BILL NUMBER: SBX3 2	CHAPTERED
	BILL TEXT

	CHAPTER  2
	FILED WITH SECRETARY OF STATE  FEBRUARY 20, 2009
	APPROVED BY GOVERNOR  FEBRUARY 20, 2009
	PASSED THE SENATE  FEBRUARY 19, 2009
	PASSED THE ASSEMBLY  FEBRUARY 14, 2009
	AMENDED IN ASSEMBLY  FEBRUARY 14, 2009
	AMENDED IN ASSEMBLY  JANUARY 13, 2009

INTRODUCED BY   Senator Ducheny

                        JANUARY 5, 2009

   An act to amend Items 3910-004-0226, 3910-004-0281, and
3910-007-0387 of Section 2.00 of the Budget Act of 2003 (Chapter 157
of the Statutes of 2003), and to amend Items 0690-102-0001,
0690-102-0214, 0690-102-0597, 0690-113-0001, 0890-001-0001,
1870-012-0214, 2640-101-0046, 2660-302-0042, 2660-302-0890,
3790-001-0001, 3790-001-6051, 4140-011-0121, 4170-101-0001,
4300-101-0001, 5180-111-0001, 5225-101-0001, 6440-001-0001,
6600-001-0001, 6610-001-0001, 6610-002-0001, 8660-011-0470,
8660-011-0471, 8660-011-0483, and 9210-101-0001 of, and to add Items
2180-011-0067, 2660-013-0042, 3560-011-0347, 3680-011-0516,
3790-011-0263, 3910-011-0226, and 8120-013-0268 to, Section 2.00 of
the Budget Act of 2008 (Chapters 268 and 269 of the Statutes of
2008), and to amend Section 28.00 of, and to add Sections 3.90, 8.25,
and 35.10 to, the Budget Act of 2008, relating to the support of
state government, making an appropriation therefor, and declaring the
urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   I object to the following appropriations contained in Senate Bill
2 Third Extraordinary Session.
   Item 2660-013-0042--For transfer by the Controller from the State
Highway Account, State Transportation Fund, to the Transportation
Debt Service Fund to be used as specified in Section 16965 of the
Government Code.
   I am eliminating this item consistent with the Budget agreement to
eliminate the proposed $0.12 excise tax increase on gasoline and
diesel fuel.
   With the above deletions, revisions, and reductions, I hereby
approve Senate Bill 2 Third Extraordinary Session.
                                                Schwarzenegger,
Arnold

   SB 2, Ducheny. Budget Act of 2008: revisions.
   The Budget Act of 2008 (Chapters 268 and 269 of the Statutes of
2008) made appropriations for the support of state government during
the 2008-09 fiscal year.
   This bill would amend the Budget Act of 2008 to make adjustments
to certain items of appropriations. The bill would authorize the
Director of Finance to allocate necessary reductions in employee
compensation from General Fund items in the amount of $385,762,000
and from items relating to other funds in the amount of $285,196,000.
The bill would state the intent of the Legislature that reductions
in employee compensation will result in General Fund savings of
$1,024,326,000 and other fund savings of $688,375,000 in the 2009-10
fiscal year.
   The bill also would set forth procedures to account for the
receipt of federal funds as part of an economic stimulus or similar
legislation during the 2008-09 and 2009-10 fiscal years.
   The Budget Act of 2003 (Chapter 157 of the Statutes of 2003) makes
appropriations for the support of state government during the
2003-04 fiscal year and, among other things, authorizes transfers to
the General Fund from certain special funds to be repaid to those
funds during the 2nd half of the 2008-09 fiscal year.
   This bill would amend the Budget Act of 2003 to extend the time
for repayment of those transfers to the 2nd half of the 2009-10 and
2011-12 fiscal years, as specified.
   The California Constitution authorizes the Governor to declare a
fiscal emergency and to call the Legislature into special session for
that purpose. The Governor issued a proclamation declaring a fiscal
emergency, and calling a special session for this purpose, on
December 19, 2008.
   This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on December 19, 2008,
pursuant to the California Constitution.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Appropriation: yes.


