BILL NUMBER: SB 1498	CHAPTERED
	BILL TEXT

	CHAPTER  179
	FILED WITH SECRETARY OF STATE  JULY 22, 2008
	APPROVED BY GOVERNOR  JULY 22, 2008
	PASSED THE SENATE  JULY 2, 2008
	PASSED THE ASSEMBLY  JUNE 23, 2008
	AMENDED IN ASSEMBLY  JUNE 9, 2008

INTRODUCED BY   Committee on Judiciary (Senators Corbett (Chair),
Ackerman, Harman, Kuehl, and Steinberg)

                        FEBRUARY 21, 2008

   An act to amend Sections 108, 480, 490, 650, 1265.1, 1625.4, 3152,
3702, 4999.2, 4999.7, 5216.6, 5616, 5640, 6073, 6212, 6213, 7027.5,
7159, 8698.5, 14207, 14245, 16721.5, 17204, 17915, 17929, and 19596.2
of the Business and Professions Code, to amend Sections 56.10,
798.73, 1185, 1789.13, 1936, 1951.7, and 2938 of the Civil Code, to
amend Sections 340.7 and 486.050 of the Code of Civil Procedure, to
amend Section 9526.5 of the Commercial Code, to amend Sections 8484,
8774, 17075.10, 33051, 33382, 35021.3, 46300, 47605, 48980, 49423.5,
49431.7, 51228, 52244, 52499.66, 52861, 52922, 56030, 56300, 56302,
56328, 56331, 56341.1, 56342.1, 56363.5, 56366.1, 56426.6, 56431,
56456, 56476, 56504, 56851, 66018.55, 69551, and 71095 of, and to
amend the headings of Chapter 1 (commencing with Section 8006) of
Part 6 of Division 1 of Title 1 of, Article 1 (commencing with
Section 8006) of Chapter 1 of Part 6 of Division 1 of Title 1 of, and
Part 40.5 (commencing with Section 67500) of Division 5 of Title 3
of, the Education Code, to amend Section 13001 of the Elections Code,
to amend Sections 1520 and 50700 of the Financial Code, to amend
Section 8235 of the Fish and Game Code, to amend Sections 3352, 3357,
and 20755 of the Food and Agricultural Code, to amend Sections
3502.5, 3517.8, 3543, 7267.2, 7576, 7585, 8588.1, 8592.1, 8879.50,
8879.60, 11126, 11549.2, 11549.5, 11549.6, 11550, 13959, 14838,
15820.104, 15820.105, 19609, 27293, 27361, 31521.3, 31739.33,
53343.1, 53601, 56100.1, 56700.1, 57009, 65007, 65865.5, 65917.5,
65962, 66474.5, 66474.62, 66540.1, 66540.9, 66540.10, 66540.12,
66540.32, 66540.54, 69615, 70375, 70391, 76000, 76000.5, 76104.1,
76104.6, 77200, 77201.1, 95001, 95003, and 95020 of, and to amend and
renumber Section 66540.34 of, the Government Code, to amend Sections
1180.1, 1250.8, 1348.8, 1357.03, 1367.07, 1417.2, 1538.5, 1568.09,
1569.145, 1728.8, 11752.1, 25210.9, 25270.2, 25299.57, 25299.58,
39625.02, 43869, 44125, 44272, 101317, 111071, 116033, 121530,
122354, 124900, 124991, 127400, 127405, 128735, and 131540 of the
Health and Safety Code, to amend Sections 739.3, 1063.1, 1626,
1764.1, 1765, 1872.8, 1872.81, 1872.86, and 15031 of the Insurance
Code, to amend Sections 77.7, 4604.5, and 4658.5 of the Labor Code,
to amend Sections 293, 398, 903.2, 1170, 1369.1, and 11062 of the
Penal Code, to amend Sections 4584, 5818.2, 25402.5.4, 25402.10,
30253, 30327.5, 30327.6, 31408, 35615, and 40117 of the Public
Resources Code, to amend Sections 353.1, 399.12, 884.5, and 2829 of
the Public Utilities Code, to amend Sections 107.7, 8352.6, 8352.8,
17053.5, 30182, 32258, 41007, 41011, 41021, 41030, and 41099 of the
Revenue and Taxation Code, to amend Sections 118, 464, 25440, and
36622 of the Streets and Highways Code, to amend Section 2739 of the
Unemployment Insurance Code, to amend Sections 1803, 2430.1, 4766,
5004.1, 9853.6, 11410, 13353.2, 21251, 22511.85, 24617, 27315, 40002,
and 40240 of the Vehicle Code, to amend Sections 8201, 9602, 9610,
9614, 9625, 13478, and 13480 of, and to amend and repeal Section
8610.5 of, the Water Code, to amend Sections 707, 5348, 5352.1,
5777.7, 5806, 10830, 10960, 11322.5, 14043.1, 14043.26, 14045,
14154.3, 14407.1, 15657.3, 15660, 16522.1, and 19630.5 of the Welfare
and Institutions Code, to amend Section 34 of the Sacramento Area
Flood Control Agency Act (Chapter 510 of the Statutes of 1990), to
amend Section 1107 of the Ojai Basin Groundwater Management Agency
Act (Chapter 750 of the Statutes of 1991), to amend Section 1 of
Chapter 58 of the Statutes of 1997, and to amend Sections 2 and 4 of
Chapter 4, Section 2 of Chapter 26, and Section 2 of Chapter 451, of
the Statutes of 2007, relating to maintenance of the codes.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1498, Committee on Judiciary. Maintenance of the codes.
   Existing law directs the Legislative Counsel to advise the
Legislature from time to time as to legislation necessary to maintain
the codes.
   This bill would make nonsubstantive changes in various provisions
of law to effectuate the recommendations made by the Legislative
Counsel to the Legislature.


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

  SECTION 1.  Section 108 of the Business and Professions Code is
amended to read:
   108.  Each of the boards comprising the department exists as a
separate unit, and has the functions of setting standards, holding
meetings, and setting dates thereof, preparing and conducting
examinations, passing upon applicants, conducting investigations of
violations of laws under its jurisdiction, issuing citations and
holding hearings for the revocation of licenses, and the imposing of
penalties following those hearings, insofar as these powers are given
by statute to each respective board.
  SEC. 2.  Section 480 of the Business and Professions Code is
amended to read:
   480.  (a) A board may deny a license regulated by this code on the
grounds that the applicant has one of the following:
   (1) Been convicted of a crime. A conviction within the meaning of
this section means a plea or verdict of guilty or a conviction
following a plea of nolo contendere. Any action that a board is
permitted to take following the establishment of a conviction may be
taken when the time for appeal has elapsed, or the judgment of
conviction has been affirmed on appeal, or when an order granting
probation is made suspending the imposition of sentence, irrespective
of a subsequent order under the provisions of Section 1203.4 of the
Penal Code.
   (2) Done any act involving dishonesty, fraud, or deceit with the
intent to substantially benefit himself or herself or another, or
substantially injure another.
   (3) (A) Done any act that if done by a licentiate of the business
or profession in question, would be grounds for suspension or
revocation of license.
   (B) The board may deny a license pursuant to this subdivision only
if the crime or act is substantially related to the qualifications,
functions, or duties of the business or profession for which
application is made.
   (b) Notwithstanding any other provision of this code, no person
shall be denied a license solely on the basis that he or she has been
convicted of a felony if he or she has obtained a certificate of
rehabilitation under Chapter 3.5 (commencing with Section 4852.01) of
Title 6 of Part 3 of the Penal Code or that he or she has been
convicted of a misdemeanor if he or she has met all applicable
requirements of the criteria of rehabilitation developed by the board
to evaluate the rehabilitation of a person when considering the
denial of a license under subdivision (a) of Section 482.
   (c) A board may deny a license regulated by this code on the
ground that the applicant knowingly made a false statement of fact
required to be revealed in the application for the license.
  SEC. 3.  Section 490 of the Business and Professions Code is
amended to read:
   490.  A board may suspend or revoke a license on the ground that
the licensee has been convicted of a crime, if the crime is
substantially related to the qualifications, functions, or duties of
the business or profession for which the license was issued. A
conviction within the meaning of this section means a plea or verdict
of guilty or a conviction following a plea of nolo contendere. An
action that a board is permitted to take following the establishment
of a conviction may be taken when the time for appeal has elapsed, or
the judgment of conviction has been affirmed on appeal, or when an
order granting probation is made suspending the imposition of
sentence, irrespective of a subsequent order under Section 1203.4 of
the Penal Code.
  SEC. 4.  Section 650 of the Business and Professions Code is
amended to read:
   650.  (a) Except as provided in Chapter 2.3 (commencing with
Section 1400) of Division 2 of the Health and Safety Code, the offer,
delivery, receipt, or acceptance by any person licensed under this
division or the Chiropractic Initiative Act of any rebate, refund,
commission, preference, patronage dividend, discount, or other
consideration, whether in the form of money or otherwise, as
compensation or inducement for referring patients, clients, or
customers to any person, irrespective of any membership, proprietary
interest or coownership in or with any person to whom these patients,
clients, or customers are referred is unlawful.
   (b) The payment or receipt of consideration for services other
than the referral of patients which is based on a percentage of gross
revenue or similar type of contractual arrangement shall not be
unlawful if the consideration is commensurate with the value of the
services furnished or with the fair rental value of any premises or
equipment leased or provided by the recipient to the payer.
   (c) The offer, delivery, receipt, or acceptance of any
consideration between a federally qualified health center, as defined
in Section 1396d(l)(2)(B) of Title 42 of the United States Code, and
any individual or entity providing goods, items, services,
donations, loans, or a combination thereof, to the health center
entity pursuant to a contract, lease, grant, loan, or other
agreement, if that agreement contributes to the ability of the health
center entity to maintain or increase the availability, or enhance
the quality, of services provided to a medically underserved
population served by the health center, shall be permitted only to
the extent sanctioned or permitted by federal law.
   (d) Except as provided in Chapter 2.3 (commencing with Section
1400) of Division 2 of the Health and Safety Code and in Sections
654.1 and 654.2 of this code, it shall not be unlawful for any person
licensed under this division to refer a person to any laboratory,
pharmacy, clinic (including entities exempt from licensure pursuant
to Section 1206 of the Health and Safety Code), or health care
facility solely because the licensee has a proprietary interest or
coownership in the laboratory, pharmacy, clinic, or health care
facility, provided, however, that the licensee's return on investment
for that proprietary interest or coownership shall be based upon the
amount of the capital investment or proportional ownership of the
licensee which ownership interest is not based on the number or value
of any patients referred. Any referral excepted under this section
shall be unlawful if the prosecutor proves that there was no valid
medical need for the referral.
   (e) (1) Except as provided in Chapter 2.3 (commencing with Section
1400) of Division 2 of the Health and Safety Code and in Sections
654.1 and 654.2 of this code, it shall not be unlawful to provide
nonmonetary remuneration, in the form of hardware, software, or
information technology and training services, necessary and used
solely to receive and transmit electronic prescription information in
accordance with the standards set forth in Section 1860D-4(e) of the
Medicare Prescription Drug, Improvement, and Modernization Act of
2003 (42 U.S.C. Sec. 1395w-104) in the following situations:
   (A) In the case of a hospital, by the hospital to members of its
medical staff.
   (B) In the case of a group medical practice, by the practice to
prescribing health care professionals that are members of the
practice.
   (C) In the case of Medicare prescription drug plan sponsors or
Medicare Advantage organizations, by the sponsor or organization to
pharmacists and pharmacies participating in the network of the
sponsor or organization and to prescribing health care professionals.

   (2) The exceptions set forth in this subdivision are adopted to
conform state law with the provisions of Section 1860D-4(e)(6) of the
Medicare Prescription Drug, Improvement, and Modernization Act of
2003 (42 U.S.C. Sec. 1395w-104) and are limited to drugs covered
under Part D of the federal Medicare Program that are prescribed to
Part D eligible individuals (42 U.S.C. Sec. 1395w-101).
   (3) The exceptions set forth in this subdivision shall not be
operative until the regulations required to be adopted by the
Secretary of the United States Department of Health and Human
Services, pursuant to Section 1860D-4(e) of the Medicare Prescription
Drug, Improvement, and Modernization Act of 2003 (42 U.S.C. Sec.
1395w-104) are effective. If the California Health and Human Services
Agency determines that regulations are necessary to ensure that
implementation of the provisions of paragraph (1) is consistent with
the regulations adopted by the Secretary of the United States
Department of Health and Human Services, it shall adopt emergency
regulations to that effect.
   (f) "Health care facility" means a general acute care hospital,
acute psychiatric hospital, skilled nursing facility, intermediate
care facility, and any other health facility licensed by the State
Department of Public Health under Chapter 2 (commencing with Section
1250) of Division 2 of the Health and Safety Code.
   (g) A violation of this section is a public offense and is
punishable upon a first conviction by imprisonment in a county jail
for not more than one year, or by imprisonment in the state prison,
or by a fine not exceeding fifty thousand dollars ($50,000), or by
both that imprisonment and fine. A second or subsequent conviction is
punishable by imprisonment in the state prison or by imprisonment in
the state prison and a fine of fifty thousand dollars ($50,000).
  SEC. 5.  Section 1265.1 of the Business and Professions Code is
amended to read:
   1265.1.  (a) A primary care clinic that submits an application to
the State Department of Public Health for clinic licensure pursuant
to subdivision (a) of Section 1204 of the Health and Safety Code may
submit prior to that submission, or concurrent therewith, an
application for licensure or registration of a clinical laboratory to
be operated by the clinic.
   (b) An application for licensure of a clinical laboratory
submitted pursuant to this section shall be subject to all applicable
laboratory licensing laws and regulations, including, but not
limited to, any statutory or regulatory timelines and processes for
review of a clinical laboratory application.
  SEC. 6.  Section 1625.4 of the Business and Professions Code is
amended to read:
   1625.4.  (a) Where the dental practice of an incapacitated or
deceased dentist is a sole proprietorship or where an incapacitated
or deceased dentist is the sole shareholder of a professional dental
corporation, a person identified in subdivision (a) of Section 1625.3
may enter into a contract with one or more dentists licensed in the
state to continue the operations of the incapacitated or deceased
dentist's dental practice for a period of no more than 12 months from
the date of death or incapacity, or until the practice is sold or
otherwise disposed of, whichever occurs first, if all of the
following conditions are met:
   (1) The person identified in subdivision (a) of Section 1625.3
delivers to the board a notification of death or incapacity that
includes all of the following information:
   (A) The name and license number of the deceased or incapacitated
dentist.
   (B) The name and address of the dental practice.
   (C) If the dentist is deceased, the name, address, and tax
identification number of the estate or trust.
   (D) The name and license number of each dentist who will operate
the dental practice.
   (E) A statement that the information provided is true and correct,
and that the person identified in subdivision (a) of Section 1625.3
understands that any interference by the person or by his or her
assignee with the contracting dentist's or dentists' practice of
dentistry or professional judgment is grounds for immediate
termination of the operations of the dental practice without a
hearing. The statement shall also provide that if the person required
to make this notification willfully states as true any material fact
that he or she knows to be false, he or she shall be subject to a
civil penalty of up to ten thousand dollars ($10,000) in an action
brought by any public prosecutor. A civil penalty imposed under this
subparagraph shall be enforced as a civil judgment.
   (2) The dentist or dentists who will operate the practice shall be
licensed by the board and that license shall be current, valid, and
shall not be suspended, restricted, or otherwise the subject of
discipline.
   (3) Within 30 days after the death or incapacity of a dentist, the
person identified in subdivision (a) of Section 1625.3 or the
contracting dentist or dentists shall send notification of the death
or incapacity by mail to the last known address of each current
patient of record with an explanation of how copies of the patient's
records may be obtained. This notice may also contain any other
relevant information concerning the continuation of the dental
practice. The failure to comply with the notification requirement
within the 30-day period shall be grounds for terminating the
operation of the dental practice under subdivision (b). The
contracting dentist or dentists shall obtain a form signed by the
patient, or the patient's guardian or legal representative, that
releases the patient's confidential dental records to the contracting
dentist or dentists prior to use of those records.
   (b) The board may order the termination of the operations of a
dental practice operating pursuant to this section if the board
determines that the practice is operating in violation of this
section. The board shall provide written notification at the address
provided pursuant to subparagraph (B) of paragraph (1) of subdivision
(a). If the board does not receive a written appeal of the
determination that the practice is operating in violation of this
section within 10 days of receipt of the notice, the determination to
terminate the operations of the dental practice shall take effect
immediately. If an appeal is received in a timely manner by the
board, the executive officer of the board, or his or her designee,
shall conduct an informal hearing. The decision of the executive
officer or his or her designee shall be mailed to the practice no
later than 10 days after the informal hearing, is the final decision
in the matter, and is not subject to appeal under the Administrative
Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code).
   (c) Notwithstanding subdivision (b), if the board finds evidence
that the person identified in subdivision (a) of Section 1625.3, or
his or her assignee, has interfered with the practice or professional
judgment of the contracting dentist or dentists or otherwise finds
evidence that a violation of this section constitutes an immediate
threat to the public health, safety, or welfare, the board may
immediately order the termination of the operations of the dental
practice without an informal hearing.
   (d) A notice of an order of immediate termination of the dental
practice without an informal hearing, as referenced in subdivision
(b), shall be served by certified mail on the person identified in
subdivision (a) of Section 1625.3 at the address provided pursuant to
subparagraph (B) or (C) of paragraph (1) of subdivision (a), as
appropriate, and on the contracting dentist or dentists at the
address of the dental practice provided pursuant to subparagraph (B)
of paragraph (1) of subdivision (a).
   (e) A person receiving notice of an order of immediate termination
pursuant to subdivision (d) may petition the board within 30 days of
the date of service of the notice for an informal hearing before the
executive officer or his or her designee, which shall take place
within 30 days of the filing of the petition.
   (f) A notice of the decision of the executive officer or his or
her designee following an informal hearing held pursuant to
subdivision (b) shall be served by certified mail on the person
identified in subdivision (a) of Section 1625.3 at the address
provided pursuant to subparagraph (B) or (C) of paragraph (1) of
subdivision (a), as appropriate, and on the contracting dentist or
dentists at the address of the dental practice provided pursuant to
subparagraph (B) of paragraph (1) of subdivision (a).
   (g) The board may require the submission to the board of any
additional information necessary for the administration of this
section.
  SEC. 7.  Section 3152 of the Business and Professions Code is
amended to read:
   3152.  The amounts of fees and penalties prescribed by this
chapter shall be established by the board in amounts not greater than
those specified in the following schedule:
   (a) The fee for applicants applying for a license shall not exceed
two hundred seventy-five dollars ($275).
   (b) The fee for renewal of an optometric license shall not exceed
five hundred dollars ($500).
   (c) The annual fee for the renewal of a branch office license
shall not exceed seventy-five dollars ($75).
   (d) The fee for a branch office license shall not exceed
seventy-five dollars ($75).
   (e) The penalty for failure to pay the annual fee for renewal of a
branch office license shall not exceed twenty-five dollars ($25).
   (f) The fee for issuance of a license or upon change of name
authorized by law of a person holding a license under this chapter
shall not exceed twenty-five dollars ($25).
   (g) The delinquency fee for renewal of an optometric license shall
not exceed fifty dollars ($50).
   (h) The application fee for a certificate to treat lacrimal
irrigation and dilation shall not exceed fifty dollars ($50).
   (i) The application fee for a certificate to treat primary
open-angle glaucoma shall not exceed fifty dollars ($50).
   (j) The fee for approval of a continuing education course shall
not exceed one hundred dollars ($100).
   (k) The fee for issuance of a statement of licensure shall not
exceed forty dollars ($40).
   (l) The fee for biennial renewal of a statement of licensure shall
not exceed forty dollars ($40).
   (m) The delinquency fee for renewal of a statement of licensure
shall not exceed twenty dollars ($20).
   (n) The application fee for a fictitious name permit shall not
exceed fifty dollars ($50).
   (o) The renewal fee for a fictitious name permit shall not exceed
fifty dollars ($50).
   (p) The delinquency fee for renewal of a fictitious name permit
shall not exceed twenty-five dollars ($25).
  SEC. 8.  Section 3702 of the Business and Professions Code is
amended to read:
   3702.  Respiratory care as a practice means a health care
profession employed under the supervision of a medical director in
the therapy, management, rehabilitation, diagnostic evaluation, and
care of patients with deficiencies and abnormalities which affect the
pulmonary system and associated aspects of cardiopulmonary and other
systems functions, and includes all of the following:
   (a) Direct and indirect pulmonary care services that are safe,
aseptic, preventive, and restorative to the patient.
   (b) Direct and indirect respiratory care services, including, but
not limited to, the administration of pharmacological and diagnostic
and therapeutic agents related to respiratory care procedures
necessary to implement a treatment, disease prevention, pulmonary
rehabilitative, or diagnostic regimen prescribed by a physician and
surgeon.
   (c) Observation and monitoring of signs and symptoms, general
behavior, general physical response to respiratory care treatment and
diagnostic testing and (1) determination of whether such signs,
symptoms, reactions, behavior, or general response exhibits abnormal
characteristics; (2) implementation based on observed abnormalities
of appropriate reporting or referral or respiratory care protocols,
or changes in treatment regimen, pursuant to a prescription by a
physician and surgeon or the initiation of emergency procedures.
   (d) The diagnostic and therapeutic use of any of the following, in
accordance with the prescription of a physician and surgeon:
administration of medical gases, exclusive of general anesthesia;
aerosols; humidification; environmental control systems and
baromedical therapy; pharmacologic agents related to respiratory care
procedures; mechanical or physiological ventilatory support;
bronchopulmonary hygiene; cardiopulmonary resuscitation; maintenance
of the natural airways; insertion without cutting tissues and
maintenance of artificial airways; diagnostic and testing techniques
required for implementation of respiratory care protocols; collection
of specimens of blood; collection of specimens from the respiratory
tract; analysis of blood gases and respiratory secretions.
   (e) The transcription and implementation of the written and verbal
orders of a physician and surgeon pertaining to the practice of
respiratory care.
   "Respiratory care protocols" as used in this section means
policies and protocols developed by a licensed health facility
through collaboration, when appropriate, with administrators,
physicians and surgeons, registered nurses, physical therapists,
respiratory care practitioners, and other licensed health care
practitioners.
  SEC. 9.  Section 4999.2 of the Business and Professions Code is
amended to read:
   4999.2.  (a) In order to obtain and maintain a registration,
in-state or out-of-state telephone medical advice services shall
comply with the requirements established by the department. Those
requirements shall include, but shall not be limited to, all of the
following:
   (1) (A) Ensuring that all staff who provide medical advice
services are appropriately licensed, certified, or registered as a
physician and surgeon pursuant to Chapter 5 (commencing with Section
2000) or the Osteopathic Initiative Act, as a dentist pursuant to
Chapter 4 (commencing with Section 1600), as a dental hygienist
pursuant to Sections 1760 to 1775, inclusive, as a psychologist
pursuant to Chapter 6.6 (commencing with Section 2900), as an
optometrist pursuant to Chapter 7 (commencing with Section 3000), as
a marriage and family therapist pursuant to Chapter 13 (commencing
with Section 4980), as a licensed clinical social worker pursuant to
Chapter 14 (commencing with Section 4991), or as a chiropractor
pursuant to the Chiropractic Initiative Act, and operating consistent
with the laws governing their respective scopes of practice in the
state within which they provide telephone medical advice services,
except as provided in paragraph (2).
   (B) Ensuring that all staff who provide telephone medical advice
services from an out-of-state location are health care professionals,
as identified in subparagraph (A), who are licensed, registered, or
certified in the state within which they are providing the telephone
medical advice services and are operating consistent with the laws
governing their respective scopes of practice.
   (2) Ensuring that all registered nurses providing telephone
medical advice services to both in-state and out-of-state business
entities registered pursuant to this chapter are licensed pursuant to
Chapter 6 (commencing with Section 2700).
   (3) Ensuring that the telephone medical advice provided is
consistent with good professional practice.
   (4) Maintaining records of telephone medical advice services,
including records of complaints, provided to patients in California
for a period of at least five years.
   (5) Ensuring that no staff member uses a title or designation when
speaking to an enrollee or subscriber that may cause a reasonable
person to believe that the staff member is a licensed, certified, or
registered professional described in subparagraph (A) of paragraph
(1), unless the staff member is a licensed, certified, or registered
professional.
   (6) Complying with all directions and requests for information
made by the department.
   (b) To the extent permitted by Article VII of the California
Constitution, the department may contract with a private nonprofit
accrediting agency to evaluate the qualifications of applicants for
registration pursuant to this chapter and to make recommendations to
the department.
  SEC. 10.  Section 4999.7 of the Business and Professions Code is
amended to read:
   4999.7.  (a) This section does not limit, preclude, or otherwise
interfere with the practices of other persons licensed or otherwise
authorized to practice, under any other provision of this division,
telephone medical advice services consistent with the laws governing
their respective scopes of practice, or licensed under the
Osteopathic Initiative Act or the Chiropractic Initiative Act and
operating consistent with the laws governing their respective scopes
of practice.
   (b) For purposes of this chapter, "telephone medical advice" means
a telephonic communication between a patient and a health care
professional in which the health care professional's primary function
is to provide to the patient a telephonic response to the patient's
questions regarding his or her or a family member's medical care or
treatment. "Telephone medical advice" includes assessment,
evaluation, or advice provided to patients or their family members.
   (c) For purposes of this chapter, "health care professional" is a
staff person described in Section 4999.2 who provides medical advice
services and is appropriately licensed, certified, or registered as a
dentist pursuant to Chapter 4 (commencing with Section 1600), as a
dental hygienist pursuant to Sections 1760 to 1775, inclusive, as a
physician and surgeon pursuant to Chapter 5 (commencing with Section
2000) or the Osteopathic Initiative Act, as a registered nurse
pursuant to Chapter 6 (commencing with Section 2700), as a
psychologist pursuant to Chapter 6.6 (commencing with Section 2900),
as an optometrist pursuant to Chapter 7 (commencing with Section
3000), as a marriage and family therapist pursuant to Chapter 13
(commencing with Section 4980), as a licensed clinical social worker
pursuant to Chapter 14 (commencing with Section 4991), or as a
chiropractor pursuant to the Chiropractic Initiative Act, and who is
operating consistent with the laws governing his or her respective
scopes of practice in the state in which he or she provides telephone
medical advice services.
  SEC. 11.  Section 5216.6 of the Business and Professions Code is
amended to read:
   5216.6.  (a) "Officially designated scenic highway or scenic byway"
is any state highway that has been officially designated and
maintained as a state scenic highway pursuant to Sections 260, 261,
262, and 262.5 of the Streets and Highways Code or that has been
officially designated a scenic byway as referred to in Section 131(s)
of Title 23 of the United States Code.
   (b) "Officially designated scenic highway or scenic byway" does
not include routes listed as part of the State Scenic Highway system,
Article 2.5 (commencing with Section 260) of Chapter 2 of Division 1
of the Streets and Highways Code, unless those routes, or segments
of those routes, have been designated as officially designated state
scenic highways.
                               SEC. 12.  Section 5616 of the Business
and Professions Code is amended to read:
   5616.  (a) A landscape architect shall use a written contract when
contracting to provide professional services to a client pursuant to
this chapter. The written contract shall be executed by the
landscape architect and the client, or their representatives, prior
to the landscape architect commencing work, unless the client
knowingly states in writing that work may be commenced before the
contract is executed. The written contract shall include, but not be
limited to, all of the following:
   (1) A description of services to be provided by the landscape
architect to the client.
   (2) A description of any basis of compensation applicable to the
contract, including the total price that is required to complete the
contract, and the method of payment agreed upon by both parties.
   (3) A notice that reads:
   "Landscape architects are licensed by the State of California."
   (4) The name, address, and license number of the landscape
architect and the name and address of the client.
   (5) A description of the procedure that the landscape architect
and client will use to accommodate additional services.
   (6) A description of the procedure to be used by either party to
terminate the contract.
   (b) This section shall not apply if the client knowingly states in
writing after full disclosure of this section that a contract that
complies with this section is not required.
   (c) This section shall not apply to any of the following:
   (1) Professional services rendered by a landscape architect for
which the client will not pay compensation.
   (2) An arrangement as to the basis for compensation and manner of
providing professional services implied by the fact that the
landscape architect's services are of the same general kind that the
landscape architect has previously rendered to, and received payment
for from, the same client.
   (3) Professional services rendered by a landscape architect to any
of the following:
   (A) A landscape architect licensed under this chapter.
   (B) An architect licensed under Chapter 3 (commencing with Section
5500).
   (C) A professional engineer licensed under Chapter 7 (commencing
with Section 6700).
   (D) A contractor licensed under Chapter 9 (commencing with Section
7000).
   (E) A geologist or geophysicist licensed under Chapter 12.5
(commencing with Section 7800).
   (F) A professional land surveyor licensed under Chapter 15
(commencing with Section 8700).
   (G) A manufacturing, mining, public utility, research and
development, or other industrial corporation, if the services are
provided in connection with, or incidental to, the products, systems,
or services of that corporation or its affiliates.
   (H) A public agency.
   (d) As used in this section, "written contract" includes a
contract that is in electronic form.
  SEC. 13.  Section 5640 of the Business and Professions Code is
amended to read:
   5640.  It is a misdemeanor, punishable by a fine of not less than
one hundred dollars ($100) nor more than five thousand dollars
($5,000) or by imprisonment in a county jail not exceeding six
months, or by both that fine and imprisonment, for a person to do any
of the following without possessing a valid, unrevoked license as
provided in this chapter:
   (a) Engage in the practice of landscape architecture.
   (b) Use the title or term "landscape architect," "landscape
architecture," "landscape architectural," or any other titles, words,
or abbreviations that would imply or indicate that he or she is a
landscape architect as defined in Section 5615.
   (c) Use the stamp of a licensed landscape architect, as provided
in Section 5659.
   (d) Advertise or put out a sign, card, or other device that might
indicate to the public that he or she is a licensed landscape
architect or qualified to engage in the practice of landscape
architecture.
  SEC. 14.  Section 6073 of the Business and Professions Code is
amended to read:
   6073.  It has been the tradition of those learned in the law and
licensed to practice law in this state to provide voluntary pro bono
legal services to those who cannot afford the help of a lawyer. Every
lawyer authorized and privileged to practice law in California is
expected to make a contribution. In some circumstances, it may not be
feasible for a lawyer to directly provide pro bono services. In
those circumstances, a lawyer may instead fulfill his or her
individual pro bono ethical commitment, in part, by providing
financial support to organizations providing free legal services to
persons of limited means. In deciding to provide that financial
support, the lawyer should, at minimum, approximate the value of the
hours of pro bono legal service that he or she would otherwise have
provided. In some circumstances, pro bono contributions may be
measured collectively, as by a firm's aggregate pro bono activities
or financial contributions. Lawyers also make invaluable
contributions through their other voluntary public service activities
that increase access to justice or improve the law and the legal
system. In view of their expertise in areas that critically affect
the lives and well-being of members of the public, lawyers are
uniquely situated to provide invaluable assistance in order to
benefit those who might otherwise be unable to assert or protect
their interests, and to support those legal organizations that
advance these goals.
  SEC. 15.  Section 6212 of the Business and Professions Code is
amended to read:
   6212.  An attorney who, or a law firm that, establishes an IOLTA
account pursuant to subdivision (a) of Section 6211 shall comply with
all of the following provisions:
   (a) The IOLTA account shall be established and maintained with an
eligible institution offering or making available an IOLTA account
that meets the requirements of this article. The IOLTA account shall
be established and maintained consistent with the attorney's or law
firm's duties of professional responsibility. An eligible financial
institution shall have no responsibility for selecting the deposit or
investment product chosen for the IOLTA account.
   (b) Except as provided in subdivision (e), the rate of interest or
dividends payable on any IOLTA account shall not be less than the
interest rate or dividends generally paid by the eligible institution
to nonattorney customers on accounts of the same type meeting the
same minimum balance and other eligibility requirements as the IOLTA
account. In determining the interest rate or dividend payable on any
IOLTA account, an eligible institution may consider, in addition to
the balance in the IOLTA account, risk or other factors customarily
considered by the eligible institution when setting the interest rate
or dividends for its non-IOLTA accounts, provided that the factors
do not discriminate between IOLTA customers and non-IOLTA customers
and that these factors do not include the fact that the account is an
IOLTA account. The eligible institution shall calculate interest and
dividends in accordance with its standard practice for non-IOLTA
customers. Nothing in this article shall preclude an eligible
institution from paying a higher interest rate or dividend on an
IOLTA account or from electing to waive any fees and service charges
on an IOLTA account.
   (c) Reasonable fees may be deducted from the interest or dividends
remitted on an IOLTA account only at the rates and in accordance
with the customary practices of the eligible institution for
non-IOLTA customers. No other fees or service charges may be deducted
from the interest or dividends earned on an IOLTA account. Unless
and until the State Bar enacts regulations exempting from compliance
with subdivision (a) of Section 6211 those accounts for which
maintenance fees exceed the interest or dividends paid, an eligible
institution may deduct the fees and service charges in excess of the
interest or dividends paid on an IOLTA account from the aggregate
interest and dividends remitted to the State Bar. Fees and service
charges other than reasonable fees shall be the sole responsibility
of, and may only be charged to, the attorney or law firm maintaining
the IOLTA account. Fees and charges shall not be assessed against or
deducted from the principal of any IOLTA account. It is the intent of
the Legislature that the State Bar develop policies so that eligible
institutions do not incur uncompensated administrative costs in
adapting their systems to comply with the provisions of Chapter 422
of the Statutes of 2007 or in making investment products available to
IOLTA members.
   (d) The eligible institution shall be directed to do all of the
following:
   (1) To remit interest or dividends on the IOLTA account, less
reasonable fees, to the State Bar, at least quarterly.
   (2) To transmit to the State Bar with each remittance a statement
showing the name of the attorney or law firm for which the remittance
is sent, for each account the rate of interest applied or dividend
paid, the amount and type of fees deducted, if any, and the average
balance for each account for each month of the period for which the
report is made.
   (3) To transmit to the attorney or law firm customer at the same
time a report showing the amount paid to the State Bar for that
period, the rate of interest or dividend applied, the amount of fees
and service charges deducted, if any, and the average daily account
balance for each month of the period for which the report is made.
   (e) An eligible institution has no affirmative duty to offer or
make investment products available to IOLTA customers. However, if an
eligible institution offers or makes investment products available
to non-IOLTA customers, in order to remain an IOLTA-eligible
institution, it shall make those products available to IOLTA
customers or pay an interest rate on the IOLTA deposit account that
is comparable to the rate of return or the dividends generally paid
on that investment product for similar customers meeting the same
minimum balance and other requirements applicable to the investment
product. If the eligible institution elects to pay that higher
interest rate, the eligible institution may subject the IOLTA deposit
account to equivalent fees and charges assessable against the
investment product.
  SEC. 16.  Section 6213 of the Business and Professions Code is
amended to read:
   6213.  As used in this article:
   (a) "Qualified legal services project" means either of the
following:
   (1) A nonprofit project incorporated and operated exclusively in
California which provides as its primary purpose and function legal
services without charge to indigent persons and which has quality
control procedures approved by the State Bar of California.
   (2) A program operated exclusively in California by a nonprofit
law school accredited by the State Bar of California which meets the
requirements of subparagraphs (A) and (B).
   (A) The program shall have operated for at least two years at a
cost of at least twenty thousand dollars ($20,000) per year as an
identifiable law school unit with a primary purpose and function of
providing legal services without charge to indigent persons.
   (B) The program shall have quality control procedures approved by
the State Bar of California.
   (b) "Qualified support center" means an incorporated nonprofit
legal services center that has as its primary purpose and function
the provision of legal training, legal technical assistance, or
advocacy support without charge and which actually provides through
an office in California a significant level of legal training, legal
technical assistance, or advocacy support without charge to qualified
legal services projects on a statewide basis in California.
   (c) "Recipient" means a qualified legal services project or
support center receiving financial assistance under this article.
   (d) "Indigent person" means a person whose income is (1) 125
percent or less of the current poverty threshold established by the
United States Office of Management and Budget, or (2) who is eligible
for Supplemental Security Income or free services under the Older
Americans Act or Developmentally Disabled Assistance Act. With regard
to a project that provides free services of attorneys in private
practice without compensation, "indigent person" also means a person
whose income is 75 percent or less of the maximum levels of income
for lower income households as defined in Section 50079.5 of the
Health and Safety Code. For the purpose of this subdivision, the
income of a person who is disabled shall be determined after
deducting the costs of medical and other disability-related special
expenses.
   (e) "Fee generating case" means a case or matter that, if
undertaken on behalf of an indigent person by an attorney in private
practice, reasonably may be expected to result in payment of a fee
for legal services from an award to a client, from public funds, or
from the opposing party. A case shall not be considered fee
generating if adequate representation is unavailable and any of the
following circumstances exist:
   (1) The recipient has determined that free referral is not
possible because of any of the following reasons:
   (A) The case has been rejected by the local lawyer referral
service, or if there is no such service, by two attorneys in private
practice who have experience in the subject matter of the case.
   (B) Neither the referral service nor any attorney will consider
the case without payment of a consultation fee.
   (C) The case is of the type that attorneys in private practice in
the area ordinarily do not accept, or do not accept without
prepayment of a fee.
   (D) Emergency circumstances compel immediate action before
referral can be made, but the client is advised that, if appropriate
and consistent with professional responsibility, referral will be
attempted at a later time.
   (2) Recovery of damages is not the principal object of the case
and a request for damages is merely ancillary to an action for
equitable or other nonpecuniary relief, or inclusion of a
counterclaim requesting damages is necessary for effective defense or
because of applicable rules governing joinder of counterclaims.
   (3) A court has appointed a recipient or an employee of a
recipient pursuant to a statute or a court rule or practice of equal
applicability to all attorneys in the jurisdiction.
   (4) The case involves the rights of a claimant under a publicly
supported benefit program for which entitlement to benefit is based
on need.
   (f) "Legal Services Corporation" means the Legal Services
Corporation established under the Legal Services Corporation Act of
1974 (P.L. 93-355; 42 U.S.C. Sec. 2996 et seq.).
   (g) "Older Americans Act" means the Older Americans Act of 1965,
as amended (P.L. 89-73; 42 U.S.C. Sec. 3001 et seq.).
   (h) "Developmentally Disabled Assistance Act" means the
Developmentally Disabled Assistance and Bill of Rights Act, as
amended (P.L. 94-103; 42 U.S.C. Sec. 6001 et seq.).
   (i) "Supplemental security income recipient" means an individual
receiving or eligible to receive payments under Title XVI of the
federal Social Security Act, or payments under Chapter 3 (commencing
with Section 12000) of Part 3 of Division 9 of the Welfare and
Institutions Code.
   (j) "IOLTA account" means an account or investment product
established and maintained pursuant to subdivision (a) of Section
6211 that is any of the following:
   (1) An interest-bearing checking account.
   (2) An investment sweep product that is a daily (overnight)
financial institution repurchase agreement or an open-end
money-market fund.
   (3) An investment product authorized by California Supreme Court
rule or order.
   A daily financial institution repurchase agreement shall be fully
collateralized by United States Government Securities or other
comparably conservative debt securities, and may be established only
with any eligible institution that is "well-capitalized" or
"adequately capitalized" as those terms are defined by applicable
federal statutes and regulations. An open-end money-market fund shall
be invested solely in United States Government Securities or
repurchase agreements fully collateralized by United States
Government Securities or other comparably conservative debt
securities, shall hold itself out as a "money-market fund" as that
term is defined by federal statutes and regulations under the
Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.), and,
at the time of the investment, shall have total assets of at least
two hundred fifty million dollars ($250,000,000).
   (k) "Eligible institution" means a bank or any other type of
financial institution authorized by the Supreme Court.
  SEC. 17.  Section 7027.5 of the Business and Professions Code is
amended to read:
   7027.5.  (a) A landscape contractor working within the
classification for which the license is issued may design systems or
facilities for work to be performed and supervised by that
contractor.
   (b) Notwithstanding any other provision of this chapter, a
landscape contractor working within the classification for which the
license is issued may enter into a prime contract for the
construction of any of the following:
   (1) A swimming pool, spa, or hot tub, provided that the
improvements are included within the landscape project that the
landscape contractor is supervising and the construction of any
swimming pool, spa, or hot tub is subcontracted to a single licensed
contractor holding a Swimming Pool (C-53) classification, as set
forth in Section 832.53 of Title 16 of the California Code of
Regulations, or performed by the landscape contractor if the
landscape contractor also holds a Swimming Pool (C-53)
classification. The contractor constructing the swimming pool, spa,
or hot tub may subcontract with other appropriately licensed
contractors for the completion of individual components of the
construction.
   (2) An outdoor cooking center, provided that the improvements are
included within a residential landscape project that the contractor
is supervising. For purposes of this subdivision, "outdoor cooking
center" means an unenclosed area within a landscape that is used for
the cooking or preparation of food or beverages.
   (3) An outdoor fireplace, provided that it is included within a
residential landscape project that the contractor is supervising and
is not attached to a dwelling.
   (c) Work performed in connection with a residential landscape
project specified in paragraph (2) or (3) of subdivision (b) that is
outside of the field and scope of activities authorized to be
performed under the Landscape Contractor classification (C-27), as
set forth in Section 832.27 of Title 16 of the California Code of
Regulations, may only be performed by a landscape contractor if the
landscape contractor also either holds an appropriate specialty
license classification to perform the work or is licensed as a
general building contractor. If the landscape contractor neither
holds an appropriate specialty license classification to perform the
work nor is licensed as a general building contractor, the work shall
be performed by a specialty contractor holding the appropriate
license classification or by a general building contractor performing
work in accordance with the requirements of subdivision (b) of
Section 7057.
   (d) A violation of this section shall be cause for disciplinary
action.
  SEC. 18.  Section 7159 of the Business and Professions Code is
amended to read:
   7159.  (a) (1) This section identifies the projects for which a
home improvement contract is required, outlines the contract
requirements, and lists the items that shall be included in the
contract, or may be provided as an attachment.
   (2) This section does not apply to service and repair contracts
that are subject to Section 7159.10, if the contract for the
applicable services complies with Sections 7159.10 to 7159.14,
inclusive.
   (3) This section does not apply to the sale, installation, and
servicing of a fire alarm sold in conjunction with an alarm system,
as defined in subdivision (n) of Section 7590.1, if all costs
attributable to making the fire alarm system operable, including sale
and installation costs, do not exceed five hundred dollars ($500),
and the licensee complies with the requirements set forth in Section
7159.9.
   (4) This section does not apply to any costs associated with
monitoring a burglar or fire alarm system.
   (5) Failure by the licensee, his or her agent or salesperson, or
by a person subject to be licensed under this chapter, to provide the
specified information, notices, and disclosures in the contract, or
to otherwise fail to comply with any provision of this section, is
cause for discipline.
   (b) For purposes of this section, "home improvement contract"
means an agreement, whether oral or written, or contained in one or
more documents, between a contractor and an owner or between a
contractor and a tenant, regardless of the number of residence or
dwelling units contained in the building in which the tenant resides,
if the work is to be performed in, to, or upon the residence or
dwelling unit of the tenant, for the performance of a home
improvement, as defined in Section 7151, and includes all labor,
services, and materials to be furnished and performed thereunder, if
the aggregate contract price specified in one or more improvement
contracts, including all labor, services, and materials to be
furnished by the contractor, exceeds five hundred dollars ($500).
"Home improvement contract" also means an agreement, whether oral or
written, or contained in one or more documents, between a
salesperson, whether or not he or she is a home improvement
salesperson, and an owner or a tenant, regardless of the number of
residence or dwelling units contained in the building in which the
tenant resides, which provides for the sale, installation, or
furnishing of home improvement goods or services.
   (c) In addition to the specific requirements listed under this
section, every home improvement contract and any person subject to
licensure under this chapter or his or her agent or salesperson shall
comply with all of the following:
   (1) The writing shall be legible.
   (2) Any printed form shall be readable. Unless a larger typeface
is specified in this article, text in any printed form shall be in at
least 10-point typeface and the headings shall be in at least
10-point boldface type.
   (3) (A) Before any work is started, the contractor shall give the
buyer a copy of the contract signed and dated by both the contractor
and the buyer. The buyer's receipt of the copy of the contract
initiates the buyer's rights to cancel the contract pursuant to
Sections 1689.5 to 1689.14, inclusive, of the Civil Code.
   (B) The contract shall contain on the first page, in a typeface no
smaller than that generally used in the body of the document, both
of the following:
   (i) The date the buyer signed the contract.
   (ii) The name and address of the contractor to which the
applicable "Notice of Cancellation" is to be mailed, immediately
preceded by a statement advising the buyer that the "Notice of
Cancellation" may be sent to the contractor at the address noted on
the contract.
   (4) A statement that, upon satisfactory payment being made for any
portion of the work performed, the contractor, prior to any further
payment being made, shall furnish to the person contracting for the
home improvement or swimming pool work a full and unconditional
release from any claim or mechanic's lien pursuant to Section 3114 of
the Civil Code for that portion of the work for which payment has
been made.
   (5) A change-order form for changes or extra work shall be
incorporated into the contract and shall become part of the contract
only if it is in writing and signed by the parties prior to the
commencement of any work covered by a change order.
   (6) The contract shall contain, in close proximity to the
signatures of the owner and contractor, a notice stating that the
owner or tenant has the right to require the contractor to have a
performance and payment bond.
   (7) If the contract provides for a contractor to furnish joint
control, the contractor shall not have any financial or other
interest in the joint control.
   (8) The provisions of this section are not exclusive and do not
relieve the contractor from compliance with any other applicable
provision of law.
   (d) A home improvement contract and any changes to the contract
shall be in writing and signed by the parties to the contract prior
to the commencement of work covered by the contract or an applicable
change order and, except as provided in paragraph (8) of subdivision
(a) of Section 7159.5, shall include or comply with all of the
following:
   (1) The name, business address, and license number of the
contractor.
   (2) If applicable, the name and registration number of the home
improvement salesperson that solicited or negotiated the contract.
   (3) The following heading on the contract form that identifies the
type of contract in at least 10-point boldface type: "Home
Improvement."
   (4) The following statement in at least 12-point boldface type:
"You are entitled to a completely filled in copy of this agreement,
signed by both you and the contractor, before any work may be
started."
   (5) The heading: "Contract Price," followed by the amount of the
contract in dollars and cents.
   (6) If a finance charge will be charged, the heading: "Finance
Charge," followed by the amount in dollars and cents. The finance
charge is to be set out separately from the contract amount.
   (7) The heading: "Description of the Project and Description of
the Significant Materials to be Used and Equipment to be Installed,"
followed by a description of the project and a description of the
significant materials to be used and equipment to be installed. For
swimming pools, the project description required under this paragraph
also shall include a plan and scale drawing showing the shape, size,
dimensions, and the construction and equipment specifications.
   (8) If a downpayment will be charged, the details of the
downpayment shall be expressed in substantially the following form,
and shall include the text of the notice as specified in subparagraph
(C):
   (A) The heading: "Downpayment."
   (B) A space where the actual downpayment appears.
   (C) The following statement in at least 12-point boldface type:
   "THE DOWNPAYMENT MAY NOT EXCEED $1,000 OR 10 PERCENT OF THE
CONTRACT PRICE, WHICHEVER IS LESS."
   (9) If payments, other than the downpayment, are to be made before
the project is completed, the details of these payments, known as
progress payments, shall be expressed in
                      substantially the following form, and shall
include the text of the statement as specified in subparagraph (C):
   (A) A schedule of progress payments shall be preceded by the
heading: "Schedule of Progress Payments."
   (B) Each progress payment shall be stated in dollars and cents and
specifically reference the amount of work or services to be
performed and materials and equipment to be supplied.
   (C) The section of the contract reserved for the progress payments
shall include the following statement in at least 12-point boldface
type:
   "The schedule of progress payments must specifically describe each
phase of work, including the type and amount of work or services
scheduled to be supplied in each phase, along with the amount of each
proposed progress payment. IT IS AGAINST THE LAW FOR A CONTRACTOR TO
COLLECT PAYMENT FOR WORK NOT YET COMPLETED, OR FOR MATERIALS NOT YET
DELIVERED. HOWEVER, A CONTRACTOR MAY REQUIRE A DOWNPAYMENT."
   (10) The contract shall address the commencement of work to be
performed in substantially the following form:
   (A) A statement that describes what constitutes substantial
commencement of work under the contract.
   (B) The heading: "Approximate Start Date."
   (C) The approximate date on which work will be commenced.
   (11) The estimated completion date of the work shall be referenced
in the contract in substantially the following form:
   (A) The heading: "Approximate Completion Date."
   (B) The approximate date of completion.
   (12) If applicable, the heading: "List of Documents to be
Incorporated into the Contract," followed by the list of documents
incorporated into the contract.
   (13) The heading: "Note about Extra Work and Change Orders,"
followed by the following statement:
   "Extra Work and Change Orders become part of the contract once the
order is prepared in writing and signed by the parties prior to the
commencement of work covered by the new change order. The order must
describe the scope of the extra work or change, the cost to be added
or subtracted from the contract, and the effect the order will have
on the schedule of progress payments."
   (e) Except as provided in paragraph (8) of subdivision (a) of
Section 7159.5, all of the following notices shall be provided to the
owner as part of the contract form as specified or, if otherwise
authorized under this subdivision, may be provided as an attachment
to the contract:
   (1) A notice concerning commercial general liability insurance.
This notice may be provided as an attachment to the contract if the
contract includes the following statement: "A notice concerning
commercial general liability insurance is attached to this contract."
The notice shall include the heading "Commercial General Liability
Insurance (CGL)," followed by whichever of the following statements
is both relevant and correct:
   (A) "(The name on the license or "This contractor') does not carry
commercial general liability insurance."
   (B) "(The name on the license or "This contractor') carries
commercial general liability insurance written by (the insurance
company). You may call (the insurance company) at __________ to check
the contractor's insurance coverage."
   (C) "(The name on the license or "This contractor') is
self-insured."
   (2) A notice concerning workers' compensation insurance. This
notice may be provided as an attachment to the contract if the
contract includes the statement: "A notice concerning workers'
compensation insurance is attached to this contract." The notice
shall include the heading "Workers' Compensation Insurance" followed
by whichever of the following statements is correct:
   (A) "(The name on the license or "This contractor') has no
employees and is exempt from workers' compensation requirements."
   (B) "(The name on the license or "This contractor') carries
workers' compensation insurance for all employees."
   (3) A notice that provides the buyer with the following
information about the performance of extra or change-order work:
   (A) A statement that the buyer may not require a contractor to
perform extra or change-order work without providing written
authorization prior to the commencement of work covered by the new
change order.
   (B) A statement informing the buyer that extra work or a change
order is not enforceable against a buyer unless the change order also
identifies all of the following in writing prior to the commencement
of work covered by the new change order:
   (i) The scope of work encompassed by the order.
   (ii) The amount to be added or subtracted from the contract.
   (iii) The effect the order will make in the progress payments or
the completion date.
   (C) A statement informing the buyer that the contractor's failure
to comply with the requirements of this paragraph does not preclude
the recovery of compensation for work performed based upon legal or
equitable remedies designed to prevent unjust enrichment.
   (4) A notice with the heading "Mechanics' Lien Warning" written as
follows:

   "MECHANICS' LIEN WARNING:
   Anyone who helps improve your property, but who is not paid, may
record what is called a mechanics' lien on your property. A mechanics'
lien is a claim, like a mortgage or home equity loan, made against
your property and recorded with the county recorder.
   Even if you pay your contractor in full, unpaid subcontractors,
suppliers, and laborers who helped to improve your property may
record mechanics' liens and sue you in court to foreclose the lien.
If a court finds the lien is valid, you could be forced to pay twice
or have a court officer sell your home to pay the lien. Liens can
also affect your credit.
   To preserve their right to record a lien, each subcontractor and
material supplier must provide you with a document called a "20-day
Preliminary Notice.' This notice is not a lien. The purpose of the
notice is to let you know that the person who sends you the notice
has the right to record a lien on your property if he or she is not
paid.
   BE CAREFUL.  The Preliminary Notice can be sent up to 20 days
after the subcontractor starts work or the supplier provides
material. This can be a big problem if you pay your contractor before
you have received the Preliminary Notices.
   You will not get Preliminary Notices from your prime contractor or
from laborers who work on your project. The law assumes that you
already know they are improving your property.
   PROTECT YOURSELF FROM LIENS.  You can protect yourself from liens
by getting a list from your contractor of all the subcontractors and
material suppliers that work on your project. Find out from your
contractor when these subcontractors started work and when these
suppliers delivered goods or materials. Then wait 20 days, paying
attention to the Preliminary Notices you receive.
   PAY WITH JOINT CHECKS.  One way to protect yourself is to pay with
a joint check. When your contractor tells you it is time to pay for
the work of a subcontractor or supplier who has provided you with a
Preliminary Notice, write a joint check payable to both the
contractor and the subcontractor or material supplier.
   For other ways to prevent liens, visit CSLB's Internet Web site at
www.cslb.ca.gov or call CSLB at 800-321-CSLB (2752).
   REMEMBER, IF YOU DO NOTHING, YOU RISK HAVING A LIEN PLACED ON YOUR
HOME. This can mean that you may have to pay twice, or face the
forced sale of your home to pay what you owe."

   (5) The following notice shall be provided in at least 12-point
typeface:

   "Information about the Contractors' State License Board (CSLB):
CSLB is the state consumer protection agency that licenses and
regulates construction contractors.
   Contact CSLB for information about the licensed contractor you are
considering, including information about disclosable complaints,
disciplinary actions, and civil judgments that are reported to CSLB.
   Use only licensed contractors. If you file a complaint against a
licensed contractor within the legal deadline (usually four years),
CSLB has authority to investigate the complaint. If you use an
unlicensed contractor, CSLB may not be able to help you resolve your
complaint. Your only remedy may be in civil court, and you may be
liable for damages arising out of any injuries to the unlicensed
contractor or the unlicensed contractor's employees.
   For more information:
   Visit CSLB's Internet Web site at www.cslb.ca.gov
   Call CSLB at 800-321-CSLB (2752)
   Write CSLB at P.O. Box 26000, Sacramento, CA 95826."

   (6) (A) The notice set forth in subparagraph (B) and entitled
"Three-Day Right to Cancel," shall be provided to the buyer unless
the contract is:
   (i) Negotiated at the contractor's place of business.
   (ii) Subject to the "Seven-Day Right to Cancel," as set forth in
paragraph (7).
   (iii) Subject to licensure under the Alarm Company Act (Chapter
11.6 (commencing with Section 7590)), provided the alarm company
licensee complies with Sections 1689.5, 1689.6, and 1689.7 of the
Civil Code, as applicable.

   (B) "Three-Day Right to Cancel
   You, the buyer, have the right to cancel this contract within
three business days. You may cancel by e-mailing, mailing, faxing, or
delivering a written notice to the contractor at the contractor's
place of business by midnight of the third business day after you
received a signed and dated copy of the contract that includes this
notice. Include your name, your address, and the date you received
the signed copy of the contract and this notice.
   If you cancel, the contractor must return to you anything you paid
within 10 days of receiving the notice of cancellation. For your
part, you must make available to the contractor at your residence, in
substantially as good condition as you received them, goods
delivered to you under this contract or sale. Or, you may, if you
wish, comply with the contractor's instructions on how to return the
goods at the contractor's expense and risk. If you do make the goods
available to the contractor and the contractor does not pick them up
within 20 days of the date of your notice of cancellation, you may
keep them without any further obligation. If you fail to make the
goods available to the contractor, or if you agree to return the
goods to the contractor and fail to do so, then you remain liable for
performance of all obligations under the contract."

   (C) The "Three-Day Right to Cancel" notice required by this
paragraph shall comply with all of the following:
   (i) The text of the notice is at least 12-point boldface type.
   (ii) The notice is in immediate proximity to a space reserved for
the owner's signature.
   (iii) The owner acknowledges receipt of the notice by signing and
dating the notice form in the signature space.
   (iv) The notice is written in the same language, e.g., Spanish, as
that principally used in any oral sales presentation.
   (v) The notice may be attached to the contract if the contract
includes, in at least 12-point boldface type, a checkbox with the
following statement: "The law requires that the contractor give you a
notice explaining your right to cancel. Initial the checkbox if the
contractor has given you a "Notice of the Three-Day Right to Cancel.'
"
   (vi) The notice shall be accompanied by a completed form in
duplicate, captioned "Notice of Cancellation," which also shall be
attached to the agreement or offer to purchase and be easily
detachable, and which shall contain the following statement written
in the same language, e.g., Spanish, as used in the contract:
             ""Notice of Cancellation''
                      /enter date of transaction/
                    ______________________________
                                (Date)


   "You may cancel this transaction, without any penalty or
obligation, within three business days from the above date.
   If you cancel, any property traded in, any payments made by you
under the contract or sale, and any negotiable instrument executed by
you will be returned within 10 days following receipt by the seller
of your cancellation notice, and any security interest arising out of
the transaction will be canceled.
   If you cancel, you must make available to the seller at your
residence, in substantially as good condition as when received, any
goods delivered to you under this contract or sale, or you may, if
you wish, comply with the instructions of the seller regarding the
return shipment of the goods at the seller's expense and risk.
   If you do make the goods available to the seller and the seller
does not pick them up within 20 days of the date of your notice of
cancellation, you may retain or dispose of the goods without any
further obligation. If you fail to make the goods available to the
seller, or if you agree to return the goods to the seller and fail to
do so, then you remain liable for performance of all obligations
under the contract."
To cancel this transaction, mail or deliver a
signed and dated copy of this cancellation
notice, or any other written notice, or send a
telegram
to_____________________________________________,
                /name of seller/
at______________________________________________
           /address of seller's place of
business/
not later than midnight of_____________________.
                           (Date)
  I hereby cancel this transaction. _____________
                             (Date)
             ____________________________________
                       (Buyer's signature)


   (7) (A) The following notice entitled "Seven-Day Right to Cancel"
shall be provided to the buyer for any contract that is written for
the repair or restoration of residential premises damaged by any
sudden or catastrophic event for which a state of emergency has been
declared by the President of the United States or the Governor, or
for which a local emergency has been declared by the executive
officer or governing body of any city, county, or city and county:

   "Seven-Day Right to Cancel
   You, the buyer, have the right to cancel this contract within
seven business days. You may cancel by e-mailing, mailing, faxing, or
delivering a written notice to the contractor at the contractor's
place of business by midnight of the seventh business day after you
received a signed and dated copy of the contract that includes this
notice. Include your name, your address, and the date you received
the signed copy of the contract and this notice.
   If you cancel, the contractor must return to you anything you paid
within 10 days of receiving the notice of cancellation. For your
part, you must make available to the contractor at your residence, in
substantially as good condition as you received them, goods
delivered to you under this contract or sale. Or, you may, if you
wish, comply with the contractor's instructions on how to return the
goods at the contractor's expense and risk. If you do make the goods
available to the contractor and the contractor does not pick them up
within 20 days of the date of your notice of cancellation, you may
keep them without any further obligation. If you fail to make the
goods available to the contractor, or if you agree to return the
goods to the contractor and fail to do so, then you remain liable for
performance of all obligations under the contract."

   (B) The "Seven-Day Right to Cancel" notice required by this
subdivision shall comply with all of the following:
   (i) The text of the notice is at least 12-point boldface type.
   (ii) The notice is in immediate proximity to a space reserved for
the owner's signature.
   (iii) The owner acknowledges receipt of the notice by signing and
dating the notice form in the signature space.
   (iv) The notice is written in the same language, e.g., Spanish, as
that principally used in any oral sales presentation.
   (v) The notice may be attached to the contract if the contract
includes, in at least 12-point boldface type, a checkbox with the
following statement: "The law requires that the contractor give you a
notice explaining your right to cancel. Initial the checkbox if the
contractor has given you a "Notice of the Seven-Day Right to Cancel.'
"
   (vi) The notice shall be accompanied by a completed form in
duplicate, captioned "Notice of Cancellation," which shall also be
attached to the agreement or offer to purchase and be easily
detachable, and which shall contain the following statement written
in the same language, e.g., Spanish, as used in the contract:
            ""Notice of Cancellation''
                      /enter date of transaction/
                    ______________________________
                                (Date)


   "You may cancel this transaction, without any penalty or
obligation, within seven business days from the above date.
   If you cancel, any property traded in, any payments made by you
under the contract or sale, and any negotiable instrument executed by
you will be returned within 10 days following receipt by the seller
of your cancellation notice, and any security interest arising out of
the transaction will be canceled.
   If you cancel, you must make available to the seller at your
residence, in substantially as good condition as when received, any
goods delivered to you under this contract or sale, or you may, if
you wish, comply with the instructions of the seller regarding the
return shipment of the goods at the seller's expense and risk.
   If you do make the goods available to the seller and the seller
does not pick them up within 20 days of the date of your notice of
cancellation, you may retain or dispose of the goods without any
further obligation. If you fail to make the goods available to the
seller, or if you agree to return the goods to the seller and fail to
do so, then you remain liable for performance of all obligations
under the contract."
To cancel this transaction, mail or deliver a
signed and dated copy of this cancellation
notice, or any other written notice, or
send a telegram
to_____________________________________________,
                /name of seller/
at______________________________________________
           /address of seller's place of
business/
not later than midnight of_____________________.
                           (Date)
  I hereby cancel this transaction. _____________
                             (Date)
             ____________________________________
                        (Buyer's signature)


  SEC. 19.  Section 8698.5 of the Business and Professions Code is
amended to read:
   8698.5.  Funds collected pursuant to this chapter shall be paid to
the county and used for the sole purpose of funding enforcement and
training activities directly related to the structural fumigation
program created pursuant to Section 8698. The fees collected under
this chapter shall be in addition to, and shall not be used to
supplant, other funds provided to the county agricultural
commissioner pursuant to Section 12844 of the Food and Agricultural
Code.
  SEC. 20.  Section 14207 of the Business and Professions Code is
amended to read:
   14207.  (a) Subject to the limitations set forth in this chapter,
a person who uses a mark may file with the secretary, on a form
prescribed by the secretary, an application for registration of that
mark setting forth, but not limited to, the following information:
   (1) The name and business address of the person applying for the
registration and, if that person is a corporation or partnership, the
state of incorporation or the state in which the partnership is
organized and the names of the general partners, as specified by the
secretary.
   (2) The goods or services on or in connection with which the mark
is used, the mode or manner in which the mark is used on or in
connection with the goods or services, and the class in which the
goods or services fall.
   (3) The date on which the mark was first used anywhere and the
date when it was first used in this state by the applicant or a
predecessor in interest.
   (4) A statement that the applicant is the owner of the mark, that
the mark is in use, and that, to the knowledge of the person
verifying the application, no other person has registered in this
state or has the right to use the mark, either in the identical form
or in such near resemblance as to be likely, when applied to the
goods or services of the other person, to cause confusion, to cause
mistake, or to deceive.
   (b) The secretary may also require a statement as to whether an
application to register the mark, or portions or a composite thereof,
has been filed by the applicant or a predecessor in interest with
the United States Patent and Trademark Office and, if so, the
applicant shall provide full particulars with respect thereto,
including the filing date and serial number of each application, the
status thereof, and, if any application was finally refused
registration or has otherwise not resulted in a registration, the
reasons for the refusal or result.
   (c) The secretary may also require that a drawing of the mark,
complying with requirements specified by the secretary, accompany the
application.
   (d) The application shall include a declaration of accuracy signed
by the applicant, by a member of the firm or an officer of the
corporation or association making application, or by a general
partner of the partnership making application. If the person signing
the declaration willfully states as true in the declaration a
material fact that he or she knows to be false, he or she shall be
subject to a civil penalty of not more than ten thousand dollars
($10,000). An action for that penalty may be brought by a public
prosecutor. The person signing the declaration shall be informed of
this penalty in writing.
   (e) The application shall be accompanied by three specimens
showing the mark as actually used.
   (f) The application shall be accompanied by the application fee
payable to the secretary as set forth in subdivision (a) of Section
12193 of the Government Code.
   (g) If the mark or any part of the mark is in any language other
than English, the application shall be accompanied by a certified
translation in English.
  SEC. 21.  Section 14245 of the Business and Professions Code is
amended to read:
   14245.  (a) A person who does any of the following shall be
subject to a civil action by the owner of the registered mark, and
the remedies provided in Section 14250:
   (1) Uses, without the consent of the registrant, any reproduction,
counterfeit, copy, or colorable imitation of a mark registered under
this chapter in connection with the sale, distribution, offering for
sale, or advertising of goods or services on or in connection with
which the use is likely to cause confusion or mistake, or to deceive
as to the source of origin of the goods or services.
   (2) Reproduces, counterfeits, copies, or colorably imitates the
mark and applies the reproduction, counterfeit, copy, or colorable
imitation to labels, signs, prints, packages, wrappers, receptacles,
or advertisements intended to be used upon or in connection with the
sale or other distribution in this state of goods or services. The
registrant shall not be entitled under this paragraph to recover
profits or damages unless the acts have been committed with knowledge
that the mark is intended to be used to cause confusion or mistake,
or to deceive.
   (3) Knowingly facilitate, enable, or otherwise assist a person to
manufacture, use, distribute, display, or sell goods or services
bearing a reproduction, counterfeit, copy, or colorable imitation of
a mark registered under this chapter, without the consent of the
registrant. An action by a person is presumed to have been taken
knowingly following delivery to that person by personal delivery,
courier, or certified mail return receipt requested, of a written
demand to cease and desist that is accompanied by all of the
following:
   (A) A copy of the certificate of registration and of a claimed
reproduction, counterfeit, copy, or colorable imitation of the
registered mark.
   (B) A statement, made under penalty of perjury, by the owner of
the registered mark, by an officer of the corporation that owns the
registered mark, or by legal counsel for the owner of the registered
mark, that includes all of the following:
   (i) The name or description of the infringer.
   (ii) The product or service and mark being or to be infringed.
   (iii) The dates of the infringement.
   (iv) Other reasonable information to assist the recipient to
identify the infringer.
   (4) The presumption created by paragraph (3) does not affect the
owner's burden of showing that there was a violation of this chapter.

   (5) Paragraph (3) is applicable to a landlord or property owner
who provides, rents, leases, or licenses the use of real property
where goods or services bearing a reproduction, counterfeit, copy, or
colorable imitation of a mark registered pursuant to this chapter
are sold, offered for sale, or advertised, where the landlord or
property owner had control of the property and knew, or had reason to
know, of the infringing activity.
   (b) Notwithstanding any other provision of this chapter, the
remedies given to the owner of the right infringed pursuant to this
section are limited as follows:
   (1) If an infringer or violator is engaged solely in the business
of printing the mark or violating matter for others and establishes
that he or she was an innocent infringer or innocent violator, the
owner of the right infringed is entitled only to an injunction
against future printing of the mark by the innocent infringer or
innocent violator.
   (2) If the infringement complained of is contained in, or is part
of, paid advertising matter in a newspaper, magazine, or other
similar periodical, or in an electronic communication as defined in
subsection (12) of Section 2510 of Title 18 of the United States
Code, the remedies of the owner of the right infringed against the
publisher or distributor of the newspaper, magazine, or other similar
periodical or electronic communication shall be confined to an
injunction against the presentation of the advertising matter in
future issues of the newspapers, magazines, or other similar
periodicals or in further transmissions of the electronic
communication. The limitation of this subdivision shall apply only to
innocent infringers and innocent violators.
   (3) Injunctive relief is not available to the owner of the right
infringed with respect to an issue of a newspaper, magazine, or other
similar periodical or electronic communication containing infringing
matter if restraining the dissemination of the infringing matter in
a particular issue of the periodical or in an electronic
communication would delay the delivery of the issue or transmission
of the electronic communication after the regular time for
                                   delivery and the delay would be
due to the method by which publication and distribution of the
periodical or transmission of the electronic communication is
customarily conducted in accordance with sound business practice, and
not to a method or device adopted for the evasion of this section or
to prevent or delay the issuance of an injunction or restraining
order with respect to the infringing matter.
   (c) An innocent infringer or innocent violator is a person whose
acts were committed without knowledge that the mark was intended to
be used to cause confusion, mistake, or to deceive.
  SEC. 22.  Section 16721.5 of the Business and Professions Code is
amended to read:
   16721.5.  (a) It is an unlawful trust and an unlawful restraint of
trade for a person to do the following:
   (1) Grant or accept a letter of credit, or other document that
evidences the transfer of funds or credit, or enter into a contract
for the exchange of goods or services, if the letter of credit,
contract, or other document contains a provision that requires a
person to discriminate against, or to certify that he, she, or it has
not dealt with, another person on the basis of any characteristic
listed or defined in subdivision (b) or (e) of Section 51 of the
Civil Code, or on the basis of a person's lawful business
associations.
   (2) To refuse to grant or accept a letter of credit, or other
document that evidences the transfer of funds or credit, or to refuse
to enter into a contract for the exchange of goods or services, on
the ground that the letter, contract, or document does not contain a
discriminatory provision or certification.
   (b) This section shall not apply to a letter of credit, contract,
or other document that contains a provision pertaining to a labor
dispute or an unfair labor practice if the other provisions of that
letter of credit, contract, or other document otherwise do not
violate this section.
   (c) For purposes of this section, the prohibition against
discrimination on the basis of a person's business associations does
not include the requiring of association with particular employment
or a particular group as a prerequisite to obtaining group rates or
discounts on insurance, recreational activities, or other similar
benefits.
   (d) For purposes of this section, "person" shall include, but not
be limited to, individuals, firms, partnerships, associations,
corporations, and governmental agencies.
  SEC. 23.  Section 17204 of the Business and Professions Code is
amended to read:
   17204.  Actions for Injunctions by Attorney General, District
Attorney, County Counsel, and City Attorneys
   Actions for relief pursuant to this chapter shall be prosecuted
exclusively in a court of competent jurisdiction by the Attorney
General or a district attorney or by a county counsel authorized by
agreement with the district attorney in actions involving violation
of a county ordinance, or by a city attorney of a city having a
population in excess of 750,000, or by a city attorney in a city and
county or, with the consent of the district attorney, by a city
prosecutor in a city having a full-time city prosecutor in the name
of the people of the State of California upon their own complaint or
upon the complaint of a board, officer, person, corporation, or
association, or by a person who has suffered injury in fact and has
lost money or property as a result of the unfair competition.
  SEC. 24.  Section 17915 of the Business and Professions Code is
amended to read:
   17915.  A fictitious business name statement shall be filed with
the clerk of the county in which the registrant has his or her
principal place of business in this state or, if the registrant has
no place of business in this state, with the Clerk of Sacramento
County. This chapter does not preclude a person from filing a
fictitious business name statement in a county other than that where
the principal place of business is located, as long as the
requirements of this section are also met.
  SEC. 25.  Section 17929 of the Business and Professions Code is
amended to read:
   17929.  (a) The fee for filing a fictitious business name
statement is ten dollars ($10) for the first fictitious business name
and owner and two dollars ($2) for each additional fictitious
business name or owner filed on the same statement and doing business
at the same location. This fee covers the cost of filing and
indexing the statement (and any affidavit of publication), the cost
of furnishing one certified copy of the statement to the person
filing the statement, and the cost for notifying registrants of the
pending expiration of their fictitious business name statement.
   (b) The fee for filing a statement of abandonment of use of a
fictitious business name is five dollars ($5). This fee covers the
cost of filing and indexing the statement, the cost of any affidavit
of publication, and the cost of furnishing one certified copy of the
statement to the person filing the statement.
   (c) The fee for filing a statement of withdrawal from partnership
operating under a fictitious business name is five dollars ($5). This
fee covers the cost of filing and indexing the statement, the cost
of any affidavit of publication, and the cost of furnishing one
certified copy of the statement to the person filing the statement.
   (d) All of the provisions of this section are subject to Section
54985 of the Government Code.
  SEC. 26.  Section 19596.2 of the Business and Professions Code is
amended to read:
   19596.2.  (a) Notwithstanding any other provision of law and
except as provided in Section 19596.4, a thoroughbred racing
association or fair may distribute the audiovisual signal and accept
wagers on the results of out-of-state thoroughbred races conducted in
the United States during the calendar period the association or fair
is conducting a race meeting, including days on which there is no
live racing being conducted by the association or fair, without the
consent of the organization that represents horsemen and horsewomen
participating in the race meeting and without regard to the amount of
purses, provided that the total number of thoroughbred races on
which wagers are accepted statewide in a given year does not exceed
the total number of thoroughbred races on which wagers were accepted
in 1998. Further, the total number of thoroughbred races imported by
associations or fairs on a statewide basis under this section shall
not exceed 23 per day on days when live thoroughbred or fair racing
is being conducted in the state. The limitation of 23 imported races
per day does not apply to any of the following:
   (1) Races imported for wagering purposes pursuant to subdivision
(c).
   (2) Races imported that are part of the race card of the Kentucky
Derby, the Kentucky Oaks, the Preakness Stakes, the Belmont Stakes,
the Jockey Club Gold Cup, the Travers Stakes, the Breeders' Cup, the
Dubai Cup, or the Haskell Invitational.
   (3) Races imported into the northern zone when there is no live
thoroughbred or fair racing being conducted in the northern zone.
   (4) Races imported into the combined central and southern zones
when there is no live thoroughbred or fair racing being conducted in
the combined central and southern zones.
   (b) A thoroughbred association or fair accepting wagers pursuant
to subdivision (a) shall conduct the wagering in accordance with the
applicable provisions of Sections 19601, 19616, 19616.1, and 19616.2.

   (c) No thoroughbred association or fair may accept wagers pursuant
to this section on out-of-state races commencing after 7 p.m.,
Pacific Standard Time, without the consent of the harness or quarter
horse racing association that is then conducting a live racing
meeting in Orange or Sacramento County.
  SEC. 27.  Section 56.10 of the Civil Code is amended to read:
   56.10.  (a) No provider of health care, health care service plan,
or contractor shall disclose medical information regarding a patient
of the provider of health care or an enrollee or subscriber of a
health care service plan without first obtaining an authorization,
except as provided in subdivision (b) or (c).
   (b) A provider of health care, a health care service plan, or a
contractor shall disclose medical information if the disclosure is
compelled by any of the following:
   (1) By a court pursuant to an order of that court.
   (2) By a board, commission, or administrative agency for purposes
of adjudication pursuant to its lawful authority.
   (3) By a party to a proceeding before a court or administrative
agency pursuant to a subpoena, subpoena duces tecum, notice to appear
served pursuant to Section 1987 of the Code of Civil Procedure, or
any provision authorizing discovery in a proceeding before a court or
administrative agency.
   (4) By a board, commission, or administrative agency pursuant to
an investigative subpoena issued under Article 2 (commencing with
Section 11180) of Chapter 2 of Part 1 of Division 3 of Title 2 of the
Government Code.
   (5) By an arbitrator or arbitration panel, when arbitration is
lawfully requested by either party, pursuant to a subpoena duces
tecum issued under Section 1282.6 of the Code of Civil Procedure, or
another provision authorizing discovery in a proceeding before an
arbitrator or arbitration panel.
   (6) By a search warrant lawfully issued to a governmental law
enforcement agency.
   (7) By the patient or the patient's representative pursuant to
Chapter 1 (commencing with Section 123100) of Part 1 of Division 106
of the Health and Safety Code.
   (8) By a coroner, when requested in the course of an investigation
by the coroner's office for the purpose of identifying the decedent
or locating next of kin, or when investigating deaths that may
involve public health concerns, organ or tissue donation, child
abuse, elder abuse, suicides, poisonings, accidents, sudden infant
deaths, suspicious deaths, unknown deaths, or criminal deaths, or
when otherwise authorized by the decedent's representative. Medical
information requested by the coroner under this paragraph shall be
limited to information regarding the patient who is the decedent and
who is the subject of the investigation and shall be disclosed to the
coroner without delay upon request.
   (9) When otherwise specifically required by law.
   (c) A provider of health care or a health care service plan may
disclose medical information as follows:
   (1) The information may be disclosed to providers of health care,
health care service plans, contractors, or other health care
professionals or facilities for purposes of diagnosis or treatment of
the patient. This includes, in an emergency situation, the
communication of patient information by radio transmission or other
means between emergency medical personnel at the scene of an
emergency, or in an emergency medical transport vehicle, and
emergency medical personnel at a health facility licensed pursuant to
Chapter 2 (commencing with Section 1250) of Division 2 of the Health
and Safety Code.
   (2) The information may be disclosed to an insurer, employer,
health care service plan, hospital service plan, employee benefit
plan, governmental authority, contractor, or any other person or
entity responsible for paying for health care services rendered to
the patient, to the extent necessary to allow responsibility for
payment to be determined and payment to be made. If (A) the patient
is, by reason of a comatose or other disabling medical condition,
unable to consent to the disclosure of medical information and (B) no
other arrangements have been made to pay for the health care
services being rendered to the patient, the information may be
disclosed to a governmental authority to the extent necessary to
determine the patient's eligibility for, and to obtain, payment under
a governmental program for health care services provided to the
patient. The information may also be disclosed to another provider of
health care or health care service plan as necessary to assist the
other provider or health care service plan in obtaining payment for
health care services rendered by that provider of health care or
health care service plan to the patient.
   (3) The information may be disclosed to a person or entity that
provides billing, claims management, medical data processing, or
other administrative services for providers of health care or health
care service plans or for any of the persons or entities specified in
paragraph (2). However, information so disclosed shall not be
further disclosed by the recipient in a way that would violate this
part.
   (4) The information may be disclosed to organized committees and
agents of professional societies or of medical staffs of licensed
hospitals, licensed health care service plans, professional standards
review organizations, independent medical review organizations and
their selected reviewers, utilization and quality control peer review
organizations as established by Congress in Public Law 97-248 in
1982, contractors, or persons or organizations insuring, responsible
for, or defending professional liability that a provider may incur,
if the committees, agents, health care service plans, organizations,
reviewers, contractors, or persons are engaged in reviewing the
competence or qualifications of health care professionals or in
reviewing health care services with respect to medical necessity,
level of care, quality of care, or justification of charges.
   (5) The information in the possession of a provider of health care
or health care service plan may be reviewed by a private or public
body responsible for licensing or accrediting the provider of health
care or health care service plan. However, no patient-identifying
medical information may be removed from the premises except as
expressly permitted or required elsewhere by law, nor shall that
information be further disclosed by the recipient in a way that would
violate this part.
   (6) The information may be disclosed to the county coroner in the
course of an investigation by the coroner's office when requested for
all purposes not included in paragraph (8) of subdivision (b).
   (7) The information may be disclosed to public agencies, clinical
investigators, including investigators conducting epidemiologic
studies, health care research organizations, and accredited public or
private nonprofit educational or health care institutions for bona
fide research purposes. However, no information so disclosed shall be
further disclosed by the recipient in a way that would disclose the
identity of a patient or violate this part.
   (8) A provider of health care or health care service plan that has
created medical information as a result of employment-related health
care services to an employee conducted at the specific prior written
request and expense of the employer may disclose to the employee's
employer that part of the information that:
   (A) Is relevant in a lawsuit, arbitration, grievance, or other
claim or challenge to which the employer and the employee are parties
and in which the patient has placed in issue his or her medical
history, mental or physical condition, or treatment, provided that
information may only be used or disclosed in connection with that
proceeding.
   (B) Describes functional limitations of the patient that may
entitle the patient to leave from work for medical reasons or limit
the patient's fitness to perform his or her present employment,
provided that no statement of medical cause is included in the
information disclosed.
   (9) Unless the provider of health care or health care service plan
is notified in writing of an agreement by the sponsor, insurer, or
administrator to the contrary, the information may be disclosed to a
sponsor, insurer, or administrator of a group or individual insured
or uninsured plan or policy that the patient seeks coverage by or
benefits from, if the information was created by the provider of
health care or health care service plan as the result of services
conducted at the specific prior written request and expense of the
sponsor, insurer, or administrator for the purpose of evaluating the
application for coverage or benefits.
   (10) The information may be disclosed to a health care service
plan by providers of health care that contract with the health care
service plan and may be transferred among providers of health care
that contract with the health care service plan, for the purpose of
administering the health care service plan. Medical information shall
not otherwise be disclosed by a health care service plan except in
accordance with this part.
   (11) This part does not prevent the disclosure by a provider of
health care or a health care service plan to an insurance
institution, agent, or support organization, subject to Article 6.6
(commencing with Section 791) of Chapter 1 of Part 2 of Division 1 of
the Insurance Code, of medical information if the insurance
institution, agent, or support organization has complied with all of
the requirements for obtaining the information pursuant to Article
6.6 (commencing with Section 791) of Chapter 1 of Part 2 of Division
1 of the Insurance Code.
   (12) The information relevant to the patient's condition, care,
and treatment provided may be disclosed to a probate court
investigator in the course of an investigation required or authorized
in a conservatorship proceeding under the
Guardianship-Conservatorship Law as defined in Section 1400 of the
Probate Code, or to a probate court investigator, probation officer,
or domestic relations investigator engaged in determining the need
for an initial guardianship or continuation of an existing
guardianship.
   (13) The information may be disclosed to an organ procurement
organization or a tissue bank processing the tissue of a decedent for
transplantation into the body of another person, but only with
respect to the donating decedent, for the purpose of aiding the
transplant. For the purpose of this paragraph, "tissue bank" and
"tissue" have the same meanings as defined in Section 1635 of the
Health and Safety Code.
   (14) The information may be disclosed when the disclosure is
otherwise specifically authorized by law, including, but not limited
to, the voluntary reporting, either directly or indirectly, to the
federal Food and Drug Administration of adverse events related to
drug products or medical device problems.
   (15) Basic information, including the patient's name, city of
residence, age, sex, and general condition, may be disclosed to a
state-recognized or federally recognized disaster relief organization
for the purpose of responding to disaster welfare inquiries.
   (16) The information may be disclosed to a third party for
purposes of encoding, encrypting, or otherwise anonymizing data.
However, no information so disclosed shall be further disclosed by
the recipient in a way that would violate this part, including the
unauthorized manipulation of coded or encrypted medical information
that reveals individually identifiable medical information.
   (17) For purposes of disease management programs and services as
defined in Section 1399.901 of the Health and Safety Code,
information may be disclosed as follows: (A) to an entity contracting
with a health care service plan or the health care service plan's
contractors to monitor or administer care of enrollees for a covered
benefit, if the disease management services and care are authorized
by a treating physician, or (B) to a disease management organization,
as defined in Section 1399.900 of the Health and Safety Code, that
complies fully with the physician authorization requirements of
Section 1399.902 of the Health and Safety Code, if the health care
service plan or its contractor provides or has provided a description
of the disease management services to a treating physician or to the
health care service plan's or contractor's network of physicians.
This paragraph does not require physician authorization for the care
or treatment of the adherents of a well-recognized church or
religious denomination who depend solely upon prayer or spiritual
means for healing in the practice of the religion of that church or
denomination.
   (18) The information may be disclosed, as permitted by state and
federal law or regulation, to a local health department for the
purpose of preventing or controlling disease, injury, or disability,
including, but not limited to, the reporting of disease, injury,
vital events, including, but not limited to, birth or death, and the
conduct of public health surveillance, public health investigations,
and public health interventions, as authorized or required by state
or federal law or regulation.
   (19) The information may be disclosed, consistent with applicable
law and standards of ethical conduct, by a psychotherapist, as
defined in Section 1010 of the Evidence Code, if the psychotherapist,
in good faith, believes the disclosure is necessary to prevent or
lessen a serious and imminent threat to the health or safety of a
reasonably foreseeable victim or victims, and the disclosure is made
to a person or persons reasonably able to prevent or lessen the
threat, including the target of the threat.
   (20) The information may be disclosed as described in Section
56.103.
   (d) Except to the extent expressly authorized by a patient or
enrollee or subscriber or as provided by subdivisions (b) and (c), a
provider of health care, health care service plan, contractor, or
corporation and its subsidiaries and affiliates shall not
intentionally share, sell, use for marketing, or otherwise use
medical information for a purpose not necessary to provide health
care services to the patient.
   (e) Except to the extent expressly authorized by a patient or
enrollee or subscriber or as provided by subdivisions (b) and (c), a
contractor or corporation and its subsidiaries and affiliates shall
not further disclose medical information regarding a patient of the
provider of health care or an enrollee or subscriber of a health care
service plan or insurer or self-insured employer received under this
section to a person or entity that is not engaged in providing
direct health care services to the patient or his or her provider of
health care or health care service plan or insurer or self-insured
employer.
  SEC. 28.  Section 798.73 of the Civil Code is amended to read:
   798.73.  The management shall not require the removal of a
mobilehome from the park in the event of the sale of the mobilehome
to a third party during the term of the homeowner's rental agreement
or in the 60 days following the initial notice required by paragraph
(1) of subdivision (b) of Section 798.55. However, in the event of a
sale to a third party, in order to upgrade the quality of the park,
the management may require that a mobilehome be removed from the park
where:
   (a) It is not a "mobilehome" within the meaning of Section 798.3.
   (b) It is more than 20 years old, or more than 25 years old if
manufactured after September 15, 1971, and is 20 feet wide or more,
and the mobilehome does not comply with the health and safety
standards provided in Sections 18550, 18552, and 18605 of the Health
and Safety Code and the regulations established thereunder, as
determined following an inspection by the appropriate enforcement
agency, as defined in Section 18207 of the Health and Safety Code.
   (c) The mobilehome is more than 17 years old, or more than 25
years old if manufactured after September 15, 1971, and is less than
20 feet wide, and the mobilehome does not comply with the
construction and safety standards under Sections 18550, 18552, and
18605 of the Health and Safety Code and the regulations established
thereunder, as determined following an inspection by the appropriate
enforcement agency, as defined in Section 18207 of the Health and
Safety Code.
   (d) It is in a significantly rundown condition or in disrepair, as
determined by the general condition of the mobilehome and its
acceptability to the health and safety of the occupants and to the
public, exclusive of its age. The management shall use reasonable
discretion in determining the general condition of the mobilehome and
its accessory structures. The management shall bear the burden of
demonstrating that the mobilehome is in a significantly rundown
condition or in disrepair. The management of the park may not require
repairs or improvements to the park space or property owned by the
management, except for damage caused by the actions or negligence of
the homeowner or an agent of the homeowner.
   (e) The management shall not require a mobilehome to be removed
from the park, pursuant to this section, unless the management has
provided to the homeowner notice particularly specifying the
condition that permits the removal of the mobilehome.
  SEC. 29.  Section 1185 of the Civil Code is amended to read:
   1185.  (a) The acknowledgment of an instrument shall not be taken
unless the officer taking it has satisfactory evidence that the
person making the acknowledgment is the individual who is described
in and who executed the instrument.
   (b) For purposes of this section, "satisfactory evidence" means
the absence of information, evidence, or other circumstances that
would lead a reasonable person to believe that the person making the
acknowledgment is not the individual he or she claims to be and any
one of the following:
   (1) (A) The oath or affirmation of a credible witness personally
known to the officer, whose identity is proven to the officer upon
presentation of a document satisfying the requirements of paragraph
(3) or (4), that the person making the acknowledgment is personally
known to the witness and that each of the following are true:
   (i) The person making the acknowledgment is the person named in
the document.
   (ii) The person making the acknowledgment is personally known to
the witness.
   (iii) That it is the reasonable belief of the witness that the
circumstances of the person making the acknowledgment are such that
it would be very difficult or impossible for that person to obtain
another form of identification.
   (iv) The person making the acknowledgment does not possess any of
the identification documents named in paragraphs (3) and (4).
   (v) The witness does not have a financial interest in the document
being acknowledged and is not named in the document.
   (B) A notary public who violates this section by failing to obtain
the satisfactory evidence required by subparagraph (A) shall be
subject to a civil penalty not exceeding ten thousand dollars
($10,000). An action to impose this civil penalty may be brought by
the Secretary of State in an administrative proceeding or a public
prosecutor in superior court, and shall be enforced as a civil
judgment. A public prosecutor shall inform the
                          secretary of any civil penalty imposed
under this subparagraph.
   (2) The oath or affirmation under penalty of perjury of two
credible witnesses, whose identities are proven to the officer upon
the presentation of a document satisfying the requirements of
paragraph (3) or (4), that each statement in paragraph (1) is true.
   (3) Reasonable reliance on the presentation to the officer of any
one of the following, if the document is current or has been issued
within five years:
   (A) An identification card or driver's license issued by the
Department of Motor Vehicles.
   (B) A passport issued by the Department of State of the United
States.
   (4) Reasonable reliance on the presentation of any one of the
following, provided that a document specified in subparagraphs (A) to
(E), inclusive, shall either be current or have been issued within
five years and shall contain a photograph and description of the
person named on it, shall be signed by the person, shall bear a
serial or other identifying number, and, in the event that the
document is a passport, shall have been stamped by the United States
Citizenship and Immigration Services of the Department of Homeland
Security:
   (A) A passport issued by a foreign government.
   (B) A driver's license issued by a state other than California or
by a Canadian or Mexican public agency authorized to issue driver's
licenses.
   (C) An identification card issued by a state other than
California.
   (D) An identification card issued by any branch of the Armed
Forces of the United States.
   (E) An inmate identification card issued on or after January 1,
1988, by the Department of Corrections and Rehabilitation, if the
inmate is in custody.
   (F) An inmate identification card issued prior to January 1, 1988,
by the Department of Corrections and Rehabilitation, if the inmate
is in custody.
   (c) An officer who has taken an acknowledgment pursuant to this
section shall be presumed to have operated in accordance with the
provisions of law.
   (d) A party who files an action for damages based on the failure
of the officer to establish the proper identity of the person making
the acknowledgment shall have the burden of proof in establishing the
negligence or misconduct of the officer.
   (e) A person convicted of perjury under this section shall forfeit
any financial interest in the document.
  SEC. 30.  Section 1789.13 of the Civil Code is amended to read:
   1789.13.  A credit services organization and its salespersons,
agents, representatives, and independent contractors who sell or
attempt to sell the services of a credit services organization shall
not do any of the following:
   (a) Charge or receive any money or other valuable consideration
prior to full and complete performance of the services the credit
services organization has agreed to perform for or on behalf of the
buyer.
   (b) Fail to perform the agreed services within six months
following the date the buyer signs the contract for those services.
   (c) Charge or receive any money or other valuable consideration
for referral of the buyer to a retail seller or other credit grantor
who will or may extend credit to the buyer, if either of the
following apply:
   (1) The credit that is or will be extended to the buyer (A) is
upon substantially the same terms as those available to the general
public or (B) is upon substantially the same terms that would have
been extended to the buyer without the assistance of the credit
services organization.
   (2) The money or consideration is paid by the credit grantor or is
derived from the buyer's payments to the credit grantor for costs,
fees, finance charges, or principal.
   (d) Make, or counsel or advise a buyer to make, a statement that
is untrue or misleading and that is known, or that by the exercise of
reasonable care should be known, to be untrue or misleading, to a
consumer credit reporting agency or to a person who has extended
credit to a buyer or to whom a buyer is applying for an extension of
credit, such as statements concerning a buyer's identification, home
address, creditworthiness, credit standing, or credit capacity.
   (e) Remove, or assist or advise the buyer to remove, adverse
information from the buyer's credit record which is accurate and not
obsolete.
   (f) Create, or assist or advise the buyer to create, a new credit
record by using a different name, address, social security number, or
employee identification number.
   (g) Make or use untrue or misleading representations in the offer
or sale of the services of a credit services organization, including
either of the following:
   (1) Guaranteeing or otherwise stating that the organization is
able to delete an adverse credit history, unless the representation
clearly discloses, in a manner equally as conspicuous as the
guarantee, that this can be done only if the credit history is
inaccurate or obsolete and is not claimed to be accurate by the
creditor who submitted the information.
   (2) Guaranteeing or otherwise stating that the organization is
able to obtain an extension of credit, regardless of the buyer's
previous credit problems or credit history, unless the representation
clearly discloses, in a manner equally as conspicuous as the
guarantee, the eligibility requirements for obtaining an extension of
credit.
   (h) Engage, directly or indirectly, in an act, practice, or course
of business that operates or would operate as a fraud or deception
upon a person in connection with the offer or sale of the services of
a credit services organization.
   (i) Advertise or cause to be advertised, in any manner, the
services of the credit services organization, without being
registered with the Department of Justice.
   (j) Fail to maintain an agent for service of process in this
state.
   (k) Transfer or assign its certificate of registration.
   (l) Submit a buyer's dispute to a consumer credit reporting agency
without the buyer's knowledge.
   (m) Use a consumer credit reporting agency's telephone system or
toll-free telephone number to represent the caller as the buyer in
submitting a dispute of a buyer or requesting disclosure without
prior authorization of the buyer.
   (n) Directly or indirectly extend credit to a buyer.
   (o) Refer a buyer to a credit grantor that is related to the
credit services organization by a common ownership, management, or
control, including a common owner, director, or officer.
   (p) Refer a buyer to a credit grantor for which the credit
services organization provides, or arranges for a third party to
provide, services related to the extension of credit such as
underwriting, billing, payment processing, or debt collection.
   (q) Provide a credit grantor with an assurance that a portion of
an extension of credit to a buyer referred by the credit services
organization will be repaid, including providing a guaranty, letter
of credit, or agreement to acquire a part of the credit grantor's
financial interest in the extension of credit.
   (r) Use a scheme, device, or contrivance to evade the prohibitions
contained in this section.
  SEC. 31.  Section 1936 of the Civil Code is amended to read:
   1936.  (a) For the purpose of this section, the following
definitions shall apply:
   (1) "Rental company" means a person or entity in the business of
renting passenger vehicles to the public.
   (2) "Renter" means a person in any manner obligated under a
contract for the lease or hire of a passenger vehicle from a rental
company for a period of less than 30 days.
   (3) "Authorized driver" means (A) the renter, (B) the renter's
spouse if that person is a licensed driver and satisfies the rental
company's minimum age requirement, (C) the renter's employer or
coworker if he or she is engaged in business activity with the
renter, is a licensed driver, and satisfies the rental company's
minimum age requirement, and (D) a person expressly listed by the
rental company on the renter's contract as an authorized driver.
   (4) (A) "Customer facility charge" means a fee required by an
airport to be collected by a rental company from a renter for any of
the following purposes:
   (i) To finance, design, and construct consolidated airport car
rental facilities.
   (ii) To finance, design, construct, and provide common use
transportation systems that move passengers between airport terminals
and those consolidated car rental facilities.
   (B) The aggregate amount to be collected shall not exceed the
reasonable costs, as determined by an independent audit paid for by
the airport, to finance, design, and construct those facilities.
Copies of the audit shall be provided to the Assembly and Senate
Committees on Judiciary, the Assembly Committee on Transportation,
and the Senate Committee on Transportation and Housing. In the case
of a transportation system, the audit also shall consider the
reasonable costs of providing the transit system or busing network.
At the Burbank Airport, and at all other airports, the fees
designated as a customer facility charge shall not be used to pay for
terminal expansion, gate expansion, runway expansion, changes in
hours of operation, or changes in the number of flights arriving or
departing from the airport.
   (C) The authorization given pursuant to this section for an
airport to impose a customer facility charge shall become inoperative
when the bonds used for financing are paid.
   (5) "Damage waiver" means a rental company's agreement not to hold
a renter liable for all or any portion of any damage or loss related
to the rented vehicle, any loss of use of the rented vehicle, or any
storage, impound, towing, or administrative charges.
   (6) "Electronic surveillance technology" means a technological
method or system used to observe, monitor, or collect information,
including telematics, Global Positioning System (GPS), wireless
technology, or location-based technologies. "Electronic surveillance
technology" does not include event data recorders (EDR), sensing and
diagnostic modules (SDM), or other systems that are used either:
   (A) For the purpose of identifying, diagnosing, or monitoring
functions related to the potential need to repair, service, or
perform maintenance on the rental vehicle.
   (B) As part of the vehicle's airbag sensing and diagnostic system
in order to capture safety systems-related data for retrieval after a
crash has occurred or in the event that the collision sensors are
activated to prepare the decisionmaking computer to make the
determination to deploy or not to deploy the airbag.
   (7) "Estimated time for replacement" means the number of hours of
labor, or fraction thereof, needed to replace damaged vehicle parts
as set forth in collision damage estimating guides generally used in
the vehicle repair business and commonly known as "crash books."
   (8) "Estimated time for repair" means a good faith estimate of the
reasonable number of hours of labor, or fraction thereof, needed to
repair damaged vehicle parts.
   (9) "Membership program" means a service offered by a rental
company that permits customers to bypass the rental counter and go
directly to the car previously reserved. A membership program shall
meet all of the following requirements:
   (A) The renter initiates enrollment by completing an application
on which the renter can specify a preference for type of vehicle and
acceptance or declination of optional services.
   (B) The rental company fully discloses, prior to the enrollee's
first rental as a participant in the program, all terms and
conditions of the rental agreement as well as all required
disclosures.
   (C) The renter may terminate enrollment at any time.
   (D) The rental company fully explains to the renter that
designated preferences, as well as acceptance or declination of
optional services, may be changed by the renter at any time for the
next and future rentals.
   (E) An employee designated to receive the form specified in
subparagraph (C) of paragraph (1) of subdivision (t) is present at
the lot where the renter takes possession of the car, to receive any
change in the rental agreement from the renter.
   (10) "Passenger vehicle" means a passenger vehicle as defined in
Section 465 of the Vehicle Code.
   (b) Except as limited by subdivision (c), a rental company and a
renter may agree that the renter will be responsible for no more than
all of the following:
   (1) Physical or mechanical damage to the rented vehicle up to its
fair market value, as determined in the customary market for the sale
of that vehicle, resulting from collision regardless of the cause of
the damage.
   (2) Loss due to theft of the rented vehicle up to its fair market
value, as determined in the customary market for the sale of that
vehicle, provided that the rental company establishes by clear and
convincing evidence that the renter or the authorized driver failed
to exercise ordinary care while in possession of the vehicle. In
addition, the renter shall be presumed to have no liability for any
loss due to theft if (A) an authorized driver has possession of the
ignition key furnished by the rental company or an authorized driver
establishes that the ignition key furnished by the rental company was
not in the vehicle at the time of the theft, and (B) an authorized
driver files an official report of the theft with the police or other
law enforcement agency within 24 hours of learning of the theft and
reasonably cooperates with the rental company and the police or other
law enforcement agency in providing information concerning the
theft. The presumption set forth in this paragraph is a presumption
affecting the burden of proof which the rental company may rebut by
establishing that an authorized driver committed, or aided and
abetted the commission of, the theft.
   (3) Physical damage to the rented vehicle up to its fair market
value, as determined in the customary market for the sale of that
vehicle, resulting from vandalism occurring after, or in connection
with, the theft of the rented vehicle. However, the renter shall have
no liability for any damage due to vandalism if the renter would
have no liability for theft pursuant to paragraph (2).
   (4) Physical damage to the rented vehicle up to a total of five
hundred dollars ($500) resulting from vandalism unrelated to the
theft of the rented vehicle.
   (5) Actual charges for towing, storage, and impound fees paid by
the rental company if the renter is liable for damage or loss.
   (6) An administrative charge, which shall include the cost of
appraisal and all other costs and expenses incident to the damage,
loss, repair, or replacement of the rented vehicle.
   (c) The total amount of the renter's liability to the rental
company resulting from damage to the rented vehicle shall not exceed
the sum of the following:
   (1) The estimated cost of parts which the rental company would
have to pay to replace damaged vehicle parts. All discounts and price
reductions or adjustments that are or will be received by the rental
company shall be subtracted from the estimate to the extent not
already incorporated in the estimate, or otherwise promptly credited
or refunded to the renter.
   (2) The estimated cost of labor to replace damaged vehicle parts,
which shall not exceed the product of (A) the rate for labor usually
paid by the rental company to replace vehicle parts of the type that
were damaged and (B) the estimated time for replacement. All
discounts and price reductions or adjustments that are or will be
received by the rental company shall be subtracted from the estimate
to the extent not already incorporated in the estimate, or otherwise
promptly credited or refunded to the renter.
   (3) (A) The estimated cost of labor to repair damaged vehicle
parts, which may not exceed the lesser of the following:
   (i) The product of the rate for labor usually paid by the rental
company to repair vehicle parts of the type that were damaged and the
estimated time for repair.
   (ii) The sum of the estimated labor and parts costs determined
under paragraphs (1) and (2) to replace the same vehicle parts.
   (B) All discounts and price reductions or adjustments that are or
will be received by the rental company shall be subtracted from the
estimate to the extent not already incorporated in the estimate, or
otherwise promptly credited or refunded to the renter.
   (4) For the purpose of converting the estimated time for repair
into the same units of time in which the rental rate is expressed, a
day shall be deemed to consist of eight hours.
   (5) Actual charges for towing, storage, and impound fees paid by
the rental company.
   (6) The administrative charge described in paragraph (6) of
subdivision (b) may not exceed (A) fifty dollars ($50) if the total
estimated cost for parts and labor is more than one hundred dollars
($100) up to and including five hundred dollars ($500), (B) one
hundred dollars ($100) if the total estimated cost for parts and
labor exceeds five hundred dollars ($500) up to and including one
thousand five hundred dollars ($1,500), and (C) one hundred fifty
dollars ($150) if the total estimated cost for parts and labor
exceeds one thousand five hundred dollars ($1,500). An administrative
charge shall not be imposed if the total estimated cost of parts and
labor is one hundred dollars ($100) or less.
   (d) (1) The total amount of an authorized driver's liability to
the rental company, if any, for damage occurring during the
authorized driver's operation of the rented vehicle shall not exceed
the amount of the renter's liability under subdivision (c).
   (2) A rental company shall not recover from the renter or other
authorized driver an amount exceeding the renter's liability under
subdivision (c).
   (3) A claim against a renter resulting from damage or loss,
excluding loss of use, to a rental vehicle shall be reasonably and
rationally related to the actual loss incurred. A rental company
shall mitigate damages where possible and shall not assert or collect
a claim for physical damage which exceeds the actual costs of the
repairs performed or the estimated cost of repairs, if the rental
company chooses not to repair the vehicle, including all discounts
and price reductions. However, if the vehicle is a total loss
vehicle, the claim shall not exceed the total loss vehicle value
established in accordance with procedures that are customarily used
by insurance companies when paying claims on total loss vehicles,
less the proceeds from salvaging the vehicle, if those proceeds are
retained by the rental company.
   (4) If insurance coverage exists under the renter's applicable
personal or business insurance policy and the coverage is confirmed
during regular business hours, the renter may require that the rental
company submit any claims to the renter's applicable personal or
business insurance carrier. The rental company shall not make any
written or oral representations that it will not present claims or
negotiate with the renter's insurance carrier. For purposes of this
paragraph, confirmation of coverage includes telephone confirmation
from insurance company representatives during regular business hours.
Upon request of the renter and after confirmation of coverage, the
amount of claim shall be resolved between the insurance carrier and
the rental company. The renter shall remain responsible for payment
to the rental car company for any loss sustained that the renter's
applicable personal or business insurance policy does not cover.
   (5) A rental company shall not recover from the renter or other
authorized driver for an item described in subdivision (b) to the
extent the rental company obtains recovery from another person.
   (6) This section applies only to the maximum liability of a renter
or other authorized driver to the rental company resulting from
damage to the rented vehicle and not to the liability of another
person.
   (e) (1) Except as provided in subdivision (f), a damage waiver
shall provide or, if not expressly stated in writing, shall be deemed
to provide that the renter has no liability for a damage, loss, loss
of use, or a cost or expense incident thereto.
   (2) Except as provided in subdivision (f), every limitation,
exception, or exclusion to a damage waiver is void and unenforceable.

