million dollars ($100,000,000) shall be
transferred to the Jobs Housing Improvement Account to be expended as
capital grants to local governments for increasing housing pursuant
to enabling legislation. If the enabling legislation fails to become
law in the 2001-02 Regular Session of the Legislature, the specified
allocation for this program shall be void and the funds shall revert
for general use in the Multifamily Housing Program as specified in
paragraph (1) of subdivision (a).
   (b) No portion of the money allocated pursuant to this section may
be expended for project operating costs, except that this section
does not preclude expenditures for operating costs from reserves
required to be maintained by or on behalf of the project sponsor.
   (c) The Legislature may, from time to time, amend the provisions
of law related to programs to which funds are, or have been,
allocated pursuant to this section for the purpose of improving the
efficiency and effectiveness of the program, or for the purpose of
furthering the goals of the program.
   (d) The Bureau of State Audits shall conduct periodic audits to
ensure that bond proceeds are awarded in a timely fashion and in a
manner consistent with the requirements of this part, and that
awardees of bond proceeds are using funds in compliance with
applicable provisions of this part.
  SEC. 54.  Section 96.7 of the Labor Code is amended to read:
   96.7.  The Labor Commissioner, after investigation and upon
determination that wages or monetary benefits are due and unpaid to
any worker in the State of California, may collect such wages or
benefits on behalf of the worker without assignment of such wages or
benefits to the commissioner.
   (a) The Labor Commissioner shall act as trustee of all such
collected unpaid wages or benefits, and shall deposit such collected
moneys in the Industrial Relations Unpaid Wage Fund.
   (b) The Labor Commissioner shall make a diligent search to locate
any worker for whom the Labor Commissioner has collected unpaid wages
or benefits.
   (c) All wages or benefits collected under this section shall be
remitted to the worker, his lawful representative, or to any trust or
custodial fund established under a plan to provide health and
welfare, pension, vacation, retirement, or similar benefits from the
Industrial Relations Unpaid Wage Fund.
   (d) Any unpaid wages or benefits collected by the Labor
Commissioner pursuant to this section shall be retained in the
Industrial Relations Unpaid Wage Fund until remitted pursuant to
subdivision (c), or until deposited in the General Fund.
   (e) The Controller shall, at the end of each fiscal year, transfer
to the General Fund the unencumbered balance, less six months of
expenditures as determined by the Director of Finance, in the
Industrial Relations Unpaid Wage Fund.
   (f) All wages or benefits collected under this section which
cannot be remitted from the Industrial Relations Unpaid Wage Fund
pursuant to subdivision (c) because money has been transmitted to the
General Fund shall be paid out of the General Fund from funds
appropriated for that purpose.
  SEC. 55.  Section 999.7 of the Military and Veterans Code is
amended to read:
   999.7.  (a) (1) On January 1 of each year, each awarding
department shall report to the Governor, the Legislature, the
Department of General Services, and the Department of Veterans
Affairs on the level of participation by disabled veteran business
enterprises in contracts identified in this article for the previous
fiscal year.
   (2) If the awarding department has not met the established goals
for that year, the awarding department shall report to the
Legislature, the Department of General Services, and the Department
of Veterans Affairs the reasons for the awarding department's
inability to achieve the goals and shall identify steps it shall take
in an effort to achieve the goals.
   (b) On April 1 of each year, the Department of General Services
shall prepare for the Governor, the Legislature, and the Department
of Veterans Affairs a statewide statistical summary detailing each
awarding department's goal achievement and a statewide total of those
goals.
   (c) This section shall remain in effect only until January 1,
2007, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2007, deletes or extends
that date.
  SEC. 56.  Section 1401 of the Military and Veterans Code is amended
to read:
   1401.  (a) For the purposes of Section 1400, the Shasta County
Board of Supervisors may join with other northern California counties
including, but not limited to, the Counties of Colusa, Del Norte,
Glenn, Humboldt, Lassen, Mendocino, Modoc, Plumas, Shasta, Sierra,
Siskiyou, Tehama, and Trinity, to design, develop, and construct the
cemetery.
   (b) All moneys received for the design, development, and
construction of the cemetery shall be deposited in the Northern
California Veterans Cemetery Master Development Fund, which is hereby
created in the State Treasury.  Notwithstanding Section 13340 of the
Government Code, money in the fund is continuously appropriated to
the department for the purpose of designing, developing,
constructing, and equipping the cemetery. Moneys appropriated by the
Legislature for these purposes shall also be deposited in the fund.
   (c) (1) All moneys received for the maintenance of the cemetery,
including moneys received pursuant to subdivision (b) of Section
1400, shall be deposited in the Northern California Veterans Cemetery
Perpetual Maintenance Fund, which is hereby created in the State
Treasury. Any state funding for the annual maintenance of the
cemetery shall be appropriated by the Legislature in the annual
Budget Act.
   (2) It is estimated that, after the construction of the cemetery,
four hundred fifty thousand dollars ($450,000) should be appropriated
annually by the state or the participating northern California
counties, or both, to the department for the operating costs of the
cemetery.
   (3) Total expenditures for operations and maintenance should not
be more than six hundred thousand dollars ($600,000) per fiscal year,
as appropriated in the annual Budget Act.
  SEC. 57.  Section 1402 is added to the Military and Veterans Code,
to read:
   1402.  (a) Proposals for the construction, placement, or donation
of monuments and memorials to the cemetery shall be subject to review
by an advisory committee comprised of the cemetery administrator,
representatives from the County of Shasta, local veterans' service
organizations, and others as approved by the director.
   (b) All proposals for the construction, placement, or donation of
monuments and memorials to the cemetery shall be subject to the
approval of the director.
   (c) The department shall adopt regulations for the policies and
procedures to be followed with respect to the design, placement, and
approval of monuments and memorials proposed to be placed on the
cemetery grounds.
  SEC. 58.  Section 1403 is added to the Military and Veterans Code,
to read:
   1403.  (a) Notwithstanding Section 11005 of the Government Code,
the cemetery administrator, subject to the approval of the director,
may accept donations of personal property, including cash or other
gifts, to be used for the maintenance or beautification of the
cemetery.
   (b) Cash donations shall be deposited into the Northern California
Veterans Cemetery Perpetual Maintenance Fund and shall be expended
for the maintenance and repair of the facility or, subject to the
approval of the director, for a specified cemetery maintenance or
beautification project designated by the donor.
   (c) Notwithstanding Section 13340 of the Government Code,
donations deposited to the credit of the Northern California Veterans
Cemetery Perpetual Maintenance Fund as authorized by this section
shall be continuously appropriated to the department, without regard
to fiscal year.
  SEC. 59.  Section 1214.1 of the Penal Code is amended to read:
   1214.1.  (a) In addition to any other penalty in infraction,
misdemeanor, or felony cases, the court may impose a civil assessment
of up to three hundred dollars ($300) against any defendant who
fails, after notice and without good cause, to appear in court for
any proceeding authorized by law or who fails to pay all or any
portion of a fine ordered by the court. This assessment shall be
deposited in the Trial Court Trust Fund, as provided in Section 68085
of the Government Code.
   (b) The assessment shall not become effective until at least 10
calendar days after the court mails a warning notice to the defendant
by first-class mail to the address shown on the notice to appear or
to the defendant's last known address. If the defendant appears
within the time specified in the notice and shows good cause for the
failure to appear or for the failure to pay a fine, the court shall
vacate the assessment.
   (c) If a civil assessment is imposed under this section, no bench
warrant or warrant of arrest shall be issued with respect to the
failure to appear at the proceeding for which the assessment is
imposed or the failure to pay the fine. An outstanding, unserved
bench warrant or warrant of arrest for a failure to appear or for a
failure to pay a fine shall be recalled prior to the subsequent
imposition of a civil assessment.
   (d) The assessment imposed under subdivision (a) shall be subject
to the due process requirements governing defense and collection of
civil money judgments generally.
   (e) Each court and county shall maintain the collection program
that was in effect on July 1, 2005, unless otherwise agreed to by the
court and county. If a court and a county do not agree on a plan for
the collection of civil assessments imposed pursuant to this section
after the implementation of Sections 68085.6 and 68085.7 of the
Government Code, the court or the county may request arbitration by a
third party mutually agreed upon by the Administrative Director of
the Courts and the California State Association of Counties.
   (f) Notwithstanding any other provision of law, upon direction of
the Administrative Office of the Courts, the court shall deposit the
money collected under this section as soon as practicable after
collection and on a regular basis into a bank account specified by
the Administrative Office of the Courts. The deposits shall be made
as required by rules adopted by and financial policies and procedures
authorized by the Judicial Council under subdivision (a) of Section
77206 of the Government Code. Within 15 days after the end of the
month in which the money is collected, the court shall provide the
Administrative Office of the Courts with a report of the money
collected as specified by the Administrative Office of the Courts.
The money shall be transmitted to the Controller for deposit in the
Trial Court Trust Fund by the Administrative Office of the Courts.