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

  SECTION 1.  The adjustments to appropriations made by this act are
in addition to the appropriations made in Section 2.00 of the Budget
Act of 2008 (Chapters 268 and 269 of the Statutes of 2008) and are
subject to the provisions of that act, as appropriate, including, as
applicable, the provisions of that act that apply to the items of
appropriation that are amended by this act. Unless otherwise
specified, the references in this act to item numbers refer to items
of appropriation in Section 2.00 of the Budget Act of 2008 (Chapters
268 and 269 of the Statutes of 2008).
  SEC. 2.  Item 0690-102-0001 of Section 2.00 of the Budget Act of
2008 is amended to read:
0690-102-0001--For local assistance, Office
of Emergency Services......................... 29,849,000
     Schedule:
     (1)   50.20-Victim Services..    3,916,000
     (2)   50.30-Public Safety....   25,933,000
     Provisions:
     1.    Notwithstanding any other provision
           of law, the Office of Emergency
           Services may provide advance
           payment of up to 25 percent of
           grant funds awarded to community-
           based nonprofit organizations,
           cities, school districts, counties,
           and     other units of local
           government that have demonstrated
           cashflow problems according to the
           criteria set forth by the Office of
           Emergency Services.
     2.    To maximize the use of program
           funds and demonstrate the
           commitment of the grantees to
           program objectives, the Office of
           Emergency Services shall require
           all grantees of funds from the Gang
           Violence Suppression-Curfew
           Enforcement Strategy Program to
           provide local matching funds of at
           least 10 percent for the first and
           each subsequent year of operation.
           This match requirement applies to
           each agency that is to receive
           grant funds. An agency may meet its
           match requirements with an in-kind
           match, if approved by the Office of
           Emergency Services.
     4.    The Department of Finance shall
           include a special display table in
           the Governor's Budget under the
           Office of Emergency Services that
           displays, by fund source, component
           level detail for Program 50,
           Criminal Justice Projects. In
           addition, the Office of Emergency
           Services, in consultation with the
           Department of Finance, shall
           provide a report to the Joint
           Legislative Budget Committee by
           January 10 of each year that
           provides a list of grantees, total
           funds awarded to each grantee, and
           performance statistics to document
           program outputs and outcomes in
           order to assess the state's return
           on investment for each component of
           Program 50 for each of the three
           years displayed in the Governor's
           Budget.


  SEC. 3.  Item 0690-102-0214 of Section 2.00 of the Budget Act of
2008 is amended to read:
0690-102-0214--For local assistance, Office
of Emergency Services, payable from the
Restitution Fund............................. 10,000,000
     Schedule:
     (1)   Grants to cities with
           heavy gang
           concentrations.........   3,000,000
     (2)   Competitive grants to
           cities.................   4,500,000
     (3)   Competitive grants to
           community-based
           organizations..........   2,000,000
     (4)   Internet Crimes
           Against Children Task
           Force funding..........     500,000
     Provisions:
     1.    All grantees must provide a dollar-
           for-dollar match to state grant
           funds awarded from Schedules (1),
           (2), and (3).
     2.    The Office of Emergency Services
           shall submit a report and
           evaluation     of the grants
           awarded pursuant to Schedules (1),
           (2), and (3) to the fiscal
           committees of the Legislature not
           later than April 1, 2011.
     3.    Up to 3 percent of the funds
           appropriated in Schedules (1),
           (2), and (3) may be used for
           administration of the grant
           programs.
     4.    The amount appropriated in
           Schedule (1) shall be distributed
           as follows: $1,000,000 each to Los
           Angeles, San Francisco Bay area
           cities, and central valley cities.
     5.    The amount appropriated in
           Schedule (2) shall be
           competitive grants to cities. No
           grant shall exceed $500,000, and
           at least two grants shall be
           awarded to cities with populations
           of 200,000 or less. In awarding
           grants, the Office of Emergency
           Services shall give preference to
           applicants that incorporate
           regional approaches to antigang
           activities.
     6.    Each city that receives a grant
           from Schedule (1) or (2) shall
           collaborate and coordinate with
           area jurisdictions and agencies,
           including the existing county
           juvenile justice coordination
           council, with the goal of reducing
           gang activity in the city and
           adjacent areas. Each grantee shall
           establish a coordinating and
           advisory council to prioritize the
           use of the funds. Membership shall
           include city officials, local law
           enforcement, including the county
           sheriff, chief probation officer,
           and district attorney, local
           educational agencies,
           including school districts and the
           county office of education, and
           community-based organizations.
     7.    The amount appropriated in
           Schedule (3) shall be for grants
           to community-based organizations.
           The grants shall be used to test
           different approaches designed to
           reduce gang activities in
           communities and neighborhoods. No
           grant shall exceed $200,000.