   (f) A rental company may provide in the rental contract that a
damage waiver does not apply under any of the following
circumstances:
   (1) Damage or loss results from an authorized driver's (A)
intentional, willful, wanton, or reckless conduct, (B) operation of
the vehicle under the influence of drugs or alcohol in violation of
Section 23152 of the Vehicle Code, (C) towing or pushing anything, or
(D) operation of the vehicle on an unpaved road if the damage or
loss is a direct result of the road or driving conditions.
   (2) Damage or loss occurs while the vehicle is (A) used for
commercial hire, (B) used in connection with conduct that could be
properly charged as a felony, (C) involved in a speed test or contest
or in driver training activity, (D) operated by a person other than
an authorized driver, or (E) operated outside the United States.
   (3) An authorized driver who has (A) provided fraudulent
information to the rental company, or (B) provided false information
and the rental company would not have rented the vehicle if it had
instead received true information.
   (g) (1) A rental company that offers or provides a damage waiver
for any consideration in addition to the rental rate shall clearly
and conspicuously disclose the following information in the rental
contract or holder in which the contract is placed and, also, in
signs posted at the place, such as the counter, where the renter
signs the rental contract, and, for renters who are enrolled in the
rental company's membership program, in a sign that shall be posted
in a location clearly visible to those renters as they enter the
location where their reserved rental cars are parked or near the exit
of the bus or other conveyance that transports the enrollee to a
reserved car: (A) the nature of the renter's liability, e.g.,
liability for all collision damage regardless of cause, (B) the
extent of the renter's liability, e.g., liability for damage or loss
up to a specified amount, (C) the renter's personal insurance policy
or the credit card used to pay for the car rental transaction may
provide coverage for all or a portion of the renter's potential
liability, (D) the renter should consult with his or her insurer to
determine the scope of insurance coverage, including the amount of
the deductible, if any, for which the renter is obligated, (E) the
renter may purchase an optional damage waiver to cover all liability,
subject to whatever exceptions the rental company expressly lists
that are permitted under subdivision (f), and (F) the range of
charges for the damage waiver.
   (2) In addition to the requirements of paragraph (1), a rental
company that offers or provides a damage waiver shall orally disclose
to all renters, except those who are participants in the rental
company's membership program, that the damage waiver may be
duplicative of coverage that the customer maintains under his or her
own policy of motor vehicle insurance. The renter's receipt of the
oral disclosure shall be demonstrated through the renter's
acknowledging receipt of the oral disclosure near that part of the
contract where the renter indicates, by the renter's own initials,
his or her acceptance or declination of the damage waiver. Adjacent
to that same part, the contract also shall state that the damage
waiver is optional. Further, the contract for these renters shall
include a clear and conspicuous written disclosure that the damage
waiver may be duplicative of coverage that the customer maintains
under his or her own policy of motor vehicle insurance.
   (3) The following is an example, for purposes of illustration and
not limitation, of a notice fulfilling the requirements of paragraph
(1) for a rental company that imposes liability on the renter for
collision damage to the full value of the vehicle:

      NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY AND OPTIONAL DAMAGE
WAIVER

   You are responsible for all collision damage to the rented vehicle
even if someone else caused it or the cause is unknown. You are
responsible for the cost of repair up to the value of the vehicle,
and towing, storage, and impound fees.
   Your own insurance, or the issuer of the credit card you use to
pay for the car rental transaction, may cover all or part of your
financial responsibility for the rented vehicle. You should check
with your insurance company, or credit card issuer, to find out about
your coverage and the amount of the deductible, if any, for which
you may be liable.
   Further, if you use a credit card that provides coverage for your
potential liability, you should check with the issuer to determine if
you must first exhaust the coverage limits of your own insurance
before the credit card coverage applies.
   The rental company will not hold you responsible if you buy a
damage waiver. But a damage waiver will not protect you if (list
exceptions).

   (A) When the above notice is printed in the rental contract or
holder in which the contract is placed, the following shall be
printed immediately following the notice:
   "The cost of an optional damage waiver is $____ for every (day or
week)."

   (B) When the above notice appears on a sign, the following shall
appear immediately adjacent to the notice:
   "The cost of an optional damage waiver is $____ to $____ for every
(day or week), depending upon the vehicle rented."

   (h) Notwithstanding any other provision of law, a rental company
may sell a damage waiver subject to the following rate limitations
for each full or partial 24-hour rental day for the damage waiver.
   (1) For rental vehicles that the rental company designates as an
"economy car," "subcompact car," "compact car," or another term
having similar meaning when offered for rental, or another vehicle
having a manufacturer's suggested retail price of nineteen thousand
dollars ($19,000) or less, the rate shall not exceed nine dollars
($9).
   (2) For rental vehicles that have a manufacturer's suggested
retail price from nineteen thousand one dollars ($19,001) to
thirty-four thousand nine hundred ninety-nine dollars ($34,999),
inclusive, and that are also either vehicles of next year's model, or
not older than the previous year's model, the rate may not exceed
fifteen dollars ($15). For those rental vehicles older than the
previous year's model year, the rate shall not exceed nine dollars
($9).
   (i) On or after January 1, 2003, the manufacturer's suggested
retail prices described in subdivision (h) shall be adjusted annually
to reflect changes from the previous year in the
                          Consumer Price Index. For the purposes of
this section, "Consumer Price Index" means the United States Consumer
Price Index for All Urban Consumers, for all items.
   (j) A rental company that disseminates in this state an
advertisement containing a rental rate shall include in that
advertisement a clearly readable statement of the charge for a damage
waiver and a statement that a damage waiver is optional.
   (k) (1) A rental company shall not require the purchase of a
damage waiver, optional insurance, or another optional good or
service.
   (2) A rental company shall not engage in any unfair, deceptive, or
coercive conduct to induce a renter to purchase the damage waiver,
optional insurance, or another optional good or service, including
conduct such as, but not limited to, refusing to honor the renter's
reservation, limiting the availability of vehicles, requiring a
deposit, or debiting or blocking the renter's credit card account for
a sum equivalent to a deposit if the renter declines to purchase the
damage waiver, optional insurance, or another optional good or
service.
   (l) (1) In the absence of express permission granted by the renter
subsequent to damage to, or loss of, the vehicle, a rental company
shall not seek to recover any portion of a claim arising out of
damage to, or loss of, the rented vehicle by processing a credit card
charge or causing a debit or block to be placed on the renter's
credit card account.
   (2) A rental company shall not engage in any unfair, deceptive, or
coercive tactics in attempting to recover or in recovering on any
claim arising out of damage to, or loss of, the rented vehicle.
   (m) (1) A customer facility charge may be collected by a rental
company under the following circumstances:
   (A) Collection of the fee by the rental company is required by an
airport operated by a city, a county, a city and county, a joint
powers authority, or a special district.
   (B) The fee is calculated on a per-contract basis.
   (C) The fee is a user fee, not a tax imposed upon real property or
an incidence of property ownership under Article XIII D of the
California Constitution.
   (D) Except as otherwise provided in subparagraph (E), the fee
shall be ten dollars ($10) per contract.
   (E) If the fee imposed by the airport is for both a consolidated
rental car facility and a common-use transportation system, the fee
collected from customers of on-airport rental car companies shall be
ten dollars ($10), but the fee imposed on customers of off-airport
rental car companies who are transported on the common-use
transportation system is proportionate to the costs of the common-use
transportation system only. The fee is uniformly applied to each
class of on-airport or off-airport customers, provided the airport
requires off-airport customers to use the common-use transportation
system.
   (F) Revenues collected from the fee do not exceed the reasonable
costs of financing, designing, constructing, or operating the
facility or services and shall not be used for any other purpose.
   (G) The fee is separately identified on the rental agreement.
   (H) This paragraph does not apply to airports the fees of which
are governed by Section 50474.1 of the Government Code or Section
57.5 of the San Diego Unified Port District Act.
   (2) Notwithstanding any other provision of law, including, but not
limited to, Part 1 (commencing with Section 6001) to Part 1.7
(commencing with Section 7280), inclusive, of Division 2 of the
Revenue and Taxation Code, the fees collected pursuant to this
section, or another law whereby a local agency operating an airport
requires a rental car company to collect a facility financing fee
from its customers, are not subject to sales, use, or transaction
taxes.
   (n) (1) A rental company shall only advertise, quote, and charge a
rental rate that includes the entire amount except taxes, a customer
facility charge, if any, and a mileage charge, if any, which a
renter must pay to hire or lease the vehicle for the period of time
to which the rental rate applies. A rental company shall not charge
in addition to the rental rate, taxes, a customer facility charge, if
any, and a mileage charge, if any, any fee that is required to be
paid by the renter as a condition of hiring or leasing the vehicle,
including, but not limited to, required fuel or airport surcharges
other than customer facility charges, nor a fee for transporting the
renter to the location where the rented vehicle will be delivered to
the renter.
   (2) In addition to the rental rate, taxes, customer facility
charges, if any, and mileage charges, if any, a rental company may
charge for an item or service provided in connection with a
particular rental transaction if the renter could have avoided
incurring the charge by choosing not to obtain or utilize the
optional item or service. Items and services for which the rental
company may impose an additional charge include, but are not limited
to, optional insurance and accessories requested by the renter,
service charges incident to the renter's optional return of the
vehicle to a location other than the location where the vehicle was
hired or leased, and charges for refueling the vehicle at the
conclusion of the rental transaction in the event the renter did not
return the vehicle with as much fuel as was in the fuel tank at the
beginning of the rental. A rental company also may impose an
additional charge based on reasonable age criteria established by the
rental company.
   (3) A rental company shall not charge a fee for authorized drivers
in addition to the rental charge for an individual renter.
   (4) If a rental company states a rental rate in print
advertisement or in a telephonic, in-person, or computer-transmitted
quotation, the rental company shall disclose clearly in that
advertisement or quotation the terms of mileage conditions relating
to the advertised or quoted rental rate, including, but not limited
to, to the extent applicable, the amount of mileage and gas charges,
the number of miles for which no charges will be imposed, and a
description of geographic driving limitations within the United
States and Canada.
   (5) (A) When a rental rate is stated in an advertisement,
quotation, or reservation in connection with a car rental at an
airport where a customer facility charge is imposed, the rental
company shall disclose clearly the existence and amount of the
customer facility charge. For purposes of this subparagraph,
advertisements include radio, television, other electronic media, and
print advertisements. For purposes of this subparagraph, quotations
and reservations include those that are telephonic, in-person, and
computer-transmitted. If the rate advertisement is intended to
include transactions at more than one airport imposing a customer
facility charge, a range of fees may be stated in the advertisement.
However, all rate advertisements that include car rentals at airport
destinations shall clearly and conspicuously include a toll-free
telephone number whereby a customer can be told the specific amount
of the customer facility charge to which the customer will be
obligated.
   (B) If a person or entity other than a rental car company,
including a passenger carrier or a seller of travel services,
advertises or quotes a rate for a car rental at an airport where a
customer facility charge is imposed, that person or entity shall,
provided that he, she, or it is provided with information about the
existence and amount of the fee, to the extent not specifically
prohibited by federal law, clearly disclose the existence and amount
of the fee in any telephonic, in-person, or computer-transmitted
quotation at the time of making an initial quotation of a rental rate
and at the time of making a reservation of a rental car. If a rental
car company provides the person or entity with rate and customer
facility charge information, the rental car company is not
responsible for the failure of that person or entity to comply with
this subparagraph when quoting or confirming a rate to a third person
or entity.
   (6) If a rental company delivers a vehicle to a renter at a
location other than the location where the rental company normally
carries on its business, the rental company shall not charge the
renter an amount for the rental for the period before the delivery of
the vehicle. If a rental company picks up a rented vehicle from a
renter at a location other than the location where the rental company
normally carries on its business, the rental company shall not
charge the renter an amount for the rental for the period after the
renter notifies the rental company to pick up the vehicle.
   (o) A rental company shall not use, access, or obtain any
information relating to the renter's use of the rental vehicle that
was obtained using electronic surveillance technology, except in the
following circumstances:
   (1) (A) When the equipment is used by the rental company only for
the purpose of locating a stolen, abandoned, or missing rental
vehicle after one of the following:
   (i) The renter or law enforcement has informed the rental company
that the vehicle has been stolen, abandoned, or missing.
   (ii) The rental vehicle has not been returned following one week
after the contracted return date, or by one week following the end of
an extension of that return date.
   (iii) The rental company discovers the rental vehicle has been
stolen or abandoned, and, if stolen, it shall report the vehicle
stolen to law enforcement by filing a stolen vehicle report, unless
law enforcement has already informed the rental company that the
vehicle has been stolen, abandoned, or is missing.
   (B) If electronic surveillance technology is activated pursuant to
subparagraph (A), a rental company shall maintain a record, in
either electronic or written form, of information relevant to the
activation of that technology. That information shall include the
rental agreement, including the return date, and the date and time
the electronic surveillance technology was activated. The record
shall also include, if relevant, a record of written or other
communication with the renter, including communications regarding
extensions of the rental, police reports, or other written
communication with law enforcement officials. The record shall be
maintained for a period of at least 12 months from the time the
record is created and shall be made available upon the renter's
request. The rental company shall maintain and furnish explanatory
codes necessary to read the record. A rental company shall not be
required to maintain a record if electronic surveillance technology
is activated to recover a rental vehicle that is stolen or missing at
a time other than during a rental period.
   (2) In response to a specific request from law enforcement
pursuant to a subpoena or search warrant.
   (3) This subdivision does not prohibit a rental company from
equipping rental vehicles with GPS-based technology that provides
navigation assistance to the occupants of the rental vehicle, if the
rental company does not use, access, or obtain information relating
to the renter's use of the rental vehicle that was obtained using
that technology, except for the purposes of discovering or repairing
a defect in the technology and the information may then be used only
for that purpose.
   (4) This subdivision does not prohibit a rental company from
equipping rental vehicles with electronic surveillance technology
that allows for the remote locking or unlocking of the vehicle at the
request of the renter, if the rental company does not use, access,
or obtain information relating to the renter's use of the rental
vehicle that was obtained using that technology, except as necessary
to lock or unlock the vehicle.
   (5) This subdivision does not prohibit a rental company from
equipping rental vehicles with electronic surveillance technology
that allows the company to provide roadside assistance, such as
towing, flat tire, or fuel services, at the request of the renter, if
the rental company does not use, access, or obtain information
relating to the renter's use of the rental vehicle that was obtained
using that technology except as necessary to provide the requested
roadside assistance.
   (6) This subdivision does not prohibit a rental company from
obtaining, accessing, or using information from electronic
surveillance technology for the sole purpose of determining the date
and time the vehicle is returned to the rental company, and the total
mileage driven and the vehicle fuel level of the returned vehicle.
This paragraph, however, shall apply only after the renter has
returned the vehicle to the rental company, and the information shall
only be used for the purpose described in this paragraph.
   (p) A rental company shall not use electronic surveillance
technology to track a renter in order to impose fines or surcharges
relating to the renter's use of the rental vehicle.
   (q) A renter may bring an action against a rental company for the
recovery of damages and appropriate equitable relief for a violation
of this section. The prevailing party shall be entitled to recover
reasonable attorney's fees and costs.
   (r) A rental company that brings an action against a renter for
loss due to theft of the vehicle shall bring the action in the county
in which the renter resides or, if the renter is not a resident of
this state, in the jurisdiction in which the renter resides.
   (s) A waiver of any of the provisions of this section shall be
void and unenforceable as contrary to public policy.
   (t) (1) A rental company's disclosure requirements shall be
satisfied for renters who are enrolled in the rental company's
membership program if all of the following conditions are met:
   (A) Prior to the enrollee's first rental as a participant in the
program, the renter receives, in writing, the following:
   (i) All of the disclosures required by paragraph (1) of
subdivision (g), including the terms and conditions of the rental
agreement then in effect.
   (ii) An Internet Web site address, as well as a contact number or
address, where the enrollee can learn of changes to the rental
agreement or to the laws of this state governing rental agreements
since the effective date of the rental company's most recent
restatement of the rental agreement and distribution of that
restatement to its members.
   (B) At the commencement of each rental period, the renter is
provided, on the rental record or the folder in which it is inserted,
with a printed notice stating that he or she had either previously
selected or declined an optional damage waiver and that the renter
has the right to change preferences.
   (C) At the commencement of each rental period, the rental company
provides, on the rearview mirror, a hanger on which a statement is
printed, in a box, in at least 12-point boldface type, notifying the
renter that the collision damage waiver offered by the rental company
may be duplicative of coverage that the customer maintains under his
or her own policy of motor vehicle insurance. If it is not feasible
to hang the statement from the rearview mirror, it shall be hung from
the steering wheel.
   The hanger shall provide the renter a box to initial if he or she
(not his or her employer) has previously accepted or declined the
collision damage waiver and that he or she now wishes to change his
or her decision to accept or decline the collision damage waiver, as
follows:

    "/-/  If I previously accepted the collision damage waiver, I now
decline it.

     /-/  If I previously declined the collision damage waiver, I now
accept it."

   The hanger shall also provide a box for the enrollee to indicate
whether this change applies to this rental transaction only or to all
future rental transactions. The hanger shall also notify the renter
that he or she may make that change, prior to leaving the lot, by
returning the form to an employee designated to receive the form who
is present at the lot where the renter takes possession of the car,
to receive any change in the rental agreement from the renter.
   (2) (A) This subdivision is not effective unless the employee
designated pursuant to subparagraph (E) of paragraph (8) of
subdivision (a) is actually present at the required location.
   (B) This subdivision does not relieve the rental company from the
disclosures required to be made within the text of a contract or
holder in which the contract is placed; in or on an advertisement
containing a rental rate; or in a telephonic, in-person, or
computer-transmitted quotation or reservation.
   (u) The amendments made to this section during the 2001-02 Regular
Session of the Legislature do not affect litigation pending on or
before January 1, 2003, alleging a violation of Section 22325 of the
Business and Professions Code as it read at the time the action was
commenced.
  SEC. 32.  Section 1951.7 of the Civil Code is amended to read:
   1951.7.  (a) As used in this section, "advance payment" means
moneys paid to the lessor of real property as prepayment of rent, or
as a deposit to secure faithful performance of the terms of the
lease, or another payment that is the substantial equivalent of
either of these. A payment that is not in excess of the amount of one
month's rent is not an advance payment for purposes of this section.

   (b) The notice provided by subdivision (c) is required to be given
only if all of the following apply:
   (1) The lessee has made an advance payment.
   (2) The lease is terminated pursuant to Section 1951.2.
   (3) The lessee has made a request, in writing, to the lessor that
he or she be given notice under subdivision (c).
   (c) Upon the initial reletting of the property, the lessor shall
send a written notice to the lessee stating that the property has
been relet, the name and address of the new lessee, and the length of
the new lease and the amount of the rent. The notice shall be
delivered to the lessee personally, or be sent by regular mail to the
lessee at the address shown on the request, not later than 30 days
after the new lessee takes possession of the property. Notice is not
required if the amount of the rent due and unpaid at the time of
termination exceeds the amount of the advance payment.
  SEC. 33.  Section 2938 of the Civil Code is amended to read:
   2938.  (a) A written assignment of an interest in leases, rents,
issues, or profits of real property made in connection with an
obligation secured by real property, irrespective of whether the
assignment is denoted as absolute, absolute conditioned upon default,
additional security for an obligation, or otherwise, shall, upon
execution and delivery by the assignor, be effective to create a
present security interest in existing and future leases, rents,
issues, or profits of that real property. As used in this section,
"leases, rents, issues, and profits of real property" includes the
cash proceeds thereof. "Cash proceeds" means cash, checks, deposit
accounts, and the like.
   (b) An assignment of an interest in leases, rents, issues, or
profits of real property may be recorded in the records of the county
recorder in the county in which the underlying real property is
located in the same manner as any other conveyance of an interest in
real property, whether the assignment is in a separate document or
part of a mortgage or deed of trust, and when so duly recorded in
accordance with the methods, procedures, and requirements for
recordation of conveyances of other interests in real property, (1)
the assignment shall be deemed to give constructive notice of the
content of the assignment with the same force and effect as any other
duly recorded conveyance of an interest in real property and (2) the
interest granted by the assignment shall be deemed fully perfected
as of the time of recordation with the same force and effect as any
other duly recorded conveyance of an interest in real property,
notwithstanding a provision of the assignment or a provision of law
that would otherwise preclude or defer enforcement of the rights
granted the assignee under the assignment until the occurrence of a
subsequent event, including, but not limited to, a subsequent default
of the assignor, or the assignee's obtaining possession of the real
property or the appointment of a receiver.
   (c) Upon default of the assignor under the obligation secured by
the assignment of leases, rents, issues, and profits, the assignee
shall be entitled to enforce the assignment in accordance with this
section. On and after the date the assignee takes one or more of the
enforcement steps described in this subdivision, the assignee shall
be entitled to collect and receive all rents, issues, and profits
that have accrued but remain unpaid and uncollected by the assignor
or its agent or for the assignor's benefit on that date, and all
rents, issues, and profits that accrue on or after the date. The
assignment shall be enforced by one or more of the following:
   (1) The appointment of a receiver.
   (2) Obtaining possession of the rents, issues, or profits.
   (3) Delivery to any one or more of the tenants of a written demand
for turnover of rents, issues, and profits in the form specified in
subdivision (k), a copy of which demand shall also be delivered to
the assignor; and a copy of which shall be mailed to all other
assignees of record of the leases, rents, issues, and profits of the
real property at the address for notices provided in the assignment
or, if none, to the address to which the recorded assignment was to
be mailed after recording.
   (4) Delivery to the assignor of a written demand for the rents,
issues, or profits, a copy of which shall be mailed to all other
assignees of record of the leases, rents, issues, and profits of the
real property at the address for notices provided in the assignment
or, if none, to the address to which the recorded assignment was to
be mailed after recording.
   Moneys received by the assignee pursuant to this subdivision, net
of amounts paid pursuant to subdivision (g), if any, shall be applied
by the assignee to the debt or otherwise in accordance with the
assignment or the promissory note, deed of trust, or other instrument
evidencing the obligation, provided, however, that neither the
application nor the failure to so apply the rents, issues, or profits
shall result in a loss of any lien or security interest that the
assignee may have in the underlying real property or any other
collateral, render the obligation unenforceable, constitute a
violation of Section 726 of the Code of Civil Procedure, or otherwise
limit a right available to the assignee with respect to its
security.
   (d) If an assignee elects to take the action provided for under
paragraph (3) of subdivision (c), the demand provided for therein
shall be signed under penalty of perjury by the assignee or an
authorized agent of the assignee and shall be effective as against
the tenant when actually received by the tenant at the address for
notices provided under the lease or other contractual agreement under
which the tenant occupies the property or, if no address for notices
is so provided, at the property. Upon receipt of this demand, the
tenant shall be obligated to pay to the assignee all rents, issues,
and profits that are past due and payable on the date of receipt of
the demand, and all rents, issues, and profits coming due under the
lease following the date of receipt of the demand, unless either of
the following occurs:
   (1) The tenant has previously received a demand that is valid on
its face from another assignee of the leases, issues, rents, and
profits sent by the other assignee in accordance with this
subdivision and subdivision (c).
   (2) The tenant, in good faith and in a manner that is not
inconsistent with the lease, has previously paid, or within 10 days
following receipt of the demand notice pays, the rent to the
assignor.
   Payment of rent to an assignee following a demand under an
assignment of leases, rents, issues, and profits shall satisfy the
tenant's obligation to pay the amounts under the lease. If a tenant
pays rent to the assignor after receipt of a demand other than under
the circumstances described in this subdivision, the tenant shall not
be discharged of the obligation to pay rent to the assignee, unless
the tenant occupies the property for residential purposes. The
obligation of a tenant to pay rent pursuant to this subdivision and
subdivision (c) shall continue until receipt by the tenant of a
written notice from a court directing the tenant to pay the rent in a
different manner or receipt by the tenant of a written notice from
the assignee from whom the demand was received canceling the demand,
whichever occurs first. This subdivision does not affect the
entitlement to rents, issues, or profits as between assignees as set
forth in subdivision (h).
   (e) An enforcement action of the type authorized by subdivision
(c), and a collection, distribution, or application of rents, issues,
or profits by the assignee following an enforcement action of the
type authorized by subdivision (c), shall not do any of the
following:
   (1) Make the assignee a mortgagee in possession of the property,
except if the assignee obtains actual possession of the real
property, or an agent of the assignor.
   (2) Constitute an action, render the obligation unenforceable,
violate Section 726 of the Code of Civil Procedure, or, other than
with respect to marshaling requirements, otherwise limit any rights
available to the assignee with respect to its security.
   (3) Be deemed to create a bar to a deficiency judgment pursuant to
a provision of law governing or relating to deficiency judgments
following the enforcement of any encumbrance, lien, or security
interest, notwithstanding that the action, collection, distribution,
or application may reduce the indebtedness secured by the assignment
or by a deed of trust or other security instrument.
   The application of rents, issues, or profits to the secured
obligation shall satisfy the secured obligation to the extent of
those rents, issues, or profits, and, notwithstanding any provisions
of the assignment or other loan documents to the contrary, shall be
credited against any amounts necessary to cure any monetary default
for purposes of reinstatement under Section 2924c.
   (f) If cash proceeds of rents, issues, or profits to which the
assignee is entitled following enforcement as set forth in
subdivision (c) are received by the assignor or its agent for
collection or by another person who has collected such rents, issues,
or profits for the assignor's benefit, or for the benefit of a
subsequent assignee under the circumstances described in subdivision
(h), following the taking by the assignee of either of the
                                      enforcement actions authorized
in paragraph (3) or (4) of subdivision (c), and the assignee has not
authorized the assignor's disposition of the cash proceeds in a
writing signed by the assignee, the rights to the cash proceeds and
to the recovery of the cash proceeds shall be determined by the
following:
   (1) The assignee shall be entitled to an immediate turnover of the
cash proceeds received by the assignor or its agent for collection
or any other person who has collected the rents, issues, or profits
for the assignor's benefit, or for the benefit of a subsequent
assignee under the circumstances described in subdivision (h), and
the assignor or other described party in possession of those cash
proceeds shall turn over the full amount of cash proceeds to the
assignee, less any amount representing payment of expenses authorized
by the assignee in writing. The assignee shall have a right to bring
an action for recovery of the cash proceeds, and to recover the cash
proceeds, without the necessity of bringing an action to foreclose a
security interest that it may have in the real property. This action
shall not violate Section 726 of the Code of Civil Procedure or
otherwise limit a right available to the assignee with respect to its
security.
   (2) As between an assignee with an interest in cash proceeds
perfected in the manner set forth in subdivision (b) and enforced in
accordance with paragraph (3) or (4) of subdivision (c) and another
person claiming an interest in the cash proceeds, other than the
assignor or its agent for collection or one collecting rents, issues,
and profits for the benefit of the assignor, and subject to
subdivision (h), the assignee shall have a continuously perfected
security interest in the cash proceeds to the extent that the cash
proceeds are identifiable. For purposes hereof, cash proceeds are
identifiable if they are either (A) segregated or (B) if commingled
with other funds of the assignor or its agent or one acting on its
behalf, can be traced using the lowest intermediate balance
principle, unless the assignor or other party claiming an interest in
proceeds shows that some other method of tracing would better serve
the interests of justice and equity under the circumstances of the
case. The provisions of this paragraph are subject to any generally
applicable law with respect to payments made in the operation of the
assignor's business.
   (g) (1) If the assignee enforces the assignment under subdivision
(c) by means other than the appointment of a receiver and receives
rents, issues, or profits pursuant to this enforcement, the assignor
or another assignee of the affected real property may make written
demand upon the assignee to pay the reasonable costs of protecting
and preserving the property, including payment of taxes and insurance
and compliance with building and housing codes, if any.
   (2) On and after the date of receipt of the demand, the assignee
shall pay for the reasonable costs of protecting and preserving the
real property to the extent of any rents, issues, or profits actually
received by the assignee, provided, however, that no such acts by
the assignee shall cause the assignee to become a mortgagee in
possession and the assignee's duties under this subdivision, upon
receipt of a demand from the assignor or any other assignee of the
leases, rents, issues, and profits pursuant to paragraph (1), shall
not be construed to require the assignee to operate or manage the
property, which obligation shall remain that of the assignor.
   (3) The obligation of the assignee hereunder shall continue until
the earlier of (A) the date on which the assignee obtains the
appointment of a receiver for the real property pursuant to
application to a court of competent jurisdiction, or (B) the date on
which the assignee ceases to enforce the assignment.
   (4) This subdivision does not supersede or diminish the right of
the assignee to the appointment of a receiver.
   (h) The lien priorities, rights, and interests among creditors
concerning rents, issues, or profits collected before the enforcement
by the assignee shall be governed by subdivisions (a) and (b).
Without limiting the generality of the foregoing, if an assignee who
has recorded its interest in leases, rents, issues, and profits prior
to the recordation of that interest by a subsequent assignee seeks
to enforce its interest in those rents, issues, or profits in
accordance with this section after any enforcement action has been
taken by a subsequent assignee, the prior assignee shall be entitled
only to the rents, issues, and profits that are accrued and unpaid as
of the date of its enforcement action and unpaid rents, issues, and
profits accruing thereafter. The prior assignee shall have no right
to rents, issues, or profits paid prior to the date of the
enforcement action, whether in the hands of the assignor or any
subsequent assignee. Upon receipt of notice that the prior assignee
has enforced its interest in the rents, issues, and profits, the
subsequent assignee shall immediately send a notice to any tenant to
whom it has given notice under subdivision (c). The notice shall
inform the tenant that the subsequent assignee cancels its demand
that the tenant pay rent to the subsequent assignee.
   (i) (1) This section shall apply to contracts entered into on or
after January 1, 1997.
   (2) Sections 2938 and 2938.1, as these sections were in effect
prior to January 1, 1997, shall govern contracts entered into prior
to January 1, 1997, and shall govern actions and proceedings
initiated on the basis of these contracts.
   (j) "Real property," as used in this section, means real property
or any estate or interest therein.
   (k) The demand required by paragraph (3) of subdivision (c) shall
be in the following form:
      DEMAND TO PAY RENT TO

PARTY OTHER THAN LANDLORD

(SECTION 2938 OF THE CIVIL CODE)

Tenant:  (Name of Tenant)


Property Occupied by Tenant:  (Address)


Landlord:  (Name of Landlord)


Secured Party:  (Name of Secured Party)


Address:  (Address for Payment of Rent to Secured Party and for
Further Information):


The secured party named above is the assignee of leases, rents,
issues, and profits under (name of document) dated ______, and
recorded at (recording information) in the official records of
___________ County, California. You may request a copy of the
assignment from the secured party at ____ (address).


THIS NOTICE AFFECTS YOUR LEASE OR RENTAL AGREEMENT RIGHTS AND
OBLIGATIONS. YOU ARE THEREFORE ADVISED TO CONSULT AN ATTORNEY
CONCERNING THOSE RIGHTS AND OBLIGATIONS IF YOU HAVE ANY QUESTIONS
REGARDING YOUR RIGHTS AND OBLIGATIONS UNDER THIS NOTICE.


IN ACCORDANCE WITH SUBDIVISION (C) OF SECTION 2938 OF THE CIVIL CODE,
YOU ARE HEREBY DIRECTED TO PAY TO THE SECURED PARTY, ____ (NAME OF
SECURED PARTY) AT ____ (ADDRESS), ALL RENTS UNDER YOUR LEASE OR OTHER
RENTAL AGREEMENT WITH THE LANDLORD OR PREDECESSOR IN INTEREST OF
LANDLORD, FOR THE OCCUPANCY OF THE PROPERTY AT ____ (ADDRESS OF
RENTAL PREMISES) WHICH ARE PAST DUE AND PAYABLE ON THE DATE YOU
RECEIVE THIS DEMAND, AND ALL RENTS COMING DUE UNDER THE LEASE OR
OTHER RENTAL AGREEMENT FOLLOWING THE DATE YOU RECEIVE THIS DEMAND
UNLESS YOU HAVE ALREADY PAID THIS RENT TO THE LANDLORD IN GOOD FAITH
AND IN A MANNER NOT INCONSISTENT WITH THE AGREEMENT BETWEEN YOU AND
THE LANDLORD. IN THIS CASE, THIS DEMAND NOTICE SHALL REQUIRE YOU TO
PAY TO THE SECURED PARTY, ____ (NAME OF THE SECURED PARTY), ALL RENTS
THAT COME DUE FOLLOWING THE DATE OF THE PAYMENT TO THE LANDLORD.


IF YOU PAY THE RENT TO THE UNDERSIGNED SECURED PARTY, ____ (NAME OF
SECURED PARTY), IN ACCORDANCE WITH THIS NOTICE, YOU DO NOT HAVE TO
PAY THE RENT TO THE LANDLORD. YOU WILL NOT BE SUBJECT TO DAMAGES OR
OBLIGATED TO PAY RENT TO THE SECURED PARTY IF YOU HAVE PREVIOUSLY
RECEIVED A DEMAND OF THIS TYPE FROM A DIFFERENT SECURED PARTY.


(For other than residential tenants) IF YOU PAY RENT TO THE LANDLORD
THAT BY THE TERMS OF THIS DEMAND YOU ARE REQUIRED TO PAY TO THE
SECURED PARTY, YOU MAY BE SUBJECT TO DAMAGES INCURRED BY THE SECURED
PARTY BY REASON OF YOUR FAILURE TO COMPLY WITH THIS DEMAND, AND YOU
MAY NOT BE DISCHARGED FROM YOUR OBLIGATION TO PAY THAT RENT TO THE
SECURED PARTY. YOU WILL NOT BE SUBJECT TO THOSE DAMAGES OR OBLIGATED
TO PAY THAT RENT TO THE SECURED PARTY IF YOU HAVE PREVIOUSLY RECEIVED
A DEMAND OF THIS TYPE FROM A DIFFERENT ASSIGNEE.


Your obligation to pay rent under this demand shall continue until
you receive either (1) a written notice from a court directing you to
pay the rent in a manner provided therein, or (2) a written notice
from the secured party named above canceling this demand.


The undersigned hereby certifies, under penalty of perjury, that the
undersigned is an authorized officer or agent of the secured party
and that the secured party is the assignee, or the current successor
to the assignee, under an assignment of leases, rents, issues, or
profits executed by the landlord, or a predecessor in interest, that
is being enforced pursuant to and in accordance with Section 2938 of
the Civil Code.


Executed at _________, California, this ____ day of _________, _____.

                  (Secured Party)
                  Name: __________________________
                  Title: _________________________


  SEC. 34.  Section 340.7 of the Code of Civil Procedure is amended
to read:
   340.7.  (a) Notwithstanding Section 335.1, a civil action brought
by, or on behalf of, a Dalkon Shield victim against the Dalkon Shield
Claimants' Trust, shall be brought in accordance with the procedures
established by A.H. Robins Company, Inc. Plan of Reorganization, and
shall be brought within 15 years of the date on which the victim's
injury occurred, except that the statute shall be tolled from August
21, 1985, the date on which the A.H. Robins Company filed for Chapter
11 Reorganization in Richmond, Virginia.
   (b) This section applies regardless of when the action or claim
shall have accrued or been filed and regardless of whether it might
have lapsed or otherwise be barred by time under California law.
However, this section shall only apply to victims who, prior to
January 1, 1990, filed a civil action, a timely claim, or a claim
that is declared to be timely under the sixth Amended and Restated
Disclosure Statement filed pursuant to Section 1125 of the Federal
Bankruptcy Code in re: A.H. Robins Company, Inc., dated March 28,
1988, U.S. Bankruptcy Court, Eastern District of Virginia (case
number 85-01307-R).
  SEC. 35.  Section 486.050 of the Code of Civil Procedure is amended
to read:
   486.050.  (a) Except as otherwise provided in Section 486.040, the
temporary protective order may prohibit a transfer by the defendant
of any of the defendant's property in this state subject to the levy
of the writ of attachment. The temporary protective order shall
describe the property in a manner adequate to permit the defendant to
identify the property subject to the temporary protective order.
   (b) Notwithstanding subdivision (a), if the property is farm
products held for sale or is inventory, the temporary protective
order shall not prohibit the defendant from transferring the property
in the ordinary course of business, but the temporary protective
order may impose appropriate restrictions on the disposition of the
proceeds from that type of transfer.
  SEC. 36.  Section 9526.5 of the Commercial Code is amended to read:

   9526.5.  (a) For purposes of this section, the following terms
have the following meanings:
   (1) "Official filing" means the permanent archival filing of all
instruments, papers, records, and attachments as accepted for filing
by a filing office.
   (2) "Public filing" means a filing that is an exact copy of an
official filing except that any social security number contained in
the copied filing is truncated. The public filing shall have the same
legal force and effect as the official filing.
   (3) "Truncate" means to redact at least the first five digits of a
social security number.
   (4) "Truncated social security number" means a social security
number that displays no more than the last four digits of the number.

   (b) For every filing containing an untruncated social security
number filed before August 1, 2007, a filing office shall create a
public filing.
   (c) A filing office shall post a notice on its Internet Web site
informing filers not to include social security numbers in any
portion of their filings. A filing office's online filing system
shall not contain a field requesting a social security number.
   (d) Beginning August 1, 2007, for every filing containing an
untruncated social security number filed by means other than the
filing office's Internet Web site, a filing office shall create a
public filing.
   (e) When a public filing version of an official filing exists,
both of the following shall apply:
   (1) Upon a request for inspection, copying, or other public
disclosure of an official filing that is not exempt from disclosure,
a filing office shall make available only the public filing version
of that filing.
   (2) A filing office shall publicly disclose an official filing
only in response to a subpoena or order of a court of competent
jurisdiction.
   (3) This article does not restrict, delay, or modify access to an
official filing, or modify existing agreements regarding access to an
official filing, prior to the creation and availability of a public
filing version of that official filing.
   (f) A filing office shall be deemed to be in compliance with the
requirements of this section and shall not be liable for failure to
truncate a social security number if the office uses due diligence to
locate social security numbers in official records and truncate the
social security numbers in the public filing version of those
official filings. The use of an automated program with a high rate of
accuracy shall be deemed to be due diligence.
   (g) In the event that a filing office fails to truncate a social
security number contained in a record pursuant to subdivision (b) or
(d), a person may request that the filing office truncate the social
security number contained in that record. Notwithstanding that a
filing office may be deemed to be in compliance with this section
pursuant to subdivision (f), a filing office that receives a request
that identifies the exact location of an untruncated social security
number that is required to be truncated pursuant to subdivision (b)
or (d) within a specifically identified record, shall truncate that
number within 10 business days of receiving the request. The public
filing with the truncated social security number shall replace the
record with the untruncated number.
   (h) The Secretary of State shall not produce or make available
financing statements in the form and format described in Section 9521
that provide a space identified for the disclosure of the social
security number of an individual.
   (i) The Secretary of State shall produce and make available
financing statements in the form and format described in Section
9521, except that the financing statements shall not provide a space
identified for the disclosure of the social security number of an
individual.
   (j) This section does not apply to a county recorder.
  SEC. 37.  The heading of Chapter 1 (commencing with Section 8006)
of Part 6 of Division 1 of Title 1 of the Education Code is amended
to read:
      CHAPTER 1.  CAREER TECHNICAL EDUCATION


  SEC. 38.  The heading of Article 1 (commencing with Section 8006)
of Chapter 1 of Part 6 of Division 1 of Title 1 of the Education Code
is amended to read:

      Article 1.  Career Technical Education Staff and Reports


  SEC. 39.  Section 8484 of the Education Code is amended to read:
   8484.  (a) As required by the department, programs established
pursuant to this article shall submit annual outcome-based data for
evaluation, including research-based indicators and measurable pupil
outcomes for academic performance, attendance, and positive
behavioral changes. The department may consider these outcomes when
determining eligibility for grant renewal.
   (1) To demonstrate program effectiveness, grantees shall submit
both of the following:
   (A) Schoolday attendance on an annual basis.
   (B) Program attendance.
   (2) To demonstrate program effectiveness based upon individual
program focus, programs shall submit one or more of the following
measures annually:
   (A) Positive behavioral changes, as reported by schoolday teachers
or after school staff who directly supervise pupils.
   (B) Pupil Standardized Testing and Reporting (STAR) Program test
scores.
   (C) Homework completion rates as reported by schoolday teachers or
after school staff who directly supervise pupils.
   (D) Skill development as reported by schoolday teachers or after
school staff who directly supervise pupils.
   (E) The department may develop additional measures for this
paragraph. Any additions shall be developed in consultation with the
evaluation committee of the advisory committee.
   (3) Programs shall submit information adopted through the process
outlined in subdivision (c).
   (b) (1) If a program consistently fails to demonstrate measurable
program outcomes for three consecutive years, the department may
terminate the program as described in subdivision (a) of Section
8483.7. The department shall consider multiple outcomes and not rely
on one outcome in isolation.
   (2) For purposes of this section, "consistently fails to
demonstrate measurable program outcomes" means failure to meet
program effectiveness requirements pursuant to the criteria in
paragraphs (1) and (2) of subdivision (a).
   (3) Measurable program outcomes may be demonstrated by, but are
not limited to, the following methods:
   (A) Comparing pupils participating in the program to
nonparticipating pupils at the same schoolsite.
   (B) Pupils participating in the program demonstrate improvement on
one or more indicators collected by the program pursuant to this
paragraph.
   (4) For purposes of subparagraph (B) of paragraph (2) of
subdivision (a), program effectiveness may be demonstrated using
performance levels from the STAR Program by any of the following:
   (A) The grantee documents that the percentage of pupils performing
at the far below basic level declined.
   (B) The grantee documents that the percentage of pupils performing
above the far below basic and below basic levels increased.
   (C) The grantee documents that the percentage of pupils who
performed at or above the basic level increased.
   (D) The grantee documents that pupils participating in the program
performed better in a year-to-year comparison of the results of the
STAR Program than their peers who were not participating in the
program.
   (c) The department shall develop standardized procedures and tools
to collect the indicators in paragraphs (1) and (2) of subdivision
(a). The department shall consult with the evaluation committee of
the Advisory Committee on Before and After School Programs pursuant
to Section 8484.9.
  SEC. 40.  Section 8774 of the Education Code is amended to read:
   8774.  (a) A residential outdoor science program shall be eligible
for funding pursuant to this section if it meets both of the
following conditions:
   (1) It is operated by a school district or county office of
education pursuant to this article.
   (2) It meets the standards of the Residential Outdoor Science
School (ROSS) Guide and maintains current department ROSS
certification.
   (b) An eligible residential outdoor science program may claim
apportionment for any pupil who meets all of the following
conditions:
   (1) The pupil is enrolled in a California public school.
   (2) The pupil is enrolled in grade 5 or 6.
   (3) The applicant has not previously received funding for the
pupil pursuant to this section.
   (4) The pupil participates in a minimum four-day and three-night
program.
   (5) The pupil is economically disadvantaged and meets the criteria
of Section 49552.
   (c) The Superintendent shall, subject to appropriation of funds
for this purpose, apportion to each school district or county office
of education that operates a residential outdoor science program
pursuant to this article an amount equal to ten dollars ($10) per
eligible participating pupil, multiplied by the total number of days
of participation, up to a maximum of five days.
  SEC. 41.  Section 17075.10 of the Education Code is amended to
read:
   17075.10.  (a) A school district may apply for hardship assistance
in cases of extraordinary circumstances. Extraordinary circumstances
may include, but are not limited to, the need to repair,
reconstruct, or replace the most vulnerable school facilities that
are identified as a Category 2 building, as defined in the report
submitted pursuant to Section 17317, determined by the department to
pose an unacceptable risk of injury to its occupants in the event of
a seismic event.
   (b) A school district applying for hardship state funding under
this article shall comply with either paragraph (1) or (2).
   (1) Demonstrate both of the following:
   (A) That due to extreme financial, disaster-related, or other
hardship the school district has unmet need for pupil housing.
   (B) That the school district is not financially capable of
providing the matching funds otherwise required for state
participation, that the district has made all reasonable efforts to
impose all levels of local debt capacity and development fees, and
that the school district is, therefore, unable to participate in the
program pursuant to this chapter except as set forth in this article.

   (2) Demonstrate that due to unusual circumstances that are beyond
the control of the district, excessive costs need to be incurred in
the construction of school facilities. Funds for the purpose of
seismic mitigation work or facility replacement pursuant to this
section shall be allocated by the board on a 50-percent state share
basis from funds reserved for that purpose in any bond approved by
the voters after January 1, 2006. If the board determines that the
seismic mitigation work of a school building would require funding
that is greater than 50 percent of the funds required to construct a
new facility, the school district shall be eligible for funding to
construct a new facility under this chapter.
   (c) The board shall review the increased costs that may be
uniquely associated with urban construction and shall adjust the
per-pupil grant for new construction or modernization hardship
applications as necessary to accommodate those costs. The board shall
adopt regulations setting forth the standards, methodology, and a
schedule of allowable adjustments, for the urban adjustment factor
established pursuant to this subdivision.
  SEC. 42.  Section 33051 of the Education Code is amended to read:
   33051.  (a) The state board shall approve any and all requests for
waivers except in those cases where the board specifically finds any
of the following:
   (1) The educational needs of the pupils are not adequately
addressed.
   (2) The waiver affects a program that requires the existence of a
schoolsite council and the schoolsite council did not approve the
request.
   (3) The appropriate councils or advisory committees, including
bilingual advisory committees, did not have an adequate opportunity
to review the request and the request did not include a written
summary of any objections to the request by the councils or advisory
committees.
   (4) Pupil or school personnel protections are jeopardized.
   (5) Guarantees of parental involvement are jeopardized.
   (6) The request would substantially increase state costs.
   (7) The exclusive representative of employees, if any, as provided
in Chapter 10.7 (commencing with Section 3540) of Division 4 of
Title 1 of the Government Code, was not a participant in the
development of the waiver.
   (b) The governing board of a school district that has requested
and received a general waiver under this article for two consecutive
years for the same general waiver is not required to reapply annually
if the information contained on the request remains current. The
state board may require updated information for the request whenever
it determines that information to be necessary. This section does not
prevent the state board from rescinding a waiver if additional
information supporting a rescission is made available to the board.
This waiver process shall not apply to waivers pertaining to teacher
credentialing, which shall be submitted to the state board annually.
  SEC. 43.  Section 33382 of the Education Code is amended to read:
   33382.  The state board, upon the advice and recommendations of
the Superintendent, shall approve revised guidelines for the
selection and administration of California American Indian education
centers. The Superintendent shall request input from the American
Indian Education Oversight Committee on amendments and updates to the
1975 guidelines and the committee may provide input to the
Superintendent prior to the submission of the guidelines to the state
board.
  SEC. 44.  Section 35021.3 of the Education Code is amended to read:

   35021.3.  (a) A school district or a county office of education
may establish a registry of volunteer after school physical
recreation instructors and other before and after school program
volunteers.
   (b) (1) To be included on a registry established pursuant to this
section, a prospective registrant shall submit to a criminal
background check pursuant to Section 45125. The prospective
registrant shall also submit current contact information to the
school district or county office maintaining the registry and shall
update that information whenever the information changes.
   (2) A school, school district, or county office of education may
contribute funds to pay for all or part of the cost of a criminal
background check required of a prospective registrant pursuant to
paragraph (1).
   (c) A school district or county office maintaining a registry may
impose other requirements on prospective registrants, including, but
not limited to, certification in cardiopulmonary resuscitation.
   (d) Upon approval of the person acting as the coordinator of, or
overseeing, the after school activities of the school, a school under
the jurisdiction of a school district or county office of education
maintaining a registry may allow a volunteer registered with the
school district or county office to provide instruction in physical
recreation to pupils after school hours or provide other services.
   (e) This section does not require a school district or county
office of education to establish or maintain a registry and does not
require a school to use
   a volunteer from a registry to provide instruction in physical
recreation to pupils after school hours or provide other services.
   (f) Instruction in physical recreation provided to a pupil by a
volunteer pursuant to subdivision (d) shall not be counted toward
satisfaction of either the physical education course requirements for
graduation from high school pursuant to Section 51225.3 or the
number of minutes of instruction in physical education required
pursuant to Section 51210, 51222, or 51223, as applicable.
  SEC. 45.  Section 46300 of the Education Code is amended to read:
   46300.  (a) In computing average daily attendance of a school
district or county office of education, there shall be included the
attendance of pupils while engaged in educational activities required
of those pupils and under the immediate supervision and control of
an employee of the district or county office who possessed a valid
certification document, registered as required by law.
   (b) (1) For purposes of a work experience education program in a
secondary school that meets the standards of the California State
Plan for Career Technical Education, "immediate supervision," in the
context of off-campus work training stations, means pupil
participation in on-the-job training as outlined under a training
agreement, coordinated by the school district under a state-approved
plan, wherein the employer and certificated school personnel share
the responsibility for on-the-job supervision.
   (2) The pupil-teacher ratio in a work experience program shall not
exceed 125 pupils per full-time equivalent certificated teacher
coordinator. This ratio may be waived by the state board pursuant to
Article 3 (commencing with Section 33050) of Chapter 1 of Part 20 of
Division 2 under criteria developed by the state board.
   (3) A pupil enrolled in a work experience program shall not be
credited with more than one day of attendance per calendar day, and
shall be a full-time pupil enrolled in regular classes that meet the
requirements of Section 46141 or 46144.
   (c) (1) For purposes of the rehabilitative schools, classes, or
programs described in Section 48917 that require immediate
supervision, "immediate supervision" means that the person to whom
the pupil is required to report for training, counseling, tutoring,
or other prescribed activity shares the responsibility for the
supervision of the pupils in the rehabilitative activities with
certificated personnel of the district.
   (2) A pupil enrolled in a rehabilitative school, class, or program
shall not be credited with more than one day of attendance per
calendar day.
   (d) (1) For purposes of computing the average daily attendance of
pupils engaged in the educational activities required of high school
pupils who are also enrolled in a regional occupational center or
regional occupational program, the school district shall receive
proportional average daily attendance credit for those educational
activities that are less than the minimum schoolday, pursuant to
regulations adopted by the state board; however, none of that
attendance shall be counted for purposes of computing attendance
pursuant to Section 52324.
   (2) A school district shall not receive proportional average daily
attendance credit pursuant to this subdivision for a pupil in
attendance for less than 145 minutes each day.
   (3) The divisor for computing proportional average daily
attendance pursuant to this subdivision is 240, except that, in the
case of a pupil excused from physical education classes pursuant to
Section 52316, the divisor is 180.
   (4) Notwithstanding any other provision of law, travel time of
pupils to attend a regional occupational center or regional
occupational program shall not be used in any manner in the
computation of average daily attendance.
   (e) (1) In computing the average daily attendance of a school
district, there shall also be included the attendance of pupils
participating in independent study conducted pursuant to Article 5.5
(commencing with Section 51745) of Chapter 5 of Part 28 for five or
more consecutive schooldays.
   (2) A pupil participating in independent study shall not be
credited with more than one day of attendance per calendar day.
   (f) For purposes of cooperative career technical education
programs and community classrooms described in Section 52372.1,
"immediate supervision" means pupil participation in paid and unpaid
on-the-job experiences, as outlined under a training agreement and
individualized training plans wherein the supervisor of the training
site and certificated school personnel share the responsibility for
the supervision of on-the-job experiences.
   (g) In computing the average daily attendance of a school
district, there shall be included the attendance of pupils in
kindergarten after they have completed one school year in
kindergarten only if the school district has on file for each of
those pupils an agreement made pursuant to Section 48011, approved in
form and content by the department and signed by the pupil's parent
or guardian, that the pupil may continue in kindergarten for not more
than one additional school year.
  SEC. 46.  Section 47605 of the Education Code is amended to read:
   47605.  (a) (1) Except as set forth in paragraph (2), a petition
for the establishment of a charter school within a school district
may be circulated by one or more persons seeking to establish the
charter school. A petition for the establishment of a charter school
shall identify a single charter school that will operate within the
geographic boundaries of that school district. A charter school may
propose to operate at multiple sites within the school district, as
long as each location is identified in the charter school petition.
The petition may be submitted to the governing board of the school
district for review after either of the following conditions are met:

   (A) The petition has been signed by a number of parents or legal
guardians of pupils that is equivalent to at least one-half of the
number of pupils that the charter school estimates will enroll in the
school for its first year of operation.
   (B) The petition has been signed by a number of teachers that is
equivalent to at least one-half of the number of teachers that the
charter school estimates will be employed at the school during its
first year of operation.
   (2) A petition that proposes to convert an existing public school
to a charter school that would not be eligible for a loan pursuant to
subdivision (b) of Section 41365 may be circulated by one or more
persons seeking to establish the charter school. The petition may be
submitted to the governing board of the school district for review
after the petition has been signed by not less than 50 percent of the
permanent status teachers currently employed at the public school to
be converted.
   (3) A petition shall include a prominent statement that a
signature on the petition means that the parent or legal guardian is
meaningfully interested in having his or her child or ward attend the
charter school, or in the case of a teacher's signature, means that
the teacher is meaningfully interested in teaching at the charter
school. The proposed charter shall be attached to the petition.
   (4) After receiving approval of its petition, a charter school
that proposes to establish operations at one or more additional sites
shall request a material revision to its charter and shall notify
the authority that granted its charter of those additional locations.
The authority that granted its charter shall consider whether to
approve those additional locations at an open, public meeting. If the
additional locations are approved, they shall be a material revision
to the charter school's charter.
   (5) A charter school that is unable to locate within the
jurisdiction of the chartering school district may establish one site
outside the boundaries of the school district, but within the county
in which that school district is located, if the school district
within the jurisdiction of which the charter school proposes to
operate is notified in advance of the charter petition approval, the
county superintendent of schools and the Superintendent are notified
of the location of the charter school before it commences operations,
and either of the following circumstances exist:
   (A) The school has attempted to locate a single site or facility
to house the entire program, but a site or facility is unavailable in
the area in which the school chooses to locate.
   (B) The site is needed for temporary use during a construction or
expansion project.
   (6) Commencing January 1, 2003, a petition to establish a charter
school may not be approved to serve pupils in a grade level that is
not served by the school district of the governing board considering
the petition, unless the petition proposes to serve pupils in all of
the grade levels served by that school district.
   (b) No later than 30 days after receiving a petition, in
accordance with subdivision (a), the governing board of the school
district shall hold a public hearing on the provisions of the
charter, at which time the governing board of the school district
shall consider the level of support for the petition by teachers
employed by the district, other employees of the district, and
parents. Following review of the petition and the public hearing, the
governing board of the school district shall either grant or deny
the charter within 60 days of receipt of the petition, provided,
however, that the date may be extended by an additional 30 days if
both parties agree to the extension. In reviewing petitions for the
establishment of charter schools pursuant to this section, the
chartering authority shall be guided by the intent of the Legislature
that charter schools are and should become an integral part of the
California educational system and that establishment of charter
schools should be encouraged. The governing board of the school
district shall grant a charter for the operation of a school under
this part if it is satisfied that granting the charter is consistent
with sound educational practice. The governing board of the school
district shall not deny a petition for the establishment of a charter
school unless it makes written factual findings, specific to the
particular petition, setting forth specific facts to support one or
more of the following findings:
   (1) The charter school presents an unsound educational program for
the pupils to be enrolled in the charter school.
   (2) The petitioners are demonstrably unlikely to successfully
implement the program set forth in the petition.
   (3) The petition does not contain the number of signatures
required by subdivision (a).
   (4) The petition does not contain an affirmation of each of the
conditions described in subdivision (d).
   (5) The petition does not contain reasonably comprehensive
descriptions of all of the following:
   (A) (i) A description of the educational program of the school,
designed, among other things, to identify those whom the school is
attempting to educate, what it means to be an "educated person" in
the 21st century, and how learning best occurs. The goals identified
in that program shall include the objective of enabling pupils to
become self-motivated, competent, and lifelong learners.
   (ii) If the proposed school will serve high school pupils, a
description of the manner in which the charter school will inform
parents about the transferability of courses to other public high
schools and the eligibility of courses to meet college entrance
requirements. Courses offered by the charter school that are
accredited by the Western Association of Schools and Colleges may be
considered transferable and courses approved by the University of
California or the California State University as creditable under the
"A" to "G" admissions criteria may be considered to meet college
entrance requirements.
   (B) The measurable pupil outcomes identified for use by the
charter school. "Pupil outcomes," for purposes of this part, means
the extent to which all pupils of the school demonstrate that they
have attained the skills, knowledge, and attitudes specified as goals
in the school's educational program.
   (C) The method by which pupil progress in meeting those pupil
outcomes is to be measured.
   (D) The governance structure of the school, including, but not
limited to, the process to be followed by the school to ensure
parental involvement.
   (E) The qualifications to be met by individuals to be employed by
the school.
   (F) The procedures that the school will follow to ensure the
health and safety of pupils and staff. These procedures shall include
the requirement that each employee of the school furnish the school
with a criminal record summary as described in Section 44237.
   (G) The means by which the school will achieve a racial and ethnic
balance among its pupils that is reflective of the general
population residing within the territorial jurisdiction of the school
district to which the charter petition is submitted.
   (H) Admission requirements, if applicable.
   (I) The manner in which annual, independent financial audits shall
be conducted, which shall employ generally accepted accounting
principles, and the manner in which audit exceptions and deficiencies
shall be resolved to the satisfaction of the chartering authority.
   (J) The procedures by which pupils can be suspended or expelled.
   (K) The manner by which staff members of the charter schools will
be covered by the State Teachers' Retirement System, the Public
Employees' Retirement System, or federal social security.
   (L) The public school attendance alternatives for pupils residing
within the school district who choose not to attend charter schools.
   (M) A description of the rights of any employee of the school
district upon leaving the employment of the school district to work
in a charter school, and of any rights of return to the school
district after employment at a charter school.
   (N) The procedures to be followed by the charter school and the
entity granting the charter to resolve disputes relating to
provisions of the charter.
   (O) A declaration whether or not the charter school shall be
deemed the exclusive public school employer of the employees of the
charter school for the purposes of Chapter 10.7 (commencing with
Section 3540) of Division 4 of Title 1 of the Government Code.
   (P) A description of the procedures to be used if the charter
school closes. The procedures shall ensure a final audit of the
school to determine the disposition of all assets and liabilities of
the charter school, including plans for disposing of any net assets
and for the maintenance and transfer of pupil records.
   (c) (1) Charter schools shall meet all statewide standards and
conduct the pupil assessments required pursuant to Sections 60605 and
60851 and any other statewide standards authorized in statute or
pupil assessments applicable to pupils in noncharter public schools.
   (2) Charter schools shall, on a regular basis, consult with their
parents, legal guardians, and teachers regarding the school's
educational programs.
   (d) (1) In addition to any other requirement imposed under this
part, a charter school shall be nonsectarian in its programs,
admission policies, employment practices, and all other operations,
shall not charge tuition, and shall not discriminate against any
pupil on the basis of the characteristics listed in Section 220.
Except as provided in paragraph (2), admission to a charter school
shall not be determined according to the place of residence of the
pupil, or of his or her parent or legal guardian, within this state,
except that an existing public school converting partially or
entirely to a charter school under this part shall adopt and maintain
a policy giving admission preference to pupils who reside within the
former attendance area of that public school.
   (2) (A) A charter school shall admit all pupils who wish to attend
the school.
   (B) However, if the number of pupils who wish to attend the
charter school exceeds the school's capacity, attendance, except for
existing pupils of the charter school, shall be determined by a
public random drawing. Preference shall be extended to pupils
currently attending the charter school and pupils who reside in the
district except as provided for in Section 47614.5. Other preferences
may be permitted by the chartering authority on an individual school
basis and only if consistent with the law.
   (C) In the event of a drawing, the chartering authority shall make
reasonable efforts to accommodate the growth of the charter school
and in no event shall take any action to impede the charter school
from expanding enrollment to meet pupil demand.
   (3) If a pupil is expelled or leaves the charter school without
graduating or completing the school year for any reason, the charter
school shall notify the superintendent of the school district of the
pupil's last known address within 30 days, and shall, upon request,
provide that school district with a copy of the cumulative record of
the pupil, including a transcript of grades or report card, and
health information. This paragraph applies only to pupils subject to
compulsory full-time education pursuant to Section 48200.
   (e) The governing board of a school district shall not require any
employee of the school district to be employed in a charter school.
   (f) The governing board of a school district shall not require any
pupil enrolled in the school district to attend a charter school.
   (g) The governing board of a school district shall require that
the petitioner or petitioners provide information regarding the
proposed operation and potential effects of the school, including,
but not limited to, the facilities to be utilized by the school, the
manner in which administrative services of the school are to be
provided, and potential civil liability effects, if any, upon the
school and upon the school district. The description of the
facilities to be used by the charter school shall specify where the
school intends to locate. The petitioner or petitioners shall also be
required to provide financial statements that include a proposed
first-year operational budget, including startup costs, and cashflow
and financial projections for the first three years of operation.
   (h) In reviewing petitions for the establishment of charter
schools within the school district, the governing board of the school
district shall give preference to petitions that demonstrate the
capability to provide comprehensive learning experiences to pupils
identified by the petitioner or petitioners as academically low
achieving pursuant to the standards established by the department
under Section 54032 as it read prior to July 19, 2006.
   (i) Upon the approval of the petition by the governing board of
the school district, the petitioner or petitioners shall provide
written notice of that approval, including a copy of the petition, to
the applicable county superintendent of schools, the department, and
the state board.
   (j) (1) If the governing board of a school district denies a
petition, the petitioner may elect to submit the petition for the
establishment of a charter school to the county board of education.
The county board of education shall review the petition pursuant to
subdivision (b). If the petitioner elects to submit a petition for
establishment of a charter school to the county board of education
and the county board of education denies the petition, the petitioner
may file a petition for establishment of a charter school with the
state board, and the state board may approve the petition, in
accordance with subdivision (b). A charter school that receives
approval of its petition from a county board of education or from the
state board on appeal shall be subject to the same requirements
concerning geographic location to which it would otherwise be subject
if it received approval from the entity to which it originally
submitted its petition. A charter petition that is submitted to
either a county board of education or to the state board shall meet
all otherwise applicable petition requirements, including the
identification of the proposed site or sites where the charter school
will operate.
   (2) In assuming its role as a chartering agency, the state board
shall develop criteria to be used for the review and approval of
charter school petitions presented to the state board. The criteria
shall address all elements required for charter approval, as
identified in subdivision (b) and shall define "reasonably
comprehensive" as used in paragraph (5) of subdivision (b) in a way
that is consistent with the intent of this part. Upon satisfactory
completion of the criteria, the state board shall adopt the criteria
on or before June 30, 2001.
   (3) A charter school for which a charter is granted by either the
county board of education or the state board based on an appeal
pursuant to this subdivision shall qualify fully as a charter school
for all funding and other purposes of this part.
   (4) If either the county board of education or the state board
fails to act on a petition within 120 days of receipt, the decision
of the governing board of the school district to deny a petition
shall, thereafter, be subject to judicial review.
   (5) The state board shall adopt regulations implementing this
subdivision.
   (6) Upon the approval of the petition by the county board of
education, the petitioner or petitioners shall provide written notice
of that approval, including a copy of the petition to the department
and the state board.
   (k) (1) The state board may, by mutual agreement, designate its
supervisorial and oversight responsibilities for a charter school
approved by the state board to any local educational agency in the
county in which the charter school is located or to the governing
board of the school district that first denied the petition.
   (2) The designated local educational agency shall have all
monitoring and supervising authority of a chartering agency,
including, but not limited to, powers and duties set forth in Section
47607, except the power of revocation, which shall remain with the
state board.
   (3) A charter school that has been granted its charter through an
appeal to the state board and elects to seek renewal of its charter
shall, prior to expiration of the charter, submit its petition for
renewal to the governing board of the school district that initially
denied the charter. If the governing board of the school district
denies the school's petition for renewal, the school may petition the
state board for renewal of its charter.
   () Teachers in charter schools shall hold a Commission on Teacher
Credentialing certificate, permit, or other document equivalent to
that which a teacher in other public schools would be required to
hold. These documents shall be maintained on file at the charter
school and are subject to periodic inspection by the chartering
authority. It is the intent of the Legislature that charter schools
be given flexibility with regard to noncore, noncollege preparatory
courses.
   (m) A charter school shall transmit a copy of its annual,
independent financial audit report for the preceding fiscal year, as
described in subparagraph (I) of paragraph (5) of subdivision (b), to
its chartering entity, the Controller, the county superintendent of
schools of the county in which the charter school is sited, unless
the county board of education of the county in which the charter
school is sited is the chartering entity, and the department by
December 15 of each year. This subdivision does not apply if the
audit of the charter school is encompassed in the audit of the
chartering entity pursuant to Section 41020.
  SEC. 47.  Section 48980 of the Education Code is amended to read:
   48980.  (a) At the beginning of the first semester or quarter of
the regular school term, the governing board of each school district
shall notify the parent or guardian of a minor pupil regarding the
right or responsibility of the parent or guardian under Sections
35291, 46014, 48205, 48207, 48208, 49403, 49423, 49451, 49472, and
51938 and Chapter 2.3 (commencing with Section 32255) of Part 19 of
Division 1 of Title 1.
   (b) The notification also shall advise the parent or guardian of
the availability of individualized instruction as prescribed by
Section 48206.3, and of the program prescribed by Article 9
(commencing with Section 49510) of Chapter 9.
   (c) The notification also shall advise the parents and guardians
of all pupils attending a school within the school district of the
schedule of minimum days and pupil-free staff development days, and
if minimum or pupil-free staff development days are scheduled
thereafter, the governing board of the district shall notify parents
and guardians of the affected pupils as early as possible, but not
later than one month before the scheduled minimum or pupil-free day.
   (d) The notification also may advise the parent or guardian of the
importance of investing for future college or university education
for their children and of considering appropriate investment options,
including, but not limited to, United States savings bonds.
   (e) The notification shall advise the parent or guardian of the
pupil that each pupil completing grade 12 is required to successfully
pass the high school exit examination administered pursuant to
Chapter 9 (commencing with Section 60850) of Part 33. The
notification shall include, at a minimum, the date of the
examination, the requirements for passing the examination, and shall
inform the parents and guardians regarding the consequences of not
passing the examination and shall inform parents and guardians that
passing the examination is a condition of graduation.
   (f) Each school district that elects to provide a fingerprinting
program pursuant to Article 10 (commencing with Section 32390) of
Chapter 3 of Part 19 of Division 1 of Title 1 shall inform parents or
guardians of the program as specified in Section 32390.
   (g) The notification also shall include a copy of the written
policy of the school district on sexual harassment established
pursuant to Section 231.5, as it relates to pupils.
   (h) The notification shall advise the parent or guardian of all
existing statutory attendance options and local attendance options
available in the school district. This notification component shall
include all options for meeting residency requirements for school
attendance, programmatic options offered within the local attendance
areas, and any special programmatic options available on both an
interdistrict and intradistrict basis. This notification component
also shall                                            include a
description of all options, a description of the procedure for
application for alternative attendance areas or programs, an
application form from the district for requesting a change of
attendance, and a description of the appeals process available, if
any, for a parent or guardian denied a change of attendance. The
notification component also shall include an explanation of the
existing statutory attendance options, including, but not limited to,
those available under Section 35160.5, Chapter 5 (commencing with
Section 46600) of Part 26, and subdivision (b) of Section 48204. The
department shall produce this portion of the notification and shall
distribute it to all school districts.
   (i) It is the intent of the Legislature that the governing board
of each school district annually review the enrollment options
available to the pupils within its district and that the districts
strive to make available enrollment options that meet the diverse
needs, potential, and interests of the pupils of California.
   (j) The notification shall advise the parent or guardian that a
pupil shall not have his or her grade reduced or lose academic credit
for any absence or absences excused pursuant to Section 48205 if
missed assignments and tests that can reasonably be provided are
satisfactorily completed within a reasonable period of time, and
shall include the full text of Section 48205.
   (k) The notification shall advise the parent or guardian of the
availability of state funds to cover the costs of advanced placement
examination fees pursuant to Section 52244.
   (l) The notification to the parent or guardian of a minor pupil
enrolled in any of grades 9 to 12, inclusive, also shall include the
information required pursuant to Section 51229.
  SEC. 48.  Section 49423.5 of the Education Code is amended to read:

   49423.5.  (a) Notwithstanding Section 49422, an individual with
exceptional needs who requires specialized physical health care
services, during the regular schoolday, may be assisted by any of the
following individuals:
   (1) Qualified persons who possess an appropriate credential issued
pursuant to Section 44267 or 44267.5, or hold a valid certificate of
public health nursing issued by the Board of Registered Nursing.
   (2) Qualified designated school personnel trained in the
administration of specialized physical health care if they perform
those services under the supervision, as defined by Section 3051.12
of Title 5 of the California Code of Regulations, of a credentialed
school nurse, public health nurse, or licensed physician and surgeon
and the services are determined by the credentialed school nurse or
licensed physician and surgeon, in consultation with the physician
treating the pupil, to be all of the following:
   (A) Routine for the pupil.
   (B) Pose little potential harm for the pupil.
   (C) Performed with predictable outcomes, as defined in the
individualized education program of the pupil.
   (D) Do not require a nursing assessment, interpretation, or
decisionmaking by the designated school personnel.
   (b) Specialized health care or other services that require
medically related training shall be provided pursuant to the
procedures prescribed by Section 49423.
   (c) Persons providing specialized physical health care services
shall also demonstrate competence in basic cardiopulmonary
resuscitation and shall be knowledgeable of the emergency medical
resources available in the community in which the services are
performed.
   (d) "Specialized physical health care services," as used in this
section, includes catheterization, gastric tube feeding, suctioning,
or other services that require medically related training.
   (e) Regulations necessary to implement this section shall be
developed jointly by the State Department of Education and the State
Department of Health Care Services, and adopted by the state board.
   (f) This section does not diminish or weaken any federal
requirement for serving individuals with exceptional needs under the
Individuals with Disabilities Education Act (20 U.S.C. Sec. 1400 et
seq.), and its implementing regulations, and under Section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. Sec. 794) and its implementing
regulations.
   (g) This section does not affect current state law or regulation
regarding medication administration.
   (h) It is the intent of the Legislature that this section not
cause individuals with exceptional needs to be placed at schoolsites
other than those they would attend but for their needs for
specialized physical health care services.
  SEC. 49.  Section 49431.7 of the Education Code is amended to read:

   49431.7.  (a) Commencing on July 1, 2009, a school or school
district, through a vending machine or school food service
establishment during school hours and one-half of an hour before and
after school hours, shall not make available to pupils enrolled in
kindergarten, or any of grades 1 to 12, inclusive, food containing
artificial trans fat, as defined in subdivision (b), or use food
containing artificial trans fat in the preparation of a food item
served to those pupils.
   (b) For purposes of this section, a food contains artificial trans
fat if a food contains vegetable shortening, margarine, or any kind
of partially hydrogenated vegetable oil, unless the manufacturer's
documentation or the label required on the food, pursuant to
applicable federal and state law, lists the trans fat content as less
than 0.5 grams of trans fat per serving.
   (c) For purposes of this section, "school food service
establishment" means a place that regularly sells or serves a food
item or meal on a school campus.
   (d) This section does not apply to food provided as part of a USDA
meal program.
  SEC. 50.  Section 51228 of the Education Code is amended to read:
   51228.  (a) Each school district maintaining any of grades 7 to
12, inclusive, shall offer to all otherwise qualified pupils in those
grades a course of study fulfilling the requirements and
prerequisites for admission to the California public institutions of
postsecondary education and shall provide a timely opportunity to
each of those pupils to enroll within a four-year period in each
course necessary to fulfill those requirements and prerequisites
prior to graduation from high school.
   (b) Each school district maintaining any of grades 7 to 12,
inclusive, shall offer to all otherwise qualified pupils in those
grades a course of study that provides an opportunity for those
pupils to attain entry-level employment skills in business or
industry upon graduation from high school. Districts are encouraged
to provide all pupils with a rigorous academic curriculum that
integrates academic and career skills, incorporates applied learning
in all disciplines, and prepares all pupils for high school
graduation and career entry.
   (c) A school district that adopts a required curriculum that meets
or exceeds the model standards developed and adopted by the state
board pursuant to Section 51226 shall be deemed to have fulfilled its
responsibilities pursuant to subdivision (b).
   (d) A school district that adopts a required curriculum pursuant
to subdivision (c) that meets or exceeds the model standards
developed by the state board pursuant to Section 51226, or that
adopts alternative means for pupils to complete the prescribed course
of study pursuant to subdivision (b) of Section 51225.3, may
substitute pupil demonstration of competence in the prescribed
subjects through a practical demonstration of these skills in a
regional occupational center or program, work experience,
interdisciplinary study, independent study, credit earned at a
postsecondary institution, or other outside school experience, as
prescribed by Section 51225.3.
  SEC. 51.  Section 52244 of the Education Code is amended to read:
   52244.  (a) There is hereby established a grant program for the
purpose of awarding grants to cover the costs of advanced placement
fees or International Baccalaureate examination fees, or both, for
eligible economically disadvantaged high school pupils. The
department shall administer this program.
   (b) An "eligible economically disadvantaged high school pupil"
means a pupil who is either from a family whose annual household
income is below 200 percent of the federal poverty level or a pupil
who is eligible for a federal free or reduced-price meal program.
   (c) A school district may apply to the department for grant
funding pursuant to this section, based on the number of economically
disadvantaged pupils in the district enrolled in advanced placement
courses who will take the next offered advanced placement
examinations. A school district that applies to the department for
this purpose shall designate school district staff to whom pupils may
submit applications for grants and shall institute a plan to notify
pupils of the availability of financial assistance pursuant to this
section. Grants shall be expended only to pay the fees required of
eligible economically disadvantaged high school pupils to take an
advanced placement or International Baccalaureate examination, or
both.
   (d) An eligible economically disadvantaged high school pupil who
is enrolled in an advanced placement or International Baccalaureate
course, or both, may apply to the designated school district staff
for a grant pursuant to this section. A pupil who receives a grant
shall pay five dollars ($5) of the examination fee.
   (e) School districts and county superintendents of schools may
join together and form collaboratives or consortia in order to
participate in the grant program established by this section.
   (f) Grants provided pursuant to this section may not be used to
supplant fee waivers available to low-income pupils who take advanced
placement or International Baccalaureate examinations.
   (g) If the total school district applications exceed the total
funds available pursuant to this section, the department shall
prorate the grants based upon the ratio of the total amount requested
to the total amount budgeted by the state for this purpose. Funding
priority shall be given to advanced placement examination fees if
there is insufficient funding allocated for the grant program in a
given fiscal year.
   (h) To facilitate program administration and school district
reimbursement, the department may enter into a contract with the
provider of advanced placement or International Baccalaureate
examinations. For purposes of the contract authorized pursuant to
this subdivision, the department is exempt from the requirements of
Part 2 (commencing with Section 10100) of Division 2 of the Public
Contract Code and from the requirements of Article 6 (commencing with
Section 999) of Chapter 6 of Division 4 of the Military and Veterans
Code.
   (i) The department shall make every effort to obtain and allocate
federal funding for the purposes of this program prior to expending
any state funds. All state and federal funds obtained by the
department for the purposes of this program shall be expended for
these purposes only and are prohibited from being used to fund any
other program.
   (j) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.
  SEC. 52.  Section 52499.66 of the Education Code is amended to
read:
   52499.66.  (a) The department shall be responsible for the
creation, as set forth in subdivision (b), of comprehensive, easy to
access, user-friendly Internet Web site pages with information about
opportunities and programs available in the state on career technical
education in elementary and secondary schools.
   (b) (1) By July 1, 2008, the department shall select, on a
competitive basis, an elementary or secondary school career technical
education program for pupils to develop the Internet Web site pages
as part of a career technical education course of study related to
technology and Internet Web site development. The program may be part
of a school district or regional occupational center or program
course of study.
   (2) The department shall establish criteria and parameters for the
content of the Internet Web site pages and shall provide guidance to
the selected career technical education design process. The
department periodically shall review the work of the design process
to ensure that all the criteria and legal considerations are being
met. By July 1, 2009, the selected program shall complete the
Internet Web site pages development project.
   (3) By January 1, 2010, the Internet Web site pages on career
technical education required to be created pursuant to this section
shall be incorporated into the department's Internet Web site as an
integral part of the existing department Internet Web site.
   (4) The department shall establish criteria for the posting of
information and links on the Internet Web site and shall provide
ongoing Internet Web site administration and maintenance in keeping
with department policies. The department Internet Web site may
provide links to local and state public agencies, school districts,
regional occupational centers and programs, adult education programs,
and related career technical education programs in order for pupils,
parents, teachers, and the public to easily access information.
   (c) The career technical education Internet Web site pages created
pursuant to this section should provide pupils, parents, guardians,
teachers, counselors, administrators, business and industry, and
professional and trades representatives with information regarding
all of the following:
   (1) Career technical education programs, possible course
offerings, and graduation requirements.
   (2) High school career technical education skill certificates and
related postsecondary education, skill certificates, and
apprenticeship requirements and admissions information.
   (3) Best practices in elementary and secondary school career
technical education programs and examples of successful curriculum
and programs, including career technical education programs in high
schools and regional occupational centers and programs.
   (4) State and federal workforce statistical data and how-to-use
data tips for educators and advisory committees on career technical
education.
   (5) Access to information regarding business and industry programs
that may offer pupils and teachers support and internships or summer
work experience.
   (6) Professional and trades organizations that may be available to
offer pupils and teachers support and internships or summer work
experience.
   (7) Links to related resources.
   (8) Career technical education model curriculum standards to
assist local educational agencies in the development of sequences of
courses, skills certificates, and assessment tools.
   (9) Funding sources and ongoing state and federal program
guidelines, regulations, and funding opportunities.
   (d) The career technical education Internet Web site pages created
pursuant to this section shall allow for redirection to school
district and public career technical education program Internet Web
sites for more specific information about the availability of
elementary and secondary school programs for pupils and teachers and
to community college and other postsecondary opportunities.
  SEC. 53.  Section 52861 of the Education Code is amended to read:
   52861.  If a school district and school choose to include within
the provisions of this article funds allocated pursuant to Article 4
(commencing with Section 8750) of Chapter 4 of Part 6 of Division 1
of Title 1, Article 5 (commencing with Section 44520) of Chapter 3 of
Part 25 of Division 3 of this title, Article 15 (commencing with
Section 51870) of Chapter 5 of this part, and Article 2 (commencing
with Section 52340) of Chapter 9 of this part, and Chapter 1
(commencing with Section 500) of Part 2 of Division 2 of the Military
and Veterans Code, the district shall determine the portion of the
district's grants, pursuant to those provisions, which shall be
allocated to the school for inclusion in the school budget developed
pursuant to subdivision (f) of Section 52853.
  SEC. 54.  Section 52922 of the Education Code is amended to read:
   52922.  (a) From funds appropriated for the purpose of this
chapter, the Superintendent shall annually allocate to each school
district, on behalf of each high school or middle school within the
district that offers an International Baccalaureate Diploma Program,
the amount of up to twenty-five thousand dollars ($25,000) for each
participating high school and middle school to cover the ongoing
costs of professional development required by the program and to help
pay the test fees for low- and middle-income pupils in need of
financial assistance, in accordance with criteria adopted by the
Superintendent.
   (b) The amount provided in subdivision (a) shall be increased
annually by a cost-of-living adjustment, based on the same percentage
increase that is provided to the revenue limits of unified school
districts with 2,501 or more units of average daily attendance.
   (c) The total amount allocated pursuant to subdivision (a) shall
not exceed the total amount of the funds appropriated for those
purposes in the annual Budget Act or another statute. If funds are
insufficient to fully fund all grants authorized, annual grants shall
first be allocated pursuant to subdivision (a) to those schools that
were funded in the prior fiscal year and in the amount of the prior
fiscal year grant with second priority given to high schools and
middle schools that have the highest percentage of pupils from
low-income families.
  SEC. 55.  Section 56030 of the Education Code is amended to read:
   56030.  "Responsible local agency" means the school district or
county office of education designated in the local plan as the
administrative entity the duties of which shall include, but are not
limited to, receiving and distributing regionalized services funds,
providing administrative support, and coordinating the implementation
of the plan.
  SEC. 56.  Section 56300 of the Education Code is amended to read:
   56300.  A local educational agency shall actively and
systematically seek out all individuals with exceptional needs, from
birth to 21 years of age, inclusive, including children not enrolled
in public school programs, who reside in a school district or are
under the jurisdiction of a special education local plan area or a
county office of education.
  SEC. 57.  Section 56302 of the Education Code is amended to read:
   56302.  A local educational agency shall provide for the
identification and assessment of the exceptional needs of an
individual, and the planning of an instructional program to meet the
assessed needs. Identification procedures shall include systematic
methods of utilizing referrals of pupils from teachers, parents,
agencies, appropriate professional persons, and from other members of
the public. Identification procedures shall be coordinated with
schoolsite procedures for referral of pupils with needs that cannot
be met with modification of the regular instructional program.
  SEC. 58.  Section 56328 of the Education Code is amended to read:
   56328.  Notwithstanding the provisions of this chapter, a special
education local plan area may utilize a schoolsite level and a
regional level service, as provided for under Section 56336.2 as it
read prior to July 28, 1980, to provide the services required by this
chapter.
  SEC. 59.  Section 56331 of the Education Code is amended to read:
   56331.  (a) A pupil who is suspected of needing mental health
services may be referred to a community mental health service in
accordance with Section 7576 of the Government Code.
   (b) Prior to referring a pupil to a county mental health agency
for services, the local educational agency shall follow the
procedures set forth in Section 56320 and conduct an assessment in
accordance with Sections 300.301 to 300.306, inclusive, of Title 34
of the Code of Federal Regulations. If an individual with exceptional
needs is identified as potentially requiring mental health services,
the local educational agency shall request the participation of the
county mental health agency in the individualized education program.
A local educational agency shall provide any specially designed
instruction required by an individualized education program,
including related services such as counseling services, parent
counseling and training, psychological services, or social work
services in schools as defined in Section 300.34 of Title 34 of the
Code of Federal Regulations. If the individualized education program
of an individual with exceptional needs includes a functional
behavioral assessment and behavior intervention plan, in accordance
with Section 300.530 of Title 34 of the Code of Federal Regulations,
the local educational agency shall provide documentation upon
referral to a county mental health agency. Local educational agencies
shall provide related services, by qualified personnel, unless the
individualized education program team designates a more appropriate
agency for the provision of services. Local educational agencies and
community mental health services shall work collaboratively to ensure
that assessments performed prior to referral are as useful as
possible to the community mental health service agency in determining
the need for mental health services and the level of services
needed.
  SEC. 60.  Section 56341.1 of the Education Code is amended to read:

   56341.1.  (a) When developing each pupil's individualized
education program, the individualized education program team shall
consider the following:
   (1) The strengths of the pupil.
   (2) The concerns of the parents or guardians for enhancing the
education of the pupil.
   (3) The results of the initial assessment or most recent
assessment of the pupil.
   (4) The academic, developmental, and functional needs of the
child.
   (b) The individualized education program team shall do the
following:
   (1) In the case of a pupil whose behavior impedes his or her
learning or that of others, consider the use of positive behavioral
interventions and supports, and other strategies, to address that
behavior.
   (2) In the case of a pupil with limited English proficiency,
consider the language needs of the pupil as those needs relate to the
pupil's individualized education program.
   (3) In the case of a pupil who is blind or visually impaired,
provide for instruction in braille, and the use of braille, unless
the individualized education program team determines, after an
assessment of the pupil's reading and writing skills, needs, and
appropriate reading and writing media, including an assessment of the
pupil's future needs for instruction in braille or the use of
braille, that instruction in braille or the use of braille is not
appropriate for the pupil.
   (4) Consider the communication needs of the pupil, and in the case
of a pupil who is deaf or hard of hearing, consider the pupil's
language and communication needs, opportunities for direct
communications with peers and professional personnel in the pupil's
language and communication mode, academic level, and full range of
needs, including opportunities for direct instruction in the pupil's
language and communication mode.
   (5) Consider whether the pupil requires assistive technology
devices and services as defined in Section 1401(1) and (2) of Title
20 of the United States Code.
   (c) If, in considering the special factors described in
subdivisions (a) and (b), the individualized education program team
determines that a pupil needs a particular device or service,
including an intervention, accommodation, or other program
modification, in order for the pupil to receive a free appropriate
public education, the individualized education program team shall
include a statement to that effect in the pupil's individualized
education program.
   (d) The individualized education program team shall review the
pupil's individualized education program periodically, but not less
frequently than annually, to determine whether the annual goals for
the pupil are being achieved, and revise the individualized education
program, as appropriate, to address among other matters the
following:
   (1) A lack of expected progress toward the annual goals and in the
general education curriculum, where appropriate.
   (2) The results of any reassessment conducted pursuant to Section
56381.
   (3) Information about the pupil provided to, or by, the parents or
guardians, as described in subdivision (b) of Section 56381.
   (4) The pupil's anticipated needs.
   (5)  Any other relevant matter.
   (e) A regular education teacher of the pupil, who is a member of
the individualized education program team, shall participate,
consistent with Section 1414(d)(1)(C) of Title 20 of the United
States Code, in the review and revision of the individualized
education program of the pupil.
   (f) The parent or guardian shall have the right to present
information to the individualized education program team in person or
through a representative and the right to participate in meetings,
relating to eligibility for special education and related services,
recommendations, and program planning.
   (g) (1) Notwithstanding Section 632 of the Penal Code, the parent
or guardian or local educational agency shall have the right to
record electronically the proceedings of individualized education
program team meetings on an audiotape recorder. The parent or
guardian or local educational agency shall notify the members of the
individualized education program team of his, her, or its intent to
record a meeting at least 24 hours prior to the meeting. If the local
educational agency initiates the notice of intent to audiotape
record a meeting and the parent or guardian objects or refuses to
attend the meeting because it will be tape recorded, the meeting
shall not be recorded on an audiotape recorder.
   (2) The Legislature hereby finds as follows:
   (A) Under federal law, audiotape recordings made by a local
educational agency are subject to the federal Family Educational
Rights and Privacy Act of 1974 (20 U.S.C. Sec. 1232g), and are
subject to the confidentiality requirements of the regulations under
Sections 300.610 to 300.626, inclusive, of Part 34 of the Code of
Federal Regulations.
   (B) Parents or guardians have the right, pursuant to Sections
99.10 to 99.22, inclusive, of Title 34 of the Code of Federal
Regulations, to do all of the following:
   (i) Inspect and review the tape recordings.