  SEC. 60.  Section 6611 of the Public Contract Code is amended to
read:
   6611.  (a) Notwithstanding any other provision of law, the
Department of General Services may, relative to contracts for goods,
services, information technology, and telecommunications, use a
negotiation process if the department finds that one or more of the
following conditions exist:
   (1) The business need or purpose of a procurement or contract can
be further defined as a result of a negotiation process.
   (2) The business need or purpose of a procurement or contract is
known by the department, but a negotiation process may identify
different types of solutions to fulfill this business need or
purpose.
   (3) The complexity of the purpose or need suggests a bidder's
costs to prepare and develop a solicitation response are extremely
high.
   (4) The business need or purpose of a procurement or contract is
known by the department, but negotiation is necessary to ensure that
the department is receiving the best value or the most cost-efficient
goods, services, information technology, and telecommunications.
   (b) When it is in the best interests of the state, the department
may negotiate amendments to the terms and conditions, including scope
of work, of existing contracts for goods, services, information
technology, and telecommunications, whether or not the original
contract was the result of competition, on behalf of itself or
another state agency.
   (c) (1) The department shall establish the procedures and
guidelines for the negotiation process described in subdivision (a),
which procedures and guidelines shall include, but not be limited to,
a clear description of the methodology that will be used by the
department to evaluate a bid for the procurement goods, services,
information technology, and telecommunications.
   (2) The procedures and guidelines described in paragraph (1) may
include provisions that authorize the department to receive
supplemental bids after the initial bids are opened. If the
procedures and guidelines include these provisions, the procedures
and guidelines shall specify the conditions under which supplemental
bids may be received by the department.
  SEC. 61.  Section 10111 is added to the Public Contract Code, to
read:
   10111.  Commencing January 1, 2007, the department shall make
available a report on contracting activity containing the following
information:
   (a) A listing of consulting services contracts that the state has
entered into during the previous fiscal year.  The listing shall
include the following:
   (1) The name and identification number of each contractor.
   (2) The type of bidding entered into, the number of bidders,
whether the low bidder was accepted, and if the low bidder was not
accepted, an explanation of why another contractor was selected.
   (3) The amount of the contract price.
   (4) Whether the contract was a noncompetitive bid contract, and
why the contract was a noncompetitive bid contract.
   (5) Justification for entering into each consulting services
contract.
   (6) The purpose of the contract and the potential beneficiaries.
   (7) The date when the initial contract was signed, and the date
when the work began and was completed.
   (b) The report shall also include a separate listing of consultant
contracts completed during that fiscal year, with the same
information specified in subdivision (a).
   (c) The information specified in subdivisions (a) and (b) shall
also include a list of any contracts underway during that fiscal year
on which any change was made regarding the following:
   (1) The completion date of the contract.
   (2) The amount of money to be received by the contractor, if it
exceeds 3 percent of the original contract price.
   (3) The purpose of the contract or duties of the contractor. A
brief explanation shall be given if the change in purpose is
significant.
   (d) The level of participation, by agency, of disabled veteran
business enterprises in statewide contracting and shall include
dollar values of contract award for the following categories:
   (1) Construction.
   (2) Architectural, engineering, and other professional services.
   (3) Procurement of materials, supplies, and equipment.
   (4) Information technology procurements.
   Additionally, the report shall include a statistical summary
detailing each awarding department's goal achievement and a statewide
total of those goals.
   (e) The level of participation by small business in state
contracting including:
   (1) Upon request, an up-to-date list of eligible small business
bidders by general procurement and construction contract categories,
noting company names and addresses and also noting which small
businesses also qualify as microbusinesses.
   (2) By general procurement and construction contract categories,
statistics comparing the small business and microbusiness contract
participation dollars to the total state contract participation
dollars.