  SEC. 4.  Item 0690-102-0597 of Section 2.00 of the Budget Act of
2008 is amended to read:
0690-102-0597--For local assistance, Office
of Emergency Services, payable from the High
Technology Theft Apprehension and
Prosecution Program Trust Fund............... 6,982,000
     Schedule:
     (1) 50.30-Public Safety........ 6,982,000
     Provisions:
     1.  Funds appropriated in this item are
         for the High Technology Theft
         Apprehension and Prosecution
         Program, as established by Chapter
         5.7 (commencing with Section 13848)
         of Title 6 of Part 4 of the Penal
         Code, as amended by Chapter 555 of
         the Statutes of 1998, and shall be
         deposited in the High Technology
         Theft Apprehension and Prosecution
         Program Trust Fund, established
         pursuant to Section 13848.4 of the
         Penal Code.
     2.  All grantees receiving funds
         appropriated in this item shall be
         required to provide matching funds
         equal to 25 percent of the amount of
         grant funding received by them from
         the High Technology Theft
         Apprehension and Prosecution Program
         Trust Fund.
     3.  Upon order of the Director of
         Finance, the amount available for
         expenditure in this item may be
         augmented by the amount of any
         additional resources available in
         the High Technology Theft
         Apprehension and Prosecution Program
         Trust Fund, which is in addition to
         the amount appropriated in this
         item. Any augmentation shall be
         authorized no sooner than 30 days
         after notification in writing to the
         chairpersons of the committees in
         each house of the Legislature that
         consider appropriations, the
         chairperson of the committee and
         appropriate subcommittees that
         consider the State Budget, and the
         Chairperson of the Joint Legislative
         Budget Committee, or not sooner than
         whatever lesser time the chairperson
         of the joint committee or his or her
         designee may determine.


  SEC. 5.  Item 0690-113-0001 of Section 2.00 of the Budget Act of
2008 is amended to read:
0690-113-0001--For transfer by the
Controller to the High Technology Theft
Apprehension and Prosecution Program Trust
Fund........................................  6,982,000
     Provisions:
     1.  Funds appropriated in this item are
         for the High Technology Theft
         Apprehension and Prosecution
         Program, as     established by
         Chapter 5.7 (commencing with
         Section 13848) of Title 6 of Part 4
         of the Penal Code, as amended by
         Chapter 555 of the Statutes of
         1998, and shall be deposited in the
         High Technology Theft Apprehension
         and Prosecution Program Trust Fund,
         established pursuant to Section
         13848.4 of the Penal Code.