    (ii) Request that the tape recordings be amended if the parent or
guardian believes that they contain information that is inaccurate,
misleading, or in violation of the rights of privacy or other rights
of the individual with exceptional needs.
   (iii) Challenge, in a hearing, information that the parent or
guardian believes is inaccurate, misleading, or in violation of the
individual's rights of privacy or other rights.
   (h) It is the intent of the Legislature that the individualized
education program team meetings be nonadversarial and convened solely
for the purpose of making educational decisions for the good of the
individual with exceptional needs.
  SEC. 61.  Section 56342.1 of the Education Code is amended to read:

   56342.1.  Before a local educational agency places an individual
with exceptional needs in, or refers an individual to, a nonpublic,
nonsectarian school pursuant to Section 56365, the district, special
education local plan area, or county office of education shall
initiate and conduct a meeting to develop an individualized education
program in accordance with Sections 56341.1 and 56345 and in
accordance with Section 300.325(a) of Title 34 of the Code of Federal
Regulations.
  SEC. 62.  Section 56363.5 of the Education Code is amended to read:

   56363.5.  Local educational agencies may seek, either directly or
through the pupil's parents or guardians, reimbursement from
insurance companies to cover the costs of related services, in
accordance with Section 300.154(d) to (h), inclusive, of the Code of
Federal Regulations.
  SEC. 63.  Section 56366.1 of the Education Code is amended to read:

   56366.1.  (a) A nonpublic, nonsectarian school or agency that
seeks certification shall file an application with the Superintendent
on forms provided by the department and include the following
information on the application:
   (1) A description of the special education and designated
instruction and services provided to individuals with exceptional
needs if the application is for nonpublic, nonsectarian school
certification.
   (2) A description of the designated instruction and services
provided to individuals with exceptional needs if the application is
for nonpublic, nonsectarian agency certification.
   (3) A list of appropriately qualified staff, a description of the
credential, license, or registration that qualifies each staff member
rendering special education or designated instruction and services
to do so, and copies of their credentials, licenses, or certificates
of registration with the appropriate state or national organization
that has established standards for the service rendered.
   (4) An annual operating budget.
   (5) Affidavits and assurances necessary to comply with all
applicable federal, state, and local laws and regulations that
include criminal record summaries required of all nonpublic,
nonsectarian school or agency personnel having contact with minor
children under Section 44237.
   (b) (1) The applicant shall provide the special education local
plan area in which the applicant is located with the written
notification of its intent to seek certification or renewal of its
certification. The applicant shall submit on a form, developed by the
department, a signed verification by local educational agency
representatives that they have been notified of the intent to certify
or renew certification. The verification shall include a statement
that representatives of the local educational agency for the area in
which the applicant is located have had the opportunity to review the
application at least 60 calendar days prior to submission of an
initial application to the Superintendent, or at least 30 calendar
days prior to submission of a renewal application to the
Superintendent. The signed verification shall provide assurances that
local educational agency representatives have had the opportunity to
provide input on all required components of the application.
   (2) If the applicant has not received a response from the local
educational agency 60 calendar days from the date of the return
receipt for initial applications or 30 calendar days from the date of
the return receipt for renewal applications, the applicant may file
the application with the Superintendent. A copy of the return receipt
shall be included with the application as verification of
notification efforts to the local educational agency.
   (3) The department shall mail renewal application materials to
certified nonpublic, nonsectarian schools and agencies at least 120
days prior to the date their current certification expires.
   (c) If the applicant operates a facility or program on more than
one site, each site shall be certified.
   (d) If the applicant is part of a larger program or facility on
the same site, the Superintendent shall consider the effect of the
total program on the applicant. A copy of the policies and standards
for the nonpublic, nonsectarian school or agency and the larger
program shall be available to the Superintendent.
   (e) Prior to certification, the Superintendent shall conduct an
onsite review of the facility and program for which the applicant
seeks certification. The Superintendent may be assisted by
representatives of the special education local plan area in which the
applicant is located and a nonpublic, nonsectarian school or agency
representative who does not have a conflict of interest with the
applicant. The Superintendent shall conduct an additional onsite
review of the facility and program within three years of the
effective date of the certification, unless the Superintendent
conditionally certifies the school or agency or unless the
Superintendent receives a formal complaint against the school or
agency. In the latter two cases, the Superintendent shall conduct an
onsite review at least annually.
   (f) The Superintendent shall make a determination on an
application within 120 days of receipt of the application and shall
certify, conditionally certify, or deny certification to the
applicant. If the Superintendent fails to take one of these actions
within 120 days, the applicant is automatically granted conditional
certification for a period terminating on August 31 of the current
school year. If certification is denied, the Superintendent shall
provide reasons for the denial. The Superintendent may certify the
school or agency for a period of not longer than one year.
   (g) Certification becomes effective on the date the nonpublic,
nonsectarian school or agency meets all the application requirements
and is approved by the Superintendent. Certification may be
retroactive if the school or agency met all the requirements of this
section on the date the retroactive certification is effective.
Certification expires on December 31 of the terminating year.
   (h) The Superintendent annually shall review the certification of
each nonpublic, nonsectarian school and agency. For this purpose, a
certified school or agency annually shall update its application
between August 1 and October 31, unless the board grants a waiver
pursuant to Section 56101. The Superintendent may conduct an onsite
review as part of the annual review.
   (i) (1) The Superintendent shall conduct an investigation of a
nonpublic, nonsectarian school or agency onsite at any time without
prior notice if there is substantial reason to believe that there is
an immediate danger to the health, safety, or welfare of a child. The
Superintendent shall document the concern and submit it to the
nonpublic, nonsectarian school or agency at the time of the onsite
investigation. The Superintendent shall require a written response to
any noncompliance or deficiency found.
   (2) With respect to a nonpublic, nonsectarian school, the
Superintendent shall conduct an investigation, which may include an
unannounced onsite visit, if the Superintendent receives evidence of
a significant deficiency in the quality of educational services
provided, a violation of Section 56366.9, or noncompliance with the
policies expressed by subdivision (b) of Section 1501 of the Health
and Safety Code by the nonpublic, nonsectarian school. The
Superintendent shall document the complaint and the results of the
investigation and shall provide copies of the documentation to the
complainant, the nonpublic, nonsectarian school, and the contracting
local educational agency.
   (3) Violations or noncompliance documented pursuant to paragraph
(1) or (2) shall be reflected in the status of the certification of
the school, at the discretion of the Superintendent, pending an
approved plan of correction by the nonpublic, nonsectarian school.
The department shall retain for a period of 10 years all violations
pertaining to certification of the nonpublic, nonsectarian school or
agency.
   (j) The Superintendent shall monitor the facilities, the
educational environment, and the quality of the educational program,
including the teaching staff, the credentials authorizing service,
the standards-based core curriculum being employed, and the
standard-focused instructional materials used, of an existing
certified nonpublic, nonsectarian school or agency on a three-year
cycle, as follows:
   (1) The nonpublic, nonsectarian school or agency shall complete a
self-review in year one.
   (2) The Superintendent shall conduct an onsite review of the
nonpublic, nonsectarian school or agency in year two.
   (3) The Superintendent shall conduct a followup visit to the
nonpublic, nonsectarian school or agency in year three.
   (k) (1) Notwithstanding any other provision of law, the
Superintendent shall not certify a nonpublic, nonsectarian school or
agency that proposes to initiate or expand services to pupils
currently educated in the immediate prior fiscal year in a juvenile
court program, community school pursuant to Section 56150, or other
nonspecial education program, including independent study or adult
school, or both, unless the nonpublic, nonsectarian school or agency
notifies the county superintendent of schools and the special
education local plan area in which the proposed new or expanded
nonpublic, nonsectarian school or agency is located of its intent to
seek certification.
   (2) The notification shall occur no later than the December 1
prior to the new fiscal year in which the proposed or expanding
school or agency intends to initiate services. The notice shall
include the following:
   (A) The specific date upon which the proposed nonpublic,
nonsectarian school or agency is to be established.
   (B) The location of the proposed program or facility.
   (C) The number of pupils proposed for services, the number of
pupils currently served in the juvenile court, community school, or
other nonspecial education program, the current school services
including special education and related services provided for these
pupils, and the specific program of special education and related
services to be provided under the proposed program.
   (D) The reason for the proposed change in services.
   (E) The number of staff who will provide special education and
designated instruction and services and hold a current valid
California credential or license in the service rendered.
   (3) In addition to the requirements in subdivisions (a) to (f),
inclusive, the Superintendent shall require and consider the
following in determining whether to certify a nonpublic, nonsectarian
school or agency as described in this subdivision:
   (A) A complete statement of the information required as part of
the notice under paragraph (1).
   (B) Documentation of the steps taken in preparation for the
conversion to a nonpublic, nonsectarian school or agency, including
information related to changes in the population to be served and the
services to be provided pursuant to each pupil's individualized
education program.
   (4) Notwithstanding any other provision of law, the certification
becomes effective no earlier than July 1 if the school or agency
provided the notification required pursuant to paragraph (1).
   () (1) Notwithstanding any other provision of law, the
Superintendent shall not certify or renew the certification of a
nonpublic, nonsectarian school or agency, unless all of the following
conditions are met:
   (A) The entity operating the nonpublic, nonsectarian school or
agency maintains separate financial records for each entity that it
operates, with each nonpublic, nonsectarian school or agency
identified separately from any licensed children's institution that
it operates.
   (B) The entity submits an annual budget that identifies the
projected costs and revenues for each entity and demonstrates that
the rates to be charged are reasonable to support the operation of
the entity.
   (C) The entity submits an entitywide annual audit that identifies
its costs and revenues, by entity, in accordance with generally
accepted accounting and auditing principles. The audit shall clearly
document the amount of moneys received and expended on the education
program provided by the nonpublic, nonsectarian school.
   (D) The relationship between various entities operated by the same
entity are documented, defining the responsibilities of the
entities. The documentation shall clearly identify the services to be
provided as part of each program, for example, the residential or
medical program, the mental health program, or the educational
program. The entity shall not seek funding from a public agency for a
service, either separately or as part of a package of services, if
the service is funded by another public agency, either separately or
as part of a package of services.
   (2) For purposes of this section, "licensed children's institution"
has the same meaning as it is defined by Section 56155.5.
   (m) The school or agency shall be charged a reasonable fee for
certification. The Superintendent may adjust the fee annually
commensurate with the statewide average percentage inflation
adjustment computed for revenue limits of unified school districts
with greater than 1,500 units of average daily attendance if the
percentage increase is reflected in the district revenue limit for
inflation purposes. For purposes of this section, the base fee shall
be the following:
      (1) 1-5 pupils................      $ 300
      (2) 6-10       pupils.........        500
      (3) 11-24 pupils..............      1,000
      (4) 25-75 pupils..............      1,500
      (5) 76 pupils and over........      2,000


   The school or agency shall pay this fee when it applies for
certification and when it updates its application for annual renewal
by the Superintendent. The Superintendent shall use these fees to
conduct onsite reviews, which may include field experts. No fee shall
be refunded if the application is withdrawn or is denied by the
Superintendent.
   (n) (1) Notwithstanding any other provision of law, only those
nonpublic, nonsectarian schools and agencies that provide special
education and designated instruction and services utilizing staff who
hold a certificate, permit, or other document equivalent to that
which staff in a public school are required to hold in the service
rendered are eligible to receive certification. Only those nonpublic,
nonsectarian schools or agencies located outside of California that
employ staff who hold a current valid credential or license to render
special education and related services as required by that state
shall be eligible to be certified.
   (2) The board shall develop regulations to implement this
subdivision.
   (o) In addition to meeting the standards adopted by the board, a
nonpublic, nonsectarian school or agency shall provide written
assurances that it meets all applicable standards relating to fire,
health, sanitation, and building safety.
  SEC. 64.  Section 56426.6 of the Education Code is amended to read:

   56426.6.  (a) Early education services shall be provided by a
local educational agency through a transdisciplinary team consisting
of a group of professionals from various disciplines, agencies, and
parents who shall share their expertise and services to provide
appropriate services for infants and their families. Each team member
shall be responsible for providing and coordinating early education
services for one or more infants and their families, and shall serve
as a consultant to other team members and as a provider of
appropriate related services to other infants in the program.
   (b) Credentialed personnel with expertise in vision or hearing
impairments shall be made available by the local educational agency
to early education programs serving infants identified in accordance
with subdivision (a), (b), or (d) of Section 3030 of Title 5 of the
California Code of Regulations, and shall be the primary providers of
services under those programs whenever possible.
   (c) Transdisciplinary teams may include, but need not be limited
to, qualified persons from the following disciplines:
   (1) Early childhood special education.
   (2) Speech and language therapy.
   (3) Nursing, with a skill level not less than that of a registered
nurse.
   (4) Social work, psychology, or mental health.
   (5) Occupational therapy.
   (6) Physical therapy.
   (7) Audiology.
   (8) Parent-to-parent support.
   (d) A person who is authorized by the local educational agency to
provide early education or related services to infants shall have
appropriate experience in normal and atypical infant development and
an understanding of the unique needs of families of infants with
exceptional needs, or, absent that experience and understanding,
shall undergo a comprehensive training plan for that purpose, which
plan shall be developed and implemented as part of the staff
development component of the local plan for early education services.

  SEC. 65.  Section 56431 of the Education Code is amended to read:
   56431.  The Superintendent shall develop procedures and criteria
to enable a local educational agency to contract with private
nonprofit preschools or child development centers to provide special
education and related services to infants and preschool age
individuals with exceptional needs. The criteria shall include
minimum standards that the private, nonprofit preschool or center
shall be required to meet.
  SEC. 66.  Section 56456 of the Education Code is amended to read:
   56456.  It is the intent of the Legislature that local educational
agencies may use any state or local special education funds for
approved vocational programs, services, and activities to satisfy the
excess cost-matching requirements for receipt of federal vocational
education funds for individuals with exceptional needs.
  SEC. 67.  Section 56476 of the Education Code is amended to read:
   56476.  The Governor or designee of the Governor, in accordance
with Section 1412(a)(12) of Title 20 of the United States Code and
Section 300.154 of Title 34 of the Code of Federal Regulations, shall
ensure that each agency under the Governor's jurisdiction enters
into an interagency agreement with the Superintendent to ensure that
all services that are needed to ensure a free appropriate public
education are provided.
  SEC. 68.  Section 56504 of the Education Code is amended to read:
   56504.  The parent shall have the right and opportunity to examine
all school records of his or her child and to receive copies
pursuant to this section and to Section 49065 within five business
days after the request is made by the parent, either orally or in
writing. The public agency shall comply with a request for school
records without unnecessary delay before any meeting regarding an
individualized education program or any hearing pursuant to Section
300.121, 300.301, 300.304, or 300.507 of Title 34 of the Code of
Federal Regulations or resolution session pursuant to Section 300.510
of Title 34 of the Code of Federal Regulations and in no case more
than five business days after the request is made orally or in
writing. The parent shall have the right to a response from the
public agency to reasonable requests for explanations and
interpretations of the records. If a school record includes
information on more than one pupil, the parents of those pupils have
the right to inspect and review only the information relating to
their child or to be informed of that specific information. A public
agency shall provide a parent, on request of the parent, a list of
the types and locations of school records collected, maintained, or
used by the agency. A public agency may charge no more than the
actual cost of reproducing the records, but if this cost effectively
prevents the parent from exercising the right to receive the copy or
copies, the copy or copies shall be reproduced at no cost.
  SEC. 69.  Section 56851 of the Education Code is amended to read:
   56851.  (a) In developing the individualized education program for
an individual residing in a state hospital who is eligible for
services under the federal Individuals with Disabilities Education
Act (20 U.S.C. Sec. 1400 et seq.), a state hospital shall include on
its interdisciplinary team a representative of the local educational
agency in which the state hospital is located, and the individual's
state hospital teacher, depending on whether the state hospital is
otherwise working with the local educational agency for the provision
of special education programs and related services to individuals
with exceptional needs residing in state hospitals. However, if a
district or special education local plan area that is required by
this section to provide a representative from the district or special
education local plan area does not do so, the county office of
education shall provide a representative.
   (b) The state hospital shall reimburse the local educational
agency for the costs, including salary, of providing the
representative.
   (c) Once the individual is enrolled in the community program, the
local educational agency providing special education shall be
responsible for reviewing and revising the individualized education
program with the participation of a representative of the state
hospital and the parent. The public agency responsible for the
individualized education program shall be responsible for all
individual protections, including notification and due process.
  SEC. 70.  Section 66018.55 of the Education Code is amended to
read:
   66018.55.  (a) As used in this section, "college and university"
includes all institutions of public higher education and all
independent institutions of higher education.
   (b) The Office of Privacy Protection in the Department of Consumer
Affairs shall establish a task force to conduct a review of the use
by all colleges and universities of social security numbers in order
to recommend practices to minimize the collection, use, storage, and
retention of social security numbers in relation to academic and
operational needs and applicable legal requirements.
   (c) The task force shall be known as the "College and University
Social Security Number Task Force." The Office of Privacy Protection
shall determine the composition of the task force, which shall
include, but not be limited to, all of the following:
   (1) Two representatives from each of the three institutions of
public higher education.
   (2) Two representatives of the California Association of
Independent Colleges and Universities.
   (3) Two representatives each from two organizations devoted to the
protection of personal privacy.
   (4) One representative from a national organization devoted to the
management of information technology in higher education.
   (5) One representative from the business community with expertise
in technological solutions to privacy concerns.
   (6) One representative each from the Assembly Committee on
Judiciary and the Senate Committee on Judiciary.
   (d) The task force shall seek input, as deemed necessary and
appropriate, from all of the following:
   (1) Representatives of organizations with expertise in technical
policy and practices of Internet disclosure, privacy policy relevant
to Internet disclosure, and fostering public integrity and
accountability.
   (2) The constituencies of the college and university communities,
including students, staff, and faculty.
   (e) The task force shall review and make recommendations to
minimize the collection, use, storage, and retention of social
security numbers by California colleges and universities and shall
include, but not be limited to, all of the following:
   (1) A survey of best practices at colleges and universities and
the costs of implementing those best practices.
   (2) The necessary use and protection of social security numbers
for all of the following:
   (A) Research purposes.
   (B) Academic purposes, including, but not limited to, academic
research, admission, financial aid, and other related operational
uses.
   (C) Operational uses by academic medical centers, including, but
not limited to, patient identification, tracking, and care.
   (D) Business purposes, including, but not limited to, the
provision of employee benefits, tax purposes, loan programs, and
other requirements imposed by current state and federal statutes and
regulations.
   (E) Another operational need of the college or university.
   (3) Current personal privacy protections provided to students,
applicants, staff, and faculty of colleges and universities.
   (4) Existing state and federal legal requirements, including
regulatory requirements, mandating the use of social security numbers
at colleges and universities.
   (5) The possible use of personal identifiers or other substitutes
for social security numbers that protect personal information and
meet the operational needs of colleges and universities.
   (6) The cost of funding any recommendations presented by the task
force, including those that are of minimal cost and can be
implemented immediately and those that require additional funding or
time to implement.
   (f) The task force shall commence meetings no later than May 1,
2008.
   (g) (1) On or before July 1, 2010, the task force shall submit a
final report of its findings and recommendations to the Office of
Privacy Protection, and to the Assembly Committee on Judiciary and
the Senate Committee on Judiciary.
   (2) The final report shall also include a list of the existing
uses of social security numbers common among colleges and
universities for routine operations and compliance with state and
federal laws.
   (3) The findings and recommendations of the task force shall be
informational only and shall not be binding on any college or
university.
  SEC. 71.  The heading of Part 40.5 (commencing with Section 67500)
of Division 5 of Title 3 of the Education Code is amended to read:

      PART 40.5.  CAPITAL OUTLAY REQUIREMENTS


  SEC. 72.                                                Section
69551 of the Education Code is amended to read:
   69551.  (a) The Legislature finds and declares all of the
following:
   (1) The Cash for College Program has successfully established
local regional partnerships that annually provide hands-on help in
filling out financial aid forms necessary to receive financial
assistance for college. This program was initiated by private
foundations and the Student Aid Commission in 2002 with the goal of
increasing the number of students who successfully complete the
financial aid process and enroll in college. In 2007, the Cash for
College Program succeeded in serving over 20,000 students and their
families in 44 of the 58 counties in California, thereby helping the
state to access tens of millions of dollars in federal Pell Grant
financial aid for low-income students and increasing the number of
students participating in the state's Cal Grant program.
   (2) The intersegmental cooperative nature of the Cash for College
Program has proved to be a highly effective mechanism to coordinate
existing services and to foster the cooperation of the various
educational segments, community, and business partners involved.
   (3) The Cash for College Program has been successful because of
the financial and volunteer contributions of local partners in
private business and industry, the financial aid, admissions, and
outreach communities, and student groups. Additional funding has been
provided through these local and regional partnerships, and through
one million five hundred thousand dollars ($1,500,000) in private
foundation grant funds that have supported the initial development of
the program, as well as funded local scholarships offered to
workshop participants who complete the financial aid process by the
state filing deadline.
   (4) The Cash for College Program has assisted high school and
community college students whose families were unfamiliar with the
financial aid process. The program focuses on assisting students and
their families who are first- or second-generation college-bound
students who have little or no access to college advising because of
limited resources at the schoolsite or the perception that college is
not an option.
   (5) The Cash for College Program seeks to provide all California
students who desire to attend college the opportunity to enroll by
providing tangible assistance in accessing the available state and
federal resources to make higher education possible.
   (6) A college or postsecondary education is a requirement for a
working wage job. The wage disparity between a high school graduate
and a college graduate is one million dollars ($1,000,000) over an
individual's lifespan.
   (7) California reflects the ethnic and cultural diversity of today'
s world. Evidence of this change is most pronounced within our public
elementary and secondary education system. As California continues
into the 21st century, there is no single group that represents a
majority of elementary and secondary enrollment. These changing
demographics present great challenges and great opportunities.
   (8) California must invest in higher education and in the future
of its young people so they can acquire skills and knowledge
necessary to continue the state's economic recovery.
   (9) The Cash for College Program provides access to the college
financial aid process for students of varied backgrounds and
socioeconomic status.
   (b) (1) Beginning January 1, 2008, the Cash for College Program is
established and is administered by the Student Aid Commission, in
partnership with private business and industry and local community
and educational organizations. The Student Aid Commission may
allocate funds for support of local Cash for College financial aid
workshop efforts that are designed to accomplish the following goals:

   (A) Targeted outreach to, and assistance for, low-income and
first-generation college-bound students with state and federal
financial aid applications.
   (B) Targeted outreach to, and assistance for, students who are
enrolled in schools or geographic regions with low college
eligibility or participation rates, with state and federal financial
aid applications.
   (2) The projects and organizations funded under this article shall
implement the following activities:
   (A) Organize and conduct free local and regional workshops that
help students and families to fill out the Free Application for
Federal Student Aid (FAFSA) and the Cal Grant GPA verification form
required for Cal Grants.
   (B) Convene advisory board meetings to develop regional
partnerships with local partners in private business and industry,
admissions and outreach communities, and student groups, to foster
financial and volunteer contributions.
   (c) The Student Aid Commission shall, by December 1 of each year,
provide a report to the fiscal and policy committees of the
Legislature on the Cash for College Program detailing program data,
expenditures, and the findings of an independent evaluation on the
extent to which program goals have been met. Program data shall
include the number of completed FAFSA applications, the number of
submitted grade point average verifications, and the number of Cal
Grant recipients using their Cal Grant awards at California
postsecondary institutions.
   (d) The Student Aid Commission shall contract with an external
evaluator to conduct the independent evaluation.
   (e) (1) The commission may accept voluntary contributions or
donations in cash to pay for the costs of implementing the program
pursuant to this article. Voluntary contributions shall be deposited
into the Cash for College Fund, which is hereby created in the State
Treasury. Only moneys contributed or donated for the purposes of this
article may be deposited into the fund. The fund shall be credited
with all investment income earned by moneys in the fund. The moneys
received in contributions or donations for the purposes of this
article are not part of the General Fund as defined in Section 16300
of the Government Code. Voluntary contributions or donations are
special funds held in trust for purposes of meeting the purposes of
this article. Notwithstanding Section 13340 of the Government Code,
moneys in the fund from voluntary contributions or donations are
hereby continuously appropriated to the commission without regard to
fiscal year for the purposes enumerated in this article.
   (2) Additional funds may be appropriated in the annual Budget Act
for the purposes of this article.
   (f) (1) As used in this subdivision, "regional coordinating
organization" means a coalition of entities led by a designated
organization, which may include nonprofit organizations, local
education or other government agencies, or public or private higher
education institutions.
   (2) The Student Aid Commission shall allocate funds to regional
coordinating organizations to plan, coordinate, or conduct Cash for
College workshop series within specified regions within the state.
   (3) The Student Aid Commission shall require a regional
coordinating organization to contribute equal or greater resources to
match the Cash for College funds allocated to it by the commission.
Funds allocated to a regional coordinating organization under this
subdivision shall be based on demonstrated ability to contribute
equal or greater matching resources or funds. The Student Aid
Commission may require advance payment, if it determines that it is
necessary to ensure that funds provided pursuant to this article are
available each year before the start of the program.
   (4) The Student Aid Commission may partner with regional
coordinating organizations or other entities to facilitate additional
nonstate funding or donations of property, or both, for the Cash for
College Program.
   (5) Notwithstanding Section 11005 of the Government Code, the
Student Aid Commission may accept gifts of personal property without
approval of the Director of Finance.
   (g) The commission may use the moneys appropriated for the
program, including reasonable administrative costs, marketing, and
external evaluation. Administrative costs shall include appropriate
staffing to support the program, including, but not limited to, a
Cash for College coordinator. The commission shall annually establish
the total amount of funding to assist regional coordinating
organizations. Allocation of funds shall be established based upon
the best use of funding for that year, as determined by the
commission in consultation with a Cash for College statewide advisory
board that may include, but is not limited to, partners in private
business and industry, admissions, outreach communities, and student
groups.
  SEC. 73.  Section 71095 of the Education Code is amended to read:
   71095.  (a) The chancellor's office, in consultation with the
Governor's Office of Emergency Services and the Office of Homeland
Security, shall, by January 1, 2009, develop emergency preparedness
standards and guidelines to assist community college districts and
campuses in the event of a natural disaster, hazardous condition, or
terrorist activity on or around a community college campus.
   (b) The standards and guidelines shall be developed in accordance
with the Standardized Emergency Management System and the National
Incident Management System, and shall be reviewed by the Governor's
Office of Emergency Services in a manner that is consistent with
existing policy. In developing the standards and guidelines, the
chancellor's office shall consider, but is not limited to, all of the
following components:
   (1) Information on establishing a campus emergency management
team.
   (2) Provisions regarding overview training for every employee
within one year of commencement of employment.
   (3) Information on specialized training for employees who may be
designated as part of an emergency management team.
   (4) Information on preparedness, prevention, response, recovery,
and mitigation policies and procedures.
   (5) Information on coordinating with the appropriate local, state,
and federal government authorities, and nongovernmental entities on
comprehensive emergency management and preparedness activities.
  SEC. 74.  Section 13001 of the Elections Code is amended to read:
   13001.  All expenses authorized and necessarily incurred in the
preparation for, and conduct of, elections as provided in this code
shall be paid from the county treasuries, except that when an
election is called by the governing body of a city the expenses shall
be paid from the treasury of the city. All payments shall be made in
the same manner as other county or city expenditures are made. The
elections official, in providing the materials required by this
division, need not utilize the services of the county or city
purchasing agent.
  SEC. 75.  Section 1520 of the Financial Code is amended to read:
   1520.  It is the intent of the Legislature that the provisions of
this article, insofar as they are contained in the regulations
regarding fiduciary activities of national banks (Part 9 (commencing
with Section 9.1) of Title 12 of the Code of Federal Regulations) of
the Office of the Comptroller of the Currency, conform, and be
interpreted by anyone construing the provisions of this article to so
conform, to those regulations, any rule or interpretation
promulgated thereunder by the Office of the Comptroller of the
Currency, and to any interpretation issued by an official or employee
of the Office of the Comptroller of the Currency duly authorized to
issue the interpretation.
  SEC. 76.  Section 50700 of the Financial Code is amended to read:
   50700.  (a) A residential mortgage lender, or a person or employee
acting under the authority of a residential mortgage lender's
license, shall not provide brokerage services to a borrower, except
as provided in subdivision (c).
   (b) "Brokerage services" means either of the following:
   (1) Obtaining or attempting to obtain, on behalf of a borrower, a
residential mortgage loan, as defined in subdivision (o) of Section
50003, secured by residential real estate, as defined in subdivision
(t) of Section 50003, made with the funds of another institutional
lender, as defined in paragraphs (1), (2), and (4) of subdivision (j)
of Section 50003, and closed in the name of that lender, for a fee
paid by the borrower or the institutional lender.
   (2) Obtaining or attempting to obtain, on behalf of a borrower, a
residential mortgage loan, as defined in subdivision (o) of Section
50003, secured by residential real estate, as defined in subdivision
(t) of Section 50003, made with the funds of another institutional
lender, as defined in paragraphs (1), (2), and (4) of subdivision (j)
of Section 50003, but closed in the name of the licensee, for a fee
paid by the borrower or the institutional lender.
   (c) A residential mortgage lender may provide brokerage services
under the authority of its license, if the lender first enters into a
written brokerage agreement with the borrower that satisfies the
requirements of Section 50701.
   (d) This chapter does not authorize a licensee to do any of the
following:
   (1) Provide brokerage services through independent contractors.
   (2) Obtain or attempt to obtain for a borrower a residential
mortgage loan that is a "high cost mortgage," referred to in Section
152(aa)(1) of the Home Ownership and Equity Protection Act of 1994,
as amended (15 U.S.C. Sec. 1602 (aa)).
   (3) Hold itself out to borrowers, through advertising, as a
mortgage broker, rather than a residential mortgage lender. However,
a licensee shall disclose its status as a broker or agent when that
disclosure is required by law.
   (4) Perform activity subject to Section 10131 of the Business and
Professions Code, except activities authorized by this division.
  SEC. 77.  Section 8235 of the Fish and Game Code is amended to
read:
   8235.  (a) The owner of a permitted vessel, or that owner's agent,
may apply for renewal of the permit annually on or before April 30,
upon payment of the fees established under subdivision (b), without
penalty. Upon receipt of the application and fees, the department
shall issue the permit for use of the permitted vessel in the
subsequent permit year only to the owner of the permitted vessel.
   (b) The department shall fix the annual fee for the renewal of the
permit in an amount it determines to be necessary to pay the
reasonable costs of implementing and administering this article.
   (c) If an owner to whom a permit has been issued, or that owner's
agent, applies for renewal of the permit, the application for renewal
shall be received or, if mailed, postmarked, on or before April 30.
An application received or, if mailed, postmarked, after April 30
shall be assessed a late fee subject to Section 7852.2. The
department shall issue the permit for use of the permitted vessel in
the subsequent permit year.
   (d) The department shall suspend a late fee otherwise due under
subdivision (c) and shall issue a permit for use of the permitted
vessel in the subsequent permit year if the department is unable to
accept applications for renewal of permits by March 1.
   (e) Except as provided in subdivision (c), the department shall
not renew a permit for which the application for renewal is not
received, or, if mailed, is received or postmarked after expiration
of the permit.
  SEC. 78.  Section 3352 of the Food and Agricultural Code is amended
to read:
   3352.  (a) The authority shall be governed by a board of
directors, which shall be composed of the Secretary of Food and
Agriculture, the Director of Finance, the Director of General
Services, and four individuals, appointed as provided in paragraph
(1), who are members of the Board of Directors of the California
Exposition and State Fair. The Treasurer and Controller shall be
members of the board of the authority only for the purposes of
hearing and deciding upon matters related to the issuance of revenue
bonds pursuant to this chapter. The Director of Finance shall serve
as chairperson of the authority. All meetings of the authority shall
be open and public.
   (1) Of the four appointed members of the Board of Directors of the
California Exposition and State Fair, one shall be appointed by the
Speaker of the Assembly, one shall be appointed by the Senate
Committee on Rules, and two shall be appointed by the Governor.
   (2) The authority may contract with consultants as approved by the
board of the authority. The authority shall not employ any other
staff.
   (3) The general manager of the California Exposition and State
Fair may serve only in an advisory capacity to the authority.
   (b) The authority is a "department" for the purposes of hearings
pursuant to Article 2 (commencing with Section 11180) of Chapter 2 of
Part 1 of Division 3 of Title 2 of the Government Code.
  SEC. 79.  Section 3357 of the Food and Agricultural Code is amended
to read:
   3357.  (a) In leasing, or entering into agreements for the use of,
the State Fair Race Track or other property owned or controlled by
the California Exposition and State Fair, the authority shall follow
the same procedures, as appropriate, as the Department of General
Services follows in leasing or entering into similar agreements for
other state real property. The authority shall also consult with, and
present for comment the lease or agreement to, the governing bodies
of the City and County of Sacramento prior to awarding the lease or
entering into the agreement.
   (b) Prior to awarding a lease of, or entering into an agreement
for the use of, the State Fair Race Track or other property owned or
controlled by the California Exposition and State Fair, the authority
shall consider all the factors concerning appropriate capital
improvements of the race track, the financing of the race track,
additional racing opportunities, and the use of new or additional
properties or facilities, including, but not limited to, a grandstand
or grandstand improvements, which factors shall be considered in the
award of the lease or entering into the agreement. The authority
shall also consult with, and present for comment the lease or
agreement to, the governing bodies of the City and County of
Sacramento prior to awarding the lease or entering into the
agreement.
  SEC. 80.  Section 20755 of the Food and Agricultural Code is
amended to read:
   20755.  The owner of a recorded brand may, on or before April 30
of any year, pay in advance to the bureau a sum that is a multiple of
sixty dollars ($60). The payment entitles him or her to use the
brand for a minimum of two years, but not to exceed 10 years, at the
rate of thirty dollars ($30) per year on and after April 1 of that
year. If the advance payment is made, biennial renewals for the years
within the period for which advance payment has been made are not
required.
  SEC. 81.  Section 3502.5 of the Government Code is amended to read:

   3502.5.  (a) Notwithstanding Section 3502, any other provision of
this chapter, or any other law, rule, or regulation, an agency shop
agreement may be negotiated between a public agency and a recognized
public employee organization that has been recognized as the
exclusive or majority bargaining agent pursuant to reasonable rules
and regulations, ordinances, and enactments, in accordance with this
chapter. As used in this chapter, "agency shop" means an arrangement
that requires an employee, as a condition of continued employment,
either to join the recognized employee organization or to pay the
organization a service fee in an amount not to exceed the standard
initiation fee, periodic dues, and general assessments of the
organization.
   (b) In addition to the procedure prescribed in subdivision (a), an
agency shop arrangement between the public agency and a recognized
employee organization that has been recognized as the exclusive or
majority bargaining agent shall be placed in effect, without a
negotiated agreement, upon (1) a signed petition of 30 percent of the
employees in the applicable bargaining unit requesting an agency
shop agreement and an election to implement an agency fee
arrangement, and (2) the approval of a majority of employees who cast
ballots and vote in a secret ballot election in favor of the agency
shop agreement. The petition may be filed only after the recognized
employee organization has requested the public agency to negotiate on
an agency shop arrangement and, beginning seven working days after
the public agency received this request, the two parties have had 30
calendar days to attempt good faith negotiations in an effort to
reach agreement. An election that may not be held more frequently
than once a year shall be conducted by the Division of Conciliation
of the Department of Industrial Relations in the event that the
public agency and the recognized employee organization cannot agree
within 10 days from the filing of the petition to select jointly a
neutral person or entity to conduct the election. In the event of an
agency fee arrangement outside of an agreement that is in effect, the
recognized employee organization shall indemnify and hold the public
agency harmless against any liability arising from a claim, demand,
or other action relating to the public agency's compliance with the
agency fee obligation.
   (c) An employee who is a member of a bona fide religion, body, or
sect that has historically held conscientious objections to joining
or financially supporting public employee organizations shall not be
required to join or financially support a public employee
organization as a condition of employment. The employee may be
required, in lieu of periodic dues, initiation fees, or agency shop
fees, to pay sums equal to the dues, initiation fees, or agency shop
fees to a nonreligious, nonlabor charitable fund exempt from taxation
under Section 501(c)(3) of the Internal Revenue Code, chosen by the
employee from a list of at least three of these funds, designated in
a memorandum of understanding between the public agency and the
public employee organization, or if the memorandum of understanding
fails to designate the funds, then to a fund of that type chosen by
the employee. Proof of the payments shall be made on a monthly basis
to the public agency as a condition of continued exemption from the
requirement of financial support to the public employee organization.

   (d) An agency shop provision in a memorandum of understanding that
is in effect may be rescinded by a majority vote of all the
employees in the unit covered by the memorandum of understanding,
provided that: (1) a request for that type of vote is supported by a
petition containing the signatures of at least 30 percent of the
employees in the unit, (2) the vote is by secret ballot, and (3) the
vote may be taken at any time during the term of the memorandum of
understanding, but in no event shall there be more than one vote
taken during that term. Notwithstanding the above, the public agency
and the recognized employee organization may negotiate, and by mutual
agreement provide for, an alternative procedure or procedures
regarding a vote on an agency shop agreement. The procedures in this
subdivision are also applicable to an agency shop agreement placed in
effect pursuant to subdivision (b).
   (e) An agency shop arrangement shall not apply to management
employees.
   (f) A recognized employee organization that has agreed to an
agency shop provision or is a party to an agency shop arrangement
shall keep an adequate itemized record of its financial transactions
and shall make available annually, to the public agency with which
the agency shop provision was negotiated, and to the employees who
are members of the organization, within 60 days after the end of its
fiscal year, a detailed written financial report thereof in the form
of a balance sheet and an operating statement, certified as to
accuracy by its president and treasurer or corresponding principal
officer, or by a certified public accountant. An employee
organization required to file financial reports under the federal
Labor-Management Reporting and Disclosure Act of 1959 (29 U.S.C. Sec.
401 et seq.) covering employees governed by this chapter, or
required to file financial reports under Section 3546.5, may satisfy
the financial reporting requirement of this section by providing the
public agency with a copy of the financial reports.
  SEC. 82.  Section 3517.8 of the Government Code is amended to read:

   3517.8.  (a) If a memorandum of understanding has expired, and the
Governor and the recognized employee organization have not agreed to
a new memorandum of understanding and have not reached an impasse in
negotiations, subject to subdivision (b), the parties to the
agreement shall continue to give effect to the provisions of the
expired memorandum of understanding, including, but not limited to,
all provisions that supersede existing law, any arbitration
provisions, any no strike provisions, any agreements regarding
matters covered in the Fair Labor Standards Act of 1938 (29 U.S.C.
Sec. 201 et seq.), and any provisions covering fair share fee
deduction consistent with Section 3515.7.
   (b) If the Governor and the recognized employee organization reach
an impasse in negotiations for a new memorandum of understanding,
the state employer may implement any or all of its last, best, and
final offer. Any proposal in the state employer's last, best, and
final offer that, if implemented, would conflict with existing
statutes or require the expenditure of funds shall be presented to
the Legislature for approval and, if approved, shall be controlling
without further legislative action, notwithstanding Sections 3517.5,
3517.6, and 3517.7. Implementation of the last, best, and final offer
does not relieve the parties of the obligation to bargain in good
faith and reach an agreement on a memorandum of understanding if
circumstances change, and does not waive rights that the recognized
employee organization has under this chapter.
  SEC. 83.  Section 3543 of the Government Code is amended to read:
   3543.  (a) Public school employees shall have the right to form,
join, and participate in the activities of employee organizations of
their own choosing for the purpose of representation on all matters
of employer-employee relations. Public school employees shall have
the right to represent themselves individually in their employment
relations with the public school employer, except that once the
employees in an appropriate unit have selected an exclusive
representative and it has been recognized pursuant to Section 3544.1
or certified pursuant to Section 3544.7, an employee in that unit
shall not meet and negotiate with the public school employer. If the
exclusive representative of a unit provides notification, as
specified by
subdivision (a) of Section 3546, public school employees who are in a
unit for which an exclusive representative has been selected, shall
be required, as a condition of continued employment, to join the
recognized employee organization or to pay the organization a fair
share services fee, as required by Section 3546. If a majority of the
members of a bargaining unit rescind that arrangement, either of the
following options shall be applicable:
   (1) The recognized employee organization may petition for the
reinstatement of the arrangement described in subdivision (a) of
Section 3546 pursuant to the procedures in paragraph (2) of
subdivision (d) of Section 3546.
   (2) The employees may negotiate either of the two forms of
organizational security described in subdivision (i) of Section
3540.1.
   (b) An employee may at any time present grievances to his or her
employer, and have those grievances adjusted, without the
intervention of the exclusive representative, as long as the
adjustment is reached prior to arbitration pursuant to Sections
3548.5, 3548.6, 3548.7, and 3548.8 and the adjustment is not
inconsistent with the terms of a written agreement then in effect,
provided that the public school employer shall not agree to a
resolution of the grievance until the exclusive representative has
received a copy of the grievance and the proposed resolution and has
been given the opportunity to file a response.
  SEC. 84.  Section 7267.2 of the Government Code is amended to read:

   7267.2.  (a) (1) Prior to adopting a resolution of necessity
pursuant to Section 1245.230 of the Code of Civil Procedure and
initiating negotiations for the acquisition of real property, the
public entity shall establish an amount that it believes to be just
compensation therefor, and shall make an offer to the owner or owners
of record to acquire the property for the full amount so
established, unless the owner cannot be located with reasonable
diligence. The offer may be conditioned upon the legislative body's
ratification of the offer by execution of a contract of acquisition
or adoption of a resolution of necessity or both. The amount shall
not be less than the public entity's approved appraisal of the fair
market value of the property. A decrease or increase in the fair
market value of real property to be acquired prior to the date of
valuation caused by the public improvement for which the property is
acquired, or by the likelihood that the property would be acquired
for the improvement, other than that due to physical deterioration
within the reasonable control of the owner or occupant, shall be
disregarded in determining the compensation for the property.
   (2) At the time of making the offer described in paragraph (1),
the public entity shall provide the property owner with an
informational pamphlet detailing the process of eminent domain and
the property owner's rights under the Eminent Domain Law.
   (b) The public entity shall provide the owner of real property to
be acquired with a written statement of, and summary of the basis
for, the amount it established as just compensation. The written
statement and summary shall contain detail sufficient to indicate
clearly the basis for the offer, including, but not limited to, all
of the following information:
   (1) The date of valuation, highest and best use, and applicable
zoning of property.
   (2) The principal transactions, reproduction or replacement cost
analysis, or capitalization analysis, supporting the determination of
value.
   (3) If appropriate, the just compensation for the real property
acquired and for damages to remaining real property shall be
separately stated and shall include the calculations and narrative
explanation supporting the compensation, including any offsetting
benefits.
   (c) Where the property involved is owner-occupied residential
property and contains no more than four residential units, the
homeowner shall, upon request, be allowed to review a copy of the
appraisal upon which the offer is based. The public entity may, but
is not required to, satisfy the written statement, summary, and
review requirements of this section by providing the owner a copy of
the appraisal on which the offer is based.
   (d) Notwithstanding subdivision (a), a public entity may make an
offer to the owner or owners of record to acquire real property for
less than an amount that it believes to be just compensation therefor
if (1) the real property is offered for sale by the owner at a
specified price less than the amount the public entity believes to be
just compensation therefor, (2) the public entity offers a price
that is equal to the specified price for which the property is being
offered by the landowner, and (3) no federal funds are involved in
the acquisition, construction, or project development.
   (e) As used in subdivision (d), "offered for sale" means any of
the following:
   (1) Directly offered by the landowner to the public entity for a
specified price in advance of negotiations by the public entity.
   (2) Offered for sale to the general public at an advertised or
published specified price, set no more than six months prior to, and
still available at, the time the public entity initiates contact with
the landowner regarding the public entity's possible acquisition of
the property.
  SEC. 85.  Section 7576 of the Government Code is amended to read:
   7576.  (a) The State Department of Mental Health, or a community
mental health service, as described in Section 5602 of the Welfare
and Institutions Code, designated by the State Department of Mental
Health, is responsible for the provision of mental health services,
as defined in regulations by the State Department of Mental Health,
developed in consultation with the State Department of Education, if
required in the individualized education program of a pupil. A local
educational agency is not required to place a pupil in a more
restrictive educational environment in order for the pupil to receive
the mental health services specified in his or her individualized
education program if the mental health services can be appropriately
provided in a less restrictive setting. It is the intent of the
Legislature that the local educational agency and the community
mental health service vigorously attempt to develop a mutually
satisfactory placement that is acceptable to the parent and addresses
the educational and mental health treatment needs of the pupil in a
manner that is cost effective for both public agencies, subject to
the requirements of state and federal special education law,
including the requirement that the placement be appropriate and in
the least restrictive environment. For purposes of this section,
"parent" is as defined in Section 56028 of the Education Code.
   (b) A local educational agency, individualized education program
team, or parent may initiate a referral for assessment of the social
and emotional status of a pupil, pursuant to Section 56320 of the
Education Code. Based on the results of assessments completed
pursuant to Section 56320 of the Education Code, an individualized
education program team may refer a pupil who has been determined to
be an individual with exceptional needs, as defined in Section 56026
of the Education Code, and who is suspected of needing mental health
services to a community mental health service if the pupil meets all
of the criteria in paragraphs (1) to (5), inclusive. Referral
packages shall include all documentation required in subdivision (c),
and shall be provided immediately to the community mental health
service.
   (1) The pupil has been assessed by school personnel in accordance
with Article 2 (commencing with Section 56320) of Chapter 4 of Part
30 of Division 4 of Title 2 of the Education Code. Local educational
agencies and community mental health services shall work
collaboratively to ensure that assessments performed prior to
referral are as useful as possible to the community mental health
service in determining the need for mental health services and the
level of services needed.
   (2) The local educational agency has obtained written parental
consent for the referral of the pupil to the community mental health
service, for the release and exchange of all relevant information
between the local educational agency and the community mental health
service, and for the observation of the pupil by mental health
professionals in an educational setting.
   (3) The pupil has emotional or behavioral characteristics that
satisfy all of the following:
   (A) Are observed by qualified educational staff in educational and
other settings, as appropriate.
   (B) Impede the pupil from benefiting from educational services.
   (C) Are significant as indicated by their rate of occurrence and
intensity.
   (D) Are associated with a condition that cannot be described
solely as a social maladjustment or a temporary adjustment problem,
and cannot be resolved with short-term counseling.
   (4) As determined using educational assessments, the pupil's
functioning, including cognitive functioning, is at a level
sufficient to enable the pupil to benefit from mental health
services.
   (5) The local educational agency, pursuant to Section 56331 of the
Education Code, has provided appropriate counseling and guidance
services, psychological services, parent counseling and training, or
social work services to the pupil pursuant to Section 56363 of the
Education Code, or behavioral intervention as specified in Section
56520 of the Education Code, as specified in the individualized
education program and the individualized education program team has
determined that the services do not meet the educational needs of the
pupil, or, in cases where these services are clearly inadequate or
inappropriate to meet the educational needs of the pupil, the
individualized education program team has documented which of these
services were considered and why they were determined to be
inadequate or inappropriate.
   (c) If referring a pupil to a community mental health service in
accordance with subdivision (b), the local educational agency or the
individualized education program team shall provide the following
documentation:
   (1) Copies of the current individualized education program, all
current assessment reports completed by school personnel in all areas
of suspected disabilities pursuant to Article 2 (commencing with
Section 56320) of Chapter 4 of Part 30 of Division 4 of Title 2 of
the Education Code, and other relevant information, including reports
completed by other agencies.
   (2) A copy of the parent's consent obtained as provided in
paragraph (2) of subdivision (b).
   (3) A summary of the emotional or behavioral characteristics of
the pupil, including documentation that the pupil meets the criteria
set forth in paragraphs (3) and (4) of subdivision (b).
   (4) A description of the counseling, psychological, and guidance
services, and other interventions that have been provided to the
pupil, as provided in the individualized education program of the
pupil, including the initiation, duration, and frequency of these
services, or an explanation of the reasons a service was considered
for the pupil and determined to be inadequate or inappropriate to
meet his or her educational needs.
   (d) Based on preliminary results of assessments performed pursuant
to Section 56320 of the Education Code, a local educational agency
may refer a pupil who has been determined to be, or is suspected of
being, an individual with exceptional needs, and is suspected of
needing mental health services, to a community mental health service
if a pupil meets the criteria in paragraphs (1) and (2). Referral
packages shall include all documentation required in subdivision (e)
and shall be provided immediately to the community mental health
service.
   (1) The pupil meets the criteria in paragraphs (2) to (4),
inclusive, of subdivision (b).
   (2) Counseling and guidance services, psychological services,
parent counseling and training, social work services, and behavioral
or other interventions as provided in the individualized education
program of the pupil are clearly inadequate or inappropriate in
meeting his or her educational needs.
   (e) If referring a pupil to a community mental health service in
accordance with subdivision (d), the local educational agency shall
provide the following documentation:
   (1) Results of preliminary assessments to the extent they are
available and other relevant information including reports completed
by other agencies.
   (2) A copy of the parent's consent obtained as provided in
paragraph (2) of subdivision (b).
   (3) A summary of the emotional or behavioral characteristics of
the pupil, including documentation that the pupil meets the criteria
in paragraphs (3) and (4) of subdivision (b).
   (4) Documentation that appropriate related educational and
designated instruction and services have been provided in accordance
with Sections 300.34 and 300.39 of Title 34 of the Code of Federal
Regulations.
   (5) An explanation of the reasons that counseling and guidance
services, psychological services, parent counseling and training,
social work services, and behavioral or other interventions as
provided in the individualized education program of the pupil are
clearly inadequate or inappropriate in meeting his or her educational
needs.
   (f) The procedures set forth in this chapter are not designed for
use in responding to psychiatric emergencies or other situations
requiring immediate response. In these situations, a parent may seek
services from other public programs or private providers, as
appropriate. This subdivision does not change the identification and
referral responsibilities imposed on local educational agencies under
Article 1 (commencing with Section 56300) of Chapter 4 of Part 30 of
Division 4 of Title 2 of the Education Code.
   (g) Referrals shall be made to the community mental health service
in the county in which the pupil lives. If the pupil has been placed
into residential care from another county, the community mental
health service receiving the referral shall forward the referral
immediately to the community mental health service of the county of
origin, which shall have fiscal and programmatic responsibility for
providing or arranging for the provision of necessary services. The
procedures described in this subdivision shall not delay or impede
the referral and assessment process.
   (h) A county mental health agency does not have fiscal or legal
responsibility for costs it incurs prior to the approval of an
individualized education program, except for costs associated with
conducting a mental health assessment.
  SEC. 86.  Section 7585 of the Government Code is amended to read:
   7585.  (a) Whenever a department or local agency designated by
that department fails to provide a related service or designated
instruction and service required pursuant to Section 7575 or 7576,
and specified in the pupil's individualized education program, the
parent, adult pupil, if applicable, or a local educational agency
referred to in this chapter, shall submit a written notification of
the failure to provide the service to the Superintendent of Public
Instruction or the Secretary of California Health and Human Services.

   (b) When either the Superintendent or the secretary receives a
written notification of the failure to provide a service as specified
in subdivision (a), a copy shall immediately be transmitted to the
other party. The Superintendent, or his or her designee, and the
secretary, or his or her designee, shall meet to resolve the issue
within 15 calendar days of receipt of the notification. A written
copy of the meeting resolution shall be mailed to the parent, the
local educational agency, and affected departments, within 10 days of
the meeting.
   (c) If the issue cannot be resolved within 15 calendar days to the
satisfaction of the Superintendent and the secretary, they shall
jointly submit the issue in writing to the Director of the Office of
Administrative Hearings, or his or her designee, in the Department of
General Services.
   (d) The Director of the Office of Administrative Hearings, or his
or her designee, shall review the issue and submit his or her
findings in the case to the Superintendent and the secretary within
30 calendar days of receipt of the case. The decision of the
director, or his or her designee, shall be binding on the departments
and their designated agencies who are parties to the dispute.
   (e) If the meeting, conducted pursuant to subdivision (b), fails
to resolve the issue to the satisfaction of the parent or local
educational agency, either party may appeal to the director, whose
decision shall be the final administrative determination and binding
on all parties.
   (f) Whenever notification is filed pursuant to subdivision (a),
the pupil affected by the dispute shall be provided with the
appropriate related service or designated instruction and service
pending resolution of the dispute, if the pupil had been receiving
the service. The Superintendent and the secretary shall ensure that
funds are available for the provision of the service pending
resolution of the issue pursuant to subdivision (e).
   (g) This section does not prevent a parent or adult pupil from
filing for a due process hearing under Section 7586.
   (h) The contract between the State Department of Education and the
Office of Administrative Hearings for conducting due process
hearings shall include payment for services rendered by the Office of
Administrative Hearings which are required by this section.
  SEC. 87.  Section 8588.1 of the Government Code is amended to read:

   8588.1.  (a) The Legislature finds and declares that this state
can only truly be prepared for the next disaster if the public and
private sector collaborate.
   (b) The Office of Emergency Services may include, as appropriate,
private businesses and nonprofit organizations within its
responsibilities to prepare the state for disasters under this
chapter. All participation by businesses and nonprofit associations
in this program shall be voluntary.
   (c) The office may do any of the following:
   (1) Provide guidance to business and nonprofit organizations
representing business interests on how to integrate private sector
emergency preparedness measures into governmental disaster planning
programs.
   (2) Conduct outreach programs to encourage business to work with
governments and community associations to better prepare the
community and their employees to survive and recover from disasters.
   (3) Develop systems so that government, businesses, and employees
can exchange information during disasters to protect themselves and
their families.
   (4) Develop programs so that businesses and government can work
cooperatively to advance technology that will protect the public
during disasters.
   (d) The office may share facilities and systems for purposes of
subdivision (b) with the private sector to the extent the costs for
their use are reimbursed by the private sector.
   (e) Proprietary information or information protected by state or
federal privacy laws shall not be disclosed under this program.
   (f) Notwithstanding Section 11005, donations and private grants
may be accepted by the office and shall not be subject to Section
11005.
   (g) The Disaster Resistant Communities Fund is hereby created in
the State Treasury. Upon appropriation by the Legislature, the
Director of the Office of Emergency Services may expend the moneys in
the account for the costs associated with this section.
   (h) This section shall be implemented only to the extent that
in-kind contributions or donations are received from the private
sector, or grant funds are received from the federal government, for
these purposes.
  SEC. 88.  Section 8592.1 of the Government Code is amended to read:

   8592.1.  For purposes of this article, the following terms have
the following meanings:
   (a) "Backward compatibility" means that the equipment is able to
function with older, existing equipment.
   (b) "Committee" means the Public Safety Radio Strategic Planning
Committee, which was established in December 1994 in recognition of
the need to improve existing public radio systems and to develop
interoperability among public safety departments and between state
public safety departments and local or federal entities, and which
consists of representatives of the following state entities:
   (1) The Office of Emergency Services, who shall serve as
chairperson.
   (2) The Department of the California Highway Patrol.
   (3) The Department of Transportation.
   (4) The Department of Corrections and Rehabilitation.
   (5) The Department of Parks and Recreation.
   (6) The Department of Fish and Game.
   (7) The Department of Forestry and Fire Protection.
   (8) The Department of Justice.
   (9) The Department of Water Resources.
   (10) The State Department of Public Health.
   (11) The Emergency Medical Services Authority.
   (12) The Department of General Services.
   (13) The Office of Homeland Security.
   (14) The Military Department.
   (15) The Department of Finance.
   (c) "First response agencies" means public agencies that, in the
early states of an incident, are responsible for, among other things,
the protection and preservation of life, property, evidence, and the
environment, including, but not limited to, state fire agencies,
state and local emergency medical services agencies, local sheriffs'
departments, municipal police departments, county and city fire
departments, and police and fire protection districts.
   (d) "Nonproprietary equipment or systems" means equipment or
systems that are able to function with another manufacturer's
equipment or system regardless of type or design.
   (e) "Open architecture" means a system that can accommodate
equipment from various vendors because it is not a proprietary
system.
   (f) "Public safety radio subscriber" means the ultimate end user.
Subscribers include individuals or organizations, including, for
example, local police departments, fire departments, and other
operators of a public safety radio system. Typical subscriber
equipment includes end instruments, including mobile radios,
hand-held radios, mobile repeaters, fixed repeaters, transmitters, or
receivers that are interconnected to utilize assigned public safety
communications frequencies.
   (g) "Public safety spectrum" means the spectrum allocated by the
Federal Communications Commission for operation of interoperable and
general use radio communication systems for public safety purposes
within the state.
  SEC. 89.  Section 8879.50 of the Government Code is amended to
read:
   8879.50.  (a) As used in this chapter and in Chapter 12.49
(commencing with Section 8879.20), the following terms have the
following meanings:
   (1) "Commission" means the California Transportation Commission.
   (2) "Department" means the Department of Transportation.
   (3) "Administrative agency" means the state agency responsible for
programming bond funds made available by Chapter 12.49 (commencing
with Section 8879.20), as specified in subdivision (c).
   (4) Unless otherwise specified in this chapter, "project" includes
equipment purchase, construction, right-of-way acquisition, and
project delivery costs.
   (5) "Recipient agency" means the recipient of bond funds made
available by Chapter 12.49 (commencing with Section 8879.20) that is
responsible for implementation of an approved project.
   (6) "Fund" shall have the same meaning as in subdivision (c) of
Section 8879.20.
   (b) Administrative costs, including audit and program oversight
costs for agencies, commissions, or departments administering
programs funded pursuant to this chapter, recoverable by bond funds
shall not exceed 3 percent of the program's cost.
   (c) The administrative agency for each bond account is as follows:

   (1) The commission is the administrative agency for the Corridor
Mobility Improvement Account; the Trade Corridors Improvement Fund;
the Transportation Facilities Account; the State Route 99 Account;
the State-Local Partnership Program Account; the Local Bridge Seismic
Retrofit Account; the Highway-Railroad Crossing Safety Account; and
the Highway Safety, Rehabilitation, and Preservation Account.
   (2) The Office of Homeland Security and the Office of Emergency
Services are the administrative agencies for the Port and Maritime
Security Account and the Transit System Safety, Security, and
Disaster Response Account.
   (3) The department is the administrative agency for the Public
Transportation Modernization, Improvement, and Service Enhancement
Account.
   (d) The administrative agency shall not approve project fund
allocations for a project until the recipient agency provides a
project funding plan that demonstrates that the funds are expected to
be reasonably available and sufficient to complete the project. The
administrative agency may approve funding for usable project segments
only if the benefits associated with each individual segment are
sufficient to meet the objectives of the program from which the
individual segment is funded.
   (e) Guidelines adopted by the administrative agency pursuant to
this chapter and Chapter 12.49 (commencing with Section 8879.20) are
intended to provide internal guidance for the agency and shall be
exempt from the Administrative Procedure Act (Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3), and shall do all of
the following:
   (1) Provide for the audit of project expenditures and outcomes.
   (2) Require that the useful life of the project be identified as
part of the project nomination process.
   (3) Require that project nominations have project delivery
milestones, including, but not limited to, start and completion dates
for environmental clearance, land acquisition, design, construction
bid award, construction completion, and project closeout, as
applicable.
   (f) (1) As a condition for allocation of funds to a specific
project under Chapter 12.49 (commencing with Section 8879.20), the
administrative agency shall require the recipient agency to report,
on a semiannual basis, on the activities and progress made toward
implementation of the project. The administrative agency shall
forward the report to the Department of Finance by means approved by
the Department of Finance. The purpose of the report is to ensure
that the project is being executed in a timely fashion, and is within
the scope and budget identified when the decision was made to fund
the project. If it is anticipated that project costs will exceed the
approved project budget, the recipient agency shall provide a plan to
the administrative agency for achieving the
                    benefits of the project by either downscoping the
project to remain within budget or by identifying an alternative
funding source to meet the cost increase. The administrative agency
may either approve the corrective plan or direct the recipient agency
to modify its plan.
   (2) Within six months of the project becoming operable, the
recipient agency shall provide a report to the administrative agency
on the final costs of the project as compared to the approved project
budget, the project duration as compared to the original project
schedule as of the date of allocation, and performance outcomes
derived from the project compared to those described in the original
application for funding. The administrative agency shall forward the
report to the Department of Finance by means approved by the
Department of Finance.
  SEC. 90.  Section 8879.60 of the Government Code is amended to
read:
   8879.60.  (a) For funds appropriated from the Transit System
Safety, Security, and Disaster Response Account for allocation to
intercity and commuter rail operators eligible to receive funds
pursuant to subdivision (c) of Section 8879.57, the Office of
Homeland Security (OHS) shall administer a grant application and
award program for those intercity and commuter rail operators.
   (b) Funds awarded to intercity and commuter rail operators
pursuant to this section shall be for eligible capital expenditures
as described in subdivision (c) of Section 8879.57.
   (c) Prior to allocating funds to projects pursuant to this
section, OHS shall adopt guidelines to establish the criteria and
process for the distribution of funds described in this section.
Prior to adopting the guidelines, OHS shall hold a public hearing on
the proposed guidelines.
   (d) For each fiscal year in which funds are appropriated for the
purposes of this section, OHS shall issue a notice of funding
availability no later than October 1.
   (e) No later than December 1 of each fiscal year in which the
notice in subdivision (d) is issued, eligible intercity and commuter
rail operators may submit project nominations for funding to OHS for
its review and consideration. Project nominations shall include all
of the following:
   (1) A description of the project, which shall illustrate the
physical components of the project and the security or emergency
response benefit to be achieved by the completion of the project.
   (2) Identification of all nonbond sources of funding committed to
the project.
   (3) An estimate of the project's full cost and the proposed
schedule for the project's completion.
   (f) No later than February 1, OHS shall select eligible projects
to receive grants under this section. Grants awarded to intercity and
commuter rail operators pursuant to subdivision (c) of Section
8879.57 shall be for eligible capital expenditures, as described in
subparagraphs (A) and (B) of paragraph (2) of subdivision (c) of that
section.
  SEC. 91.  Section 11126 of the Government Code is amended to read:
   11126.  (a) (1) This article does not prevent a state body from
holding closed sessions during a regular or special meeting to
consider the appointment, employment, evaluation of performance, or
dismissal of a public employee or to hear complaints or charges
brought against that employee by another person or employee unless
the employee requests a public hearing.
   (2) As a condition of holding a closed session on the complaints
or charges to consider disciplinary action or to consider dismissal,
the employee shall be given written notice of his or her right to
have a public hearing, rather than a closed session, and that notice
shall be delivered to the employee personally or by mail at least 24
hours before the time for holding a regular or special meeting. If
notice is not given, disciplinary or other action taken against any
employee at the closed session shall be null and void.
   (3) The state body also may exclude from a public or closed
session, during the examination of a witness, any or all other
witnesses in the matter being investigated by the state body.
   (4) Following the public hearing or closed session, the body may
deliberate on the decision to be reached in a closed session.
   (b) For purposes of this section, "employee" does not include a
person who is elected to, or appointed to a public office by, a state
body. However, officers of the California State University who
receive compensation for their services, other than per diem and
ordinary and necessary expenses, shall, when engaged in that
capacity, be considered employees. Furthermore, for purposes of this
section, "employee" includes a person exempt from civil service
pursuant to subdivision (e) of Section 4 of Article VII of the
California Constitution.
   (c) This article does not do any of the following:
   (1) Prevent state bodies that administer the licensing of persons
engaging in businesses or professions from holding closed sessions to
prepare, approve, grade, or administer examinations.
   (2) Prevent an advisory body of a state body that administers the
licensing of persons engaged in businesses or professions from
conducting a closed session to discuss matters that the advisory body
has found would constitute an unwarranted invasion of the privacy of
an individual licensee or applicant if discussed in an open meeting,
provided that the advisory body does not include a quorum of the
members of the state body it advises. Those matters may include
review of an applicant's qualifications for licensure and an inquiry
specifically related to the state body's enforcement program
concerning an individual licensee or applicant where the inquiry
occurs prior to the filing of a civil, criminal, or administrative
disciplinary action against the licensee or applicant by the state
body.
   (3) Prohibit a state body from holding a closed session to
deliberate on a decision to be reached in a proceeding required to be
conducted pursuant to Chapter 5 (commencing with Section 11500) or
similar provisions of law.
   (4) Grant a right to enter a correctional institution or the
grounds of a correctional institution if that right is not otherwise
granted by law, and this article does not prevent a state body from
holding a closed session when considering and acting upon the
determination of a term, parole, or release of an individual or other
disposition of an individual case, or if public disclosure of the
subjects under discussion or consideration is expressly prohibited by
statute.
   (5) Prevent a closed session to consider the conferring of
honorary degrees, or gifts, donations, and bequests that the donor or
proposed donor has requested in writing to be kept confidential.
   (6) Prevent the Alcoholic Beverage Control Appeals Board from
holding a closed session for the purpose of holding a deliberative
conference as provided in Section 11125.
   (7) (A) Prevent a state body from holding closed sessions with its
negotiator prior to the purchase, sale, exchange, or lease of real
property by or for the state body to give instructions to its
negotiator regarding the price and terms of payment for the purchase,
sale, exchange, or lease.
   (B) However, prior to the closed session, the state body shall
hold an open and public session in which it identifies the real
property or real properties that the negotiations may concern and the
person or persons with whom its negotiator may negotiate.
   (C) For purposes of this paragraph, the negotiator may be a member
of the state body.
   (D) For purposes of this paragraph, "lease" includes renewal or
renegotiation of a lease.
   (E) This article does not preclude a state body from holding a
closed session for discussions regarding eminent domain proceedings
pursuant to subdivision (e).
   (8) Prevent the California Postsecondary Education Commission from
holding closed sessions to consider matters pertaining to the
appointment or termination of the Director of the California
Postsecondary Education Commission.
   (9) Prevent the Bureau for Private Postsecondary and Vocational
Education from holding closed sessions to consider matters pertaining
to the appointment or termination of the Executive Director of the
Bureau for Private Postsecondary and Vocational Education.
   (10) Prevent the Franchise Tax Board from holding closed sessions
for the purpose of discussion of confidential tax returns or
information the public disclosure of which is prohibited by law, or
from considering matters pertaining to the appointment or removal of
the Executive Officer of the Franchise Tax Board.
   (11) Require the Franchise Tax Board to notice or disclose any
confidential tax information considered in closed sessions, or
documents executed in connection therewith, the public disclosure of
which is prohibited pursuant to Article 2 (commencing with Section
19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and
Taxation Code.
   (12) Prevent the Corrections Standards Authority from holding
closed sessions when considering reports of crime conditions under
Section 6027 of the Penal Code.
   (13) Prevent the State Air Resources Board from holding closed
sessions when considering the proprietary specifications and
performance data of manufacturers.
   (14) Prevent the State Board of Education or the Superintendent of
Public Instruction, or a committee advising the board or the
Superintendent, from holding closed sessions on those portions of its
review of assessment instruments pursuant to Chapter 5 (commencing
with Section 60600) of, or pursuant to Chapter 9 (commencing with
Section 60850) of, Part 33 of Division 4 of Title 2 of the Education
Code during which actual test content is reviewed and discussed. The
purpose of this provision is to maintain the confidentiality of the
assessments under review.
   (15) Prevent the California Integrated Waste Management Board or
its auxiliary committees from holding closed sessions for the purpose
of discussing confidential tax returns, discussing trade secrets or
confidential or proprietary information in its possession, or
discussing other data, the public disclosure of which is prohibited
by law.
   (16) Prevent a state body that invests retirement, pension, or
endowment funds from holding closed sessions when considering
investment decisions. For purposes of consideration of shareholder
voting on corporate stocks held by the state body, closed sessions
for the purposes of voting may be held only with respect to election
of corporate directors, election of independent auditors, and other
financial issues that could have a material effect on the net income
of the corporation. For purposes of real property investment
decisions that may be considered in a closed session pursuant to this
paragraph, a state body shall also be exempt from the provisions of
paragraph (7) relating to the identification of real properties prior
to the closed session.
   (17) Prevent a state body, or boards, commissions, administrative
officers, or other representatives that may properly be designated by
law or by a state body, from holding closed sessions with its
representatives in discharging its responsibilities under Chapter 10
(commencing with Section 3500), Chapter 10.3 (commencing with Section
3512), Chapter 10.5 (commencing with Section 3525), or Chapter 10.7
(commencing with Section 3540) of Division 4 of Title 1 as the
sessions relate to salaries, salary schedules, or compensation paid
in the form of fringe benefits. For the purposes enumerated in the
preceding sentence, a state body also may meet with a state
conciliator who has intervened in the proceedings.
   (18) (A) Prevent a state body from holding closed sessions to
consider matters posing a threat or potential threat of criminal or
terrorist activity against the personnel, property, buildings,
facilities, or equipment, including electronic data, owned, leased,
or controlled by the state body, where disclosure of these
considerations could compromise or impede the safety or security of
the personnel, property, buildings, facilities, or equipment,
including electronic data, owned, leased, or controlled by the state
body.
   (B) Notwithstanding any other provision of law, a state body, at
any regular or special meeting, may meet in a closed session pursuant
to subparagraph (A) upon a two-thirds vote of the members present at
the meeting.
   (C) After meeting in closed session pursuant to subparagraph (A),
the state body shall reconvene in open session prior to adjournment
and report that a closed session was held pursuant to subparagraph
(A), the general nature of the matters considered, and whether action
was taken in closed session.
   (D) After meeting in closed session pursuant to subparagraph (A),
the state body shall submit to the Legislative Analyst written
notification stating that it held this closed session, the general
reason or reasons for the closed session, the general nature of the
matters considered, and whether action was taken in closed session.
The Legislative Analyst shall retain for no less than four years
written notification received from a state body pursuant to this
subparagraph.
   (d) (1) Notwithstanding any other provision of law, a meeting of
the Public Utilities Commission at which the rates of entities under
the commission's jurisdiction are changed shall be open and public.
   (2) This article does not prevent the Public Utilities Commission
from holding closed sessions to deliberate on the institution of
proceedings, or disciplinary actions against a person or entity under
the jurisdiction of the commission.
   (e) (1) This article does not prevent a state body, based on the
advice of its legal counsel, from holding a closed session to confer
with, or receive advice from, its legal counsel regarding pending
litigation when discussion in open session concerning those matters
would prejudice the position of the state body in the litigation.
   (2) For purposes of this article, all expressions of the
lawyer-client privilege other than those provided in this subdivision
are hereby abrogated. This subdivision is the exclusive expression
of the lawyer-client privilege for purposes of conducting closed
session meetings pursuant to this article. For purposes of this
subdivision, litigation shall be considered pending when any of the
following circumstances exist:
   (A) An adjudicatory proceeding before a court, an administrative
body exercising its adjudicatory authority, a hearing officer, or an
arbitrator, to which the state body is a party has been initiated
formally.
   (B) (i) A point has been reached where, in the opinion of the
state body on the advice of its legal counsel, based on existing
facts and circumstances, there is a significant exposure to
litigation against the state body.
   (ii) Based on existing facts and circumstances, the state body is
meeting only to decide whether a closed session is authorized
pursuant to clause (i).
   (C) (i) Based on existing facts and circumstances, the state body
has decided to initiate or is deciding whether to initiate
litigation.
   (ii) The legal counsel of the state body shall prepare and submit
to it a memorandum stating the specific reasons and legal authority
for the closed session. If the closed session is pursuant to
paragraph (1), the memorandum shall include the title of the
litigation. If the closed session is pursuant to subparagraph (A) or
(B), the memorandum shall include the existing facts and
circumstances on which it is based. The legal counsel shall submit
the memorandum to the state body prior to the closed session, if
feasible, and in any case no later than one week after the closed
session. The memorandum shall be exempt from disclosure pursuant to
Section 6254.25.
   (iii) For purposes of this subdivision, "litigation" includes any
adjudicatory proceeding, including eminent domain, before a court,
administrative body exercising its adjudicatory authority, hearing
officer, or arbitrator.
   (iv) Disclosure of a memorandum required under this subdivision is
not a waiver of the lawyer-client privilege, as provided for under
Article 3 (commencing with Section 950) of Chapter 4 of Division 8 of
the Evidence Code.
   (f) In addition to subdivisions (a), (b), and (c), this article
does not do any of the following:
   (1) Prevent a state body operating under a joint powers agreement
for insurance pooling from holding a closed session to discuss a
claim for the payment of tort liability or public liability losses
incurred by the state body or a member agency under the joint powers
agreement.
   (2) Prevent the examining committee established by the State Board
of Forestry and Fire Protection, pursuant to Section 763 of the
Public Resources Code, from conducting a closed session to consider
disciplinary action against an individual professional forester prior
to the filing of an accusation against the forester pursuant to
Section 11503.
   (3) Prevent an administrative committee established by the
California Board of Accountancy pursuant to Section 5020 of the
Business and Professions Code from conducting a closed session to
consider disciplinary action against an individual accountant prior
to the filing of an accusation against the accountant pursuant to
Section 11503. This article does not prevent an examining committee
established by the California Board of Accountancy pursuant to
Section 5023 of the Business and Professions Code from conducting a
closed hearing to interview an individual applicant or accountant
regarding the applicant's qualifications.
   (4) Prevent a state body, as defined in subdivision (b) of Section
11121, from conducting a closed session to consider a matter that
properly could be considered in closed session by the state body the
authority of which it exercises.
   (5) Prevent a state body, as defined in subdivision (d) of Section
11121, from conducting a closed session to consider a matter that
properly could be considered in a closed session by the body defined
as a state body pursuant to subdivision (a) or (b) of Section 11121.
   (6) Prevent a state body, as defined in subdivision (c) of Section
11121, from conducting a closed session to consider a matter that
properly could be considered in a closed session by the state body it
advises.
   (7) Prevent the State Board of Equalization from holding closed
sessions for either of the following:
   (A) When considering matters pertaining to the appointment or
removal of the Executive Secretary of the State Board of
Equalization.
   (B) For the purpose of hearing confidential taxpayer appeals or
data, the public disclosure of which is prohibited by law.
   (8) Require the State Board of Equalization to disclose action
taken in closed session or documents executed in connection with that
action, the public disclosure of which is prohibited by law pursuant
to Sections 15619 and 15641 of this code and Sections 833, 7056,
8255, 9255, 11655, 30455, 32455, 38705, 38706, 43651, 45982, 46751,
50159, 55381, and 60609 of the Revenue and Taxation Code.
   (9) Prevent the California Earthquake Prediction Evaluation
Council, or other body appointed to advise the Director of the Office
of Emergency Services or the Governor concerning matters relating to
volcanic or earthquake predictions, from holding closed sessions
when considering the evaluation of possible predictions.
   (g) This article does not prevent either of the following:
   (1) The Teachers' Retirement Board of the State Teachers'
Retirement System or the Board of Administration of the Public
Employees' Retirement System from holding closed sessions when
considering matters pertaining to the recruitment, appointment,
employment, or removal of the chief executive officer or when
considering matters pertaining to the recruitment or removal of the
Chief Investment Officer of the State Teachers' Retirement System or
the Public Employees' Retirement System.
   (2) The Commission on Teacher Credentialing from holding closed
sessions when considering matters relating to the recruitment,
appointment, or removal of its executive director.
   (h) This article does not prevent the Board of Administration of
the Public Employees' Retirement System from holding closed sessions
when considering matters relating to the development of rates and
competitive strategy for plans offered pursuant to Chapter 15
(commencing with Section 21660) of Part 3 of Division 5 of Title 2.
   (i) This article does not prevent the Managed Risk Medical
Insurance Board from holding closed sessions when considering matters
related to the development of rates and contracting strategy for
entities contracting or seeking to contract with the board pursuant
to Part 6.2 (commencing with Section 12693), Part 6.3 (commencing
with Section 12695), Part 6.4 (commencing with Section 12699.50), or
Part 6.5 (commencing with Section 12700) of Division 2 of the
Insurance Code.
  SEC. 92.  Section 11549.2 of the Government Code is amended to
read:
   11549.2.  (a) Employees assigned to the security unit of the
Office of Technology Review, Oversight, and Security within the
Department of Finance, and the employees of the Office of Privacy
Protection within the Department of Consumer Affairs are transferred
to the office, within the State and Consumer Services Agency.
   (b) The status, position, and rights of an employee transferred
pursuant to this section shall not be affected by the transfer.
  SEC. 93.  Section 11549.5 of the Government Code is amended to
read:
   11549.5.  (a) There is hereby created in the office, the Office of
Privacy Protection. The purpose of the Office of Privacy Protection
shall be to protect the privacy of individuals' personal information
in a manner consistent with the California Constitution by
identifying consumer problems in the privacy area and facilitating
the development of fair information practices in adherence with the
Information Practices Act of 1977 (Chapter 1 (commencing with Section
1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code).
   (b) The Office of Privacy Protection shall inform the public of
potential options for protecting the privacy of, and avoiding the
misuse of, personal information.
   (c) The Office of Privacy Protection shall make recommendations to
organizations for privacy policies and practices that promote and
protect the interests of the consumers of this state.
   (d) The Office of Privacy Protection may promote voluntary and
mutually agreed upon nonbinding arbitration and mediation of
privacy-related disputes where appropriate.
   (e) The Office of Privacy Protection shall do all of the
following:
   (1) Receive complaints from individuals concerning a person
obtaining, compiling, maintaining, using, disclosing, or disposing of
personal information in a manner that may be potentially unlawful or
violate a stated privacy policy relating to that individual, and
provide advice, information, and referral, where available.
   (2) Provide information to consumers on effective ways of handling
complaints that involve violations of privacy-related laws,
including identity theft and identity fraud. If appropriate local,
state, or federal agencies are available to assist consumers with
those complaints, the office shall refer those complaints to those
agencies.
   (3) Develop information and educational programs and materials to
foster public understanding and recognition of the purposes of this
article.
   (4) Investigate and assist in the prosecution of identity theft
and other privacy-related crimes, and, as necessary, coordinate with
local, state, and federal law enforcement agencies in the
investigation of similar crimes.
   (5) Assist and coordinate in the training of local, state, and
federal law enforcement agencies regarding identity theft and other
privacy-related crimes, as appropriate.
   (6) The authority of the Office of Privacy Protection to adopt
regulations under this article shall be limited exclusively to those
regulations necessary and appropriate to implement subdivisions (b),
(c), (d), and (e).
  SEC. 94.  Section 11549.6 of the Government Code is amended to
read:
   11549.6.  This chapter shall not apply to the State Compensation
Insurance Fund, the Legislature, or the Legislative Data Center in
the Legislative Counsel Bureau.
  SEC. 95.  Section 11550 of the Government Code is amended to read:
   11550.  (a) Effective January 1, 1988, an annual salary of
ninety-one thousand fifty-four dollars ($91,054) shall be paid to
each of the following:
   (1) Director of Finance.
   (2) Secretary of Business, Transportation and Housing.
   (3) Secretary of the Resources Agency.
   (4) Secretary of California Health and Human Services.
   (5) Secretary of State and Consumer Services.
   (6) Commissioner of the California Highway Patrol.
   (7) Secretary of the Department of Corrections and Rehabilitation.

   (8) Secretary of Food and Agriculture.
   (9) Secretary of Veterans Affairs.
   (10) Secretary of Labor and Workforce Development.
   (11) State Chief Information Officer.
   (12) Secretary for Environmental Protection.
   (b) The annual compensation provided by this section shall be
increased in any fiscal year in which a general salary increase is
provided for state employees. The amount of the increase provided by
this section shall be comparable to, but shall not exceed, the
percentage of the general salary increases provided for state
employees during that fiscal year.
  SEC. 96.  Section 13959 of the Government Code is amended to read:
   13959.  (a) The board shall grant a hearing to an applicant who
believes he or she is entitled to compensation pursuant to this
chapter to contest a staff recommendation to deny compensation in
whole or in part.
   (b) The board shall notify the applicant not less than 10 days
prior to the date of the hearing. Notwithstanding Section 11123, if
the application that the board is considering involves either a crime
against a minor, a crime of sexual assault, or a crime of domestic
violence, the board may exclude from the hearing all persons other
than board members and members of its staff, the applicant for
benefits, a minor applicant's parents or guardians, the applicant's
representative, witnesses, and other persons of the applicant's
choice to provide assistance to the applicant during the hearing.
However, the board shall not exclude persons from the hearing if the
applicant or applicant's representative requests that the hearing be
open to the public.
   (c) At the hearing, the person seeking compensation shall have the
burden of establishing, by a preponderance of the evidence, the
elements for eligibility under Section 13955.
    (d) Except as otherwise provided by law, in making determinations
of eligibility for compensation and in deciding upon the amount of
compensation, the board shall apply the law in effect as of the date
an application was submitted.
   (e) The hearing shall be informal and need not be conducted
according to the technical rules relating to evidence and witnesses.
The board may rely on any relevant evidence if it is the sort of
evidence on which responsible persons are accustomed to rely in the
conduct of serious affairs, regardless of the existence of a common
law or statutory rule that might make improper the admission of the
evidence over objection in a civil action. The board may rely on
written reports prepared for the board, or other information
received, from public agencies responsible for investigating the
crime. If the applicant or the applicant's representative chooses not
to appear at the hearing, the board may act solely upon the
application for compensation, the staff's report, and other evidence
that appears in the record.
   (f) Hearings shall be held in various locations with the frequency
necessary to provide for the speedy adjudication of the
applications. If the applicant's presence is required at the hearing,
the board shall schedule the applicant's hearing in as convenient a
location as possible.
   (g) The board may delegate the hearing of applications to hearing
officers.
   (h) The decisions of the board shall be in writing. Copies of the
decisions shall be delivered to the applicant or to his or her
representative personally or sent to him or her by mail.
   (i) The board may order a reconsideration of all or part of a
decision on written request of the applicant. The board shall not
grant more than one request for reconsideration with respect to any
one decision on an application for compensation. The board shall not
consider any request for reconsideration filed with the board more
than 30 calendar days after the personal delivery or 60 calendar days
after the mailing of the original decision.
   (j) The board may order a reconsideration of all or part of a
decision on its own motion, at its discretion, at any time.
  SEC. 97.  Section 14838 of the Government Code is amended to read:
   14838.  In order to facilitate the participation of small
business, including microbusiness, in the provision of goods,
information technology, and services to the state, and in the
construction (including alteration, demolition, repair, or
improvement) of state facilities, the directors of the department and
other state agencies that enter those contracts, each within their
respective areas of responsibility, shall do all of the following:
   (a) Establish goals, consistent with those established by the
Office of Small Business Certification and Resources, for the extent
of participation of small businesses, including microbusinesses, in
the provision of goods, information technology, and services to the
state, and in the construction of state facilities.
   (b) Provide for small business preference, or nonsmall business
preference for bidders that provide for small business and
microbusiness subcontractor participation, in the award of contracts
for goods, information technology, services, and construction, as
follows:
   (1) In solicitations where an award is to be made to the lowest
responsible bidder meeting specifications, the preference to small
business and microbusiness shall be 5 percent of the lowest
responsible bidder meeting specifications. The preference to nonsmall
business bidders that provide for small business or microbusiness
subcontractor participation shall be, up to a maximum of 5 percent of
the lowest responsible bidder meeting specifications, determined
according to rules and regulations established by the Department of
General Services.
   (2) In solicitations where an award is to be made to the highest
scored bidder based on evaluation factors in addition to price, the
preference to small business or microbusiness shall be 5 percent of
the highest responsible bidder's total score. The preference to
nonsmall business bidders that provide for small business or
microbusiness subcontractor participation shall be up to a maximum 5
percent of the highest responsible bidder's total score, determined
according to rules and regulations established by the Department of
General Services.
   (3) The preferences under paragraphs (1) and (2) shall not be
awarded to a noncompliant bidder and shall not be used to achieve any
applicable minimum requirements.
   (4) The preference under paragraph (1) shall not exceed fifty
thousand dollars ($50,000) for any bid, and the combined cost of
preferences granted pursuant to paragraph (1) and any other provision
of law shall not exceed one hundred thousand dollars ($100,000). In
bids in which the state has reserved the right to make multiple
awards, this fifty thousand dollar ($50,000) maximum preference cost
shall be applied, to the extent possible, so as to maximize the
dollar participation of small businesses, including microbusinesses,
in the contract award.
   (c) Give special consideration to small businesses and
microbusinesses by both:
   (1) Reducing the experience required.
   (2) Reducing the level of inventory normally required.
   (d) Give special assistance to small businesses and
microbusinesses in the preparation and submission of the information
requested in Section 14310.
   (e) Under the authorization granted in Section 10163 of the Public
Contract Code, make awards, whenever feasible, to small business and
microbusiness bidders for each project bid upon within their
prequalification rating. This may be accomplished by dividing major
projects into subprojects so as to allow a small business or
microbusiness contractor to qualify to bid on these subprojects.
   (f) Small business and microbusiness bidders qualified in
accordance with this chapter shall have precedence over nonsmall
business bidders in that the application of a bidder preference for
which nonsmall business bidders may be eligible under this section or
any other provision of law shall not result in the denial of the
award to a small business or microbusiness bidder. In the event of a
precise tie between the low responsible bid of a bidder meeting
specifications of a small business or microbusiness, and the low
responsible bid of a bidder meeting the specifications of a disabled
veteran-owned small business or microbusiness, the contract shall be
awarded to the disabled veteran-owned small business or
microbusiness. This provision applies if the small business or
microbusiness bidder is the lowest responsible bidder, as well as if
the small business or microbusiness bidder is eligible for award as
the result of application of the small business and microbusiness
bidder preference granted by subdivision (b).
  SEC. 98.  Section 15820.104 of the Government Code is amended to
read:
   15820.104.  (a) The State Public Works Board may issue up to one
hundred forty-six million one hundred sixty thousand dollars
($146,160,000) in revenue bonds, negotiable notes, or negotiable bond
anticipation notes pursuant to this part, to finance the design and
construction for the project. The revenue bonds, negotiable notes, or
negotiable bond anticipation notes authorized in this chapter shall
reduce the amount of revenue bonds, negotiable notes, or negotiable
bond anticipation notes the board is authorized to issue pursuant to
subdivision (a) of Section 15819.403 for the construction authorized
by subdivision (c) of Section 15819.40. None of the provisions of
Chapter 3.2.1 (commencing with Section 15819.40) shall apply to the
project.
   (b) The department may borrow funds for project costs from the
Pooled Money Investment Account pursuant to Sections 16312 and 16313
or from any other appropriate source. In the event any of the revenue
bonds, notes, or bond anticipation notes authorized by this chapter
are not sold, the department shall commit a sufficient amount of its
support appropriation to repay loans made from the Pooled Money
Investment Account for an approved project.
   (c) The costs of financing include, but are not limited to,
interest during construction of the project, a reasonably required
reserve fund, and the cost of issuance of permanent financing.
   (d) The department and the board shall execute and deliver any and
all leases, contracts, agreements, or other documents necessary for
the sale of bonds or other financing for the project.
   (e) Proceeds of the revenue bonds, notes, or bond anticipation
notes may be used to reimburse the department for the costs of
preliminary plans, working drawings, and construction for the
project.
   (f) Notwithstanding Section 13340, funds derived pursuant to this
section are continuously appropriated for purposes of this chapter.
  SEC. 99.  Section 15820.105 of the Government Code is amended to
read:
   15820.105.  (a) Plans and specifications for the project shall
comply with applicable building codes.
   (b) The project is hereby deemed a "public work" project for
purposes of Title 15 (commencing with Section 3082) of Part 4 of
Division 3 of the Civil Code.
   (c) The provisions of Chapter 1 (commencing with Section 1720) of
Part 7 of Division 2 of the Labor Code shall apply to all public
works contracts entered into for the project.
   (d) Other than as provided in this section and Sections 15820.101
to 15820.104, inclusive, private sector methods may be used to
deliver the project. Specifically, the procurement and contracting
for the delivery of the project is not subject to the State Contract
Act (Part 2 (commencing with Section 10100) of Division 2 of the
Public Contract Code) or any other provision of California law
governing public procurement or public works projects.
  SEC. 100.  Section 19609 of the Government Code is amended to read:

   19609.  (a) For a demonstration project made permanent pursuant to
legislation operative on or after January 1, 2008, a department
participating in the demonstration project shall file a report on all
aspects of the demonstration project with the State Personnel Board.
The report shall include, but not be limited to, all of the
following:
   (1) The number of applicants.
   (2) The number of applicants that were hired.
   (3) The cost of the hiring process.
   (4) The number and nature of examination appeals.
   (5) The length of time to complete the hiring and testing process.

   (b) For a three-year period from the date that the demonstration
project becomes permanent, the department shall file the report
described in subdivision (a) on an annual basis. After the expiration
of the three-year period, the department shall file a report if a
report is requested by the State Personnel Board.
   (c) When the State Personnel Board receives a report described in
this section, the State Personnel Board may hold a public hearing to
provide for the exchange of information and an opportunity for public
comment about the demonstration project that is the subject of the
report.
  SEC. 101.  Section 27293 of the Government Code is amended to read:

   27293.  (a) (1) Except as otherwise provided in subdivision (b),
if an instrument intended for record is executed or certified in
whole or in part in a language other than English, the recorder shall
not accept the instrument for record.
   (2) (A) A translation in English of an instrument executed or
certified in whole or in part in a language other than English may be
presented to the county clerk for verification that the translation
was performed by a certified or registered court interpreter, as
described in Section 68561, or by an accredited translator registered
with the American Translators Association. The translation shall be
accompanied by a notarized declaration by the interpreter or
translator that the translation is true and accurate, and includes
the certification, qualification, or registration of the interpreter
or translator. The clerk shall consult an Internet Web site
maintained by the Judicial Council or the American Translators
Association in verifying the certification, qualification, or
registration of the interpreter or translator.
   (B) Upon verification that the translation was performed by an
interpreter or translator described in subparagraph (A), and that the
translation is accompanied by a notarized declaration as required
pursuant to subparagraph (A), the clerk shall duly make certification
of that verification under seal of the county, attach the
certification to the translation, and attach the certified
translation to the original instrument.
   (C) For this verification and certification, a fee of ten dollars
($10) shall be paid to the county clerk for each document submitted
for certification. The attached original instrument and certified
translation may be presented to the recorder, and, upon payment of
the usual fees, the recorder shall accept and permanently file the
instrument and record the certified translation. The recording of the
certified translation gives notice and is of the same effect as the
recording of an original instrument. Certified copies of the recorded
translation may be recorded in other counties, with the same effect
as the recording of the original translation, provided, however, that
in those counties where a photostatic or photographic method of
recording is employed, the whole instrument, including the foreign
language and the translation, may be recorded, and the original
instrument returned to the party leaving it for record or upon his or
her order.
   (b) The provisions of subdivision (a) do not apply to any
instrument offered for record that contains provisions in English and
a translation of the English provisions in a language other than
English, provided that the English provisions and the translation
thereof are specifically set forth in state or federal law.
   (c) The county clerk is not required to issue a translation
certificate if he or she is unable to confirm the certification,
registration, or accreditation of the translator, as required in
subdivision (a).
  SEC. 102.  Section 27361 of the Government Code is amended to read:

   27361.  (a) The fee for recording and indexing every instrument,
paper, or notice required or permitted by law to be recorded is four
dollars ($4) for recording the first page and three dollars ($3) for
each additional page, except the recorder may charge additional fees
as follows:
   (1) If the printing on printed forms is spaced more than nine
lines per vertical inch or more than 22 characters and spaces per
inch measured horizontally for not less than three inches in one
sentence, the recorder shall charge one dollar ($1) extra for each
page or sheet on which printing appears, except, however, the extra
charge shall not apply to printed words which are directive or
explanatory in nature for completion of the form or on vital
statistics forms. Fees collected under this paragraph are not subject
to subdivision (b) or (c).
   (2) If a page or sheet does not conform with the dimensions
described in subdivision (a) of Section 27361.5, the recorder shall
charge three dollars ($3) extra per page or sheet of the document.
The funds generated by the extra charge authorized under this
paragraph shall be available solely to support, maintain, improve,
and provide for the full operation for modernized creation,
retention, and retrieval of information in each county's system of
recorded documents. Fees collected under this paragraph are not
subject to subdivision (b) or (c).
   (b) One dollar ($1) of each three dollar ($3) fee for each
additional page shall be deposited in the county general fund.
   (c) Notwithstanding Section 68085, one dollar ($1) for recording
the first page and one dollar ($1) for each additional page shall be
available solely to support, maintain, improve, and provide for the
full operation for modernized creation, retention, and retrieval of
information in each county's system of recorded documents.
   (d) (1) In addition to all other fees authorized by this section,
a county recorder may charge a fee of one dollar ($1) for recording
the first page of every instrument, paper, or notice required or
permitted by law to be recorded, as authorized by each county's board
of supervisors. The funds generated by this fee shall be used only
by the county recorder collecting the fee for the purpose of
implementing a social security number truncation program pursuant to
Article 3.5 (commencing with Section 27300).
   (2) A county recorder shall not charge the fee described in
paragraph (1) after December 31, 2017, unless the county recorder has
received reauthorization by the county's board of supervisors. A
county recorder shall not seek reauthorization of the fee by the
board before June 1, 2017, or after December 31, 2017. In determining
the additional period of authorization, the board shall consider the
review described in paragraph (4).
   (3) Notwithstanding paragraph (2), a county recorder who, pursuant
to subdivision (c) of Section 27304, secures a revenue anticipation
loan, or other outside source of funding, for the implementation of a
social security number truncation program, may be authorized to
charge the fee described in paragraph (1) for a period not to exceed
the term of repayment of the loan or other outside source of funding.

   (4) A county board of supervisors that authorizes the fee
described in this subdivision shall require the county auditor to
conduct two reviews to verify that the funds generated by this fee
are used only for the purpose of the program, as described in Article
3.5 (commencing with Section 27300) and for conducting these
reviews. The reviews shall state the progress of the county recorder
in truncating recorded documents pursuant to subdivision (a) of
Section 27301, and shall estimate any ongoing costs to the county
recorder of complying with subdivisions (a) and (b) of Section 27301.
The board shall require that the first review be completed not
before June 1, 2012, or after December 31, 2013, and that the second
review be completed not before June 1, 2017, or after December 31,
2017. The reviews shall adhere to generally accepted accounting
standards, and the review results shall be made available to the
public.
  SEC. 103.  Section 31521.3 of the Government Code is amended to
read:
   31521.3.  (a) The board of supervisors may provide that the
fourth, fifth, sixth, eighth, ninth, and alternate retired members of
the board of retirement shall receive compensation for the review
and analysis of disability retirement cases. The compensation shall
be limited to the first time a case is considered by the board and
shall not exceed one hundred dollars ($100) per day. The compensation
shall be prorated for less than eight hours of work in a single day.