             (3) By awarding department and general procurement and
construction categories, statistics comparing the small business and
microbusiness contract participation dollars to the total state
contract participation dollars.
   (4) Any recommendations for changes in statues or state policies
to improve opportunities for small businesses and microbusinesses.
   (5) A statistical summary of small businesses and microbusinesses
certified for state contracting by the number of employees at the
business for each of the following categories: 0-5, 26-50, 51-75, and
76-100.
   (6) To the extent feasible, beginning in the year 2008, the number
of contracts awarded by the department in the categories specified
in paragraph (5).
   (7) The number of contracts and dollar amounts awarded annually
pursuant to Section 14838.5 of the Government Code to small
businesses, microbusinesses, and disabled veteran business
enterprises.
   (f) The level of participation of business enterprises, by race,
ethnicity, and gender of owner, in contracts as identified in Section
2051 of the Government Code, to the extent that the information has
been voluntarily reported to the department. In addition, the report
shall contain the levels of participation of business enterprises, by
race, ethnicity, and gender of owner, for the following categories
of contracts, to the extent that the information has been voluntarily
reported to the department:
   (1) Construction.
   (2) Purchases of materials, supplies, or equipment.
   (3) Professional services.
  SEC. 62.  Section 10115.5 of the Public Contract Code is amended to
read:
   10115.5.  (a) Notwithstanding Section 7550.5 of the Government
Code, on January 1 of each year, each awarding department shall
report to the Governor and the Legislature on the level of
participation by minority, women, and disabled veteran business
enterprises in contracts as identified in this article for the fiscal
year beginning July 1 and ending June 30. In addition, the report
shall contain the levels of participation by minority, women, and
disabled veteran business enterprises for the following categories of
contracts:
   (1) Construction.
   (2) Purchases of materials, supplies, and equipment.
   (3) Professional services.
   (4) All contracts for a dollar amount of less than twenty-five
thousand dollars ($25,000).
   (b) If the established goals are not being met, the awarding
department shall report the reasons for its inability to achieve the
standards and identify remedial steps it shall take.
   (c) This section shall remain in effect only until January 1,
2007, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2007, deletes or extends
that date.
  SEC. 63.  Section 10116 of the Public Contract Code is amended to
read:
   10116.  (a) On January 1, of each year, each awarding department
shall report to the Governor and the Legislature on the level of
participation of business enterprises, by race, ethnicity, and gender
of owner to the extent that information has been voluntarily
reported to the awarding department in contracts as identified in
this article for the fiscal year beginning July 1 and ending June 30.
In addition, the report shall contain the levels of participation of
business enterprises, by race, ethnicity, and gender of owner, for
the following categories of contracts:
   (1) Construction.
   (2) Purchases of materials, supplies, or equipment.
   (3) Professional services.
   (4) All contracts for a dollar amount of less than twenty-five
thousand dollars ($25,000).
   (b) Awarding departments are prohibited from using the data
compiled under this section to discriminate or provide a preference
in the awarding of any contracts.
   (c) Contractors are prohibited from using the information compiled
under this section to discriminate or provide a preference in the
solicitation or acceptance of bids for subcontracting, or for
materials or equipment, on the basis of race, color, sex, ethnic
origin, or ancestry.
   (d) This section shall remain in effect only until January 1,
2007, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2007, deletes or extends
that date.
  SEC. 64.  Section 10359 of the Public Contract Code is amended to
read:
   10359.  (a) Each state agency shall annually prepare a report
pursuant to this section that includes a list of the consulting
services contracts that it has entered into during the previous
fiscal year. The listing shall include the following information:
   (1) The name and identification of each contractor.
   (2) The type of bidding entered into, the number of bidders,
whether the low bidder was accepted, and if the low bidder was not
accepted, an explanation of why another contractor was selected.
   (3) The amount of the contract price.
   (4) Whether the contract was a sole-source contract, and why the
contract was a sole-source contract.
   (5) Justification for entering into each consulting services
contract.
   (6) The purpose of the contract and the potential beneficiaries.
   (7) The date when the initial contract was signed, and the date
when the work began and was completed.
   The report shall also include a separate listing of consultant
contracts completed during that fiscal year, with the same
information as above.
   (b) The report this section requires shall also include a list of
any contracts underway during that fiscal year on which any change
was made regarding the following:
   (1) The completion date of the contract.
   (2) The amount of money to be received by the contractor, if it
exceeds 3 percent of the original contract price.
   (3) The purpose of the contract or duties of the contractor. A
brief explanation shall be given if the change in purpose is
significant.
   (c) Copies of the annual report shall be sent within 60 working
days after the end of the previous fiscal year to the Legislative
Analyst, the Department of Finance, the Department of General
Services, the State Auditor, the Joint Legislative Budget Committee,
the Joint Legislative Audit Committee, the Senate Appropriations
Committee, and the Assembly Appropriations Committee.
   (d) State agencies may not use the temporary budget allocation
process as a means of circumventing the requirements of this section.