  SEC. 6.  Item 0890-001-0001 of Section 2.00 of the Budget Act of
2008 is amended to read:
0890-001-0001--For support of Secretary of
State....................................... 46,380,000
    Schedule:
    (1)   10-Filings and
          Registrations.........   49,025,000
    (2)   20-Elections..........   76,483,000
    (3)   30-Archives...........   10,499,000
    (4)   50.01-Administration
          and Technology........   23,590,000
    (5)   50.02-Distributed
          Administration and
          Technology............  -23,590,000
    (6)   Reimbursements........   -7,339,000
    (7)   Amount payable from
          the Secretary of
          State's Business Fees
          Fund (Item 0890-001-
          0228).................  -38,936,000
    (8)   Amount payable from
          the Federal Trust
          Fund (Item 0890-001-
          0890).................  -41,674,000
    (9)   Amount payable from
          the Victims of
          Corporate Fraud
          Compensation Fund
          (Item 0890-001-3042)..   -1,678,000
    Provisions:
    1.    The Secretary of State may not
          expend any special handling fees
          authorized by Chapter 999 of the
          Statutes of 1999 which are
          collected in excess of the cost of
          administering those special
          handling fees unless specifically
          authorized by the Legislature.
    2.    Of the     amounts appropriated in
          this item, $41,674,000 shall be
          used for operational costs
          associated with implementation of
          the Help America Vote Act of 2002
          (42 U.S.C. Sec. 15301 et seq.).
    3.    Of the amount appropriated in this
          item, $5,000,000 shall be used for
          costs associated with the November
          4, 2008, statewide general
          election.
    4.    Of the amounts appropriated in
          this item, $10,000,000 shall be
          used to cover the costs incurred
          by the Secretary of State for the
          special election to be conducted
          in 2009. If the Secretary of State
          incurs costs greater than
          $10,000,000 to conduct the special
          election, the Department of
          Finance shall have the authority
          to increase this item by up to
          $5,000,000 in order to cover
          those costs. The Department of
          Finance shall, within 15 days of
          authorizing an increase in
          expenditure authority, report to
          the Joint Legislative Budget
          Committee on the authorized amount
          and the necessity therefor. The
          Department of Finance shall not
          authorize an increase in
          expenditure authority greater than
          is necessary to cover the costs
          incurred by the Secretary of State
          for the special election.


  SEC. 7.  Item 1870-012-0214 of Section 2.00 of the Budget Act of
2008 is amended to read:
1870-012-0214--For transfer by the
Controller, upon order of the Director of
Finance, from the Restitution Fund to the
General Fund.............................. (80,000,000)


  SEC. 8.  Item 2180-011-0067 is added to Section 2.00 of the Budget
Act of 2008, to read:
2180-011-0067--For transfer by the
Controller, upon order of the Director of
Finance, from the State Corporations Fund
to the General Fund....................... (4,200,000)


  SEC. 9.  Item 2640-101-0046 of Section 2.00 of the Budget Act of
2008 is amended to read:
2640-101-0046--For local assistance, State
Transit Assistance, for allocation by the
Controller pursuant to Section 99312 of the
Public Utilities Code, payable from the
Public Transportation Account, State          153,217,0
Transportation Fund..........................        00
      Provisions:
      1.      Notwithstanding Sections 99313
              and 99314 of the Public
              Utilities Code, not more than
              $60,397 of the amount
              appropriated     in this item
              shall be used to reimburse the
              Controller for expenditures of
              administration of State Transit
              Assistance funds.
      2.      The funds appropriated in this
              item are in lieu of the funds
              appropriated in subparagraphs
              (B) and (C) of paragraph (1) of
              subdivision (c) of Section
              7104.2 of the Revenue and
              Taxation Code, and paragraphs
              (2) and (3) of subdivision (e)
              of Section 99312 of the Public
              Utilities Code.