   (b) A board member compensated pursuant to subdivision (a) shall
certify to the retirement board, in a manner specified by the
retirement board, the number of hours spent reviewing disability
cases each month. The number of hours compensated under this section
shall not exceed 32 hours per month.
   (c) On or before March 31, 2010, and on or before March 31 in each
even-numbered year thereafter, the compensation limit established by
the board of supervisors pursuant to subdivision (a) shall be
adjusted biennially by the board of retirement to reflect any change
in the Consumer Price Index for the Los Angeles, Riverside, and
Orange County areas that has occurred in the previous two calendar
years, rounded to the nearest dollar.
   (d) This section shall apply only in a county of the first class,
as defined by Section 28020, as amended by Chapter 1204 of the
Statutes of 1971, and Section 28022, as amended by Chapter 43 of the
Statutes of 1961.
  SEC. 104.  Section 31739.33 of the Government Code is amended to
read:
   31739.33.  (a) Except as provided in subdivision (b), a retirement
allowance, optional death allowance, or annual death allowance,
including an allowance payable to a survivor of a member, payable to
or on account of any member of this system or of a superseded system
who has been or was retired for disability which did not on July 1,
1976, exceed five hundred dollars ($500) per month is hereby
increased as follows:
  Number of years of       Percentage of increase
   county or district      in monthly retirement
     service                     allowance
  25 or more years......            10%
  20-25 years...........             8%
  15-20 years...........             6%


   (b) No allowance shall be increased to more than five hundred
dollars ($500) per month pursuant to subdivision (a).
   This section shall not be operative in a county until such time as
the board of supervisors shall, by resolution adopted by majority
vote, make the provisions of this section applicable in that county.
  SEC. 105.  Section 53343.1 of the Government Code is amended to
read:
   53343.1.  A community facilities district formed after January 1,
1992, shall prepare, if requested by a person who resides in or owns
property in the district, within 120 days after the last day of each
fiscal year, a separate document titled an "Annual Report." The
district may charge a fee for the report not exceeding the actual
costs of preparing the report. The report shall include the following
information for the fiscal year:
   (a) The amount of special taxes collected for the year.
   (b) The amount of other moneys collected for the year and their
source, including interest earned.
   (c) The amount of moneys expended for the year.
   (d) A summary of the amount of moneys expended for the following:
   (1) Facilities, including property.
   (2) Services.
   (3) The costs of bonded indebtedness.
   (4) The costs of collecting the special tax under Section 53340.
   (5) Other administrative and overhead costs.
   (e) For moneys expended for facilities, including property, an
identification of the categories of each type of facility funded with
amounts expended in each category, including the total percentage of
the cost of each type of facility that was funded with bond proceeds
or special taxes.
   (f) For moneys expended for services, an identification of the
categories of each type of service funded with amounts expended in
each category, including the total percentage of the cost of each
type of service that was funded with bond proceeds or special taxes.
   (g) For moneys expended for other administrative costs, an
identification of each of these costs.
   (h) The annual report shall contain references to the relevant
sections of the resolution of formation of the district so that
interested persons may confirm that bond proceeds and special taxes
are being used for authorized purposes. The annual report shall be
made available to the public upon request.
  SEC. 106.  Section 53601 of the Government Code is amended to read:

   53601.  This section shall apply to a local agency that is a city,
a district, or other local agency that does not pool money in
deposits or investments with other local agencies, other than local
agencies that have the same governing body. However, Section 53635
shall apply to all local agencies that pool money in deposits or
investments with other local agencies that have separate governing
bodies. The legislative body of a local agency having moneys in a
sinking fund or moneys in its treasury not required for the immediate
needs of the local agency may invest any portion of the moneys that
it deems wise or expedient in those investments set forth below. A
local agency purchasing or obtaining any securities prescribed in
this section, in a negotiable, bearer, registered, or nonregistered
format, shall require delivery of the securities to the local agency,
including those purchased for the agency by financial advisers,
consultants, or managers using the agency's funds, by book entry,
physical delivery, or by third-party custodial agreement. The
transfer of securities to the counterparty bank's customer book entry
account may be used for book entry delivery.
   For purposes of this section, "counterparty" means the other party
to the transaction. A counterparty bank's trust department or
separate safekeeping department may be used for the physical delivery
of the security if the security is held in the name of the local
agency. Where this section specifies a percentage limitation for a
particular category of investment, that percentage is applicable only
at the date of purchase. Where this section does not specify a
limitation on the term or remaining maturity at the time of the
investment, no investment shall be made in any security, other than a
security underlying a repurchase or reverse repurchase agreement or
securities lending agreement authorized by this section, that at the
time of the investment has a term remaining to maturity in excess of
five years, unless the legislative body has granted express authority
to make that investment either specifically or as a part of an
investment program approved by the legislative body no less than
three months prior to the investment:
   (a) Bonds issued by the local agency, including bonds payable
solely out of the revenues from a revenue-producing property owned,
controlled, or operated by the local agency or by a department,
board, agency, or authority of the local agency.
   (b) United States Treasury notes, bonds, bills, or certificates of
indebtedness, or those for which the faith and credit of the United
States are pledged for the payment of principal and interest.
   (c) Registered state warrants or treasury notes or bonds of this
state, including bonds payable solely out of the revenues from a
revenue-producing property owned, controlled, or operated by the
state or by a department, board, agency, or authority of the state.
   (d) Registered treasury notes or bonds of any of the other 49
United States in addition to California, including bonds payable
solely out of the revenues from a revenue-producing property owned,
controlled, or operated by a state or by a department, board, agency,
or authority of any of the other 49 United States, in addition to
California.
   (e) Bonds, notes, warrants, or other evidences of indebtedness of
a local agency within this state, including bonds payable solely out
of the revenues from a revenue-producing property owned, controlled,
or operated by the local agency, or by a department, board, agency,
or authority of the local agency.
   (f) Federal agency or United States government-sponsored
enterprise obligations, participations, or other instruments,
including those issued by or fully guaranteed as to principal and
interest by federal agencies or United States government-sponsored
enterprises.
                                                                  (g)
Bankers' acceptances otherwise known as bills of exchange or time
drafts that are drawn on and accepted by a commercial bank. Purchases
of bankers' acceptances shall not exceed 180 days' maturity or 40
percent of the agency's moneys that may be invested pursuant to this
section. However, no more than 30 percent of the agency's moneys may
be invested in the bankers' acceptances of any one commercial bank
pursuant to this section.
   This subdivision does not preclude a municipal utility district
from investing moneys in its treasury in a manner authorized by the
Municipal Utility District Act (Division 6 (commencing with Section
11501) of the Public Utilities Code).
   (h) Commercial paper of "prime" quality of the highest ranking or
of the highest letter and number rating as provided for by a
nationally recognized statistical rating organization (NRSRO). The
entity that issues the commercial paper shall meet all of the
following conditions in either paragraph (1) or (2):
   (1) The entity meets the following criteria:
   (A) Is organized and operating in the United States as a general
corporation.
   (B) Has total assets in excess of five hundred million dollars
($500,000,000).
   (C) Has debt other than commercial paper, if any, that is rated "A"
or higher by an NRSRO.
   (2) The entity meets the following criteria:
   (A) Is organized within the United States as a special purpose
corporation, trust, or limited liability company.
   (B) Has programwide credit enhancements including, but not limited
to, overcollateralization, letters of credit, or a surety bond.
   (C) Has commercial paper that is rated "A-1" or higher, or the
equivalent, by an NRSRO.
   Eligible commercial paper shall have a maximum maturity of 270
days or less. Local agencies, other than counties or a city and
county, may invest no more than 25 percent of their moneys in
eligible commercial paper. Local agencies, other than counties or a
city and county, may purchase no more than 10 percent of the
outstanding commercial paper of any single issuer. Counties or a city
and county may invest in commercial paper pursuant to the
concentration limits in subdivision (a) of Section 53635.
   (i) Negotiable certificates of deposit issued by a nationally or
state-chartered bank, a savings association or a federal association
(as defined by Section 5102 of the Financial Code), a state or
federal credit union, or by a state-licensed branch of a foreign
bank. Purchases of negotiable certificates of deposit shall not
exceed 30 percent of the agency's moneys that may be invested
pursuant to this section. For purposes of this section, negotiable
certificates of deposit do not come within Article 2 (commencing with
Section 53630), except that the amount so invested shall be subject
to the limitations of Section 53638. The legislative body of a local
agency and the treasurer or other official of the local agency having
legal custody of the moneys are prohibited from investing local
agency funds, or funds in the custody of the local agency, in
negotiable certificates of deposit issued by a state or federal
credit union if a member of the legislative body of the local agency,
or a person with investment decisionmaking authority in the
administrative office manager's office, budget office,
auditor-controller's office, or treasurer's office of the local
agency also serves on the board of directors, or any committee
appointed by the board of directors, or the credit committee or the
supervisory committee of the state or federal credit union issuing
the negotiable certificates of deposit.
   (j) (1) Investments in repurchase agreements or reverse repurchase
agreements or securities lending agreements of securities authorized
by this section, as long as the agreements are subject to this
subdivision, including the delivery requirements specified in this
section.
   (2) Investments in repurchase agreements may be made, on an
investment authorized in this section, when the term of the agreement
does not exceed one year. The market value of securities that
underlie a repurchase agreement shall be valued at 102 percent or
greater of the funds borrowed against those securities and the value
shall be adjusted no less than quarterly. Since the market value of
the underlying securities is subject to daily market fluctuations,
the investments in repurchase agreements shall be in compliance if
the value of the underlying securities is brought back up to 102
percent no later than the next business day.
   (3) Reverse repurchase agreements or securities lending agreements
may be utilized only when all of the following conditions are met:
   (A) The security to be sold using a reverse repurchase agreement
or securities lending agreement has been owned and fully paid for by
the local agency for a minimum of 30 days prior to sale.
   (B) The total of all reverse repurchase agreements and securities
lending agreements on investments owned by the local agency does not
exceed 20 percent of the base value of the portfolio.
   (C) The agreement does not exceed a term of 92 days, unless the
agreement includes a written codicil guaranteeing a minimum earning
or spread for the entire period between the sale of a security using
a reverse repurchase agreement or securities lending agreement and
the final maturity date of the same security.
   (D) Funds obtained or funds within the pool of an equivalent
amount to that obtained from selling a security to a counterparty
using a reverse repurchase agreement or securities lending agreement
shall not be used to purchase another security with a maturity longer
than 92 days from the initial settlement date of the reverse
repurchase agreement or securities lending agreement, unless the
reverse repurchase agreement or securities lending agreement includes
a written codicil guaranteeing a minimum earning or spread for the
entire period between the sale of a security using a reverse
repurchase agreement or securities lending agreement and the final
maturity date of the same security.
   (4) (A) Investments in reverse repurchase agreements, securities
lending agreements, or similar investments in which the local agency
sells securities prior to purchase with a simultaneous agreement to
repurchase the security may be made only upon prior approval of the
governing body of the local agency and shall be made only with
primary dealers of the Federal Reserve Bank of New York or with a
nationally or state-chartered bank that has or has had a significant
banking relationship with a local agency.
   (B) For purposes of this chapter, "significant banking
relationship" means any of the following activities of a bank:
   (i) Involvement in the creation, sale, purchase, or retirement of
a local agency's bonds, warrants, notes, or other evidence of
indebtedness.
   (ii) Financing of a local agency's activities.
   (iii) Acceptance of a local agency's securities or funds as
deposits.
   (5) (A) "Repurchase agreement" means a purchase of securities by
the local agency pursuant to an agreement by which the counterparty
seller will repurchase the securities on or before a specified date
and for a specified amount and the counterparty will deliver the
underlying securities to the local agency by book entry, physical
delivery, or by third-party custodial agreement. The transfer of
underlying securities to the counterparty bank's customer book-entry
account may be used for book-entry delivery.
   (B) "Securities," for purposes of repurchase under this
subdivision, means securities of the same issuer, description, issue
date, and maturity.
   (C) "Reverse repurchase agreement" means a sale of securities by
the local agency pursuant to an agreement by which the local agency
will repurchase the securities on or before a specified date and
includes other comparable agreements.
   (D) "Securities lending agreement" means an agreement under which
a local agency agrees to transfer securities to a borrower who, in
turn, agrees to provide collateral to the local agency. During the
term of the agreement, both the securities and the collateral are
held by a third party. At the conclusion of the agreement, the
securities are transferred back to the local agency in return for the
collateral.
   (E) For purposes of this section, the base value of the local
agency's pool portfolio shall be that dollar amount obtained by
totaling all cash balances placed in the pool by all pool
participants, excluding any amounts obtained through selling
securities by way of reverse repurchase agreements, securities
lending agreements, or other similar borrowing methods.
   (F) For purposes of this section, the spread is the difference
between the cost of funds obtained using the reverse repurchase
agreement and the earnings obtained on the reinvestment of the funds.

   (k) Medium-term notes, defined as all corporate and depository
institution debt securities with a maximum remaining maturity of five
years or less, issued by corporations organized and operating within
the United States or by depository institutions licensed by the
United States or any state and operating within the United States.
Notes eligible for investment under this subdivision shall be rated
"A" or better by an NRSRO. Purchases of medium-term notes shall not
include other instruments authorized by this section and may not
exceed 30 percent of the agency's moneys that may be invested
pursuant to this section.
   (l) (1) Shares of beneficial interest issued by diversified
management companies that invest in the securities and obligations as
authorized by subdivision (a) to (j), inclusive, or subdivisions (m)
or (n) and that comply with the investment restrictions of this
article and Article 2 (commencing with Section 53630). However,
notwithstanding these restrictions, a counterparty to a reverse
repurchase agreement or securities lending agreement is not required
to be a primary dealer of the Federal Reserve Bank of New York if the
company's board of directors finds that the counterparty presents a
minimal risk of default, and the value of the securities underlying a
repurchase agreement or securities lending agreement may be 100
percent of the sales price if the securities are marked to market
daily.
   (2) Shares of beneficial interest issued by diversified management
companies that are money market funds registered with the Securities
and Exchange Commission under the Investment Company Act of 1940 (15
U.S.C. Sec. 80a-1 et seq.).
   (3) If investment is in shares issued pursuant to paragraph (1),
the company shall have met either of the following criteria:
   (A) Attained the highest ranking or the highest letter and
numerical rating provided by not less than two NRSROs.
   (B) Retained an investment adviser registered or exempt from
registration with the Securities and Exchange Commission with not
less than five years' experience investing in the securities and
obligations authorized by subdivisions (a) to (j), inclusive, or
subdivision (m) or (n) and with assets under management in excess of
five hundred million dollars ($500,000,000).
   (4) If investment is in shares issued pursuant to paragraph (2),
the company shall have met either of the following criteria:
   (A) Attained the highest ranking or the highest letter and
numerical rating provided by not less than two NRSROs.
   (B) Retained an investment adviser registered or exempt from
registration with the Securities and Exchange Commission with not
less than five years' experience managing money market mutual funds
with assets under management in excess of five hundred million
dollars ($500,000,000).
   (5) The purchase price of shares of beneficial interest purchased
pursuant to this subdivision shall not include commission that the
companies may charge and shall not exceed 20 percent of the agency's
moneys that may be invested pursuant to this section. However, no
more than 10 percent of the agency's funds may be invested in shares
of beneficial interest of any one mutual fund pursuant to paragraph
(1).
   (m) Moneys held by a trustee or fiscal agent and pledged to the
payment or security of bonds or other indebtedness, or obligations
under a lease, installment sale, or other agreement of a local
agency, or certificates of participation in those bonds,
indebtedness, or lease installment sale, or other agreements, may be
invested in accordance with the statutory provisions governing the
issuance of those bonds, indebtedness, or lease installment sale, or
other agreement, or to the extent not inconsistent therewith or if
there are no specific statutory provisions, in accordance with the
ordinance, resolution, indenture, or agreement of the local agency
providing for the issuance.
   (n) Notes, bonds, or other obligations that are at all times
secured by a valid first priority security interest in securities of
the types listed by Section 53651 as eligible securities for the
purpose of securing local agency deposits having a market value at
least equal to that required by Section 53652 for the purpose of
securing local agency deposits. The securities serving as collateral
shall be placed by delivery or book entry into the custody of a trust
company or the trust department of a bank that is not affiliated
with the issuer of the secured obligation, and the security interest
shall be perfected in accordance with the requirements of the Uniform
Commercial Code or federal regulations applicable to the types of
securities in which the security interest is granted.
   (o) A mortgage passthrough security, collateralized mortgage
obligation, mortgage-backed or other pay-through bond, equipment
lease-backed certificate, consumer receivable passthrough
certificate, or consumer receivable-backed bond of a maximum of five
years' maturity. Securities eligible for investment under this
subdivision shall be issued by an issuer having an "A" or higher
rating for the issuer's debt as provided by an NRSRO and rated in a
rating category of "AA" or its equivalent or better by an NRSRO.
Purchase of securities authorized by this subdivision may not exceed
20 percent of the agency's surplus moneys that may be invested
pursuant to this section.
   (p) Shares of beneficial interest issued by a joint powers
authority organized pursuant to Section 6509.7 that invests in the
securities and obligations authorized in subdivisions (a) to (n),
inclusive. Each share shall represent an equal proportional interest
in the underlying pool of securities owned by the joint powers
authority. To be eligible under this section, the joint powers
authority issuing the shares shall have retained an investment
adviser that meets all of the following criteria:
   (1) The adviser is registered or exempt from registration with the
Securities and Exchange Commission.
   (2) The adviser has not less than five years of experience
investing in the securities and obligations authorized in
subdivisions (a) to (n), inclusive.
   (3) The adviser has assets under management in excess of five
hundred million dollars ($500,000,000).
  SEC. 107.  Section 56100.1 of the Government Code is amended to
read:
   56100.1.  A commission may require, through the adoption of
written policies and procedures, the disclosure of contributions, as
defined in Section 82015, expenditures, as defined in Section 82025,
and independent expenditures, as defined in Section 82031, made in
support of or opposition to a proposal. Disclosure shall be made
either to the commission's executive officer, in which case it shall
be posted on the commission's Internet Web site, if applicable, or to
the board of supervisors of the county in which the commission is
located, which may designate a county officer to receive the
disclosure. Disclosure pursuant to a requirement under the authority
provided in this section shall be in addition to any disclosure
otherwise required by Section 56700.1, the Political Reform Act of
1974 (Title 9 (commencing with Section 81000)), or local ordinance.
  SEC. 108.  Section 56700.1 of the Government Code is amended to
read:
   56700.1.  Expenditures for political purposes related to a
proposal for a change of organization or reorganization that will be
submitted to a commission pursuant to this part, and contributions in
support of or in opposition to those proposals, shall be disclosed
and reported to the commission to the same extent and subject to the
same requirements of the Political Reform Act of 1974 (Title 9
(commencing with Section 81000)) as provided for local initiative
measures.
  SEC. 109.  Section 57009 of the Government Code is amended to read:

   57009.  Expenditures for political purposes related to proceedings
for a change of organization or reorganization that will be
conducted pursuant to this part, and contributions in support of or
in opposition to those proceedings, shall be disclosed and reported
to the commission to the same extent and subject to the same
requirements of the Political Reform Act of 1974 (Title 9 (commencing
with Section 81000)) as provided for local initiative measures.
  SEC. 110.  Section 65007 of the Government Code is amended to read:

   65007.  As used in this title, the following terms have the
following meanings, unless the context requires otherwise:
   (a) "Adequate progress" means all of the following:
   (1) The total project scope, schedule, and cost of the completed
flood protection system have been developed to meet the appropriate
standard of protection.
   (2) Revenues sufficient to fund each year of the project schedule
developed in paragraph (1) have been identified and, in any given
year and consistent with that schedule, at least 90 percent of the
revenues scheduled to have been received by that year have been
appropriated and are currently being expended.
   (3) Critical features of the flood protection system are under
construction, and each critical feature is progressing as indicated
by the actual expenditure of the construction budget funds.
   (4) The city or county has not been responsible for a significant
delay in the completion of the system.
   (5) The local flood management agency shall provide the Department
of Water Resources and the Central Valley Flood Protection Board
with the information specified in this subdivision sufficient to
determine substantial completion of the required flood protection.
The local flood management agency shall annually report to the
Central Valley Flood Protection Board on the efforts in working
toward completion of the flood protection system.
   (b) "Central Valley Flood Protection Plan" has the same meaning as
that set forth in Section 9612 of the Water Code.
   (c) "Developed area" has the same meaning as that set forth in
Section 59.1 of Title 44 of the Code of Federal Regulations.
   (d) "Flood hazard zone" means an area subject to flooding that is
delineated as either a special hazard area or an area of moderate
hazard on an official flood insurance rate map issued by the Federal
Emergency Management Agency. The identification of flood hazard zones
does not imply that areas outside the flood hazard zones, or uses
permitted within flood hazard zones, will be free from flooding or
flood damage.
   (e) "Nonurbanized area" means a developed area or an area outside
a developed area in which there are fewer than 10,000 residents.
   (f) "Project levee" means any levee that is part of the facilities
of the State Plan of Flood Control.
   (g) "Sacramento-San Joaquin Valley" means lands in the bed or
along or near the banks of the Sacramento River or San Joaquin River,
or their tributaries or connected therewith, or upon any land
adjacent thereto, or within the overflow basins thereof, or upon land
susceptible to overflow therefrom. The Sacramento-San Joaquin Valley
does not include lands lying within the Tulare Lake basin, including
the Kings River.
   (h) "State Plan of Flood Control" has the same meaning as that set
forth in subdivision (j) of Section 5096.805 of the Public Resources
Code.
   (i) "Urban area" means a developed area in which there are 10,000
residents or more.
   (j) "Urbanizing area" means a developed area or an area outside a
developed area that is planned or anticipated to have 10,000
residents or more within the next 10 years.
   (k) "Urban level of flood protection" means the level of
protection that is necessary to withstand flooding that has a
1-in-200 chance of occurring in any given year using criteria
consistent with, or developed by, the Department of Water Resources.
  SEC. 111.  Section 65865.5 of the Government Code is amended to
read:
   65865.5.  (a) Notwithstanding any other provision of law, after
the amendments required by Sections 65302.9 and 65860.1 have become
effective, the legislative body of a city or county within the
Sacramento-San Joaquin Valley shall not enter into a development
agreement for property that is located within a flood hazard zone
unless the city or county finds, based on substantial evidence in the
record, one of the following:
   (1) The facilities of the State Plan of Flood Control or other
flood management facilities protect the property to the urban level
of flood protection in urban and urbanizing areas or the national
Federal Emergency Management Agency standard of flood protection in
nonurbanized areas.
   (2) The city or county has imposed conditions on the development
agreement that will protect the property to the urban level of flood
protection in urban and urbanizing areas or the national Federal
Emergency Management Agency standard of flood protection in
nonurbanized areas.
   (3) The local flood management agency has made adequate progress
on the construction of a flood protection system that will result in
flood protection equal to or greater than the urban level of flood
protection in urban or urbanizing areas or the national Federal
Emergency Management Agency standard of flood protection in
nonurbanized areas for property located within a flood hazard zone,
intended to be protected by the system. For urban and urbanizing
areas protected by project levees, the urban level of flood
protection shall be achieved by 2025.
   (b) The effective date of amendments referred to in this section
shall be the date upon which the statutes of limitation specified in
subdivision (c) of Section 65009 have run or, if the amendments and
any associated environmental documents are challenged in court, the
validity of the amendments and any associated environmental documents
has been upheld in a final decision.
   (c) This section does not change or diminish existing requirements
of local flood plain management laws, ordinances, resolutions, or
regulations necessary to local agency participation in the national
flood insurance program.
  SEC. 112.  Section 65917.5 of the Government Code is amended to
read:
   65917.5.  (a) As used in this section, the following terms shall
have the following meanings:
   (1) "Child care facility" means a facility installed, operated,
and maintained under this section for the nonresidential care of
children as defined under applicable state licensing requirements for
the facility.
   (2) "Density bonus" means a floor area ratio bonus over the
otherwise maximum allowable density permitted under the applicable
zoning ordinance and land use elements of the general plan of a city,
including a charter city, city and county, or county of:
   (A) A maximum of five square feet of floor area for each one
square foot of floor area contained in the child care facility for
existing structures.
   (B) A maximum of 10 square feet of floor area for each one square
foot of floor area contained in the child care facility for new
structures.
   For purposes of calculating the density bonus under this section,
both indoor and outdoor square footage requirements for the child
care facility as set forth in applicable state child care licensing
requirements shall be included in the floor area of the child care
facility.
   (3) "Developer" means the owner or other person, including a
lessee, having the right under the applicable zoning ordinance of a
city council, including a charter city council, city and county board
of supervisors, or county board of supervisors to make an
application for development approvals for the development or
redevelopment of a commercial or industrial project.
   (4) "Floor area" means as to a commercial or industrial project,
the floor area as calculated under the applicable zoning ordinance of
a city council, including a charter city council, city and county
board of supervisors, or county board of supervisors and as to a
child care facility, the total area contained within the exterior
walls of the facility and all outdoor areas devoted to the use of the
facility in accordance with applicable state child care licensing
requirements.
   (b) A city council, including a charter city council, city and
county board of supervisors, or county board of supervisors may
establish a procedure by ordinance to grant a developer of a
commercial or industrial project, containing at least 50,000 square
feet of floor area, a density bonus when that developer has set aside
at least 2,000 square feet of floor area and 3,000 outdoor square
feet to be used for a child care facility. The granting of a bonus
shall not preclude a city council, including a charter city council,
city and county board of supervisors, or county board of supervisors
from imposing necessary conditions on the project or on the
additional square footage. Projects constructed under this section
shall conform to height, setback, lot coverage, architectural review,
site plan review, fees, charges, and other health, safety, and
zoning requirements generally applicable to construction in the zone
in which the property is located. A consortium with more than one
developer may be permitted to achieve the threshold amount for the
available density bonus with each developer's density bonus equal to
the percentage participation of the developer. This facility may be
located on the project site or may be located offsite as agreed upon
by the developer and local agency. If the child care facility is not
located on the site of the project, the local agency shall determine
whether the location of the child care facility is appropriate and
whether it conforms with the intent of this section. The child care
facility shall be of a size to comply with all state licensing
requirements in order to accommodate at least 40 children.
   (c) The developer may operate the child care facility itself or
may contract with a licensed child care provider to operate the
facility. In all cases, the developer shall show ongoing coordination
with a local child care resource and referral network or local
governmental child care coordinator in order to qualify for the
density bonus.
                                             (d) If the developer
uses space allocated for child care facility purposes, in accordance
with subdivision (b), for purposes other than for a child care
facility, an assessment based on the square footage of the project
may be levied and collected by the city council, including a charter
city council, city and county board of supervisors, or county board
of supervisors. The assessment shall be consistent with the market
value of the space. If the developer fails to have the space
allocated for the child care facility within three years, from the
date upon which the first temporary certificate of occupancy is
granted, an assessment based on the square footage of the project may
be levied and collected by the city council, including a charter
city council, city and county board of supervisors, or county board
of supervisors in accordance with procedures to be developed by the
legislative body of the city council, including a charter city
council, city and county board of supervisors, or county board of
supervisors. The assessment shall be consistent with the market value
of the space. A penalty levied against a consortium of developers
shall be charged to each developer in an amount equal to the
developer's percentage square feet participation. Funds collected
pursuant to this subdivision shall be deposited by the city council,
including a charter city council, city and county board of
supervisors, or county board of supervisors into a special account to
be used for child care services or child care facilities.
   (e) Once the child care facility has been established, prior to
the closure, change in use, or reduction in the physical size of, the
facility, the city, city council, including a charter city council,
city and county board of supervisors, or county board of supervisors
shall be required to make a finding that the need for child care is
no longer present, or is not present to the same degree as it was at
the time the facility was established.
   (f) The requirements of Chapter 5 (commencing with Section 66000)
and of the amendments made to Sections 53077, 54997, and 54998 by
Chapter 1002 of the Statutes of 1987 shall not apply to actions taken
in accordance with this section.
   (g) This section shall not apply to a voter-approved ordinance
adopted by referendum or initiative.
  SEC. 113.  Section 65962 of the Government Code is amended to read:

   65962.  (a) Notwithstanding any other provision of law, after the
amendments required by Sections 65302.9 and 65860.1 have become
effective, each city and county within the Sacramento-San Joaquin
Valley shall not approve a discretionary permit or other
discretionary entitlement, or a ministerial permit that would result
in the construction of a new residence, for a project that is located
within a flood hazard zone unless the city or county finds, based on
substantial evidence in the record, one of the following:
   (1) The facilities of the State Plan of Flood Control or other
flood management facilities protect the project to the urban level of
flood protection in urban and urbanizing areas or the national
Federal Emergency Management Agency standard of flood protection in
nonurbanized areas.
   (2) The city or county has imposed conditions on the permit or
discretionary entitlement that will protect the project to the urban
level of flood protection in urban and urbanizing areas or the
national Federal Emergency Management Agency standard of flood
protection in nonurbanized areas.
   (3) The local flood management agency has made adequate progress
on the construction of a flood protection system which will result in
flood protection equal to or greater than the urban level of flood
protection in urban or urbanizing areas or the national Federal
Emergency Management Agency standard of flood protection in
nonurbanized areas for property located within a flood hazard zone,
intended to be protected by the system. For urban and urbanizing
areas protected by project levees, the urban level of flood
protection shall be achieved by 2025.
   (b) The effective date of amendments referred to in this section
shall be the date upon which the statutes of limitation specified in
subdivision (c) of Section 65009 have run or, if the amendments and
any associated environmental documents are challenged in court, the
validity of the amendments and any associated environmental documents
has been upheld in a final decision.
   (c) This section does not change or diminish existing requirements
of local flood plain management laws, ordinances, resolutions, or
regulations necessary to local agency participation in the national
flood insurance program.
  SEC. 114.  Section 66474.5 of the Government Code is amended to
read:
   66474.5.  (a) Notwithstanding any other provision of law, after
the amendments required by Sections 65302.9 and 65860.1 have become
effective, the legislative body of each city and county within the
Sacramento-San Joaquin Valley shall deny approval of a tentative map,
or a parcel map for which a tentative map was not required, for a
subdivision that is located within a flood hazard zone unless the
city or county finds, based on substantial evidence in the record,
one of the following:
   (1) The facilities of the State Plan of Flood Control or other
flood management facilities protect the subdivision to the urban
level of flood protection in urban and urbanizing areas or the
national Federal Emergency Management Agency standard of flood
protection in nonurbanized areas.
   (2) The city or county has imposed conditions on the subdivision
that will protect the project to the urban level of flood protection
in urban and urbanizing areas or the national Federal Emergency
Management Agency standard of flood protection in nonurbanized areas.

   (3) The local flood management agency has made adequate progress
on the construction of a flood protection system which will result in
flood protection equal to or greater than the urban level of flood
protection in urban or urbanizing areas or the national Federal
Emergency Management Agency standard of flood protection in
nonurbanized areas for property located within a flood hazard zone,
intended to be protected by the system. For urban and urbanizing
areas protected by project levees, the urban level of flood
protection shall be achieved by 2025.
   (b) The effective date of amendments referred to in this section
shall be the date upon which the statutes of limitation specified in
subdivision (c) of Section 65009 have run or, if the amendments and
any associated environmental documents are challenged in court, the
validity of the amendments and any associated environmental documents
has been upheld in a final decision.
   (c) This section does not change or diminish existing requirements
of local flood plain management laws, ordinances, resolutions, or
regulations necessary to local agency participation in the national
flood insurance program.
  SEC. 115.  Section 66474.62 of the Government Code is amended to
read:
   66474.62.  In cities having a population of more than 2,800,000, a
legislative body shall not deny approval of a final subdivision map
pursuant to Section 66474.61 if it, the advisory agency, or the
appeal board has previously approved a tentative map for the proposed
subdivision and if it finds that the final map is in substantial
compliance with the previously approved tentative map and with the
conditions to the approval thereof.
  SEC. 116.  Section 66540.1 of the Government Code is amended to
read:
   66540.1.  The Legislature hereby finds and declares all of the
following:
   (a) In 1999, based on the findings and analyses in a study
sponsored by the Bay Area Council, the Legislature created the San
Francisco Bay Area Water Transit Authority for purposes of preparing
a bay area water transit implementation and operations plan and
operating a comprehensive regional public water transportation
system. In 2002, after two years of study, public hearings,
collaboration with existing bay area transit and public
transportation ferry service providers, and peer review, the San
Francisco Bay Area Water Transit Authority submitted the required
plan to the Legislature. The plan included rationale for expanded
ferries, ridership projections and routes, potential terminal
locations, capital, operating and maintenance costs, vessel
specification, and emergency and safety response capabilities.
   (b) While the efforts of the existing San Francisco Bay Area Water
Transit Authority to develop a regional water transit plan are
commendable, the country has seen several significant disasters,
including the 9/11 tragedy and Hurricane Katrina, which have
emphasized the need for coordinated emergency response. From the
lessons learned from those events, it is apparent that the bay area's
current emergency response infrastructure is not sufficient to
respond to emergencies of the magnitude witnessed in the past few
years and anticipated in the future.
   (c) In 2006, the Bay Area Council sponsored a study on the role a
comprehensive public water transportation system would play in the
bay area's emergency response infrastructure. The 2006 study found
that a comprehensive water transportation system is vital to
emergency preparedness and response for the region. If bridges,
roads, highways, tunnels, and trains are out of service as a result
of an emergency, only the waters of the bay are certain to remain
open for traffic. However, current infrastructure and equipment
capabilities are grossly inadequate. Ferry terminals exist in only a
few locations on the bay, and the vessel fleet lacks the capacity to
make up for even one out-of-service bridge. The few vessels that
exist are in the hands of many different public and private owners
and operators, and there is no detailed plan or identified leader to
activate and coordinate them.
   (d) The study further urged that action be taken immediately to
strengthen and expand the regional public water transportation system
so that the bay area would be prepared in the event of a
catastrophic emergency. The San Francisco Bay area is almost certain
to experience moderate to severe earthquakes in the foreseeable
future. A major earthquake or a series of earthquakes on any of the
region's faults would have the potential of closing thousands of area
roads and rendering some or all transbay bridges and mass transit
lines impassable. With the regional transportation system disabled,
first responders would be unable to help tens of thousands of
homeless, injured, and starving victims. A failure of transportation
would be particularly devastating to the most vulnerable of our
population, the elderly, children, and the poor. The loss of any
portion of the regional transportation system, from either a natural
or manmade disaster, would place lives and property at risk and would
seriously undermine the San Francisco Bay area economy.
   (e) It is the responsibility of the state to protect and preserve
the right of its citizens to a safe and peaceful existence. To
accomplish this goal and to minimize the destructive impact of
disasters and other massive emergencies, the actions of numerous
public agencies must be coordinated to effectively manage all four
phases of emergency activity: preparedness, mitigation, response, and
recovery. It is a matter of statewide interest to establish an
expanded and coordinated regional water transportation system to
provide necessary security, flexibility, and mobility for disaster
response and recovery in the San Francisco Bay area. This transcends
any local interest, and requires a single governmental entity with
appropriate powers and scope of authority to serve this statewide
interest.
   (f) As emergencies and other catastrophic events are certain (only
the timing is unpredictable), it is crucial for immediate action to
be taken to develop and implement these emergency response
strategies. It is not only impractical, but rather impossible, to
cobble together an emergency water transportation system after the
fact. It is a task of years, not months, to make the real changes and
create the essential infrastructure for an integrated and
comprehensive water transit emergency system. In light of the
ever-present threat, it is imperative to begin this crucial effort
without delay.
   (g) The public interest requires swift action and steadfast
resolve to prepare for the coming earthquakes, as well as other
emergencies, with the speed and determination that is due for a
threat of this magnitude. The water transit emergency response and
recovery system must be fully implemented as quickly as possible, as
if the lives of bay area residents depend on it, because they do.
   (h) It is a matter of statewide interest to stimulate the maximum
use of the San Francisco Bay for emergency response and recovery. The
geographical situation of the San Francisco Bay makes it ideal for
emergency response and recovery, but at the same time prevents the
full utilization of the bay by acting as a physical barrier to an
effective transportation system between the various jurisdictions
surrounding the bay. Only a specially created local entity of
regional government can freely operate in the numerous individual
units of county, city and county, and city governments located in the
area. In order to protect the lives and livelihoods of the bay area,
the Legislature in this act establishes a new governmental entity
specifically charged and empowered with the responsibility to plan,
implement, and manage these critical services and facilities, as a
matter of the utmost urgency.
  SEC. 117.  Section 66540.9 of the Government Code is amended to
read:
   66540.9.  In order to properly plan and provide for emergency
water transportation services and facilities, the authority shall
have the authority to plan, develop, and operate all aspects of water
transportation facilities within the bay area region, including, but
not limited to, the location and development of terminals, parking
lots and structures, and all other facilities and services necessary
to serve passengers and other customers of the water transportation
services system.
  SEC. 118.  Section 66540.10 of the Government Code is amended to
read:
   66540.10.  The San Francisco Bay Area Water Transit Authority
shall transfer the title and ownership of all property within its
control and ownership to the authority. Funds necessary for the
establishment and organization of the authority, as determined by the
board, shall be transferred immediately upon request by the
authority. All other transfers shall be consistent with the
transition plan required under subdivision (b) of Section 66540.32
and shall include, but not be limited to, all of the following:
   (a) All real and personal property, including, but not limited to,
all terminals, ferries, vehicles or facilities, parking facilities
for passengers and employees, and related buildings and facilities
convenient or necessary to operate, support, maintain, and manage the
water transportation services system and its services to customers.
   (b) All contracts with tenants, concessionaires, leaseholders, and
others.
   (c) All financial obligations secured by revenues and fees
generated from the operations of the water transportation services
system, including, but not limited to, bonded indebtedness associated
with the water transportation services system.
   (d) All financial reserves, including, but not limited to, sinking
funds and other credits.
   (e) All office equipment, including, but not limited to,
computers, records and files, and software required for financial
management, personnel management, and accounting and inventory
systems.
  SEC. 119.  Section 66540.12 of the Government Code is amended to
read:
   66540.12.  (a) The authority shall be governed by a board composed
of five members, as follows:
   (1) Three members shall be appointed by the Governor, subject to
confirmation by the Senate. The Governor shall make the initial
appointment of these members of the board no later than January 11,
2008.
   (2) One member shall be appointed by the Senate Committee on
Rules.
   (3) One member shall be appointed by the Speaker of the Assembly.
   (b) Each member of the board shall be a resident of a county in
the bay area region.
   (c) Public officers associated with an area of government,
including planning or water, whether elected or appointed, may be
appointed to serve contemporaneously as members of the board. A local
jurisdiction or agency shall not have more than one representative
on the board of the authority.
   (d) The Governor shall designate one member as the chair of the
board and one member as the vice chair of the board.
   (e) The term of a member of the board shall be six years.
   (f) Vacancies shall be filled immediately by the appointing power
for the unexpired portion of the terms in which they occur.
  SEC. 120.  Section 66540.32 of the Government Code is amended to
read:
   66540.32.  (a) The authority shall create and adopt, on or before
July 1, 2009, an emergency water transportation system management
plan for water transportation services in the bay area region in the
event that bridges, highways, and other facilities are rendered
wholly or significantly inoperable.
   (b) The authority shall create and adopt, on or before January 1,
2009, a transition plan to facilitate the transfer of existing public
transportation ferry services within the bay area region to the
authority pursuant to this title. In the preparation of the
transition plan, priority shall be given to ensuring continuity in
the programs, services, and activities of existing public
transportation ferry services.
   (c) In developing the plans described in subdivisions (a) and (b),
the authority shall cooperate to the fullest extent possible with
the Metropolitan Transportation Commission, the state Office of
Emergency Services, the Association of Bay Area Governments, and the
San Francisco Bay Conservation and Development Commission, and shall,
to the fullest extent possible, coordinate its planning with local
agencies, including those local agencies that operated, or contracted
for the operation of, public water transportation services as of
January 1, 2008. To avoid duplication of work, the authority shall
make maximum use of data and information available from the planning
programs of the Metropolitan Transportation Commission, the state
Office of Emergency Services, the Association of Bay Area
Governments, the San Francisco Bay Conservation and Development
Commission, the cities and counties in the San Francisco Bay area,
and other public and private planning agencies. In addition, the
authority shall consider both of the following:
   (1) The San Francisco Bay Area Water Transit Implementation and
Operations Plan adopted by the San Francisco Bay Area Water Transit
Authority on July 10, 2003.
   (2) Any other plan concerning water transportation within the bay
area region developed or adopted by a general purpose local
government or special district that operates or sponsors water
transit, including, but not limited to, those water transportation
services provided under agreement with a private operator.
   (d) The authority shall prepare a specific transition plan for any
transfer not anticipated by the transition plan required under
subdivision (b).
   (e) At least 45 days prior to adoption of the plans required by
subdivisions (a) and (b), the authority shall provide a copy of the
plan adopted pursuant to subdivision (a) and the plan adopted
pursuant to subdivision (b) to each city and county in the bay area
region. Any of these cities or counties may provide comments on these
plans to the authority.
  SEC. 121.  Section 66540.34 of the Government Code, as added by
Section 2, first occurrence, of Chapter 734 of the Statutes of 2007,
is amended and renumbered to read:
   66540.33.  The authority shall refer for recommendation the plans
of routes, rights of way, terminals, yards, and related facilities
and improvements to the city councils and boards of supervisors
within the jurisdiction of which those facilities and improvements
lie and to other state, regional, and local agencies and commissions
as may be deemed appropriate by the authority. The authority shall
give due consideration to all recommendations submitted.
  SEC. 122.  Section 66540.54 of the Government Code is amended to
read:
   66540.54.  (a) The authority shall maintain accounting records and
shall report accounting transactions in accordance with generally
accepted accounting principles as adopted by the Governmental
Accounting Standards Board (GASB) of the Financial Accounting
Foundation for both public reporting purposes and for reporting of
activities to the Controller.
   (b) The authority shall contract with an independent certified
public accountant for an annual audit of the financial records,
books, and performance of the authority. The accountant shall submit
a report of the audit to the board and the board shall make copies of
the report available to the public and the appropriate policy and
fiscal committees of the Legislature.
  SEC. 123.  Section 69615 of the Government Code is amended to read:

   69615.  (a) It is the intent of the Legislature in enacting this
section to restore an appropriate balance between subordinate
judicial officers and judges in the trial courts by providing for the
conversion, as needed, of subordinate judicial officer positions to
judgeships in courts that assign subordinate judicial officers to act
as temporary judges. The Legislature finds that these positions must
be converted to judgeships in order to ensure that critical case
types, including family, probate, and juvenile law matters, can be
heard by judges.
   (b) (1) (A) Sixteen subordinate judicial officer positions in
eligible superior courts, as determined by the Judicial Council
pursuant to uniform criteria for determining the need for converting
existing subordinate judicial officer positions to superior court
judgeships, shall be converted to judgeships as set forth in
paragraph (2).
   (B) Upon subsequent authorization by the Legislature, 146
subordinate judicial officer positions in eligible superior courts,
as determined by the Judicial Council pursuant to uniform criteria
for determining the need for converting existing subordinate judicial
officer positions to superior court judgeships, shall be converted
to judgeships as set forth in paragraphs (2) and (3), except that no
more than 16 subordinate judicial officer positions may be converted
in any fiscal year.
   (2) The positions for conversion shall be allocated each fiscal
year pursuant to uniform allocation standards to be developed by the
Judicial Council for factually determining the relative judicial need
for conversion of a subordinate judicial officer position that
becomes vacant to a superior court judgeship position.
   (3) Beginning in the 2008-09 fiscal year, a subordinate judicial
officer position shall be converted to a judgeship when all of the
following conditions are met:
   (A) A vacancy occurs in a subordinate judicial officer position in
an eligible superior court as determined by the uniform allocation
standards described in paragraph (2).
   (B) The Judicial Council files notice of the vacancies and
allocations with the Chairperson of the Senate Committee on Rules,
the Speaker of the Assembly, and the Chairpersons of the Senate and
Assembly Committees on Judiciary.
   (C) The proposed action is ratified by the Legislature, either in
the annual Budget Act or another legislative measure.
   (4) Section 12011.5 shall apply to an appointment to a superior
court judgeship converted from a subordinate judicial officer
position.
   (c) For purposes of this section, "subordinate judicial officer"
means an officer appointed under the authority of Section 22 of
Article VI of the California Constitution. This section shall not
apply to a subordinate judicial officer position established by
Section 4251 of the Family Code.
   (d) It is the intent of the Legislature that no subordinate
judicial officer shall involuntarily lose his or her position solely
due to operation of this section. This section does not change the
employment relationship between subordinate judicial officers and the
trial courts established by law.
   (e) This section does not limit the authority of the Governor to
appoint a person to fill a vacancy pursuant to subdivision (c) of
Section 16 of Article VI of the California Constitution.
   (f) This section does not entitle a court to an increase in
funding.
   (g) The operation of this section shall neither increase nor
decrease the number of judicial and subordinate judicial officer
positions and court support positions for which a county is
responsible by law.
  SEC. 124.  Section 70375 of the Government Code is amended to read:

   70375.  (a) This article shall take effect on January 1, 2003, and
the fund, penalty, and fee assessment established by this article
shall become operative on January 1, 2003, except as otherwise
provided in this article.
   (b) In each county, the five-dollar ($5) penalty amount authorized
by subdivision (a) of Section 70372 shall be reduced by the
following:
   (1) The amount collected for deposit into the local courthouse
construction fund established pursuant to Section 76100. If a county
board of supervisors elects to distribute part of the county penalty
authorized by Section 76000 to the local courthouse construction
fund, the amount of the contribution for each seven dollars ($7) is
the difference between seven dollars ($7) and the amount shown for
the county penalty in subdivision (e) of Section 76000.
   (2) The amount collected for transmission to the state for
inclusion in the Transitional State Court Facilities Construction
Fund established pursuant to Section 70401 to the extent it is funded
by moneys from the local courthouse construction fund.
   (c) The authority for all of the following shall expire
proportionally on June 30 following the date of transfer of
responsibility for facilities from the county to the Judicial
Council, except so long as moneys are needed to pay for construction
provided for in those sections and undertaken prior to the transfer
of responsibility for facilities from the county to the Judicial
Council:
   (1) An additional penalty for a local courthouse construction fund
established pursuant to Section 76100.
   (2) A filing fee surcharge in the County of Riverside established
pursuant to Section 70622.
   (3) A filing fee surcharge in the County of San Bernardino
established pursuant to Section 70624.
    (4) A filing fee surcharge in the City and County of San
Francisco established pursuant to Section 70625.
   (d) For purposes of subdivision (c), "proportionally" means the
proportion of the fee or surcharge that shall expire upon the
transfer of responsibility for a facility that is the same proportion
as the square footage that facility bears to the total square
footage of court facilities in that county.
  SEC. 125.  Section 70391 of the Government Code is amended to read:

   70391.  The Judicial Council, as the policymaking body for the
judicial branch, shall have the following responsibilities and
authorities with regard to court facilities, in addition to any other
responsibilities or authorities established by law:
   (a) Exercise full responsibility, jurisdiction, control, and
authority as an owner would have over trial court facilities the
title of which is held by the state, including, but not limited to,
the acquisition and development of facilities.
   (b) Exercise the full range of policymaking authority over trial
court facilities, including, but not limited to, planning,
construction, acquisition, and operation, to the extent not expressly
otherwise limited by law.
   (c) Dispose of surplus court facilities following the transfer of
responsibility under Article 3 (commencing with Section 70321),
subject to all of the following:
   (1) If the property was a court facility previously the
responsibility of the county, the Judicial Council shall comply with
the requirements of Section 11011, and as follows, except that,
notwithstanding any other provision of law, the proportion of the net
proceeds that represents the proportion of other state funds used on
the property other than for operation and maintenance shall be
returned to the fund from which it came and the remainder of the
proceeds shall be deposited in the State Court Facilities
Construction Fund.
   (2) The Judicial Council shall consult with the county concerning
the disposition of the facility. Notwithstanding any other law,
including Section 11011, when requested by the transferring county, a
surplus facility shall be offered to that county at fair market
value prior to being offered to another state agency or local
government agency.
   (3) The Judicial Council shall consider whether the potential new
or planned use of the facility:
   (A) Is compatible with the use of other adjacent public buildings.

   (B) Unreasonably departs from the historic or local character of
the surrounding property or local community.
   (C) Has a negative impact on the local community.
   (D) Unreasonably interferes with other governmental agencies that
use or are located in or adjacent to the building containing the
court facility.
   (E) Is of sufficient benefit to outweigh the public good in
maintaining it as a court facility or building.
   (4) All funds received for disposal of surplus court facilities
shall be deposited by the Judicial Council in the State Court
Facilities Construction Fund.
   (5) If the facility was acquired, rehabilitated, or constructed,
in whole or in part, with moneys in the State Court Facilities
Construction Fund that were deposited in that fund from the state
fund, any funds received for disposal of that facility shall be
apportioned to the state fund and the State Court Facilities
Construction Fund in the same proportion that the original cost of
the building was paid from the state fund and other sources of the
State Court Facilities Construction Fund.
   (6) Submission of a plan to the Legislature for the disposition of
court facilities transferred to the state prior to, or as part of, a
budget submission to fund a new courthouse that will replace the
existing court facilities transferred to the state.
   (d) Conduct audits of all of the following:
   (1) The collection of fees by the local courts.
   (2) The moneys in local courthouse construction funds established
pursuant to Section 76100.
   (e) Establish policies, procedures, and guidelines for ensuring
that the courts have adequate and sufficient facilities, including,
but not limited to, facilities planning, acquisition, construction,
design, operation, and maintenance.
   (f) Establish and consult with local project advisory groups on
the construction of new trial court facilities, including the trial
court, the county, state agencies, bar groups, and members of the
community.
   (g) Manage court facilities in consultation with the trial courts.

   (h) Allocate appropriated funds for court facilities maintenance
and construction, subject to the other provisions of this chapter.
   (i) Manage shared-use facilities to the extent required by the
agreement under Section 70343.
   (j) Prepare funding requests for court facility construction,
repair, and maintenance.
   (k) Implement the design, bid, award, and construction of all
court construction projects, except as delegated to others.
   () Provide for capital outlay projects that may be built with
funds appropriated or otherwise available for these purposes as
follows:
   (1) Approve five-year and master plans for each district.
   (2) Establish priorities for construction.
   (3) Recommend to the Governor and the Legislature the projects to
be funded by the State Court Facilities Construction Fund.
   (4) Submit the cost of projects proposed to be funded to the
Department of Finance for inclusion in the Governor's Budget.
   (m) In carrying out its responsibilities and authority under this
section, the Judicial Council shall consult with the local court for:

   (1) Selecting and contracting with facility consultants.
   (2) Preparing and reviewing architectural programs and designs for
court facilities.
   (3) Preparing strategic master and five-year capital facilities
plans.
   (4) Major maintenance of a facility.
  SEC. 126.  Section 76000 of the Government Code is amended to read:

   76000.  (a) (1) Except as otherwise provided in this section, in
each county there shall be levied an additional penalty in the amount
of seven dollars ($7) for every ten dollars ($10), or part of ten
dollars ($10), upon every fine, penalty, or forfeiture imposed and
collected by the courts for all criminal offenses, including all
offenses involving a violation of the Vehicle Code or a local
ordinance adopted pursuant to the Vehicle Code.
   (2) The additional penalty shall be collected together with and in
the same manner as the amounts established by Section 1464 of the
Penal Code. The moneys shall be taken from fines and forfeitures
deposited with the county treasurer prior to any division pursuant to
Section 1463 of the Penal Code. The county treasurer shall deposit
those amounts specified by the board of supervisors by resolution in
one or more of the funds established pursuant to this chapter.
However, deposits to these funds shall continue through whatever
period of time is necessary to repay any borrowings made by the
county on or before January 1, 1991, to pay for construction provided
for in this chapter.
   (3) This additional penalty does not apply to the following:
   (A) A restitution fine.
   (B) A penalty authorized by Section 1464 of the Penal Code or this
chapter.
   (C) A parking offense subject to Article 3 (commencing with
Section 40200) of Chapter 1 of Division 17 of the Vehicle Code.
   (D) The state surcharge authorized by Section 1465.7 of the Penal
Code.
   (b) In each authorized county, provided that the board of
supervisors has adopted a resolution stating that the implementation
of this subdivision is necessary to the county for the purposes
authorized, with respect to each authorized fund established pursuant
to Section 76100 or 76101, for every parking offense where a parking
penalty, fine, or forfeiture is imposed, an added penalty of two
dollars and fifty cents ($2.50) shall be included in the total
penalty, fine, or forfeiture. Except as provided in subdivision (c),
for each parking case collected in the courts of the county, the
county treasurer shall place in each authorized fund two dollars and
fifty cents ($2.50). The moneys shall be taken from fines and
forfeitures deposited with the county treasurer prior to any division
pursuant to Section 1462.3 or 1463.009 of the Penal Code. The judges
of the county shall increase the bail schedule amounts as
appropriate to reflect the added penalty provided for by this
section. In cities, districts, or other issuing agencies that elect
to accept parking penalties, and otherwise process parking violations
pursuant to Article 3 (commencing with Section 40200) of Chapter 1
of Division 17 of the Vehicle Code, the city, district, or issuing
agency shall observe the increased bail amounts as established by the
court reflecting the added penalty provided for by this section.
Each agency that elects to process parking violations shall pay to
the county treasurer two dollars and fifty cents ($2.50) for each
fund for each parking penalty collected on each violation that is not
filed in court. Those payments to the county treasurer shall be made
monthly, and the county treasurer shall deposit all those sums in
the authorized fund. An issuing agency shall not be required to
contribute revenues to a fund in excess of those revenues generated
from the surcharges established in the resolution adopted pursuant to
this chapter, except as otherwise agreed upon by the local
governmental entities involved.
   (c) The county treasurer shall deposit one dollar ($1) of every
two dollars and fifty cents ($2.50) collected pursuant to subdivision
(b) into the general fund of the county.
   (d) The authority to impose the two-dollar-and-fifty-cent ($2.50)
penalty authorized by subdivision (b) shall be reduced to one dollar
($1) as of the date of transfer of responsibility for facilities from
the county to the Judicial Council pursuant to Article 3 (commencing
with Section 70321) of Chapter 5.1, except as moneys are needed to
pay for construction provided for in Section 76100 and undertaken
prior to the transfer of responsibility for facilities from the
county to the Judicial Council.
   (e) The seven-dollar ($7) additional penalty authorized by
subdivision (a) shall be reduced in each county by the additional
penalty amount assessed by the county for the local courthouse
construction fund established by Section 76100 as of January 1, 1998,
when the moneys in that fund are transferred to the state under
Section 70402. The amount each county shall charge as an additional
penalty under this section shall be as follows:
                                    San Luis
Alameda    $5.00 Marin       $5.00 Obispo      $6.00
Alpine     $5.00 Mariposa    $2.00 San Mateo   $4.75
                                    Santa
Amador     $5.00 Mendocino   $7.00 Barbara     $3.50
Butte      $6.00 Merced      $5.00 Santa Clara $5.50
Calaveras  $3.00 Modoc       $4.00 Santa Cruz  $7.00
Colusa     $6.00 Mono        $5.00 Shasta      $3.50
Contra
Costa      $5.00 Monterey    $5.00 Sierra      $7.00
Del Norte  $5.00 Napa        $3.00 Siskiyou    $5.00
El Dorado  $5.00 Nevada      $5.00 Solano      $5.00
Fresno     $7.00 Orange      $3.50 Sonoma      $5.00
Glenn      $4.06 Placer      $4.75 Stanislaus  $5.00
Humboldt   $5.00 Plumas      $5.00 Sutter      $3.00
Imperial   $6.00 Riverside   $4.60 Tehama      $7.00
Inyo       $4.00 Sacramento  $5.00 Trinity     $4.26
Kern       $7.00 San Benito  $5.00 Tulare      $5.00
                  San
Kings      $7.00 Bernardino  $5.00 Tuolumne    $5.00
Lake       $7.00 San Diego   $5.00 Ventura     $5.00
                  San
Lassen     $2.00 Francisco   $6.99 Yolo        $7.00
Los
Angeles    $5.00 San Joaquin $3.75 Yuba        $3.00
Madera     $4.50


  SEC. 127.  Section 76000.5 of the Government Code is amended to
read:
   76000.5.  (a) (1) Except as otherwise provided in this section,
for purposes of supporting emergency medical services pursuant to
Chapter 2.5 (commencing with Section 1797.98a) of Division 2.5 of the
Health and Safety Code, in addition to the penalties set forth in
Section 76000, the county board of supervisors may elect to levy an
additional penalty in the amount of two dollars ($2) for every ten
dollars ($10), or part of ten dollars ($10), upon every fine,
penalty, or forfeiture imposed and collected by the courts for all
criminal offenses, including violations of Division 9 (commencing
with Section 23000) of the Business and Professions Code relating to
the control of alcoholic beverages, and all offenses involving a
violation of the Vehicle Code or a local ordinance adopted pursuant
to the Vehicle Code. This penalty shall be collected together with
and in the same manner as the amounts established by Section 1464 of
the Penal Code.
   (2) This additional penalty does not apply to the following:
   (A) A restitution fine.
   (B) A penalty authorized by Section 1464 of the Penal Code or this
chapter.
   (C) A parking offense subject to Article 3 (commencing with
Section 40200) of Chapter 1 of Division 17 of the Vehicle Code.
   (D) The state surcharge authorized by Section 1465.7 of the Penal
Code.
   (b) Funds shall be collected pursuant to subdivision (a) only if
the county board of supervisors provides that the increased penalties
do not offset or reduce the funding of other programs from other
sources, but that these additional revenues result in increased
funding to those programs.
   (c) Moneys collected pursuant to subdivision (a) shall be taken
from fines and forfeitures deposited with the county treasurer prior
to any division pursuant to Section 1463 of the Penal Code.
   (d) Funds collected pursuant to this section shall be deposited
into the Maddy Emergency Medical Services (EMS) Fund established
pursuant to Section 1797.98a of the Health and Safety Code.
   (e) This section shall remain in effect only until January 1,
2009, and as of that date is repealed, unless a later enacted
statute, that is chaptered before January 1, 2009, deletes or extends
that date.
  SEC. 128.  Section 76104.1 of the Government Code is amended to
read:
   76104.1.  (a) (1) Except as otherwise provided in this section,
and notwithstanding any other provision of law, for purposes of
supporting emergency medical services pursuant to Chapter 2.5
(commencing with Section 1797.98a) of Division 2.5 of the Health and
Safety Code, in Santa Barbara County, a penalty in the amount of five
dollars ($5) for every ten dollars ($10), or part of ten dollars
($10), shall be imposed on every fine, penalty, or forfeiture
collected for all criminal offenses, including all offenses involving
a violation of the Vehicle Code or a local ordinance adopted
pursuant to the Vehicle Code. This penalty assessment shall be
collected together with and in the same manner as the amount
established by Section 1464 of the Penal Code.
   (2) The penalty imposed by this section does not apply to the
following:
   (A) A restitution fine.
   (B) A penalty authorized by Section 1464 of the Penal Code or this
chapter.
   (C) A parking offense subject to Article 3 (commencing with
Section 40200) of Chapter 1 of Division 17 of the Vehicle Code.
   (D) The state surcharge authorized by Section 1465.7 of the Penal
Code.
   (b) Notwithstanding any other provision of law, for purposes of
supporting emergency medical services pursuant to Chapter 2.5
(commencing with Section 1797.98a) of Division 2.5 of the Health and
Safety Code, in Santa Barbara County, for every parking offense, as
defined in subdivision (i) of Section 1463 of the Penal Code, where a
parking penalty, fine, or forfeiture is imposed, an added penalty of
two dollars and fifty cents ($2.50) shall be included in the total
penalty, fine, or forfeiture, together with and in the same manner as
the amount established pursuant to subdivision (b) of Section 76000.

   (c) The moneys collected pursuant to this section shall be held by
the county treasurer in the same manner, and shall be payable for
the same purposes, described in subdivision (e) of Section 76104.
   (d) (1) Notwithstanding any provision of law to the contrary, in
the County of Santa Barbara, the distribution set forth in
subparagraph (B) of paragraph (5) of subdivision (b) of Section
1797.98a of the Health and Safety Code shall, instead, be 42 percent
of the fund to hospitals providing disproportionate trauma and
emergency medical services to uninsured patients who do not make any
payment for services.
   (2) Notwithstanding any provision of law to the contrary, in the
County of Santa Barbara, the 17-percent distribution set forth in
subparagraph (C) of paragraph (5) of subdivision (b) of Section
1797.98a of the Health and Safety Code shall not apply.
   (e) This section shall be implemented only if the Santa Barbara
County Board of Supervisors adopts a resolution stating that
implementation of this section is necessary to the county for
purposes of providing payment for emergency medical services.
   (f) This section shall remain in effect only until January 1,
2009, and as of that date is repealed.
  SEC. 129.  Section 76104.6 of the Government Code is amended to
read:
   76104.6.  (a) (1) Except as otherwise provided in this section,
for the purpose of implementing the DNA Fingerprint, Unsolved Crime
and Innocence Protection Act (Proposition 69), as approved by the
voters at the November 2, 2004, statewide general election, there
shall be levied an additional penalty of one dollar ($1) for every
ten dollars ($10), or part of ten dollars ($10), in each county upon
every fine, penalty, or forfeiture imposed and collected by the
courts for all criminal offenses, including all offenses involving a
violation of the Vehicle Code or a local ordinance adopted pursuant
to the Vehicle Code.
   (2) The penalty imposed by this section shall be collected
together with and in the same manner as the amounts established by
Section 1464 of the Penal Code. The moneys shall be taken from fines
and forfeitures deposited with the county treasurer prior to any
division pursuant to Section 1463 of the Penal Code. The board of
supervisors shall establish in the county treasury a DNA
Identification Fund into which shall be deposited the moneys
collected pursuant to this section. The moneys of the fund shall be
allocated pursuant to subdivision (b).
   (3) The additional penalty does not apply to the following:
   (A) A restitution fine.
   (B) A penalty authorized by Section 1464 of the Penal Code or this
chapter.
   (C) A parking offense subject to Article 3 (commencing with
Section 40200) of Chapter 1 of Division 17 of the Vehicle Code.
   (D) The state surcharge authorized by Section 1465.7 of the Penal
Code.
   (b) (1) The fund moneys described in subdivision (a), together
with any interest earned thereon, shall be held by the county
treasurer separate from any funds subject to transfer or division
pursuant to Section 1463 of the Penal Code. Deposits to the fund may
continue through and including the 20th year after the initial
calendar year in which the surcharge is collected, or longer if and
as necessary to make payments upon any lease or leaseback arrangement
utilized to finance any of the projects specified herein.
   (2) On the last day of each calendar quarter of the year specified
in this subdivision, the county treasurer shall transfer fund moneys
in the county's DNA Identification Fund to the Controller for credit
to the state's DNA Identification Fund, which is hereby established
in the State Treasury, as follows:
   (A) In the first two calendar years following the effective date
of this section, 70 percent of the amounts collected, including
interest earned thereon.
   (B) In the third calendar year following the effective date of
this section, 50 percent of the amounts collected, including interest
earned thereon.
   (C) In the fourth calendar year following the effective date of
this section and in each calendar year thereafter, 25 percent of the
amounts collected, including interest earned thereon.
   (3) Funds remaining in the county's DNA Identification Fund shall
be used only to reimburse local sheriff or other law enforcement
agencies to collect DNA specimens, samples, and print impressions
pursuant to this chapter; for expenditures and administrative costs
made or incurred to comply with the requirements of paragraph (5) of
subdivision (b) of Section 298 of the Penal Code, including the
procurement of equipment and software integral to confirming that a
person qualifies for entry into the Department of Justice DNA and
Forensic Identification Database and Data Bank Program; and to local
sheriff, police, district attorney, and regional state crime
laboratories for expenditures and administrative costs made or
incurred in connection with the processing, analysis, tracking, and
storage of DNA crime scene samples from cases in which DNA evidence
would be useful in identifying or prosecuting suspects, including the
procurement of equipment and software for the processing, analysis,
tracking, and storage of DNA crime scene samples from unsolved cases.

   (4) The state's DNA Identification Fund shall be administered by
the Department of Justice. Funds in the state's DNA Identification
Fund, upon appropriation by the Legislature, shall be used by the
Attorney General only to support DNA testing in the state and to
offset the impacts of increased testing and shall be allocated as
follows:
   (A) Of the amount transferred pursuant to subparagraph (A) of
paragraph (2) of subdivision (b), 90 percent to the Department of
Justice DNA Laboratory, first, to comply with the requirements of
Section 298.3 of the Penal Code and, second, for expenditures and
administrative costs made or incurred in connection with the
processing, analysis, tracking, and storage of DNA specimens and
samples, including the procurement of equipment and software for the
processing, analysis, tracking, and storage of DNA samples and
specimens obtained pursuant to the DNA and Forensic Identification
Database and Data Bank Act of 1998, as amended (Chapter 6 (commencing
with Section 295) of Title 9 of Part 1 of the Penal Code, and 10
percent to the Department of Justice Information Bureau Criminal
History Unit for expenditures and administrative costs that have been
approved by the Chief of the Department of Justice Bureau of
Forensic Services made or incurred to update equipment and software
to facilitate compliance with the requirements of subdivision (e) of
Section 299.5 of the Penal Code.
   (B) Of the amount transferred pursuant to subparagraph (B) of
paragraph (2) of subdivision (b), funds shall be allocated by the
Department of Justice DNA Laboratory, first, to comply with the
requirements of Section 298.3 of the Penal Code and, second, for
expenditures and administrative costs made or incurred in connection
with the processing, analysis, tracking, and storage of DNA specimens
and samples, including the procurement of equipment and software for
the processing, analysis, tracking, and storage of DNA samples and
specimens obtained pursuant to the DNA and Forensic Identification
Database and Data Bank Act of 1998, as amended.
   (C) Of the amount transferred pursuant to subparagraph (C) of
paragraph (2) of subdivision (b), funds shall be allocated by the
Department of Justice to the DNA Laboratory to comply with the
requirements of Section 298.3 of the Penal Code and for expenditures
and administrative costs made or incurred in connection with the
processing, analysis, tracking, and storage of DNA specimens and
samples, including the procurement of equipment and software for the
processing, analysis, tracking, and storage of DNA samples and
specimens obtained pursuant to the DNA and Forensic Identification
Database and Data Bank Act of 1998, as amended.
   (c) On or before April 1 in the year following adoption of this
section, and annually thereafter, the board of supervisors of each
county shall submit a report to the Legislature and the Department of
Justice. The report shall include the total amount of fines
collected and allocated pursuant to this section, and the amounts
expended by the county for each program authorized pursuant to
paragraph (3) of subdivision (b). The Department of Justice shall
make the reports publicly available on the department's Internet Web
site.
   (d) All requirements imposed on the Department of Justice pursuant
to the DNA Fingerprint, Unsolved Crime and Innocence Protection Act
are contingent upon the availability of funding and are limited by
revenue, on a fiscal year basis, received by the Department of
Justice pursuant to this section and any additional appropriation
approved by the Legislature for purposes related to implementing this
act.
   (e) Upon approval of the DNA Fingerprint, Unsolved Crime and
Innocence Protection Act, the Legislature shall lend the Department
of Justice General Fund in the amount of seven million dollars
($7,000,000) for purposes of implementing the act. The loan shall be
repaid with interest calculated at the rate earned by the Pooled
Money Investment Account at the time the loan is made. Principal and
interest on the loan shall be repaid in full no later than four years
from the date the loan was made and shall be repaid from revenue
generated pursuant to this section.
  SEC. 130.  Section 77200 of the Government Code is amended to read:

   77200.  On and after July 1, 1997, the state shall assume sole
responsibility for the funding of court operations, as defined in
Section 77003 and Rule 10.810 of the California Rules of Court as it
read on January 1, 2007. In meeting this responsibility, the state
shall do all of the following:
   (a) Deposit in the Trial Court Trust Fund, for subsequent
allocation to or for the trial courts, all county funds remitted to
the state pursuant to Section 77201 until June 30, 1998, pursuant to
Section 77201.1 from July 1, 1998, until June 30, 2006, inclusive,
and pursuant to Section 77201.3, thereafter.
   (b) Be responsible for the cost of court operations incurred by
the trial courts in the 1997-98 fiscal year and subsequent fiscal
years.
   (c) Allocate funds to the individual trial courts pursuant to an
allocation schedule adopted by the Judicial Council, but in no case
shall the amount allocated to the trial court in a county be less
than the amount remitted to the state by the county in which that
court is located pursuant to paragraphs (1) and (2) of subdivision
(b) of Section 77201 until June 30, 1998, pursuant to paragraphs (1)
and (2) of subdivision (b) of Section 77201.1 from July 1, 1998,
until June 30, 2006, inclusive, and pursuant to paragraphs (1) and
(2) of subdivision (a) of Section 77201.3, thereafter.
   (d) The Judicial Council shall submit its allocation schedule to
the Controller at least five days before the due date of any
allocation.
                                            SEC. 131.  Section
77201.1 of the Government Code is amended to read:
   77201.1.  (a) Commencing on July 1, 1997, no county shall be
responsible for funding court operations, as defined in Section 77003
and Rule 10.810 of the California Rules of Court as it read on
January 1, 2007.
   (b) Commencing in the 1999-2000 fiscal year, and each fiscal year
thereafter until the 2006-07 fiscal year, each county shall remit to
the state in four equal installments due on October 1, January 1,
April 1, and May 1, the amounts specified in paragraphs (1) and (2).
For the purpose of determining the counties' payments commencing in
the 2006-07 fiscal year, and each fiscal year thereafter, the amounts
listed in subdivision (a) of Section 77201.3 shall be used in lieu
of the amounts listed in this subdivision.
   (1) Except as otherwise specifically provided in this section,
each county shall remit to the state the amount listed below, which
is based on an amount expended by the respective county for court
operations during the 1994-95 fiscal year:
Jurisdiction                           Amount
Alameda.....................     $ 22,509,905
Alpine......................                -
Amador......................                -
Butte.......................                -
Calaveras...................                -
Colusa......................                -
Contra Costa................       11,974,535
Del Norte...................                -
El Dorado...................                -
Fresno......................       11,222,780
Glenn.......................                -
Humboldt....................                -
Imperial....................                -
Inyo........................                -
Kern........................        9,234,511
Kings.......................                -
Lake........................                -
Lassen......................                -
Los Angeles.................      175,330,647
Madera......................                -
Marin.......................                -
Mariposa....................                -
Mendocino...................                -
Merced......................                -
Modoc.......................                -
Mono........................                -
Monterey....................        4,520,911
Napa........................                -
Nevada......................                -
Orange......................       38,846,003
Placer......................                -
Plumas......................                -
Riverside...................       17,857,241
Sacramento..................       20,733,264
San Benito..................                -
San Bernardino..............       20,227,102
San Diego...................       43,495,932
San Francisco...............       19,295,303
San Joaquin.................        6,543,068
San Luis Obispo.............                -
San Mateo...................       12,181,079
Santa Barbara...............        6,764,792
Santa Clara.................       28,689,450
Santa Cruz..................                -
Shasta......................                -
Sierra......................                -
Siskiyou....................                -
Solano......................        6,242,661
Sonoma......................        6,162,466
Stanislaus..................        3,506,297
Sutter......................                -
Tehama......................                -
Trinity.....................                -
Tulare......................                -
Tuolumne....................                -
Ventura.....................        9,734,190
Yolo........................                -
Yuba........................                -


   (2) Except as otherwise specifically provided in this section,
each county shall also remit to the state the amount listed below,
which is based on an amount of fee, fine, and forfeiture revenue
remitted to the state pursuant to Sections 27361 and 76000 of this
code, Sections 1463.001, 1463.07, and 1464 of the Penal Code, and
Sections 42007, 42007.1, and 42008 of the Vehicle Code during the
1994-95 fiscal year:
Jurisdiction                          Amount
Alameda.......................... $ 9,912,156
Alpine...........................      58,757
Amador...........................     265,707
Butte............................   1,217,052
Calaveras........................     310,331
Colusa...........................     397,468
Contra Costa.....................   4,486,486
Del Norte........................     124,085
El Dorado........................   1,028,349
Fresno...........................   3,695,633
Glenn............................     360,974
Humboldt.........................   1,025,583
Imperial.........................   1,144,661
Inyo.............................     614,920
Kern.............................   5,530,972
Kings............................     982,208
Lake.............................     375,570
Lassen...........................     430,163
Los Angeles......................  71,002,129
Madera...........................   1,042,797
Marin............................   2,111,712
Mariposa.........................     135,457
Mendocino........................     717,075
Merced...........................   1,733,156
Modoc............................     104,729
Mono.............................     415,136
Monterey.........................   3,330,125
Napa.............................     719,168
Nevada...........................   1,220,686
Orange...........................  19,572,810
Placer...........................   1,243,754
Plumas...........................     193,772
Riverside........................   7,681,744
Sacramento.......................   5,937,204
San Benito.......................     302,324
San Bernardino...................   8,163,193
San Diego........................  16,166,735
San Francisco....................   4,046,107
San Joaquin......................   3,562,835
San Luis Obispo..................   2,036,515
San Mateo........................   4,831,497
Santa Barbara....................   3,277,610
Santa Clara......................  11,597,583
Santa Cruz.......................   1,902,096
Shasta...........................   1,044,700
Sierra...........................      42,533
Siskiyou.........................     615,581
Solano...........................   2,708,758
Sonoma...........................   2,316,999
Stanislaus.......................   1,855,169
Sutter...........................     678,681
Tehama...........................     640,303
Trinity..........................     137,087
Tulare...........................   1,840,422
Tuolumne.........................     361,665
Ventura..........................   4,575,349
Yolo.............................     880,798
Yuba.............................     289,325


   (3) Except as otherwise specifically provided in this section,
county remittances specified in paragraphs (1) and (2) shall not be
increased in subsequent years.
   (4) Except for those counties with a population of 70,000 or fewer
on January 1, 1996, the amount a county is required to remit
pursuant to paragraph (1) shall be adjusted by the amount equal to
any adjustment resulting from the procedures in subdivisions (c) and
(d) of Section 77201 as that section read on June 30, 1998, to the
extent a county filed an appeal with the Controller with respect to
the findings made by the Department of Finance. This paragraph shall
not be construed to establish a new appeal process beyond what was
provided by Section 77201, as that section read on June 30, 1998.
   (5) A change in statute or rule of court that either reduces the
bail schedule or redirects or reduces a county's portion of fee,
fine, and forfeiture revenue to an amount that is less than (A) the
fees, fines, and forfeitures retained by that county, and (B) the
county's portion of fines and forfeitures transmitted to the state in
the 1994-95 fiscal year, shall reduce that county's remittance
specified in paragraph (2) of this subdivision by an equal amount.
This paragraph is not intended to limit judicial sentencing
discretion.
   (6) In the 2005-06 fiscal year, the amount that the County of
Santa Clara is required to remit to the state under paragraph (2)
shall be reduced as described in this paragraph, rather than as
described in subdivision (b) of Section 68085.7. It is the intent of
the Legislature that this paragraph have retroactive effect.
   (A) For the County of Santa Clara, the remittance under this
subdivision for the 2005-06 fiscal year shall be reduced by an amount
equal to one-half of the amount calculated by subtracting the budget
reduction for the Superior Court of Santa Clara County for that
fiscal year attributable to the reduction of the counties' payment
obligation from thirty-one million dollars ($31,000,000) pursuant to
subdivision (a) of Section 68085.6 from the net civil assessments
received in that county in that fiscal year. "Net civil assessments"
as used in this paragraph means the amount of civil assessments
collected minus the costs of collecting those civil assessments,
under the guidelines of the Controller.
   (B) The reduction under this paragraph of the amount that the
County of Santa Clara is required to remit to the state for the
2005-06 fiscal year shall not exceed two million five hundred
thousand dollars ($2,500,000). If the reduction reaches two million
five hundred thousand dollars ($2,500,000), the amount the county is
required to remit to the state under paragraph (2) of subdivision (a)
of Section 77201.3 in each subsequent fiscal year shall be eight
million four hundred sixty-one thousand two hundred ninety-three
dollars ($8,461,293).
   (C) This paragraph does not affect the reduction of the annual
remittance for the County of Santa Clara as provided in Section
68085.2.
   (7) Notwithstanding the changes to the amounts in paragraph (2)
made by Section 68085.7 or any other section, the amounts in
paragraph (2) shall not be changed for purposes of the calculation
required by subdivision (a) of Section 77205.
   (c) This section is not intended to relieve a county of the
responsibility to provide necessary and suitable court facilities
pursuant to Section 70311.
   (d) This section is not intended to relieve a county of the
responsibility for justice-related expenses not included in Section
77003 which are otherwise required of the county by law, including,
but not limited to, indigent defense representation and
investigation, and payment of juvenile justice charges.
   (e) County base year remittance requirements specified in
paragraph (2) of subdivision (b) incorporate specific reductions to
reflect those instances where the Department of Finance has
determined that a county's remittance to both the General Fund and
the Trial Court Trust Fund during the 1994-95 fiscal year exceeded
the aggregate amount of state funding from the General Fund and the
Trial Court Trust Fund. The amount of the reduction was determined by
calculating the difference between the amount the county remitted to
the General Fund and the Trial Court Trust Fund and the aggregate
amount of state support from the General Fund and the Trial Court
Trust Fund allocated to the county's trial courts. In making its
determination of whether a county is entitled to a reduction pursuant
to paragraph (2) of subdivision (b), the Department of Finance
subtracted from county revenues remitted to the state, all moneys
derived from the fee required by Section 42007.1 of the Vehicle Code
and the parking surcharge required by subdivision (c) of Section
76000 of this code.
   (f) Notwithstanding subdivision (e), the Department of Finance
shall not reduce a county's base year remittance requirement, as
specified in paragraph (2) of subdivision (b), if the county's trial
court funding allocation was modified pursuant to the amendments to
the allocation formula set forth in paragraph (4) of subdivision (d)
of Section 77200, as amended by Chapter 2 of the Statutes of 1993, to
provide a stable level of funding for small county courts in
response to reductions in the General Fund support for the trial
courts.
   (g) In any fiscal year in which a county of the first class pays
the employer-paid retirement contribution for court employees, or
other employees of the county who provide a service to the court, and
the amounts of those payments are charged to the budget of the
courts, the sum the county is required to pay to the state pursuant
to paragraph (1) of subdivision (b) shall be increased by the actual
amount charged to the trial court up to twenty-three million five
hundred twenty-seven thousand nine hundred forty-nine dollars
($23,527,949) in that fiscal year. The county and the trial court
shall report to the Controller and the Department of Finance the
actual amount charged in that fiscal year.
  SEC. 132.  Section 95001 of the Government Code is amended to read:

   95001.  (a) The Legislature hereby finds and declares all of the
following:
   (1) There is a need to provide appropriate early intervention
services individually designed for infants and toddlers from birth to
two years of age, inclusive, who have disabilities or are at risk of
having disabilities, to enhance their development and to minimize
the potential for developmental delays.
   (2) Early intervention services for infants and toddlers with
disabilities or who are at risk of having disabilities represent an
investment of resources, in that these services reduce the ultimate
costs to our society, by minimizing the need for special education
and related services in later school years and by minimizing the
likelihood of institutionalization. These services also maximize the
ability of families to better provide for the special needs of their
children. Early intervention services for infants and toddlers with
disabilities maximize the potential of the individuals to be
effective in the context of daily life and activities, including the
potential to live independently, and exercise the full rights of
citizenship. The earlier intervention is started, the greater is the
ultimate cost-effectiveness and the higher is the educational
attainment and quality of life achieved by children with
disabilities.
   (3) The family is the constant in the child's life, while the
service system and personnel within those systems fluctuate. Because
the primary responsibility of an infant's or toddler's well-being
rests with the family, services should support and enhance the family'
s capability to meet the special developmental needs of their infant
or toddler with disabilities.
   (4) Family-to-family support strengthens families' ability to
fully participate in services planning and their capacity to care for
their infants or toddlers with disabilities.
   (5) Meeting the complex needs of infants with disabilities and
their families requires active state and local coordinated,
collaborative, and accessible service delivery systems that are
flexible, culturally competent, and responsive to family-identified
needs. When health, developmental, educational, and social programs
are coordinated, they are proven to be cost effective, not only for
systems, but for families as well.
   (6) Family-professional collaboration contributes to changing the
ways that early intervention services are provided and to enhancing
their effectiveness.
   (7) Infants and toddlers with disabilities are a part of their
communities, and as citizens make valuable contributions to society
as a whole.
   (b) Therefore, it is the intent of the Legislature that:
   (1) Funding provided under Part C of the federal Individuals with
Disabilities Education Act (20 U.S.C. Sec. 1431 et seq.) be used to
improve and enhance early intervention services as defined in this
title by developing innovative ways of providing family focused,
coordinated services, which are built upon existing systems.
   (2) The State Department of Developmental Services, the State
Department of Education, the State Department of Health Care
Services, the State Department of Mental Health, the State Department
of Social Services, and the State Department of Alcohol and Drug
Programs coordinate services to infants and toddlers with
disabilities and their families. These agencies need to collaborate
with families and communities to provide a family-centered,
comprehensive, multidisciplinary, interagency, community-based, early
intervention system for infants and toddlers with disabilities.
   (3) Families be well informed, supported, and respected as capable
and collaborative decisionmakers regarding services for their child.

   (4) Professionals be supported to enhance their training and
maintain a high level of expertise in their field, as well as
knowledge of what constitutes most effective early intervention
practices.
   (5) Families and professionals join in collaborative partnerships
to develop early intervention services that meet the needs of infants
and toddlers with disabilities, and that those partnerships be the
basis for the development of services that meet the needs of the
culturally and linguistically diverse population of California.
   (6) To the maximum extent possible, infants and toddlers with
disabilities and their families be provided services in the most
natural environment, and include the use of natural supports and
existing community resources.
   (7) The services delivery system be responsive to the families and
children it serves within the context of cooperation and
coordination among the various agencies.
   (8) Early intervention program quality be ensured and maintained
through established early intervention program and personnel
standards.
   (9) The early intervention system be responsive to public input
and participation in the development of implementation policies and
procedures for early intervention services through the forum of an
interagency coordinating council established pursuant to federal
regulations under Part C of the federal Individuals with Disabilities
Education Act.
   (c) It is not the intent of the Legislature to require the State
Department of Education to implement this title unless adequate
reimbursement, as specified and agreed to by the department, is
provided to the department from federal funds from Part C of the
federal Individuals with Disabilities Education Act.
  SEC. 133.  Section 95003 of the Government Code, as amended by
Section 106 of Chapter 56 of the Statutes of 2007, is amended to
read:
   95003.  (a) The state's participation in Part C of the federal
Individuals with Disabilities Education Act (20 U.S.C. Sec. 1431 et
seq.) shall be contingent on the receipt of federal funds to cover
the costs of complying with the federal statutes and regulations that
impose new requirements on the state. The State Department of
Developmental Services and the State Department of Education annually
shall report to the Department of Finance during preparation of the
Governor's Budget, and the May Revision, the budget year costs and
federal funds projected to be available.
   (b) If the amount of funding provided by the federal government
pursuant to Part C of the federal Individuals with Disabilities
Education Act for the 1993-94 fiscal year, or any fiscal year
thereafter, is not sufficient to fund the full increased costs of
participation in this federal program by the local educational
agencies, as required pursuant to this title, for infants and
toddlers from birth to two years of age, inclusive, identified
pursuant to Section 95014, and that lack of federal funding would
require an increased contribution from the General Fund or a
contribution from a local educational agency in order to fund those
required and supplemental costs, the state shall terminate its
participation in the program. Termination of the program shall occur
on July 1 if local educational agencies have been notified of the
termination prior to March 10 of that calendar year. If this
notification is provided after March 10 of a calendar year, then
termination shall not occur earlier than July 1 of the subsequent
calendar year. The voluntary contribution by a state or local agency
of funding for any of the programs or services required pursuant to
this title shall not constitute grounds for terminating the state's
participation in that federal program. It is the intent of the
Legislature that if the program terminates, the termination shall be
carried out in an orderly manner with notification of parents and
certificated personnel.
   (c) This title shall remain in effect only until the state
terminates its participation in Part C of the federal Individuals
with Disabilities Education Act for individuals from birth to two
years of age, inclusive, and notifies the Secretary of the Senate of
the termination, and as of that later date is repealed. As the lead
agency, the State Department of Developmental Services, upon
notification by the Department of Finance or the State Department of
Education as to the insufficiency of federal funds and the
termination of this program, shall be responsible for the payment of
services pursuant to this title when no other agency or department is
required to make these payments.
  SEC. 134.  Section 95020 of the Government Code is amended to read:

   95020.  (a) An eligible infant or toddler shall have an
individualized family service plan. The individualized family service
plan shall be used in place of an individualized education program
required pursuant to Sections 4646 and 4646.5 of the Welfare and
Institutions Code, the individualized program plan required pursuant
to Section 56340 of the Education Code, or any other applicable
service plan.
   (b) For an infant or toddler who has been evaluated for the first
time, a meeting to share the results of the evaluation, to determine
eligibility and, for children who are eligible, to develop the
initial individualized family service plan shall be conducted within
45 calendar days of receipt of the written referral. Evaluation
results and determination of eligibility may be shared in a meeting
with the family prior to the individualized family service plan.
Written parent consent to evaluate and assess shall be obtained
within the 45-day timeline. A regional center, local educational
agency, or the designee of one of those entities shall initiate and
conduct this meeting. Families shall be afforded the opportunity to
participate in all decisions regarding eligibility and services.
   (c) Parents shall be fully informed of their rights, including the
right to invite another person, including a family member or an
advocate or peer parent, or any or all of them, to accompany them to
any or all individualized family service plan meetings. With parental
consent, a referral shall be made to the local family resource
center or network.
   (d) The individualized family service plan shall be in writing and
shall address all of the following:
   (1) A statement of the infant's or toddler's present levels of
physical development including vision, hearing, and health status,
cognitive development, communication development, social and
emotional development, and adaptive developments.
   (2) With the concurrence of the family, a statement of the family'
s concerns, priorities, and resources related to meeting the special
developmental needs of the eligible infant or toddler.
   (3) A statement of the major outcomes expected to be achieved for
the infant or toddler and family where services for the family are
related to meeting the special developmental needs of the eligible
infant or toddler.
   (4) The criteria, procedures, and timelines used to determine the
degree to which progress toward achieving the outcomes is being made
and whether modifications or revisions are necessary.
   (5) A statement of the specific early intervention services
necessary to meet the unique needs of the infant or toddler as
identified in paragraph (3), including, but not limited to, the
frequency, intensity, location, duration, and method of delivering
the services, and ways of providing services in natural environments.

   (6) A statement of the agency responsible for providing the
identified services.
   (7) The name of the service coordinator who shall be responsible
for facilitating implementation of the plan and coordinating with
other agencies and persons.
   (8) The steps to be taken to ensure transition of the infant or
toddler upon reaching three years of age to other appropriate
services. These may include, as appropriate, special education or
other services offered in natural environments.
   (9) The projected dates for the initiation of services in
paragraph (5) and the anticipated duration of those services.
   (e) Each service identified on the individualized family service
plan shall be designated as one of three types:
   (1) An early intervention service, as defined in subsection (4) of
Section 1432 of Title 20 of the United States Code, and applicable
regulations, that is provided or purchased through the regional
center, local educational agency, or other participating agency. The
State Department of Health Care Services, State Department of Social
Services, State Department of Mental Health, and State Department of
Alcohol and Drug Programs shall provide services in accordance with
state and federal law and applicable regulations, and up to the level
of funding as appropriated by the Legislature. Early intervention
services identified on an individualized family service plan that
exceed the funding, statutory, and regulatory requirements of these
departments shall be provided or purchased by regional centers or
local educational agencies under subdivisions (b) and (c) of Section
95014. The State Department of Health Care Services, State Department
of Social Services, State Department of Mental Health, and State
Department of Alcohol and Drug Programs shall not be required to
provide early intervention services over their existing funding,
statutory, and regulatory requirements.
   (2) Another service, other than those specified in paragraph (1),
which the eligible infant or toddler or his or her family may receive
from other state programs, subject to the eligibility standards of
those programs.
   (3) A referral to a nonrequired service that may be provided to an
eligible infant or toddler or his or her family. Nonrequired
services are those services that are not defined as early
intervention services or do not relate to meeting the special
developmental needs of an eligible infant or toddler related to the
disability, but which may be helpful to the family. The granting or
denial of nonrequired services
   by a public or private agency is not subject to appeal under this
title.
   (f) An annual review, and other periodic reviews, of the
individualized family service plan for an infant or toddler and the
infant's or toddler's family shall be conducted to determine the
degree of progress that is being made in achieving the outcomes
specified in the plan and whether modification or revision of the
outcomes or services is necessary. The frequency, participants,
purpose, and required processes for annual and periodic reviews shall
be consistent with the statutes and regulations under Part C of the
federal Individuals with Disabilities Education Act (20 U.S.C. Sec.
1431 et seq.) and this title, and shall be specified in regulations
adopted pursuant to Section 95028.
  SEC. 135.  Section 1180.1 of the Health and Safety Code is amended
to read:
   1180.1.  For purposes of this division, the following definitions
apply:
   (a) "Behavioral restraint" means "mechanical restraint" or
"physical restraint" as defined in this section, used as an
intervention when a person presents an immediate danger to self or to
others. It does not include restraints used for medical purposes,
including, but not limited to, securing an intravenous needle or
immobilizing a person for a surgical procedure, or postural
restraints, or devices used to prevent injury or to improve a person'
s mobility and independent functioning rather than to restrict
movement.
   (b) "Containment" means a brief physical restraint of a person for
the purpose of effectively gaining quick control of a person who is
aggressive or agitated or who is a danger to self or others.
   (c) "Mechanical restraint" means the use of a mechanical device,
material, or equipment attached or adjacent to the person's body that
he or she cannot easily remove and that restricts the freedom of
movement of all or part of a person's body or restricts normal access
to the person's body, and that is used as a behavioral restraint.
   (d) "Physical restraint" means the use of a manual hold to
restrict freedom of movement of all or part of a person's body, or to
restrict normal access to the person's body, and that is used as a
behavioral restraint. "Physical restraint" is staff-to-person
physical contact in which the person unwillingly participates.
"Physical restraint" does not include briefly holding a person
without undue force in order to calm or comfort, or physical contact
intended to gently assist a person in performing tasks or to guide or
assist a person from one area to another.
   (e) "Seclusion" means the involuntary confinement of a person
alone in a room or an area from which the person is physically
prevented from leaving. "Seclusion" does not include a "timeout," as
defined in regulations relating to facilities operated by the State
Department of Developmental Services.
   (f) "Secretary" means the Secretary of California Health and Human
Services.
   (g) "Serious injury" means significant impairment of the physical
condition as determined by qualified medical personnel, and includes,
but is not limited to, burns, lacerations, bone fractures,
substantial hematoma, or injuries to internal organs.
  SEC. 136.  Section 1250.8 of the Health and Safety Code is amended
to read:
   1250.8.  (a) Notwithstanding subdivision (a) of Section 127170,
the department, upon application of a general acute care hospital
that meets all the criteria of subdivision (b), and other applicable
requirements of licensure, shall issue a single consolidated license
to a general acute care hospital that includes more than one physical
plant maintained and operated on separate premises or that has
multiple licenses for a single health facility on the same premises.
A single consolidated license shall not be issued where the separate
freestanding physical plant is a skilled nursing facility or an
intermediate care facility, whether or not the location of the
skilled nursing facility or intermediate care facility is contiguous
to the general acute care hospital unless the hospital is exempt from
the requirements of subdivision (b) of Section 1254, or the facility
is part of the physical structure licensed to provide acute care.
   (b) The issuance of a single consolidated license shall be based
on the following criteria:
   (1) There is a single governing body for all the facilities
maintained and operated by the licensee.
   (2) There is a single administration for all the facilities
maintained and operated by the licensee.
   (3) There is a single medical staff for all the facilities
maintained and operated by the licensee, with a single set of bylaws,
rules, and regulations, which prescribe a single committee
structure.
   (4) Except as provided otherwise in this paragraph, the physical
plants maintained and operated by the licensee which are to be
covered by the single consolidated license are located not more than
15 miles apart. If an applicant provides evidence satisfactory to the
department that it can comply with all requirements of licensure and
provide quality care and adequate administrative and professional
supervision, the director may issue a single consolidated license to
a general acute care hospital that operates two or more physical
plants located more than 15 miles apart under any of the following
circumstances:
   (A) One or more of the physical plants is located in a rural area,
as defined by regulations of the director.
   (B) One or more of the physical plants provides only outpatient
services, as defined by the department.
   (C) If Section 14105.986 of the Welfare and Institutions Code is
implemented and the applicant meets all of the following criteria:
   (i) The applicant is a nonprofit corporation.
   (ii) The applicant is a children's hospital listed in Section
10727 of the Welfare and Institutions Code.
   (iii) The applicant is affiliated with a major university medical
school and located adjacent thereto.
   (iv) The applicant operates a regional tertiary care facility.
   (v) One of the physical plants is located in a county that has a
consolidated and county government structure.
   (vi) One of the physical plants is located in a county having a
population between 1,000,000 and 2,000,000.
   (vii) The applicant is located in a city with a population between
50,000 and 100,000.
   (c) In issuing the single consolidated license, the state
department shall specify the location of each supplemental service
and the location of the number and category of beds provided by the
licensee. The single consolidated license shall be renewed annually.
   (d) To the extent required by Chapter 1 (commencing with
Section127125) of Part 2 of Division 107, a general acute care
hospital that has been issued a single consolidated license:
   (1) Shall not transfer from one facility to another a special
service described in Section 1255 without first obtaining a
certificate of need.
   (2) Shall not transfer, in whole or in part, from one facility to
another, a supplemental service, as defined in regulations of the
director pursuant to this chapter, without first obtaining a
certificate of need, unless the licensee, 30 days prior to the
relocation, notifies the Office of Statewide Health Planning and
Development, the applicable health systems agency, and the state
department of the licensee's intent to relocate the supplemental
service, and includes with this notice a cost estimate, certified by
a person qualified by experience or training to render the estimates,
which estimates that the cost of the transfer will not exceed the
capital expenditure threshold established by the Office of Statewide
Health Planning and Development pursuant to Section 127170.
   (3) Shall not transfer beds from one facility to another facility,
without first obtaining a certificate of need unless, 30 days prior
to the relocation, the licensee notifies the Office of Statewide
Health Planning and Development, the applicable health systems
agency, and the state department of the licensee's intent to relocate
health facility beds, and includes with this notice both of the
following:
   (A) A cost estimate, certified by a person qualified by experience
or training to render the estimates, which estimates that the cost
of the relocation will not exceed the capital expenditure threshold
established by the Office of Statewide Health Planning and
Development pursuant to Section 127170.
   (B) The identification of the number, classification, and location
of the health facility beds in the transferor facility and the
proposed number, classification, and location of the health facility
beds in the transferee facility.
   Except as otherwise permitted in Chapter 1 (commencing with
Section 127125) of Part 2 of Division 107, or as authorized in an
approved certificate of need pursuant to that chapter, health
facility beds transferred pursuant to this section shall be used in
the transferee facility in the same bed classification as defined in
Section 1250.1, as the beds were classified in the transferor
facility.
   Health facility beds transferred pursuant to this section shall
not be transferred back to the transferor facility for two years from
the date of the transfer, regardless of cost, without first
obtaining a certificate of need pursuant to Chapter 1 (commencing
with Section 127125) of Part 2 of Division 107.
   (e) Transfers pursuant to subdivision (d) shall satisfy all
applicable requirements of licensure and shall be subject to the
written approval, if required, of the state department. The state
department may adopt regulations that are necessary to implement this
section. These regulations may include a requirement that each
facility of a health facility subject to a single consolidated
license have an onsite full-time or part-time administrator.
   (f) As used in this section, "facility" means a physical plant
operated or maintained by a health facility subject to a single,
consolidated license issued pursuant to this section.
   (g) For purposes of selective provider contracts negotiated under
the Medi-Cal program, the treatment of a health facility with a
single consolidated license issued pursuant to this section shall be
subject to negotiation between the health facility and the California
Medical Assistance Commission. A general acute care hospital that is
issued a single consolidated license pursuant to this section may,
at its option, be enrolled in the Medi-Cal program as a single
business address or as separate business addresses for one or more of
the facilities subject to the single consolidated license.
Irrespective of whether the general acute care hospital is enrolled
at one or more business addresses, the department may require the
hospital to file separate cost reports for each facility pursuant to
Section 14170 of the Welfare and Institutions Code.
   (h) For purposes of the Annual Report of Hospitals required by
regulations adopted by the state department pursuant to this part,
the state department and the Office of Statewide Health Planning and
Development may require reporting of bed and service utilization data
separately by each facility of a general acute care hospital issued
a single consolidated license pursuant to this section.
   (i) The amendments made to this section during the 1985-86 Regular
Session of the Legislature pertaining to the issuance of a single
consolidated license to a general acute care hospital in the case
where the separate physical plant is a skilled nursing facility or
intermediate care facility shall not apply to the following
facilities:
   (1) A facility that obtained a certificate of need after August 1,
1984, and prior to February 14, 1985, as described in this
subdivision. The certificate of need shall be for the construction of
a skilled nursing facility or intermediate care facility that is the
same facility for which the hospital applies for a single
consolidated license, pursuant to subdivision (a).
   (2) A facility for which a single consolidated license has been
issued pursuant to subdivision (a), as described in this subdivision,
prior to the effective date of the amendments made to this section
during the 1985-86 Regular Session of the Legislature.
   A facility that has been issued a single consolidated license
pursuant to subdivision (a), as described in this subdivision, shall
be granted renewal licenses based upon the same criteria used for the
initial consolidated license.
   (j) If the state department issues a single consolidated license
pursuant to this section, the state department may take any action
authorized by this chapter, including, but not limited to, any action
specified in Article 5 (commencing with Section 1294), with respect
to a facility, or a service provided in a facility, that is included
in the consolidated license.
   (k) The eligibility for participation in the Medi-Cal program
(Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of
the Welfare and Institutions Code) of a facility that is included in
a consolidated license issued pursuant to this section, provides
outpatient services, and is located more than 15 miles from the
health facility issued the consolidated license shall be subject to a
determination of eligibility by the state department. This
subdivision shall not apply to a facility that is located in a rural
area and is included in a consolidated license issued pursuant to
subparagraphs (A), (B), and (C) of paragraph (4) of subdivision (b).
Regardless of whether a facility has received or not received a
determination of eligibility pursuant to this subdivision, this
subdivision shall not affect the ability of a licensed professional,
providing services covered by the Medi-Cal program to a person
eligible for Medi-Cal in a facility subject to a determination of
eligibility pursuant to this subdivision, to bill the Medi-Cal
program for those services provided in accordance with applicable
regulations.
   (l) Notwithstanding any other provision of law, the director may
issue a single consolidated license for a general acute care hospital
to Children's Hospital Oakland and San Ramon Regional Medical
Center.
   (m) Notwithstanding any other provision of law, the director may
issue a single consolidated license for a general acute care hospital
to Children's Hospital Oakland and the John Muir Medical Center,
Concord Campus.
   (n) (1) To the extent permitted by federal law, payments made to
Children's Hospital Oakland pursuant to Section 14166.11 of the
Welfare and Institutions Code shall be adjusted as follows:
   (A) The number of Medi-Cal payment days and net revenues
calculated for the John Muir Medical Center, Concord Campus under the
consolidated license shall not be used for eligibility purposes for
the private hospital disproportionate share hospital replacement
funds for Children's Hospital Oakland.
   (B) The number of Medi-Cal payment days calculated for hospital
beds located at John Muir Medical Center, Concord Campus that are
included in the consolidated license beginning in the 2007-08 fiscal
year shall only be used for purposes of calculating disproportionate
share hospital payments authorized under Section 14166.11 of the
Welfare and Institutions Code at Children's Hospital Oakland to the
extent that the inclusion of those days does not exceed the total
Medi-Cal payment days used to calculate Children's Hospital Oakland
payments for the 2006-07 fiscal year disproportionate share
replacement.
   (2) This subdivision shall become inoperative in the event that
the two facilities covered under the consolidated license described
in subdivision (a) are located within a 15-mile radius of each other.