   (e) Within 120 working days after the close of the fiscal year,
the department shall furnish to the officials and committees listed
in subdivision (c), a list of the departments and agencies that have
not submitted the required report specified in this section.
   (f) The department shall annually submit to the Legislature, the
Legislative Analyst, the Department of Finance, and the Auditor
General, a report describing the information furnished to the
department pursuant to this section.
   (g) This section shall remain in effect only until January 1,
2007, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2007, deletes or extends
that date.
  SEC. 65.  Section 42102 is added to the Public Resources Code, to
read:
   42102.  There is hereby created, in the State Treasury, the Chrome
Plating Pollution Prevention Fund, for the sole purpose of receiving
deposits of state, federal, or local government money, and other
public or private money, for expenditure, upon appropriation by the
Legislature, by the Business, Transportation and Housing Agency.
  SEC. 66.  Section 5003.2 of the Public Utilities Code is amended to
read:
   5003.2.  (a) Notwithstanding Section 5003.1, the commission shall
require every highway carrier otherwise subject to Section 5003.1 for
whom the commission does not establish minimum or maximum rates, or
require rates to be on file with the commission, to pay a fee equal
to one-tenth of 1 percent of the amount of gross operating revenue.
   (b) When a household goods carrier pursuant to Section 5137 elects
to transport under its household goods carrier permit used office,
store, and institution furniture and fixtures, notwithstanding
Section 5003.1, the fee on the gross operating revenue derived from
transporting those items shall be one-tenth of 1 percent.
   (c) The commission may raise the fee imposed by Section 5003.1
upon those persons and corporations subject to that section for whom
the commission establishes minimum or maximum rates or requires rates
to be on file, up to a maximum of seven-tenths of 1 percent of gross
operating revenue, if the commission decides this increase is
necessary to maintain adequate financing for the Transportation Rate
Fund.
  SEC. 67.  Section 97.76 of the Revenue and Taxation Code is amended
to read:
   97.76.  (a) On or before September 1, 2004, the Controller shall
determine the countywide vehicle license fee adjustment amount, as
defined in Section 97.70, for the 2004-05 fiscal year and the vehicle
license fee adjustment amount, as defined in Section 97.70, for each
city, county, and city and county for the 2004-05 fiscal year, and
notify the county auditor of these amounts.
   (b) On or before October 15, 2005, in consultation with the Bureau
of State Audits, the Controller shall determine the amount specified
in clause (i) of subparagraph (B) of paragraph (1) of subdivision
(c) of Section 97.70 for each city, county, and city and county and
notify the county auditor of these amounts.
  SEC. 68.  Section 6479.3 of the Revenue and Taxation Code is
amended to read:
   6479.3.  (a) Any person whose estimated tax liability under this
part averages ten thousand dollars ($10,000) or more per month, as
determined by the board pursuant to methods of calculation prescribed
by the board, shall remit amounts due by an electronic funds
transfer under procedures prescribed by the board. Any person who
collects use tax on a voluntary basis is not required to remit
amounts due by electronic funds transfer.
   (b) Any person whose estimated tax liability under this part
averages less than ten thousand dollars ($10,000) per month or any
person who voluntarily collects use tax may elect to remit amounts
due by electronic funds transfer with the approval of the board. The
election shall be operative for a minimum of one year.
   (c) Any person remitting amounts due pursuant to subdivision (a)
or (b) shall perform electronic funds transfer in compliance with the
due dates set forth in Article 1 (commencing with Section 6451) and
Article 1.1 (commencing with Section 6470). Payment is deemed
complete on the date the electronic funds transfer is initiated, if
settlement to the state's demand account occurs on or before the
banking day following the date the transfer is initiated. If
settlement to the state's demand account does not occur on or before
the banking day following the date the transfer is initiated, payment
is deemed to occur on the date settlement occurs.
   (d) Any person remitting taxes by electronic funds transfer shall,
on or before the due date of the remittance, file a return for the
preceding reporting period in the form and manner prescribed by the
board. Any person who fails to timely file the required return shall
pay a penalty of 10 percent of the amount of taxes, exclusive of
prepayments, with respect to the period for which the return is
required.
   (e) (1) Except as provided in paragraph (2), any person required
to remit taxes pursuant to this article who remits those taxes by
means other than appropriate electronic funds transfer shall pay a
penalty of 10 percent of the taxes incorrectly remitted.
   (2) A person required to remit prepayments pursuant to this
article who remits a prepayment by means other than an appropriate
electronic funds transfer shall pay a penalty of 6 percent of the
prepayment amount incorrectly remitted.
   (f) Except as provided in Sections 6476 and 6477, any person who
fails to pay any tax to the state or any amount of tax required to be
collected and paid to the state, except amounts of determinations
made by the board under Article 2 (commencing with Section 6481) or
Article 3 (commencing with Section 6511), within the time required
shall pay a penalty of 10 percent of the tax or amount of tax, in
addition to the tax or amount of tax, plus interest at the modified
adjusted rate per month, or fraction thereof, established pursuant to
Section 6591.5, from the date on which the tax or the amount of tax
required to be collected became due and payable to the state until
the date of payment.
   (g) In determining whether a person's estimated tax liability
averages ten thousand dollars ($10,000) or more per month, the board
may consider tax returns filed pursuant to this part and any other
information in the board's possession.
   (h) Except as provided in subdivision (i), the penalties imposed
by subdivisions (d), (e), and (f) shall be limited to a maximum of 10
percent of the taxes due, exclusive of prepayments, for any one
return. Any person remitting taxes by electronic funds transfer shall
be subject to the penalties under this section and not Section 6591.