  SEC. 10.  Item 2660-013-0042 is added to Section 2.00 of the Budget
Act of 2008, to read:
2660-013-0042--For transfer by the
Controller from the State Highway
Account, State Transportation Fund, to
the Transportation Debt Service Fund to
be used as specified in Section 16965
of the Government Code ................. (250,000,000)
     Provisions:
     1.    The funds transferred by this
           item shall reimburse the
           General Fund for debt service
           payments related to bond
           expenditures consistent
           with Article XIX of the
           California Constitution in
           the following priority order:
           (a)    Debt service payments
                  made in the 2008-09
                  fiscal year.
           (b)    Debt service payments
                  made in the 2007-08
                  fiscal year and prior
                  fiscal years.


  SEC. 11.  Item 2660-302-0042 of Section 2.00 of the Budget Act of
2008 is amended to read:
2660-302-0042--For capital outlay,
Department of Transportation, non-State
Transportation Improvement Program
(STIP), payable from the State Highway
Account, State Transportation Fund....... 647,800,000
  Schedule:
  (1 20-Highway Transportation.. 1,797,800
  )                                   ,000
     (a) State
         Highway
         Operation
         and
         Protection (1,797,800,0
         Program...          00)
  (2 Reimbursements............. -1,150,00
  )                                  0,000
  Provisions:
  1. These funds shall be available for
     allocation by the California
     Transportation Commission until June
     30, 2010, and available for
     encumbrance and liquidation until
     June 30, 2014.
  2. Notwithstanding any other provision
     of law, funds appropriated in this
     item may be transferred to Item 2660-
     101-0042, 2660-102-0042, 2660-301-
     0042, or 2660-311-0042. These
     transfers shall require the prior
     approval of the Department of
     Finance.
  3. The Director of Finance may increase
     this item pursuant to allocations
     made from tribal gaming bond
     revenues no sooner than 30 days
     after written notification of the
     allocation is provided to the
     chairpersons of the fiscal
     committees in each house of the
     Legislature and the Chairperson of
     the Joint Legislative Budget
     Committee, or not sooner than
     whatever lesser time the Chairperson
     of the Joint Legislative Budget
     Committee, or his or her designee,
     may determine.
  4. No funds appropriated in this item
     are available for expenditure on
     specialty building facilities. For
     the purpose of this item, specialty
     building facilities are equipment
     facilities, maintenance facilities,
     material laboratories, and traffic
     management     centers.


  SEC. 12.  Item 2660-302-0890 of Section 2.00 of the Budget Act of
2008 is amended to read:
2660-302-0890--For capital outlay,
Department of Transportation, non-State
Transportation Improvement Program
(STIP), payable from the Federal Trust
Fund..................................... 1,526,200,000
  Schedule:
  (1 20-Highway Transportation.. 1,526,200
  )                                   ,000
     (a) State
         Highway
         Operation
         and
         Protection (1,526,200,0
         Program...          00)
  Provisions:
  1. Notwithstanding any other provision
     of     law, amounts scheduled in
     this item may be transferred to Item
     2660-101-0890, 2660-102-0890, or
     2660-301-0890. These transfers shall
     require the prior approval of the
     Department of Finance. These funds
     shall be available for allocation by
     the California Transportation
     Commission until June 30, 2010.
  2. For purposes of the Streets and
     Highways Code, all expenditures from
     this item shall be deemed to be
     expenditures from the State Highway
     Account, State Transportation Fund.
  3. Federal funds may be received from
     any federal source and shall be
     deposited in the Federal Trust Fund.
     Any federal reimbursements shall be
     credited to the account from which
     the     expenditures were originally
     made.
  4. No funds appropriated in this item
     are available for expenditure on
     specialty building facilities. For
     the purpose of this item, specialty
     building facilities are equipment
     facilities, maintenance facilities,
     material laboratories, and traffic
     management centers.
  5. Of the funds appropriated in this
     item, $100,000,000 is attributable
     to anticipated federal economic
     stimulus funding. The Director of
     Finance may decrease the authority
     in this item by up to $100,000,000
     if anticipated federal economic
     stimulus funding is not received.