  SEC. 137.  Section 1348.8 of the Health and Safety Code is amended
to read:
   1348.8.  (a) A health care service plan that provides, operates,
or contracts for, telephone medical advice services to its enrollees
and subscribers shall do all of the following:
   (1) Ensure that the in-state or out-of-state telephone medical
advice service is registered pursuant to Chapter 15 (commencing with
Section 4999) of Division 2 of the Business and Professions Code.
   (2) Ensure that the staff providing telephone medical advice
services for the in-state or out-of-state telephone medical advice
service are licensed as follows:
   (A) For full service health care service plans, the staff hold a
valid California license as a registered nurse or a valid license in
the state within which they provide telephone medical advice services
as a physician and surgeon or physician assistant, and are operating
in compliance with the laws governing their respective scopes of
practice.
   (B) (i) For specialized health care service plans providing,
operating, or contracting with a telephone medical advice service in
California, the staff shall be appropriately licensed, registered, or
certified as a dentist pursuant to Chapter 4 (commencing with
Section 1600) of Division 2 of the Business and Professions Code, as
a dental hygienist pursuant to Article 7 (commencing with Section
1740) of Chapter 4 of Division 2 of the Business and Professions
Code, as a physician and surgeon pursuant to Chapter 5 (commencing
with Section 2000) of Division 2 of the Business and Professions Code
or the Osteopathic Initiative Act, as a registered nurse pursuant to
Chapter 6 (commencing with Section 2700) of Division 2 of the
Business and Professions Code, as a psychologist pursuant to Chapter
6.6 (commencing with Section 2900) of Division 2 of the Business and
Professions Code, as an optometrist pursuant to Chapter 7 (commencing
with Section 3000) of Division 2 of the Business and Professions
Code, as a marriage and family therapist pursuant to Chapter 13
(commencing with Section 4980) of Division 2 of the Business and
Professions Code, as a licensed clinical social worker pursuant to
Chapter 14 (commencing with Section 4991) of Division 2 of the
Business and Professions Code, or as a chiropractor pursuant to the
Chiropractic Initiative Act, and operating in compliance with the
laws governing their respective scopes of practice.
   (ii) For specialized health care service plans providing,
operating, or contracting with an out-of-state telephone medical
advice service, the staff shall be health care professionals, as
identified in clause (i), who are licensed, registered, or certified
in the state within which they are providing the telephone medical
advice services and are operating in compliance with the laws
governing their respective scopes of practice. All registered nurses
providing telephone medical advice services to both in-state and
out-of-state business entities registered pursuant to this chapter
shall be licensed pursuant to Chapter 6 (commencing with Section
2700) of Division 2 of the Business and Professions Code.
   (3) Ensure that every full service health care service plan
provides for a physician and surgeon who is available on an on-call
basis at all times the service is advertised to be available to
enrollees and subscribers.
   (4) Ensure that staff members handling enrollee or subscriber
calls, who are not licensed, certified, or registered as required by
paragraph (2), do not provide telephone medical advice. Those staff
members may ask questions on behalf of a staff member who is
licensed, certified, or registered as required by paragraph (2), in
order to help ascertain the condition of an enrollee or subscriber so
that the enrollee or subscriber can be referred to licensed staff.
However, under no circumstances shall those staff members use the
answers to those questions in an attempt to assess, evaluate, advise,
or make any decision regarding the condition of an enrollee or
subscriber or determine when an enrollee or subscriber needs to be
seen by a licensed medical professional.
   (5) Ensure that no staff member uses a title or designation when
speaking to an enrollee or subscriber that may cause a reasonable
person to believe that the staff member is a licensed, certified, or
registered professional described in Section 4999.2 of the Business
and Professions Code unless the staff member is a licensed,
certified, or registered professional.
   (6) Ensure that the in-state or out-of-state telephone medical
advice service designates an agent for service of process in
California and files this designation with the director.
   (7) Requires that the in-state or out-of-state telephone medical
advice service makes and maintains records for a period of five years
after the telephone medical advice services are provided, including,
but not limited to, oral or written transcripts of all medical
advice conversations with the health care service plan's enrollees or
subscribers in California and copies of all complaints. If the
records of telephone medical advice services are kept out of state,
the health care service plan shall, upon the request of the director,
provide the records to the director within 10 days of the request.
   (8) Ensure that the telephone medical advice services are provided
consistent with good professional practice.
   (b) The director shall forward to the Department of Consumer
Affairs, within 30 days of the end of each calendar quarter, data
regarding complaints filed with the department concerning telephone
medical advice services.
   (c) For purposes of this section, "telephone medical advice" means
a telephonic communication between a patient and a health care
professional in which the health care professional's primary function
is to provide to the patient a telephonic response to the patient's
questions regarding his or her or a family member's medical care or
treatment. "Telephone medical advice" includes assessment,
evaluation, or advice provided to patients or their family members.
  SEC. 138.  Section 1357.03 of the Health and Safety Code is amended
to read:
   1357.03.  (a) Upon the effective date of this article, a plan
shall fairly and affirmatively offer, market, and sell all of the
plan's health care service plan contracts that are sold to small
employers or to associations that include small employers to all
small employers in each service area in which the plan provides or
arranges for the provision of health care services. A plan
contracting to participate in the voluntary purchasing pool for small
employers provided for under Article 4 (commencing with Section
10730) of Chapter 8 of Part 2 of Division 2 of the Insurance Code
shall be deemed in compliance with this requirement for a contract
offered through the voluntary purchasing pool established under
Article 4 (commencing with Section 10730) of Chapter 8 of Part 2 of
Division 2 of the Insurance Code in those geographic regions in which
plans participate in the pool, if the contract is offered
exclusively through the pool. Each plan shall make available to each
small employer all small employer health care service plan contracts
that the plan offers and sells to small employers or to associations
that include small employers in this state. No plan or solicitor
shall induce or otherwise encourage a small employer to separate or
otherwise exclude an eligible employee from a health care service
plan contract that is provided in connection with the employee's
employment or membership in a guaranteed association.
   (b) Every plan shall file with the director the reasonable
employee participation requirements and employer contribution
requirements that will be applied in offering its plan contracts.
Participation requirements shall be applied uniformly among all small
employer groups, except that a plan may vary application of minimum
employee participation requirements by the size of the small employer
group and whether the employer contributes 100 percent of the
eligible employee's premium. Employer contribution requirements shall
not vary by employer size. A health care service plan shall not
establish a participation requirement that (1) requires a person who
meets the definition of a dependent in subdivision (a) of Section
1357 to enroll as a dependent if he or she is otherwise eligible for
coverage and wishes to enroll as an eligible employee and (2) allows
a plan to reject an otherwise eligible small employer because of the
number of persons that waive coverage due to coverage through another
employer. Members of an association eligible for health coverage
under subdivision (o) of Section 1357, but not electing any health
coverage through the association, shall not be counted as eligible
employees for purposes of determining whether the guaranteed
association meets a plan's reasonable participation standards.
   (c) The plan shall not reject an application from a small employer
for a health care service plan contract if all of the following are
met:
   (1) The small employer, as defined by paragraph (1) of subdivision
() of Section 1357, offers health benefits to 100 percent of its
eligible employees, as defined by paragraph (1) of subdivision (b) of
Section 1357. Employees who waive coverage on the grounds that they
have other group coverage shall not be counted as eligible employees.

   (2) The small employer agrees to make the required premium
payments.
   (3) The small employer agrees to inform the small employers'
employees of the availability of coverage and the provision that
those not electing coverage must wait one year to obtain coverage
through the group if they later decide they would like to have
coverage.
   (4) The employees and their dependents who are to be covered by
the plan contract work or reside in the service area in which the
plan provides or otherwise arranges for the provision of health care
services.
   (d) No plan or solicitor shall, directly or indirectly, engage in
the following activities:
   (1) Encourage or direct small employers to refrain from filing an
application for coverage with a plan because of the health status,
claims experience, industry, occupation of the small employer, or
geographic location provided that it is within the plan's approved
service area.
   (2) Encourage or direct small employers to seek coverage from
another plan or the voluntary purchasing pool established under
Article 4 (commencing with Section 10730) of Chapter 8 of Part 2 of
Division 2 of the Insurance Code because of the health status, claims
experience, industry, occupation of the small employer, or
geographic location provided that it is within the plan's approved
service area.
   (e) A plan shall not, directly or indirectly, enter into any
contract, agreement, or arrangement with a solicitor that provides
for or results in the compensation paid to a solicitor for the sale
of a health care service plan contract to be varied because of the
health status, claims experience, industry, occupation, or geographic
location of the small employer. This subdivision does not apply to a
compensation
arrangement that provides compensation to a solicitor on the basis of
percentage of premium, provided that the percentage shall not vary
because of the health status, claims experience, industry,
occupation, or geographic area of the small employer.
   (f) A policy or contract that covers two or more employees shall
not establish rules for eligibility, including continued eligibility,
of an individual, or dependent of an individual, to enroll under the
terms of the plan based on any of the following health
status-related factors:
   (1) Health status.
   (2) Medical condition, including physical and mental illnesses.
   (3) Claims experience.
   (4) Receipt of health care.
   (5) Medical history.
   (6) Genetic information.
   (7) Evidence of insurability, including conditions arising out of
acts of domestic violence.
   (8) Disability.
   (g) A plan shall comply with the requirements of Section 1374.3.
  SEC. 139.  Section 1367.07 of the Health and Safety Code is amended
to read:
   1367.07.  Within one year after a health care service plan's
assessment pursuant to subdivision (b) of Section 1367.04, the health
care service plan shall report to the department, in a format
specified by the department, regarding internal policies and
procedures related to cultural appropriateness in each of the
following contexts:
   (a) Collection of data regarding the enrollee population pursuant
to the health care service plan's assessment conducted in accordance
with subdivision (b) of Section 1367.04.
   (b) Education of health care service plan staff who have routine
contact with enrollees regarding the diverse needs of the enrollee
population.
   (c) Recruitment and retention efforts that encourage workforce
diversity.
   (d) Evaluation of the health care service plan's programs and
services with respect to the plan's enrollee population, using
processes such as an analysis of complaints and satisfaction survey
results.
   (e) The periodic provision of information regarding the ethnic
diversity of the plan's enrollee population and any related
strategies to plan providers. Plans may use existing means of
communication.
   (f) The periodic provision of educational information to plan
enrollees on the plan's services and programs. Plans may use existing
means of communication.
  SEC. 140.  Section 1417.2 of the Health and Safety Code is amended
to read:
   1417.2.  (a) Notwithstanding Section 1428, moneys collected as a
result of state and federal civil penalties imposed under this
chapter or federal law shall be deposited into accounts that are
hereby established in the Special Deposit Fund created pursuant to
Section 16370 of the Government Code. These accounts are titled the
State Health Facilities Citation Penalties Account, into which moneys
derived from civil penalties for violations of state law shall be
deposited, and the Federal Health Facilities Citation Penalties
Account, into which moneys derived from civil penalties for
violations of federal law shall be deposited. Moneys from these
accounts shall be used, notwithstanding Section 16370 of the
Government Code, upon appropriation by the Legislature, in accordance
with state and federal law for the protection of health or property
of residents of long-term health care facilities, including, but not
limited to, the following:
   (1) Relocation expenses incurred by the department, in the event
of a facility closure.
   (2) Maintenance of facility operation pending correction of
deficiencies or closure, such as temporary management or
receivership, in the event that the revenues of the facility are
insufficient.
   (3) Reimbursing residents for personal funds lost. In the event
that the loss is a result of the actions of a long-term health care
facility or its employees, the revenues of the facility shall first
be used.
   (4) The costs associated with informational meetings required
under Section 1327.2.
   (b) Notwithstanding subdivision (a), the balance in the State
Health Facilities Citation Penalties Account shall not, at any time,
exceed ten million dollars ($10,000,000).
   (c) Moneys from the Federal Health Facilities Citation Penalties
Account, in the amount not to exceed one hundred thirty thousand
dollars ($130,000), may also be used, notwithstanding Section 16370
of the Government Code, upon appropriation by the Legislature, in
accordance with state and federal law for the improvement of quality
of care and quality of life for long-term health care facilities
residents pursuant to Section 1417.3.
   (d) The department shall post on its Internet Web site, and shall
update on a quarterly basis, all of the following regarding the funds
in the State Health Facilities Citation Penalties Account and the
Federal Health Facilities Citation Penalties Account:
   (1) The specific sources of funds deposited into the account.
   (2) The amount of funds in the account that have not been
allocated.
   (3) A detailed description of how funds in the account have been
allocated and expended, including, but not limited to, the names of
persons or entities that received the funds, the amount of salaries
paid to temporary managers, and a description of equipment purchased
with the funds. However, the description shall not include the names
of residents.
  SEC. 141.  Section 1538.5 of the Health and Safety Code is amended
to read:
   1538.5.  (a) (1) Not less than 30 days prior to the anniversary of
the effective date of a residential community care facility license,
except licensed foster family homes, the department may transmit a
copy to the board members of the licensed facility, parents, legal
guardians, conservators, clients' rights advocates, or placement
agencies, as designated in each resident's placement agreement, of
all inspection reports given to the facility by the department during
the past year as a result of a substantiated complaint regarding a
violation of this chapter relating to resident abuse and neglect,
food, sanitation, incidental medical care, and residential
supervision. During that one-year period the copy of the notices
transmitted and the proof of the transmittal shall be open for public
inspection.
   (2) The department may transmit copies of the inspection reports
referred to in paragraph (1) concerning group homes, as defined by
regulations of the department, to the county in which a group home
facility is located, if requested by that county.
   (3) A group home facility shall maintain, at the facility, a copy
of all licensing reports for the past three years that would be
accessible to the public through the department, for inspection by
placement officials, current and prospective facility clients, and
these clients' family members who visit the facility.
   (b) The facility operator, at the expense of the facility, shall
transmit a copy of all substantiated complaints, by certified mail,
to those persons described pursuant to paragraph (1) of subdivision
(a) in the following cases:
   (1) In the case of a substantiated complaint relating to resident
physical or sexual abuse, the facility shall have three days from the
date the facility receives the licensing report from the state
department to comply.
   (2) In any case in which a facility has received three or more
substantiated complaints relating to the same violation during the
past 12 months, the facility shall have five days from the date the
facility receives the licensing report to comply.
   (c) A residential facility shall retain a copy of the notices
transmitted pursuant to subdivision (b) and proof of their
transmittal by certified mail for a period of one year after their
transmittal.
   (d) If a residential facility to which this section applies fails
to comply with this section, as determined by the department, the
department shall initiate civil penalty action against the facility
in accordance with this article and the related rules and
regulations.
   (e) Not less than 30 days prior to the anniversary of the
effective date of the license of any group home facility, as defined
by regulations of the department, at the request of the county in
which the group home facility is located, a group home facility shall
transmit to the county a copy of all incident reports prepared by
the group home facility and transmitted to a placement agency, as
described in subdivision (f) of Section 1536.1, in a county other
than the county in which the group home facility is located that
involved a response by local law enforcement or emergency services
personnel. The county shall designate an official for the receipt of
the incident reports and shall notify the group home of the
designation. Prior to transmitting copies of incident reports to the
county, the group home facility shall redact the name of any child
referenced in the incident reports, and other identifying information
regarding any child referenced in the reports, and the identity and
location of the placement agency of any child referenced in the
reports. The county may review the incident reports to ensure that
the group home facilities have taken appropriate action to ensure the
health and safety of the residents of the facility.
   (f) The department shall notify the residential community care
facility of its obligation when it is required to comply with this
section.
  SEC. 142.  Section 1568.09 of the Health and Safety Code is amended
to read:
   1568.09.  It is the intent of the Legislature in enacting this
section to require the electronic fingerprint images of those
individuals whose contact with residents of residential care
facilities for persons with a chronic, life-threatening illness may
pose a risk to the residents' health and safety.
   It is the intent of the Legislature, in enacting this section, to
require the electronic fingerprint images of those individuals whose
contact with community care clients may pose a risk to the clients'
health and safety. An individual shall be required to obtain either a
criminal record clearance or a criminal record exemption from the
State Department of Social Services before his or her initial
presence in a residential care facility for persons with chronic,
life-threatening illnesses.
   (a) (1) Before issuing a license to a person or persons to operate
or manage a residential care facility, the department shall secure
from an appropriate law enforcement agency a criminal record to
determine whether the applicant or any other person specified in
subdivision (b) has ever been convicted of a crime other than a minor
traffic violation or arrested for any crime specified in subdivision
(c) of Section 290 of the Penal Code, for violating Section 245 or
273.5, subdivision (b) of Section 273a or, prior to January 1, 1994,
paragraph (2) of Section 273a of the Penal Code, or for any crime for
which the department cannot grant an exemption if the person was
convicted and the person has not been exonerated.
   (2) The criminal history information shall include the full
criminal record if any, of those persons, and subsequent arrest
information pursuant to Section 11105.2 of the Penal Code.
   (3) The following shall apply to the criminal record information:
   (A) If the State Department of Social Services finds that the
applicant or another person specified in subdivision (b) has been
convicted of a crime, other than a minor traffic violation, the
application shall be denied, unless the director grants an exemption
pursuant to subdivision (f).
   (B) If the State Department of Social Services finds that the
applicant, or another person specified in subdivision (b) is awaiting
trial for a crime other than a minor traffic violation, the State
Department of Social Services may cease processing the application
until the conclusion of the trial.
   (C) If no criminal record information has been recorded, the
Department of Justice shall provide the applicant and the State
Department of Social Services with a statement of that fact.
   (D) If the State Department of Social Services finds after
licensure that the licensee, or any other person specified in
paragraph (2) of subdivision (b), has been convicted of a crime other
than a minor traffic violation, the license may be revoked, unless
the director grants an exemption pursuant to subdivision (f).
   (E) An applicant and any other person specified in subdivision (b)
shall submit fingerprint images and related information to the
Department of Justice and the Federal Bureau of Investigation,
through the Department of Justice, for a state and federal level
criminal offender record information search, in addition to the
search required by this subdivision. If an applicant meets all other
conditions for licensure, except receipt of the Federal Bureau of
Investigation's criminal history information for the applicant and
persons listed in subdivision (b), the department may issue a license
if the applicant and each person described by subdivision (b) has
signed and submitted a statement that he or she has never been
convicted of a crime in the United States, other than a traffic
infraction as defined in paragraph (1) of subdivision (a) of Section
42001 of the Vehicle Code. If, after licensure, the department
determines that the licensee or person specified in subdivision (b)
has a criminal record, the license may be revoked pursuant to
subdivision (a) of Section 1568.082. The department may also suspend
the license pending an administrative hearing pursuant to subdivision
(b) of Section 1568.082.
   (b) In addition to the applicant, this section shall be applicable
to criminal convictions of the following persons:
   (1) Adults responsible for administration or direct supervision of
staff of the facility.
   (2) A person, other than a resident, residing in the facility.
   (3) A person who provides resident assistance in dressing,
grooming, bathing, or personal hygiene. A nurse assistant or home
health aide meeting the requirements of Section 1338.5 or 1736.6,
respectively, who is not employed, retained, or contracted by the
licensee, and who has been certified or recertified on or after July
1, 1998, shall be deemed to meet the criminal record clearance
requirements of this section. A certified nurse assistant and
certified home health aide who will be providing client assistance
and who falls under this exemption shall provide one copy of his or
her current certification, prior to providing care, to the
residential care facility for persons with chronic, life-threatening
illness. The facility shall maintain the copy of the certification on
file as long as care is being provided by the certified nurse
assistant or certified home health aide at the facility. This
paragraph does not restrict the right of the department to exclude a
certified nurse assistant or certified home health aide from a
licensed residential care facility for persons with chronic,
life-threatening illness pursuant to Section 1568.092.
   (4) (A) A staff person, volunteer, or employee who has contact
with the residents.
   (B) A volunteer shall be exempt from the requirements of this
subdivision if he or she is a relative, significant other, or close
friend of a client receiving care in the facility and the volunteer
does not provide direct care and supervision of residents. A
volunteer who provides direct care and supervision shall be exempt if
the volunteer is a resident's spouse, significant other, close
friend, or family member and provides direct care and supervision to
that resident only at the request of the resident. The department may
define in regulations persons similar to those described in this
subparagraph who may be exempt from the requirements of this
subdivision.
   (5) If the applicant is a firm, partnership, association, or
corporation, the chief executive officer or other person serving in
that capacity.
   (6) Additional officers of the governing body of the applicant, or
other persons with a financial interest in the applicant, as
determined necessary by the department by regulation. The criteria
used in the development of these regulations shall be based on the
person's capability to exercise substantial influence over the
operation of the facility.
   (c) (1) (A) Subsequent to initial licensure, a person specified in
subdivision (b) and not exempted from fingerprinting shall, as a
condition to employment, residence, or presence in a residential care
facility, be fingerprinted and sign a declaration under penalty of
perjury regarding any prior criminal convictions. The licensee shall
submit fingerprint images and related information to the Department
of Justice and the Federal Bureau of Investigation, through the
Department of Justice, for a state and federal level criminal
offender record information search, or to comply with paragraph (1)
of subdivision (g), prior to the person's employment, residence, or
initial presence in the residential care facility.
   (B) These fingerprint images and related information shall be
electronically submitted to the Department of Justice in a manner
approved by the State Department of Social Services and the
Department of Justice, for the purpose of obtaining a permanent set
of fingerprints. A licensee's failure to submit fingerprint images
and related information to the Department of Justice, or to comply
with paragraph (1) of subdivision (g), as required in this section,
shall result in the citation of a deficiency and an immediate
assessment of civil penalties in the amount of one hundred dollars
($100) per violation per day for a maximum of five days, unless the
violation is a second or subsequent violation within a 12-month
period in which case the civil penalties shall be in the amount of
one hundred dollars ($100) per violation for a maximum of 30 days,
and shall be grounds for disciplining the licensee pursuant to
Section 1568.082. The State Department of Social Services may assess
civil penalties for continued violations as allowed in Section
1568.0822. The fingerprint images and related information shall then
be submitted to the Department of Justice for processing. The
licensee shall maintain and make available for inspection
documentation of the individual's clearance or exemption.
   (2) A violation of the regulations adopted pursuant to Section
1522.04 shall result in the citation of a deficiency and an immediate
assessment of civil penalties in the amount of one hundred dollars
($100) per violation per day for a maximum of five days, unless the
violation is a second or subsequent violation within a 12-month
period in which case the civil penalties shall be in the amount of
one hundred dollars ($100) per violation for a maximum of 30 days,
and shall be grounds for disciplining the licensee pursuant to
Section 1568.082. The department may assess civil penalties for
continued violations as permitted by Section 1568.0822.
   (3) Within 14 calendar days of the receipt of the fingerprint
images, the Department of Justice shall notify the State Department
of Social Services of the criminal record information, as provided
for in this subdivision. If no criminal record information has been
recorded, the Department of Justice shall provide the licensee and
the State Department of Social Services with a statement of that fact
within 14 calendar days of receipt of the fingerprint images. If new
fingerprint images are required for processing, the Department of
Justice shall, within 14 calendar days from the date of receipt of
the fingerprint images, notify the licensee that the fingerprint
images were illegible. The Department of Justice shall notify the
department, as required by Section 1522.04, and shall notify the
licensee by mail within 14 days of electronic transmission of the
fingerprint images to the Department of Justice, if the person has no
criminal history record.
   (4) Except for persons specified in paragraph (2) of subdivision
(b), the licensee shall endeavor to ascertain the previous employment
history of persons required to be fingerprinted under this
subdivision. If it is determined by the State Department of Social
Services, on the basis of the fingerprint images submitted to the
Department of Justice, that the person has been convicted of a sex
offense against a minor, an offense specified in Section 243.4, 273a,
273d, 273g, or 368 of the Penal Code, or a felony, the department
shall notify the licensee to act immediately to terminate the person'
s employment, remove the person from the residential care facility,
or bar the person from entering the residential care facility. The
department may subsequently grant an exemption pursuant to
subdivision (f). If the conviction was for another crime, except a
minor traffic violation, the licensee shall, upon notification by the
department, act immediately to either (A) terminate the person's
employment, remove the person from the residential care facility, or
bar the person from entering the residential care facility; or (B)
seek an exemption pursuant to subdivision (f). The department shall
determine if the person shall be allowed to remain in the facility
until a decision on the exemption is rendered. A licensee's failure
to comply with the department's prohibition of employment, contact
with clients, or presence in the facility as required by this
paragraph shall result in a citation of deficiency and an immediate
assessment of civil penalties by the department against the licensee,
in the amount of one hundred dollars ($100) per violation per day
for a maximum of five days, unless the violation is a second or
subsequent violation within a 12-month period in which case the civil
penalties shall be in the amount of one hundred dollars ($100) per
violation for a maximum of 30 days, and shall be grounds for
disciplining the licensee pursuant to Section 1568.082.
   (5) The department may issue an exemption on its own motion
pursuant to subdivision (f) if the person's criminal history
indicates that the person is of good character based on the age,
seriousness, and frequency of the conviction or convictions. The
department, in consultation with interested parties, shall develop
regulations to establish the criteria to grant an exemption pursuant
to this paragraph.
   (6) Concurrently with notifying the licensee pursuant to paragraph
(4), the department shall notify the affected individual of his or
her right to seek an exemption pursuant to subdivision (f). The
individual may seek an exemption only if the licensee terminates the
person's employment or removes the person from the facility after
receiving notice from the department pursuant to paragraph (4).
   (d) (1) For purposes of this section or any other provision of
this chapter, a conviction means a plea or verdict of guilty or a
conviction following a plea of nolo contendere. An action that the
department is permitted to take following the establishment of a
conviction may be taken when the time for appeal has elapsed, when
the judgment of conviction has been affirmed on appeal, or when an
order granting probation is made suspending the imposition of the
sentence, notwithstanding a subsequent order pursuant to Sections
1203.4 and 1203.4a of the Penal Code permitting that person to
withdraw his or her plea of guilty and to enter a plea of not guilty,
setting aside the verdict of guilty, or dismissing the accusation,
information, or indictment. For purposes of this chapter, the record
of a conviction, or a copy thereof certified by the clerk of the
court or by a judge of the court in which the conviction occurred,
shall be conclusive evidence of the conviction. For purposes of this
section or any other provision of this chapter, the arrest
disposition report certified by the Department of Justice, or
documents admissible in a criminal action pursuant to Section 969b of
the Penal Code, shall be prima facie evidence of the conviction,
notwithstanding any other provision of law prohibiting the admission
of these documents in a civil or administrative action.
   (2) For purposes of this section or any other provision of this
chapter, the department shall consider criminal convictions from
another state or federal court as if the criminal offense was
committed in this state.
   (e) The State Department of Social Services shall not use a record
of arrest to deny, revoke, or terminate any application, license,
employment, or residence unless the department investigates the
incident and secures evidence, whether or not related to the incident
of arrest, that is admissible in an administrative hearing to
establish conduct by the person that may pose a risk to the health
and safety of any person who is or may become a client. The State
Department of Social Services is authorized to obtain arrest or
conviction records or reports from a law enforcement agency as
necessary to the performance of its duties to inspect, license, and
investigate community care facilities and individuals associated with
a community care facility.
   (f) (1) After review of the record, the director may grant an
exemption from disqualification for a license as specified in
paragraphs (1) and (4) of subdivision (a), or for employment,
residence, or presence in a residential care facility as specified in
paragraphs (4), (5), and (6) of subdivision (c) if the director has
substantial and convincing evidence to support a reasonable belief
that the applicant and the person convicted of the crime, if other
than the applicant, are of such good character as to justify issuance
of the license or special permit or granting an exemption for
purposes of subdivision (c). However, an exemption shall not be
granted pursuant to this subdivision if the conviction was for any of
the following offenses:
   (A) An offense specified in Section 220, 243.4, or 264.1,
subdivision (a) of Section 273a or, prior to January 1, 1994,
paragraph (1) of Section 273a, Section 273d, 288, or 289, subdivision
(c) of Section 290, or Section 368 of the Penal Code, or was a
conviction of another crime against an individual specified in
subdivision (c) of Section 667.5 of the Penal Code.
   (B) A felony offense specified in Section 729 of the Business and
Professions Code or Section 206 or 215, subdivision (a) of Section
347, subdivision (b) of Section 417, or subdivision (a) of Section
451 of the Penal Code.
   (2) The department shall not prohibit a person from being employed
or having contact with clients in a facility on the basis of a
denied criminal record exemption request or arrest information unless
the department complies with Section 1568.092.
   (g) (1) For purposes of compliance with this section, the
department may permit an individual to transfer a current criminal
record clearance, as defined in subdivision (a), from one facility to
another, as long as the criminal record clearance has been processed
through a state licensing district office,
                  and is being transferred to another facility
licensed by a state licensing district office. The request shall be
in writing to the department, and shall include a copy of the person'
s driver's license or valid identification card issued by the
Department of Motor Vehicles, or a valid photo identification issued
by another state or the United States government if the person is not
a California resident. Upon request of the licensee, who shall
enclose a self-addressed stamped envelope for this purpose, the
department shall verify whether the individual has a clearance that
can be transferred.
   (2) The State Department of Social Services shall hold criminal
record clearances in its active files for a minimum of two years
after an employee is no longer employed at a licensed facility in
order for the criminal record clearance to be transferred.
   (h) If a licensee or facility is required by law to deny
employment or to terminate employment of any employee based on
written notification from the state department that the employee has
a prior criminal conviction or is determined unsuitable for
employment under Section 1568.092, the licensee or facility shall not
incur civil liability or unemployment insurance liability as a
result of that denial or termination.
   (i) (1) The Department of Justice shall charge a fee sufficient to
cover its cost in providing services to comply with the 14-day
requirement contained in subdivision (c) for provision to the
department of criminal record information.
   (2) Paragraph (1) shall cease to be implemented when the
department adopts emergency regulations pursuant to Section 1522.04,
and shall become inoperative when permanent regulations are adopted
under that section.
   (j) Notwithstanding any other provision of law, the department may
provide an individual with a copy of his or her state or federal
level criminal offender record information search response as
provided to that department by the Department of Justice if the
department has denied a criminal background clearance based on this
information and the individual makes a written request to the
department for a copy specifying an address to which it is to be
sent. The state or federal level criminal offender record information
search response shall not be modified or altered from its form or
content as provided by the Department of Justice and shall be
provided to the address specified by the individual in his or her
written request. The department shall retain a copy of the individual'
s written request and the response and date provided.
  SEC. 143.  Section 1569.145 of the Health and Safety Code is
amended to read:
   1569.145.  This chapter shall not apply to any of the following:
   (a) A health facility, as defined by Section 1250.
   (b) A clinic, as defined by Section 1200.
   (c) A facility conducted by and for the adherents of a
well-recognized church or religious denomination for the purpose of
providing facilities for the care or treatment of the sick who depend
upon prayer or spiritual means for healing in the practice of the
religion of that church or denomination.
   (d) A house, institution, hotel, congregate housing project for
the elderly, or other similar place that is limited to providing one
or more of the following: housing, meals, transportation,
housekeeping, or recreational and social activities, or that have
residents independently accessing supportive services, provided,
however, that no resident thereof requires an element of care and
supervision or protective supervision as determined by the director.
This subdivision shall not include a home or residence that is
described in subdivision (f).
   (e) Recovery houses or other similar facilities providing group
living arrangements for persons recovering from alcoholism or drug
addiction where the facility provides no care or supervision.
   (f) (1) An arrangement for the care and supervision of a person or
persons by a family member.
   (2) An arrangement for the care and supervision of a person or
persons from only one family by a close friend, whose friendship
preexisted the contact between the provider and the recipient, and
both of the following are met:
   (A) The care and supervision is provided in a home or residence
chosen by the recipient.
   (B) The arrangement is not of a business nature and occurs only as
long as the needs of the recipient for care and supervision are
adequately met.
   (g) Housing for elderly or disabled persons, or both, that is
approved and operated pursuant to Section 202 of Public Law 86-372
(12 U.S.C. Sec. 1701q), or Section 811 of Public Law 101-625 (42
U.S.C. Sec. 8013), or whose mortgage is insured pursuant to Section
236 of Public Law 90-448 (12 U.S.C. Sec. 1715z), or that receives
mortgage assistance pursuant to Section 221d(3) of Public Law 87-70
(12 U.S.C. Sec. 1715l), where supportive services are made available
to residents at their option, as long as the project owner or
operator does not contract for or provide the supportive services.
The project owner or operator may coordinate, or help residents gain
access to, the supportive services, either directly, or through a
service coordinator.
   (h) A similar facility determined by the director.
   (i) For purposes of this section, "family member" means a spouse,
by marriage or otherwise, child or stepchild, by natural birth or by
adoption, parent, brother, sister, half brother, half sister,
parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt,
uncle, first cousin, or a person denoted by the prefix "grand" or
"great," or the spouse of one of these persons.
   (j) A person shall not be exempted from this chapter's licensure
requirements if he or she has been appointed as conservator of the
person, estate of the person, or both, if the person is receiving
care and supervision from the conservator as regulated by this
chapter, unless the conservator is otherwise exempted under other
provisions of this section.
  SEC. 144.  Section 1728.8 of the Health and Safety Code is amended
to read:
   1728.8.  (a) It is the intent of the Legislature to ensure that
the department licenses and certifies home health agencies in a
reasonable and timely manner to ensure that Californians have access
to critical home- and community-based services. Home health agencies
have significant startup costs and regulatory requirements, which
make home health agencies vulnerable to delays in licensing and
certification surveys. Home health agencies help the state protect
against the unnecessary institutionalization of individuals and are
integral in ensuring the state's compliance with the United States
Supreme Court decision in Olmstead v. L.C. (1999) 527 U.S. 581, which
requires public agencies to provide services in the most integrated
setting appropriate to the needs of qualified individuals with
disabilities.
   (b) No later than 90 calendar days after the department receives
an initial and complete parent, branch, or change of ownership home
health agency application, the department shall make every effort to
complete the application paperwork and conduct a licensure survey, if
necessary, to inspect the agency and evaluate the agency's
compliance with state requirements. The department shall forward its
recommendation, if necessary, and all other information, to the
federal Centers for Medicare and Medicaid Services within the same 90
calendar days.
   (c) (1) For those applicants seeking to receive reimbursement
under the Medicare or Medi-Cal programs, the department shall make
every effort to complete the initial application paperwork and
conduct an unannounced certification survey, if necessary, no later
than 90 calendar days after the department conducts the licensure
survey required by subdivision (a), or no later than 90 days after
the department's receipt of a letter from the home health agency
notifying the department of its readiness for the certification
survey from a parent or branch agency.
   (2) No later than 30 calendar days after the certification survey,
the department shall forward the results of its licensure and
certification surveys and all other information necessary for
certification to the federal Centers for Medicare and Medicaid
Services.
   (d) This section shall apply to all licensing and certification
entities, including a county that contracts with the state to provide
licensing and certification services on behalf of the state.
   (e) If the department is unable to meet the 90-day timelines for
licensing or certification required pursuant to this section, the
department shall notify the applicant in writing of the delay and the
anticipated date of the survey.
   (f) This section shall become operative on July 1, 2008.
  SEC. 145.  Section 11752.1 of the Health and Safety Code is amended
to read:
   11752.1.  (a) "County board of supervisors" includes county boards
of supervisors in the case of counties acting jointly.
   (b) "Agency" means the California Health and Human Services
Agency.
   (c) "Secretary" means the Secretary of California Health and Human
Services.
   (d) "County plan for alcohol and other drug services" or "county
plan" means the county plan, including a budget, adopted by the board
of supervisors pursuant to Chapter 4 (commencing with Section
11795).
   (e) "Advisory board" means the county advisory board on alcohol
and other drug problems established at the sole discretion of the
county board of supervisors pursuant to Section 11805. If a county
does not establish an advisory board, then any provision of this
chapter relative to the activities, duties, and functions of the
advisory board shall be inapplicable to that county.
   (f) "Alcohol and drug program administrator" means the county
program administrator designated pursuant to Section 11800.
   (g) "State alcohol and other drug program" includes all state
alcohol and other drug projects administered by the department and
all county alcohol and other drug programs funded under this
division.
   (h) "Health systems agency" means the health planning agency
established pursuant to Public Law 93-641.
   (i) "Alcohol and other drug problems" means problems of
individuals, families, and the community that are related to the
abuse of alcohol and other drugs.
   (j) "Alcohol abuser" means anyone who has a problem related to the
consumption of alcoholic beverages whether or not it is of a
periodic or continuing nature. This definition includes, but is not
limited to, persons referred to as "alcoholics" and "drinking
drivers." These problems may be evidenced by substantial impairment
to the person's physical, mental, or social well-being, which
impairment adversely affects his or her abilities to function in the
community.
   (k) "Drug abuser" means anyone who has a problem related to the
consumption of illicit, illegal, legal, or prescription drugs or
over-the-counter medications in a manner other than prescribed,
whether or not it is of a periodic or continuing nature. This
definition includes, but is not limited to, persons referred to as
"drug addicts." The drug-consumption-related problems of these
persons may be evidenced by substantial impairment to the person's
physical, mental, or social well-being, which impairment adversely
affects his or her abilities to function in the community.
   () "Alcohol and other drug service" means a service that is
designed to encourage recovery from the abuse of alcohol and other
drugs and to alleviate or preclude problems in the individual, his or
her family, and the community.
   (m) "Alcohol and other drug abuse program" means a collection of
alcohol and other drug services that are coordinated to achieve the
specified objectives of this part.
   (n) "Driving-under-the-influence program," "DUI program," or
"licensed program" means an alcohol and other drug service that has
been issued a valid license by the department to provide services
pursuant to Chapter 9 (commencing with Section 11836) of Part 2.
   (o) "Clients-participants" means recipients of alcohol and other
drug prevention, treatment, and recovery program services.
   (p) "Substance Abuse and Mental Health Services Administration"
means that agency of the United States Department of Health and Human
Services.
  SEC. 146.  Section 25210.9 of the Health and Safety Code is amended
to read:
   25210.9.  (a) Except as provided in subdivisions (e), (f), and
(g), on and after January 1, 2010, a person shall not manufacture
general purpose lights for sale in this state that contain levels of
hazardous substances that would result in the prohibition of those
general purpose lights being sold or offered for sale in the European
Union pursuant to the RoHS Directive.
   (b) Except as provided in subdivisions (e), (f), and (g), on and
after January 1, 2010, a person shall not sell or offer for sale in
this state a general purpose light under any of the following
circumstances:
   (1) The general purpose light being sold or offered for sale was
manufactured on and after January 1, 2010, and contains levels of
hazardous substances that would result in the prohibition of that
general purpose light being sold or offered for sale in the European
Union pursuant to the RoHS Directive.
   (2) The manufacturer of the general purpose light sold or being
offered for sale fails to provide the documentation to the department
required by subdivision (h).
   (3) The manufacturer of the general purpose light being sold or
offered for sale does not provide the certification required in
subdivision (i).
   (c) For the purposes of this section, "RoHS Directive" means
Directive 2002/95/EC, adopted by the European Parliament and the
Council of the European Union on January 27, 2003, on the restriction
of certain hazardous substances in electrical and electronic
equipment, as amended thereafter by the Commission of European
Communities (13.2.2003 Official Journal of the European Union).
   (d) The department shall determine the products covered by the
RoHS Directive by reference to authoritative guidance published by
the United Kingdom implementing the RoHS Directive in that country.
   (e) (1) Except as provided in paragraph (2), subdivisions (a),
(b), (h), and (i) do not apply to high output and very high output
linear fluorescent lamps greater than 32 millimeters in diameter and
preheat linear fluorescent lamps.
   (2) On or after January 1, 2014, the department shall determine,
in consultation with companies that manufacture lamps specified in
paragraph (1) in the United States, if those lamps should be subject
to the requirements of subdivisions (a), (b), (h), and (i), taking
into consideration changes in lamp design or manufacturing technology
that will allow for the removal or reduction of mercury.
   (f) On and after January 1, 2012, for high intensity discharge
lamps and compact fluorescent lamps greater than nine inches in
length, subdivisions (a), (b), (h), and (i) shall be applicable.
   (g) On and after January 1, 2014, for state-regulated general
service incandescent lamps and enhanced spectrum lamps as defined in
subdivision (k) of Section 1602 of Title 20 of the California Code of
Regulations, subdivisions (a), (b), (h), and (i) shall be
applicable.
   (h) A manufacturer of general purpose lights sold or being offered
for sale in California shall prepare and, at the request of the
department, submit within 28 days of the date of the request,
technical documentation or other information showing that the
manufacturer's general purpose lights sold or offered for sale in
this state comply with the requirements of the RoHS Directive.
   (i) A manufacturer of general purpose lights sold or being offered
for sale in California shall provide, upon request, a certification
to a person who sells or offers for sale that manufacturer's general
purpose lights. The certification shall attest that the general
purpose lights do not contain levels of hazardous substances that
would result in the prohibition of those general purpose lights being
sold or offered for sale in California. Alternatively, the
manufacturer may display the certification required by this
subdivision prominently on the shipping container or on the packaging
of general purpose lights.
   (j) The department may adopt regulations to implement and
administer this article.
  SEC. 147.  Section 25270.2 of the Health and Safety Code is amended
to read:
   25270.2.  For purposes of this chapter, the following definitions
apply:
   (a) "Aboveground storage tank" or "storage tank" means a tank that
has the capacity to store 55 gallons or more of petroleum and that
is substantially or totally above the surface of the ground.
"Aboveground storage tank" does not include any of the following:
   (1) A pressure vessel or boiler that is subject to Part 6
(commencing with Section 7620) of Division 5 of the Labor Code.
   (2) A tank containing hazardous waste, as defined in subdivision
(g) of Section 25316, if the Department of Toxic Substances Control
has issued the person owning or operating the tank a hazardous waste
facilities permit for the storage tank.
   (3) An aboveground oil production tank that is subject to Section
3106 of the Public Resources Code.
   (4) Oil-filled electrical equipment, including, but not limited
to, transformers, circuit breakers, or capacitors, if the oil-filled
electrical equipment meets either of the following conditions:
   (A) The equipment contains less than 10,000 gallons of dielectric
fluid.
   (B) The equipment contains 10,000 gallons or more of dielectric
fluid with PCB levels less than 50 parts per million, appropriate
containment or diversionary structures or equipment are employed to
prevent discharged oil from reaching a navigable water course, and
the electrical equipment is visually inspected in accordance with the
usual routine maintenance procedures of the owner or operator.
   (5) A tank regulated as an underground storage tank under Chapter
6.7 (commencing with Section 25280) of this code and Chapter 16
(commencing with Section 2610) of Division 3 of Title 23 of the
California Code of Regulations.
   (6) A transportation-related tank facility, subject to the
authority and control of the United States Department of
Transportation, as defined in the Memorandum of Understanding between
the Secretary of Transportation and the Administrator of the United
States Environmental Protection Agency, dated November 24, 1971, set
forth in Appendix A to Part 112 (commencing with Section 112.1) of
Subchapter D of Chapter I of Title 40 of the Code of Federal
Regulations.
   (b) "Board" means the State Water Resources Control Board.
   (c) (1) "Certified Unified Program Agency" or "CUPA" means the
agency certified by the Secretary for Environmental Protection to
implement the unified program specified in Chapter 6.11 (commencing
with Section 25404) within a jurisdiction.
   (2) "Participating Agency" or "PA" means an agency that has a
written agreement with the CUPA pursuant to subdivision (d) of
Section 25404.3, and is approved by the secretary, to implement and
enforce the unified program element specified in paragraph (2) of
subdivision (c) of Section 25404, in accordance with Sections 25404.1
and 25404.2.
   (3) (A) "Unified Program Agency" or "UPA" means the CUPA, or its
participating agencies to the extent that each PA has been designated
by the CUPA, pursuant to a written agreement, to implement and
enforce the unified program element specified in paragraph (2) of
subdivision (c) of Section 25404. The UPAs have the responsibility
and authority, to the extent provided by this chapter and Sections
25404.1 and 25404.2, to implement and enforce the requirements of
this chapter.
   (B) After a CUPA has been certified by the secretary, the unified
program agency shall be the only agency authorized to enforce the
requirements of this chapter.
   (C) This paragraph does not limit the authority or responsibility
granted to the board and the regional boards by this chapter.
   (d) "Operator" means the person responsible for the overall
operation of a tank facility.
   (e) "Owner" means the person who owns the tank facility or part of
the tank facility.
   (f) "Person" means an individual, trust, firm, joint stock
company, corporation, including a government corporation,
partnership, limited liability company, or association. "Person" also
includes any city, county, district, the University of California,
the California State University, the state, any department or agency
thereof, and the United States, to the extent authorized by federal
law.
   (g) "Petroleum" means crude oil, or a fraction thereof, that is
liquid at 60 degrees Fahrenheit temperature and 14.7 pounds per
square inch absolute pressure.
   (h) "Regional board" means a California regional water quality
control board.
   (i) "Release" means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, escaping, leaching, or disposing
into the environment.
   (j) "Secretary" means the Secretary for Environmental Protection.
   (k) "Storage" or "store" means the containment, handling, or
treatment of petroleum, for a period of time, including on a
temporary basis.
   (l) "Storage capacity" means the aggregate capacity of all
aboveground tanks at a tank facility.
   (m) "Tank facility" means one or more aboveground storage tanks,
including any piping that is integral to the tanks, that contain
petroleum and that are used by a single business entity at a single
location or site. For purposes of this chapter, a pipe is integrally
related to an aboveground storage tank if the pipe is connected to
the tank and meets any of the following:
   (1) The pipe is within the dike or containment area.
   (2) The pipe is between the containment area and the first flange
or valve outside the containment area.
   (3) The pipe is connected to the first flange or valve on the
exterior of the tank, if state or federal law does not require a
containment area.
  SEC. 148.  Section 25299.57 of the Health and Safety Code is
amended to read:
   25299.57.  (a) If the board makes the determination specified in
subdivision (d), the board may pay only for the costs of a corrective
action that exceed the level of financial responsibility required to
be obtained pursuant to Section 25299.32, but not more than one
million five hundred thousand dollars ($1,500,000) for each
occurrence. In the case of an owner or operator who, as of January 1,
1988, was required to perform corrective action, who initiated that
corrective action in accordance with Division 7 (commencing with
Section 13000) of the Water Code or Chapter 6.7 (commencing with
Section 25280), and who is undertaking the corrective action in
compliance with waste discharge requirements or other orders issued
pursuant to Division 7 (commencing with Section 13000) of the Water
Code or Chapter 6.7 (commencing with Section 25280), the owner or
operator may apply to the board for satisfaction of a claim filed
pursuant to this article. The board shall notify claimants applying
for satisfaction of claims from the fund of eligibility for
reimbursement in a prompt and timely manner and that a letter of
credit or commitment that will obligate funds for reimbursement shall
follow the notice of eligibility as soon thereafter as possible.
   (b) (1) For claims eligible for reimbursement pursuant to
subdivision (c) of Section 25299.55, the claimant shall submit the
actual cost of corrective action to the board, which shall either
approve or disapprove the costs incurred as reasonable and necessary.
At least 15 days before the board proposes to disapprove the
reimbursement of corrective action costs that have been incurred on
the grounds that the costs were unreasonable or unnecessary, the
board shall issue a notice advising the claimant and the lead agency
of the proposed disallowance, to allow review and comment.
   (2) The board shall not reject actual costs of corrective action
in a claim solely on the basis that the invoices submitted fail to
sufficiently detail the actual costs incurred, if all of the
following apply:
   (A) Auxiliary documentation is provided that documents to the
board's satisfaction that the invoice is for necessary corrective
action work.
   (B) The costs of corrective action work in the claim are
reasonably commensurate with similar corrective action work performed
during the same time period covered by the invoice for which
reimbursement is sought.
   (C) The invoices include a brief description of the work
performed, the date that the work was performed, the vendor, and the
amount.
   (c) (1) For claims eligible for prepayment pursuant to subdivision
(c) of Section 25299.55, the claimant shall submit the estimated
cost of the corrective action to the board, which shall approve or
disapprove the reasonableness of the cost estimate.
   (2) If the claim is for reimbursement of costs incurred pursuant
to a performance-based contract, Article 6.5 (commencing with Section
25299.64) shall apply to that claim.
   (d) Except as provided in subdivision (j), a claim specified in
subdivision (a) may be paid if the board makes all of the following
findings:
   (1) There has been an unauthorized release of petroleum into the
environment from an underground storage tank.
   (2) The claimant is required to undertake or contract for
corrective action pursuant to Section 25296.10, or, as of January 1,
1988, the claimant has initiated corrective action in accordance with
Division 7 (commencing with Section 13000) of the Water Code.
   (3) The claimant has complied with Section 25299.31.
   (4) (A) Except as provided in subparagraphs (B) and (C), the
claimant has complied with the permit requirements of Chapter 6.7
(commencing with Section 25280). A claimant shall obtain a permit
required by subdivision (a) of Section 25284 for the underground
storage tank that is the subject of the claim when the claimant
becomes subject to subdivision (a) of Section 25284 or when the
applicable local agency begins issuing permits pursuant to
subdivision (a) of Section 25284, whichever occurs later.
   (B) A claimant who acquires real property on which an underground
storage tank is situated and, despite the exercise of reasonable
diligence, was unaware of the existence of the underground storage
tank when the real property was acquired, has obtained a permit
required by subdivision (a) of Section 25284 for the underground
storage tank that is the subject of the claim within a reasonable
period, not to exceed one year, from when the claimant should have
become aware of the existence of the underground storage tank, or
when the applicable local agency began issuing permits pursuant to
Section 25284, whichever occurs later.
                               (C) All claimants who file their claim
on or after January 1, 2008, and who do not obtain a permit required
by subdivision (a) of Section 25284 in accordance with subparagraph
(A) or (B) may seek a waiver of the requirement to obtain a permit.
The board shall waive the provisions of subparagraphs (A) and (B) as
a condition for payment from the fund if the board finds all of the
following:
   (i) The claimant was unaware of the permit requirement, and upon
becoming aware of the permit requirement, the claimant complies with
subdivision (a) of Section 25284 or Section 25298 and the regulations
adopted to implement those sections within a reasonable period, not
to exceed one year, from when the claimant became aware of the permit
requirement.
   (ii) Prior to submittal of the application to the fund, the
claimant has complied with Section 25299.31 and has obtained and paid
for all permits currently required by this paragraph.
   (iii) Prior to submittal of the application to the fund, the
claimant has paid all fees, interest, and penalties imposed pursuant
to Article 5 (commencing with Section 25299.40) of this chapter and
Part 26 (commencing with Section 50101) of Division 2 of the Revenue
and Taxation Code for the underground storage tank that is the
subject of the claim.
   (D) (i) A claimant who is exempted pursuant to subparagraph (C)
and who has complied, on or before December 22, 1998, with
subdivision (a) of Section 25284 or Section 25298 and the regulations
adopted to implement those sections, shall obtain a level of
financial responsibility twice as great as the amount that the
claimant is otherwise required to obtain pursuant to subdivision (a)
of Section 25299.32, but in no event less than ten thousand dollars
($10,000). All other claimants exempted pursuant to subparagraph (C)
shall obtain a level of financial responsibility that is four times
as great as the amount that the claimant is otherwise required to
obtain pursuant to subdivision (a) of Section 25299.32, but in no
event less than twenty thousand dollars ($20,000).
   (ii) The board may waive the requirements of clause (i) if the
claimant can demonstrate that the conditions specified in clauses (i)
to (iii), inclusive, of subparagraph (C) were satisfied prior to the
causing of any contamination. The demonstration may be made through
a certification issued by the permitting agency based on a site
evaluation and tank tests at the time of permit application or in any
other manner acceptable to the board.
   (E) All claimants who file a claim before January 1, 2008, and who
are not eligible for a waiver of the permit requirements pursuant to
applicable statutes or regulations in effect on the date of the
filing of the claim may resubmit a new claim pursuant to subparagraph
(C) on or after January 1, 2008. The board shall rank all claims
resubmitted pursuant to subparagraph (C) lower than all claims filed
before January 1, 2008, within their respective priority classes
specified in subdivision (b) of Section 25299.52.
   (5) The board has approved either the costs incurred for the
corrective action pursuant to subdivision (b) or the estimated costs
for corrective action pursuant to subdivision (c).
   (6) The claimant has paid all fees, interest, and penalties
imposed pursuant to Article 5 (commencing with Section 29299.40) of
this chapter and Part 26 (commencing with Section 50101) of Division
2 of the Revenue and Taxation Code for the underground storage tank
that is the subject of the claim.
   (e) The board shall provide the claimant, whose cost estimate has
been approved, a letter of commitment authorizing payment of the
costs from the fund.
   (f) The claimant may submit a request for partial payment to cover
the costs of corrective action performed in stages, as approved by
the board.
   (g) (1) A claimant who submits a claim for payment to the board
shall submit multiple bids for prospective costs as prescribed in
regulations adopted by the board pursuant to Section 25299.77.
   (2) A claimant who submits a claim to the board for the payment of
professional engineering and geologic work shall submit multiple
proposals and fee estimates, as required by the regulations adopted
by the board pursuant to Section 25299.77. The claimant's selection
of the provider of these services is not required to be based on the
lowest estimated fee, if the fee estimate conforms with the range of
acceptable costs established by the board.
   (3) A claimant who submits a claim for payment to the board for
remediation construction contracting work shall submit multiple bids,
as required in the regulations adopted by the board pursuant to
Section 25299.77.
   (4) Paragraphs (1), (2), and (3) do not apply to a tank owned or
operated by a public agency if the prospective costs are for private
professional services within the meaning of Chapter 10 (commencing
with Section 4525) of Division 5 of Title 1 of the Government Code
and those services are procured in accordance with the requirements
of that chapter.
   (h) The board shall provide, upon the request of a claimant,
assistance to the claimant in the selection of contractors retained
by the claimant to conduct reimbursable work related to corrective
actions. The board shall develop a summary of expected costs for
common corrective actions. This summary of expected costs may be used
by claimants as a guide in the selection and supervision of
consultants and contractors.
   (i) The board shall pay, within 60 days from the date of receipt
of an invoice of expenditures, all costs specified in the work plan
developed pursuant to Section 25296.10, and all costs that are
otherwise necessary to comply with an order issued by a local, state,
or federal agency.
   (j) (1) The board shall pay a claim of not more than three
thousand dollars ($3,000) per occurrence for regulatory technical
assistance to an owner or operator who is otherwise eligible for
reimbursement under this chapter.
   (2) For purposes of this subdivision, regulatory technical
assistance is limited to assistance from a person, other than the
claimant, in the preparation and submission of a claim to the fund.
Regulatory technical assistance does not include assistance in
connection with proceedings under Section 25296.40, 25299.39.2, or
25299.56 or any action in court.
   (k) (1) Notwithstanding any other provision of this section, the
board shall pay a claim for the costs of corrective action to a
person who owns property on which is located a release from a
petroleum underground storage tank that has been the subject of a
completed corrective action and for which additional corrective
action is required because of additionally discovered contamination
from the previous release, only if the person who carried out the
earlier and completed corrective action was eligible for, and applied
for, reimbursement pursuant to subdivision (b), and only to the
extent that the amount of reimbursement for the earlier corrective
action did not exceed the amount of reimbursement authorized by
subdivision (a). Reimbursement to a claimant on a reopened site shall
occur when funds are available, and reimbursement commitment shall
be made ahead of any new letters of commitment to be issued, as of
the date of the reopening of the claim, if funding has occurred on
the original claim, in which case funding shall occur at the time it
would have occurred under the original claim.
   (2) For purposes of this subdivision, a corrective action is
completed when the local agency or regional board with jurisdiction
over the site or the board issues a closure letter pursuant to
subdivision (g) of Section 25296.10.
  SEC. 149.  Section 25299.58 of the Health and Safety Code is
amended to read:
   25299.58.  (a) Except as provided in subdivision (d), if the board
makes the determination specified in subdivision (b), the board may
reimburse only those costs that are related to the compensation of
third parties for bodily injury and property damages and that exceed
the level of financial responsibility required to be obtained
pursuant to Section 25299.32, but not more than one million dollars
($1,000,000) for each occurrence.
   (b) A claim may be paid if the board makes all of the following
findings:
   (1) There has been an unauthorized release of petroleum into the
environment from an underground storage tank.
   (2) The claimant has been ordered to pay a settlement or final
judgment for third-party bodily injury or property damage arising
from operating an underground storage tank.
   (3) The claimant has complied with Section 25299.31.
   (4) (A) Except as provided in subparagraphs (B) and (C), the
claimant has complied with the permit requirements of Chapter 6.7
(commencing with Section 25280). A claimant shall obtain a permit
required by subdivision (a) of Section 25284 for the underground
storage tank that is the subject of the claim when the claimant
becomes subject to subdivision (a) of Section 25284 or when the
applicable local agency begins issuing permits pursuant to
subdivision (a) of Section 25284, whichever occurs later.
   (B) A claimant who acquires real property on which an underground
storage tank is situated and, despite the exercise of reasonable
diligence, was unaware of the existence of the underground storage
tank when the real property was acquired, has obtained a permit
required by subdivision (a) of Section 25284 for the underground
storage tank that is the subject of the claim within a reasonable
period, not to exceed one year, from when the claimant should have
become aware of the existence of the underground storage tank, or
when the applicable local agency began issuing permits pursuant to
Section 25284, whichever occurs later.
   (C) All claimants who file their claim on or after January 1,
2008, and who do not obtain a permit required by subdivision (a) of
Section 25284 in accordance with subparagraph (A) or (B) may seek a
waiver of the requirement to obtain a permit. The board shall waive
the provisions of subparagraphs (A) and (B) as a condition for
payment from the fund if the board finds all of the following:
   (i) The claimant was unaware of the permit requirement, and upon
becoming aware of the permit requirement, the claimant complies with
subdivision (a) of Section 25284 or Section 25298 and the regulations
adopted to implement those sections within a reasonable period, not
to exceed one year, from when the claimant became aware of the permit
requirement.
   (ii) Prior to submittal of the application to the fund, the
claimant has complied with Section 25299.31 and has obtained and paid
for all permits currently required by this paragraph.
   (iii) Prior to submittal of the application to the fund, the
claimant has paid all fees, interest, and penalties imposed pursuant
to Article 5 (commencing with Section 25299.40) of this chapter and
Part 26 (commencing with Section 50101) of Division 2 of the Revenue
and Taxation Code for the underground storage tank that is the
subject of the claim.
   (D) (i) A claimant who is exempted pursuant to subparagraph (C)
and who has complied, on or before December 22, 1998, with
subdivision (a) of Section 25284 or Section 25298 and the regulations
adopted to implement those sections, shall obtain a level of
financial responsibility in an amount twice as great as the amount
that the claimant is otherwise required to obtain pursuant to
subdivision (a) of Section 25299.32, but in no event less than ten
thousand dollars ($10,000). All other claimants exempted pursuant to
subparagraph (C) shall obtain a level of financial responsibility
that is four times as great as the amount that the claimant is
otherwise required to obtain pursuant to subdivision (a) of Section
25299.32, but in no event less than twenty thousand dollars
($20,000).
   (ii) The board may waive the requirements of clause (i) if the
claimant can demonstrate that the conditions specified in clauses (i)
to (iii), inclusive, of subparagraph (C) were satisfied prior to any
contamination having been caused. The demonstration may be made
through a certification issued by the permitting agency based on a
site evaluation and tank tests at the time of permit application or
in any other manner as may be acceptable to the board.
   (E) All claimants who file a claim before January 1, 2008, and who
are not eligible for a waiver of the permit requirements pursuant to
applicable statutes or regulations in effect on the date of the
filing of the claim may resubmit a new claim pursuant to subparagraph
(C) on or after January 1, 2008. The board shall rank all claims
resubmitted pursuant to subparagraph (C) lower than all claims filed
before January 1, 2008, within their respective priority classes
specified in subdivision (b) of Section 25299.52.
   (5) The claimant is required to undertake or contract for
corrective action pursuant to Section 25296.10, or, as of January 1,
1988, the claimant has initiated corrective action in accordance with
Division 7 (commencing with Section 13000) of the Water Code or
Chapter 6.7 (commencing with Section 25280).
   (6) The claimant has paid all fees, interest, and penalties
imposed pursuant to Article 5 (commencing with Section 29299.40) of
this chapter and Part 26 (commencing with Section 50101) of Division
2 of the Revenue and Taxation Code for the underground storage tank
that is the subject of the claim.
   (c) A claimant may be reimbursed by the fund for compensation of
third parties for only the following:
   (1) Medical expenses.
   (2) Actual lost wages or business income.
   (3) Actual expenses for remedial action to remedy the effects of
damage to the property of the third party caused by the unauthorized
release of petroleum from an underground storage tank.
   (4) The fair market value of the property rendered permanently
unsuitable for use by the unauthorized release of petroleum from an
underground storage tank.
   (d) The board shall pay a claim submitted pursuant to subdivision
(d) of Section 25299.54 for the costs related to the compensation of
third parties for bodily injury and property damages that exceed the
level of financial responsibility required to be obtained pursuant to
paragraph (2) of subdivision (a) of Section 25299.32, but not more
than one million dollars ($1,000,000) for each occurrence.
  SEC. 150.  Section 39625.02 of the Health and Safety Code is
amended to read:
   39625.02.  (a) As used in this chapter and in Chapter 12.49
(commencing with Section 8879.20) of Division 1 of Title 2 of the
Government Code, the following terms have the following meanings:
   (1) "Administrative agency" means the state agency responsible for
programming bond funds made available by Chapter 12.49 (commencing
with Section 8879.20) of Division 1 of Title 2 of the Government
Code, as specified in subdivision (c).
   (2) Unless otherwise specified in this chapter, "project" includes
equipment purchase, right-of-way acquisition, and project delivery
costs.
   (3) "Recipient agency" means the recipient of bond funds made
available by Chapter 12.49 (commencing with Section 8879.20) of
Division 1 of Title 2 of the Government Code that is responsible for
implementation of an approved project.
   (4) "Fund" shall have the meaning as defined in subdivision (c) of
Section 8879.22 of the Government Code.
   (b) Administrative costs, including audit and program oversight
costs for the agency administering the program funded pursuant to
this chapter, recoverable by bond funds shall not exceed 5 percent of
the program's costs.
   (c) The State Air Resources Board is the administrative agency for
the goods movement emission reduction program pursuant to paragraph
(2) of subdivision (c) of Section 8879.23 of the Government Code.
   (d) The administrative agency shall not approve project fund
allocations for a project until the recipient agency provides a
project funding plan that demonstrates that the funds are expected to
be reasonably available and sufficient to complete the project. The
administrative agency may approve funding for usable project segments
only if the benefits associated with each individual segment are
sufficient to meet the objectives of the program from which the
individual segment is funded.
   (e) Guidelines adopted by the administrative agency pursuant to
this chapter and Chapter 12.49 (commencing with Section 8879.20) of
Division 1 of Title 2 of the Government Code are intended to provide
internal guidance for the agency and shall be exempt from the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code),
and shall do all of the following:
   (1) Provide for audit of project expenditures and outcomes.
   (2) Require that the useful life of the project be identified as
part of the project nomination process.
   (3) Require that project nominations have project delivery
milestones, including, but not limited to, start and completion dates
for environmental clearance, land acquisition, design, construction
bid award, construction completion, and project closeout, as
applicable.
   (f) (1) As a condition for allocation of funds to a specific
project under Chapter 12.49 (commencing with Section 8879.20) of
Division 1 of Title 2 of the Government Code, the administrative
agency shall require the recipient agency to report, on a semiannual
basis, on the activities and progress made toward implementation of
the project. The administrative agency shall forward the report to
the Department of Finance by means approved by the Department of
Finance. The purpose of the report is to ensure that the project is
being executed in a timely fashion, and is within the scope and
budget identified when the decision was made to fund the project. If
it is anticipated that project costs will exceed the approved project
budget, the recipient agency shall provide a plan to the
administrative agency for achieving the benefits of the project by
either downscoping the project to remain within budget or by
identifying an alternative funding source to meet the cost increase.
The administrative agency may either approve the corrective plan or
direct the recipient agency to modify its plan.
   (2) Within six months of the project becoming operable, the
recipient agency shall provide a report to the administrative agency
on the final costs of the project as compared to the approved project
budget, the project duration as compared to the original project
schedule as of the date of allocation, and performance outcomes
derived from the project compared to those described in the original
application for funding. The administrative agency shall forward the
report to the Department of Finance by means approved by the
Department of Finance.
  SEC. 151.  Section 43869 of the Health and Safety Code is amended
to read:
   43869.  (a) The state board shall, no later than July 1, 2008,
develop and, after at least two public workshops, adopt hydrogen fuel
regulations to ensure the following:
   (1) That state funding for the production and use of hydrogen
fuel, as described in the California Hydrogen Highway Blueprint Plan,
contributes to the reduction of greenhouse gas emissions, criteria
air pollutant emissions, and toxic air contaminant emissions. The
regulations, at a minimum, shall do all of the following:
   (A) Require that, on a statewide basis, well-to-wheel emissions of
greenhouse gases for the average hydrogen-powered vehicle fueled by
hydrogen from fueling stations that receive state funds are at least
30 percent lower than emissions for the average new gasoline vehicle
in California when measured on a per-mile basis.
   (B) (i) Require that, on a statewide basis, no less than 33.3
percent of the hydrogen produced for, or dispensed by, fueling
stations that receive state funds be made from eligible renewable
energy resources as defined in Section 399.12 of the Public Utilities
Code.
   (ii) If the state board determines that there is insufficient
availability of hydrogen fuel from eligible renewable resources to
meet the 33.3-percent requirement of this subparagraph, the state
board may, after at least one public workshop and on a one-time
basis, reduce the requirement by an amount, not to exceed 10
percentage points, that the state board determines is necessary to
result in a renewable percentage requirement for hydrogen fuel that
is achievable.
   (iii) If the executive officer of the state board determines that
it is not feasible for a public transit operator to use hydrogen fuel
made from eligible renewable resources, the executive officer may
exempt the operator from the requirements of this subparagraph for a
period of not more than five years and may extend the exemption for
up to five additional years.
   (C) Prohibit hydrogen fuel producers from counting as a renewable
energy resource, pursuant to clause (i) of subparagraph (B), any
electricity produced from sources previously procured by a retail
seller and verifiably counted by the retail seller towards meeting
the renewables portfolio standard obligation, as required by Article
16 (commencing with Section 399.11) of Chapter 2.3 of Part 1 of
Division 1 of the Public Utilities Code.
   (D) Require that all hydrogen fuel dispensed from fueling stations
that receive state funds be generated in a manner so that local
well-to-tank emissions of nitrogen oxides plus reactive organic gases
are at least 50 percent lower than well-to-tank emissions of the
average motor gasoline sold in California when measured on an energy
equivalent basis.
   (E) Require that well-to-tank emissions of relevant toxic air
contaminants for hydrogen fuel dispensed from fueling stations that
receive state funds be reduced to the maximum extent feasible at each
site when compared to well-to-tank emissions of toxic air
contaminants of the average motor gasoline fuel on an energy
equivalent basis. In no case shall the toxic emissions be greater
than the emissions from gasoline on an energy equivalent basis.
   (F) Require that providers of hydrogen fuel for transportation in
the state report to the state board the annual mass of hydrogen fuel
dispensed and the method by which the dispensed hydrogen was produced
and delivered.
   (G) Authorize the state board, after at least one public workshop,
to grant authority to the executive officer of the state board to
exempt from this paragraph, for a period of no more than five years,
hydrogen dispensing facilities constructed for small demonstration or
temporary purposes. The exemption may be extended on a case-by-case
basis upon a finding that the extension will not harm public health.
The executive officer may limit the total number of exemptions by
geographic region, including by air district, but the average annual
mass of hydrogen dispensed from exempted facilities shall not exceed
10 percent of the total mass of hydrogen fuel dispensed for
transportation purposes in the state.
   (2) That, in any year immediately following a 12-month period in
which the mass of hydrogen fuel dispensed for transportation purposes
in California exceeds 3,500 metric tons, the production and direct
use of hydrogen fuels for motor vehicles in the state, including, but
not limited to, any hydrogen highway network that is developed
pursuant to the California Hydrogen Highway Blueprint Plan,
contributes to a reduced dependence on petroleum, as well as
reductions in greenhouse gas emissions, criteria air pollutant
emissions, and toxic air contaminant emissions. For the purpose of
this paragraph, the regulations, at a minimum, shall do all of the
following:
   (A) Require that, on a statewide basis, well-to-wheel emissions of
greenhouse gases for the average hydrogen-powered vehicle in
California are at least 30 percent lower than emissions for the
average new gasoline vehicle in California when measured on a
per-mile basis.
   (B) Require that, on a statewide basis, no less than 33.3 percent
of the hydrogen produced or dispensed in California for motor
vehicles be made from eligible renewable energy resources as defined
in Section 399.12 of the Public Utilities Code.
   (C) Prohibit hydrogen fuel producers from counting as a renewable
energy resource, for purposes of subparagraph (B), any electricity
produced from sources previously procured by a retail seller and
verifiably counted by the retail seller towards meeting the
requirements established by the California Renewables Portfolio
Standard Program, as set forth in Article 16 (commencing with Section
399.11) of Chapter 2.3 of Part 1 of Division 1 of the Public
Utilities Code.
   (D) Require that all hydrogen fuel dispensed in California for
motor vehicles be generated in a manner so that local well-to-tank
emissions of nitrogen oxides plus reactive organic gases are at least
50 percent lower than well-to-tank emissions of the average motor
gasoline sold in California when measured on an energy equivalent
basis.
   (E) Require that well-to-tank emissions of relevant toxic air
contaminants from hydrogen fuel produced or dispensed in California
be reduced to the maximum extent feasible at each site when compared
to well-to-tank emissions of toxic air contaminants of the average
motor gasoline fuel on an energy equivalent basis. In no case shall
the toxic emissions from hydrogen fuel be greater than the toxic
emissions from gasoline on an energy equivalent basis.
   (F) Authorize the state board, after at least one public workshop,
to grant authority to the executive officer of the state board to
exempt from this paragraph, for a period of no more than five years,
hydrogen dispensing facilities that dispense an average of no more
than 100 kilograms of hydrogen fuel per month. The exemption may be
extended on a case-by-case basis by the executive officer upon a
finding that the extension will not harm public health. The executive
officer may limit the total number of exemptions by geographic
region, including by air district, but the average annual mass of
hydrogen dispensed statewide from exempted facilities shall not
exceed 10 percent of the total mass of hydrogen fuel dispensed for
transportation purposes in the state.
   (G) Authorize the state board, if it determines that reporting is
necessary to facilitate enforcement of the requirements of this
paragraph, to require that providers of hydrogen fuel for
transportation in the state report to the state board the annual mass
of hydrogen fuel dispensed and the method by which the dispensed
hydrogen was produced and delivered.
   (b) Notwithstanding paragraph (2) of subdivision (a), the state
board may increase the 3,500-metric-ton threshold in paragraph (2) of
subdivision (a) by no more than 1,500 metric tons if at least one of
the following requirements is met:

         (1) The 3,500-metric-ton threshold is first met prior to
January 1, 2011.
   (2) The state board determines that the 3,500-metric-ton threshold
has been met primarily due to hydrogen fuel consumed in heavy duty
vehicles.
   (3) The state board determines at a public hearing that increasing
the threshold would accelerate the deployment of hydrogen fuel cell
vehicles in the state.
   (c) The state board, in consultation with other relevant agencies
as appropriate, shall review the renewable resource requirements
adopted pursuant to this section every four years and shall increase
the renewable resource percentage requirements if it determines that
it is technologically feasible to do so and will not substantially
hinder the development of hydrogen as a transportation fuel in a
manner that is consistent with this section.
   (d) The state board shall review the emission requirements adopted
pursuant to this section every four years and shall strengthen the
requirements if it determines it is technologically feasible to do so
and will not substantially hinder the development of hydrogen as a
transportation fuel in a manner that otherwise is consistent with
this section.
   (e) The state board shall produce and periodically update a
handbook to inform and educate motor vehicle manufacturers, hydrogen
fuel producers, hydrogen service station operators, and other
interested parties on how to comply with the requirements set forth
in this section. This handbook shall be made available on the agency'
s Internet Web site on or before July 1, 2009.
   (f) The Secretary for Environmental Protection shall convene the
California Environmental Protection Agency's Environmental Justice
Advisory Committee at least once annually to solicit the committee's
comments on the production and distribution of hydrogen fuel in the
state.
   (g) The Secretary for Environmental Protection, in consultation
with the state board, shall recommend to the Legislature and the
Governor, on or before January 1, 2010, incentives that could be
offered to businesses within the hydrogen fuel industry and consumers
to spur the development of clean sources of hydrogen fuel.
   (h) Unless the context requires otherwise, the definitions set
forth in this subdivision govern the construction of this section:
   (1) "Well-to-tank emissions" means emissions resulting from
production of a fuel, including resource extraction, initial
processing, transport, fuel production, distribution and marketing,
and delivery into the fuel tank of a consumer vehicle.
   (2) "Well-to-wheel emissions" means emissions resulting from
production of a fuel, including resource extraction, initial
processing, transport, fuel production, distribution and marketing,
and delivery and use in a consumer vehicle.
  SEC. 152.  Section 44125 of the Health and Safety Code is amended
to read:
   44125.  (a) No later than July 1, 2009, the state board, in
consultation with the Bureau of Automotive Repair (BAR), shall adopt
a program to commence on January 1, 2010, that allows for the
voluntary retirement of passenger vehicles and light-duty and
medium-duty trucks that are high polluters. The program shall be
administered by the BAR pursuant to guidelines adopted by the state
board.
   (b) The guidelines shall ensure all of the following:
   (1) Vehicles retired pursuant to the program are permanently
removed from operation and retired at a dismantler under contract
with the BAR.
   (2) Districts retain their authority to administer vehicle
retirement programs otherwise authorized under law.
   (3) The program is available for high polluting passenger vehicles
and light-duty and medium-duty trucks that have been continuously
registered in California for two years prior to acceptance into the
program or otherwise proven to have been driven primarily in
California for the last two years and have not been registered in
another state or country in the last two years.
   (4) The program is focused where the greatest air quality impact
can be identified.
   (5) Compensation levels for retired vehicles are flexible, taking
into account factors including, but not limited to, the age of the
vehicle, the emission benefits of the vehicle's retirement, the
emission impact of any replacement vehicle, and the location of
vehicles in areas of the state with the poorest air quality.
   (6) Cost-effectiveness and impacts on disadvantaged and low-income
populations are considered.
  SEC. 153.  Section 44272 of the Health and Safety Code is amended
to read:
   44272.  (a) The Alternative and Renewable Fuel and Vehicle
Technology Program is hereby created. The program shall be
administered by the commission. The program shall provide, upon
appropriation by the Legislature, grants, revolving loans, loan
guarantees, loans, or other appropriate measures, to public agencies,
vehicle and technology consortia, businesses and projects,
public-private partnerships, workforce training partnerships and
collaboratives, fleet owners, consumers, recreational boaters, and
academic institutions to develop and deploy innovative technologies
that transform California's fuel and vehicle types to help attain the
state's climate change policies. The emphasis of this program shall
be to develop and deploy technology and alternative and renewable
fuels in the marketplace, without adopting any one preferred fuel or
technology.
   (b) The commission shall provide preferences to those projects
that maximize the goals of the Alternative and Renewable Fuel and
Vehicle Technology Program, based on the following criteria, as
appropriate:
   (1) The project's ability to provide a measurable transition from
the nearly exclusive use of petroleum fuels to a diverse portfolio of
viable alternative fuels that meet petroleum reduction and
alternative fuel use goals.
   (2) The project's consistency with existing and future state
climate change policy and low-carbon fuel standards.
   (3) The project's ability to reduce criteria air pollutants and
air toxics and reduce or avoid multimedia environmental impacts.
   (4) The project's ability to decrease, on a life-cycle basis, the
emissions of water pollutants or any other substances known to damage
human health or the environment, in comparison to the production and
use of California Phase 2 Reformulated Gasoline or diesel fuel
produced and sold pursuant to California diesel fuel regulations set
forth in Article 2 (commencing with Section 2280) of Chapter 5 of
Division 3 of Title 13 of the California Code of Regulations.
   (5) The project does not adversely impact the sustainability of
the state's natural resources, especially state and federal lands.
   (6) The project provides nonstate matching funds.
   (7) The project provides economic benefits for California by
promoting California-based technology firms, jobs, and businesses.
   (8) The project uses existing or proposed fueling infrastructure
to maximize the outcome of the project.
   (9) The project's ability to reduce on a life-cycle assessment
greenhouse gas emissions by at least 10 percent, and higher
percentages in the future, from current reformulated gasoline and
diesel fuel standards established by the state board.
   (10) The project's use of alternative fuel blends of at least 20
percent, and higher blend ratios in the future, with a preference for
projects with higher blends.
   (11) The project drives new technology advancement for vehicles,
vessels, engines, and other equipment, and promotes the deployment of
that technology in the marketplace.
   (c) All of the following shall be eligible for funding:
   (1) Alternative and renewable fuel projects to develop and improve
alternative and renewable low-carbon fuels, including electricity,
ethanol, dimethyl ether, renewable diesel, natural gas, hydrogen, and
biomethane, among others, and their feedstocks that have high
potential for long-term or short-term commercialization, including
projects that lead to sustainable feedstocks.
   (2) Demonstration and deployment projects that optimize
alternative and renewable fuels for existing and developing engine
technologies.
   (3) Projects to produce alternative and renewable low-carbon fuels
in California.
   (4) Projects to decrease the overall impact of an alternative and
renewable fuel's life-cycle carbon footprint and increase
sustainability.
   (5) Alternative and renewable fuel infrastructure, fueling
stations, and equipment. The preference in paragraph (10) of
subdivision (b) shall not apply to these projects.
   (6) Projects to develop and improve light-, medium-, and
heavy-duty vehicle technologies that provide for better fuel
efficiency and lower greenhouse gas emissions, alternative fuel usage
and storage, or emission reductions, including propulsion systems,
advanced internal combustion engines with a 40 percent or better
efficiency level over the current market standard, lightweight
materials, energy storage, control systems and system integration,
physical measurement and metering systems and software, development
of design standards and testing and certification protocols, battery
recycling and reuse, engine and fuel optimization electronic and
electrified components, hybrid technology, plug-in hybrid technology,
fuel cell technology, and conversions of hybrid technology to
plug-in technology through the installation of safety certified
supplemental battery modules.
   (7) Programs and projects that accelerate the commercialization of
vehicles and alternative and renewable fuels including buy-down
programs through near-market and market-path deployments, advanced
technology warranty or replacement insurance, development of market
niches, and supply-chain development.
   (8) Programs and projects to retrofit medium- and heavy-duty
on-road and nonroad vehicle fleets with technologies that create
higher fuel efficiencies, including alternative and renewable fuel
vehicles and technologies, idle management technology, and
aerodynamic retrofits that decrease fuel consumption.
   (9) Infrastructure projects that promote alternative and renewable
fuel infrastructure development connected with existing fleets,
public transit, and existing transportation corridors, including
physical measurement or metering equipment and truck stop
electrification.
   (10) Workforce training programs related to alternative and
renewable fuel feedstock production and extraction, renewable fuel
production, distribution, transport, and storage, high-performance
and low-emission vehicle technology and high tower electronics,
automotive computer systems, mass transit fleet conversion,
servicing, and maintenance, and other sectors or occupations related
to the purposes of this chapter.
   (11) Block grants administered by not-for-profit technology
consortia for multiple projects, education and program promotion
within California, and development of alternative and renewable fuel
and vehicle technology centers.
   (d) The same requirements in Section 25620.5 of the Public
Resources Code shall apply to awards made on a single source basis or
a sole sources basis.
  SEC. 154.  Section 101317 of the Health and Safety Code is amended
to read:
   101317.  (a) For purposes of this article, allocations shall be
made to the administrative bodies of qualifying local health
jurisdictions described as public health administrative organizations
in Section 101185, and pursuant to Section 101315, in the following
manner:
   (1) (A) For the 2003-04 fiscal year and subsequent fiscal years,
to the administrative bodies of each local health jurisdiction, a
basic allotment of one hundred thousand dollars ($100,000), subject
to the availability of funds appropriated in the annual Budget Act or
another act.
   (B) For the 2002-03 fiscal year, the basic allotment of one
hundred thousand dollars ($100,000) shall be reduced by the amount of
federal funding allocated as part of a basic allotment for the
purposes of this article to local health jurisdictions in the 2001-02
fiscal year.
   (2) (A) Except as provided in subdivision (c), after determining
the amount allowed for the basic allotment as provided in paragraph
(1), the balance of the annual appropriation for purposes of this
article, if any, shall be allotted on a per capita basis to the
administrative bodies of each local health jurisdiction in the
proportion that the population of that local health jurisdiction
bears to the population of all eligible local health jurisdictions of
the state.
   (B) The population estimates used for the calculation of the per
capita allotment pursuant to subparagraph (A) shall be based on the
Department of Finance's E-1 Report, "City/County Population Estimates
with Annual Percentage Change," as of January 1 of the previous
year. However, if within a local health jurisdiction there are one or
more city health jurisdictions, the local health jurisdiction shall
subtract the population of the city or cities from the local health
jurisdiction total population for purposes of calculating the per
capita total.
   (b) If the amounts appropriated are insufficient to fully fund the
allocations specified in subdivision (a), the department shall
prorate and adjust each local health jurisdiction's allocation so
that the total amount allocated equals the amount appropriated.
   (c) For the 2002-03 fiscal year and subsequent fiscal years, where
the federally approved collaborative state-local plan identifies an
allocation method, other than the basic allotment and per capita
method described in subdivision (a), for specific funding to a local
public health jurisdiction, including, but not limited to, funding
laboratory training, chemical and nuclear terrorism preparedness,
smallpox preparedness, and information technology approaches, that
funding shall be paid to the administrative bodies of those local
health jurisdictions in accordance with the federally approved
collaborative state-local plan for bioterrorism preparedness and
other public health threats in the state.
   (d) Funds appropriated pursuant to the annual Budget Act or
another act for allocation to local health jurisdictions pursuant to
this article shall be disbursed quarterly to local health
jurisdictions beginning July 1, 2002, using the following process:
   (1) Each fiscal year, upon the submission of an application for
funding by the administrative body of a local health jurisdiction,
the department shall make the first quarterly payment to each
eligible local health jurisdiction. Initially, that application shall
include a plan and budget for the local program that is in
accordance with the department's plans and priorities for
bioterrorism preparedness and response, and other public health
threats and emergencies, and a certification by the chairperson of
the board of supervisors or the mayor of a city with a local health
department that the funds received pursuant to this article will not
be used to supplant other funding sources in violation of subdivision
(d) of Section 101315. In subsequent years, the department shall
develop a streamlined process for continuation of funding that will
address new federal requirements and will assure the continuity of
local plan activities.
   (2) The department shall establish procedures and a format for the
submission of the local health jurisdiction's plan and budget. The
local health jurisdiction's plan shall be consistent with the
department's plans and priorities for bioterrorism preparedness and
response and other public health threats and emergencies in
accordance with requirements specified in the department's federal
grant award. Payments to local health jurisdictions beyond the first
quarter shall be contingent upon the approval of the department of
the local health jurisdiction's plan and the local health
jurisdiction's progress in implementing the provisions of the local
health jurisdiction's plan, as determined by the department.
   (3) If a local health jurisdiction does not apply or submits a
noncompliant application for its allocation, those funds provided
under this article may be redistributed according to subdivision (a)
to the remaining local health jurisdictions.
   (e) Funds shall be used for activities to improve and enhance
local health jurisdictions' preparedness for and response to
bioterrorism and other public health threats and emergencies, and for
other purposes, as determined by the department, that are consistent
with the purposes for which the funds were appropriated.
   (f) A local health jurisdiction that receives funds pursuant to
this article shall deposit them in a special local public health
preparedness trust fund established solely for this purpose before
transferring or expending the funds for any of the uses allowed
pursuant to this article. The interest earned on moneys in the fund
shall accrue to the benefit of the fund and shall be expended for the
same purposes as other moneys in the fund.
   (g) (1) A local health jurisdiction that receives funding pursuant
to this article shall submit reports that display cost data and the
activities funded by moneys deposited in its local public health
preparedness trust fund to the department on a regular basis in a
form and according to procedures prescribed by the department.
   (2) The department, in consultation with local health
jurisdictions, shall develop required content for the reports
required under paragraph (1), which shall include, but shall not be
limited to, data and information needed to implement this article and
to satisfy federal reporting requirements. The chairperson of the
board of supervisors or the mayor of a city with a local health
department shall certify the accuracy of the reports and that the
moneys appropriated for the purposes of this article have not been
used to supplant other funding sources.
   (3) It is the intent of the Legislature that the department shall
audit the cost reports every three years, commencing in January 2007,
to determine compliance with federal requirements and consistency
with local health jurisdiction budgets, contingent upon the
availability of federal funds for this activity, and contingent upon
the continuation of federal funding for emergency preparedness and
bioterrorism preparedness. All cost-compliance reports and audit
exceptions or related analyses or reports issued by the State
Department of Public Health regarding the expenditure of funding for
emergency and bioterrorism preparedness by local health jurisdictions
shall be made available to the Legislature upon request.
   (h) The administrative body of a local health jurisdiction may
enter into a contract with the department and the department may
enter into a contract with that local health jurisdiction for the
department to administer all or a portion of the moneys allocated to
the local health jurisdiction pursuant to this article. The
department may use funds retained on behalf of a local health
jurisdiction pursuant to this subdivision solely for purposes of
administering the jurisdiction's bioterrorism preparedness
activities. The funds appropriated pursuant to this article and
retained by the department pursuant to this subdivision are available
for expenditure and encumbrance for purposes of support or local
assistance.
   (i) The department may recoup from a local health jurisdiction
moneys allocated pursuant to this article that are unspent or that
are not expended for purposes specified in subdivision (d). The
department may also recoup funds expended by a local health
jurisdiction in violation of subdivision (d) of Section 101315. The
department may withhold quarterly payments of moneys to a local
health jurisdiction if the local health jurisdiction is not in
compliance with this article or the terms of that local health
jurisdiction's plan as approved by the department. Before any funds
are recouped or withheld from a local health jurisdiction, the
department shall meet with local health officials to discuss the
status of the unspent moneys or the disputed use of the funds, or
both.
   (j) Notwithstanding any other provision of law, moneys made
available for bioterrorism preparedness pursuant to this article in
the 2001-02 fiscal year shall be available for expenditure and
encumbrance until June 30, 2003. Moneys made available for
bioterrorism preparedness pursuant to this article from July 1, 2002,
to August 30, 2003, inclusive, shall be available for expenditure
and encumbrance until August 30, 2004. Moneys made available in the
2003-04 Budget Act for bioterrorism preparedness shall be available
for expenditure and encumbrance until August 30, 2005.
  SEC. 155.  Section 111071 of the Health and Safety Code is amended
to read:
   111071.  (a) As a condition of licensure, each bottled water
plant, which has the same meaning as the definition in subdivision
(c) of Section 111070, shall annually prepare a bottled water report
and shall, upon request, make that report available to each customer.

   (b) The report shall be prepared in English, Spanish, and in the
appropriate languages for each non-English-speaking group other than
Spanish that exceeds 10 percent of the state's population.
   (c) For purposes of complying with this section, when bottled
water comes from a municipal source, the relevant information from
the consumer confidence report or water quality report prepared for
that year by the public water system pursuant to Section 116470 may
be used.
   (d) The bottled water report shall include, but not be limited to,
all of the following:
   (1) The source of the bottled water, consistent with applicable
state and federal regulations.
   (2) A brief and plainly worded definition of the terms "statement
of quality," "maximum contaminant level," "primary drinking water
standard," and "public health goal."
   (3) A brief description of the treatment process.
   (4) A reference to the United States Food and Drug Administration
Internet Web site that provides product recall information.
   (5) The bottled water company's address and telephone number that
enables customers to obtain further information concerning
contaminants and potential health effects.
   (6) Information on the levels of unregulated substances, if any,
for which water bottlers are required to monitor pursuant to state or
federal law or regulation.
   (7) (A) The following statement:

  "Drinking water, including bottled water, may reasonably be
expected to contain at least small amounts of some contaminants. The
presence of contaminants does not necessarily indicate that water
poses a health risk. More information about contaminants and
potential health effects can be obtained by calling the United States
Food and Drug Administration, Food and Cosmetic Hotline
(1-888-723-3366)."

   (B) If the telephone number for the United States Food and Drug
Administration, Food and Cosmetic Hotline changes, the statement
shall be updated to reflect the new telephone number.
   (8) The following statement:

  "Some persons may be more vulnerable to contaminants in drinking
water than the general population. Immuno-compromised persons,
including, but not limited to, persons with cancer who are undergoing
chemotherapy, persons who have undergone organ transplants, persons
with HIV/AIDS or other immune system disorders, some elderly persons,
and infants can be particularly at risk from infections. These
persons should seek advice about drinking water from their health
care providers. The United States Environmental Protection Agency and
the federal Centers for Disease Control and Prevention guidelines on
appropriate means to lessen the risk of infection by cryptosporidium
and other microbial contaminants are available from the Safe
Drinking Water Hotline (1-800-426-4791)."

   (9) The following statement:

  "The sources of bottled water include rivers, lakes, streams,
ponds, reservoirs, springs, and wells. As water naturally travels
over the surface of the land or through the ground, it can pick up
naturally occurring substances as well as substances that are present
due to animal and human activity.
  Substances that may be present in the source water include any of
the following:
  (1) Inorganic substances, including, but not limited to, salts and
metals, that can be naturally occurring or result from farming, urban
stormwater runoff, industrial or domestic wastewater discharges, or
oil and gas production.
  (2) Pesticides and herbicides that may come from a variety of
sources, including, but not limited to, agriculture, urban stormwater
runoff, and residential uses.
  (3) Organic substances that are byproducts of industrial processes
and petroleum production and can also come from gas stations, urban
stormwater runoff, agricultural application, and septic systems.
  (4) Microbial organisms that may come from wildlife, agricultural
livestock operations, sewage treatment plants, and septic systems.
  (5) Substances with radioactive properties that can be naturally
occurring or be the result of oil and gas production and mining
activities."

   (10) The following statement:




  "In order to ensure that bottled water is safe to drink, the United
States Food and Drug Administration and the State Department of
Public Health prescribe regulations that limit the amount of certain
contaminants in water provided by bottled water companies."

   (11) (A) The following statement, if nitrate (NO3) levels above 23
ppm but below 45 ppm (the maximum contaminant level for nitrate
(NO3)) are detected:

  "Nitrate in drinking water at levels above 45 mg/L is a health risk
for infants of less than six months of age. These nitrate levels in
drinking water can interfere with the capacity of the infant's blood
to carry oxygen, resulting in a serious illness. Symptoms include
shortness of breath and blueness of the skin. Nitrate levels above 45
mg/L may also affect the ability of the blood to carry oxygen in
other individuals, including, but not limited to, pregnant women and
those with certain specific enzyme deficiencies. If you are caring
for an infant, or you are pregnant, you should ask advice from your
health care provider."

   (B) If the nitrate disclosure requirements for municipal water
suppliers are revised by the State Department of Public Health, this
statement shall be updated to reflect the revision.
   (12) (A) The following statement, if arsenic levels above 5 ppb,
but below 10 ppb (the maximum contaminant level for arsenic), are
detected:

  "Arsenic levels above 5 ppb and up to 10 ppb are present in your
drinking water. While your drinking water meets the current EPA
standard for arsenic, it does contain low levels of arsenic. The
standard balances the current understanding of arsenic's possible
health effects against the costs of removing arsenic from drinking
water. The State Department
  of Public Health continues to research the health effects of low
levels of arsenic, which is a mineral known to cause cancer in humans
at high concentrations and is linked to other health effects,
including, but not limited to, skin damage and circulatory problems."

   (B) If the arsenic disclosure requirements for municipal water
suppliers are revised by the State Department of Public Health, this
statement shall be updated to reflect the revision.