   (i) The penalties imposed with respect to paragraph (2) of
subdivision (e) and Sections 6476 and 6477 shall be limited to a
maximum of 6 percent of the prepayment amount.
   (j) The board shall promulgate regulations pursuant to Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2
of the Government Code for purposes of implementing this section.

  SEC. 69.  Section 18631.7 is added to the Revenue and Taxation
Code, to read:
   18631.7.  (a) Any check casher engaged in the trade or business of
cashing checks that, in the course of that trade or business, cashes
checks totaling more than ten thousand dollars ($10,000) in one
transaction or two or more transactions for the same person within
the calendar year, shall file an informational return with the
Franchise Tax Board with respect to that transaction or transactions.

   (b) The return required in subdivision (a) shall be filed no later
than 90 days after the end of the calendar year and in the form and
manner prescribed by the Franchise Tax Board, and shall, at a
minimum, contain both of the following:
   (1) The name, address, taxpayer identification number, and any
other identifying information of the person presenting the check that
the Franchise Tax Board deems necessary.
   (2) The amount and date of the transaction or transactions.
   (c) For purposes of this section both of the following definitions
apply:
   (1) "Check casher" means any person as defined under Section
1789.31 of the Civil Code.
   (2) "Checks" includes warrants, drafts, money orders, and other
commercial paper serving the same purpose.
   (d) With respect to a person who fails to file the report required
by this section or fails to include all of the information required
to be shown on that report, both of the following apply:
   (1) Sections 6721 and 6724 of the Internal Revenue Code, as those
sections read on January 1, 2005, apply, except that the "Franchise
Tax Board" is substituted for the "secretary" in each place it
appears in those sections.
   (2) If the failure was willful, the person is guilty of a felony
and, upon conviction thereof, shall be fined not more than
twenty-five thousand dollars ($25,000) or, in the case of a
corporation, not more than one hundred thousand dollars ($100,000),
or imprisoned not more than one year, or both, together with the
costs of prosecution.
  SEC. 70.  Section 19183 of the Revenue and Taxation Code is amended
to read:
   19183.  (a) (1) A penalty shall be imposed for failure to file
correct information returns, as required by this part, and that
penalty shall be determined in accordance with Section 6721 of the
Internal Revenue Code.
   (2) Section 6721(e) of the Internal Revenue Code is modified to
the extent that the reference to Section 6041A(b) of the Internal
Revenue Code shall not apply.
   (b) (1) A penalty shall be imposed for failure to furnish correct
payee statements as required by this part, and that penalty shall be
determined in accordance with Section 6722 of the Internal Revenue
Code.
   (2) Section 6722(c) of the Internal Revenue Code is modified to
the extent that the references to Sections 6041A(b) and 6041A(e) of
the Internal Revenue Code shall not apply.
   (c) A penalty shall be imposed for failure to comply with other
information reporting requirements under this part, and that penalty
shall be determined in accordance with Section 6723 of the Internal
Revenue Code.
   (d) (1) The provisions of Section 6724 of the Internal Revenue
Code relating to waiver, definitions, and special rules, shall apply,
except as otherwise provided.
   (2) Section 6724(d)(1) of the Internal Revenue Code is modified as
follows:
   (A) The following references are substituted:
   (i) Subdivision (a) of Section 18640, in lieu of Section 6044(a)
(1) of the Internal Revenue Code.
   (ii) Subdivision (a) of Section 18644, in lieu of Section 6050A(a)
of the Internal Revenue Code.
   (B) References to Sections 4093(c)(4), 4093(e), 4101(d), 6041(b),
6041A(b), 6045(d), 6051(d), and 6053(c)(1) of the Internal Revenue
Code shall not apply.
   (C) The term "information return" shall also include both of the
following:
   (i) The return required by paragraph (1) of subdivision (i) of
Section 18662.
   (ii) The return required by subdivision (a) of Section 18631.7.
   (3) Section 6724(d)(2) of the Internal Revenue Code is modified as
follows:
   (A) The following references are substituted:
   (i) Subdivision (b) of Section 18640, in lieu of Section 6044(e)
of the Internal Revenue Code.
   (ii) Subdivision (b) of Section 18644, in lieu of Section 6050A(b)
of the Internal Revenue Code.
   (B) References to Sections 4093(c)(4)(B), 6031(b), 6037(b), 6041A
(e), 6045(d), 6051(d), 6053(b), and 6053(c) of the Internal Revenue
Code shall not apply.
   (C) The term "payee statement" shall also include the statement
required by paragraph (2) of subdivision (i) of Section 18662.
   (e) In the case of each failure to provide a written explanation
as required by Section 402(f) of the Internal Revenue Code, at the
time prescribed therefor, unless it is shown that the failure is due
to reasonable cause and not to willful neglect, there shall be paid,
on notice and demand of the Franchise Tax Board and in the same
manner as tax, by the person failing to provide that written
explanation, an amount equal to ten dollars ($10) for each failure,
but the total amount imposed on that person for all those failures
during any calendar year shall not exceed five thousand dollars
($5,000).
   (f) Any penalty imposed by this part shall be paid on notice and
demand by the Franchise Tax Board and in the same manner as tax.
  SEC. 71.  Section 19523.5 is added to the Revenue and Taxation
Code, to read:
   19523.5.  (a) If the United States Secretary of the Treasury has,
under the authority of Section 330(b) of Subchapter II of Chapter 3
of Subtitle 1 of Title 31 of the United States Code, suspended or
disbarred a person from practice before the United States Department
of the Treasury, the Franchise Tax Board shall, after notice and
opportunity for a proceeding, suspend or disbar that person from
practice before the Franchise Tax Board during the period of federal
suspension or disbarment, unless the action of the United State
Secretary of the Treasury was clearly erroneous.
   (b) For purposes of this section, both of the following
definitions apply:
   (1) "Practice" or "practices" means all matters connected with a
presentation to the Franchise Tax Board or any of its officers or
employees relating to a taxpayer's rights, privileges, or liabilities
under laws or regulations administered by the Franchise Tax Board.