  SEC. 13.  Item 3560-011-0347 is added to Section 2.00 of the Budget
Act of 2008, to read:
3560-011-0347--For transfer by the
Controller, upon order of the Director of
Finance, from the School Land Bank Fund to
the General Fund........................... (61,000,000)
      Provisions:
      1.     The amount transferred in this
             item is a loan to the General
             Fund. The repayment shall be
             made so as to ensure that the
             programs supported by the
             School Land Bank Fund are not
             adversely affected     by the
             loan, but no later than June
             30, 2013.


  SEC. 14.  Item 3680-011-0516 is added to Section 2.00 of the Budget
Act of 2008, to read:
3680-011-0516--For transfer by the
Controller, upon order of the Director of
Finance, from the Harbors and Watercraft
Revolving Fund to the General Fund......... (29,000,000)
      Provisions:
      1.     The amount transferred in this
             item is a loan to the General
             Fund. The repayment shall be
             made so as to ensure that the
             programs supported by the
             Harbors and Watercraft
             Revolving     Fund are not
             adversely affected by the
             loan, but no later than June
             30, 2013.


  SEC. 15.  Item 3790-001-0001 of Section 2.00 of the Budget Act of
2008 is amended to read:
3790-001-0001--For support of Department
of Parks and Recreation.................... 138,124,000
    Schedule:
    (1)   For support of the
          Department of Parks
          and Recreation.......  431,099,000
    (2)   Reimbursements.......  -33,441,000
    (3)   Less funding
          provided by capital
          outlay...............   -4,000,000
    (4)   Amount payable from
          the Safe
          Neighborhood Parks,
          Clean Water, Clean
          Air, and Coastal
          Protection Bond Fund
          (Item 3790-001-0005).   -5,057,000
    (5)   Amount payable from
          the California
          Environmental
          License Plate Fund
          (Item 3790-001-0140).   -3,023,000
    (6)   Amount     payable
          from the Public
          Resources Account,
          Cigarette and
          Tobacco Products
          Surtax Fund (Item
          3790-001-0235).......  -10,098,000
    (7)   Amount payable from
          the Off-Highway
          Vehicle Trust Fund
          (Item 3790-001-0263).  -64,243,000
    (8)   Amount payable from
          the State Parks and
          Recreation Fund
          (Item 3790-001-0392). -123,804,000
    (9)   Amount payable from
          the Winter
          Recreation Fund
          (Item 3790-001-0449).     -353,000
    (10)  Amount payable from
          the Harbors and
          Watercraft Revolving
          Fund (Item 3790-001-
          0516)................   -2,168,000
    (11)  Amount payable from
          the Federal Trust
          Fund (Item 3790-001-
          0890)................   -6,335,000
    (12)  Amount payable from
          the California Main
          Street Program Fund
          (Item 3790-001-3077).     -175,000
    (13)  Amount     payable
          from the California
          Clean Water, Clean
          Air, Safe
          Neighborhood Parks,
          and Coastal
          Protection Fund
          (Item 3790-001-6029).   -4,555,000
    (14)  Amount payable from
          the Water Security,
          Clean Drinking
          Water, Coastal and
          Beach Protection
          Fund of 2002 (Item
          3790-001-6031).......     -435,000
    (15)  Amount payable from
          Safe Drinking Water,
          Water Quality and
          Supply, Flood
          Control, River and
          Coastal Protection
          Fund of 2006 (Item
          3790-001-6051).......  -23,020,000
    (16)  Amount payable from
          Safe Drinking Water,
          Water Quality and
          Supply, Flood
          Control, River and
          Coastal Protection
          Fund of 2006 (Item
          3790-002-6051).......  -12,268,000
    Provisions:
    1.    Of the funds appropriated by this
          act from the General Fund and
          special funds, other than the Off-
          Highway Vehicle Trust Fund and
          bond funds, to the Department of
          Parks and Recreation for local
          assistance grants to local
          agencies, the department may
          allocate an amount not to exceed
          3.7 percent of each project's
          allocation, except to the extent
          otherwise restricted by law, to
          allow the department to
          administer its grants. Those
          funds shall be available for
          encumbrance or expenditure until