   (13) A full disclosure of any exemption or variance that has been
granted to the bottler by the State Department of Public Health,
including an explanation of reasons for each exemption or variance
and the date of the exemption or variance.
  SEC. 156.  Section 116033 of the Health and Safety Code is amended
to read:
   116033.  Persons providing aquatic instruction, including, but not
limited to, swimming instruction, water safety instruction, water
contact activities, and competitive aquatic sports, at a public
swimming pool shall possess current certificates from an American Red
Cross or YMCA of the U.S.A. lifeguard training program, or have
equivalent qualifications, as determined by the department. In
addition, these persons shall be certified in standard first aid and
cardiopulmonary resuscitation (CPR). All these persons shall meet
these qualifications by January 1, 1991. Persons who only disseminate
written materials relating to water safety are not persons providing
aquatic instruction within the meaning of this section.
   The requirements of this section shall be waived under either of
the following circumstances: (a) when one or more aquatic instructors
possessing the current certificates from an American Red Cross or
YMCA of the U.S.A. lifeguard training program, or the equivalent, are
in attendance continuously during periods of aquatic instruction, or
(b) when one or more lifeguards meeting the requirements of Section
116028 are in attendance continuously during periods of aquatic
instruction.
  SEC. 157.  Section 121530 of the Health and Safety Code is amended
to read:
   121530.  The examination shall consist of either an approved
intradermal tuberculin test or any other test for tuberculosis
infection that has been recommended by the CDC and licensed by the
FDA, that, if positive, shall be followed by an X-ray of the lungs.
  SEC. 158.  Section 122354 of the Health and Safety Code is amended
to read:
   122354.  (a) The pet store operator or at least one of his or her
employees shall be present in the store at least once daily,
regardless of whether the store is open, for care and maintenance of
the animals in the pet store.
   (b) A pet store operator shall comply with the following animal
care requirements:
   (1) House only compatible animals in the same enclosure.
   (2) Observe each animal at regular intervals, at least once a day,
in order to recognize and evaluate general symptoms of sickness,
injury, or abnormal behavior.
   (3) Take reasonable measures to house intact mammals that have
reached sexual maturity in a manner to prevent unplanned
reproduction.
   (4) (A) Maintain and abide by written animal husbandry procedures
that address animal care, management and safe handling, disease
prevention and control, routine care, preventive care, emergency
care, veterinary treatment, euthanasia, and disaster planning,
evacuation, and recovery that is applicable to the location of the
pet store. These procedures shall be reviewed with employees who
provide animal care and shall be present in writing, either
electronically or physically, in the store and made available to all
store employees.
   (B) Sections 122356 and 122358 do not apply to subparagraph (A) if
other local, state, or federal laws apply to those procedures.
   (5) (A) If there is a determination that an animal may need to be
euthanized, ensure that veterinary treatment is provided without
delay.
   (B) Notwithstanding subparagraph (A), an animal intended as food
for another animal may be destroyed using a method or methods of
euthanasia that are humane, involve painless loss of consciousness
and immediate death as specified in Appendix 2 of the American
Veterinary Medical Association (AVMA) 2000 Report of the AVMA Panel
on Euthanasia, and as authorized for the species in the documented
program prescribed in paragraph (7).
   (C) Each employee who performs euthanasia shall receive adequate
training in the method or methods used and proof of successful
completion of that training shall be documented in writing and
retained by the pet store. All training records shall be maintained
by the pet store for two years, and shall be made available, upon
request, to appropriate law enforcement officers exercising authority
pursuant to Section 122356.
   (D) Subparagraphs (A) to (C), inclusive, shall be implemented in a
manner consistent with California law and in accordance with Chapter
11 (commencing with Section 4800) of Division 2 of the Business and
Professions Code.
   (6) Isolate and not offer for sale those animals that have or are
suspected of having a contagious condition. This paragraph shall not
apply to those animals that are effectively isolated by their primary
enclosure, including, but not limited to, fish, provided that a sign
is posted on the enclosure that indicates that these animals are not
for sale, or otherwise marked in a manner to prevent their sale to
customers during their treatment for the contagious condition.
   (7) Have a documented program of routine care, preventive care,
and emergency care, disease control and prevention, and veterinary
treatment and euthanasia, as outlined in paragraph (5), that is
established and maintained by the pet store in consultation with a
licensed veterinarian employed by the pet store or a
California-licensed veterinarian, to ensure adherence to the program
with respect to each animal. The program shall also include a
documented onsite visit to the pet store premises by a
California-licensed veterinarian at least once a year.
   (8) Ensure that each diseased, ill, or injured animal is evaluated
and treated without delay. If necessary for the humane care and
treatment of the animal, the animal shall be provided with veterinary
treatment without delay.
   (9) In the event of a natural disaster, an emergency evacuation,
or other similar occurrence, the humane care and treatment of each
animal is provided for, as required by this chapter, to the extent
access to the animal is reasonably available.
   (c) Subdivisions (a) and (b) shall be implemented to the extent
consistent with California law.
  SEC. 159.  Section 124900 of the Health and Safety Code is amended
to read:
   124900.  (a) (1) The State Department of Health Care Services
shall select primary care clinics that are licensed under
subparagraph (A) or (B) of paragraph (1) of subdivision (a) of
Section 1204, or are exempt from licensure under subdivision (c) of
Section 1206, to be reimbursed for delivering medical services,
including preventive health care, and smoking prevention and
cessation health education, to program beneficiaries.
   (2) In order to be eligible to receive funds under this article a
clinic shall meet all of the following conditions, at a minimum:
   (A) Provide medical diagnosis and treatment.
   (B) Provide medical support services of patients in all stages of
illness.
   (C) Provide communication of information about diagnosis,
treatment, prevention, and prognosis.
   (D) Provide maintenance of patients with chronic illness.
   (E) Provide prevention of disability and disease through
detection, education, persuasion, and preventive treatment.
   (F) Meet one or both of the following conditions:
   (i) Be located in an area or a facility federally designated as a
health professional shortage area, medically underserved area, or
medically underserved population.
   (ii) Be a clinic that is able to demonstrate that at least 50
percent of the patients served are persons with incomes at or below
200 percent of the federal poverty level.
   (3) Notwithstanding the requirements of paragraph (2), all clinics
that received funds under this article in the 1997-98 fiscal year
shall continue to be eligible to receive funds under this article.
   (b) As a part of the award process for funding pursuant to this
article, the department shall take into account the availability of
primary care services in the various geographic areas of the state.
The department shall determine which areas within the state have
populations that have clear and compelling difficulty in obtaining
access to primary care. The department shall consider proposals from
new and existing eligible providers to extend clinic services to
these populations.
   (c) A primary care clinic applying for funds pursuant to this
article shall demonstrate that the funds shall be used to expand
medical services, including preventive health care, and smoking
prevention and cessation health education, for program beneficiaries
above the level of services provided in the 1988 calendar year, or in
the year prior to the first year a clinic receives funds under this
article if the clinic did not receive funds in the 1989 calendar
year.
   (d) (1) The department, in consultation with clinics funded under
this article, shall develop a formula for allocation of funds
available. It is the intent of the Legislature that the funds
allocated pursuant to this article promote stability for those
clinics participating in programs under this article as part of the
state's health care safety net and at the same time be distributed in
a manner that best promotes access to health care to uninsured
populations.
   (2) The formula shall be based on both of the following:
   (A) A hold harmless for clinics funded in the 1997-98 fiscal year
to continue to reimburse them for some portion of their uncompensated
care.
   (B) Demonstrated unmet need by both new and existing clinics, as
reflected in their levels of uncompensated care reported to the
department. For purposes of this article, "uncompensated care" means
clinic patient visits for persons with incomes at or below 200
percent of the federal poverty level for which there is no
encounter-based third-party reimbursement which includes, but is not
limited to, unpaid expanded access to primary care claims.
   (3) The department shall allocate available funds, for a
three-year period, as follows:
   (A) Clinics that received funding in the prior fiscal year shall
receive 90 percent of their prior fiscal year allocation, subject to
available funds, provided that the funding award is substantiated by
the clinics' reported levels of uncompensated care.
   (B) The remaining funds beyond 90 percent shall be awarded to new
and existing applicants based on the clinics' reported levels of
uncompensated care as verified by the department according to
subparagraph (A) of paragraph (4). The department shall seek input
from stakeholders to discuss adjustments to award levels that the
department deems reasonable, such as including base amounts for new
applicant clinics.
   (C) New applicants shall be awarded funds pursuant to this
subdivision if they meet the minimum requirements for funding under
this article based on the clinics' reported levels of uncompensated
care as verified by the department according to subparagraph (A) of
paragraph (4). New applicants include applicants for new site
expansions by existing applicants.
   (4) In assessing reported levels of uncompensated care, the
department shall utilize the data available from the Office of
Statewide Health Planning and Development's (OSHPD's) completed
analysis of the "Annual Report of Primary Care Clinics" for the prior
fiscal year, or if more recent data is available, then the most
recent data. If this data is unavailable for an existing applicant to
assess reported levels of uncompensated care, the existing applicant
shall receive an allocation pursuant to subparagraph (A) of
paragraph (3).
   (A) The department shall utilize the most recent data available
from OSHPD's completed analysis of the "Annual Report of Primary Care
Clinics" for the prior fiscal year, or if more recent data is
available, then the most recent data.
   (B) If the funds allocated to the program are less than the prior
year, the department shall allocate available funds to existing
program providers only.
   (5) The department shall establish a base funding level, subject
to available funds, of no less than thirty-five thousand dollars
($35,000) for frontier clinics and Native American reservation-based
clinics. For purposes of this article, "frontier clinics" means
clinics located in a medical services study area with a population of
fewer than 11 persons per square mile.
   (6) The department shall develop, in consultation with clinics
funded pursuant to this article, a formula for reallocation of unused
funds to other participating clinics to reimburse for uncompensated
care. The department shall allocate the unused funds remaining on
October 30, for the prior fiscal year to other participating clinics
to reimburse for uncompensated care.
   (e) In applying for funds, eligible clinics shall submit a single
application per clinic corporation. Applicants with multiple sites
shall apply for all eligible clinics, and shall report to the
department the allocation of funds among their corporate sites in the
prior year. A corporation may claim reimbursement only for services
provided at a program-eligible clinic site identified in the
corporate entity's application for funds, and approved for funding by
the department. A corporation may increase or decrease the number of
its program-eligible clinic sites on an annual basis, at the time of
the annual application update for the subsequent fiscal years of any
multiple-year application period.
   (f) Grant allocations pursuant to this article shall be based on
the formula developed by the department, notwithstanding a merger of
one of more licensed primary care clinics participating in the
program.
   (g) A clinic that is eligible for the program in every other
respect, but that provides dental services only, rather than the full
range of primary care medical services, shall only be eligible to
receive funds under this article on an exception basis. A dental-only
provider's application shall include a memorandum of understanding
(MOU) with a primary care clinic funded under this article. The MOU
shall include medical protocols for making referrals by the primary
care clinic to the dental clinic and from the dental clinic to the
primary care clinic, and ensure that case management services are
provided and that the patient is being provided comprehensive primary
care as described in subdivision (a).
   (h) (1) For purposes of this article, an outpatient visit shall
include diagnosis and medical treatment services, including the
associated pharmacy, X-ray, and laboratory services, and prevention
health and case management services that are needed as a result of
the outpatient visit. For a new patient, an outpatient visit shall
also include a health assessment encompassing an assessment of
smoking behavior and the patient's need for appropriate health
education specific to related tobacco use and exposure.
   (2) "Case management" includes, for this purpose, the management
of all physician services, both primary and specialty, and
arrangements for hospitalization, postdischarge care, and followup
care.
   (i) (1) Payment shall be on a per-visit basis at a rate that is
determined by the department to be appropriate for an outpatient
visit as defined in this section, and shall be not less than
seventy-one dollars and fifty cents ($71.50).
   (2) In developing a statewide uniform rate for an outpatient visit
as defined in this article, the department shall consider existing
rates of payments for comparable outpatient visits. The department
shall review the outpatient visit rate on an annual basis.
   (j) Not later than June 1 of each year, the department shall adopt
and provide each licensed primary care clinic with a schedule for
programs under this article, including the date for notification of
availability of funds, the deadline for the submission of a completed
application, and an anticipated contract award date for successful
applicants.
   (k) In administering the program created pursuant to this article,
the department shall utilize the Medi-Cal program statutes and
regulations pertaining to program participation standards, medical
and administrative recordkeeping, the ability of the department to
monitor and audit clinic records pertaining to program services
rendered to program beneficiaries and take recoupments or recovery
actions consistent with monitoring and audit findings, and the
provider's appeal rights. A primary care clinic applying for program
participation shall certify that it will abide by these statutes and
regulations and other program requirements set forth in this article.

  SEC. 160.  Section 124991 of the Health and Safety Code is amended
to read:
   124991.  (a) (1) The State Department of Public Health shall
provide any umbilical cord blood samples it receives pursuant to
Section 123371 to the Birth Defects Monitoring Program, established
pursuant to Chapter 1 (commencing with Section 103825) of Part 2 of
Division 102, for storage and research. In administering this section
the department shall ensure that the Birth Defects Monitoring
Program meets at least one of the following conditions:
   (A) The fees paid by researchers, investigators, and health care
services providers pursuant to subdivision (c) shall be used to cover
the cost of collecting and storing blood, including umbilical cord
blood.
   (B) The department receives confirmation that an investigator,
researcher, or health care provider has requested umbilical cord
blood samples for research or has requested cord blood samples to be
included within a request for pregnancy and newborn blood samples
through the program.
   (C) The department receives federal grant moneys to pay for
initial startup costs for the collection and storage of umbilical
cord blood samples.
   (2) The department may limit the number of units the program
collects each year.
   (b) (1) All information relating to umbilical cord blood samples
collected and utilized by the Birth Defects Monitoring Program shall
be confidential, and shall be used solely for the purposes of the
program. Access to confidential information shall be limited to
authorized persons who agree, in writing, to maintain the
confidentiality of that information.
   (2) The department shall maintain an accurate record of all
persons who are given confidential information pursuant to this
section, and disclosure of confidential information shall be made
only upon written agreement that the information will be kept
confidential, used for its approved purpose, and not be further
disclosed.
   (3) A person who, in violation of a written agreement to maintain
confidentiality, discloses information provided pursuant to this
section, or who uses information provided pursuant to this section in
a manner other than as approved pursuant to this section may be
denied further access to confidential information maintained by the
department, and shall be subject to a civil penalty not exceeding one
thousand dollars ($1,000). The penalty provided in this section does
not limit or otherwise restrict a remedy, provisional or otherwise,
provided by law for the benefit of the department or a person covered
by this section.
   (c) In order to implement this program, the department shall
establish fees of an amount that shall not exceed the costs of
administering the program, which the department shall collect from
researchers, investigators, and health care providers who have been
approved by the department and who seek to use the following types of
blood samples, collected by the Birth Defects Monitoring Program,
for research:
   (1) Umbilical cord blood.
   (2) Pregnancy blood.
   (3) Newborn blood.
   (d) Fees collected pursuant to subdivision (c) shall be deposited
into the Birth Defects Monitoring Program Fund created pursuant to
paragraph (7) of subdivision (b) of Section 124977. Moneys deposited
into the fund pursuant to this section may be used by the department,
upon appropriation by the Legislature, for the purposes specified in
subdivision (e).
   (e) Moneys in the fund shall be used for the costs related to data
management, including data linkage and entry, and umbilical cord
blood storage, retrieval, processing, inventory, and shipping.
   (f) The department shall adopt rules and regulations pursuant to
existing requirements in the Birth Defects Monitoring Program.
   (g) The department, health care providers, and local health
departments shall maintain the confidentiality of patient information
in accordance with existing law and in the same manner as other
medical record information with patient identification that they
possess, and shall use the information only for the following
purposes:
   (1) Research to identify risk factors for children's and women's
diseases.
   (2) Research to develop and evaluate screening tests.
   (3) Research to develop and evaluate prevention strategies.
   (4) Research to develop and evaluate treatments.
   (h) (1) For purposes of ensuring the security of a donor's
personal information, before any umbilical cord blood samples are
released pursuant to this section for research purposes, the State
Committee for the Protection of Human Subjects (CPHS) shall determine
if all of the following criteria have been met:
   (A) The Birth Defects Monitoring Program contractors or other
entities approved by the department have provided a plan sufficient
to protect personal information from improper use and disclosures,
including sufficient administrative, physical, and technical
safeguards to protect personal information from reasonable
anticipated threats to the security or confidentiality of the
information.
   (B) The Birth Defects Monitoring Program contractors or other
entities approved by the department have provided a sufficient plan
to destroy or return all personal information as soon as it is no
longer needed for the research activity, unless the program
contractors or other entities approved by the department have
demonstrated an ongoing need for the personal information for the
research activity and have provided a long-term plan sufficient to
protect the confidentiality of that information.
   (C) The Birth Defects Monitoring Program contractors or other
entities approved by the department have provided sufficient written
assurances that the personal information will not be reused or
disclosed to a person or entity, or used in a manner not approved in
the research protocol, except as required by law or for authorized
oversight of the research activity.
   (2) As part of its review and approval of the research activity
for the purpose of protecting personal information held in agency
databases, CPHS shall accomplish at least all of the following:
   (A) Determine whether the requested personal information is needed
to conduct the research.
   (B) Permit access to personal information only if it is needed for
the research activity.
   (C) Permit access only to the minimum personal information
necessary for the research activity.
   (D) Require the assignment of unique subject codes that are not
derived from personal information in lieu of social security numbers
if the research can be conducted without social security numbers.
   (E) If feasible, and if cost, time, and technical expertise
permit, require the agency to conduct a portion of the data
processing for the researcher to minimize the release of personal
information.
   (i) In addition to the fees described in subdivision (c), the
department may bill a researcher for the costs associated with the
department's process of protecting personal information, including,
but not limited to, the department's costs for conducting a portion
of the data processing for the researcher, removing personal
information, encrypting or otherwise securing personal information,
or assigning subject codes.
   (j) This section does not prohibit the department from using its
existing authority to enter into written agreements to enable other
institutional review boards to approve research activities, projects,
or classes of projects for the department, provided that the data
security requirements set forth in this section are satisfied.
  SEC. 161.  Section 127400 of the Health and Safety Code is amended
to read:
   127400.  As used in this article, the following terms have the
following meanings:
   (a) "Allowance for financially qualified patient" means, with
respect to services rendered to a financially qualified patient, an
allowance that is applied after the hospital's charges are imposed on
the patient, due to the patient's determined financial inability to
pay the charges.
   (b) "Federal poverty level" means the poverty guidelines updated
periodically in the Federal Register by the United States Department
of Health and Human Services under authority of subsection (2) of
Section 9902 of Title 42 of the United States Code.
   (c) "Financially qualified patient" means a patient who is both of
the following:
   (1) A patient who is a self-pay patient, as defined in subdivision
(f) or a patient with high medical costs, as defined in subdivision
(g).
   (2) A patient who has a family income that does not exceed 350
percent of the federal poverty level.
   (d) "Hospital" means a facility that is required to be licensed
under subdivision (a), (b), or (f) of Section 1250, except a facility
operated by the State Department of Mental Health or the Department
of Corrections and Rehabilitation.
   (e) "Office" means the Office of Statewide Health Planning and
Development.
   (f) "Self-pay patient" means a patient who does not have
third-party coverage from a health insurer, health care service plan,
Medicare, or Medicaid, and whose injury is not a compensable injury
for purposes of workers' compensation, automobile insurance, or other
insurance as determined and documented by the hospital. Self-pay
patients may include charity care patients.
   (g) "A patient with high medical costs" means a person whose
family income does not exceed 350 percent of the federal poverty
level, as defined in subdivision (b), if that individual does not
receive a discounted rate from the hospital as a result of his or her
third-party coverage. For these purposes, "high medical costs" means
any of the following:
   (1) Annual out-of-pocket costs incurred by the individual at the
hospital that exceed 10 percent of the patient's family income in the
prior 12 months.
              (2) Annual out-of-pocket expenses that exceed 10
percent of the patient's family income, if the patient provides
documentation of the patient's medical expenses paid by the patient
or the patient's family in the prior 12 months.
   (3) A lower level determined by the hospital in accordance with
the hospital's charity care policy.
   (h) "Patient's family" means the following:
   (1) For persons 18 years of age and older, spouse, domestic
partner, as defined in Section 297 of the Family Code, and dependent
children under 21 years of age, whether living at home or not.
   (2) For persons under 18 years of age, parent, caretaker
relatives, and other children under 21 years of age of the parent or
caretaker relative.
  SEC. 162.  Section 127405 of the Health and Safety Code is amended
to read:
   127405.  (a) (1) Each hospital shall maintain an understandable
written policy regarding discount payments for financially qualified
patients as well as an understandable written charity care policy.
Uninsured patients or patients with high medical costs who are at or
below 350 percent of the federal poverty level, as defined in
subdivision (b) of Section 127400, shall be eligible to apply for
participation under a hospital's charity care policy or discount
payment policy. Notwithstanding any other provision of this article,
a hospital may choose to grant eligibility for its discount payment
policy or charity care policies to patients with incomes over 350
percent of the federal poverty level. Both the charity care policy
and the discount payment policy shall state the process used by the
hospital to determine whether a patient is eligible for charity care
or discounted payment. In the event of a dispute, a patient may seek
review from the business manager, chief financial officer, or other
appropriate manager as designated in the charity care policy and the
discount payment policy.
   (2) Rural hospitals, as defined in Section 124840, may establish
eligibility levels for financial assistance and charity care at less
than 350 percent of the federal poverty level as appropriate to
maintain their financial and operational integrity.
   (b) A hospital's discount payment policy shall clearly state
eligibility criteria based upon income consistent with the
application of the federal poverty level. The discount payment policy
shall also include an extended payment plan to allow payment of the
discounted price over time. The policy shall provide that the
hospital and the patient may negotiate the terms of the payment plan.

   (c) The charity care policy shall state clearly the eligibility
criteria for charity care. In determining eligibility under its
charity care policy, a hospital may consider income and monetary
assets of the patient. For purposes of this determination, monetary
assets shall not include retirement or deferred compensation plans
qualified under the Internal Revenue Code, or nonqualified deferred
compensation plans. Furthermore, the first ten thousand dollars
($10,000) of a patient's monetary assets shall not be counted in
determining eligibility, nor shall 50 percent of a patient's monetary
assets over the first ten thousand dollars ($10,000) be counted in
determining eligibility.
   (d) A hospital shall limit expected payment for services it
provides to a patient at or below 350 percent of the federal poverty
level, as defined in subdivision (b) of Section 124700, eligible
under its discount payment policy to the amount of payment the
hospital would expect, in good faith, to receive for providing
services from Medicare, Medi-Cal, Healthy Families, or another
government-sponsored health program of health benefits in which the
hospital participates, whichever is greater. If the hospital provides
a service for which there is no established payment by Medicare or
any other government-sponsored program of health benefits in which
the hospital participates, the hospital shall establish an
appropriate discounted payment.
   (e) A patient, or patient's legal representative, who requests a
discounted payment, charity care, or other assistance in meeting his
or her financial obligation to the hospital shall make every
reasonable effort to provide the hospital with documentation of
income and health benefits coverage. If the person requests charity
care or a discounted payment and fails to provide information that is
reasonable and necessary for the hospital to make a determination,
the hospital may consider that failure in making its determination.
   (1) For purposes of determining eligibility for discounted
payment, documentation of income shall be limited to recent pay stubs
or income tax returns.
   (2) For purposes of determining eligibility for charity care,
documentation of assets may include information on all monetary
assets, but shall not include statements on retirement or deferred
compensation plans qualified under the Internal Revenue Code, or
nonqualified deferred compensation plans. A hospital may require
waivers or releases from the patient or the patient's family,
authorizing the hospital to obtain account information from financial
or commercial institutions, or other entities that hold or maintain
the monetary assets, to verify their value.
   (3) Information obtained pursuant to paragraph (1) or (2) shall
not be used for collections activities. This paragraph does not
prohibit the use of information obtained by the hospital, collection
agency, or assignee independently of the eligibility process for
charity care or discounted payment.
   (4) Eligibility for discounted payments or charity care may be
determined at any time the hospital is in receipt of information
specified in paragraph (1) or (2), respectively.
  SEC. 163.  Section 128735 of the Health and Safety Code is amended
to read:
   128735.  An organization that operates, conducts, owns, or
maintains a health facility, and the officers thereof, shall make and
file with the office, at the times as the office shall require, all
of the following reports on forms specified by the office that shall
be in accord, if applicable, with the systems of accounting and
uniform reporting required by this part, except that the reports
required pursuant to subdivision (g) shall be limited to hospitals:
   (a) A balance sheet detailing the assets, liabilities, and net
worth of the health facility at the end of its fiscal year.
   (b) A statement of income, expenses, and operating surplus or
deficit for the annual fiscal period, and a statement of ancillary
utilization and patient census.
   (c) A statement detailing patient revenue by payer, including, but
not limited to, Medicare, Medi-Cal, and other payers, and revenue
center, except that hospitals authorized to report as a group
pursuant to subdivision (d) of Section 128760 are not required to
report revenue by revenue center.
   (d) A statement of cashflows, including, but not limited to,
ongoing and new capital expenditures and depreciation.
   (e) A statement reporting the information required in subdivisions
(a), (b), (c), and (d) for each separately licensed health facility
operated, conducted, or maintained by the reporting organization,
except those hospitals authorized to report as a group pursuant to
subdivision (d) of Section 128760.
   (f) Data reporting requirements established by the office shall be
consistent with national standards, as applicable.
   (g) A Hospital Discharge Abstract Data Record that includes all of
the following:
   (1) Date of birth.
   (2) Sex.
   (3) Race.
   (4) ZIP Code.
   (5) Principal language spoken.
   (6) Patient social security number, if it is contained in the
patient's medical record.
   (7) Prehospital care and resuscitation, if any, including all of
the following:
   (A) "Do not resuscitate" (DNR) order at admission.
   (B) "Do not resuscitate" (DNR) order after admission.
   (8) Admission date.
   (9) Source of admission.
   (10) Type of admission.
   (11) Discharge date.
   (12) Principal diagnosis and whether the condition was present at
admission.
   (13) Other diagnoses and whether the conditions were present at
admission.
   (14) External cause of injury.
   (15) Principal procedure and date.
   (16) Other procedures and dates.
   (17) Total charges.
   (18) Disposition of patient.
   (19) Expected source of payment.
   (20) Elements added pursuant to Section 128738.
   (h) It is the intent of the Legislature that the patient's rights
of confidentiality shall not be violated in any manner. Patient
social security numbers and other data elements that the office
believes could be used to determine the identity of an individual
patient shall be exempt from the disclosure requirements of the
California Public Records Act (Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code).
   (i) A person reporting data pursuant to this section shall not be
liable for damages in an action based on the use or misuse of
patient-identifiable data that has been mailed or otherwise
transmitted to the office pursuant to the requirements of subdivision
(g).
   (j) A hospital shall use coding from the International
Classification of Diseases in reporting diagnoses and procedures.
  SEC. 164.  Section 131540 of the Health and Safety Code is amended
to read:
   131540.  (a) (1) The cost of the health care coverage provided
through the program shall be paid through a combination of
contributions paid by the small business, premiums paid by
participating employees, and county, federal, state, or private
sector funding made available for this purpose.
   (2) The local initiative may determine the amount of the employer
contribution for each participating eligible employee, which shall
not exceed one hundred fifty dollars ($150) per month, and the amount
of the employee premium, which shall not exceed seventy-five dollars
($75) per month. The local initiative may adjust employer
contribution and employee premium levels after the first year if
necessary for changes in health care costs.
   (3) The local initiative may structure the required employee
premium amounts according to a schedule that takes into account the
individual employee's age or income level, or both, in a manner
similar, but not necessarily identical, to that described in Section
12693.43 of the Insurance Code, pertaining to the Healthy Families
Program.
   (4) The local initiative shall establish copayment levels and
amounts in a manner substantially similar to that described in
Section 12693.615 of the Insurance Code, pertaining to the Healthy
Families Program.
   (5) For purposes of the program, "applicable rate charged for a
covered employee" in Section 1366.26 means the total premium amount
paid to the health plan on behalf of an employee, including amounts
paid by the small business on behalf of the employee, the premium
paid by the employee, and any county, federal, state, or private
sector funding, which funding shall include the value of the
discounted rates negotiated pursuant to subdivision (b), as
apportioned to the employee. The program shall submit to the
Department of Managed Health Care the procedures the local initiative
will use for purposes of establishing the rates to be paid by a
person eligible for continuation coverage under Section 1366.26, and
the department shall only approve those procedures if it determines
that they are consistent with the requirements of the Cal-COBRA
program.
   (b) In order to enhance the affordability of coverage offered
through the program to eligible small businesses and employees, the
county and the local initiative shall negotiate discounted rates for
services provided to participants in the program by providers
operated by the county or by providers with whom, or with which, the
county has contracted to provide health care services.
  SEC. 165.  Section 739.3 of the Insurance Code is amended to read:
   739.3.  (a) "Company Action Level Event" means any of the
following events:
   (1) The filing of an RBC Report by an insurer that indicates any
of the following:
   (A) The insurer's Total Adjusted Capital is greater than or equal
to its Regulatory Action Level RBC but less than its Company Action
Level RBC.
   (B) If a life or health insurer, the insurer has Total Adjusted
Capital that is greater than or equal to its Company Action Level RBC
but less than the product of its Authorized Control Level RBC and
2.5, and has a negative trend.
   (C) If a property and casualty insurer, the insurer has Total
Adjusted Capital that is greater than or equal to its Company Action
Level RBC but less than the product of its Authorized Control Level
RBC and 3.0, and triggers the trend test determined in accordance
with the trend test calculation included in the Property and Casualty
RBC instructions.
   (2) The notification by the commissioner to the insurer of an
Adjusted RBC Report that indicates the event in subparagraph (A) or
(B) of paragraph (1), provided that the insurer does not challenge
the Adjusted RBC Report under Section 739.7.
   (3) If the insurer challenges an Adjusted RBC Report that
indicates the event in subparagraph (A) or (B) of paragraph (1) under
Section 739.7, the notification by the commissioner to the insurer
that the commissioner has, after a hearing, rejected the insurer's
challenge.
   (b) In the event of a Company Action Level Event, the insurer
shall prepare and submit to the commissioner a comprehensive
financial plan, which shall do all of the following:
   (1) Identify the conditions in the insurer that contribute to the
Company Action Level Event.
   (2) Contain proposals of corrective actions that the insurer
intends to take and would be expected to result in the elimination of
the Company Action Level Event.
   (3) Provide projections of the insurer's financial results in the
current year and at least the four succeeding years, both in the
absence of proposed corrective actions and giving effect to the
proposed corrective actions, including projections of statutory
operating income, net income, capital, or surplus, or a combination.
The projections for both new and renewal business may include
separate projections for each major line of business and separately
identify each significant income, expense, and benefit component.
   (4) Identify the key assumptions impacting the insurer's
projections and the sensitivity of the projections to the
assumptions.
   (5) Identify the quality of, and problems associated with, the
insurer's business, including, but not limited to, its assets,
anticipated business growth and associated surplus strain,
extraordinary exposure to risk, mix of business, and use of
reinsurance in each case, if any.
   (c) The RBC Plan shall be submitted as follows:
   (1) Within 45 days of the Company Action Level Event.
   (2) If the insurer challenges an Adjusted RBC Report pursuant to
Section 739.7, within 45 days after notification to the insurer that
the commissioner has, after a hearing, rejected the insurer's
challenge.
   (d) Within 60 days after the submission by an insurer of an RBC
Plan to the commissioner, the commissioner shall notify the insurer
whether the RBC Plan shall be implemented or is, in the judgment of
the commissioner, unsatisfactory. If the commissioner determines that
the RBC Plan is unsatisfactory, the notification to the insurer
shall set forth the reasons for the determination, and may set forth
proposed revisions that will render the RBC Plan satisfactory, in the
judgment of the commissioner. Upon notification from the
commissioner, the insurer shall prepare a Revised RBC Plan, which may
incorporate by reference revisions proposed by the commissioner, and
shall submit the Revised RBC Plan to the commissioner as follows:
   (1) Within 45 days after the notification from the commissioner.
   (2) If the insurer challenges the notification from the
commissioner under Section 739.7, within 45 days after a notification
to the insurer that the commissioner has, after a hearing, rejected
the insurer's challenge.
   (e) In the event of a notification by the commissioner to an
insurer that the insurer's RBC Plan or Revised RBC Plan is
unsatisfactory, the commissioner may, at his or her discretion,
subject to the insurer's right to a hearing under Section 739.7,
specify in the notification that the notification constitutes a
Regulatory Action Level Event.
   (f) Every domestic insurer that files an RBC Plan or Revised RBC
Plan with the commissioner shall file a copy of the RBC Plan or
Revised RBC Plan with the insurance commissioner in any state in
which the insurer is authorized to do business if both of the
following apply:
   (1) That state has an RBC provision substantially similar to
subdivision (a) of Section 739.8.
   (2) The insurance commissioner of that state has notified the
insurer of its request for the filing in writing, in which case the
insurer shall file a copy of the RBC Plan or Revised RBC Plan in that
state no later than the later of:
   (A) Fifteen days after the receipt of notice to file a copy of its
RBC Plan or Revised RBC Plan with the state.
   (B) The date on which the RBC Plan or Revised RBC Plan is filed
under subdivision (c) of Section 739.7.
  SEC. 166.  Section 1063.1 of the Insurance Code is amended to read:

   1063.1.  As used in this article:
   (a) "Member insurer" means an insurer required to be a member of
the association in accordance with subdivision (a) of Section 1063,
except and to the extent that the insurer is participating in an
insolvency program adopted by the United States government.
   (b) "Insolvent insurer" means an insurer that was a member insurer
of the association, consistent with paragraph (11) of subdivision
(c), either at the time the policy was issued or when the insured
event occurred, and against which an order of liquidation or
receivership with a finding of insolvency has been entered by a court
of competent jurisdiction, or, in the case of the State Compensation
Insurance Fund, if a finding of insolvency is made by a duly enacted
legislative measure.
   (c) (1) "Covered claims" means the obligations of an insolvent
insurer, including the obligation for unearned premiums, that satisfy
all of the following requirements:
   (A) Imposed by law and within the coverage of an insurance policy
of the insolvent insurer.
   (B) Which were unpaid by the insolvent insurer.
   (C) Which are presented as a claim to the liquidator in this state
or to the association on or before the last date fixed for the
filing of claims in the domiciliary liquidating proceedings.
   (D) Which were incurred prior to the date coverage under the
policy terminated and prior to, on, or within 30 days after the date
the liquidator was appointed.
   (E) For which the assets of the insolvent insurer are insufficient
to discharge in full.
   (F) In the case of a policy of workers' compensation insurance, to
provide workers' compensation benefits under the workers'
compensation law of this state.
   (G) In the case of other classes of insurance if the claimant or
insured is a resident of this state at the time of the insured
occurrence, or the property from which the claim arises is
permanently located in this state.
   (2) "Covered claims" also includes the obligations assumed by an
assuming insurer from a ceding insurer where the assuming insurer
subsequently becomes an insolvent insurer if, at the time of the
insolvency of the assuming insurer, the ceding insurer is no longer
admitted to transact business in this state. Both the assuming
insurer and the ceding insurer shall have been member insurers at the
time the assumption was made. "Covered claims" under this paragraph
shall be required to satisfy the requirements of subparagraphs (A) to
(G), inclusive, of paragraph (1), except for the requirement that
the claims be against policies of the insolvent insurer. The
association shall have a right to recover any deposit, bond, or other
assets that may have been required to be posted by the ceding
company to the extent of covered claim payments and shall be
subrogated to any rights the policyholders may have against the
ceding insurer.
   (3) "Covered claims" does not include obligations arising from the
following:
   (A) Life, annuity, health, or disability insurance.
   (B) Mortgage guaranty, financial guaranty, or other forms of
insurance offering protection against investment risks.
   (C) Fidelity or surety insurance including fidelity or surety
bonds, or any other bonding obligations.
   (D) Credit insurance.
   (E) Title insurance.
   (F) Ocean marine insurance or ocean marine coverage under any
insurance policy including claims arising from the following: the
Jones Act (46 U.S.C. Sec. 688), the Longshore and Harbor Workers'
Compensation Act (33 U.S.C. Sec. 901 et seq.), or another similar
federal statutory enactment, or an endorsement or policy affording
protection and indemnity coverage.
   (G) A claims servicing agreement or insurance policy providing
retroactive insurance of a known loss or losses, except a special
excess workers' compensation policy issued pursuant to subdivision
(c) of Section 3702.8 of the Labor Code that covers all or any part
of workers' compensation liabilities of an employer that is issued,
or was previously issued, a certificate of consent to self-insure
pursuant to subdivision (b) of Section 3700 of the Labor Code.
   (4) "Covered claims" does not include obligations of the insolvent
insurer arising out of reinsurance contracts, nor obligations
incurred after the expiration date of the insurance policy or after
the insurance policy has been replaced by the insured or canceled at
the insured's request, or after the insurance policy has been
canceled by the association as provided in this chapter, or after the
insurance policy has been canceled by the liquidator, nor
obligations to a state or to the federal government.
   (5) "Covered claims" does not include obligations to insurers,
insurance pools, or underwriting associations, nor their claims for
contribution, indemnity, or subrogation, equitable or otherwise,
except as otherwise provided in this chapter.
   An insurer, insurance pool, or underwriting association shall not
maintain, in its own name or in the name of its insured, a claim or
legal action against the insured of the insolvent insurer for
contribution, indemnity or by way of subrogation, except insofar as,
and to the extent only, that the claim exceeds the policy limits of
the insolvent insurer's policy. In those claims or legal actions, the
insured of the insolvent insurer is entitled to a credit or setoff
in the amount of the policy limits of the insolvent insurer's policy,
or in the amount of the limits remaining, where those limits have
been diminished by the payment of other claims.
   (6) "Covered claims," except in cases involving a claim for
workers' compensation benefits or for unearned premiums, does not
include a claim in an amount of one hundred dollars ($100) or less,
nor that portion of a claim that is in excess of any applicable
limits provided in the insurance policy issued by the insolvent
insurer.
   (7) "Covered claims" does not include that portion of a claim,
other than a claim for workers' compensation benefits, that is in
excess of five hundred thousand dollars ($500,000).
   (8) "Covered claims" does not include an amount awarded as
punitive or exemplary damages, nor an amount awarded by the Workers'
Compensation Appeals Board pursuant to Section 5814 or 5814.5 of the
Labor Code because payment of compensation was unreasonably delayed
or refused by the insolvent insurer.
   (9) "Covered claims" does not include (A) a claim to the extent it
is covered by any other insurance of a class covered by this article
available to the claimant or insured nor (B) a claim by a person
other than the original claimant under the insurance policy in his or
her own name, his or her assignee as the person entitled thereto
under a premium finance agreement as defined in Section 673 and
entered into prior to insolvency, his or her executor, administrator,
guardian, or other personal representative or trustee in bankruptcy
and does not include a claim asserted by an assignee or one claiming
by right of subrogation, except as otherwise provided in this
chapter.
   (10) "Covered claims" does not include obligations arising out of
the issuance of an insurance policy written by the separate division
of the State Compensation Insurance Fund pursuant to Sections 11802
and 11803.
   (11) "Covered claims" does not include obligations of the
insolvent insurer arising from any policy or contract of insurance
issued or renewed prior to the insolvent insurer's admission to
transact insurance in the state.
   (12) "Covered claims" does not include surplus deposits of
subscribers as defined in Section 1374.1.
   (13) "Covered claims" shall also include obligations arising under
an insurance policy written to indemnify a permissibly self-insured
employer pursuant to subdivision (b) or (c) of Section 3700 of the
Labor Code for its liability to pay workers' compensation benefits in
excess of a specific or aggregate retention, provided, however, that
for purposes of this article, those claims shall not be considered
workers' compensation claims and therefore are subject to the per
claim limit in paragraph (7) and any payments and expenses related
thereto shall be allocated to category (c) of Section 1063.5, which
is for claims other than workers' compensation, homeowners, and
automobile, as provided in that section.
   These provisions shall apply to obligations arising under any
policy as described herein issued to a permissibly self-insured
employer or group of self-insured employers pursuant to Section 3700
of the Labor Code and notwithstanding any other provision of the
Insurance Code, those obligations shall be governed by this provision
in the event that the Self-Insurers' Security Fund is ordered to
assume the liabilities of a permissibly self-insured employer or
group of self-insured employers pursuant to Section 3701.5 of the
Labor Code. The provisions of this paragraph apply only to insurance
policies written to indemnify a permissibly self-insured employer or
group of self-insured employers under subdivision (b) or (c) of
Section 3700, for its liability to pay workers' compensation benefits
in excess of a specific or aggregate retention, and this paragraph
does not apply to special excess workers' compensation insurance
policies unless issued pursuant to authority granted in subdivision
(c) of Section 3702.8 of the Labor Code, and as provided for in
subparagraph (G) of paragraph (3). In addition, this paragraph does
not apply to a claims servicing agreement or insurance policy
providing retroactive insurance of a known loss or losses as are
                                      excluded in subparagraph (G) of
paragraph (3).
   Each permissibly self-insured employer or group of self-insured
employers, or the Self-Insurers' Security Fund, shall, to the extent
required by the Labor Code, be responsible for paying, adjusting, and
defending each claim arising under policies of insurance covered
under this section, unless the benefits paid on a claim exceed the
specific or aggregate retention, in which case:
   (A) If the benefits paid on the claim exceed the specific or
aggregate retention, and the policy requires the insurer to defend
and adjust the claim, the California Insurance Guarantee Association
(CIGA) shall be solely responsible for adjusting and defending the
claim, and shall make all payments due under the claim, subject to
the limitations and exclusions of this article with regards to
covered claims. As to each claim subject to this paragraph,
notwithstanding any other provisions of this code or the Labor Code,
and regardless of whether the amount paid by CIGA is adequate to
discharge a claim obligation, neither the self-insured employer,
group of employers, nor the Self-Insurers' Security Fund shall have
any obligation to pay benefits over and above the specific or
aggregate retention, except as provided in subdivision (c).
   (B) If the benefits paid on the claim exceed the specific or
aggregate retention, and the policy does not require the insurer to
defend and adjust the claim, the permissibly self-insured employer or
group of self-insured employers, or the Self-Insurers' Security
Fund, shall not have further payment obligations with respect to the
claim, but shall continue defending and adjusting the claim, and
shall have the right, but not the obligation, in any proceeding to
assert all applicable statutory limitations and exclusions as
contained in this article with regard to the covered claim. CIGA
shall have the right, but not the obligation, to intervene in any
proceeding where the self-insured employer, group of self-insured
employers, or the Self-Insurers' Security Fund is defending any such
claim and shall be permitted to raise the appropriate statutory
limitations and exclusions as contained in this article with respect
to covered claims. Regardless of whether the self-insured employer or
group of employers, or the Self-Insurers' Security Fund, asserts the
applicable statutory limitations and exclusions, or whether CIGA
intervenes in any such proceeding, CIGA shall be solely responsible
for paying all benefits due on the claim, subject to the exclusions
and limitations of this article with respect to covered claims. As to
each claim subject to this paragraph, notwithstanding any other
provision of this code or the Labor Code and regardless of whether
the amount paid by CIGA is adequate to discharge a claim obligation,
neither the self-insured employer, group of employers, nor the
Self-Insurers' Security Fund shall have any obligation to pay
benefits over and above the specific or aggregate retention, except
as provided in this subdivision.
   (d) In the event that the benefits paid on the covered claim
exceed the per claim limit in paragraph (7) of subdivision (c), the
responsibility for paying, adjusting, and defending the claim shall
be returned to the permissibly self-insured employer or group of
employers, or the Self-Insurers' Security Fund.
   These provisions shall apply to all pending and future
insolvencies. For purposes of this paragraph, a pending insolvency is
one involving a company that is currently receiving benefits from
the guarantee association.
   (e) "Admitted to transact insurance in this state" means an
insurer possessing a valid certificate of authority issued by the
department.
   (f) "Affiliate" means a person who directly or indirectly, through
one or more intermediaries, controls, is controlled by, or is under
common control with an insolvent insurer on December 31 of the year
next preceding the date the insurer becomes an insolvent insurer.
   (g) "Control" means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies
of a person, whether through the ownership of voting securities, by
contract other than a commercial contract for goods or nonmanagement
services, or otherwise, unless the power is the result of an official
position with or corporate office held by the person. Control is
presumed to exist if a person, directly or indirectly, owns,
controls, holds with the power to vote, or holds proxies
representing, 10 percent or more of the voting securities of another
person. This presumption may be rebutted by showing that control does
not in fact exist.
   (h) "Claimant" means an insured making a first party claim or a
person instituting a liability claim, provided that no person who is
an affiliate of the insolvent insurer may be a claimant.
   (i) "Ocean marine insurance" includes marine insurance as defined
in Section 103, except for inland marine insurance, as well as any
other form of insurance, regardless of the name, label, or marketing
designation of the insurance policy, that insures against maritime
perils or risks and other related perils or risks, which are usually
insured against by traditional marine insurance, such as hull and
machinery, marine builders' risks, and marine protection and
indemnity. Those perils and risks insured against include, without
limitation, loss, damage, or expense or legal liability of the
insured arising out of or incident to ownership, operation,
chartering, maintenance, use, repair, or construction of a vessel,
craft, or instrumentality in use in ocean or inland waterways,
including liability of the insured for personal injury, illness, or
death for loss or damage to the property of the insured or another
person.
   (j) "Unearned premium" means that portion of a premium as
calculated by the liquidator that had not been earned because of the
cancellation of the insolvent insurer's policy and is that premium
remaining for the unexpired term of the insolvent insurer's policy.
"Unearned premium" does not include an amount sought as return of a
premium under a policy providing retroactive insurance of a known
loss or return of a premium under a retrospectively rated policy or a
policy subject to a contingent surcharge or a policy in which the
final determination of the premium cost is computed after expiration
of the policy and is calculated on the basis of actual loss
experience during the policy period.
  SEC. 167.  Section 1626 of the Insurance Code is amended to read:
   1626.  (a) A life licensee is a person authorized to act as a life
agent. Licenses to act as a life agent under this chapter shall be
of the following types:
   (1) Life-only, which license shall entitle the licensee to
transact insurance coverage on human lives, including benefits of
endowment and annuities, and may include benefits in the event of
death or dismemberment by accident and benefits for disability
income.
   (2) Accident and health, which license shall entitle the licensee
to transact insurance coverage for sickness, bodily injury, or
accidental death and may include benefits for disability income.
   (b) An accident and health agent licensee also is authorized to
transact 24-hour care coverage, as defined in Section 1749.02,
pursuant to subdivision (d) of Section 1749 or subdivision (d) of
Section 1749.33.
  SEC. 168.  Section 1764.1 of the Insurance Code is amended to read:

   1764.1.  (a) (1) Every nonadmitted insurer, in the case of
insurance to be purchased by a resident of this state pursuant to
Section 1760, and surplus line broker, in the case of any insurance
with a nonadmitted carrier to be transacted by the surplus line
broker, shall be responsible to ensure that, at the time of accepting
an application for an insurance policy, other than a renewal of that
policy, issued by a nonadmitted insurer, the signature of the
applicant on the disclosure statement set forth in subdivision (b) is
obtained. In fulfillment of this responsibility, the nonadmitted
insurer and the surplus line broker may rely, if it is reasonable
under all the circumstances to do so, on the disclosure statement
received from a licensee involved in the transaction as prima facie
evidence that the disclosure statement and appropriate signature from
the applicant have been obtained. The surplus line broker shall
maintain a copy of the signed disclosure statement in his or her
records for a period of at least five years. These records shall be
made available to the commissioner and the insured upon request. This
disclosure shall be signed by the applicant, and is not subject to
any limited power of attorney agreement between the applicant and an
agent or broker, or a surplus line broker. The disclosure statement
shall be in boldface 16-point type on a freestanding document. In
addition, every policy issued by a nonadmitted insurer and every
certificate evidencing the placement of insurance shall contain, or
have affixed to it by the insurer or surplus line broker, the
disclosure statement set forth in subdivision (b) in boldface
16-point type on the front page of the policy.
   (2) In a case in which the applicant has not received and
completed the signed disclosure form required by this section, he or
she may cancel the insurance so placed. The cancellation shall be on
a pro rata basis as to premium, and the applicant shall be entitled
to the return of any broker's fees charged for the placement.
   (b) The following notice shall be provided to policyholders and
applicants for insurance as provided by subdivision (a), and shall be
printed in English and in the language principally used by the
surplus line broker and nonadmitted insurer to advertise, solicit, or
negotiate the sale and purchase of surplus line insurance. The
surplus line broker and nonadmitted insurer shall use the appropriate
bracketed language for application and issued policy disclosures:
      "NOTICE:

   1. THE INSURANCE POLICY THAT YOU (HAVE PURCHASED) (ARE APPLYING TO
PURCHASE) IS BEING ISSUED BY AN INSURER THAT IS NOT LICENSED BY THE
STATE OF CALIFORNIA. THESE COMPANIES ARE CALLED "NONADMITTED" OR
"SURPLUS LINE" INSURERS.
   2. THE INSURER IS NOT SUBJECT TO THE FINANCIAL SOLVENCY REGULATION
AND ENFORCEMENT THAT APPLY TO CALIFORNIA LICENSED INSURERS.
   3. THE INSURER DOES NOT PARTICIPATE IN ANY OF THE INSURANCE
GUARANTEE FUNDS CREATED BY CALIFORNIA LAW. THEREFORE, THESE FUNDS
WILL NOT PAY YOUR CLAIMS OR PROTECT YOUR ASSETS IF THE INSURER
BECOMES INSOLVENT AND IS UNABLE TO MAKE PAYMENTS AS PROMISED.
   4. CALIFORNIA MAINTAINS A LIST OF ELIGIBLE SURPLUS LINE INSURERS
APPROVED BY THE INSURANCE COMMISSIONER. ASK YOUR AGENT OR BROKER IF
THE INSURER IS ON THAT LIST, OR VIEW THAT LIST AT THE INTERNET WEB
SITE OF THE CALIFORNIA DEPARTMENT OF INSURANCE: www.insurance.ca.gov.

   5. FOR ADDITIONAL INFORMATION ABOUT THE INSURER, YOU SHOULD ASK
QUESTIONS OF YOUR INSURANCE AGENT, BROKER, OR "SURPLUS LINE" BROKER
OR CONTACT THE CALIFORNIA DEPARTMENT OF INSURANCE, AT THE FOLLOWING
TOLL-FREE TELEPHONE NUMBER: ____.
   6.  IF YOU, AS THE APPLICANT, REQUIRED THAT THE INSURANCE POLICY
YOU HAVE PURCHASED BE BOUND IMMEDIATELY, EITHER BECAUSE EXISTING
COVERAGE WAS GOING TO LAPSE WITHIN TWO BUSINESS DAYS OR BECAUSE YOU
WERE REQUIRED TO HAVE COVERAGE WITHIN TWO BUSINESS DAYS, AND YOU DID
NOT RECEIVE THIS DISCLOSURE FORM AND A REQUEST FOR YOUR SIGNATURE
UNTIL AFTER COVERAGE BECAME EFFECTIVE, YOU HAVE THE RIGHT TO CANCEL
THIS POLICY WITHIN FIVE DAYS OF RECEIVING THIS DISCLOSURE. IF YOU
CANCEL COVERAGE, THE PREMIUM WILL BE PRORATED AND ANY BROKER'S FEE
CHARGED FOR THIS INSURANCE WILL BE RETURNED TO YOU."


   (c) When a contract is issued to an industrial insured neither the
nonadmitted insurer nor the surplus line broker is required to
provide the notice required in this section except on the
confirmation of insurance, the certificate of placement, or the
policy, whichever is first provided to the insured, nor is the
insurer or surplus line broker required to obtain the insured's
signature. The producer shall ensure that the notice affixed to the
confirmation of insurance, certificate of placement, or the policy is
provided to the insured. The producer shall insert the current
toll-free telephone number of the Department of Insurance as provided
in paragraph 5 of the notice.
   (1) An industrial insured is an insured:
   (A) Which employs at least 25 employees on average during the
prior 12 months; and
   (B) Which has aggregate annual premiums for insurance for all
risks other than workers' compensation and health coverage totaling
no less than twenty-five thousand dollars ($25,000); or
   (C) Which obtains insurance through the services of a full-time
employee acting as an insurance manager or a continuously retained
insurance consultant. A "continuously retained insurance consultant"
does not include: (i) an agent or broker through whom the insurance
is being placed, (ii) a subagent or subproducer involved in the
transaction, or (iii) an agent or broker that is a business
organization employing or contracting with a person mentioned in
clauses (i) and (ii).
   (2) The surplus line broker shall be responsible to ensure that
the applicant is an industrial insured. A surplus line broker who
reasonably relies on information provided in good faith by the
applicant, whether directly or through the producer, shall be deemed
to be in compliance with this requirement.
   (d) For purposes of compliance with the requirement of subdivision
(a) that the signature of the applicant be obtained, the following
shall apply:
   (1) If the insurance transaction is not conducted at an in-person,
face-to-face meeting, the applicant's signature on the disclosure
form may be transmitted by the applicant to the agent or broker via
facsimile or comparable electronic transmittal.
   (2) In the case of commercial lines coverage, or personal
insurance coverage subject to Section 675 and any umbrella coverage
associated therewith, where an applicant requires that insurance
coverage be bound immediately, either because existing coverage will
lapse within two business days of the time the insurance is bound or
because the applicant is required to have coverage in place within
two business days, and the applicant cannot meet in person with the
agent or broker to sign the disclosure form, the agent or broker may
obtain the signature of the applicant within five days of binding
coverage, provided that the applicant may cancel the insurance so
placed within five days of receiving the disclosure form from the
agent or broker. The cancellation shall be on a pro rata basis, and
the applicant shall be entitled to the rescission or return of any
broker's fees charged for the placement. When a policy is canceled,
the broker shall inform the applicant that the broker's fee must be
returned and that the premium must be prorated.
   (e) Notwithstanding subdivision (a), this section shall not apply
to insurance issued or delivered in this state by a nonadmitted
Mexican insurer by and through a surplus line broker affording
coverage exclusively in the Republic of Mexico on property located
temporarily or permanently in, or operations conducted temporarily or
permanently within, the Republic of Mexico.
  SEC. 169.  Section 1765 of the Insurance Code is amended to read:
   1765.  (a) A license under this chapter shall be applied for and
renewed by the filing with the commissioner of a written application
therefor, in accordance with Section 1652.
   (b) Subject to subdivision (f), the commissioner shall issue a
license authorizing an applicant who is trustworthy and competent to
transact an insurance brokerage business in a manner to safeguard the
interest of the insured, to act as a surplus line broker from the
date of the license until the expiration date specified in Section
1630. In order to transact surplus line brokerage business, an
individual shall be licensed as a surplus line broker.
   (c) An applicant for a surplus line broker's license, as part of
the application and a condition of the issuance of the license, shall
file a bond to the people of the State of California in the sum of
fifty thousand dollars ($50,000), conditioned that the licensee will
fully and faithfully comply with the requirements of this chapter,
and all applicable provisions of this code. The bond shall be subject
to Sections 1662 and 1663. A surplus line broker bond is not
required for an individual licensed as a surplus line broker who
transacts only on behalf of a licensed surplus line broker
organization.
   (d) The filing fee for a license to act as a surplus line broker
shall be seven hundred dollars ($700) every two years, or for any
initial fractional license year. An applicant for a business entity
license, as provided in subdivision (a) of Section 1765.2, shall
provide the names of all persons who may exercise the power and
perform the duties under the license. Whenever an organization
licensed as a surplus line broker desires to change, remove, or add
to the natural person or persons who are to transact insurance under
authority of its license, it shall immediately file an application or
notice with the commissioner for an endorsement changing its license
accordingly, on a form prescribed by the commissioner. The fee for
adding or removing from a surplus line broker's license issued to an
organization the name of a natural person, named thereon, shall be
twenty-four dollars ($24). The commissioner shall require that the
qualifying examination provided by subdivision (a) of Section 1676 be
taken by a natural person named by the organization to exercise its
agency or brokerage powers who would be required to take and pass the
qualifying examination. That natural person or persons and the
organization are in all other respects subject to the provisions of
this chapter and the insurance laws.
   (e) The license shall be renewed in accordance with, and subject
to, Sections 1717, 1718, 1719, and 1720.
   (f) The commissioner may deny, suspend, or revoke a license
applied for or granted pursuant to this chapter on all or any one of
the grounds and in accordance with the procedures provided in Article
6 (commencing with Section 1666) and Article 13 (commencing with
Section 1737) of Chapter 5, if the commissioner finds that the
applicant or licensee has committed a violation of a provision of
this code.
  SEC. 170.  Section 1872.8 of the Insurance Code is amended to read:

   1872.8.  (a) An insurer doing business in this state shall pay an
annual special purpose assessment to be determined by the
commissioner, but not to exceed one dollar ($1) annually, for each
vehicle insured under an insurance policy it issues in this state, in
order to fund increased investigation and prosecution of fraudulent
automobile insurance claims and economic automobile theft.
Thirty-four percent of those funds received from ninety-five cents
($0.95) of the special purpose assessment per insured vehicle shall
be distributed to the Fraud Division for enhanced investigative
efforts, 15 percent of that ninety-five cents ($0.95) shall be
deposited in the Motor Vehicle Account for appropriation to the
Department of the California Highway Patrol for enhanced prevention
and investigative efforts to deter economic automobile theft, and 51
percent of that ninety-five cents ($0.95) shall be distributed to
district attorneys for purposes of investigation and prosecution of
automobile insurance fraud cases, including fraud involving economic
automobile theft.
   (b) (1) The commissioner shall award funds to district attorneys
according to population. The commissioner may alter this distribution
formula as necessary to achieve the most effective distribution of
funds. A local district attorney desiring a portion of those funds
shall submit to the commissioner an application detailing the
proposed use of any moneys that may be provided. The application
shall include a detailed accounting of assessment funds received and
expended in prior years, including, at a minimum, all of the
following:
   (A) The amount of funds received and expended.
   (B) The uses to which those funds were put, including payment of
salaries and expenses, purchase of equipment and supplies, and other
expenditures by type.
   (C) The results achieved as a consequence of expenditures made,
including the number of investigations, arrests, complaints filed,
convictions, and the amounts originally claimed in cases prosecuted
compared to payments actually made in those cases.
   (D) Other relevant information as the commissioner may reasonably
require.
   A district attorney who fails to submit an application by the
deadline set by the commissioner shall be subject to loss of
distribution of the moneys. The commissioner may consider
recommendations and advice of the Fraud Division and the Commissioner
of the California Highway Patrol in allocating moneys to local
district attorneys. A district attorney that receives funds shall
submit an annual report to the commissioner, which may be made
public, as to the success of the program administered. The report
shall provide information and statistics on the number of active
investigations, arrests, indictments, and convictions. Both the
application for moneys and the distribution of moneys shall be public
documents. The commissioner shall conduct a fiscal audit of the
programs administered under this subdivision at least once every
three years. The costs of a fiscal audit shall be shared equally
between the department and the district attorney. Information
submitted to the commissioner pursuant to this section concerning
criminal investigations, whether active or inactive, shall be
confidential. If the commissioner determines that a district attorney
is unable or unwilling to investigate and prosecute automobile
insurance fraud claims as provided by this subdivision or Section
1874.8, the commissioner may discontinue the distribution of funds
allocated for that county and may redistribute those funds to other
eligible district attorneys.
   (2) The Department of the California Highway Patrol shall submit
to the commissioner, for informational purposes only, a report
detailing the department's proposed use of funds under this section
and an annual report in the same format as required of district
attorneys under paragraph (1).
   (c) The remaining five cents ($0.05) shall be spent for enhanced
automobile insurance fraud investigation by the Fraud Division.
   (d) Except for funds to be deposited in the Motor Vehicle Account
for allocation to the Department of the California Highway Patrol for
purposes of the Motor Vehicle Theft Prevention Act (Chapter 5
(commencing with Section 10900) of Division 4 of the Vehicle Code),
the funds received under this section shall be deposited in the
Insurance Fund and be expended and distributed when appropriated by
the Legislature.
   (e) In the course of its investigations, the Fraud Division shall
pursue aggressively all reported incidents of probable fraud and, in
addition, shall forward to the appropriate disciplinary body the
names of individuals licensed under the Business and Professions Code
who are suspected of actively engaging in fraudulent activity along
with all relevant supporting evidence.
   (f) As used in this section, "economic automobile theft" means
automobile theft perpetrated for financial gain, including, but not
limited to, the following:
   (1) Theft of a motor vehicle for financial gain.
   (2) Reporting that a motor vehicle has been stolen for the purpose
of filing a false insurance claim.
   (3) Engaging in any act prohibited by Chapter 3.5 (commencing with
Section 10801) of Division 4 of the Vehicle Code.
   (4) Switching of vehicle identification numbers to obtain title to
a stolen motor vehicle.
  SEC. 171.  Section 1872.81 of the Insurance Code is amended to
read:
   1872.81.  In addition to the special purpose assessment imposed
pursuant to Section 1872.8, an insurer doing business in this state
shall pay to the commissioner an annual special purpose assessment of
thirty cents ($0.30) for each vehicle insured under an insurance
policy it issues in this state, for expenditure as follows:
   (a) An amount equivalent to twenty cents ($0.20) of the special
purpose assessment imposed per insured vehicle by this section shall
be used for the purpose of paying for consumer service functions of
the department that are related to automobile insurance. The revenues
under this subdivision shall be used to improve service to consumers
through the rating and underwriting services bureau, the claims
services bureau, the investigations bureau, or any successor bureaus
of the department that may assume the consumer service functions of
these bureaus, and legal services in support of these bureaus. The
department shall develop a plan for the use of the revenues available
under this subdivision for the purposes authorized, and shall submit
the plan to the Assembly and Senate Committees on Insurance.
   (b) An amount equivalent to ten cents ($0.10) of the special
purpose assessment imposed per insured vehicle by this section shall
be used for the purpose of improving consumer functions of the
department related to automobile insurance. Revenues available under
this subdivision shall be used to improve consumer functions through
one or more of the following:
   (1) The rating and underwriting services bureau.
   (2) The claims services bureau.
   (3) The investigations bureau.
   (4) Any successor bureau of the department that may assume
automobile insurance consumer functions of these bureaus, and legal
services in support of these bureaus. These revenues also may be used
for improving the ability of the department to respond to consumer
complaints and information requests through the department's
toll-free telephone number, and for improving the ability of the
department to offer information about automobile insurance rates to
the public. The department shall develop a plan for the use of the
revenues available under this subdivision for the purpose authorized,
and shall submit the plan to the Assembly and Senate Committees on
Insurance.
   (c) Notwithstanding subdivision (b), the Department of Insurance,
after January 1, 2006, and the Department of Motor Vehicles, after
that date, may propose to the budget committees of the Legislature a
proposed use of up to five cents ($0.05) of the ten-cent ($0.10)
special purpose assessment levied pursuant to subdivision (b) related
to informing consumers about the existence of any low-cost
automobile insurance program authorized in law pursuant to Section
11629.7 or other statutes that also establish a program of the type
identified in Section 11629.7. Funds for this purpose shall not be
expended without prior budget
   approval. The total amount of funds authorized to both departments
in total, or to one department in total, for this purpose shall not
exceed five cents ($0.05). The departments shall explain, with as
much specificity as is reasonably possible, the objectives for the
use of the funds and quantitative criteria by which the Legislature
may evaluate the effectiveness of the department's use of funds.
   (d) At least five cents ($0.05) of the ten-cent ($0.10) special
purpose assessment shall be directed to the purpose set forth in
subdivision (a) until January 1, 2009, and to the degree that funding
for low-cost auto insurance is not fully appropriated up to five
cents ($0.05), the difference thereof shall be additionally allocated
to purposes set forth in subdivision (a).
   (e) This section shall remain in effect only until January 1,
2010, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2010, deletes or extends
that date.
  SEC. 172.  Section 1872.86 of the Insurance Code is amended to
read:
   1872.86.  (a) An insurer doing business in this state shall pay an
annual special purpose assessment to be determined by the
commissioner, not to exceed five thousand one hundred dollars
($5,100), to be used exclusively for the support of the Fraud
Division. All moneys received by the commissioner from insurers
pursuant to this section shall be transmitted to the Treasurer to be
deposited in the State Treasury to the credit of the Insurance Fund.
   (b) The Fraud Division shall report annually, on the department's
Internet Web site, all of the following information:
   (1) The number of suspected fraudulent claim referrals made to the
Fraud Division pursuant to Section 1872.4, by line of insurance.
   (2) The number of investigations opened by the Fraud Division, by
line of insurance, at the local, state, and federal levels.
   (3) The number of investigations referred by the Fraud Division
for criminal prosecution, by line of insurance, at the local, state,
and federal levels.
   (4) The number of insurer fraud cases investigated by the
department's Enforcement Branch.
   (5) The number of criminal complaints filed by prosecutors at the
local, state, and federal levels.
   (6) The number of convictions at the local, state, and federal
levels.
   (7) The total amount of court-ordered restitution, and the amount
collected by the courts for the victims.
   (8) The number of training presentations focusing on the current
schemes and trends, investigative tools and techniques, and proper
reporting requirements needed to increase the quality of suspected
fraudulent referrals by insurance industry special investigation
units.
   (9) The number of vacant peace officer positions, including
information on the number and rate of vacancies for which an
employment commitment has been made and on the number and rate of
vacancies required to meet budgeted salary savings requirements.
  SEC. 173.  Section 15031 of the Insurance Code is amended to read:
   15031.  (a) A licensee shall not conduct a business under a
fictitious or other business name unless and until he or she has
obtained the written authorization of the commissioner to do so.
   (b) The commissioner shall not authorize the use of a fictitious
or other business name that is so similar to that of a public officer
or agency or that used by another licensee that the public may be
confused or misled thereby.
   (c) The authorization shall require, as a condition precedent to
the use of a fictitious name, that the licensee comply with Section
1724.5 of this code and Chapter 5 (commencing with Section 17900) of
Part 3 of Division 7 of the Business and Professions Code.
   (d) A licensee desiring to conduct his or her business under more
than one fictitious name shall obtain the authorization of the
commissioner in a manner prescribed in this section for the use of
additional fictitious names.
   (e) The licensee shall pay a fee of ten dollars ($10) for each
authorization to use an additional fictitious name and for each
change in the use of a fictitious business name. If the original
license is issued in a nonfictitious name and authorization is
requested to have the license reissued in a fictitious business name,
the licensee shall pay a fee of ten dollars ($10) for that
authorization.
  SEC. 174.  Section 77.7 of the Labor Code is amended to read:
   77.7.  (a) A study shall be undertaken to examine the causes of
the number of insolvencies among workers' compensation insurers
within the past 10 years. The study shall be conducted by an
independent research organization under the direction of the
commission. Not later than July 1, 2009, the commission and the
department shall publish the report of the study on its Internet Web
site and shall inform the Legislature and the Governor of the
availability of the report.
   (b) The study shall include an analysis of the following: the
access to capital for workers' compensation insurance from all
sources between 1993 and 2003; the availability, source, and risk
assumed of reinsurers during this period; the use of deductible
policies and their effect on solvency regulation; market activities
by insurers and producers that affected market concentration;
activities, including financial oversight of insurers, by insurance
regulators and the National Association of Insurance Commissioners
during this period; the quality of data reporting to the commissioner'
s designated statistical agent and the accuracy of recommendations
provided by the commissioner's designated statistical agent during
this period of time; and underwriting, claims adjusting, and
reserving practices of insolvent insurers. The study shall also
include a survey of reports of other state agencies analyzing the
insurance market response to rising system costs within the
applicable time period.
   (c) Data reasonably required for the study shall be made available
by the California Insurance Guarantee Association, Workers'
Compensation Insurance Rating Bureau, third-party administrators for
the insolvent insurers, whether prior to or after the insolvency, the
State Compensation Insurance Fund, and the Department of Insurance.
The commission shall also include a survey of reports by the
commission and other state agencies analyzing the insurance market
response to rising system costs within the applicable period of time.

   (d) The cost of the study is not to exceed one million dollars
($1,000,000). Confidential information identifiable to a natural
person or insurance company held by an agency, organization,
association, or other person or entity shall be released to
researchers upon satisfactory agreement to maintain confidentiality.
Information or material that is not subject to subpoena from the
agency, organization, association, or other person or entity shall
not be subject to subpoena from the commission or the contracted
research organization.
   (e) The costs of the study shall be borne one-half by the
commission from funds derived from the Workers' Compensation
Administration Revolving Fund and one-half by insurers from
assessments allocated to each insurer based on the insurer's
proportionate share of the market as shown by the Market Share Report
for Calendar Year 2006 published by the Department of Insurance.
   (f) In order to protect individual company trade secrets, this
study shall not lead to the disclosure of, either directly or
indirectly, the business practices of a company that provides data
pursuant to this section. This prohibition shall not apply to
insurance companies that have been ordered by a court of competent
jurisdiction to be placed in liquidation under the supervision of a
liquidator or other authority.
  SEC. 175.  Section 4604.5 of the Labor Code is amended to read:
   4604.5.  (a) Upon adoption by the administrative director of a
medical treatment utilization schedule pursuant to Section 5307.27,
the recommended guidelines set forth in the schedule shall be
presumptively correct on the issue of extent and scope of medical
treatment. The presumption is rebuttable and may be controverted by a
preponderance of the scientific medical evidence establishing that a
variance from the guidelines reasonably is required to cure or
relieve the injured worker from the effects of his or her injury. The
presumption created is one affecting the burden of proof.
   (b) The recommended guidelines set forth in the schedule adopted
pursuant to subdivision (a) shall reflect practices that are evidence
and scientifically based, nationally recognized, and peer reviewed.
The guidelines shall be designed to assist providers by offering an
analytical framework for the evaluation and treatment of injured
workers, and shall constitute care in accordance with Section 4600
for all injured workers diagnosed with industrial conditions.
   (c) Three months after the publication date of the updated
American College of Occupational and Environmental Medicine's
Occupational Medicine Practice Guidelines, and continuing until the
effective date of a medical treatment utilization schedule, pursuant
to Section 5307.27, the recommended guidelines set forth in the
American College of Occupational and Environmental Medicine's
Occupational Medicine Practice Guidelines shall be presumptively
correct on the issue of extent and scope of medical treatment,
regardless of date of injury. The presumption is rebuttable and may
be controverted by a preponderance of the evidence establishing that
a variance from the guidelines reasonably is required to cure and
relieve the employee from the effects of his or her injury, in
accordance with Section 4600. The presumption created is one
affecting the burden of proof.
   (d) (1) Notwithstanding the medical treatment utilization schedule
or the guidelines set forth in the American College of Occupational
and Environmental Medicine's Occupational Medicine Practice
Guidelines, for injuries occurring on and after January 1, 2004, an
employee shall be entitled to no more than 24 chiropractic, 24
occupational therapy, and 24 physical therapy visits per industrial
injury.
   (2) Paragraph (1) shall not apply when an employer authorizes, in
writing, additional visits to a health care practitioner for physical
medicine services.
   (3) Paragraph (1) shall not apply to visits for postsurgical
physical medicine and postsurgical rehabilitation services provided
in compliance with a postsurgical treatment utilization schedule
established by the administrative director pursuant to Section
5307.27.
   (e) For all injuries not covered by the American College of
Occupational and Environmental Medicine's Occupational Medicine
Practice Guidelines or the official utilization schedule after
adoption pursuant to Section 5307.27, authorized treatment shall be
in accordance with other evidence-based medical treatment guidelines
that are recognized generally by the national medical community and
scientifically based.
  SEC. 176.  Section 4658.5 of the Labor Code is amended to read:
   4658.5.  (a) Except as provided in Section 4658.6, if the injury
causes permanent partial disability and the injured employee does not
return to work for the employer within 60 days of the termination of
temporary disability, the injured employee shall be eligible for a
supplemental job displacement benefit in the form of a
nontransferable voucher for education-related retraining or skill
enhancement, or both, at state-approved or accredited schools, as
follows:
   (1) Up to four thousand dollars ($4,000) for permanent partial
disability awards of less than 15 percent.
   (2) Up to six thousand dollars ($6,000) for permanent partial
disability awards between 15 and 25 percent.
   (3) Up to eight thousand dollars ($8,000) for permanent partial
disability awards between 26 and 49 percent.
   (4) Up to ten thousand dollars ($10,000) for permanent partial
disability awards between 50 and 99 percent.
   (b) The voucher may be used for payment of tuition, fees, books,
and other expenses required by the school for retraining or skill
enhancement. No more than 10 percent of the voucher moneys may be
used for vocational or return-to-work counseling. The administrative
director shall adopt regulations governing the form of payment,
direct reimbursement to the injured employee upon presentation to the
employer of appropriate documentation and receipts, and other
matters necessary to the proper administration of the supplemental
job displacement benefit.
   (c) Within 10 days of the last payment of temporary disability,
the employer shall provide to the employee, in the form and manner
prescribed by the administrative director, information that provides
notice of rights under this section. This notice shall be sent by
certified mail.
   (d) This section shall apply to injuries occurring on or after
January 1, 2004.
  SEC. 177.  Section 293 of the Penal Code is amended to read:
   293.  (a) An employee of a law enforcement agency who personally
receives a report from a person, alleging that the person making the
report has been the victim of a sex offense, shall inform that person
that his or her name will become a matter of public record unless he
or she requests that it not become a matter of public record,
pursuant to Section 6254 of the Government Code.
   (b) A written report of an alleged sex offense shall indicate that
the alleged victim has been properly informed pursuant to
subdivision (a) and shall memorialize his or her response.
   (c) A law enforcement agency shall not disclose to a person,
except the prosecutor, parole officers of the Department of
Corrections and Rehabilitation, hearing officers of the parole
authority, probation officers of county probation departments, or
other persons or public agencies where authorized or required by law,
the address of a person who alleges to be the victim of a sex
offense.
   (d) A law enforcement agency shall not disclose to a person,
except the prosecutor, parole officers of the Department of
Corrections and Rehabilitation, hearing officers of the parole
authority, probation offices of county probation departments, or
other persons or public agencies where authorized or required by law,
the name of a person who alleges to be the victim of a sex offense,
if that person has elected to exercise his or her right pursuant to
this section and Section 6254 of the Government Code.
   (e) For purposes of this section, sex offense means any crime
listed in paragraph (2) of subdivision (f) of Section 6254 of the
Government Code.
   (f) Parole officers of the Department of Corrections and
Rehabilitation, hearing officers of the parole authority, and
probation officers of county probation departments shall be entitled
to receive information pursuant to subdivisions (c) and (d) only if
the person to whom the information pertains alleges that he or she is
the victim of a sex offense, the alleged perpetrator of which is a
parolee who is alleged to have committed the sex offense while on
parole, or in the case of a county probation officer, the person who
is alleged to have committed the sex offense is a probationer or is
under investigation by a county probation department pursuant to
Section 1203.
  SEC. 178.  Section 398 of the Penal Code is amended to read:
   398.  (a) If a person owning or having custody or control of an
animal knows, or has reason to know, that the animal bit another
person, he or she shall, as soon as is practicable, but no later than
48 hours thereafter, provide the other person with his or her name,
address, telephone number, and the name and license tag number of the
animal who bit the other person. If the person with custody or
control of the animal at the time the bite occurs is a minor, he or
she shall instead provide identification or contact information of an
adult owner or responsible party. If the animal is required by law
to be vaccinated against rabies, the person owning or having custody
or control of the animal shall, within 48 hours of the bite, provide
the other person with information regarding the status of the animal'
s vaccinations. Violation of this section is an infraction punishable
by a fine of not more than one hundred dollars ($100).
   (b) For purposes of this section, it is necessary for the skin of
the person to be broken or punctured by the animal for the contact to
be classified as a bite.
  SEC. 179.  Section 903.2 of the Penal Code is amended to read:
   903.2.  The jury commissioner shall diligently inquire and inform
himself or herself in respect to the qualifications of persons
resident in his or her county who may be liable to be summoned for
grand jury duty. He or she may require a person to answer, under oath
to be administered by him or her, all questions as he or she may
address to that person, touching his or her name, age, residence,
occupation, and qualifications as a grand juror, and also all
questions as to similar matters concerning other persons of whose
qualifications for grand jury duty he or she has knowledge.
   The commissioner and his or her assistants, referred to in
Sections 69895 and 69896 of the Government Code, shall have the power
to administer oaths and shall be allowed actual traveling expenses
incurred in the performance of their duties. Those traveling expenses
shall be audited, allowed, and paid out of the general fund of the
county.
  SEC. 180.  Section 1170 of the Penal Code, as amended by Section 1
of Chapter 740 of the Statutes of 2007, is amended to read:
   1170.  (a) (1) The Legislature finds and declares that the purpose
of imprisonment for crime is punishment. This purpose is best served
by terms proportionate to the seriousness of the offense with
provision for uniformity in the sentences of offenders committing the
same offense under similar circumstances. The Legislature further
finds and declares that the elimination of disparity and the
provision of uniformity of sentences can best be achieved by
determinate sentences fixed by statute in proportion to the
seriousness of the offense as determined by the Legislature to be
imposed by the court with specified discretion.
   (2) Notwithstanding paragraph (1), the Legislature further finds
and declares that programs should be available for inmates,
including, but not limited to, educational programs, that are
designed to prepare nonviolent felony offenders for successful
reentry into the community. The Legislature encourages the
development of policies and programs designed to educate and
rehabilitate nonviolent felony offenders. In implementing this
section, the Department of Corrections and Rehabilitation is
encouraged to give priority enrollment in programs to promote
successful return to the community to an inmate with a short
remaining term of commitment and a release date that would allow him
or her adequate time to complete the program.
   (3) In a case in which the punishment prescribed by statute for a
person convicted of a public offense is a term of imprisonment in the
state prison of any specification of three time periods, the court
shall sentence the defendant to one of the terms of imprisonment
specified unless the convicted person is given another disposition
provided by law, including a fine, jail, probation, or the suspension
of imposition or execution of sentence or is sentenced pursuant to
subdivision (b) of Section 1168 because he or she had committed his
or her crime prior to July 1, 1977. In sentencing the convicted
person, the court shall apply the sentencing rules of the Judicial
Council. The court, unless it determines that there are circumstances
in mitigation of the punishment prescribed, shall also impose any
other term that it is required by law to impose as an additional
term. This article does not affect a provision of law that imposes
the death penalty, that authorizes or restricts the granting of
probation or suspending the execution or imposition of sentence, or
expressly provides for imprisonment in the state prison for life. In
a case in which the amount of preimprisonment credit under Section
2900.5 or another provision of law is equal to or exceeds a sentence
imposed pursuant to this chapter, the entire sentence shall be deemed
to have been served and the defendant shall not be actually
delivered to the custody of the secretary. The court shall advise the
defendant that he or she shall serve a period of parole and order
the defendant to report to the parole office closest to the defendant'
s last legal residence, unless the in-custody credits equal the total
sentence, including both confinement time and the period of parole.
The sentence shall be deemed a separate prior prison term under
Section 667.5, and a copy of the judgment and other necessary
documentation shall be forwarded to the secretary.
   (b) When a judgment of imprisonment is to be imposed and the
statute specifies three possible terms, the choice of the appropriate
term shall rest within the sound discretion of the court. At least
four days prior to the time set for imposition of judgment, either
party or the victim, or the family of the victim if the victim is
deceased, may submit a statement in aggravation or mitigation. In
determining the appropriate term, the court may consider the record
in the case, the probation officer's report, other reports including
reports received pursuant to Section 1203.03 and statements in
aggravation or mitigation submitted by the prosecution, the
defendant, or the victim, or the family of the victim if the victim
is deceased, and any further evidence introduced at the sentencing
hearing. The court shall select the term that, in the court's
discretion, best serves the interests of justice. The court shall set
forth on the record the reasons for imposing the term selected and
the court shall not impose an upper term by using the fact of an
enhancement upon which sentence is imposed under any provision of
law. A term of imprisonment shall not be specified if imposition of
sentence is suspended.
   (c) The court shall state the reasons for its sentence choice on
the record at the time of sentencing. The court also shall inform the
defendant that as part of the sentence after expiration of the term
he or she may be on parole for a period as provided in Section 3000.
   (d) When a defendant subject to this section or subdivision (b) of
Section 1168 has been sentenced to be imprisoned in the state prison
and has been committed to the custody of the secretary, the court
may, within 120 days of the date of commitment on its own motion, or
at any time upon the recommendation of the secretary or the Board of
Parole Hearings, recall the sentence and commitment previously
ordered and resentence the defendant in the same manner as if he or
she had not previously been sentenced, provided that the new
sentence, if any, is no greater than the initial sentence. The
resentence under this subdivision shall apply the sentencing rules of
the Judicial Council to eliminate disparity of sentences and to
promote uniformity of sentencing. Credit shall be given for time
served.
   (e) (1) Notwithstanding any other law and consistent with
paragraph (1) of subdivision (a), if the secretary or the Board of
Parole Hearings, or both, determine that a prisoner satisfies the
criteria set forth in paragraph (2), the secretary or the board may
recommend to the court that the prisoner's sentence be recalled.
   (2) The court shall have the discretion to resentence or recall if
the court finds that the facts described in subparagraphs (A) and
(B) or subparagraphs (B) and (C) exist:
   (A) The prisoner is terminally ill with an incurable condition
caused by an illness or disease that would produce death within six
months, as determined by a physician employed by the department.
   (B) The conditions under which the prisoner would be released or
receive treatment do not pose a threat to public safety.
   (C) The prisoner is permanently medically incapacitated with a
medical condition that renders him or her permanently unable to
perform activities of basic daily living, and results in the prisoner
requiring 24-hour total care, including, but not limited to, coma,
persistent vegetative state, brain death, ventilator-dependency, or
loss of control of muscular or neurological function, and that
incapacitation did not exist at the time of the original sentencing.
   The Board of Parole Hearings shall make findings pursuant to this
subdivision before making a recommendation for resentence or recall
to the court. This subdivision does not apply to a prisoner sentenced
to death or a term of life without the possibility of parole.
   (3) Within 10 days of receipt of a positive recommendation by the
secretary or the board, the court shall hold a hearing to consider
whether the prisoner's sentence should be recalled.
   (4) A physician employed by the department who determines that a
prisoner has six months or less to live shall notify the chief
medical officer of the prognosis. If the chief medical officer
concurs with the prognosis, he or she shall notify the warden. Within
48 hours of receiving notification, the warden or the warden's
representative shall notify the prisoner of the recall and
resentencing procedures, and shall arrange for the prisoner to
designate a family member or other outside agent to be notified as to
the prisoner's medical condition and prognosis, and as to the recall
and resentencing procedures. If the inmate is deemed mentally unfit,
the warden or the warden's representative shall contact the inmate's
emergency contact and provide the information described in paragraph
(2).
   (5) The warden or the warden's representative shall provide the
prisoner and his or her family member, agent, or emergency contact,
as described in paragraph (4), updated information throughout the
recall and resentencing process with regard to the prisoner's medical
condition and the status of the prisoner's recall and resentencing
proceedings.
   (6) Notwithstanding any other provisions of this section, the
prisoner or his or her family member or designee may independently
request consideration for recall and resentencing by contacting the
chief medical officer at the prison or the secretary. Upon receipt of
the request, the chief medical officer and the warden or the warden'
s representative shall follow the procedures described in paragraph
(4). If the secretary determines that the prisoner satisfies the
criteria set forth in paragraph (2), the secretary or board may
recommend to the court that the prisoner's sentence be recalled. The
secretary shall submit a recommendation for release within 30 days in
the case of inmates sentenced to determinate terms and, in the case
of inmates sentenced to indeterminate terms, the secretary shall make
a recommendation to the
Board of Parole Hearings with respect to the inmates who have applied
under this section. The board shall consider this information and
make an independent judgment pursuant to paragraph (2) and make
findings related thereto before rejecting the request or making a
recommendation to the court. This action shall be taken at the next
lawfully noticed board meeting.
   (7) A recommendation for recall submitted to the court by the
secretary or the Board of Parole Hearings shall include one or more
medical evaluations, a postrelease plan, and findings pursuant to
paragraph (2).
   (8) If possible, the matter shall be heard before the same judge
of the court who sentenced the prisoner.
   (9) If the court grants the recall and resentencing application,
the prisoner shall be released by the department within 48 hours of
receipt of the court's order, unless a longer time period is agreed
to by the inmate. At the time of release, the warden or the warden's
representative shall ensure that the prisoner has each of the
following in his or her possession: a discharge medical summary, full
medical records, state identification, parole medications, and all
property belonging to the prisoner. After discharge, any additional
records shall be sent to the prisoner's forwarding address.
   (10) The secretary shall issue a directive to medical and
correctional staff employed by the department that details the
guidelines and procedures for initiating a recall and resentencing
procedure. The directive shall clearly state that a prisoner who is
given a prognosis of six months or less to live is eligible for
recall and resentencing consideration, and that recall and
resentencing procedures shall be initiated upon that prognosis.
   (f) A sentence imposed under this article shall be subject to the
provisions of Sections 3000 and 3057 and other applicable provisions
of law.
   (g) A sentence to state prison for a determinate term for which
only one term is specified, is a sentence to state prison under this
section.
   (h) This section shall remain in effect only until January 1,
2009, and as of that date is repealed, unless a later enacted
statute, that is enacted before that date, deletes or extends that
date.
  SEC. 181.  Section 1369.1 of the Penal Code is amended to read:
   1369.1.  (a) As used in this chapter, for the sole purpose of
administering antipsychotic medication pursuant to a court order,
"treatment facility" includes a county jail. Upon the concurrence of
the county board of supervisors, the county mental health director,
and the county sheriff, the jail may be designated to provide
medically approved medication to defendants found to be mentally
incompetent and unable to provide informed consent due to a mental
disorder, pursuant to this chapter. In the case of Madera, Napa, and
Santa Clara Counties, the concurrence shall be with the board of
supervisors, the county mental health director, and the county
sheriff or the chief of corrections. The provisions of Sections 1370
and 1370.01 shall apply to antipsychotic medications provided in a
county jail, provided, however, that the maximum period of time a
defendant may be treated in a treatment facility pursuant to this
section shall not exceed six months.
   (b) The State Department of Mental Health shall report to the
Legislature on or before January 1, 2009, on all of the following:
   (1) The number of defendants in the state who are incompetent to
stand trial.
   (2) The resources available at state hospitals and local mental
health facilities, other than jails, for returning these defendants
to competence.
   (3) Additional resources that are necessary to reasonably treat,
in a reasonable period of time, at the state and local levels,
excluding jails, defendants who are incompetent to stand trial.
   (4) What, if any, statewide standards and organizations exist
concerning local treatment facilities that could treat defendants who
are incompetent to stand trial.
   (5) Address the concerns regarding defendants who are incompetent
to stand trial who are currently being held in jail awaiting
treatment.
   (c) This section does not abrogate or limit any provision of law
enacted to ensure the due process rights set forth in Sell v. United
States (2003) 539 U.S. 166.
   (d)This section shall remain in effect only until January 1, 2010,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2010, deletes or extends that date.