   (2) "Presentations" means, but is not limited to, preparing and
filing documents, corresponding and communicating with the Franchise
Tax Board, and representing a client at conferences, hearings, and
meetings.
   (c) (1) Every person who practices before the Franchise Tax Board
and is suspended or disbarred from practice before the United States
Department of the Treasury shall notify the Franchise Tax Board, in
writing, within 45 days of the issuance of a final order disbarring
or suspending the person pursuant to Section 10.80 of Subpart D of
Part 10 of Subtitle A of Title 31 of the Code of Federal Regulations,
revised as of July 26, 2002.
   (2) Any person that fails to notify the Franchise Tax Board
pursuant to paragraph (1) shall be subject to a penalty of five
thousand dollars ($5,000).
   (d) The written notice required by subdivision (c) shall concede
the accuracy of the federal action, or state the reason or reasons
why the federal action is clearly erroneous.
   (e) Any person that has been suspended or disbarred from practice
before the Franchise Tax Board may seek review of that determination
by bringing an action pursuant to Section 1085 of the Code of Civil
Procedure.
   (f) The Franchise Tax Board may prescribe any regulations
necessary to carry out the purposes of this section.
   (g) This section shall be effective for final federal orders of
disbarment or suspension issued on or after the enactment date of
this act.
  SEC. 72.  Section 19701 of the Revenue and Taxation Code is amended
to read:
   19701.  Any person who does any of the following is liable for a
penalty of not more than five thousand dollars ($5,000):
   (a) With or without intent to evade any requirement of Part 10
(commencing with Section 17001), Part 11 (commencing with Section
23001), or this part or any lawful requirement of the Franchise Tax
Board, repeatedly over a period of two years or more, fails to file
any return or to supply any information required, or who, with or
without that intent, makes, renders, signs, or verifies any false or
fraudulent return or statement, or supplies any false or fraudulent
information, resulting in an estimated delinquent tax liability of at
least fifteen thousand dollars ($15,000).
   (b) Aids, abets, advises, encourages, or counsels any person to
evade the tax imposed by Part 10 (commencing with Section 17001) or
Part 11 (commencing with Section 23001) by not filing any return or
supplying any information required under Part 10 (commencing with
Section 17001), Part 11 (commencing with Section 23001), or this
part, or, by making, rendering, signing, or verifying any false or
fraudulent return or statement, or by supplying false or fraudulent
information.
   (c) Under this part, is required to pay any estimated tax or tax,
who willfully fails to pay that estimated tax or tax, at the time or
times required by law or regulations.
   The penalty shall be recovered in the name of the people in any
court of competent jurisdiction. Counsel for the Franchise Tax Board
may, upon request of the district attorney or other prosecuting
attorney, assist the prosecuting attorney in presenting the law or
facts to recover the penalty at the trial of a criminal proceeding
for violation of this section.
   That person is also guilty of a misdemeanor and shall upon
conviction be fined not to exceed five thousand dollars ($5,000) or
be imprisoned not to exceed one year, or both, at the discretion of
the court, together with costs of investigation and prosecution. The
preceding sentence shall not apply to any person who is mentally
incompetent, or suffers from dementia, Alzheimer's disease, or
similar condition.
   (d) For purposes of subdivision (a), the president of a
corporation, or the chief operating officer, is the person presumed
to be responsible for filing any return or supplying information
required from that corporation.
  SEC. 73.  Section 9619 is added to the Unemployment Insurance Code,
to read:
   9619.  (a) (1) To the extent that funds are appropriated for this
purpose in the annual Budget Act, the department may award grants to
regional collaboratives for the creation of regional nursing
simulation laboratories that will allow additional nursing students
to have access to clinical educational facilities. No single grant
made under this section may exceed two hundred and fifty thousand
dollars ($250,000).
   (2) During the 2005-06 fiscal year, all grants made under this
section shall be made for the creation of regional nursing simulation
laboratories that serve rural areas.
   (b) The department shall administer grants made under this
section, and shall establish procedures and criteria for the awarding
of those grants.
  SEC. 74.  Chapter 3.2 (commencing with Section 18220) is added to
Part 6 of Division 9 of the Welfare and Institutions Code, to read:
      CHAPTER 3.2.  JUVENILE PROBATION FUNDING