          June 30, 2014.
    2.    It is the intent of the
          Legislature that salaries, wages,
          operating expenses, and positions
          associated with implementing
          specific Department of Parks and
          Recreation capital outlay
          projects continue to be funded
          through capital outlay
          appropriations, and that these
          funds should also be reflected in
          the department's state operations
          budget in the Governor's Budget
          as a special item of expense
          reflecting the funding provided
          from the capital outlay
          appropriations.
    3.    Notwithstanding any other
          provision of law, the Director of
          Finance may authorize a loan from
          the General Fund, in an amount
          not to exceed 35 percent of
          reimbursements appropriated in
          this item to the Department of
          Parks and Recreation, provided
          that:
          (a)     The loan is to meet cash
                  needs resulting from the
                  delay in receipt of
                  reimbursements for
                  services provided.
          (b)     The loan is for a short
                  term and shall be repaid
                  by September 30, 2009.
          (c)     Interest charges may be
                  waived pursuant to
                  subdivision (e) of
                  Section 16314 of the
                  Government Code.
          (d)     The Director of Finance
                  may not approve the loan
                  unless the approval is
                  made in writing and filed
                  with the Chairperson of
                  the Joint Legislative
                  Budget Committee and the
                  chairpersons of the
                  committees in each house
                  of the Legislature that
                  consider appropriations
                  not later than 30 days
                  prior to the effective
                  date of     the approval,
                  or not sooner than
                  whatever lesser time that
                  the chairperson of the
                  joint committee, or his
                  or her designee, may
                  determine.
    4.    The Department of Parks and
          Recreation is authorized to enter
          into a contract for fee
          collection and other services
          required by the department with a
          cooperative association that has
          and will continue to fund state
          employees on an ongoing basis.
    5.    Of the amount appropriated in
          this item, $4,001,000 General
          Fund and $1,000,000 Proposition
          84 funds shall be used for
          continued remediation and
          treatment activities at Empire
          Mine State Historic Park. Upon
          approval and order of the
          Director of Finance, the
          Controller shall adjust the
          amount included in this item for
          remediation activities at Empire
          Mine based on the status or
          result of the mediation between
          the Department of Parks and
              Recreation and the Newmont Mining
          Company. Any adjustment for this
          purpose may be authorized no
          sooner than 30 days after written
          notification to the Chairperson
          of the Joint Legislative Budget
          Committee.
    6.    Notwithstanding any other
          provision of law, any
          expenditures during the 2008-09
          fiscal year, up to $11,000,000,
          for the purposes of implementing
          the Department of Parks and
          Recreation's multi-year plan to
          comply with the Americans with
          Disabilities Act shall only be
          funded from the appropriation
          made in Item 3790-001-6051.
    7.    Of the amount appropriated in
          Schedule (15), $11,000,000 for
          the purposes of implementing the
          Department of Parks and
          Recreation's multi-year plan to
          comply with the Americans with
          Disabilities Act shall be
          available for encumbrance or
          expenditure until June 30, 2011.


  SEC. 16.  Item 3790-001-6051 of Section 2.00 of the Budget Act of
2008 is amended to read:
3790-001-6051--For support of Department of
Parks and Recreation, payable to Item 3790-
001-0001, from the Safe Drinking Water,
Water Quality and Supply, Flood Control,      23,020,00
River and Coastal Protection Fund of 2006....         0
      Provisions:
      1.      Provision 5 of Item 3790-001-
              0001 also applies to this item.