  SEC. 182.  Section 11062 of the Penal Code is amended to read:
   11062.  (a) The Department of Justice shall establish and chair a
task force to conduct a review of California's crime laboratory
system.
   (b) The task force shall be known as the "Crime Laboratory Review
Task Force." The composition of the task force shall, except as
specified in paragraph (16), be comprised of one representative of
each of the following entities:
   (1) The Department of Justice.
   (2) The California Association of Crime Laboratory Directors.
   (3) The California Association of Criminalists.
   (4) The International Association for Identification.
   (5) The American Society of Crime Laboratory Directors.
   (6) The Department of the California Highway Patrol.
   (7) The California State Sheriffs' Association, from a department
with a crime laboratory.
   (8) The California District Attorneys Association, from an office
with a crime laboratory.
   (9) The California Police Chiefs Association, from a department
with a crime laboratory.
   (10) The California Peace Officers' Association.
   (11) The California Public Defenders Association.
   (12) A private criminal defense attorney organization.
   (13) The Judicial Council, to be appointed by the Chief Justice.
   (14) The Office of the Speaker of the Assembly.
   (15) The Office of the President pro Tempore of the Senate.
   (16) Two representatives to be appointed by the Governor.
   (c) The task force shall review and make recommendations as to how
best to configure, fund, and improve the delivery of state and local
crime laboratory services in the future. To the extent feasible, the
review and recommendations shall include, but are not limited to,
addressing the following issues:
   (1) With respect to organization and management of crime
laboratory services, consideration of the following:
   (A) If the existing mix of state and local crime laboratories is
the most effective and efficient means to meet California's future
needs.
   (B) Whether laboratories should be further consolidated. If
consolidation occurs, who should have oversight of crime
laboratories.
   (C) If management responsibilities for some laboratories should be
transferred.
   (D) Whether all laboratories should provide similar services.
   (E) How other states have addressed similar issues.
   (2) With respect to staff and training, consideration of the
following:
   (A) How to address recruiting and retention problems of laboratory
staff.
   (B) Whether educational and training opportunities are adequate to
supply the needs of fully trained forensic criminalists in the
future.
   (C) Whether continuing education is available to ensure that
forensic science personnel are up-to-date in their fields of
expertise.
   (D) If crime laboratory personnel should be certified, and, if so,
the appropriate agency to assume this responsibility.
   (E) The future educational role, if any, for the University of
California or the California State University.
   (3) With respect to funding, consideration of the following:
   (A) Whether the current method of funding laboratories is
predictable, stable, and adequate to meet future growth demands and
to provide accurate and timely testing results.
   (B) The adequacy of salary structures to attract and retain
competent analysts and examiners.
   (4) With respect to performance standards and equipment,
consideration of the following:
   (A) Whether workload demands are being prioritized properly and
whether there are important workload issues not being addressed.
   (B) If existing laboratories have the necessary capabilities,
staffing, and equipment.
   (C) If statewide standards should be developed for the
accreditation of forensic laboratories, including minimum staffing
levels, and if so, a determination regarding what entity should serve
as the sanctioning body.
   (d) The task force also shall seek input from specialized law
enforcement disciplines, other state and local agencies, relevant
advocacy groups, and the public. The final report also shall include
a complete inventory of existing California crime laboratories. This
inventory shall contain sufficient details on staffing, workload,
budget, major instrumentation, and organizational placement within
the controlling agency.
   (e) The first meeting of the task force shall occur no later than
December 9, 2007.
   (f) On or before July 1, 2009, the task force shall submit a final
report of its findings to the Department of Finance and to the
budget and public safety committees of both houses of the
Legislature.
  SEC. 183.  Section 4584 of the Public Resources Code is amended to
read:
   4584.  Upon determining that the exemption is consistent with the
purposes of this chapter, the board may exempt from this chapter, or
portions thereof, a person engaged in forest management whose
activities are limited to any of the following:
   (a) The cutting or removal of trees for the purpose of
constructing or maintaining a right-of-way for utility lines.
   (b) The planting, growing, nurturing, shaping, shearing, removal,
or harvest of immature trees for Christmas trees or other ornamental
purposes or minor forest products, including fuelwood.
   (c) The cutting or removal of dead, dying, or diseased trees of
any size.
   (d) Site preparation.
   (e) Maintenance of drainage facilities and soil stabilization
treatments.
   (f) Timber operations on land managed by the Department of Parks
and Recreation.
   (g) (1) The one-time conversion of less than three acres to a
nontimber use. A person, whether acting as an individual or as a
member of a partnership, or as an officer or employee of a
corporation or other legal entity, shall not obtain more than one
exemption pursuant to this subdivision in a five-year period. If a
partnership has as a member, or if a corporation or other legal
entity has as an officer or employee, a person who has received this
exemption within the past five years, whether as an individual or as
a member of a partnership, or as an officer or employee of a
corporation or other legal entity, then that partnership,
corporation, or other legal entity is not eligible for this
exemption. "Person," for purposes of this subdivision, means an
individual, partnership, corporation, or other legal entity.
   (2) (A) Notwithstanding Section 4554.5, the board shall adopt
regulations that become effective and operative on or before July 1,
2002, and do all of the following:
   (i) Identify the required documentation of a bona fide intent to
complete the conversion that an applicant will need to submit in
order to be eligible for the exemption in paragraph (1).
   (ii) Authorize the department to inspect the sites approved in
conversion applications that have been approved on or after January
1, 2002, in order to determine that the conversion was completed
within the two-year period described in subparagraph (B) of paragraph
(2) of subdivision (a) of Section 1104.1 of Title 14 of the
California Code of Regulations.
   (iii) Require the exemption under this subdivision to expire if
there is a change in timberland ownership. The person who originally
submitted an application for an exemption under this subdivision
shall notify the department of a change in timberland ownership on or
before five calendar days after a change in ownership.
   (iv) The board may adopt regulations allowing a waiver of the
five-year limitation described in paragraph (1) upon finding that the
imposition of the five-year limitation would impose an undue
hardship on the applicant for the exemption. The board may adopt a
process for an appeal of a denial of a waiver.
   (B) The application form for the exemption pursuant to paragraph
(1) shall prominently advise the public that a violation of the
conversion exemption, including a conversion applied for in the name
of someone other than the person or entity implementing the
conversion in bona fide good faith, is a violation of this chapter
and penalties may accrue up to ten thousand dollars ($10,000) for
each violation pursuant to Article 8 (commencing with Section 4601).
   (h) Easements granted by a right-of-way construction agreement
administered by the federal government if any timber sales and
operations within or affecting these areas are reviewed and conducted
pursuant to the National Environmental Policy Act of 1969 (42 U.S.C.
Sec. 4321 et seq.).
   (i) The cutting, removal, or sale of timber or other solid wood
forest products from the species Taxus brevifolia (Pacific yew), if
the known locations of any stands of this species three inches and
larger in diameter at breast height are identified in the exemption
notice submitted to the department. Nothing in this subdivision is
intended to authorize the peeling of bark from, or the cutting or
removal of, Taxus brevifolia within a watercourse and lake protection
zone, special treatment area, buffer zone, or other area where
timber harvesting is prohibited or otherwise restricted pursuant to
board rules.
   (j) (1) The cutting or removal of trees in compliance with
Sections 4290 and 4291 that eliminates the vertical continuity of
vegetative fuels and the horizontal continuity of tree crowns for the
purpose of reducing flammable materials and maintaining a fuel break
for a distance of not more than 150 feet on each side from an
approved and legally permitted structure that complies with the
California Building Standards Code, when that cutting or removal is
conducted in compliance with this subdivision. For purposes of this
subdivision, an "approved and legally permitted structure" includes
only structures that are designed for human occupancy and garages,
barns, stables, and structures used to enclose fuel tanks.
   (2) (A) The cutting or removal of trees pursuant to this
subdivision is limited to cutting or removal that will result in a
reduction in the rate of fire spread, fire duration and intensity,
fuel ignitability, or ignition of the tree crowns and shall be in
accordance with any regulations adopted by the board pursuant to this
section.
   (B) Trees shall not be cut or removed pursuant to this subdivision
by the clearcutting regeneration method, by the seed tree removal
step of the seed tree regeneration method, or by the shelterwood
removal step of the shelterwood regeneration method.
   (3) (A) Surface fuels, including logging slash and debris, low
brush, and deadwood, that could promote the spread of wildfire shall
be chipped, burned, or otherwise removed from all areas of timber
operations within 45 days from the date of commencement of timber
operations pursuant to this subdivision.
   (B) (i) All surface fuels that are not chipped, burned, or
otherwise removed from all areas of timber operations within 45 days
from the date of commencement of timber operations may be determined
to be a nuisance and subject to abatement by the department or the
city or county having jurisdiction.
   (ii) The costs incurred by the department, city, or county, as the
case may be, to abate the nuisance upon any parcel of land subject
to the timber operations, including, but not limited to,
investigation, boundary determination, measurement, and other related
costs, may be recovered by special assessment and lien against the
parcel of land by the department, city, or county. The assessment may
be collected at the same time and in the same manner as ordinary ad
valorem taxes, and shall be subject to the same penalties and the
same procedure and sale in case of delinquency as is provided for ad
valorem taxes.
   (4) All timber operations conducted pursuant to this subdivision
shall conform to applicable city or county general plans, city or
county implementing ordinances, and city or county zoning ordinances.
This paragraph does not authorize the cutting, removal, or sale of
timber or other solid wood forest products within an area where
timber harvesting is prohibited or otherwise restricted pursuant to
the rules or regulations adopted by the board.
   (5) (A) The board shall adopt regulations, initially as emergency
regulations in accordance with subparagraph (B), that the board
considers necessary to implement and to obtain compliance with this
subdivision.
   (B) The emergency regulations adopted pursuant to subparagraph (A)
shall be adopted in accordance with the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code). The adoption of emergency
regulations shall be deemed to be an emergency and necessary for the
immediate preservation of the public peace, health, and safety, or
general welfare.
   (k) (1) Until January 1, 2013, the harvesting of trees, limited to
those trees that eliminate the vertical continuity of vegetative
fuels and the horizontal continuity of tree crowns, for the purpose
of reducing the rate of fire spread, duration and intensity, fuel
ignitability, or ignition of tree crowns.
   (2) The board may authorize an exemption pursuant to paragraph (1)
only if the tree harvesting will decrease fuel continuity and
increase the quadratic mean diameter of the stand, and the tree
harvesting area will not exceed 300 acres.
   (3) The notice of exemption, which shall be known as the Forest
Fire Prevention Exemption, may be authorized only if all of the
conditions specified in paragraphs (4) to (10), inclusive, are met.
   (4) A registered professional forester shall prepare the notice of
exemption and submit it to the director, and include a map of the
area of timber operations that complies with the requirements of
paragraphs (1), (3), (4), and (7) to (12), inclusive, of subdivision
(x) of Section 1034 of Title 14 of the California Code of
Regulations.
   (5) (A) The registered professional forester who submits the
notice of exemption shall include a description of the preharvest
stand structure and a statement of the postharvest stand stocking
levels.
   (B) The level of residual stocking shall be consistent with
maximum sustained production of high-quality timber products. The
residual stand shall consist primarily of healthy and vigorous
dominant and codominant trees from the preharvest stand. Stocking
shall not be reduced below the standards required by any of the
following provisions that apply to the exemption at issue:
   (i) Clauses 1 to 4, inclusive, of subparagraph (A) of paragraph
(1) of subdivision (a) of Section 913.3 of Title 14 of the California
Code of Regulations.
   (ii) Clauses 1 to 4, inclusive, of subparagraph (A) of paragraph
(1) of subdivision (a) of Section 933.3 of Title 14 of the California
Code of Regulations.
   (iii) Clauses 1 to 4, inclusive, of subparagraph (A) of paragraph
(1) of subdivision (a) of Section 953.3 of Title 14 of the California
Code of Regulations.
   (C) If the preharvest dominant and codominant crown canopy is
occupied by trees less than 14 inches in diameter at breast height, a
minimum of 100 trees over four inches in diameter at breast height
shall be retained per acre for Site I, II, and III lands, and a
minimum of 75 trees over four inches in diameter at breast height
shall be retained per acre for Site IV and V lands.
   (6) (A) The registered professional forester who submits the
notice shall include selection criteria for the trees to be harvested
or the trees to be retained. In the development of fuel reduction
prescriptions, the registered professional forester should consider
retaining habitat elements, where feasible, including, but not
limited to, ground level cover necessary for the long-term management
of local wildlife populations.
   (B) All trees that are harvested or all trees that are retained
shall be marked or sample marked by or under the supervision of a
registered professional forester before felling operations begin. The
board shall adopt regulations for sample marking for this section in
Title 14 of the California Code of Regulations. Sample marking shall
be limited to homogenous forest stand conditions typical of
plantations.
   (7) (A) The registered professional forester submitting the
notice, upon submission of the notice, shall provide a confidential
archaeology letter that includes all the information required by any
of the following provisions that apply to the exemption at issue:
   (i) Paragraphs (2) and (7) to (11), inclusive, of subdivision (c)
of Section 929.1 of Title 14 of the California Code of Regulations,
and include site records if required pursuant to subdivision (g) of
that section or pursuant to Section 929.5 of Title 14 of the
California Code of Regulations.
   (ii) Paragraphs (2) and (7) to (11), inclusive, of subdivision (c)
of Section 949.1 of Title 14 of the California Code of Regulations,
and include site records if required pursuant to subdivision (g) of
that section or pursuant to Section 949.5 of Title 14 of the
California Code of Regulations.
   (iii) Paragraphs (2) and (7) to (11), inclusive, of subdivision
(c) of Section 969.1 of Title 14 of the California Code of
Regulations, and include site records if required pursuant to
subdivision (g) of that section or pursuant to Section 969.5 of Title
14 of the California Code of Regulations.
   (B) The director shall submit a complete copy of the confidential
archaeological letter and two copies of all required archaeological
or historical site records to the appropriate Information Center of
the California Historical Resource Information System within 30 days
from the date of notice submittal to the director. Before submitting
the notice to the director, the registered professional forester
shall send a copy of the notice to Native Americans, as defined in
Section 895.1 of Title 14 of the California Code of Regulations.
   (8) Only trees less than 18 inches in stump diameter, measured at
eight inches above ground level, may be removed. However, within 500
feet of a legally permitted structure, or in an area prioritized as a
shaded fuel break in a community wildfire protection plan approved
by a public fire agency, if the goal of fuel reduction cannot be
achieved by removing trees less than 18 inches in stump diameter,
trees less than 24 inches in stump diameter may be removed if that
removal complies with this section and is necessary to achieve the
goal of fuel reduction. A fuel reduction effort shall not violate the
canopy closure regulations adopted by the board on June 10, 2004,
and as those regulations may be amended.
   (9) (A) This subparagraph applies to areas within 500 feet of a
legally permitted structure and in areas prioritized as a shaded fuel
break in a community wildfire protection plan approved by a public
fire agency. The board shall adopt regulations for the treatment of
surface and ladder fuels in the harvest area, including logging slash
and debris, low brush, small trees, and deadwood, that could promote
the spread of wildfire. The regulations adopted by the board shall
be consistent with the standards in the board's "General Guidelines
for Creating Defensible Space" described in Section 1299 of Title 14
of the California Code of Regulations. Postharvest standards shall
include vertical spacing between fuels, horizontal spacing between
fuels, maximum depth of dead ground surface fuels, and treatment of
standing dead fuels, as follows:
   (i) Ladder and surface fuels shall be spaced to achieve a vertical
clearance distance of eight feet or three times the height of the
postharvest fuels, whichever is the greater distance, measured from
the base of the live crown of the postharvest dominant and codominant
trees to the top of the surface fuels.
   (ii) Horizontal spacing shall achieve a minimum separation of two
to six times the height of the postharvest fuels, increasing spacing
with increasing slope, measured from the outside branch edges of the
fuels.
   (iii) Dead surface fuel depth shall be less than nine inches.
   (iv) Standing dead or dying trees and brush generally shall be
removed. That material, along with live vegetation associated with
the dead vegetation, may be retained for wildlife habitat when
isolated from other vegetation.
   (B) This subparagraph applies to all areas not described in
subparagraph (A).
   (i) The postharvest stand shall contain no more than 200 trees
over three inches in diameter per acre.
   (ii) Vertical spacing shall be achieved by treating dead fuels to
a minimum clearance distance of eight feet measured from the base of
the live crown of the postharvest dominant and codominant trees to
the top of the dead surface fuels.
   (iii) All logging slash created by the timber operations shall be
treated to achieve a maximum postharvest depth of nine inches above
the ground.
   (C) The standards required by subparagraphs (A) and (B) shall be
achieved on approximately 80 percent of the treated area. The
treatment shall include chipping, removing, or other methods
necessary to achieve the standards. Ladder and surface fuel
treatments, for any portion of the exemption area where timber
operations have occurred, shall be done within 120 days from the
start of timber operations on that portion of the exemption area or
by April 1 of the year following surface fuel creation on that
portion of the exemption area if the surface fuels are burned.
   (10) Timber operations shall comply with the requirements of
paragraphs (1) to (10), inclusive, of subdivision (b) of Section 1038
of Title 14 of the California Code of Regulations. Timber operations
in the Lake Tahoe region shall comply instead with the requirements
of paragraphs (1) to (16), inclusive, of subdivision (f) of Section
1038 of Title 14 of the California Code of Regulations.
   (11) After the timber operations are complete, the department
shall conduct an onsite inspection to determine compliance with this
subdivision and whether appropriate enforcement action should be
initiated.
  SEC. 184.  Section 5818.2 of the Public Resources Code is amended
to read:
   5818.2.  (a) (1) The funds in the Coastal Wetlands Fund may be
expended by the Department of Fish and Game and the State Coastal
Conservancy, upon appropriation by the Legislature, for the
maintenance of coastal wetlands property owned by the state, a
conservancy of the state, a local government agency, or a nonprofit
organization.
                        (2) The funds in the Coastal Wetlands Fund
may be expended by the state pursuant to this section in the form of
grants.
   (3) An applicant may apply to the State Coastal Conservancy for a
grant pursuant to the grant application procedures in Division 21
(commencing with Section 31000) to perform maintenance of coastal
wetlands property owned by the state, a conservancy of the state, a
local government agency, or a nonprofit organization.
   (b) The Department of Fish and Game and the State Coastal
Conservancy may accept contributions to the Coastal Wetlands Fund.
The sources of contributions that may be accepted include, but are
not limited to, private individuals and organizations, nonprofit
organizations, and federal, state, and local agencies including
special districts. The contributions accepted may include moneys
identified pursuant to the California Environmental Quality Act
(Division 13 (commencing with Section 21000)) or the National
Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.) as
acceptable mitigation for development projects. The Department of
Fish and Game and the State Coastal Conservancy shall deposit a
contribution accepted pursuant to this subdivision in the Coastal
Wetlands Fund, subject to the requirements of Section 5818.1.
  SEC. 185.  Section 25402.5.4 of the Public Resources Code is
amended to read:
   25402.5.4.  (a) On or before December 31, 2008, the commission
shall adopt minimum energy efficiency standards for all general
purpose lights on a schedule specified in the regulations. The
regulations, in combination with other programs and activities
affecting lighting use in the state, shall be structured to reduce
average statewide electrical energy consumption by not less than 50
percent from the 2007 levels for indoor residential lighting and by
not less than 25 percent from the 2007 levels for indoor commercial
and outdoor lighting, by 2018.
   (b) The commission shall make recommendations to the Governor and
the Legislature regarding how to continue reductions in electrical
consumption for lighting beyond 2018.
   (c) The commission may establish programs to encourage the sale in
this state of general purpose lights that meet or exceed the
standards set forth in subdivision (a).
   (d) (1) Except as provided in paragraph (2), the Department of
General Services, and all other state agencies, as defined in Section
12200 of the Public Contract Code, in coordination with the
commission, shall cease purchasing general purpose lights that do not
meet the standards adopted pursuant to subdivision (a), within two
years of those standards being adopted.
   (2) The Department of General Services, and all other state
agencies, as defined in Section 12200 of the Public Contract Code, in
coordination with the commission shall cease purchasing general
purpose lights with an appearance that is historically appropriate
for the facilities in which the lights are being used, and that do
not meet the standards adopted pursuant to subdivision (a) within
four years of those standards being adopted.
   (e) It is the intent of the Legislature to encourage the Regents
of the University of California, in coordination with the commission,
to cease purchasing general purpose lights that do not meet the
standards adopted pursuant to subdivision (a), within two years of
those standards being adopted.
   (f) (1) (A) For purposes of this section, "general purpose lights"
means lamps, bulbs, tubes, or other electric devices that provide
functional illumination for indoor residential, indoor commercial,
and outdoor use.
   (B) General purpose lights do not include any of the following
types of specialty lighting: appliance, black light, bug, colored,
infrared, left-hand thread, marine, marine signal service, mine
service, plant light, reflector, rough service, shatter resistant,
sign service, silver bowl, showcase, three-way, traffic signal, and
vibration service or vibration resistant.
   (2) The commission may, after one or more public workshops, with
public notice and an opportunity for all interested parties to
comment, provide for inclusion of a particular type of specialty
light in its energy efficiency standards applicable to general
purpose lighting, if it finds that there has been a significant
increase in sales of that particular type of particular specialty
light due to the use of that specialty light in general purpose
lighting applications.
   (3) General purpose lights do not include lights needed to provide
special-needs lighting for individuals with exceptional needs.
  SEC. 186.  Section 25402.10 of the Public Resources Code is amended
to read:
   25402.10.  (a) On and after January 1, 2009, electric and gas
utilities shall maintain records of the energy consumption data of
all nonresidential buildings to which they provide service. This data
shall be maintained, in a format compatible for uploading to the
United States Environmental Protection Agency's ENERGY STAR Portfolio
Manager, for at least the most recent 12 months.
   (b) On and after January 1, 2009, upon the written authorization
or secure electronic authorization of a nonresidential building owner
or operator, an electric or gas utility shall upload all of the
energy consumption data for the account specified for a building to
the United States Environmental Protection Agency's ENERGY STAR
Portfolio Manager in a manner that preserves the confidentiality of
the customer.
   (c) In carrying out this section, an electric or gas utility may
use any method for providing the specified data in order to maximize
efficiency and minimize overall program cost, and is encouraged to
work with the United States Environmental Protection Agency and
customers in developing reasonable reporting options.
   (d) On and after January 1, 2010, an owner or operator of a
nonresidential building shall disclose the United States
Environmental Protection Agency's ENERGY STAR Portfolio Manager
benchmarking data and ratings for the most recent 12-month period to
a prospective buyer, lessee of the entire building, or lender that
would finance the entire building. If the data is delivered to a
prospective buyer, lessee, or lender, a property owner, operator, or
his or her agent is not required to provide additional information,
and the information shall be deemed to be adequate to inform the
prospective buyer, lessee, or lender regarding the United States
Environmental Protection Agency's ENERGY STAR Portfolio Manager
benchmarking data and ratings for the most recent 12-month period for
the building that is being sold, leased, financed, or refinanced.
   (e) Notwithstanding subdivision (d), this section does not
increase or decrease the duties, if any, of a property owner,
operator, or his or her broker or agent under this chapter or alters
the duty of a seller, agent, or broker to disclose the existence of a
material fact affecting the real property.
  SEC. 187.  Section 30253 of the Public Resources Code is amended to
read:
   30253.  New development shall do all of the following:
   (a) Minimize risks to life and property in areas of high geologic,
flood, and fire hazard.
   (b) Assure stability and structural integrity, and neither create
nor contribute significantly to erosion, geologic instability, or
destruction of the site or surrounding area or in any way require the
construction of protective devices that would substantially alter
natural landforms along bluffs and cliffs.
   (c) Be consistent with requirements imposed by an air pollution
control district or the State Air Resources Board as to each
particular development.
   (d) Minimize energy consumption and vehicle miles traveled.
   (e) Where appropriate, protect special communities and
neighborhoods that, because of their unique characteristics, are
popular visitor destination points for recreational uses.
  SEC. 188.  Section 30327.5 of the Public Resources Code is amended
to read:
   30327.5.  (a) An interested person shall not give, convey, or make
available gifts aggregating more than ten dollars ($10) in a
calendar month to a commissioner or a member of the commission's
staff.
   (b) A commissioner or member of the commission's staff shall not
accept gifts aggregating more than ten dollars ($10) in a calendar
month from an interested person.
   (c) For purposes of this section, "interested person" shall have
the same meaning as the term is defined in Section 30323.
   (d) For purposes of this section, "gift" means, except as provided
in subdivision (e), a payment, as defined in Section 82044 of the
Government Code, that confers a personal benefit on the recipient, to
the extent that consideration of equal or greater value is not
received and includes a rebate or discount in the price of anything
of value unless the rebate or discount is made in the regular course
of business to members of the public without regard to official
status. A person, other than a defendant in a criminal action, who
claims that a payment is not a gift by reason of receipt of
consideration has the burden of proving that the consideration
received is of equal or greater value.
   (e) For purposes of this section, "gift" does not include any of
the following:
   (1) A gift that is not used and that, within 30 days after
receipt, is either returned to the donor or delivered to a nonprofit
entity exempt from taxation under Section 501(c)(3) of the Internal
Revenue Code, without being claimed as a charitable contribution for
tax purposes.
   (2) A gift from an individual's spouse, child, parent,
grandparent, grandchild, brother, sister, parent-in-law,
brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first
cousin, or the spouse of one of those individuals. However, a gift
from one of those people shall be considered a gift if the donor is
acting as an agent or intermediary for a person not covered in this
paragraph.
   (3) A cost associated with the provision of evidentiary material
provided to the commission and its staff.
   (4) An educational or training activity that has received prior
approval from the commission.
   (5) A field trip or site inspection that is made available on
equal terms and conditions to all commissioners and appropriate
staff.
   (6) A reception or purely social event that is not offered in
connection with or is not intended to influence a decision or action
of the commission and that is open to all commissioners, members of
the staff, and members of the public and press.
  SEC. 189.  Section 30327.6 of the Public Resources Code is amended
to read:
   30327.6.  (a) (1) Except as provided in paragraph (2), a person
who for compensation attempts to influence or affect the outcome of a
commission decision or action and who violates Section 30327.5 may,
in addition to any other applicable penalty, be barred from any
activity seeking to influence or affect the outcome of a commission
decision or action for a period of up to one year from the date of
the finding of the violation. Each violation shall be grounds for the
person being barred from any activity seeking to influence or affect
a commission decision or action for an additional year from the date
of conviction.
   (2) This section does not prohibit an individual from representing
himself or herself in seeking to influence or affect the outcome of
a commission decision or action if that individual is acting solely
on his or her own personal behalf and not on behalf of another person
or entity.
   (b) A person who violates Section 30327.5 shall, in addition to
any other applicable penalty, be subject to a civil fine not to
exceed five hundred dollars ($500) for each violation.
  SEC. 190.  Section 31408 of the Public Resources Code is amended to
read:
   31408.  (a) The conservancy shall, in consultation with the
Department of Parks and Recreation, the California Coastal
Commission, and the Department of Transportation, coordinate the
development of the California Coastal Trail.
   (b) To the extent feasible, and consistent with their individual
mandates, each agency, board, department, or commission of the state
with property interests or regulatory authority in coastal areas
shall cooperate with the conservancy with respect to planning and
making lands available for completion of the trail, including
constructing trail links, placing signs, and managing the trail.
  SEC. 191.  Section 35615 of the Public Resources Code is amended to
read:
   35615.  The council shall do all of the following:
   (a) (1) Coordinate activities of state agencies that are related
to the protection and conservation of coastal waters and ocean
ecosystems to improve the effectiveness of state efforts to protect
ocean resources within existing fiscal limitations, consistent with
Sections 35510 and 35515.
   (2) Establish policies to coordinate the collection, evaluation,
and sharing of scientific data related to coastal and ocean resources
among agencies.
   (3) (A) Establish a science advisory team of distinguished
scientists to assist the council in meeting the purposes of this
division. At the request of the council, the science advisory team
may convene to identify, develop, and prioritize subjects and
questions for research or investigation, and review and evaluate
results of research or investigations to provide information for the
council's activities.
   (B) The science advisory team shall include scientists from a
range of disciplines that are a part of the council's purview.
   (C) The science advisory team shall provide an independent and
timely analysis of reports and studies, identifying areas of
scientific consensus or uncertainty, using the best available science
by drawing on state, national, and international experts.
   (D) Scientists selected as members of the science advisory team
shall serve without compensation, except for reimbursement of
expenses and subject to the terms of an existing contract with the
state.
   (4) Contract with the California Ocean Science Trust and other
nonprofit organizations, ocean science institutes, academic
institutions, or others that have experience in conducting the
scientific and educational tasks that are required by the council.
   (5) Transmit the results of research and investigations to state
agencies to provide information for policy decisions.
   (6) Identify and recommend to the Legislature changes in law
needed to achieve the goals of this section.
   (b) (1) Identify changes in federal law and policy necessary to
achieve the goals of this division and to improve protection,
conservation, and restoration of ocean ecosystems in federal and
state waters off the state's coast.
   (2) Recommend to the Governor and the Legislature actions the
state should take to encourage those changes in federal law and
policy.
  SEC. 192.  Section 40117 of the Public Resources Code is amended to
read:
   40117.  "Gasification" means a technology that uses a
noncombustion thermal process to convert solid waste to a clean
burning fuel for the purpose of generating electricity, and that, at
minimum, meets all of the following criteria:
   (a) The technology does not use air or oxygen in the conversion
process, except ambient air to maintain temperature control.
   (b) The technology produces no discharges of air contaminants or
emissions, including greenhouse gases, as defined in subdivision (g)
of Section 38505 of the Health and Safety Code.
   (c) The technology produces no discharges to surface or
groundwaters of the state.
   (d) The technology produces no hazardous waste.
   (e) To the maximum extent feasible, the technology removes all
recyclable materials and marketable green waste compostable materials
from the solid waste stream prior to the conversion process and the
owner or operator of the facility certifies that those materials will
be recycled or composted.
   (f) The facility where the technology is used is in compliance
with all applicable laws, regulations, and ordinances.
   (g) The facility certifies to the board that any local agency
sending solid waste to the facility is in compliance with this
division and has reduced, recycled, or composted solid waste to the
maximum extent feasible, and the board makes a finding that the local
agency has diverted at least 30 percent of all solid waste through
source reduction, recycling, and composting.
  SEC. 193.  Section 353.1 of the Public Utilities Code is amended to
read:
   353.1.  As used in this article, "distributed energy resources"
means electric generation technology that meets all of the following
criteria:
   (a) Commences initial operation between May 1, 2001, and June 1,
2003, except that gas-fired distributed energy resources that are not
operated in a combined heat and power application shall commence
operation no later than September 1, 2002.
   (b) Is located within a single facility.
   (c) Is five megawatts or smaller in aggregate capacity.
   (d) Serves onsite loads or over-the-fence transactions allowed
under Sections 216 and 218.
   (e) Is powered by any fuel other than diesel.
   (f) Complies with emission standards and guidance adopted by the
State Air Resources Board pursuant to Sections 41514.9 and 41514.10
of the Health and Safety Code. Prior to the adoption of those
standards and guidance, for the purpose of this article, distributed
energy resources shall meet emission levels equivalent to nine parts
per million oxides of nitrogen, or the equivalent standard taking
into account efficiency as determined by the State Air Resources
Board, averaged over a three-hour period, or best available control
technology for the applicable air district, whichever is lower,
except for distributed generation units that displace and therefore
significantly reduce emissions from natural gas flares or reinjection
compressors, as determined by the State Air Resources Board. These
units shall comply with the applicable best available control
technology as determined by the air pollution control district or air
quality management district in which they are located.
  SEC. 194.  Section 399.12 of the Public Utilities Code is amended
to read:
   399.12.  For purposes of this article, the following terms have
the following meanings:
   (a) "Conduit hydroelectric facility" means a facility for the
generation of electricity that uses only the hydroelectric potential
of an existing pipe, ditch, flume, siphon, tunnel, canal, or other
manmade conduit that is operated to distribute water for a beneficial
use.
   (b) "Delivered" and "delivery" have the same meaning as provided
in subdivision (a) of Section 25741 of the Public Resources Code.
   (c) "Eligible renewable energy resource" means an electric
generating facility that meets the definition of "in-state renewable
electricity generation facility" in subdivision (b) of Section 25741
of the Public Resources Code, subject to the following limitations:
   (1) (A) An existing small hydroelectric generation facility of 30
megawatts or less shall be eligible only if a retail seller owned or
procured the electricity from the facility as of December 31, 2005. A
new hydroelectric facility is not an eligible renewable energy
resource if it will cause an adverse impact on instream beneficial
uses or cause a change in the volume or timing of streamflow.
   (B) Notwithstanding subparagraph (A), a conduit hydroelectric
facility of 30 megawatts or less that commenced operation before
January 1, 2006, is an eligible renewable energy resource. A conduit
hydroelectric facility of 30 megawatts or less that commences
operation after December 31, 2005, is an eligible renewable energy
resource so long as it does not cause an adverse impact on instream
beneficial uses or cause a change in the volume or timing of
streamflow.
   (2) A facility engaged in the combustion of municipal solid waste
shall not be considered an eligible renewable energy resource unless
it is located in Stanislaus County and was operational prior to
September 26, 1996.
   (d) "Energy Commission" means the State Energy Resources
Conservation and Development Commission.
   (e) "Local publicly owned electric utility" has the same meaning
as provided in subdivision (d) of Section 9604.
   (f) "Procure" means that a retail seller receives delivered
electricity generated by an eligible renewable energy resource that
it owns or for which it has entered into an electricity purchase
agreement. This article is not intended to imply that the purchase of
electricity from third parties in a wholesale transaction is the
preferred method of fulfilling a retail seller's obligation to comply
with this article.
   (g) "Renewables portfolio standard" means the specified percentage
of electricity generated by eligible renewable energy resources that
a retail seller is required to procure pursuant to this article.
   (h) (1) "Renewable energy credit" means a certificate of proof,
issued through the accounting system established by the Energy
Commission pursuant to Section 399.13, that one unit of electricity
was generated and delivered by an eligible renewable energy resource.

   (2) "Renewable energy credit" includes all renewable and
environmental attributes associated with the production of
electricity from the eligible renewable energy resource, except for
an emission reduction credit issued pursuant to Section 40709 of the
Health and Safety Code and any credits or payments associated with
the reduction of solid waste and treatment benefits created by the
utilization of biomass or biogas fuels.
   (3) No electricity generated by an eligible renewable energy
resource attributable to the use of nonrenewable fuels, beyond a de
minimis quantity, as determined by the Energy Commission, shall
result in the creation of a renewable energy credit.
   (i) "Retail seller" means an entity engaged in the retail sale of
electricity to end-use customers located within the state, including
any of the following:
   (1) An electrical corporation, as defined in Section 218.
   (2) A community choice aggregator. The commission shall institute
a rulemaking to determine the manner in which a community choice
aggregator will participate in the renewables portfolio standard
program subject to the same terms and conditions applicable to an
electrical corporation.
   (3) An electric service provider, as defined in Section 218.3, for
all sales of electricity to customers beginning January 1, 2006. The
commission shall institute a rulemaking to determine the manner in
which electric service providers will participate in the renewables
portfolio standard program. The electric service provider shall be
subject to the same terms and conditions applicable to an electrical
corporation pursuant to this article. This paragraph shall not impair
a contract entered into between an electric service provider and a
retail customer prior to the suspension of direct access by the
commission pursuant to Section 80110 of the Water Code.
   (4) "Retail seller" does not include any of the following:
   (A) A corporation or person employing cogeneration technology or
producing electricity consistent with subdivision (b) of Section 218.

   (B) The Department of Water Resources acting in its capacity
pursuant to Division 27 (commencing with Section 80000) of the Water
Code.
   (C) A local publicly owned electric utility.
  SEC. 195.  Section 884.5 of the Public Utilities Code is amended to
read:
   884.5.  (a) This section shall apply to all customers eligible to
receive discounts for telecommunications services under the federal
Universal Service E-rate program administered by the Schools and
Libraries Division of the Universal Service Administrative Company
that also apply for discounts on telecommunications services provided
through the California Teleconnect Fund Administrative Committee
Fund program pursuant to subdivision (a) of Section 280.
   (b) A teleconnect discount shall be applied after applying an
E-rate discount. The commission shall first apply an E-rate discount,
regardless of whether the customer has applied for an E-rate
discount or has been approved, if the customer, in the determination
of the commission, meets the eligibility requirements for an E-rate
discount.
   (c) Notwithstanding subdivision (b), the teleconnect discount
shall be applied without regard to an E-rate discount for a school
district that meets the conditions specified for compensation
pursuant to Article 4 (commencing with Section 42280) of Chapter 7 of
Part 24 of Division 3 of Title 2 of the Education Code, unless that
school district has applied for, and been approved to receive, the
E-rate discount.
   (d) In establishing a discount under the California Teleconnect
Fund Administrative Committee Fund program, the commission shall give
priority to bridging the "digital divide" by encouraging expanded
access to state-of-the-art technologies for rural, inner-city,
low-income, and disabled Californians.
   (e) As used in this section:
   (1) "E-rate discount" means an actual discount under the E-rate
program, or a representative discount figure as determined by the
commission.
   (2) "E-rate program" means the federal Universal Service E-rate
program administered by the Schools and Libraries Division of the
Universal Service Administrative Company.
   (3) "Teleconnect discount" means a discount on telecommunications
services provided through the California Teleconnect Fund
Administrative Committee Fund program set forth in subdivision (a) of
Section 280.
  SEC. 196.  Section 2829 of the Public Utilities Code is amended to
read:
   2829.  (a) For purposes of this section, the following terms have
the following meanings:
   (1) "EBMUD" means the East Bay Municipal Utility District
organized and operating pursuant to Division 6 (commencing with
Section 11501).
   (2) "Environmental attributes" associated with the generation of
electricity include the credits, benefits, emissions reductions,
environmental air quality credits, and emissions reduction credits,
offsets, and allowances, however entitled, resulting from the
avoidance of the emissions of any gas, chemical, or other substance
attributable to an electricity generation facility.
   (b) To ensure that no electrical corporation operates its monopoly
transmission and distribution system in a manner that impedes the
ability of the EBMUD to reduce its electricity costs through the
delivery of electricity generated by EBMUD, an electrical corporation
shall meet the requirements of this section.
   (c) An electrical corporation that owns and operates transmission
and distribution facilities that deliver electricity at one or more
locations to the EBMUD's system shall, upon request by EBMUD, and
without discrimination or delay, use the same facilities to deliver
electricity generated by EBMUD. EBMUD may elect to
                          designate specific hydroelectric generation
facilities owned by EBMUD for the generation of electricity to be
delivered to EBMUD, if the following conditions are met:
   (1) The amount of all electricity delivered to the electric grid
by the designated EBMUD hydroelectric generation is the property of
EBMUD.
   (2) Ownership and use of the environmental attributes associated
with the electricity delivered to the electric grid by
EBMUD-designated hydroelectric generation is retained by EBMUD.
   (d) (1) No rule, order, or tariff of the commission implementing
direct transactions is applicable to electricity generated by EBMUD,
that is delivered to EBMUD for its own use that is transported over
the transmission and distribution system of an electrical
corporation, pursuant to an election made by EBMUD pursuant to
subdivision (c).
   (2) Sections 365 and 366 are not applicable to electricity
generated by EBMUD, that is delivered to EBMUD for its own use that
is transported over the transmission and distribution system of an
electrical corporation, pursuant to an election made by EBMUD
pursuant to subdivision (c).
   (e) To compensate an electrical corporation for the use of its
facilities, EBMUD shall pay applicable rates approved by the
commission for distribution, or distribution and transmission, or any
transmission rates as required under federal law.
   (f) On or before January 1, 2009, each electrical corporation that
owns and operates transmission and distribution facilities that
deliver electricity at one or more locations to the EBMUD system
shall file an advice letter with the commission that complies with
this section. The commission, within 150 days of the date of filing
of the advice letter, shall approve the advice letter or specify
conforming changes to be made by the electrical corporation, to be
filed in an amended advice letter within 60 days.
   (g) The commission shall ensure that the delivery of electricity
from EBMUD-designated hydroelectric generation to the EBMUD service
territory pursuant to this section does not result in a shifting of
costs to the bundled service customers of an electrical corporation,
either immediately or over time.
  SEC. 197.  Section 107.7 of the Revenue and Taxation Code is
amended to read:
   107.7.  (a) When valuing possessory interests in real property
created by the right to place wires, conduits, and appurtenances
along or across public streets, rights-of-way, or public easements
contained in either a cable franchise or license granted pursuant to
Section 53066 of the Government Code (a "cable possessory interest")
or a state franchise to provide video service pursuant to Section
5840 of the Public Utilities Code (a "video possessory interest"),
the assessor shall value these possessory interests consistent with
the requirements of Section 401. The methods of valuation shall
include, but not be limited to, the comparable sales method, the
income method (including, but not limited to, capitalizing rent), or
the cost method.
   (b) (1) The preferred method of valuation of a cable television
possessory interest or video service possessory interest by the
assessor is capitalizing the annual rent, using an appropriate
capitalization rate.
   (2) For purposes of this section, the annual rent shall be that
portion of that franchise fee received that is determined to be
payment for the cable possessory interest or video service possessory
interest for the actual remaining term or the reasonably anticipated
term of the franchise or license or the appropriate economic rent.
If the assessor does not use a portion of the franchise fee as the
economic rent, the resulting assessments shall not benefit from any
presumption of correctness.
   (c) If the comparable sales method, which is not the preferred
method, is used by the assessor to value a cable possessory interest
or video service possessory interest when sold in combination with
other property, including, but not limited to, intangible assets or
rights, the resulting assessments shall not benefit from any
presumption of correctness.
   (d) Intangible assets or rights of a cable system or the provider
of video services are not subject to ad valorem property taxation.
These intangible assets or rights include, but are not limited to:
franchises or licenses to construct, operate, and maintain a cable
system or video service system for a specified franchise term
(excepting therefrom that portion of the franchise or license which
grants the possessory interest); subscribers, marketing, and
programming contracts; nonreal property lease agreements; management
and operating systems; a workforce in place; going concern value;
deferred, startup, or prematurity costs; covenants not to compete;
and goodwill. However, a cable possessory interest or video service
possessory interest may be assessed and valued by assuming the
presence of intangible assets or rights necessary to put the cable
possessory interest or video service possessory interest to
beneficial or productive use in an operating cable system or video
service system.
   (e) If a change in ownership of a cable possessory interest or
video service possessory interest occurs, the person or legal entity
required to file a statement pursuant to Section 480, 480.1, or 480.2
shall, at the request of the assessor, provide as a part of that
statement the following, if applicable: confirmation of the sales
price, allocation of the sales price among the counties, and gross
revenue and franchise fee expenses of the cable system or video
service system by county. Failure to provide the statement
information shall result in a penalty as provided in Section 482,
except that the maximum penalty shall be five thousand dollars
($5,000).
  SEC. 198.  Section 8352.6 of the Revenue and Taxation Code is
amended to read:
   8352.6.  (a) Subject to Section 8352.1, on the first day of every
month, there shall be transferred from moneys deposited to the credit
of the Motor Vehicle Fuel Account to the Off-Highway Vehicle Trust
Fund created by Section 38225 of the Vehicle Code an amount
attributable to taxes imposed upon distributions of motor vehicle
fuel used in the operation of motor vehicles off highway and for
which a refund has not been claimed. Transfers made pursuant to this
section shall be made prior to transfers pursuant to Section 8352.2.
   (b) The amount transferred pursuant to subdivision (a), as a
percentage of the Motor Vehicle Fuel Account, shall be equal to the
percentage transferred in the 2006-07 fiscal year. Every five years,
starting in the 2013-14 fiscal year, the percentage transferred may
be adjusted by the Department of Transportation in cooperation with
the Department of Parks and Recreation and the Department of Motor
Vehicles. Adjustments shall be based on, but not limited to, the
changes in the following factors since the 2006-07 fiscal year or the
last adjustment, whichever is more recent:
   (1) The number of vehicles registered as off-highway motor
vehicles as required by Division 16.5 (commencing with Section 38000)
of the Vehicle Code.
   (2) The number of registered street-legal vehicles that are
anticipated to be used off highway, including four-wheel drive
vehicles, all-wheel drive vehicles, and dual-sport motorcycles.
   (3) Attendance at the state vehicular recreation areas.
   (4) Off-highway recreation use on federal lands as indicated by
the United States Forest Service's National Visitor Use Monitoring
and the United States Bureau of Land Management's Recreation
Management Information System.
   (c) It is the intent of the Legislature that transfers from the
Motor Vehicle Fuel Account to the Off-Highway Vehicle Trust Fund
should reflect the full range of motorized vehicle use off highway
for both motorized recreation and motorized off-road access to other
recreation opportunities. Therefore, the Legislature finds that the
fuel tax baseline established in subdivision (b), attributable to
off-highway estimates of use as of the 2006-07 fiscal year, accounts
for the three categories of vehicles that have been found over the
years to be users of fuel for off-highway motorized recreation or
motorized access to nonmotorized recreational pursuits. These three
categories are registered off-highway motorized vehicles, registered
street-legal motorized vehicles used off highway, and unregistered
off-highway motorized vehicles.
   (d) It is the intent of the Legislature that the off-highway motor
vehicle recreational use to be determined by the Department of
Transportation pursuant to paragraph (2) of subdivision (b) be that
usage by vehicles subject to registration under Division 3
(commencing with Section 4000) of the Vehicle Code, for recreation or
the pursuit of recreation on surfaces where the use of vehicles
registered under Division 16.5 (commencing with Section 38000) of the
Vehicle Code may occur.
  SEC. 199.  Section 8352.8 of the Revenue and Taxation Code is
amended to read:
   8352.8.  (a) The Conservation and Enforcement Services Account is
hereby established as an account in the Off-Highway Vehicle Trust
Fund created by Section 38225 of the Vehicle Code.
   (b) Funds in the Conservation and Enforcement Services Account
shall be allocated to the Division of Off-Highway Motor Vehicle
Recreation of the Department of Parks and Recreation for expenditure,
upon appropriation by the Legislature, for the following purposes:
   (1) Up to 40 percent of the funds, for cooperative agreements or
challenge cost-sharing agreements with the United States Forest
Service and the United States Bureau of Land Management, to complete
necessary route designation planning work and to implement route
planning decisions.
   (2) Up to one million one hundred thousand dollars ($1,100,000)
for each grant cycle, to increase the amount of funds available for
restoration grants in the program pursuant to paragraph (2) of
subdivision (b) of Section 5090.50 of the Public Resources Code.
  SEC. 200.  Section 17053.5 of the Revenue and Taxation Code is
amended to read:
   17053.5.  (a) (1) For a qualified renter, there shall be allowed a
credit against his or her "net tax," as defined in Section 17039.
The amount of the credit shall be as follows:
   (A) For married couples filing joint returns, heads of household,
and surviving spouses, as defined in Section 17046, the credit shall
be equal to one hundred twenty dollars ($120) if adjusted gross
income is fifty thousand dollars ($50,000) or less.
   (B) For other individuals, the credit shall be equal to sixty
dollars ($60) if adjusted gross income is twenty-five thousand
dollars ($25,000) or less.
   (2) Except as provided in subdivision (b), a husband and wife
shall receive but one credit under this section. If the husband and
wife file separate returns, the credit may be taken by either or
equally divided between them, except as follows:
   (A) If one spouse was a resident for the entire taxable year and
the other spouse was a nonresident for part or all of the taxable
year, the resident spouse shall be allowed one-half the credit
allowed to married persons and the nonresident spouse shall be
permitted one-half the credit allowed to married persons, prorated as
provided in subdivision (e).
   (B) If both spouses were nonresidents for part of the taxable
year, the credit allowed to married persons shall be divided equally
between them subject to the proration provided in subdivision (e).
   (b) For a husband and wife, if each spouse maintained a separate
place of residence and resided in this state during the entire
taxable year, each spouse will be allowed one-half the full credit
allowed to married persons provided in subdivision (a).
   (c) For purposes of this section, a "qualified renter" means an
individual who satisfies both of the following:
   (1) Was a resident of this state, as defined in Section 17014.
   (2) Rented and occupied premises in this state which constituted
his or her principal place of residence during at least 50 percent of
the taxable year.
   (d) "Qualified renter" does not include any of the following:
   (1) An individual who for more than 50 percent of the taxable year
rented and occupied premises that were exempt from property taxes,
except that an individual, otherwise qualified, is deemed a qualified
renter if he or she or his or her landlord pays possessory interest
taxes, or the owner of those premises makes payments in lieu of
property taxes that are substantially equivalent to property taxes
paid on properties of comparable market value.
   (2) An individual whose principal place of residence for more than
50 percent of the taxable year is with another person who claimed
that individual as a dependent for income tax purposes.
   (3) An individual who has been granted or whose spouse has been
granted the homeowners' property tax exemption during the taxable
year. This paragraph does not apply to an individual whose spouse has
been granted the homeowners' property tax exemption if each spouse
maintained a separate residence for the entire taxable year.
   (e) An otherwise qualified renter who is a nonresident for any
portion of the taxable year shall claim the credits set forth in
subdivision (a) at the rate of one-twelfth of those credits for each
full month that individual resided within this state during the
taxable year.
   (f) A person claiming the credit provided in this section shall,
as part of that claim, and under penalty of perjury, furnish that
information as the Franchise Tax Board prescribes on a form supplied
by the board.
   (g) The credit provided in this section shall be claimed on
returns in the form as the Franchise Tax Board may from time to time
prescribe.
   (h) For purposes of this section, "premises" means a house or a
dwelling unit used to provide living accommodations in a building or
structure and the land incidental thereto, but does not include land
only, unless the dwelling unit is a mobilehome. The credit is not
allowed for any taxable year for the rental of land upon which a
mobilehome is located if the mobilehome has been granted a homeowners'
exemption under Section 218 in that year.
   (i) This section shall become operative on January 1, 1998, and
applies to any taxable year beginning on or after January 1, 1998.
   (j) For each taxable year beginning on or after January 1, 1999,
the Franchise Tax Board shall recompute the adjusted gross income
amounts set forth in subdivision (a). The computation shall be made
as follows:
   (1) The Department of Industrial Relations shall transmit annually
to the Franchise Tax Board the percentage change in the California
Consumer Price Index for all items from June of the prior calendar
year to June of the current year, no later than August 1 of the
current calendar year.
   (2) The Franchise Tax Board shall compute an inflation adjustment
factor by adding 100 percent to the portion of the percentage change
figure which is furnished pursuant to paragraph (1) and dividing the
result by 100.
   (3) The Franchise Tax Board shall multiply the amount in
subparagraph (B) of paragraph (1) of subdivision (d) for the
preceding taxable year by the inflation adjustment factor determined
in paragraph (2), and round off the resulting products to the nearest
one dollar ($1).
   (4) In computing the amounts pursuant to this subdivision, the
amounts provided in subparagraph (A) of paragraph (1) of subdivision
(a) shall be twice the amount provided in subparagraph (B) of
paragraph (1) of subdivision (a).
  SEC. 201.  Section 30182 of the Revenue and Taxation Code is
amended to read:
   30182.  (a) Except as provided in subdivision (b), a distributor
shall file, on or before the 25th day of each month, a report in the
form as prescribed by the board, that may include, but not be limited
to, electronic media with respect to distributions of cigarettes and
purchases of stamps and meter register units during the preceding
month and any other information as the board may require to carry out
this part.
   (b) Reports shall be authenticated in a form, or pursuant to
methods, as may be prescribed by the board.
  SEC. 202.  Section 32258 of the Revenue and Taxation Code is
amended to read:
   32258.  (a) Under regulations prescribed by the board, if:
   (1) A tax liability under this part was understated by a failure
to file a return required to be filed under this part, by the
omission of an amount properly includable therein, or by erroneous
deductions or credits claimed on a return, and the understatement of
tax liability is attributable to one spouse; or any amount of the tax
reported on a return was unpaid and the nonpayment of the reported
tax liability is attributable to one spouse.
   (2) The other spouse establishes that he or she did not know of,
and had no reason to know of, that understatement or nonpayment.
   (3) Taking into account whether the other spouse significantly
benefited directly or indirectly from the understatement or the
nonpayment and taking into account all other facts and circumstances,
it is inequitable to hold the other spouse liable for the deficiency
in tax attributable to that understatement or nonpayment, then the
other spouse shall be relieved of liability for tax, including
interest, penalties, and other amounts, to the extent that the
liability is attributable to that understatement or nonpayment of
tax.
   (b) For purposes of this section, the determination of the spouse
to whom items of understatement or nonpayment are attributable shall
be made without regard to community property laws.
   (c) This section shall apply to all calendar months, quarters, or
years subject to this part, but shall not apply to a calendar month,
quarter, or year that is more than five years from the final date on
the board-issued determination, five years from the return due date
for nonpayment on a return, or one year from the first contact with
the spouse making a claim under this section; or that has been closed
by res judicata, whichever is later.
   (d) For purposes of paragraph (2) of subdivision (a), "reason to
know" means whether a reasonably prudent person would have had reason
to know of the understatement or nonpayment.
   (e) For purposes of this section, with respect to a failure to
file a return or an omission of an item from the return,
"attributable to one spouse" may be determined by whether a spouse
rendered substantial service as a manufacturer, winegrower, importer,
or seller of beer or wine, or as a manufacturer, distilled spirits
manufacturer's agent, brandy manufacturer, rectifier, wholesaler, or
seller of distilled spirits to which the understatement is
attributable. If neither spouse rendered substantial services as a
manufacturer, winegrower, importer, or seller of beer or wine, or as
a manufacturer, distilled spirits manufacturer's agent, brandy
manufacturer, rectifier, wholesaler, or seller of distilled spirits,
then the attribution of applicable items of understatement shall be
treated as community property. An erroneous deduction or credit shall
be attributable to the spouse who caused that deduction or credit to
be entered on the return.
   (f) Under procedures prescribed by the board, if, taking into
account all the facts and circumstances, it is inequitable to hold
the other spouse liable for an unpaid tax or any deficiency, or any
portion of either, attributable to an item for which relief is not
available under subdivision (a), the board may relieve the other
spouse of that liability.
   (g) For purposes of this section, registered domestic partners, as
defined in Section 297 of the Family Code, have the same rights,
protections, and benefits as provided by this section, and are
subject to the same responsibilities, obligations, and duties as
imposed by this section, as are granted to and imposed upon spouses.
   (h) The relief provided by this section shall apply retroactively
to liabilities arising prior to January 1, 2008.
  SEC. 203.  Section 41007 of the Revenue and Taxation Code is
amended to read:
   41007.  (a) "Service supplier" shall mean a person supplying
intrastate telephone communication services pursuant to California
intrastate tariffs to a service user in this state.
   (b) On and after January 1, 1988, "service supplier" also includes
a person supplying intrastate telephone communication services for
whom the Public Utilities Commission, by rule or order, modifies or
eliminates the requirement for that person to prepare and file
California intrastate tariffs.
  SEC. 204.  Section 41011 of the Revenue and Taxation Code is
amended to read:
   41011.  (a) "Charges for services" means all charges billed by a
service supplier to a service user for intrastate telephone
communication services and shall mean local telephone service and
include monthly service flat-rate charges for usage, message unit
charges and shall mean toll charges, and include intra-state-wide
area telephone service charges. "Charges for services" shall not
include a tax imposed by the United States or by any charter city,
charges for service paid by inserting coins in a public coin-operated
telephone, and shall not apply to amounts billed to nonsubscribers
for coin shortages. If a coin-operated telephone service is furnished
for a guarantee or other periodic amount, that amount is subject to
the surcharge imposed by this part.
   (b) "Charges for services" shall not include charges for
intrastate toll calls if bills for those calls originate out of
California.
   (c) "Charges for services" shall not include charges for a
nonrecurring, installation, service connection or one-time charge for
service or directory advertising, and shall not include private
communication service charges, charges for other than communication
service, or a charge made by a hotel or motel for service rendered in
placing calls for its guests regardless of how that hotel or motel
charge is denominated or characterized by an applicable tariff of the
Public Utilities Commission of this state.
   (d) "Charges for services" shall not include charges for basic
exchange line service for lifeline services.
  SEC. 205.  Section 41021 of the Revenue and Taxation Code is
amended to read:
   41021.  (a) A service supplier shall collect the surcharge from
each service user at the time it collects its billings from the
service user, provided that the duty to collect the surcharge from a
service user shall commence with the beginning of the first regular
billing period applicable to that person which starts on or after the
operative date of the surcharge imposed by this part. If the
stations or lines of more than one service supplier are utilized in
furnishing the telephone communication services to the service user,
the service supplier that bills the customer shall collect the
surcharge from the customer.
   (b) Only one payment under this part shall be required with
respect to the surcharge on a service, notwithstanding that the lines
or stations of one or more service suppliers are used in furnishing
that service.
  SEC. 206.  Section 41030 of the Revenue and Taxation Code is
amended to read:
   41030.  The Department of General Services shall determine
annually, on or before October 1, a surcharge rate that it estimates
will produce sufficient revenue to fund the current fiscal year's 911
costs. The surcharge rate shall be determined by dividing the costs,
including incremental costs, the Department of General Services
estimates for the current fiscal year of 911 plans approved pursuant
to Section 53115 of the Government Code, less the available balance
in the State Emergency Telephone Number Account in the General Fund,
by its estimate of the charges for intrastate telephone communication
services to which the surcharge will apply for the period of January
1 to December 31 of the next succeeding calendar year, but in no
event shall the surcharge rate in any year be greater than
three-quarters of 1 percent nor less than one-half of 1 percent.
  SEC. 207.  Section 41099 of the Revenue and Taxation Code is
amended to read:
   41099.  (a) Under regulations prescribed by the board, if:
   (1) A surcharge liability under this part was understated by a
failure to file a return required to be filed under this part, by the
omission of an amount properly includable therein, or by erroneous
deductions or credits claimed on a return, and the understatement of
surcharge liability is attributable to one spouse; or any amount of
the surcharge reported on a return was unpaid and the nonpayment of
the reported surcharge liability is attributable to one spouse.
   (2) The other spouse establishes that he or she did not know of,
and had no reason to know of, that understatement or nonpayment.
   (3) Taking into account whether the other spouse significantly
benefited directly or indirectly from the understatement or the
nonpayment and taking into account all other facts and circumstances,
it is inequitable to hold the other spouse liable for the deficiency
in surcharge attributable to that understatement or nonpayment, then
the other spouse shall be relieved of liability for the surcharge,
including interest, penalties, and other amounts, to the extent that
the liability is attributable to that understatement or nonpayment of
the surcharge.
   (b) For purposes of this section, the determination of the spouse
to whom items of understatement or nonpayment are attributable shall
be made without regard to community property laws.
   (c) This section shall apply to all calendar months, quarters, or
years subject to the provisions of this part, but shall not apply to
a calendar month, quarter, or year that is more than five years from
the final date on the board-issued determination, five years from the
return due date for nonpayment on a return, or one year from the
first contact with the spouse making a claim under this section; or
that has been closed by res judicata, whichever is later.
   (d) For purposes of paragraph (2) of subdivision (a), "reason to
know" means whether a reasonably prudent person would have had reason
to know of the understatement or nonpayment.
   (e) For purposes of this section, with respect to a failure to
file a return or an omission of an item from the return,
"attributable to one spouse" may be determined by whether a spouse
rendered substantial service as a service supplier of intrastate
telephone communication services to service users or as a user of
intrastate telephone communication services to which the
understatement is attributable. If neither spouse rendered
substantial services as a service supplier or as a service user, then
the attribution of applicable items of understatement shall be
treated as community property. An erroneous deduction or credit shall
be attributable to the spouse who
            caused that deduction or credit to be entered on the
return.
   (f) Under procedures prescribed by the board, if, taking into
account all the facts and circumstances, it is inequitable to hold
the other spouse liable for an unpaid surcharge or deficiency, or any
portion of either, attributable to any item for which relief is not
available under subdivision (a), the board may relieve the other
spouse of that liability.
   (g) For purposes of this section, registered domestic partners, as
defined in Section 297 of the Family Code, have the same rights,
protections, and benefits as provided by this section, and are
subject to the same responsibilities, obligations, and duties as
imposed by this section, as are granted to and imposed upon spouses.
   (h) The relief provided by this section shall apply retroactively
to liabilities arising prior to January 1, 2008.
  SEC. 208.  Section 118 of the Streets and Highways Code is amended
to read:
   118.  (a) If the department determines that real property or an
interest therein, previously or hereafter acquired by the state for
highway purposes, is no longer necessary for those purposes, the
department may sell, contract to sell, sell by trust deed, or
exchange the real property or interest therein in the manner and upon
terms, standards, and conditions established by the commission. The
payment period in a contract of sale or sale by trust deed shall not
extend longer than 10 years from the time the contract of sale or
trust deed is executed, and a transaction involving a contract of
sale or sale by trust deed to private parties shall require a
downpayment of at least 30 percent of the purchase price, except as
follows:
   (1) For improved and unimproved real property sold or exchanged
for the purpose of housing for persons and families of low or
moderate income, as defined in Section 50093 of the Health and Safety
Code, the payment period shall not exceed 40 years and the
downpayment shall be at least 5 percent of the purchase price. All
contracts of sale or sales by trust deed, for the purpose of housing
for persons and families of low or moderate income shall bear
interest. The rate of interest for the contract or sale shall be
computed annually, and shall be the same as the average rate returned
by the Pooled Money Investment Board for the past five fiscal years
immediately preceding the year in which the payment is made. The
contract of sale and sales by trust deeds shall not be utilized if
the proposed development or sale qualifies for financing from other
sources and if the financing makes feasible the provision of low- and
moderate-income housing.
   (2) Improved residential property sold to a local public agency
pursuant to paragraph (1), if subsequently sold or transferred to a
nonprofit housing organization, shall have the endorsement of the
city in which the parcels are located, or the county if the parcels
are located in an unincorporated area, that the housing shall remain
at affordable housing costs to persons and families of low or
moderate income and very low income households for the longest
feasible time, but for not less than 15 years, as determined by the
city or county, as applicable. By endorsing the sale, the city or
county accepts the responsibility of ensuring the housing remains
affordable. The local public agency shall record in the office of the
county recorder covenants or restrictions implementing this
subdivision. Notwithstanding any other provision of law, the
covenants or restrictions shall run with the land and shall be
enforceable against the original purchaser from the department and
successors in interest.
   (b) A conveyance under this section shall be approved by the
commission and shall be executed on behalf of the state by the
director and the purchase price shall be paid into the State Treasury
to the credit of any fund, available to the department for highway
purposes, which the commission designates.
   (c) Any such real property or interest therein may in like manner
be exchanged, either as whole or part consideration, for any other
real property or interest therein needed for state highway purposes.
  SEC. 209.  Section 464 of the Streets and Highways Code is amended
to read:
   464.  (a) Route 164 is Rosemead Boulevard from:
   (1) Gallatin Road near Pico Rivera to the northern city limit of
Temple City in the vicinity of Callita Street and Sultana Avenue.
   (2) The northern city limit of Temple City in the vicinity of
Callita Street and Sultana Avenue to the southern city limit of the
City of Pasadena.
   (b) (1) Notwithstanding subdivision (a), the commission may
relinquish to the County of Los Angeles that portion of Route 164
described in paragraph (2) of subdivision (a), pursuant to the terms
of a cooperative agreement between the county and the department,
upon a determination by the commission that the relinquishment is in
the best interests of the state.
   (2) A relinquishment under this subdivision shall become effective
immediately following the recordation by the county recorder of the
relinquishment resolution containing the commission's approval of the
terms and conditions of the relinquishment.
   (3) On and after the effective date of the relinquishment, both of
the following shall apply:
   (A) The portion of Route 164 relinquished under this subdivision
shall cease to be a state highway.
   (B) The portion of Route 164 relinquished under this subdivision
shall not be considered for future adoption under Section 81.
   (4) For the portion of Route 164 that is relinquished under this
subdivision, the County of Los Angeles shall maintain within its
jurisdiction signs directing motorists to the continuation of Route
164.
   (c) (1) Notwithstanding subdivision (a), the commission may
relinquish to the City of Temple City the portion of Route 164
located within the city limits of that city pursuant to the terms of
a cooperative agreement between the city and the department, upon a
determination by the commission that the relinquishment is in the
best interests of the state.
   (2) A relinquishment under this subdivision shall become effective
immediately following the recordation by the county recorder of the
relinquishment resolution containing the commission's approval of the
terms and conditions of the relinquishment.
   (3) On and after the effective date of the relinquishment, both of
the following shall apply:
   (A) The portion of Route 164 relinquished under this subdivision
shall cease to be a state highway.
   (B) The portion of Route 164 relinquished under this subdivision
shall not be considered for future adoption under Section 81.
   (4) For the portion of Route 164 that is relinquished under this
subdivision, the City of Temple City shall maintain within its
jurisdiction signs directing motorists to the continuation of Route
164.
  SEC. 210.  Section 25440 of the Streets and Highways Code is
amended to read:
   25440.  Funding bonds issued pursuant to the provisions of this
chapter shall be in substantially the following form (filling in
blanks as appropriate):


       FUNDING BOND



      Joint Highway District No. ___ of the State of California


$____   Bond No. ___   Serial ___.
   Under and by virtue of Part 1 (commencing with Section 25000) of
Division 16 of the Streets and Highways Code, the treasurer of Joint
Highway District No. ____ of the State of California will pay to the
bearer, out of the fund hereinafter designated, at the office of the
treasurer of said district, on the ____ day of ____, 20__, the sum of
____ dollars, in lawful money of the United States of America, with
interest thereon in like lawful money at the rate of ____ per cent
per annum, payable semiannually on the second day of January and the
second day of July in each year from the date hereof (except the last
installment thereof, which shall be payable at the maturity of this
bond), upon presentation and surrender, as they respectively become
due, of the proper interest coupons hereto attached, the first of
which is for interest from date hereof to the next date of interest
payment, and the last for interest to maturity hereof from the last
preceding date of interest payment. This bond is issued under and in
conformity with the provisions of Part 1 (commencing with Section
25000) of Division 16 of the Streets and Highways Code, and is one of
a series of bonds of like date and effect numbered from one to ____
consecutively. It is hereby certified, recited, and declared that all
proceedings, acts, and things required by law precedent to or in the
issuance of this bond have been regularly had, done, and performed,
and this bond is by law made conclusive evidence thereof.
   This bond is payable out of the "Joint Highway District No. ____
of the State of California Funding Bond Redemption Fund,"
exclusively, as the same appears upon the books of the treasurer of
that district, and in accordance with the provisions of Part 1
(commencing with Section 25000) of Division 16 of the Streets and
Highways Code special assessment taxes will be levied and collected
upon the lands within Funding District No. ____ in that joint highway
district in an amount clearly sufficient to pay the principal and
interest of the bonds as the bonds become due and payable.
   In witness whereof the board of directors of the district has
caused this bond to be signed by the treasurer of the district
attested by the secretary of the board and the official seal of the
district to be affixed hereto this ____ day of ____, 20__.
  _________________________________________
  (SEAL) Treasurer of Joint Highway District
  No. ___ of the State of California.
  Attest:
  __________________________________________
  Secretary of the Board of Directors.

  SEC. 211.  Section 36622 of the Streets and Highways Code is
amended to read:
   36622.  The management district plan shall contain all of the
following:
   (a) A map of the district in sufficient detail to locate each
parcel of property and, if businesses are to be assessed, each
business within the district.
   (b) The name of the proposed district.
   (c) A description of the boundaries of the district, including the
boundaries of benefit zones, proposed for establishment or extension
in a manner sufficient to identify the affected lands and businesses
included. The boundaries of a proposed property assessment district
shall not overlap with the boundaries of another existing property
assessment district created pursuant to this part. This part does not
prohibit the boundaries of a district created pursuant to this part
to overlap with other assessment districts established pursuant to
other provisions of law, including, but not limited to, the Parking
and Business Improvement Area Law of 1989 (Part 6 (commencing with
Section 36500)). This part does not prohibit the boundaries of a
business assessment district created pursuant to this part to overlap
with another business assessment district created pursuant to this
part. This part does not prohibit the boundaries of a business
assessment district created pursuant to this part to overlap with a
property assessment district created pursuant to this part.
   (d) The improvements and activities proposed for each year of
operation of the district and the maximum cost thereof.
   (e) The total annual amount proposed to be expended for
improvements, maintenance and operations, and debt service in each
year of operation of the district.
   (f) The proposed source or sources of financing, including the
proposed method and basis of levying the assessment in sufficient
detail to allow each property or business owner to calculate the
amount of the assessment to be levied against his or her property or
business. The plan also shall state whether bonds will be issued to
finance improvements.
   (g) The time and manner of collecting the assessments.
   (h) The specific number of years in which assessments will be
levied. In a new district, the maximum number of years shall be five.
Upon renewal, a district shall have a term not to exceed 10 years.
Notwithstanding these limitations, a district created pursuant to
this part to finance capital improvements with bonds may levy
assessments until the maximum maturity of the bonds. The management
district plan may set forth specific increases in assessments for
each year of operation of the district.
   (i) The proposed time for implementation and completion of the
management district plan.
   (j) Any proposed rules and regulations to be applicable to the
district.
   (k) A list of the properties or businesses to be assessed,
including the assessor's parcel numbers for properties to be
assessed, and a statement of the method or methods by which the
expenses of a district will be imposed upon benefited real property
or businesses, in proportion to the benefit received by the property
or business, to defray the cost thereof, including operation and
maintenance. The plan may provide that all or any class or category
of real property which is exempt by law from real property taxation
may nevertheless be included within the boundaries of the district
but shall not be subject to assessment on real property.
   () Any other item or matter required to be incorporated therein by
the city council.
  SEC. 212.  Section 2739 of the Unemployment Insurance Code is
amended to read:
   2739.  The Director of Employment Development, subject to this
article, may do any or all of the following in the recovery of
overpayments of disability benefits:
   (a) File a civil action against the liable person for the recovery
of the amount of the overpayment within one year after any of the
following, or, in cases where the individual has been overpaid
benefits due to fraud, misrepresentation, or nondisclosure as
described in Section 2735.1, within three years of any of the
following:
   (1) The mailing or personal service of the notice of overpayment
determination if the person affected does not file an appeal to an
administrative law judge.
   (2) The mailing of the decision of the administrative law judge if
the person affected does not initiate a further appeal to the
appeals board.
   (3) The date of the decision of the appeals board.
   (b) Initiate proceedings for a summary judgment against the liable
person. However, this subdivision applies only where the director
has found, pursuant to Section 2735, that the overpayment shall not
be waived because it was due to fraud, misrepresentation, or willful
nondisclosure on the part of the recipient. The director may, not
later than three years after the overpayment became final, file with
the clerk of the proper court in the county in which the claimant
resides, a certificate containing all of the following:
   (1) The amount due, including the assessment made under Section
2735.1, plus interest from the date that the initial determination of
overpayment was made pursuant to Section 2735.
   (2) A statement that the director has complied with all of the
provisions of this article prior to the filing of the certificate.
   (3) A request that judgment be entered against the liable person
in the amount set forth in the certificate.
   The clerk, immediately upon filing of the certificate, shall enter
a judgment for the State of California against the liable person in
the amount set forth in the certificate.
   For purposes of this subdivision only, an overpayment is final and
due and payable after one of the following:
   (A) The liable person has not filed an appeal pursuant to Section
2737.
   (B) The liable person has filed an appeal to an administrative law
judge and a decision of the administrative law judge upholding the
overpayment has become final.
   (C) The liable person has filed an appeal to the appeals board and
the decision of the appeals board upholding the overpayment has
become final because the liable person has not sought judicial review
within the six-month period provided by Section 410.
   (c) Reduce or vacate a summary judgment by filing a certificate to
that effect with the clerk of the proper court.
   (d) Offset the amount of the overpayment received by the liable
person against any amount of disability benefits to which he or she
may become entitled under this division within six years of the date
of mailing or personal service of the notice of overpayment
determination.
  SEC. 213.  Section 1803 of the Vehicle Code, as amended by Chapter
747 of the Statutes of 2007, is amended to read:
   1803.  (a) (1) The clerk of a court in which a person was
convicted of a violation of this code, was convicted of a violation
of subdivision (a), (b), (c), (d), (e), or (f) of Section 655 of the
Harbors and Navigation Code pertaining to a mechanically propelled
vessel but not to manipulating any water skis, an aquaplane, or
similar device, was convicted of a violation of Section 655.2, 655.6,
658, or 658.5 of the Harbors and Navigation Code, or a violation of
subdivision (a) of Section 192.5 of the Penal Code, was convicted of
an offense involving use or possession of controlled substances under
Division 10 (commencing with Section 11000) of the Health and Safety
Code, was convicted of a felony offense when a commercial motor
vehicle, as defined in subdivision (b) of Section 15210, was involved
in or incidental to the commission of the offense, or was convicted
of a violation of any other statute relating to the safe operation of
vehicles, shall prepare within 10 days after conviction and
immediately forward to the department at its office in Sacramento an
abstract of the record of the court covering the case in which the
person was so convicted. If sentencing is not pronounced in
conjunction with the conviction, the abstract shall be forwarded to
the department within 10 days after sentencing and the abstract shall
be certified by the person required to prepare it to be true and
correct.
   (2) For purposes of this section, a forfeiture of bail shall be
equivalent to a conviction.
   (b) The following violations are not required to be reported under
subdivision (a):
   (1) Division 3.5 (commencing with Section 9840).
   (2) Section 21113, with respect to parking violations.
   (3) Chapter 9 (commencing with Section 22500) of Division 11,
except Section 22526.
   (4) Division 12 (commencing with Section 24000), except Sections
24002, 24004, 24250, 24409, 24604, 24800, 25103, 26707, 27151, 27315,
27360, 27800, and 27801 and Chapter 3 (commencing with Section
26301).
   (5) Division 15 (commencing with Section 35000), except Chapter 5
(commencing with Section 35550).
   (6) Violations for which a person was cited as a pedestrian or
while operating a bicycle or a motorized scooter.
   (7) Division 16.5 (commencing with Section 38000), except Section
38301.3.
   (8) Subdivision (b) of Section 23221, subdivision (b) of Section
23223, subdivision (b) of Section 23225, and subdivision (b) of
Section 23226.
   (c) If the court impounds a license, or orders a person to limit
his or her driving pursuant to subdivision (d) of Section 40508, the
court shall notify the department concerning the impoundment or
limitation on an abstract prepared pursuant to subdivision (a) of
this section or on a separate abstract, that shall be prepared within
10 days after the impoundment or limitation was ordered and
immediately forwarded to the department at its office in Sacramento.
   (d) If the court determines that a prior judgment of conviction of
a violation of Section 23152 or 23153 is valid or is invalid on
constitutional grounds pursuant to Section 41403, the clerk of the
court in which the determination is made shall prepare an abstract of
that determination and forward it to the department in the same
manner as an abstract of record pursuant to subdivision (a).
   (e) Within 10 days of an order terminating or revoking probation
under Section 23602, the clerk of the court in which the order
terminating or revoking probation was entered shall prepare and
immediately forward to the department at its office in Sacramento an
abstract of the record of the court order terminating or revoking
probation and any other order of the court to the department required
by law.
   (f) This section shall remain in effect only until October 1,
2008, and as of that date is repealed, unless a later enacted
statute, that is enacted before October 1, 2008, deletes or extends
that date.
  SEC. 214.  Section 2430.1 of the Vehicle Code is amended to read:
   2430.1.  As used in this article, each of the following terms has
the following meaning:
   (a) "Tow truck driver" means a person who operates a tow truck,
who renders towing service or emergency road service to motorists
while involved in freeway service patrol operations, pursuant to an
agreement with a regional or local entity, and who has or will have
direct and personal contact with the individuals being transported or
assisted. As used in this subdivision, "towing service" has the same
meaning as defined in Section 2436.
   (b) "Employer" means a person or organization that employs those
persons defined in subdivision (a), or who is an owner-operator who
performs the activity specified in subdivision (a), and who is
involved in freeway service patrol operations pursuant to an
agreement or contract with a regional or local entity.
   (c) "Regional or local entity" means a public organization
established as a public transportation planning entity pursuant to
Title 7.1 (commencing with Section 66500) of the Government Code or
authorized to impose a transaction and use tax for transportation
purposes by the Public Utilities Code or the service authority for
freeway emergencies described in Section 2551 of the Streets and
Highways Code.
   (d) "Emergency road service" has the same meaning as defined in
Section 2436.
   (e) "Freeway service patrol" has the same meaning as defined in
Section 2561 of the Streets and Highways Code.
  SEC. 215.  Section 4766 of the Vehicle Code is amended to read:
   4766.  (a) Except as provided in subdivisions (b) and (c), the
department shall refuse to renew the registration of a vehicle for
which a notice of noncompliance has been transmitted to the
department pursuant to subdivision (a) of Section 40002.1 if no
certificate of adjudication has been received by the department
pursuant to subdivision (b) of that section. The department shall
include on each potential registration card issued for use at the
time of renewal, or on an accompanying document, an itemization of
citations for which notices of noncompliance have been received by
the department pursuant to subdivision (a) of Section 40002.1. The
itemization shall include the citation number, citation date, and the
jurisdiction that issued the underlying notice pursuant to Section
40002 and the administrative service fee for clearing the offense
pursuant to subdivision (b) of this section.
   (b) Upon application for renewal of vehicle registration for a
vehicle subject to subdivision (a), the department shall not refuse
registration renewal pursuant to subdivision (a) if the applicant,
with respect to each outstanding certificate of noncompliance, has
performed both of the following:
   (1) Provides the department with a certificate of adjudication for
the offense issued pursuant to subdivision (b) of Section 40002.1.
   (2) Pays an administrative service fee, which shall be established
by the department to, in the aggregate, defray its costs in
administering this section.
   (c) Whenever registration of a vehicle subject to subdivision (a)
is transferred or not renewed for two renewal periods, the department
shall notify each court that transmitted a notice of noncompliance
affecting the vehicle of the transfer of, or lack of renewal of, the
registration and the department shall not thereafter refuse
registration renewal pursuant to subdivision (a).
  SEC. 216.  Section 5004.1 of the Vehicle Code, as amended by
Section 1 of Chapter 497 of the Statutes of 2007, is amended to read:

   5004.1.  (a) (1) An owner of a vehicle that is a 1969 or older
model-year vehicle or the owner of a commercial vehicle or a pickup
truck that is a 1972 or older model-year may, after the requirements
for the registration of the vehicle are complied with and with the
approval of the department, utilize license plates of this state with
the date of year corresponding to the model-year date when the
vehicle was manufactured, if the model-year date license plate is
legible and serviceable, as determined by the department, in lieu of
the license plates otherwise required by this code.
   (2) The department may consult with an organization of old car
hobbyists in determining whether the date of year of the license
plate corresponds to the model-year date when the vehicle was
manufactured.
   (b) A fee of forty-five dollars ($45) shall be charged for the
application for the use of the special plates.
   (c) In addition to the regular renewal fee for the vehicle for
which the plates are authorized, the applicant for a renewal of the
plates shall be charged an additional fee of ten dollars ($10). If
payment of a regular vehicle renewal fee is not required by this
code, the holder of license plates with a date corresponding to the
model-year may retain the plates upon payment of an annual fee of
twenty dollars ($20) that shall be due at the expiration of the
registration year of the vehicle to which the plates were last
assigned under this section.
   (d) If a person who is authorized to utilize the special license
plates applies to the department for transfer of the plates to
another vehicle, a transfer fee of twelve dollars ($12) shall be
charged in addition to all other appropriate fees.
  SEC. 217.  Section 9853.6 of the Vehicle Code is amended to read:
   9853.6.  (a) (1) Beginning July 1, 2008, the fee described in
paragraph (1) of subdivision (b) of Section 9853 shall be increased
by ten dollars ($10).
   (2) Five dollars ($5) of the increase shall be deposited into the
Alternative and Renewable Fuel and Vehicle Technology Fund created by
Section 44273 of the Health and Safety Code and five dollars ($5)
shall be deposited into the Air Quality Improvement Fund created by
Section 44274.5 of the Health and Safety Code.
   (b) (1) Beginning July 1, 2008, the fee described in paragraph (2)
of subdivision (b) of Section 9853 shall be increased by twenty
dollars ($20).
   (2) Ten dollars ($10) of the increase shall be deposited into the
Alternative and Renewable Fuel and Vehicle Technology Fund created by
Section 44273 of the Health and Safety Code and ten dollars ($10)
shall be deposited into the Air Quality Improvement Fund created by
Section 44274.5 of the Health and Safety Code.
                                     (c) This section shall remain in
effect only until January 1, 2016, and as of that date is repealed,
unless a later enacted statute, that is enacted before January 1,
2016, deletes or extends that date.
  SEC. 218.  Section 11410 of the Vehicle Code is amended to read:
   11410.  (a) Every license issued under this chapter is valid for a
period of one year from the last day of the month of issuance.
Except as provided in subdivision (c), renewal of the license for the
ensuing year may be obtained by the person to whom the license was
issued upon application to the department and payment of the fee
required by Section 11409.
   (b) An application for the renewal of a license shall be made by
the licensee not more than 90 days prior to the expiration date and
shall be made by presenting the completed application form provided
by the department and by payment of the renewal fee.
   (c) If the application for renewal of the license is not made by
midnight of the expiration date, the application may be made within
30 days following expiration of the license by paying the annual
renewal fee and a penalty fee equal to the amount of the original
application fee for each license held.
   (d) A licensee shall not renew the license after the expiration of
the 30-day period specified in subdivision (c).
  SEC. 219.  Section 13353.2 of the Vehicle Code, as amended by
Section 2 of Chapter 749 of the Statutes of 2007, is amended to read:

   13353.2.  (a) The department shall immediately suspend the
privilege of a person to operate a motor vehicle for any one of the
following reasons:
   (1) The person was driving a motor vehicle when the person had
0.08 percent or more, by weight, of alcohol in his or her blood.
   (2) The person was under 21 years of age and had a blood-alcohol
concentration of 0.01 percent or greater, as measured by a
preliminary alcohol screening test, or other chemical test.
   (3) The person was driving a vehicle that requires a commercial
driver's license when the person had 0.04 percent or more, by weight,
of alcohol in his or her blood.
   (4) The person was driving a motor vehicle when both of the
following applied:
   (A) The person was on probation for a violation of Section 23152
or 23153.
   (B) The person had 0.01 percent or more, by weight, of alcohol in
his or her blood, as measured by a preliminary alcohol screening test
or other chemical test.
   (b) The notice of the order of suspension under this section shall
be served on the person by a peace officer pursuant to Section 13382
or 13388. The notice of the order of suspension shall be on a form
provided by the department. If the notice of the order of suspension
has not been served upon the person by the peace officer pursuant to
Section 13382 or 13388, upon the receipt of the report of a peace
officer submitted pursuant to Section 13380, the department shall
mail written notice of the order of the suspension to the person at
the last known address shown on the department's records and, if the
address of the person provided by the peace officer's report differs
from the address of record, to that address.
   (c) The notice of the order of suspension shall specify clearly
the reason and statutory grounds for the suspension, the effective
date of the suspension, the right of the person to request an
administrative hearing, the procedure for requesting an
administrative hearing, and the date by which a request for an
administrative hearing shall be made in order to receive a
determination prior to the effective date of the suspension.
   (d) The department shall make a determination of the facts in
subdivision (a) on the basis of the report of a peace officer
submitted pursuant to Section 13380. The determination of the facts,
after administrative review pursuant to Section 13557, by the
department is final, unless an administrative hearing is held
pursuant to Section 13558 and any judicial review of the
administrative determination after the hearing pursuant to Section
13559 is final.
   (e) The determination of the facts in subdivision (a) is a civil
matter that is independent of the determination of the person's guilt
or innocence, shall have no collateral estoppel effect on a
subsequent criminal prosecution, and shall not preclude the
litigation of the same or similar facts in the criminal proceeding.
If a person is acquitted of criminal charges relating to a
determination of facts under subdivision (a), or if the person's
driver's license was suspended pursuant to Section 13388 and the
department finds no basis for a suspension pursuant to that section,
the department shall immediately reinstate the person's privilege to
operate a motor vehicle if the department has suspended it
administratively pursuant to subdivision (a), and the department
shall return or reissue for the remaining term any driver's license
that has been taken from the person pursuant to Section 13382 or
otherwise. Notwithstanding subdivision (b) of Section 13558, if
criminal charges under Section 23140, 23152, or 23153 are not filed
by the district attorney because of a lack of evidence, or if those
charges are filed but are subsequently dismissed by the court because
of an insufficiency of evidence, the person has a renewed right to
request an administrative hearing before the department. The request
for a hearing shall be made within one year from the date of arrest.
   (f) The department shall furnish a form that requires a detailed
explanation specifying which evidence was defective or lacking and
detailing why that evidence was defective or lacking. The form shall
be made available to the person to provide to the district attorney.
The department shall hold an administrative hearing, and the hearing
officer shall consider the reasons for the failure to prosecute given
by the district attorney on the form provided by the department. If
applicable, the hearing officer shall consider the reasons stated on
the record by a judge who dismisses the charges. A fee shall not be
imposed pursuant to Section 14905 for the return or reissuing of a
driver's license pursuant to this subdivision. The disposition of a
suspension action under this section does not affect an action to
suspend or revoke the person's privilege to operate a motor vehicle
under another provision of this code, including, but not limited to,
Section 13352 or 13353, or Chapter 3 (commencing with Section 13800).

  SEC. 220.  Section 21251 of the Vehicle Code is amended to read:
   21251.  Except as provided in Chapter 7 (commencing with Section
1963) and Chapter 8 (commencing with Section 1965) of Division 2.5 of
the Streets and Highways Code, and Sections 4023, 21115, and
21115.1, a low-speed vehicle is subject to all the provisions
applicable to a motor vehicle, and the driver of a low-speed vehicle
is subject to all the provisions applicable to the driver of a motor
vehicle or other vehicle, when applicable, by this code or another
code, with the exception of those provisions that, by their very
nature, can have no application.
  SEC. 221.  Section 22511.85 of the Vehicle Code is amended to read:

   22511.85.  A vehicle, identified with a special license plate
issued pursuant to Section 5007 or a distinguishing placard issued
pursuant to Section 22511.55 or 22511.59, which is equipped with a
lift, ramp, or assistive equipment that is used for the loading and
unloading of a person with a disability may park in not more than two
adjacent stalls or spaces on a street or highway or in a public or
private off-street parking facility if the equipment has been or will
be used for loading or unloading a person with a disability, and if
there is no single parking space immediately available on the street
or highway or within the facility that is suitable for that purpose,
including, but not limited to, when there is not sufficient space to
operate a vehicle lift, ramp, or assistive equipment, or there is not
sufficient room for a person with a disability to exit the vehicle
or maneuver once outside the vehicle.
  SEC. 222.  Section 24617 of the Vehicle Code is amended to read:
   24617.  (a) A transit bus may be authorized to be equipped with a
yield right-of-way sign on the left rear of the bus. The yield
right-of-way sign may flash simultaneously with the rear turn signal
lamps, but is not required to do so. The sign shall be both of the
following:
   (1) Designed to warn a person operating a motor vehicle
approaching the rear of the bus that the bus is entering traffic.
   (2) Illuminated by a red flashing light when the bus is signaling
in preparation for entering a traffic lane after having stopped to
receive or discharge passengers.
   (b) This section does not require a transit agency to install the
yield right-of-way sign described in subdivision (a).
   (c) This section does not relieve the driver of a transit bus from
the duty to drive the bus with due regard for the safety of all
persons and property. This section does not exempt the driver of a
transit bus from Section 21804.
   (d) This section applies only to the Santa Cruz Metropolitan
Transit District and the Santa Clara Valley Transportation Authority,
if the governing board of the applicable entity approves a
resolution, after a public hearing on the issue, requesting that this
section be made applicable to it.
   (e) A participating transit agency shall undertake a public
education program to encourage motorists to yield to a transit bus
when the sign specified in subdivision (a) is activated.
  SEC. 223.  Section 27315 of the Vehicle Code is amended to read:
   27315.  (a) The Legislature finds that a mandatory seatbelt law
will contribute to reducing highway deaths and injuries by
encouraging greater usage of existing manual seatbelts, that
automatic crash protection systems which require no action by vehicle
occupants offer the best hope of reducing deaths and injuries, and
that encouraging the use of manual safety belts is only a partial
remedy for addressing this major cause of death and injury. The
Legislature declares that the enactment of this section is intended
to be compatible with support for federal safety standards requiring
automatic crash protection systems and should not be used in any
manner to rescind federal requirements for installation of automatic
restraints in new cars.
   (b) This section shall be known and may be cited as the Motor
Vehicle Safety Act.
   (c) (1) As used in this section, "motor vehicle" means a passenger
vehicle, a motortruck, or a truck tractor, but does not include a
motorcycle.
   (2) For purposes of this section, a "motor vehicle" also means a
farm labor vehicle, regardless of the date of certification under
Section 31401.
   (d) (1) A person shall not operate a motor vehicle on a highway
unless that person and all passengers 16 years of age or over are
properly restrained by a safety belt. This paragraph does not apply
to the operator of a taxicab, as defined in Section 27908, when the
taxicab is driven on a city street and is engaged in the
transportation of a fare-paying passenger. The safety belt
requirement established by this paragraph is the minimum safety
standard applicable to employees being transported in a motor
vehicle. This paragraph does not preempt more stringent or
restrictive standards imposed by the Labor Code or another state or
federal regulation regarding the transportation of employees in a
motor vehicle.
   (2) The operator of a limousine for hire or the operator of an
authorized emergency vehicle, as defined in subdivision (a) of
Section 165, shall not operate the limousine for hire or authorized
emergency vehicle unless the operator and any passengers six years of
age or over or weighing 60 pounds or more in the front seat are
properly restrained by a safety belt.
   (3) The operator of a taxicab shall not operate the taxicab unless
any passengers six years of age or over or weighing 60 pounds or
more in the front seat are properly restrained by a safety belt.
   (e) A person 16 years of age or over shall not be a passenger in a
motor vehicle on a highway unless that person is properly restrained
by a safety belt. This subdivision does not apply to a passenger in
a sleeper berth, as defined in subdivision (x) of Section 1201 of
Title 13 of the California Code of Regulations.
   (f) An owner of a motor vehicle, including an owner or operator of
a taxicab, as defined in Section 27908, or a limousine for hire,
operated on a highway shall maintain safety belts in good working
order for the use of occupants of the vehicle. The safety belts shall
conform to motor vehicle safety standards established by the United
States Department of Transportation. This subdivision, however, does
not require installation or maintenance of safety belts if not
required by the laws of the United States applicable to the vehicle
at the time of its initial sale.
   (g) This section does not apply to a passenger or operator with a
physically disabling condition or medical condition that would
prevent appropriate restraint in a safety belt, if the condition is
duly certified by a licensed physician and surgeon or by a licensed
chiropractor who shall state the nature of the condition, as well as
the reason the restraint is inappropriate. This section also does not
apply to a public employee, when in an authorized emergency vehicle
as defined in paragraph (1) of subdivision (b) of Section 165, or to
a passenger in a seat behind the front seat of an authorized
emergency vehicle as defined in paragraph (1) of subdivision (b) of
Section 165 operated by the public employee, unless required by the
agency employing the public employee.
   (h) Notwithstanding subdivision (a) of Section 42001, a violation
of subdivision (d), (e), or (f) is an infraction punishable by a fine
of not more than twenty dollars ($20) for a first offense, and a
fine of not more than fifty dollars ($50) for each subsequent
offense. In lieu of the fine and any penalty assessment or court
costs, the court, pursuant to Section 42005, may order that a person
convicted of a first offense attend a school for traffic violators or
another court-approved program in which the proper use of safety
belts is demonstrated.
   (i) In a civil action, a violation of subdivision (d), (e), or (f)
or information of a violation of subdivision (h) does not establish
negligence as a matter of law or negligence per se for comparative
fault purposes, but negligence may be proven as a fact without regard
to the violation.
   (j) If the United States Secretary of Transportation fails to
adopt safety standards for manual safety belt systems by September 1,
1989, a motor vehicle manufactured after that date for sale or sold
in this state shall not be registered unless it contains a manual
safety belt system that meets the performance standards applicable to
automatic crash protection devices adopted by the United States
Secretary of Transportation pursuant to Federal Motor Vehicle Safety
Standard No. 208 (49 C.F.R. 571.208) as in effect on January 1, 1985.

   (k) A motor vehicle offered for original sale in this state which
has been manufactured on or after September 1, 1989, shall comply
with the automatic restraint requirements of Section S4.1.2.1 of
Federal Motor Vehicle Safety Standard No. 208 (49 C.F.R. 571.208), as
published in Volume 49 of the Federal Register, No. 138, page 29009.
An automobile manufacturer that sells or delivers a motor vehicle
subject to this subdivision, and fails to comply with this
subdivision, shall be punished by a fine of not more than five
hundred dollars ($500) for each sale or delivery of a noncomplying
motor vehicle.
   () Compliance with subdivision (j) or (k) by a manufacturer shall
be made by self-certification in the same manner as
self-certification is accomplished under federal law.
   (m) This section does not apply to a person actually engaged in
delivery of newspapers to customers along the person's route if the
person is properly restrained by a safety belt prior to commencing
and subsequent to completing delivery on the route.
   (n) This section does not apply to a person actually engaged in
collection and delivery activities as a rural delivery carrier for
the United States Postal Service if the person is properly restrained
by a safety belt prior to stopping at the first box and subsequent
to stopping at the last box on the route.
   (o) This section does not apply to a driver actually engaged in
the collection of solid waste or recyclable materials along that
driver's collection route if the driver is properly restrained by a
safety belt prior to commencing and subsequent to completing the
collection route.
   (p) Subdivisions (d), (e), (f), (g), and (h) shall become
inoperative immediately upon the date that the United States
Secretary of Transportation, or his or her delegate, determines to
rescind the portion of the Federal Motor Vehicle Safety Standard No.
208 (49 C.F.R. 571.208) which requires the installation of automatic
restraints in new motor vehicles, except that those subdivisions
shall not become inoperative if the secretary's decision to rescind
that Standard No. 208 is not based, in any respect, on the enactment
or continued operation of those subdivisions.
  SEC. 224.  Section 40002 of the Vehicle Code is amended to read:
   40002.  (a) (1) If there is a violation of Section 40001, an owner
or other person subject to Section 40001, who was not driving the
vehicle involved in the violation, may be mailed a written notice to
appear. An exact and legible duplicate copy of that notice when filed
with the court, in lieu of a verified complaint, is a complaint to
which the defendant may plead "guilty."
   (2) If, however, the defendant fails to appear in court or does
not deposit lawful bail, or pleads other than "guilty" of the offense
charged, a verified complaint shall be filed which shall be deemed
to be an original complaint, and thereafter proceedings shall be had
as provided by law, except that a defendant may, by an agreement in
writing, subscribed by the defendant and filed with the court, waive
the filing of a verified complaint and elect that the prosecution may
proceed upon a written notice to appear.
   (3) A verified complaint pursuant to paragraph (2) shall include a
paragraph that informs the person that unless he or she appears in
the court designated in the complaint within 21 days after being
given the complaint and answers the charge, renewal of registration
of the vehicle involved in the offense may be precluded by the
department, or a warrant of arrest may be issued against him or her.
   (b) (1) If a person mailed a notice to appear pursuant to
paragraph (1) of subdivision (a) fails to appear in court or deposit
bail, a warrant of arrest shall not be issued based on the notice to
appear, even if that notice is verified. An arrest warrant may be
issued only after a verified complaint pursuant to paragraph (2) of
subdivision (a) is given the person and the person fails to appear in
court to answer that complaint.
   (2) If a person mailed a notice to appear pursuant to paragraph
(1) of subdivision (a) fails to appear in court or deposit bail, the
court may give by mail to the person a notice of noncompliance. A
notice of noncompliance shall include a paragraph that informs the
person that unless he or she appears in the court designated in the
notice to appear within 21 days after being given by mail the notice
of noncompliance and answers the charge on the notice to appear, or
pays the applicable fine and penalties if an appearance is not
required, renewal of registration of the vehicle involved in the
offense may be precluded by the department.
   (c) A verified complaint filed pursuant to this section shall
conform to Chapter 2 (commencing with Section 948) of Title 5 of Part
2 of the Penal Code.
   (d) (1) The giving by mail of a notice to appear pursuant to
paragraph (1) of subdivision (a) or a notice of noncompliance
pursuant to paragraph (2) of subdivision (b) shall be done in a
manner prescribed by Section 22.
   (2) The verified complaint pursuant to paragraph (2) of
subdivision (a) shall be given in a manner prescribed by Section 22.
  SEC. 225.  Section 40240 of the Vehicle Code is amended to read:
   40240.  (a) The City and County of San Francisco may install
automated forward facing parking control devices on city-owned public
transit vehicles, as defined by Section 99211 of the Public
Utilities Code, for the purpose of video imaging of parking
violations occurring in transit-only traffic lanes. Citations shall
be issued only for violations captured during the posted hours of
operation for a transit-only traffic lane. The devices shall be
angled and focused so as to capture video images of parking
violations and not unnecessarily capture identifying images of other
drivers, vehicles, and pedestrians.
   (b) Prior to issuing notices of parking violations pursuant to
subdivision (a) of Section 40241, the City and County of San
Francisco shall commence a program to issue only warning notices for
30 days. The City and County of San Francisco shall also make a
public announcement of the program at least 30 days prior to
commencement of issuing notices of parking violations.
   (c) A designated employee of the City and County of San Francisco,
who is qualified by the city and county to issue parking citations,
shall review video image recordings for the purpose of determining
whether a parking violation occurred in a transit-only traffic lane.
A violation of a statute, regulation, or ordinance governing vehicle
parking under this code, under a federal or state statute or
regulation, or under an ordinance enacted by the City and County of
San Francisco occurring in a transit-only traffic lane observed by
the designated employee in the recordings is subject to a civil
penalty.
   (d) The registered owner shall be permitted to review the video
image evidence of the alleged violation during normal business hours
at no cost.
   (e) (1) Except as it may be included in court records described in
Section 68152 of the Government Code, or as provided in paragraph
(2), the video image evidence may be retained for up to six months
from the date the information was first obtained, or 60 days after
final disposition of the citation, whichever date is later, after
which time the information shall be destroyed.
   (2) Notwithstanding Section 26202.6 of the Government Code, video
image evidence from forward facing automated enforcement devices that
does not contain evidence of a parking violation occurring in a
transit-only traffic lane shall be destroyed within 15 days after the
information was first obtained.
   (f) Notwithstanding Section 6253 of the Government Code, or any
other provision of law, the video image records are confidential.
Public agencies shall use and allow access to these records only for
the purposes authorized by this article.
   (g) For purposes of this article, "local agency" means the City
and County of San Francisco.
   (h) For purposes of this article, "transit-only traffic lane"
means any of the designated transit-only lanes that were designated
on or before January 1, 2008, on Beach Street, Bush Street, Clay
Street, First Street, Fourth Street, Fremont Street, Geary Boulevard,
Jefferson Street, Jones Street, Mission Street, Market Street, O'
Farrell Street, Post Street, Potrero Street, Sacramento Street,
Sansome Street, Stockton Street, Sutter Street, and Third Street.
   (i) Video images captured pursuant to this article shall not be
transmitted wirelessly.
  SEC. 226.  Section 8201 of the Water Code is amended to read:
   8201.  (a) A local agency may prepare a local plan of flood
protection in accordance with this chapter.
   (b) A local plan of flood protection shall include all of the
following:
   (1) A strategy to meet the urban level of flood protection,
including planning for residual flood risk and system resiliency.
   (2) Identification of all types of flood hazards.
   (3) Identification and risk assessment of the various facilities
that provide flood protection for flood hazard areas, for current and
future land uses.
   (4) Identification of current and future flood corridors.
   (5) Identification of needed improvements and costs of those
improvements to the flood protection facilities that are necessary to
meet flood protection standards.
   (6) An emergency response and evacuation plan for flood-prone
areas.
   (7) A strategy to achieve multiple benefits, including flood
protection, groundwater recharge, ecosystem health, and reduced
maintenance costs over the long term.
   (8) A long-term funding strategy for improvement and ongoing
maintenance and operation of flood protection facilities.
   (c) A local agency that is not a city or county that prepares a
plan pursuant to this chapter shall consult with the cities and
counties that have jurisdiction over the planning area to ensure that
the local plan of flood protection is consistent with local general
plans.
   (d) Plans prepared pursuant to this chapter, within the
Sacramento-San Joaquin Valley as defined by Section 9602, shall be
consistent with the Central Valley Flood Protection Plan pursuant to
Section 9612.
  SEC. 227.  Section 8610.5 of the Water Code, as added by Section 17
of Chapter 365 of the Statutes of 2007, is repealed.
  SEC. 228.  Section 8610.5 of the Water Code, as added by Section 21
of Chapter 366 of the Statutes of 2007, is amended to read:
   8610.5.  (a) (1) The board shall adopt regulations relating to
evidentiary hearings pursuant to Chapter 4.5 (commencing with Section
11400) of Part 1 of Division 3 of Title 2 of the Government Code.
   (2) The board shall hold an evidentiary hearing for any matter
that requires the issuance of a permit.
   (3) The board is not required to hold an evidentiary hearing
before making a decision relating to general flood protection policy
or planning.
   (b) The board may take an action pursuant to Section 8560 only
after allowing for public comment.
   (c) The board shall, in any evidentiary hearing, consider all of
the following, as applicable, for the purpose of taking any action
pursuant to Section 8560:
   (1) Evidence that the board admits into its record from any party,
state or local public agency, or nongovernmental organization with
expertise in flood or flood plain management.
   (2) The best available science that relates to the scientific
issues presented by the executive officer, legal counsel, the
department, or other parties that raise credible scientific issues.
   (3) Effects of the proposed decision on the entire State Plan of
Flood Control.
   (4) Effects of reasonably projected future events, including, but
not limited to, changes in hydrology, climate, and development within
                                           the applicable watershed.
  SEC. 229.  Section 9602 of the Water Code is amended to read:
   9602.  Unless the context requires otherwise, the definitions set
forth in this section govern the construction of this part.
   (a) "Board" means the Central Valley Flood Protection Board.
   (b) "Plan" means the Central Valley Flood Protection Plan.
   (c) "Project levee" means a levee that is part of the facilities
of the State Plan of Flood Control.
   (d) "Public safety infrastructure" means public safety
infrastructure necessary to respond to a flood emergency, including,
but not limited to, street and highway evacuation routes, public
utilities necessary for public health and safety, including drinking
water and wastewater treatment facilities, and hospitals.
   (e) "Sacramento-San Joaquin Valley" means lands in the bed or
along or near the banks of the Sacramento River or San Joaquin River,
or their tributaries or connected therewith, or upon any land
adjacent thereto, or within the overflow basins thereof, or upon land
susceptible to overflow therefrom. The Sacramento-San Joaquin Valley
does not include lands lying within the Tulare Lake basin, including
the Kings River.
   (f) "State Plan of Flood Control" has the meaning set forth in
subdivision (j) of Section 5096.805 of the Public Resources Code.
   (g) "System" means the Sacramento-San Joaquin River Flood
Management System described in Section 9611.
   (h) "Urban area" has the same meaning as that set forth in
subdivision (k) of Section 5096.805 of the Public Resources Code.
   (i) "Urban level of flood protection" means the level of
protection that is necessary to withstand flooding that has a
1-in-200 chance of occurring in any given year using criteria
consistent with, or developed by, the department.
  SEC. 230.  Section 9610 of the Water Code is amended to read:
   9610.  (a) (1) By July 1, 2008, the department shall develop
preliminary maps for the 100- and 200-year flood plains protected by
project levees. The 100-year flood plain maps shall be prepared using
criteria developed or accepted by the Federal Emergency Management
Agency (FEMA).
   (2) The department shall use available information from the 2002
Sacramento-San Joaquin River Basin Comprehensive Study, preliminary
and regulatory FEMA flood insurance rate maps, recent flood plain
studies, and other sources to compile preliminary maps.
   (3) The department shall provide the preliminary maps to cities
and counties within the Sacramento-San Joaquin Valley for use as best
available information relating to flood protection.
   (4) The department shall post this information on the board's
Internet Web site and may periodically update the maps as necessary.
   (b) By July 1, 2008, the department shall give notice to cities in
the Sacramento-San Joaquin Valley outside areas protected by project
levees regarding maps and other information as to flood risks
available from the Federal Emergency Management Agency or another
federal, state, or local agency.
   (c) On or before December 31, 2010, the department shall prepare a
status report on the progress and development of the Central Valley
Flood Protection Plan pursuant to Section 9612. The department shall
post this information on the board's Internet Web site, and make it
available to the public.
  SEC. 231.  Section 9614 of the Water Code is amended to read:
   9614.  The plan shall include all of the following:
   (a) A description of the Sacramento-San Joaquin River Flood
Management System and the cities and counties included in the system.

   (b) A description of the performance of the system and the
challenges to modifying the system to provide appropriate levels of
flood protection using available information.
   (c) A description of the facilities included in the State Plan of
Flood Control, including all of the following:
   (1) The precise location and a brief description of each facility,
a description of the population and property protected by the
facility, the system benefits provided by the facility, if any, and a
brief history of the facility, including the year of construction,
major improvements to the facility, and any failures of the facility.