   18220.  (a) (1) The Department of Corrections and Rehabilitation,
commencing July 1, 2005, shall administer funds appropriated for the
purposes of this chapter and allocated pursuant to this section.
   (2) For purposes of this chapter, "department" means the
Department of Corrections and Rehabilitation.
   (b) (1) The department shall administer this chapter, including
the establishment of agreements with all county probation departments
that receive funding under this chapter.
   (2) (A) Subject to the availability of funds in the annual Budget
Act, the department shall be responsible for allocating funds to
counties.
   (B) Commencing with the 2005-06 fiscal year, the department shall
allocate one hundred sixty-eight million seven hundred thirteen
thousand dollars ($168,713,000) among counties based on the
allocation schedule specified in this subparagraph. In any year in
which the total amount appropriated by the Legislature for the
purposes of this section differs from the total amount provided in
the 2004-05 fiscal year, the amount appropriated shall be apportioned
to counties based on the 2004-05 fiscal year allocation schedule as
follows:



Alameda .............   $6,667,935

Alpine ..............         $584

Amador ..............     $100,667

Butte ...............     $538,712

Calaveras ...........     $103,092

Colusa ..............      $57,526

Contra Costa ........   $4,493,504

Del Norte ...........     $197,338

El Dorado ...........     $508,807

Fresno ..............   $3,635,282

Glenn ...............      $90,484

Humboldt ............     $286,072

Imperial ............     $572,419

Inyo ................     $241,575

Kern ................   $4,333,734

Kings ...............     $647,746

Lake ................     $314,736

Lassen ..............      $91,671

Los Angeles .........  $67,713,506

Madera ..............     $404,791

Marin ...............     $631,365

Mariposa ............      $22,394

Mendocino ...........     $333,240

Merced ..............     $584,419

Modoc ...............      $36,005

Mono ................      $12,013

Monterey ............   $1,018,813

Napa ................     $593,942

Nevada ..............     $209,805

Orange ..............  $14,270,138

Placer ..............     $450,012

Plumas ..............      $46,127

Riverside ...........   $5,438,322

Sacramento ..........   $3,602,070

San Benito ..........     $360,418

San Bernardino ......   $5,856,862

San Diego ...........   $9,463,866

San Francisco .......   $3,232,706

San Joaquin .........   $1,493,704

San Luis Obispo .....   $1,013,424

San Mateo ...........   $3,201,176

Santa Barbara .......   $2,794,054

Santa Clara .........   $9,799,213

Santa Cruz ..........   $1,033,949

Shasta ..............     $694,367

Sierra ..............       $6,168

Siskiyou ............     $126,526

Solano ..............   $1,748,360

Sonoma ..............   $2,200,569

Stanislaus ..........     $889,952

Sutter ..............     $226,793

Tehama ..............     $243,674

Trinity .............      $58,342

Tulare ..............   $2,381,471

Tuolumne ............     $119,136

Ventura .............   $2,900,636

Yolo ................     $429,067

Yuba ................     $189,721

Total ............... $168,713,000


   (C) Commencing with the 2005-06 fiscal year, the department shall
allocate thirty-two million seven hundred thousand dollars
($32,700,000) among counties that operate juvenile camps and ranches
based on the number of occupied beds in each camp as of 12:01 a.m.
each day, up to the Corrections Standards Authority rated maximum
capacity, as determined by the Corrections Standards Authority.
   18221.  (a) Subject to the availability of funds for the purposes
described in this section, funds provided pursuant to subparagraphs
(B) and (C) of paragraph (2) of subdivision (b) of Section 18220 may
be used to serve children who are habitual truants, runaways, at risk
of being wards of the court under Section 601 or 602, or under
juvenile court supervision or supervision of the probation
department. Funds may be used to serve parents or other family
members of these children if serving them will promote increased
self-sufficiency, personal responsibility, and family stability for
the child. Services shall be provided pursuant to a family service
plan. When a family is served by multiple public agencies or in need
of services from multiple public agencies, the family service plan
shall be developed through an interdisciplinary approach that shall
include representatives from agencies that provide services to the
family or that may be required to implement the service plan.
   (b) Services authorized under this section include all of the
following:
   (1) Educational advocacy and attendance monitoring.
   (2) Mental health assessment and counseling.
   (3) Home detention.
   (4) Social responsibility training.
   (5) Family mentoring.
   (6) Parent peer support.
   (7) Life skills counseling.
   (8) Direct provision of, and referral to, prevocational and
vocational training.
   (9) Family crisis intervention.
   (10) Individual, family, and group counseling.
   (11) Parenting skills development.
   (12) Drug and alcohol education.
   (13) Respite care.
   (14) Counseling, monitoring, and treatment.
   (15) Gang intervention.
   (16) Sex and health education.
   (17) Anger management, violence prevention, and conflict
resolution.
   (18) Aftercare services as juveniles transition back into the
community and reintegrate into their families.
   (19) Information and referral regarding the availability of
community services.
   (20) Case management.
   (21) Therapeutic day treatment.
   (22) Transportation related to any of the services described in
this subdivision.
   (23) Emergency and temporary shelter.
  SEC. 75.  Section 16 of Chapter 876 of the Statutes of 2003 is
amended to read:
   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, no General Fund
budget augmentations shall be made for this purpose.
  SEC. 75.5.  (a) The ReadyReturn pilot program, available to
taxpayers filing the simplest tax returns with the Franchise Tax
Board, may continue to operate as a pilot program during the 2005-06
fiscal year, unless later enacted legislation authorizes the
continuation of the program.
   (b) The ReadyReturn pilot program authorized herein shall be
operated during the 2005-06 fiscal year in the same manner it was
operated during the 2004-05 fiscal year.
  SEC. 76.  Section 11544 of the Government Code, as added by Section
1 of Governor's Reorganization Plan No. 2, submitted to the
Legislature on May 9, 2005, is not operative.
  SEC. 77.  Sections 32 and 76 of this act shall only become
operative if Governor's Reorganization Plan No. 2, submitted to the
Legislature on May 9, 2005, goes into effect, and these sections
shall become operative on the date that the plan becomes effective.

  SEC. 78.  The Legislature finds and declares that the changes made
to existing law by Sections 49 and 51 of this act are consistent with
subdivision (c) of Section 53533 and further the goals of the Joe
Serna, Jr. Farmworker Housing Grant Program by making migrant
farmworker housing available in a more efficient and effective
manner.
  SEC. 78.5.  Notwithstanding any other provision of law, funds
appropriated by Item 8180-101-0001 of Section 2.00 of Senate Bill 77
of the 2005-06 Regular Session shall be available for reimbursement
of 100 percent of any extraordinary costs incurred by the County of
Stanislaus related to the homicide trial in People v. Peterson
(Super.  Ct. No. 1056770). As used in this section, "costs incurred
by the County of Stanislaus" do not include any costs paid by the
Superior Court for which the Superior Court is responsible.
  SEC. 79.  (a) The Legislature finds and declares as follows:
   (1) The Housing and Emergency Shelter Trust Fund Act of 2002
provided forty-five million dollars ($45,000,000) for the purpose of
funding projects through the Preservation Opportunity Program.
   (2) It was the intention of the voters that funds provided through
the Housing and Emergency Shelter Trust Fund Act of 2002 be used for
projects that would have the greatest impact on the preservation of
existing housing stock and programs that provide stable and
affordable housing opportunities for the homeless and those at risk
of homelessness.  In order to effectuate this voter intent, any
portion of these funds that remain unencumbered after 30 months
revert to the Multifamily Housing Program. The Multifamily Housing
Program has been oversubscribed and highly competitive.
   (3) Rather than reverting to the Multifamily Housing Program,
repayments of the short-term loans made through the Preservation
Opportunity Program are deposited into the Preservation Opportunity
Fund. However, the demand for funds for projects through the
Preservation Opportunity Program has proven to be lower than
originally anticipated.  Therefore, there is a likelihood that the
repayments of Preservation Opportunity Program loans may remain
unused in the Preservation Opportunity Fund for extended periods of
time.
   (4) In passing the Housing and Emergency Shelter Trust Fund Act of
2002, the voters expressly reserved to the Legislature the authority
to make program revisions where necessary for the effectiveness or
efficiency in meeting the purposes of the various programs.
   (b) Therefore, the Legislature determines that it is more
efficient and effective to use the repayments of Preservation
Opportunity Program loans for the high-demand Multifamily Housing
Program.
  SEC. 80.  (a) On January 1, 2006, all moneys in the Hazardous Waste
Reduction Loan Account created pursuant to Section 14096 of the
Corporations Code shall be transferred to the Chrome Plating
Pollution Prevention Fund created pursuant to Section 42102 of the
Public Resources Code, and shall be subject to that section. Those
moneys are subject to all encumbrances on those moneys made prior to
January 1, 2005, and to all legal restrictions on their use other
than by state statute.
   (b) Any moneys paid on or after January 1, 2006, to the Hazardous
Waste Reduction Loan Account, for a loan issued pursuant to former
Article 13 (commencing with Section 14095) of Chapter 1 of Part 5 of
Division 3 of Title 1 of the Corporations Code, shall be transferred
to the Chrome Plating Pollution Prevention Fund created pursuant to
Section 42102 of the Public Resources Code, and shall be subject to
that section.
  SEC. 80.5.  Notwithstanding Section 95.35 of the Revenue and
Taxation Code, the Director of Finance shall suspend the State-County
Property Tax Administration Grant Program in the 2006-07 fiscal
year.
  SEC. 81.  Sections 65 and 80 of this act shall become operative
only if legislation is enacted and becomes operative on or after June
1, 2005, but before July 1, 2006, that requires the funds
transferred pursuant to Section 80 of this act to be expended for
environmental control technologies for chrome and metal plating
related activities.
  SEC. 82.  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.
  SEC. 83.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
   In order to make the necessary statutory changes to implement the
Budget Act of 2005 at the earliest possible time, it is necessary
that this act take effect immediately.