   (2) The design capacity of each facility.
   (3) A description and evaluation of the performance of each
facility, including the following:
   (A) An evaluation of failure risks due to each of the following:
   (i) Overtopping.
   (ii) Under seepage and seepage.
   (iii) Structural failure.
   (iv) Other sources of risk, including seismic risks, that the
department or the board determines are applicable.
   (B) A description of any uncertainties regarding performance
capability, including uncertainties arising from the need for
additional engineering evaluations or uncertainties arising from
changed conditions such as changes in estimated channel capacities.
   (d) A description of each existing dam that is not part of the
State Plan of Flood Control that provides either significant
systemwide benefits for managing flood risks within the
Sacramento-San Joaquin Valley or protects urban areas within the
Sacramento-San Joaquin Valley.
   (e) A description of each existing levee and other flood
management facility not described in subdivision (d) that is not part
of the State Plan of Flood Control and that provides either
significant systemwide benefits for managing flood risks within the
Sacramento-San Joaquin Valley or protects an urban area.
   (f) A description of the probable impacts of projected climate
change, projected land use patterns, and other potential flood
management challenges on the ability of the system to provide
adequate levels of flood protection.
   (g) An evaluation of the structural improvements and repairs
necessary to bring each of the facilities of the State Plan of Flood
Control to within its design standard. The evaluation shall include a
prioritized list of recommended actions necessary to bring each
facility not identified in subdivision (h) to within its design
standard.
   (h) The evaluation shall include a list of facilities recommended
to be removed from the State Plan of Flood Control. For each facility
recommended for removal, the evaluation shall identify both of the
following:
   (1) The reasons for proposing the removal of the facility from the
State Plan of Flood Control.
   (2) Any additional recommended actions associated with removing
the facility from the State Plan of Flood Control.
   (i) A description of both structural and nonstructural methods for
providing an urban level of flood protection to current urban areas.
The description shall also include a list of recommended next steps
to improve urban flood protection.
   (j) A description of structural and nonstructural means for
enabling or improving systemwide riverine ecosystem function,
including, but not limited to, establishment of riparian habitat and
seasonal inundation of available flood plains where feasible.
  SEC. 232.  Section 9625 of the Water Code, as added by Section 9 of
Chapter 364 of the Statutes of 2007, is amended to read:
   9625.  (a) By January 1, 2010, the department shall develop
cost-sharing formulas, as needed, for funds made available by the
Disaster Preparedness and Flood Prevention Bond Act of 2006 (Chapter
1.699 (commencing with Section 5096.800) of Division 5 of the Public
Resources Code) and the Safe Drinking Water, Water Quality and
Supply, Flood Control, River and Coastal Protection Bond Act of 2006
(Division 43 (commencing with Section 75001) of the Public Resources
Code) for repairs or improvements of facilities included in the plan
to determine the local share of the cost of design and construction.
   (b) The cost-sharing formulas developed by the department shall be
established pursuant to Section 12585.7.
   (c) In developing a cost-sharing formula, the department shall
consider the ability of local governments to pay their share of the
capital costs of the project.
   (d) Prior to finalizing cost-sharing formulas, the department
shall conduct public meetings to consider public comments. The
department shall post a draft cost-sharing formula on its Internet
Web site at least 30 days before the public meetings. To the extent
feasible, the department shall provide outreach to disadvantaged
communities to promote access and participation in the meetings.
  SEC. 233.  Section 9625 of the Water Code, as added by Section 26
of Chapter 366 of the Statutes of 2007, is amended to read:
   9625.  (a) By January 1, 2010, the department shall develop
cost-sharing formulas, as needed, for funds made available by the
Disaster Preparedness and Flood Prevention Bond Act of 2006 (Chapter
1.699 (commencing with Section 5096.800) of Division 5 of the Public
Resources Code) and the Safe Drinking Water, Water Quality and
Supply, Flood Control, River and Coastal Protection Bond Act of 2006
(Division 43 (commencing with Section 75001) of the Public Resources
Code) for repairs or improvements of facilities included in the plan
to determine the local share of the cost of design and construction.
   (b) For qualifying projects pursuant to subdivision (a), the state'
s share of the nonfederal share shall be set at a minimum level of 50
percent.
   (c) In developing cost-sharing formulas, the department shall
consider the ability of local governments to pay their share of the
capital costs of the project.
   (d) Prior to finalizing cost-sharing formulas, the department
shall conduct public meetings to consider public comments. The
department shall post a draft cost-sharing formula on its Internet
Web site at least 30 days before the public meetings. To the extent
feasible, the department shall provide outreach to disadvantaged
communities to promote access and participation in the meetings.
  SEC. 234.  Section 13478 of the Water Code is amended to read:
   13478.  The board may undertake any of the following:
   (a) Enter into agreements with the federal government for federal
contributions to the fund.
   (b) Accept federal contributions to the fund.
   (c) Enter into an agreement with, and accept matching funds from,
a municipality. A municipality that seeks to enter into an agreement
with the board and provide matching funds pursuant to this
subdivision shall provide to the board evidence of the availability
of those funds in the form of a written resolution adopted by the
governing body of the municipality before it requests a preliminary
loan commitment.
   (d) Use moneys in the fund for the purposes permitted by the
federal act.
   (e) Provide for the deposit of matching funds and other available
and necessary moneys into the fund.
   (f) Make requests on behalf of the state for deposit into the fund
of available federal moneys under the federal act and determine on
behalf of the state appropriate maintenance of progress toward
compliance with the enforceable deadlines, goals, and requirements of
the federal act.
   (g) Determine on behalf of the state that publicly owned treatment
works that receive financial assistance from the fund will meet the
requirements of, and otherwise be treated as required by, the federal
act.
   (h) Provide for appropriate audit, accounting, and fiscal
management services, plans, and reports relative to the fund.
   (i) Take additional incidental action as appropriate for the
adequate administration and operation of the fund.
   (j) Charge municipalities that elect to provide matching funds a
fee to cover the actual cost of obtaining the federal funds pursuant
to Section 603(d)(7) of the federal act (33 U.S.C. Sec. 1383(d)(7))
and processing the loan application. The fee shall be waived by the
board if sufficient funds to cover those costs are available from
other sources.
   (k) Use moneys returned to the fund under clause (ii) of
subparagraph (D) of paragraph (1) of subdivision (b) of Section
13480, and any other source of matching funds, if not prohibited by
statute, as matching funds for the federal administrative allowance
under Section 603(d)(7) of the federal act (33 U.S.C. Sec. 1383(d)
(7)).
   (l) Expend moneys repaid by loan recipients for loan service under
clauses (i) and (ii) of subparagraph (D) of paragraph (1) of
subdivision (b) of Section 13480 to pay administrative costs incurred
by the board under this chapter.
  SEC. 235.  Section 13480 of the Water Code is amended to read:
   13480.  (a) Moneys in the fund shall be used only for the
permissible purposes allowed by the federal act, including providing
financial assistance for the following purposes:
   (1) The construction of publicly owned treatment works, as defined
by Section 212 of the federal act (33 U.S.C. Sec. 1292), by any
municipality.
   (2) Implementation of a management program pursuant to Section 319
of the federal act (33 U.S.C. Sec. 1329).
   (3) Development and implementation of a conservation and
management plan under Section 320 of the federal act (33 U.S.C. Sec.
1330).
   (4) Financial assistance, other than a loan, toward the nonfederal
share of costs of any grant-funded treatment works project, but only
if that assistance is necessary to permit the project to proceed.
   (b) Consistent with expenditure for authorized purposes, moneys in
the fund may be used for the following purposes:
   (1) Loans that meet all of the following requirements:
   (A) Are made at or below market interest rates.
   (B) Require annual payments of principal and any interest, with
repayment commencing not later than one year after completion of the
project for which the loan is made and full amortization not later
than 20 years after project completion.
   (C) Require the loan recipient to establish an acceptable
dedicated source of revenue for repayment of a loan.
   (D) (i) Contain other terms and conditions required by the board
or the federal act or applicable rules, regulations, guidelines, and
policies. To the extent permitted by federal law, the combined
interest and loan service rate shall be set at a rate that does not
exceed 50 percent of the interest rate paid by the state on the most
recent sale of state general obligation bonds and the combined
interest and loan service rate shall be computed according to the
true interest cost method. If the combined interest and loan service
rate so determined is not a multiple of one-tenth of 1 percent, the
combined interest and loan service rate shall be set at the multiple
of one-tenth of 1 percent next above the combined interest and loan
service rate so determined. A loan from the fund used to finance
costs of facilities planning, or the preparation of plans,
specifications, or estimates for construction of publicly owned
treatment works shall comply with Section 603(e) of the federal act
(33 U.S.C. Sec. 1383(e)).
   (ii) Notwithstanding clause (i), if the loan applicant is a
municipality, an applicant for a loan for the implementation of a
management program pursuant to Section 319 of the federal Clean Water
Act (33 U.S.C. Sec. 1329), or an applicant for a loan for nonpoint
source or estuary enhancement pursuant to Section 320 of the federal
Clean Water Act (33 U.S.C. Sec. 1330), and the applicant provides
matching funds, the combined interest and loan service rate on the
loan shall be 0 percent. A loan recipient that returns to the fund an
amount of money equal to 20 percent of the remaining unpaid federal
balance of an existing loan shall have the remaining unpaid loan
balance refinanced at a combined interest and loan service rate of 0
percent over the time remaining in the original loan contract.
   (2) To buy or refinance the debt obligations of municipalities
within the state at or below market rates if those debt obligations
were incurred after March 7, 1985.
   (3) To guarantee, or purchase insurance for, local obligations
where that action would improve credit market access or reduce
interest rates.
   (4) As a source of revenue or security for the payment of
principal and interest on revenue or general obligation bonds issued
by the state, if the proceeds of the sale of those bonds will be
deposited in the fund.
   (5) To establish loan guarantees for similar revolving funds
established by municipalities.
   (6) To earn interest.
   (7) For payment of the reasonable costs of administering the fund
and conducting activities under Title VI (commencing with Section
601) of the federal act (33 U.S.C. Sec. 1381 et seq.). Those costs
shall not exceed 4 percent of all federal contributions to the fund,
except that if permitted by federal and state law, interest
repayments into the fund and other moneys in the fund may be used to
defray additional administrative and activity costs to the extent
permitted by the federal government and approved by the Legislature
in the Budget Act.
   (8) For financial assistance toward the nonfederal share of the
costs of grant-funded treatment works projects to the extent
permitted by the federal act.
  SEC. 236.  Section 707 of the Welfare and Institutions Code is
amended to read:
   707.  (a) (1) In any case in which a minor is alleged to be a
person described in subdivision (a) of Section 602 by reason of the
violation, when he or she was 16 years of age or older, of any
criminal statute or ordinance except those listed in subdivision (b),
upon motion of the petitioner made prior to the attachment of
jeopardy the court shall cause the probation officer to investigate
and submit a report on the behavioral patterns and social history of
the minor being considered for a determination of unfitness.
Following submission and consideration of the report, and of any
other relevant evidence that the petitioner or the minor may wish to
submit, the juvenile court may find that the minor is not a fit and
proper subject to be dealt with under the juvenile court law if it
concludes that the minor would not be amenable to the care,
treatment, and training program available through the facilities of
the juvenile court, based upon an evaluation of the following
criteria:
   (A) The degree of criminal sophistication exhibited by the minor.
   (B) Whether the minor can be rehabilitated prior to the expiration
of the juvenile court's jurisdiction.
   (C) The minor's previous delinquent history.
   (D) Success of previous attempts by the juvenile court to
rehabilitate the minor.
   (E) The circumstances and gravity of the offense alleged in the
petition to have been committed by the minor.
   A determination that the minor is not a fit and proper subject to
be dealt with under the juvenile court law may be based on any one or
a combination of the factors set forth above, which shall be recited
in the order of unfitness. In any case in which a hearing has been
noticed pursuant to this section, the court shall postpone the taking
of a plea to the petition until the conclusion of the fitness
hearing, and no plea that may have been entered already shall
constitute evidence at the hearing.
   (2) (A) This paragraph shall apply to a minor alleged to be a
person described in Section 602 by reason of the violation, when he
or she has attained 16 years of age, of any felony offense when the
minor has been declared to be a ward of the court pursuant to Section
602 on one or more prior occasions if both of the following apply:
   (i) The minor has previously been found to have committed two or
more felony offenses.
   (ii) The offenses upon which the prior petition or petitions were
based were committed when the minor had attained 14 years of age.
   (B) Upon motion of the petitioner made prior to the attachment of
jeopardy the court shall cause the probation officer to investigate
and submit a report on the behavioral patterns and social history of
the minor being considered for a determination of unfitness.
Following submission and consideration of the report, and of any
other relevant evidence that the petitioner or the minor may wish to
submit, the minor shall be presumed to be not a fit and proper
subject to be dealt with under the juvenile court law unless the
juvenile court concludes, based upon evidence, which evidence may be
of extenuating or mitigating circumstances, that the minor would be
amenable to the care, treatment, and training program available
through the facilities of the juvenile court based upon an evaluation
of the following criteria:
   (i) The degree of criminal sophistication exhibited by the minor.
   (ii) Whether the minor can be rehabilitated prior to the
expiration of the juvenile court's jurisdiction.
   (iii) The minor's previous delinquent history.
   (iv) Success of previous attempts by the juvenile court to
rehabilitate the minor.
   (v) The circumstances and gravity of the offense alleged in the
petition to have been committed by the minor.
   A determination that the minor is a fit and proper subject to be
dealt with under the juvenile court law shall be based on a finding
of amenability after consideration of the criteria set forth above,
and findings therefore recited in the order as to each of the above
criteria that the minor is fit and proper under each and every one of
the above criteria. In making a finding of fitness, the court may
consider extenuating and mitigating circumstances in evaluating each
of the above criteria. In any case in which the hearing has been
noticed pursuant to this section, the court shall postpone the taking
of a plea to the petition until the conclusion of the fitness
hearing and no plea which may have been entered already shall
constitute evidence at the hearing. If the minor is found to be a fit
and proper subject to be dealt with under the juvenile court law
pursuant to this subdivision, the minor shall be committed to
placement in a juvenile hall, ranch camp, forestry camp, boot camp,
or secure juvenile home pursuant to Section 730, or in any
institution operated by the Department of Corrections and
Rehabilitation, Division of Juvenile Facilities.
   (3) If, pursuant to this subdivision, the minor is found to be not
a fit and proper subject for juvenile court treatment and is tried
in a court of criminal jurisdiction and found guilty by the trier of
fact, the judge may commit the minor to the Department of Corrections
and Rehabilitation, Division of Juvenile Facilities, in lieu of
sentencing the minor to the state prison, unless the limitations
specified in Section 1732.6 apply.
   (b) Subdivision (c) shall be applicable in any case in which a
minor is alleged to be a person described in Section 602 by reason of
the violation of one of the following offenses:
   (1) Murder.
   (2) Arson, as provided in subdivision (a) or (b) of Section 451 of
the Penal Code.
   (3) Robbery.
   (4) Rape with force, violence, or threat of great bodily harm.
   (5) Sodomy by force, violence, duress, menace, or threat of great
bodily harm.
   (6) A lewd or lascivious act as provided in subdivision (b) of
Section 288 of the Penal Code.
   (7) Oral copulation by force, violence, duress, menace, or threat
of great bodily harm.
   (8) An offense specified in subdivision (a) of Section 289 of the
Penal Code.
   (9) Kidnapping for ransom.
   (10) Kidnapping for purposes of robbery.
   (11) Kidnapping with bodily harm.
   (12) Attempted murder.
   (13) Assault with a firearm or destructive device.
   (14) Assault by any means of force likely to produce great bodily
injury.
   (15) Discharge of a firearm into an inhabited or occupied
building.
   (16) An offense described in Section 1203.09 of the Penal Code.
   (17) An offense described in Section 12022.5 or 12022.53 of the
Penal Code.
   (18) A felony offense in which the minor personally used a weapon
listed in subdivision (a) of Section 12020 of the Penal Code.
   (19) A felony offense described in Section 136.1 or 137 of the
Penal Code.
   (20) Manufacturing, compounding, or selling one-half ounce or more
of a salt or solution of a controlled substance specified in
subdivision (e) of Section 11055 of the Health and Safety Code.
   (21) A violent felony, as defined in subdivision (c) of Section
667.5 of the Penal Code, which also would constitute a felony
violation of subdivision (b) of Section 186.22 of the Penal Code.
   (22) Escape, by the use of force or violence, from a county
juvenile hall, home, ranch, camp, or forestry camp in violation of
subdivision (b) of Section 871 if great bodily injury is
intentionally inflicted upon an employee of the juvenile facility
during the commission of the escape.
   (23) Torture as described in Sections 206 and 206.1 of the Penal
Code.
   (24) Aggravated mayhem, as described in Section 205 of the Penal
Code.
   (25) Carjacking, as described in Section 215 of the Penal Code,
while armed with a dangerous or deadly weapon.
   (26) Kidnapping for purposes of sexual assault, as punishable in
subdivision (b) of Section 209 of the Penal Code.
   (27) Kidnapping as punishable in Section 209.5 of the Penal Code.
   (28) The offense described in subdivision (c) of Section 12034 of
the Penal Code.
   (29) The offense described in Section 12308 of the Penal Code.
   (30) Voluntary manslaughter, as described in subdivision (a) of
Section 192 of the Penal Code.
   (c) With regard to a minor alleged to be a person described in
Section 602 by reason of the violation, when he or she was 14 years
of age or older, of any of the offenses listed in subdivision (b),
upon motion of the petitioner made prior to the attachment of
jeopardy the court shall cause the probation officer to investigate
and submit a report on the behavioral patterns and social history of
the minor being considered for a determination of unfitness.
Following submission and consideration of the report, and of any
other relevant evidence that the petitioner or the minor may wish to
submit, the minor shall be presumed to be not a fit and proper
subject to be dealt with under the juvenile court law unless the
juvenile court concludes, based upon evidence, which evidence may be
of extenuating or mitigating circumstances, that the minor would be
amenable to the care, treatment, and training program available
through the facilities of the juvenile court based upon an evaluation
of each of the following criteria:
   (1) The degree of criminal sophistication exhibited by the minor.
   (2) Whether the minor can be rehabilitated prior to the expiration
of the juvenile court's jurisdiction.
   (3) The minor's previous delinquent history.
   (4) Success of previous attempts by the juvenile court to
rehabilitate the minor.
   (5) The circumstances and gravity of the offenses alleged in the
petition to have been committed by the minor.
   A determination that the minor is a fit and proper subject to be
dealt with under the juvenile court law shall be based on a finding
of amenability after consideration of the criteria set forth above,
and findings therefore
recited in the order as to each of the above criteria that the minor
is fit and proper under each and every one of the above criteria. In
making a finding of fitness, the court may consider extenuating or
mitigating circumstances in evaluating each of the above criteria. In
any case in which a hearing has been noticed pursuant to this
section, the court shall postpone the taking of a plea to the
petition until the conclusion of the fitness hearing and no plea
which may have been entered already shall constitute evidence at the
hearing. If, pursuant to this subdivision, the minor is found to be
not a fit and proper subject for juvenile court treatment and is
tried in a court of criminal jurisdiction and found guilty by the
trier of fact, the judge may commit the minor to the Department of
Corrections and Rehabilitation, Division of Juvenile Facilities, in
lieu of sentencing the minor to the state prison, unless the
limitations specified in Section 1732.6 apply.
   (d) (1) Except as provided in subdivision (b) of Section 602, the
district attorney or other appropriate prosecuting officer may file
an accusatory pleading in a court of criminal jurisdiction against
any minor 16 years of age or older who is accused of committing an
offense enumerated in subdivision (b).
   (2) Except as provided in subdivision (b) of Section 602, the
district attorney or other appropriate prosecuting officer may file
an accusatory pleading against a minor 14 years of age or older in a
court of criminal jurisdiction in any case in which any one or more
of the following circumstances apply:
   (A) The minor is alleged to have committed an offense that if
committed by an adult would be punishable by death or imprisonment in
the state prison for life.
   (B) The minor is alleged to have personally used a firearm during
the commission or attempted commission of a felony, as described in
Section 12022.5 or 12022.53 of the Penal Code.
   (C) The minor is alleged to have committed an offense listed in
subdivision (b) in which any one or more of the following
circumstances apply:
   (i) The minor has previously been found to be a person described
in Section 602 by reason of the commission of an offense listed in
subdivision (b).
   (ii) The offense was committed for the benefit of, at the
direction of, or in association with any criminal street gang, as
defined in subdivision (f) of Section 186.22 of the Penal Code, with
the specific intent to promote, further, or assist in criminal
conduct by gang members.
   (iii) The offense was committed for the purpose of intimidating or
interfering with any other person's free exercise or enjoyment of a
right secured to him or her by the Constitution or laws of this state
or by the Constitution or laws of the United States and because of
the other person's race, color, religion, ancestry, national origin,
disability, gender, or sexual orientation, or because the minor
perceives that the other person has one or more of those
characteristics, as described in Title 11.6 (commencing with Section
422.55) of Part 1 of the Penal Code.
   (iv) The victim of the offense was 65 years of age or older, or
blind, deaf, quadriplegic, paraplegic, developmentally disabled, or
confined to a wheelchair, and that disability was known or reasonably
should have been known to the minor at the time of the commission of
the offense.
   (3) Except as provided in subdivision (b) of Section 602, the
district attorney or other appropriate prosecuting officer may file
an accusatory pleading in a court of criminal jurisdiction against
any minor 16 years of age or older who is accused of committing one
or more of the following offenses, if the minor has previously been
found to be a person described in Section 602 by reason of the
violation of a felony offense, when he or she was 14 years of age or
older:
   (A) A felony offense in which it is alleged that the victim of the
offense was 65 years of age or older, or blind, deaf, quadriplegic,
paraplegic, developmentally disabled, or confined to a wheelchair,
and that disability was known or reasonably should have been known to
the minor at the time of the commission of the offense.
   (B) A felony offense committed for the purposes of intimidating or
interfering with any other person's free exercise or enjoyment of a
right secured to him or her by the Constitution or laws of this state
or by the Constitution or laws of the United States and because of
the other person's race, color, religion, ancestry, national origin,
disability, gender, or sexual orientation, or because the minor
perceived that the other person had one or more of those
characteristics, as described in Title 11.6 (commencing with Section
422.55) of Part 1 of the Penal Code.
   (C) The offense was committed for the benefit of, at the direction
of, or in association with any criminal street gang as prohibited by
Section 186.22 of the Penal Code.
   (4) In any case in which the district attorney or other
appropriate prosecuting officer has filed an accusatory pleading
against a minor in a court of criminal jurisdiction pursuant to this
subdivision, the case shall then proceed according to the laws
applicable to a criminal case. In conjunction with the preliminary
hearing as provided in Section 738 of the Penal Code, the magistrate
shall make a finding that reasonable cause exists to believe that the
minor comes within this subdivision. If reasonable cause is not
established, the criminal court shall transfer the case to the
juvenile court having jurisdiction over the matter.
   (5) For an offense for which the prosecutor may file the
accusatory pleading in a court of criminal jurisdiction pursuant to
this subdivision, but elects instead to file a petition in the
juvenile court, if the minor is subsequently found to be a person
described in subdivision (a) of Section 602, the minor shall be
committed to placement in a juvenile hall, ranch camp, forestry camp,
boot camp, or secure juvenile home pursuant to Section 730, or in
any institution operated by the Department of Corrections and
Rehabilitation, Division of Juvenile Facilities.
   (6) If, pursuant to this subdivision, the minor is found to be not
a fit and proper subject for juvenile court treatment and is tried
in a court of criminal jurisdiction and found guilty by the trier of
fact, the judge may commit the minor to the Department of Corrections
and Rehabilitation, Division of Juvenile Facilities, in lieu of
sentencing the minor to the state prison, unless the limitations
specified in Section 1732.6 apply.
   (e) A report submitted by a probation officer pursuant to this
section regarding the behavioral patterns and social history of the
minor being considered for a determination of unfitness shall include
any written or oral statement offered by the victim, the victim's
parent or guardian if the victim is a minor, or if the victim has
died, the victim's next of kin, as authorized by subdivision (b) of
Section 656.2. Victims' statements shall be considered by the court
to the extent they are relevant to the court's determination of
unfitness.
  SEC. 237.  Section 5348 of the Welfare and Institutions Code is
amended to read:
   5348.  (a) For purposes of subdivision (e) of Section 5346, a
county that chooses to provide assisted outpatient treatment services
pursuant to this article shall offer assisted outpatient treatment
services including, but not limited to, all of the following:
   (1) Community-based, mobile, multidisciplinary, highly trained
mental health teams that use high staff-to-client ratios of no more
than 10 clients per team member for those subject to court-ordered
services pursuant to Section 5346.
   (2) A service planning and delivery process that includes the
following:
   (A) Determination of the numbers of persons to be served and the
programs and services that will be provided to meet their needs. The
local director of mental health shall consult with the sheriff, the
police chief, the probation officer, the mental health board,
contract agencies, and family, client, ethnic, and citizen
constituency groups as determined by the director.
   (B) Plans for services, including outreach to families whose
severely mentally ill adult is living with them, design of mental
health services, coordination and access to medications, psychiatric
and psychological services, substance abuse services, supportive
housing or other housing assistance, vocational rehabilitation, and
veterans' services. Plans shall also contain evaluation strategies,
which shall consider cultural, linguistic, gender, age, and special
needs of minorities and those based on any characteristic listed or
defined in Section 11135 of the Government Code in the target
populations. Provision shall be made for staff with the cultural
background and linguistic skills necessary to remove barriers to
mental health services as a result of having limited-English-speaking
ability and cultural differences. Recipients of outreach services
may include families, the public, primary care physicians, and others
who are likely to come into contact with individuals who may be
suffering from an untreated severe mental illness who would be likely
to become homeless if the illness continued to be untreated for a
substantial period of time. Outreach to adults may include adults
voluntarily or involuntarily hospitalized as a result of a severe
mental illness.
   (C) Provision for services to meet the needs of persons who are
physically disabled.
   (D) Provision for services to meet the special needs of older
adults.
   (E) Provision for family support and consultation services,
parenting support and consultation services, and peer support or
self-help group support, where appropriate.
   (F) Provision for services to be client-directed and that employ
psychosocial rehabilitation and recovery principles.
   (G) Provision for psychiatric and psychological services that are
integrated with other services and for psychiatric and psychological
collaboration in overall service planning.
   (H) Provision for services specifically directed to seriously
mentally ill young adults 25 years of age or younger who are homeless
or at significant risk of becoming homeless. These provisions may
include continuation of services that still would be received through
other funds had eligibility not been terminated as a result of age.
   (I) Services reflecting special needs of women from diverse
cultural backgrounds, including supportive housing that accepts
children, personal services coordinator therapeutic treatment, and
substance treatment programs that address gender-specific trauma and
abuse in the lives of persons with mental illness, and vocational
rehabilitation programs that offer job training programs free of
gender bias and sensitive to the needs of women.
   (J) Provision for housing for clients that is immediate,
transitional, permanent, or all of these.
   (K) Provision for clients who have been suffering from an
untreated severe mental illness for less than one year, and who do
not require the full range of services, but are at risk of becoming
homeless unless a comprehensive individual and family support
services plan is implemented. These clients shall be served in a
manner that is designed to meet their needs.
   (3) Each client shall have a clearly designated mental health
personal services coordinator who may be part of a multidisciplinary
treatment team who is responsible for providing or assuring needed
services. Responsibilities include complete assessment of the client'
s needs, development of the client's personal services plan, linkage
with all appropriate community services, monitoring of the quality
and followthrough of services, and necessary advocacy to ensure each
client receives those services that are agreed to in the personal
services plan. Each client shall participate in the development of
his or her personal services plan, and responsible staff shall
consult with the designated conservator, if one has been appointed,
and, with the consent of the client, shall consult with the family
and other significant persons as appropriate.
   (4) The individual personal services plan shall ensure that
persons subject to assisted outpatient treatment programs receive
age-appropriate, gender-appropriate, and culturally appropriate
services, to the extent feasible, that are designed to enable
recipients to:
   (A) Live in the most independent, least restrictive housing
feasible in the local community, and, for clients with children, to
live in a supportive housing environment that strives for
reunification with their children or assists clients in maintaining
custody of their children as is appropriate.
   (B) Engage in the highest level of work or productive activity
appropriate to their abilities and experience.
   (C) Create and maintain a support system consisting of friends,
family, and participation in community activities.
   (D) Access an appropriate level of academic education or
vocational training.
   (E) Obtain an adequate income.
   (F) Self-manage their illnesses and exert as much control as
possible over both the day-to-day and long-term decisions that affect
their lives.
   (G) Access necessary physical health care and maintain the best
possible physical health.
   (H) Reduce or eliminate serious antisocial or criminal behavior,
and thereby reduce or eliminate their contact with the criminal
justice system.
   (I) Reduce or eliminate the distress caused by the symptoms of
mental illness.
   (J) Have freedom from dangerous addictive substances.
   (5) The individual personal services plan shall describe the
service array that meets the requirements of paragraph (4), and to
the extent applicable to the individual, the requirements of
paragraph (2).
   (b) A county that provides assisted outpatient treatment services
pursuant to this article also shall offer the same services on a
voluntary basis.
   (c) Involuntary medication shall not be allowed absent a separate
order by the court pursuant to Sections 5332 to 5336, inclusive.
   (d) A county that operates an assisted outpatient treatment
program pursuant to this article shall provide data to the State
Department of Mental Health and, based on the data, the department
shall report to the Legislature on or before May 1 of each year in
which the county provides services pursuant to this article. The
report shall include, at a minimum, an evaluation of the
effectiveness of the strategies employed by each program operated
pursuant to this article in reducing homelessness and hospitalization
of persons in the program and in reducing involvement with local law
enforcement by persons in the program. The evaluation and report
shall also include any other measures identified by the department
regarding persons in the program and all of the following, based on
information that is available:
   (1) The number of persons served by the program and, of those, the
number who are able to maintain housing and the number who maintain
contact with the treatment system.
   (2) The number of persons in the program with contacts with local
law enforcement, and the extent to which local and state
incarceration of persons in the program has been reduced or avoided.
   (3) The number of persons in the program participating in
employment services programs, including competitive employment.
   (4) The days of hospitalization of persons in the program that
have been reduced or avoided.
   (5) Adherence to prescribed treatment by persons in the program.
   (6) Other indicators of successful engagement, if any, by persons
in the program.
   (7) Victimization of persons in the program.
   (8) Violent behavior of persons in the program.
   (9) Substance abuse by persons in the program.
   (10) Type, intensity, and frequency of treatment of persons in the
program.
   (11) Extent to which enforcement mechanisms are used by the
program, when applicable.
   (12) Social functioning of persons in the program.
   (13) Skills in independent living of persons in the program.
   (14) Satisfaction with program services both by those receiving
them and by their families, when relevant.
  SEC. 238.  Section 5352.1 of the Welfare and Institutions Code is
amended to read:
   5352.1.  (a) The court may establish a temporary conservatorship
for a period not to exceed 30 days and appoint a temporary
conservator on the basis of the comprehensive report of the officer
providing conservatorship investigation filed pursuant to Section
5354, or on the basis of an affidavit of the professional person who
recommended conservatorship stating the reasons for his or her
recommendation, if the court is satisfied that the comprehensive
report or affidavit shows the necessity for a temporary
conservatorship.
   (b) Except as provided in this section, all temporary
conservatorships shall expire automatically at the conclusion of 30
days, unless prior to that date the court shall conduct a hearing on
the issue of whether or not the proposed conservatee is gravely
disabled as defined in subdivision (h) of Section 5008.
   (c) If the proposed conservatee demands a court or jury trial on
the issue whether he or she is gravely disabled, the court may extend
the temporary conservatorship until the date of the disposition of
the issue by the court or jury trial, provided that the extension
shall in no event exceed a period of six months.
  SEC. 239.  Section 5777.7 of the Welfare and Institutions Code is
amended to read:
   5777.7.  (a) In order to facilitate the receipt of medically
necessary specialty mental health services by a foster child who is
placed outside his or her county of original jurisdiction, the State
Department of Mental Health shall take all of the following actions:
   (1) On or before July 1, 2008, create all of the following items,
in consultation with stakeholders, including, but not limited to, the
California Institute for Mental Health, the Child and Family Policy
Institute, the California Mental Health Directors Association, and
the California Alliance of Child and Family Services:
   (A) A standardized contract for the purchase of medically
necessary specialty mental health services from organizational
providers, when a contract is required.
   (B) A standardized specialty mental health service authorization
procedure.
   (C) A standardized set of documentation standards and forms,
including, but not limited to, forms for treatment plans, annual
treatment plan updates, day treatment intensive and day treatment
rehabilitative progress notes, and treatment authorization requests.
   (2) On or before January 1, 2009, use the standardized items as
described in paragraph (1) to provide medically necessary specialty
mental health services to a foster child who is placed outside his or
her county of original jurisdiction, so that organizational
providers who are already certified by a mental health plan are not
required to be additionally certified by the mental health plan in
the county of original jurisdiction.
   (3) (A) On or before January 1, 2009, use the standardized items
described in paragraph (1) to provide medically necessary specialty
mental health services to a foster child placed outside his or her
county of original jurisdiction to constitute a complete contract,
authorization procedure, and set of documentation standards and
forms, so that no additional documents are required.
   (B) Authorize a county mental health plan to be exempt from
subparagraph (A) and have an addendum to a contract, authorization
procedure, or set of documentation standards and forms, if the county
mental health plan has an externally placed requirement, such as a
requirement from a federal integrity agreement, that would affect one
of these documents.
   (4) Following consultation with stakeholders, including, but not
limited to, the California Institute for Mental Health, the Child and
Family Policy Institute, the California Mental Health Directors
Association, the California State Association of Counties, and the
California Alliance of Child and Family Services, require the use of
the standardized contracts, authorization procedures, and
documentation standards and forms as specified in paragraph (1) in
the 2008-09 state-county mental health plan contract and each
state-county mental health plan contract thereafter.
   (5) The mental health plan shall complete a standardized contract,
as provided in paragraph (1), if a contract is required, or another
mechanism of payment if a contract is not required, with a provider
or providers of the county's choice, to deliver approved specialty
mental health services for a specified foster child, within 30 days
of an approved treatment authorization request.
   (b) The California Health and Human Services Agency shall
coordinate the efforts of the State Department of Mental Health and
the State Department of Social Services to do all of the following:
   (1) Participate with the stakeholders in the activities described
in this section.
   (2) During budget hearings in 2008 and 2009, report to the
Legislature regarding the implementation of this section and
subdivision (c) of Section 5777.6.
   (3) On or before July 1, 2008, establish the following, in
consultation with stakeholders, including, but not limited to, the
California Mental Health Directors Association, the California
Alliance of Child and Family Services, and the County Welfare
Directors Association of California:
   (A) Informational materials that explain to foster care providers
how to arrange for mental health services on behalf of the
beneficiary in their care.
   (B) Informational materials that county child welfare agencies can
access relevant to the provision of services to children in their
care from the out-of-county local mental health plan that is
responsible for providing those services, including, but not limited
to, receiving a copy of the child's treatment plan within 60 days
after requesting services.
   (C) It is the intent of the Legislature to ensure that foster
children who are adopted or placed permanently with relative
guardians, and who move to a county outside their original county of
residence, can access mental health services in a timely manner. It
is the intent of the Legislature to enact this section as a temporary
means of ensuring access to these services, while the appropriate
stakeholders pursue a long-term solution in the form of a change to
the Medi-Cal Eligibility Data System that will allow these children
to receive mental health services through their new county of
residence.
  SEC. 240.  Section 5806 of the Welfare and Institutions Code is
amended to read:
   5806.  The State Department of Mental Health shall establish
service standards that ensure that members of the target population
are identified, and services provided to assist them to live
independently, work, and reach their potential as productive
citizens. The department shall provide annual oversight of grants
issued pursuant to this part for compliance with these standards.
These standards shall include, but are not limited to, all of the
following:
   (a) A service planning and delivery process that is target
population based and includes the following:
   (1) Determination of the numbers of clients to be served and the
programs and services that will be provided to meet their needs. The
local director of mental health shall consult with the sheriff, the
police chief, the probation officer, the mental health board,
contract agencies, and family, client, ethnic, and citizen
constituency groups as determined by the director.
   (2) Plans for services, including outreach to families whose
severely mentally ill adult is living with them, design of mental
health services, coordination and access to medications, psychiatric
and psychological services, substance abuse services, supportive
housing or other housing assistance, vocational rehabilitation, and
veterans' services. Plans also shall contain evaluation strategies,
that shall consider cultural, linguistic, gender, age, and special
needs of minorities in the target populations. Provision shall be
made for staff with the cultural background and linguistic skills
necessary to remove barriers to mental health services due to
limited-English-speaking ability and cultural differences. Recipients
of outreach services may include families, the public, primary care
physicians, and others who are likely to come into contact with
individuals who may be suffering from an untreated severe mental
illness who would be likely to become homeless if the illness
continued to be untreated for a substantial period of time. Outreach
to adults may include adults voluntarily or involuntarily
hospitalized as a result of a severe mental illness.
   (3) Provision for services to meet the needs of target population
clients who are physically disabled.
   (4) Provision for services to meet the special needs of older
adults.
   (5) Provision for family support and consultation services,
parenting support and consultation services, and peer support or
self-help group support, where appropriate for the individual.
   (6) Provision for services to be client-directed and that employ
psychosocial rehabilitation and recovery principles.
   (7) Provision for psychiatric and psychological services that are
integrated with other services and for psychiatric and psychological
collaboration in overall service planning.
   (8) Provision for services specifically directed to seriously
mentally ill young adults 25 years of age or younger who are homeless
or at significant risk of becoming homeless. These provisions may
include continuation of services that still would be received through
other funds had eligibility not been terminated due to age.
   (9) Services reflecting special needs of women from diverse
cultural backgrounds, including supportive housing that accepts
children, personal services coordinator therapeutic treatment, and
substance treatment programs that address gender-specific trauma and
abuse in the lives of persons with mental illness, and vocational
rehabilitation programs that offer job training programs free of
gender bias and sensitive to the needs of women.
   (10) Provision for housing for clients that is immediate,
transitional, permanent, or all of these.
   (11) Provision for clients who have been suffering from an
untreated severe mental illness for less than one year, and who do
not require the full range of services, but are at risk of becoming
homeless unless a comprehensive individual and family support
services plan is implemented. These clients shall be served in a
manner that is designed to meet their needs.

    (b) Each client shall have a clearly designated mental health
personal services coordinator who may be part of a multidisciplinary
treatment team who is responsible for providing or assuring needed
services. Responsibilities include complete assessment of the client'
s needs, development of the client's personal services plan, linkage
with all appropriate community services, monitoring of the quality
and followthrough of services, and necessary advocacy to ensure that
each client receives those services that are agreed to in the
personal services plan. Each client shall participate in the
development of his or her personal services plan, and responsible
staff shall consult with the designated conservator, if one has been
appointed, and, with the consent of the client, consult with the
family and other significant persons as appropriate.
   (c) The individual personal services plan shall ensure that
members of the target population involved in the system of care
receive age-appropriate, gender-appropriate, and culturally
appropriate services or appropriate services based on any
characteristic listed or defined in Section 11135 of the Government
Code, to the extent feasible, that are designed to enable recipients
to:
   (1) Live in the most independent, least restrictive housing
feasible in the local community, and for clients with children, to
live in a supportive housing environment that strives for
reunification with their children or assists clients in maintaining
custody of their children as is appropriate.
   (2) Engage in the highest level of work or productive activity
appropriate to their abilities and experience.
   (3) Create and maintain a support system consisting of friends,
family, and participation in community activities.
   (4) Access an appropriate level of academic education or
vocational training.
   (5) Obtain an adequate income.
   (6) Self-manage their illness and exert as much control as
possible over both the day-to-day and long-term decisions that affect
their lives.
   (7) Access necessary physical health care and maintain the best
possible physical health.
   (8) Reduce or eliminate serious antisocial or criminal behavior
and thereby reduce or eliminate their contact with the criminal
justice system.
   (9) Reduce or eliminate the distress caused by the symptoms of
mental illness.
   (10) Have freedom from dangerous addictive substances.
   (d) The individual personal services plan shall describe the
service array that meets the requirements of subdivision (c), and to
the extent applicable to the individual, the requirements of
subdivision (a).
  SEC. 241.  Section 10830 of the Welfare and Institutions Code, as
added by Chapter 206 of the Statutes of 1996, is amended to read:
   10830.  (a) The department and the Health and Welfare Data Center
shall design, implement, and maintain a statewide fingerprint imaging
system for use in connection with the determination of eligibility
for benefits under the California Work Opportunity and Responsibility
to Kids Act (CalWORKs) program under Chapter 2 (commencing with
Section 11200) of Part 3 excluding Aid to Families with Dependent
Children-Foster Care (AFDC-FC), and the Food Stamp Program under
Chapter 10 (commencing with Section 18900) of Part 6.
   (b) (1) Every applicant for, or recipient of, aid under Chapter 2
(commencing with Section 11200) of Part 3, excluding the AFDC-FC
program and Chapter 10 (commencing with Section 18900) of Part 6,
other than dependent children or persons who are physically unable to
be fingerprint imaged, shall, as a condition of eligibility for
assistance, be required to be fingerprint imaged.
   (2) A person subject to paragraph (1) shall not be eligible for
the CalWORKs program or the Food Stamp Program until fingerprint
images are provided, except as provided in subdivision (e).
Ineligibility may extend to an entire case of a person who refuses to
provide fingerprint images.
   (c) The department may adopt emergency regulations to implement
this section specifying the statewide fingerprint imaging
requirements and exemptions to the requirements in accordance with
the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code). The initial adoption of any emergency regulations implementing
this section, as added during the 1996 portion of the 1995-96
Regular Session, shall be deemed to be an emergency and necessary for
the immediate preservation of the public peace, health and safety,
or general welfare. Emergency regulations adopted pursuant to this
subdivision shall remain in effect for no more than 180 days.
   (d) Persons required to be fingerprint imaged pursuant to this
section shall be informed that fingerprint images obtained pursuant
to this section shall be used only for the purpose of verifying
eligibility and preventing multiple enrollments in the CalWORKs
program or the Food Stamp Program. The department, county welfare
agencies, and all others shall not use or disclose the data collected
and maintained for any purpose other than the prevention or
prosecution of fraud. Fingerprint imaging information obtained
pursuant to this section shall be confidential under Section 10850.
   (e) (1) Except as provided in paragraph (2), the fingerprint
imaging required under this chapter shall be scheduled only during
the application appointment or other regularly scheduled
appointments. No other special appointment shall be required. No
otherwise eligible individual shall be ineligible to receive benefits
under this chapter due to a technical problem occurring in the
fingerprint imaging system or as long as the person consents to and
is available for fingerprint imaging at a mutually agreed-upon time,
not later than 60 days from the initial attempt to complete
fingerprint imaging.
   (2) During the first nine months following implementation,
recipients may be scheduled for separate appointments to complete the
fingerprint imaging required by this section. Notice shall be mailed
first class by the department to recipients at least 10 days prior
to the appointment, and shall include procedures for the recipient to
reschedule the scheduled appointment within 30 days.
   (f) If the fingerprint image of an applicant or recipient of aid
to which this section applies matches another fingerprint image on
file, the county shall notify the applicant or recipient. In the
event that a match is appealed, the fingerprint image match shall be
verified by a trained individual and any matching case files reviewed
prior to the denial of benefits. Upon confirmation that the
applicant or recipient is receiving or attempting to receive multiple
CalWORKs program checks, a county fraud investigator shall be
notified.
  SEC. 242.  Section 10960 of the Welfare and Institutions Code is
amended to read:
   10960.  (a) Within 30 days after receiving the decision of the
director, which is the proposed decision of an administrative law
judge adopted by the director as final, a final decision rendered by
an administrative law judge, or a decision issued by the director
himself or herself, the affected county or applicant or recipient may
file a request with the director for a rehearing. The director shall
immediately serve a copy of the request on the other party to the
hearing and that other party may within five days of the service file
with the director a written statement supporting or objecting to the
request. The director shall grant or deny the request no later than
the 35th working day after the request is made to ensure the prompt
and efficient administration of the hearing process. If the director
grants the request, the rehearing shall be conducted in the same
manner and subject to the same time limits as the original hearing.
   (b) The grounds for requesting a rehearing are as follows:
   (1) The adopted decision is inconsistent with the law.
   (2) The adopted decision is not supported by the evidence in the
record.
   (3) The adopted decision is not supported by the findings.
   (4) The adopted decision does not address all of the claims or
issues raised by the parties.
   (5) The adopted decision does not address all of the claims or
issues supported by the record or evidence.
   (6) The adopted decision does not set forth sufficient information
to determine the basis for its legal conclusion.
   (7) Newly discovered evidence, that was not in custody or
available to the party requesting rehearing at the time of the
hearing, is now available and the new evidence, had it been
introduced, could have changed the hearing decision.
   (8) For any other reason necessary to prevent the abuse of
discretion or an error of law, or for any other reason consistent
with Section 1094.5 of the Code of Civil Procedure.
   (c) The notice granting or denying the rehearing request shall
explain the reasons and legal basis for granting or denying the
request for rehearing.
   (d) The decision of the director, which is the proposed decision
of an administrative law judge adopted by the director as final, a
final decision rendered by an administrative law judge, or a decision
issued by the director himself or herself, remains final pending a
request for a rehearing. Only after a rehearing is granted is the
decision no longer the final decision in the case.
   (e) Notwithstanding any other provision of law, a rehearing
request or decision shall not be a prerequisite to filing an action
under Section 10962.
   (f) (1) Notwithstanding subdivision (a), an applicant or recipient
otherwise may be entitled to a rehearing pursuant to this chapter if
he or she files a request more than 30 days after the decision of
the director is issued, or if he or she did not receive a copy of the
decision of the director, or if there is good cause for filing
beyond the 30-day period. The director may determine whether good
cause exists.
   (2) For purposes of this subdivision, "good cause" means a
substantial and compelling reason beyond the party's control,
considering the length of the delay, the diligence of the party
making the request, and the potential prejudice to the other party.
The inability of a person to understand an adequate and
language-compliant notice, in and of itself, shall not constitute
good cause. The department shall not grant a request for a hearing if
the request is filed more than 180 days after the order or action
complained of.
   (3) This section shall not preclude the application of the
principles of equity jurisdiction as otherwise provided by law.
   (g) Notwithstanding the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code), the department shall implement this section
through an all-county information notice no later than January 1,
2008. The department may also provide further instructions through
training notes.
  SEC. 243.  Section 11322.5 of the Welfare and Institutions Code is
amended to read:
   11322.5.  (a) It is the intent of the Legislature to do each of
the following:
   (1) Maximize the ability of CalWORKs recipients to benefit from
the federal Earned Income Tax Credit (EITC), including retroactive
EITC credits and the Advance EITC, take advantage of the
earned-income disregard to increase their federal Food Stamp Program
benefits, and accumulate credit toward future social security income.

   (2) Educate and empower all CalWORKs participants who receive the
federal EITC to save or invest part or all of their credits in
instruments such as individual development accounts, 401(k) plans,
403(b) plans, IRAs, 457 plans, Coverdell ESA plans, restricted
accounts pursuant to subdivision (a) of Section 11155.2, or 529
plans, and to take advantage of the federal Assets for Independence
program and other matching funds, tools, and training available from
public or private sources, in order to build their assets.
   (b) It is the intent of the Legislature that counties encourage
CalWORKs recipients to participate in activities that will maximize
their receipt of the EITC. To this end, counties may do all of the
following:
   (1) Structure welfare-to-work activities pursuant to subdivisions
(a) to (j), inclusive, of Section 11322.6 to give recipients the
option of maximizing the portion of their CalWORKs benefits that
meets the definition of "earned income" in Section 32(c)(2) of the
Internal Revenue Code.
   (2) Inform CalWORKs recipients of each of the following:
   (A) That earned income, either previous or future, may make them
eligible for the federal EITC, including retroactive EITC credits and
the Advance EITC, increase their federal Food Stamp Program
benefits, and accumulate credit toward future social security income.

   (B) That recipients, as part of their welfare-to-work plans, have
the option of engaging in subsidized employment and grant-based
on-the-job training, as specified in Section 11322.6, and that
participating in these activities will increase their earned income
to the extent that they meet the requirements of federal law.
   (C) That receipt of the federal EITC does not affect their
CalWORKs grant and is additional tax-free income for them.
   (D) That a CalWORKs recipient who receives the federal EITC may
invest these funds in an individual development account, 401(k) plan,
403(b) plan, IRA, 457 plan, 529 college savings plan, Coverdell ESA,
or restricted account, and that investments in these accounts will
not make the recipient ineligible for CalWORKs benefits or reduce the
recipient's CalWORKs benefits.
   (3) At each regular eligibility redetermination, the county shall
ask a recipient whether the recipient is eligible for and takes
advantage of the EITC. If the recipient may be eligible and does not
participate, the county shall give the recipient the federal EITC
form and encourage and assist the recipient to take advantage of it.
   (c) (1) No later than December 1, 2008, the State Department of
Social Services shall develop guidelines that counties may adopt to
carry out the intent of this section and shall present options to the
Governor and Legislature for any legislation necessary to further
carry out the intent of this section.
   (2) In developing the guidelines and legislative options, the
department shall consult and convene at least one meeting of
subject-matter experts, including representatives from the Assembly
and Senate Committees on Human Services, Assets for All Alliance,
Asset Policy Initiative of California, California Budget Project,
California Catholic Conference, California Council of Churches,
California Family Resource Association, California State Association
of Counties, CFED, County Welfare Directors Association of
California, Federal Reserve Bank of San Francisco, Legislative
Analyst's Office, Lifetime, National Council of Churches, Insight
Center for Community Economic Development, New America Foundation,
Public Policy Institute of California, University of California at
Los Angeles School of Law, United States Internal Revenue Service,
and Western Center on Law and Poverty. Nothing in this section
requires the department to compensate or pay expenses for any person
it consults or invites to the meeting or meetings.
  SEC. 244.  Section 14043.1 of the Welfare and Institutions Code is
amended to read:
   14043.1.  As used in this article:
   (a) "Abuse" means either of the following:
   (1) Practices that are inconsistent with sound fiscal or business
practices and result in unnecessary cost to the federal Medicaid and
Medicare programs, the Medi-Cal program, another state's Medicaid
program, or other health care programs operated, or financed in whole
or in part, by the federal government or a state or local agency in
this state or another state.
   (2) Practices that are inconsistent with sound medical practices
and result in reimbursement by the federal Medicaid and Medicare
programs, the Medi-Cal program or other health care programs
operated, or financed in whole or in part, by the federal government
or a state or local agency in this state or another state, for
services that are unnecessary or for substandard items or services
that fail to meet professionally recognized standards for health
care.
   (b) "Applicant" means an individual, partnership, group,
association, corporation, institution, or entity, and the officers,
directors, owners, managing employees, or agents thereof, that apply
to the department for enrollment as a provider in the Medi-Cal
program.
   (c) "Application or application package" means a completed and
signed application form, signed under penalty of perjury or notarized
pursuant to Section 14043.25, a disclosure statement, a provider
agreement, and all attachments or changes in the form, statement, or
agreement.
   (d) "Appropriate volume of business" means a volume that is
consistent with the information provided in the application and any
supplemental information provided by the applicant or provider, and
is of a quality and type that would reasonably be expected based upon
the size and type of business operated by the applicant or provider.

   (e) "Business address" means the location where an applicant or
provider provides services, goods, supplies, or merchandise, directly
or indirectly, to a Medi-Cal beneficiary. A post office box or
commercial box is not a business address. The business address for
the location of a vehicle or vessel owned and operated by an
applicant or provider enrolled in the Medi-Cal program and used to
provide services, goods, supplies, or merchandise, directly or
indirectly, to a Medi-Cal beneficiary shall either be the business
address location listed on the provider's application as the location
where similar services, goods, supplies, or merchandise would be
provided or the applicant's or provider's pay to address.
   (f) "Convicted" means any of the following:
   (1) A judgment of conviction has been entered against an
individual or entity by a federal, state, or local court, regardless
of whether there is a posttrial motion, an appeal pending, or the
judgment of conviction or other record relating to the criminal
conduct has been expunged or otherwise removed.
   (2) A federal, state, or local court has made a finding of guilt
against an individual or entity.
   (3) A federal, state, or local court has accepted a plea of guilty
or nolo contendere by an individual or entity.
   (4) An individual or entity has entered into participation in a
first offender, deferred adjudication, or other program or
arrangement where judgment of conviction has been withheld.
   (g) "Debt due and owing" means 60 days have passed since a notice
or demand for repayment of an overpayment or another amount resulting
from an audit or examination, for a penalty assessment, or for
another amount due the department was sent to the provider,
regardless of whether the provider is an institutional provider or a
noninstitutional provider and regardless of whether an appeal is
pending.
   (h) "Enrolled or enrollment in the Medi-Cal program" means
authorized under any processes by the department or its agents or
contractors to receive, directly or indirectly, reimbursement for the
provision of services, goods, supplies, or merchandise to a Medi-Cal
beneficiary.
   (i) "Fraud" means an intentional deception or misrepresentation
made by a person with the knowledge that the deception could result
in some unauthorized benefit to himself or herself or some other
person. It includes any act that constitutes fraud under applicable
federal or state law.
   (j) "Location" means a street, city, or rural route address or a
site or place within a street, city, or rural route address, and the
city, county, state, and nine-digit ZIP Code.
   (k) "Not currently enrolled at the location for which the
application is submitted" means either of the following:
   (1) The provider is changing location and moving to a different
location than that for which the provider was issued a provider
number.
   (2) The provider is adding a business address.
   (l) "Individual physician practice" means a physician and surgeon
licensed by the Medical Board of California or the Osteopathic
Medical Board of California enrolled or enrolling in Medi-Cal as an
individual provider who is sole proprietor of his or her practice or
is a corporation owned solely by the individual physician and the
only physician practitioner is the owner. An individual physician
practice may include nonphysician medical practitioners employed and
supervised by the physician.
   (m) "Preenrollment period" or "preenrollment" includes the period
of time during which an application package for enrollment, continued
enrollment, or for the addition of or change in a location is
pending.
   (n) "Professionally recognized standards of health care" means
statewide or national standards of care, whether in writing or not,
that professional peers of the individual or entity whose provision
of care is an issue recognize as applying to those peers practicing
or providing care within a state. When the United States Department
of Health and Human Services has declared a treatment modality not to
be safe and effective, practitioners that employ that treatment
modality shall be deemed not to meet professionally recognized
standards of health care. This subdivision shall not be construed to
mean that all other treatments meet professionally recognized
standards of care.
   (o) "Provider" means an individual, partnership, group,
association, corporation, institution, or entity, and the officers,
directors, owners, managing employees, or agents of a partnership,
group association, corporation, institution, or entity, that provides
services, goods, supplies, or merchandise, directly or indirectly,
to a Medi-Cal beneficiary and that has been enrolled in the Medi-Cal
program.
   (p) "Unnecessary or substandard items or services" means those
that are either of the following:
   (1) Substantially in excess of the provider's usual charges or
costs for the items or services.
   (2) Furnished, or caused to be furnished, to patients, whether or
not covered by Medicare, Medicaid, or any of the state health care
programs to which the definitions of applicant and provider apply,
and which are substantially in excess of the patient's needs, or of a
quality that fails to meet professionally recognized standards of
health care. The department's determination that the items or
services furnished were excessive or of unacceptable quality shall be
made on the basis of information, including sanction reports, from
the following sources:
   (A) The professional review organization for the area served by
the individual or entity.
   (B) State or local licensing or certification authorities.
   (C) Fiscal agents or contractors or private insurance companies.
   (D) State or local professional societies.
   (E) Any other sources deemed appropriate by the department.
  SEC. 245.  Section 14043.26 of the Welfare and Institutions Code is
amended to read:
   14043.26.  (a) (1) On and after January 1, 2004, an applicant that
currently is not enrolled in the Medi-Cal program, or a provider
applying for continued enrollment, upon written notification from the
department that enrollment for continued participation of all
providers in a specific provider of service category or subgroup of
that category to which the provider belongs will occur, or, except as
provided in subdivisions (b) and (e), a provider not currently
enrolled at a location where the provider intends to provide
services, goods, supplies, or merchandise to a Medi-Cal beneficiary,
shall submit a complete application package for enrollment,
continuing enrollment, or enrollment at a new location or a change in
location.
   (2) Clinics licensed by the department pursuant to Chapter 1
(commencing with Section 1200) of Division 2 of the Health and Safety
Code and certified by the department to participate in the Medi-Cal
program shall not be subject to this section.
   (3) Health facilities licensed by the department pursuant to
Chapter 2 (commencing with Section 1250) of Division 2 of the Health
and Safety Code and certified by the department to participate in the
Medi-Cal program shall not be subject to this section.
   (4) Adult day health care providers licensed pursuant to Chapter
3.3 (commencing with Section 1570) of Division 2 of the Health and
Safety Code and certified by the department to participate in the
Medi-Cal program shall not be subject to this section.
   (5) Home health agencies licensed pursuant to Chapter 8
(commencing with Section 1725) of Division 2 of the Health and Safety
Code and certified by the department to participate in the Medi-Cal
program shall not be subject to this section.
   (6) Hospices licensed pursuant to Chapter 8.5 (commencing with
Section 1745) of Division 2 of the Health and Safety Code and
certified by the department to participate in the Medi-Cal program
shall not be subject to this section.
   (b) A physician and surgeon licensed by the Medical Board of
California or the Osteopathic Medical Board of California practicing
in an individual physician practice, who is enrolled and in good
standing in the Medi-Cal program, and who is changing locations of
that individual physician practice within the same county, shall be
eligible to continue enrollment at the new location by filing a
change of location form to be developed by the department. The form
shall comply with all minimum federal requirements related to
Medicaid provider enrollment. Filing this form shall be in lieu of
submitting a complete application package pursuant to subdivision
(a).
   (c) (1) Except as provided in paragraph (2), within 30 days after
receiving an application package submitted pursuant to subdivision
(a), the department shall provide written notice that the application
package has been received and, if applicable, that there is a
moratorium on the enrollment of providers in the specific provider of
service category or subgroup of the category to which the applicant
or provider belongs. This moratorium shall bar further processing of
the application package.
   (2) Within 15 days after receiving an application package from a
physician, or a group of physicians, licensed by the Medical Board of
California or the Osteopathic Medical Board of California, or a
change of location form pursuant to subdivision (b), the department
shall provide written notice that the application package or the
change of location form has been received.
   (d) (1) If the application package submitted pursuant to
subdivision (a) is from an applicant or provider who meets the
criteria listed in paragraph (2), the applicant or provider shall be
considered a preferred provider and shall be granted preferred
                                          provisional provider status
pursuant to this section and for a period of no longer than 18
months, effective from the date on the notice from the department.
The ability to request consideration as a preferred provider and the
criteria necessary for the consideration shall be publicized to all
applicants and providers. An applicant or provider who desires
consideration as a preferred provider pursuant to this subdivision
shall request consideration from the department by making a notation
to that effect on the application package, by cover letter, or by
other means identified by the department in a provider bulletin.
Request for consideration as a preferred provider shall be made with
each application package submitted in order for the department to
grant the consideration. An applicant or provider who requests
consideration as a preferred provider shall be notified within 60
days whether the applicant or provider meets or does not meet the
criteria listed in paragraph (2). If an applicant or provider is
notified that the applicant or provider does not meet the criteria
for a preferred provider, the application package submitted shall be
processed in accordance with the remainder of this section.
   (2) To be considered a preferred provider, the applicant or
provider shall meet all of the following criteria:
   (A) Hold a current license as a physician and surgeon issued by
the Medical Board of California or the Osteopathic Medical Board of
California, which license shall not have been revoked, whether stayed
or not, suspended, placed on probation, or subject to other
limitation.
   (B) Be a current faculty member of a teaching hospital or a
children's hospital, as defined in Section 10727, accredited by the
Joint Commission or the American Osteopathic Association, or be
credentialed by a health care service plan that is licensed under the
Knox-Keene Health Care Service Plan Act of 1975 (Chapter 2.2
(commencing with Section 1340) of Division 2 of the Health and Safety
Code) or county organized health system, or be a current member in
good standing of a group that is credentialed by a health care
service plan that is licensed under the Knox-Keene Act.
   (C) Have full, current, unrevoked, and unsuspended privileges at a
Joint Commission or American Osteopathic Association accredited
general acute care hospital.
   (D) Not have any adverse entries in the federal Healthcare
Integrity and Protection Data Bank.
   (3) The department may recognize other providers as qualifying as
preferred providers if criteria similar to those set forth in
paragraph (2) are identified for the other providers. The department
shall consult with interested parties and appropriate stakeholders to
identify similar criteria for other providers so that they may be
considered as preferred providers.
   (e) (1) If a Medi-Cal applicant meets the criteria listed in
paragraph (2), the applicant shall be enrolled in the Medi-Cal
program after submission and review of a short form application to be
developed by the department. The form shall comply with all minimum
federal requirements related to Medicaid provider enrollment. The
department shall notify the applicant that the department has
received the application within 15 days of receipt of the
application. The department shall issue the applicant a provider
number or notify the applicant that the applicant does not meet the
criteria listed in paragraph (2) within 90 days of receipt of the
application.
   (2) Notwithstanding any other provision of law, an applicant or
provider who meets all of the following criteria shall be eligible
for enrollment in the Medi-Cal program pursuant to this subdivision,
after submission and review of a short form application:
   (A) The applicant's or provider's practice is based in one or more
of the following: a general acute care hospital, a rural general
acute care hospital, or an acute psychiatric hospital, as defined in
subdivisions (a) and (b) of Section 1250 of the Health and Safety
Code.
   (B) The applicant or provider holds a current, unrevoked, or
unsuspended license as a physician and surgeon issued by the Medical
Board of California or the Osteopathic Medical Board of California.
An applicant or provider shall not be in compliance with this
subparagraph if a license revocation has been stayed, the licensee
has been placed on probation, or the license is subject to any other
limitation.
   (C) The applicant or provider does not have an adverse entry in
the federal Healthcare Integrity and Protection Data Bank.
   (3) An applicant shall be granted provisional provider status
under this subdivision for a period of 12 months.
   (f) Except as provided in subdivision (g), within 180 days after
receiving an application package submitted pursuant to subdivision
(a), or from the date of the notice to an applicant or provider that
the applicant or provider does not qualify as a preferred provider
under subdivision (d), the department shall give written notice to
the applicant or provider that any of the following applies, or shall
on the 181st day grant the applicant or provider provisional
provider status pursuant to this section for a period no longer than
12 months, effective from the 181st day:
   (1) The applicant or provider is being granted provisional
provider status for a period of 12 months, effective from the date on
the notice.
   (2) The application package is incomplete. The notice shall
identify additional information or documentation that is needed to
complete the application package.
   (3) The department is exercising its authority under Section
14043.37, 14043.4, or 14043.7, and is conducting background checks,
preenrollment inspections, or unannounced visits.
   (4) The application package is denied for any of the following
reasons:
   (A) Pursuant to Section 14043.2 or 14043.36.
   (B) For lack of a license necessary to perform the health care
services or to provide the goods, supplies, or merchandise directly
or indirectly to a Medi-Cal beneficiary, within the applicable
provider of service category or subgroup of that category.
   (C) The period of time during which an applicant or provider has
been barred from reapplying has not passed.
   (D) For other stated reasons authorized by law.
   (g) Notwithstanding subdivision (f), within 90 days after
receiving an application package submitted pursuant to subdivision
(a) from a physician or physician group licensed by the Medical Board
of California or the Osteopathic Medical Board of California, or
from the date of the notice to that physician or physician group that
does not qualify as a preferred provider under subdivision (d), or
within 90 days after receiving a change of location form submitted
pursuant to subdivision (b), the department shall give written notice
to the applicant or provider that either paragraph (1), (2), (3), or
(4) of subdivision (f) applies, or shall on the 91st day grant the
applicant or provider provisional provider status pursuant to this
section for a period no longer than 12 months, effective from the
91st day.
   (h) (1) If the application package that was noticed as incomplete
under paragraph (2) of subdivision (f) is resubmitted with all
requested information and documentation, and received by the
department within 60 days of the date on the notice, the department
shall, within 60 days of the resubmission, send a notice that any of
the following applies:
   (A) The applicant or provider is being granted provisional
provider status for a period of 12 months, effective from the date on
the notice.
   (B) The application package is denied for any other reasons
provided for in paragraph (4) of subdivision (f).
   (C) The department is exercising its authority under Section
14043.37, 14043.4, or 14043.7 to conduct background checks,
preenrollment inspections, or unannounced visits.
   (2) (A) If the application package that was noticed as incomplete
under paragraph (2) of subdivision (f) is not resubmitted with all
requested information and documentation and received by the
department within 60 days of the date on the notice, the application
package shall be denied by operation of law. The applicant or
provider may reapply by submitting a new application package that
shall be reviewed de novo.
   (B) If the failure to resubmit is by a provider applying for
continued enrollment, the failure shall make the provider also
subject to deactivation of the provider's number and all of the
business addresses used by the provider to provide services, goods,
supplies, or merchandise to Medi-Cal beneficiaries.
   (C) Notwithstanding subparagraph (A), if the notice of an
incomplete application package included a request for information or
documentation related to grounds for denial under Section 14043.2 or
14043.36, the applicant or provider shall not reapply for enrollment
or continued enrollment in the Medi-Cal program or for participation
in any health care program administered by the department or its
agents or contractors for a period of three years.
   (i) (1) If the department exercises its authority under Section
14043.37, 14043.4, or 14043.7 to conduct background checks,
preenrollment inspections, or unannounced visits, the applicant or
provider shall receive notice, from the department, after the
conclusion of the background check, preenrollment inspection, or
unannounced visit of either of the following:
   (A) The applicant or provider is granted provisional provider
status for a period of 12 months, effective from the date on the
notice.
   (B) Discrepancies or failure to meet program requirements, as
prescribed by the department, have been found to exist during the
preenrollment period.
   (2) (A) The notice shall identify the discrepancies or failures,
and whether remediation can be made or not, and if so, the time
period within which remediation must be accomplished. Failure to
remediate discrepancies and failures as prescribed by the department,
or notification that remediation is not available, shall result in
denial of the application by operation of law. The applicant or
provider may reapply by submitting a new application package that
shall be reviewed de novo.
   (B) If the failure to remediate is by a provider applying for
continued enrollment, the failure shall make the provider also
subject to deactivation of the provider's number and all of the
business addresses used by the provider to provide services, goods,
supplies, or merchandise to Medi-Cal beneficiaries.
   (C) Notwithstanding subparagraph (A), if the discrepancies or
failure to meet program requirements, as prescribed by the director,
included in the notice were related to grounds for denial under
Section 14043.2 or 14043.36, the applicant or provider shall not
reapply for three years.
   (j) If provisional provider status or preferred provisional
provider status is granted pursuant to this section, a provider
number shall be used by the provider for each business address for
which an application package has been approved. This provider number
shall be used exclusively for the locations for which it is issued,
unless the practice of the provider's profession or delivery of
services, goods, supplies, or merchandise is such that services,
goods, supplies, or merchandise are rendered or delivered at
locations other than the provider's business address and this
practice or delivery of services, goods, supplies, or merchandise has
been disclosed in the application package approved by the department
when the provisional provider status or preferred provisional
provider status was granted.
   (k) Except for providers subject to subdivision (c) of Section
14043.47, a provider currently enrolled in the Medi-Cal program at
one or more locations who has submitted an application package for
enrollment at a new location or a change in location pursuant to
subdivision (a), or filed a change of location form pursuant to
subdivision (b), may submit claims for services, goods, supplies, or
merchandise rendered at the new location until the application
package or change of location form is approved or denied under this
section, and shall not be subject, during that period, to
deactivation, or be subject to any delay or nonpayment of claims as a
result of billing for services rendered at the new location as
herein authorized. However, the provider shall be considered during
that period to have been granted provisional provider status or
preferred provisional provider status and be subject to termination
of that status pursuant to Section 14043.27. A provider that is
subject to subdivision (c) of Section 14043.47 may come within the
scope of this subdivision upon submitting documentation in the
application package that identifies the physician providing
supervision for every three locations. If a provider submits claims
for services rendered at a new location before the application for
that location is received by the department, the department may deny
the claim.
   (l) An applicant or a provider whose application for enrollment,
continued enrollment, or a new location or change in location has
been denied pursuant to this section, may appeal the denial in
accordance with Section 14043.65.
   (m) (1) Upon receipt of a complete and accurate claim for an
individual nurse provider, the department shall adjudicate the claim
within an average of 30 days.
   (2) During the budget proceedings of the 2006-07 fiscal year, and
each fiscal year thereafter, the department shall provide data to the
Legislature specifying the timeframe under which it has processed
and approved the provider applications submitted by individual nurse
providers.
   (3) For purposes of this subdivision, "individual nurse providers"
are providers authorized under certain home- and community-based
waivers and under the state plan to provide nursing services to
Medi-Cal recipients in the recipients' own homes rather than in
institutional settings.
   (n)  The amendments to subdivision (b), which implement a change
of location form, and the addition of paragraph (2) to subdivision
(c), the amendments to subdivision (e), and the addition of
subdivision (g), which prescribe different processing timeframes for
physicians and physician groups, as contained in Chapter 693 of the
Statutes of 2007, shall become operative on July 1, 2008.
  SEC. 246.  Section 14045 of the Welfare and Institutions Code is
amended to read:
   14045.  (a) A provider shall not submit a reimbursement request to
the Medi-Cal program containing a beneficiary's social security
number if the department has issued that beneficiary a Medi-Cal
beneficiary identification card containing a beneficiary number with
the issuance date included in that number.
   (b) This section shall not apply to the submission of a request by
a provider for beneficiary eligibility.
   (c) In order to reduce medical fraud and the black market for
stolen social security cards, the State Department of Health Care
Services may establish an automated HIPAA-compliant system using
HIPAA transactions whereby all providers can access a beneficiary's
identification card number for submitting reimbursement requests.
   (d) When the provider makes a good faith effort to obtain a
recipient's beneficiary identification card number, this section
shall not apply to the following types of services, or the following
provider types, until the time that the department is able to
establish a system described in subdivision (c):
   (1) A hospital licensed pursuant to Chapter 2 (commencing with
Section 1250) of Division 2 of the Health and Safety Code.
   (2) A long-term health care facility, as defined in Section 1418
of the Health and Safety Code.
   (3) A primary care clinic that is licensed pursuant to subdivision
(a) of Section 1204 of the Health and Safety Code.
   (4) Emergency medical transportation services.
   (5) A hospital-based physician.
  SEC. 247.  Section 14154.3 of the Welfare and Institutions Code is
amended to read:
   14154.3.  (a) A provision of a Budget Act or other statute shall
not be interpreted or applied to limit the amount of federal
financial participation, otherwise available under federal law, which
may be reimbursable to counties in support of Medi-Cal
administration costs for eligibility determinations. A provision of a
Budget Act or another statute shall not be interpreted or applied to
restrict the amount of federal financial participation for Medi-Cal
administration costs, for eligibility determinations, otherwise
available under federal law, which may be claimed by the department,
and, upon receipt from the federal government, transferred by the
department to a county.
   (b) The Budget Acts referred to in subdivision (a) include, but
are not limited to:
   (1) Chapter 510 of the Statutes of 1980, including Item 288 of
Section 2 thereof.
   (2) Chapter 99 of the Statutes of 1981, including Items
426-101-001 and 426-101-890 of Section 2.00 thereof.
   (3) Chapter 326 of the Statutes of 1982, including Items
4260-101-001 and 4260-101-890 of Section 2.00 thereof.
   (4) Chapter 324 of the Statutes of 1983, including Items
4260-101-001 and 4260-101-890 of Section 2.00 thereof.
   (5) Chapter 258 of the Statutes of 1984, including Items
4260-101-001 and 4260-101-890 of Section 2.00 thereof.
   (6) Chapter 111 of the Statutes of 1985, including Items
4260-101-001 and 4260-101-890 of Section 2.00 thereof.
   (7) Chapter 186 of the Statutes of 1986, including Items
4260-101-001 and 4260-101-890 of Section 2.00 thereof.
   Provisions of the Budget Acts listed in paragraphs (1) to (7),
inclusive, shall not be interpreted or applied as a prohibition
regarding the amount of costs counties may incur for Medi-Cal
eligibility administration activities. The provisions of those Budget
Acts shall be interpreted and applied as a means of limiting the
allocation of state general funds to be paid in support of Medi-Cal
eligibility determination activities.
   (c) To the extent necessary to effectuate the intent of
subdivisions (a) and (b), the following Budget Act provisions shall
be inoperative:
   (1) Provision 17.5 of Item 426-101-890 of Section 2.00 of Chapter
99 of the Statutes of 1981.
   (2) The incorporation by reference of Provision 16 of Item
4260-101-001 of Section 2.00 of Chapter 326 of the Statutes of 1982
into Provision 1 of Item 4260-101-890 of that chapter.
   (3) The incorporation by reference of Provision 15 of Item
4260-101-001 of Section 2.00 of Chapter 324 of the Statutes of 1983
into Provision 1 of Item 4260-101-890 of Section 2.00 of that
chapter.
   (d) Sections 14154 and 14154.1 shall not be interpreted or applied
to restrict the amount of federal financial participation, not
deferred or disallowed by federal law or regulation which may be
reimbursable to any county for Medi-Cal administration costs for
eligibility determinations. The County Administrative Cost Control
Plan established pursuant to Section 14154 shall not be interpreted
or applied as a prohibition regarding the amount of costs counties
may incur for Medi-Cal county administration costs. That plan shall
be interpreted and applied only as a means of limiting the allocation
of state general funds to be paid in support of those county costs.
   (e) Should federal financial participation be deferred or
disallowed regarding funds transferred by the department to a county
for costs incurred for Medi-Cal eligibility determinations, and that
federal financial participation was matched by county expenditures,
the county which received those federal funds shall repay the funds
in question at such time as the federal deferral or disallowance has
been issued. If the federal deferral or disallowance is noticed or
issued prior to the transfer of the federal funds from the department
to a county, the department shall not be responsible for
transferring the federal funds to the county until the deferral or
disallowance issue regarding these funds has been resolved.
   (f) The department shall timely appeal from the federal deferrals
or disallowances and the affected county may assist the department in
preparing and presenting a pending appeal regarding a federal
deferral or disallowance.
   (g) Medi-Cal eligibility determination activities are undertaken
by counties on behalf of the department. Reasonable and necessary
costs incurred by counties relating to the eligibility determination
activities shall be recognized as costs incurred by the state for
purposes of inclusion in the nonfederal share of Medi-Cal eligibility
determination expenditures for claiming federal financial
participation.
   (h) Subdivision (e) shall not apply to agreements between the
department and a county executed prior to September 27, 1987.
  SEC. 248.  Section 14407.1 of the Welfare and Institutions Code is
amended to read:
   14407.1.  (a) A contractor that has entered into a contract with
the department under this chapter, or under another Medi-Cal managed
care contracting authority, may offer nonmonetary incentives to
promote good health practices by its existing Medi-Cal enrollees.
   (b) No Medi-Cal managed care contractor may offer an incentive to
promote good health practices by its Medi-Cal enrollees prior to
written approval by the department. In the absence of other
countervailing considerations, the department shall approve, to the
extent permitted by federal law, the use by health plans of
nonmonetary incentives to enhance health education program efforts to
increase member participation, learning, and motivation to do any of
the following:
   (1) Effectively use managed health care services, including
preventive and primary care services, obstetric care, and health
education services.
   (2) Modify personal health behaviors, achieving and maintaining
healthy lifestyles and treatment therapies and positive health
outcomes.
   (3) Follow self-care regimens and treatment therapies for existing
medical conditions, chronic diseases, or health conditions.
   (c) If a contractor is a publicly operated entity, the offering of
a department-approved, nonmonetary incentive to promote good health
practices by enrollees shall not constitute a gift of public funds.
   (d) Violations of this section shall be subject to the
requirements and penalties set forth in Sections 14408 and 14409, and
any regulations adopted by the department pursuant to this article.
   (e) The department shall develop and publish written guidelines
for the appropriate use of nonmonetary incentives that may be offered
to Medi-Cal enrollees.
  SEC. 249.  Section 15657.3 of the Welfare and Institutions Code is
amended to read:
   15657.3.  (a) The department of the superior court having
jurisdiction over probate conservatorships shall also have concurrent
jurisdiction over civil actions and proceedings involving a claim
for relief arising out of the abduction, as defined in Section
15610.06, or the abuse of an elderly or dependent adult, if a
conservator has been appointed for the plaintiff prior to the
initiation of the action for abuse.
   (b) The department of the superior court having jurisdiction over
probate conservatorships shall not grant relief under this article if
the court determines that the matter should be determined in a civil
action, but shall instead transfer the matter to the general civil
calendar of the superior court. The court need not abate a proceeding
for relief pursuant to this article if the court determines that the
civil action was filed for the purpose of delay.
   (c) The death of the elder or dependent adult does not cause the
court to lose jurisdiction of a claim for relief for abuse of that
elder or dependent adult.
   (d) (1) Subject to paragraph (2) and subdivision (e), after the
death of the elder or dependent adult, the right to commence or
maintain an action shall pass to the personal representative of the
decedent. If there is no personal representative, the right to
commence or maintain an action shall pass to any of the following, if
the requirements of Section 377.32 of the Code of Civil Procedure
are met:
   (A) An intestate heir whose interest is affected by the action.
   (B) The decedent's successor in interest, as defined in Section
377.11 of the Code of Civil Procedure.
   (C) An interested person, as defined in Section 48 of the Probate
Code, as limited in this subparagraph. As used in this subparagraph,
"an interested person" does not include a creditor or a person who
has a claim against the estate and who is not an heir or beneficiary
of the decedent's estate.
   (2) If the personal representative refuses to commence or maintain
an action or if the personal representative's family or an
affiliate, as those terms are defined in subdivision (c) of Section
1064 of the Probate Code, is alleged to have committed abuse of the
elder or dependent adult, the persons described in subparagraphs (A),
(B), and (C) of paragraph (1) shall have standing to commence or
maintain an action for elder abuse. This paragraph does not require
the court to resolve the merits of an elder abuse action for purposes
of finding that a plaintiff who meets the qualifications of
subparagraphs (A), (B), and (C) of paragraph (1) has standing to
commence or maintain such an action.
   (e) If two or more persons who are either described in
subparagraph (A), (B), or (C) of paragraph (1) of subdivision (d) or
a personal representative claim to have standing to commence or
maintain an action for elder abuse, upon petition or motion, the
court in which the action or proceeding is pending, may make any
order concerning the parties that is appropriate to ensure the proper
administration of justice in the case pursuant to Section 377.33 of
the Code of Civil Procedure.
   (f) This section does not affect the applicable statute of
limitations for commencing an action for relief for abuse of an
elderly or dependent adult.
  SEC. 250.  Section 15660 of the Welfare and Institutions Code is
amended to read:
   15660.  (a) The Department of Justice shall secure any criminal
record of a person to determine whether the person has ever been
convicted of a violation or attempted violation of Section 243.4 of
the Penal Code, a sex offense against a minor, or of a felony that
requires registration pursuant to Section 290 of the Penal Code, or
whether the person has been convicted or incarcerated within the last
10 years as the result of committing a violation or attempted
violation of Section 273a, 273d, or subdivision (a) or (b) of Section
368, of the Penal Code, or as the result of committing a theft,
robbery, burglary, or any felony, and shall provide a subsequent
arrest notification pursuant to Section 11105.2 of the Penal Code, if
both of the following conditions are met:
                                           (1) An employer of the
person requests the determination and submits fingerprints of the
person to the Department of Justice. For purposes of this paragraph,
"employer" includes, but is not limited to, an in-home supportive
services recipient, as defined by Section 12302.2, a recipient of
personal care services under the Medi-Cal program pursuant to Section
14132.95, and a public authority or nonprofit consortium, as
described in subdivision (a) of Section 12301.6.
   (2) The person is unlicensed and provides nonmedical domestic or
personal care to an aged or disabled adult in the adult's own home.
   (b) (1) If it is found that the person has ever been convicted of
a violation or attempted violation of Section 243.4 of the Penal
Code, a sex offense against a minor, or of a felony that requires
registration pursuant to Section 290 of the Penal Code, or that the
person has been convicted or incarcerated within the last 10 years as
the result of committing a violation or attempted violation of
Section 273a, 273d, or subdivision (a) or (b) of Section 368, of the
Penal Code, or as the result of committing a theft, robbery,
burglary, or any felony, the Department of Justice shall notify the
employer of that fact. If no criminal record information has been
recorded, the Department of Justice shall provide the employer with a
statement of that fact.
   (2) An employer may deny employment to a person who is the subject
of a report under paragraph (1) if the report indicates that the
person has committed any of the crimes identified in paragraph (1).
   (3) This section shall not require an employer to hire a person
who is the subject of a report under paragraph (1) if the report
indicates that the person has not committed any of the crimes
indicated in paragraph (1).
   (c) (1) Fingerprints shall be on a card provided by the Department
of Justice for the purpose of obtaining a set of fingerprints. The
employer shall submit the fingerprints to the Department of Justice.
Within 30 calendar days of the receipt of the fingerprints, the
Department of Justice shall notify the employer of the criminal
record information, as provided in this subdivision. If no criminal
record information has been recorded, the Department of Justice shall
provide the employer with a statement of that fact as soon as
possible, but not later than 30 calendar days of receipt of the
fingerprints. If new fingerprints are required for processing, the
Department of Justice, as soon as possible, but not later than 30
calendar days from the date of receipt of the fingerprints, shall
notify the employer that the fingerprints were illegible.
   (2) Fingerprints may be taken by a local law enforcement officer
or agency for purposes of paragraph (1).
   (3) Counties shall notify a recipient of, or applicant for,
in-home supportive services or personal care services under the
Medi-Cal program, upon his or her application for in-home supportive
services or personal care services or during his or her annual
redetermination, or upon the recipient's changing providers, that a
criminal record check is available, and that the check can be
performed by the Department of Justice.
   (d) (1) The Department of Justice shall charge a fee to the
employer to cover the costs of administering this section.
   (2) (A) If the employer is an in-home supportive services
recipient, as defined in Section 12302.2, a recipient of personal
care services under the Medi-Cal program pursuant to Section
14132.95, or a public authority or nonprofit consortium as described
in subdivision (a) of Section 12301.6, the fee shall be shared by the
county and the state in the same ratio as described in Section
12306.
   (B) (i) Notwithstanding any other provision of law, and except as
provided in clause (ii), the department shall, no later than January
1, 2009, implement subparagraph (A) through an all county letter from
the director.
   (ii) No later than July 1, 2009, the department shall adopt
regulations to implement the provisions listed in clause (i).
   (e) It is the intent of the Legislature that the Department of
Justice charge a fee to cover its cost in providing services in
accordance with this section to comply with the 30-calendar-day
requirement for provision to the department of the criminal record
information, as contained in subdivision (c).
  SEC. 251.  Section 16522.1 of the Welfare and Institutions Code is
amended to read:
   16522.1.  In order to be licensed pursuant to Section 1559.110 of
the Health and Safety Code, an applicant shall obtain certification
from the county department of social services or the county probation
department that the facility program provides all of the following:
   (a) (1) Admission criteria for participants in the program,
including, but not limited to, consideration of the applicant's age,
previous placement history, delinquency history, history of drug or
alcohol abuse, current strengths, level of education, mental health
history, medical history, prospects for successful participation in
the program, and work experience. Youth who are wards of the court
described in Section 602 and youth receiving psychotropic medications
shall be eligible for consideration to participate in the program,
and shall not be automatically excluded due to these factors.
   (2) The department shall review the admission criteria to ensure
that the criteria are sufficient to protect participants and that
they do not discriminate on the basis of any characteristic listed or
defined in Section 11135 of the Government Code.
   (b) Strict employment criteria that include a consideration of the
employee's age, drug or alcohol history, and experience in working
with persons in this age group.
   (c) A training program designed to educate employees who work
directly with participants about the characteristics of persons in
this age group placed in long-term care settings, and designed to
ensure that these employees are able to adequately supervise and
counsel participants and to provide them with training in independent
living skills.
   (d) A detailed plan for monitoring the placement of persons under
the licensee's care.
   (e) A contract between the participating person and the licensee
that specifically sets out the requirements for each party, and in
which the licensee and the participant agree to the requirements of
this article.
   (f) An allowance to be provided to each participant in the
program. In the case of a participant living independently, this
allowance shall be sufficient for the participant to purchase food
and other necessities.
   (g) A system for payment for utilities, telephone, and rent.
   (h) Policies regarding all of the following:
   (1) Education requirements.
   (2) Work expectations.
   (3) Savings requirements.
   (4) Personal safety.
   (5) Visitors, including, but not limited to, visitation by the
placement auditor pursuant to subdivision (d).
   (6) Emergencies.
   (7) Medical problems.
   (8) Disciplinary measures.
   (9) Child care.
   (10) Pregnancy.
   (11) Curfew.
   (12) Apartment cleanliness.
   (13) Use of utilities and telephone.
   (14) Budgeting.
   (15) Care of furnishings.
   (16) Decorating of apartments.
   (17) Cars.
   (18) Lending or borrowing money.
   (19) Unauthorized purchases.
   (20) Dating.
   (21) Grounds for termination that may include, but shall not be
limited to, illegal activities or harboring runaways.
   (i) Apartment furnishings, and a policy on disposition of the
furnishings when the participant completes the program.
   (j) Evaluation of the participant's progress in the program and
reporting to the independent living program and to the department
regarding that progress.
   (k) A linkage to the federal Workforce Investment Act of 1998 (29
U.S.C. Sec. 2801 et seq.) program administered in the local area to
provide employment training to eligible participants.
  SEC. 252.  Section 19630.5 of the Welfare and Institutions Code is
amended to read:
   19630.5.  (a) The Blind Vendor Revolving Loan Fund is hereby
created in the State Treasury, and, notwithstanding Section 13340 of
the Government Code, is continuously appropriated without regard to
fiscal years to the department for the purposes specified in this
section. The fund shall be interest bearing. Commencing January 1,
2008, the fund is hereby renamed the BEP Vendor Loan Interest Rate
Buy-Down Fund.
   (b) The fund shall consist of moneys appropriated to that fund by
the Legislature, and notwithstanding Section 16305.7 of the
Government Code, all interest, dividends, and pecuniary gains from
investments or deposits of moneys in the fund.
   (c) (1) Moneys in the fund shall be used by the department for the
purpose of reducing the interest that vendors are required to pay
for loans issued by an eligible lender to purchase inventory and
equipment for vending facilities.
   (2) The department shall make funding contingent upon the vendor's
good standing in the Business Enterprises Program and a
determination that the department has not paid interest on another
loan obtained by the vendor.
   (3) Upon a determination that a vendor is eligible, the department
shall pay, on behalf of the vendor, to an eligible lender, an amount
not to exceed five thousand dollars ($5,000) to reduce the fair
market interest rate of a loan described in paragraph (1) by up to 3
percent.
   (4) If a vendor fails to repay a loan to an eligible lender, the
lender shall reimburse the fund for the fund's share of any interest
not yet accrued as of the time of default by the vendor.
   (d) In determining eligibility for loan interest buy-down
assistance from this fund, the department shall make any loan
interest buy-down assistance contingent upon a determination that the
blind vendor reasonably can be expected to repay the loan based on
the vendor's expected income and that the applicant is currently an
active vendor and has been in the Business Enterprises Program for at
least one year.
   (e) For purposes of this section, "eligible lender" means a
financial institution organized, chartered, or holding a license or
authorization certificate under a law of this state or in the United
States to make loans or extend credit and subject to supervision by
an official or agency of this state or the United States.
   (f) Loan interest buy-down assistance pursuant to this section
shall be made without regard to race, religion, creed, or sex.
   (g) The total amount of interest buy-down assistance that may be
provided under this section is limited to the amount contained in the
fund, and the state shall not be liable beyond the amount contained
in that fund for these debts, obligations, and liabilities.
   (h) In the event that the total amount of loan interest buy-down
assistance applied for under this section exceeds the total amount of
assistance that may be provided pursuant to this section, the
department may establish a system of priorities for the approval of
applications.
  SEC. 253.  Section 34 of the Sacramento Area Flood Control Agency
Act (Chapter 510 of the Statutes of 1990), as amended by Section 2 of
Chapter 619 of the Statutes of 2007, is amended to read:
  Sec. 34.  (a) "Project" means the acquisition, construction,
maintenance, or operation of a flood control facility authorized
under the agreement and not inconsistent with this act, including,
but not limited to, acquisition of rights-of-way and easements and
payment of incidental expenses.
   (b) This act does not authorize the agency to exercise the power
of eminent domain outside its boundaries.
   (c) Participation in a project includes making payments or other
contributions pursuant to a contract entered into with another
governmental agency that requires the other governmental agency to
perform work on a project.
   (d) The acquisition of rights-of-way and easements outside the
agency's boundaries shall be consistent with applicable county plans,
including county general plans, and the State Plan of Flood Control.

   (e) This section does not alter the existing powers granted to
members of the agreement.
   (f) This section does not preclude the acquisition of time-limited
easements.
  SEC. 254.  Section 1107 of the Ojai Basin Groundwater Management
Agency Act (Chapter 750 of the Statutes of 1991), as amended by
Section 1 of Chapter 551 of the Statutes of 2007, is amended to read:

  Sec. 1107.  (a) Except as provided in subdivision (b), the
groundwater extraction charge shall not exceed seven dollars and
fifty cents ($7.50) per acre-foot pumped per year.
   (b) The board may establish a groundwater extraction charge
maximum limitation that exceeds the amount specified in subdivision
(a) if both of the following apply:
   (1) The imposition of the groundwater extraction charge is
approved by a majority vote of the operators that are subject to the
charge, with the votes weighted based on the volume of water
extracted by each operator. Votes shall be calculated based on a
three-year average of production from the basin, as determined by
payments of groundwater extraction charges to the agency during the
three years immediately preceding the vote, except that for operators
with facilities in use less than three years, votes shall be
weighted based upon a single-year average if the facility has been in
use less than two years, or weighted based upon a two-year average
if the facility has been in use more than two years and less than
three years. An operator shall be entitled to one vote for each
averaged acre-foot of groundwater pumped. A change in ownership shall
not affect the history of production from any well.
   (2) The groundwater extraction charge does not exceed twenty-five
dollars ($25) per acre-foot pumped per year.
  SEC. 255.  Section 1 of Chapter 58 of the Statutes of 1997, as
amended by Chapter 525 of the Statutes of 2007, is amended to read:
  Section 1.  (a) A charter school operating under a charter approved
before June 1, 1997, by the county board of education of a county of
the first class to serve at-risk pupils, may operate until June 30,
2013. The continuation of the authority of a charter school to
operate pursuant to this subdivision after June 30, 2008, shall be
subject to the approval of that county board of education.
   (b) Notwithstanding any other provisions of the Education Code,
except as set forth in subdivision (c), for the 2007-08 to 2012-13
fiscal years, inclusive, the attendance of pupils in a charter school
to which this section applies shall be funded at the same rates for
the same categories of pupils as community schools and community day
schools in the same county.
   (c) A charter school operated pursuant to subdivision (a), if its
charter so provides, may operate one or more community day schools in
compliance with Article 3 (commencing with Section 48660) of Chapter
4 of Part 27 of Division 4 of Title 2 of the Education Code, except
for compliance with the employment requirements in subdivision (a) of
Section 48663 and subdivision (c) of Section 48664 of the Education
Code, and the funded average daily attendance limitations of
paragraphs (1) and (2) of subdivision (a) of Section 48664 of the
Education Code, and be funded for not more than 2,000 units of
average daily attendance in any fiscal year, to the extent that
funding is appropriated therefor, pursuant to subdivision (a) of
Section 48664 of the Education Code, as if it were a community day
school operated by a county. The average daily attendance of a
charter school operating pursuant to this section shall not be in
addition to the average daily attendance limitation provided pursuant
to subdivision (a) of Section 48664 of the Education Code.
   (d) A county board of education that has approved a charter school
as set forth in subdivision (a) shall establish specific
accountability criteria to annually measure the performance of the
charter school. The county board of education shall annually report
the measurement to the State Department of Education, the Department
of Finance, the Assembly Committee on Education, the Assembly
Committee on Appropriations, the Senate Committee on Education, and
the Senate Committee on Appropriations. The accountability criteria
shall comply with the alternative accountability system described by
subdivision (h) of Section 52052 of the Education Code.
   (e) If a charter school does not comply with the performance
criteria described in subdivision (d), the charter school shall
submit to the county board of education a plan for improvement that
is designed to enable the charter school to comply with the criteria
within a timeframe determined by the county board of education.
  SEC. 256.  Section 2 of Chapter 4 of the Statutes of 2007 is
amended to read:
  Sec. 2.  For purposes of this act:
   (a) "Applicant committee agreement" means an agreement to be
entered into between the Organizing Committee for the Olympic Games
(OCOG) and the United States Olympic Committee (USOC) if, and upon,
the USOC's selection on or about April 14, 2007, of the City of Los
Angeles as the official United States candidate city.
   (b) "Bid committee agreement" means an agreement entered into
between the OCOG and the USOC governing the OCOG and the bid process.

   (c) "Endorsing municipality" means the City of Los Angeles, which
has authorized a bid by the OCOG for selection of the municipality as
the site of the Olympic Games and Paralympic Games.
   (d) "Games" means the 2016 Olympic Games.
   (e) "Games support contract" means a joinder undertaking, a
joinder agreement, or a similar contract executed by the Governor and
containing terms permitted or required by this act.
   (f) "Joinder agreement" means an agreement entered into by:
   (1) The Governor, on behalf of this state, and a site selection
organization setting out representations and assurances by the state
in connection with the selection of a site in this state for the
location of the games.
   (2) The endorsing municipality and a site selection organization
setting out representations and assurances by the endorsing
municipality in connection with the selection of a site in this state
for the location of the games.
   (g) "Joinder undertaking" means an agreement entered into by:
   (1) The Governor, on behalf of this state, and a site selection
organization that the state will execute a joinder agreement in the
event that the site selection organization selects a site in this
state for the games.
   (2) The endorsing municipality and a site selection organization
that the endorsing municipality will execute a joinder agreement in
the event that the site selection organization selects a site in this
state for the games.
   (h) "OCOG" means a nonprofit corporation, or its successor in
interest, that:
   (1) Has been authorized by the endorsing municipality to pursue an
application and bid on the applicant's behalf to a site selection
organization for selection as the site for the games.
   (2) With the authorization of the endorsing municipality, has
executed the bid committee agreement with a site selection
organization regarding a bid to host the games.
   (i) "Site selection organization" means the United States Olympic
Committee, the International Olympic Committee, the International
Paralympic Committee, all three, or some combination, as applicable.
  SEC. 257.  Section 4 of Chapter 4 of the Statutes of 2007 is
amended to read:
  Sec. 4.  (a) The Governor may agree, in accordance with law and
subject to Sections 5 and 6 of this act, in a joinder undertaking
entered into with a site selection organization that:
   (1) The Governor shall execute a joinder agreement if the site
selection organization selects a site in this state for the games.
   (2) The state shall refrain, during the period, or any portion
thereof, between the execution of the joinder undertaking and award
by the International Olympic Committee (IOC) of the games to a host
city, from becoming a party to or approving or consenting to an act,
contract, commitment, or other action contrary to, or which might
affect, any of the obligations stipulated in the joinder agreement.
   (3) The Governor may agree that a dispute in connection with the
joinder undertaking arising during the period between the execution
of the joinder undertaking and the IOC's award of the games to a host
city shall be definitively settled as provided in the bid committee
agreement.
   (b) The Governor may agree in a joinder agreement that the state
shall, in accordance with law and subject to Sections 5 and 6 of this
act, do the following:
   (1) Provide or cause to be provided any or all of the state
government funding, facilities, and other resources specified in the
OCOG's bid to host the games.
   (2) The state will be liable, solely by means of the funding
mechanism established by Sections 5 and 6 of this act, for:
   (A) Obligations of the OCOG to a site selection organization,
including obligations indemnifying the site selection organization
against claims of and liabilities to third parties arising out of or
relating to the games.
   (B) Any financial deficit relating to the OCOG or the games.
   (3) The state's liability shall not exceed the amount of funds
appropriated to the Olympic Games Trust Fund established in Section 5
of this act. Any liability above this amount shall be the
responsibility of the OCOG.
   (4) Acknowledge that the OCOG will be bound by a series of
agreements with the site selection organization as set forth in the
joinder agreement.
   (c) The Governor shall execute a joinder undertaking and a joinder
agreement, provided the parties conform with this act.
   (d) A games support contract may contain any additional provisions
the Governor requires in order to carry out the purposes of this
act.
  SEC. 258.  Section 2 of Chapter 26 of the Statutes of 2007 is
amended to read:
  Sec. 2.  The amendment of Section 20150.1 made by this act does not
constitute a change in, but is declaratory of, existing law.
  SEC. 259.  Section 2 of Chapter 451 of the Statutes of 2007 is
amended to read:
  Sec. 2.  The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of unique circumstances of community familiarity with the
program in Section 1 of this act, applicable only to the Santa Cruz
Metropolitan Transit District and the Santa Clara Valley
Transportation Authority.
  SEC. 260.  Any section of any act enacted by the Legislature during
the 2008 calendar year that takes effect on or before January 1,
2009, and that amends, amends and renumbers, adds, repeals and adds,
or repeals a section that is amended, amended and renumbered, added,
repealed and added, or repealed by this act, shall prevail over this
act, whether that act is enacted prior to, or subsequent to, the
enactment of this act. The repeal, or repeal and addition, of any
article, chapter, part, title, or division of any code by this act
shall not become operative if any section of any other act that is
enacted by the Legislature during the 2008 calendar year and takes
effect on or before January 1, 2009, amends, amends and renumbers,
adds, repeals and adds, or repeals any section contained in that
article, chapter, part, title, or division.