  SEC. 17.  Item 3790-011-0263 is added to Section 2.00 of the Budget
Act of 2008, to read:
3790-011-0263--For transfer by the
Controller, upon order of the Director of
Finance, from the Off-Highway Vehicle
Trust Fund to the General Fund............. (90,000,000)
      Provisions:
      1.     The amount transferred in this
             item is a loan to the General
             Fund. The repayment shall be
             made so as to ensure that the
             programs supported by the Off-
             Highway Vehicle Trust Fund are
             not     adversely affected by
             the loan, but no later than
             June 30, 2013.


  SEC. 18.  Item 3910-004-0226 of Section 2.00 of the Budget Act of
2003 is amended to read:
3910-004-0226--For transfer by the
Controller, upon order of the Director of
Finance, from the California Tire
Recycling Management Fund to the General
Fund....................................... (17,097,000)
      Provisions:
      1.     The transfer made by this item
             is a loan to the General Fund.
             Notwithstanding any other
             provision of law, this loan
             shall be repaid with interest
             calculated at the rate earned
             by the Pooled Money Investment
             Account at the time of the
             transfer. It is the intent of
             the Legislature that repayment
             be made so as to ensure that
             the programs supported by this
             fund are not adversely
             affected by the loan.
      2.     Notwithstanding any other
             provision of law, $2,097,000
             of the amount transferred by
             this item shall be repaid in
             the second half of the 2011-12
             fiscal year, with interest
             calculated at the rate earned
             by the Pooled Money Investment
             Account at the time of the
             transfer. It is the intent of
             the Legislature that repayment
             be made so as to ensure that
             the programs supported by this
             fund are not adversely
             affected by the loan. The
             Director of Finance may
             therefore order that repayment
             be made prior to this date to
             avoid these adverse effects.


  SEC. 19.  Item 3910-004-0281 of Section 2.00 of the Budget Act of
2003 is amended to read:
3910-004-0281--For transfer by the
Controller, upon order of the Director of
Finance, from the Recycling Market
Development Revolving Loan Subaccount to the  (1,853,00
General Fund.................................        0)
      Provisions:
      1.      The transfer made by this item
              is a loan to the General Fund.
              Notwithstanding any other
              provision of the law, this loan
              shall be repaid in the second
              half of the     2011-12 fiscal
              year, with interest calculated
              at the rate earned by the
              Pooled Money Investment Account
              at the time of the transfer. It
              is the intent of the
              Legislature that repayment be
              made so as to ensure that the
              programs supported by this fund
              are not adversely affected by
              the loan. The Director of
              Finance may therefore order
              that repayment be made prior to
              this date to avoid these
              adverse effects.


  SEC. 20.  Item 3910-007-0387 of Section 2.00 of the Budget Act of
2003 is amended to read:
3910-007-0387--For transfer by the
Controller, upon order of the Director of
Finance, from the Integrated Waste            (4,768,00
Management Account to the General Fund ......        0)
      Provisions:
      1.      The transfer made by this item
              is a loan to the General Fund.
              Notwithstanding any other
              provision of law, this loan
              shall be repaid with interest
              calculated at the rate earned
              by     the Pooled Money
              Investment Account at the time
              of the transfer. It is the
              intent of the Legislature that
              repayment be made so as to
              ensure that the programs
              supported by this fund are not
              adversely affected by the loan.
      2.      Notwithstanding any other
              provision of law, $2,768,000 of
              the amount transferred by this
              item shall be repaid in the
              second half of the 2009-10
              fiscal year, with interest
              calculated at the rate earned
              by the Pooled Money Investment
              Account at the time of the
              transfer. It is the intent of
              the Legislature that repayment
              be made so as to ensure that
              the programs supported by this
              fund are not adversely affected
              by the loan. The Director of
              Finance may therefore order
              that repayment be made prior to
              this date to avoid these
              adverse effects.


  SEC. 21.  Item 3910-011-0226 is added to Section 2.00 of the Budget
Act of 2008, to read:
3910-011-0226--For transfer by the
Controller, upon order of the Director of
Finance, from the California Tire
Recycling Management Fund to the General
Fund ...................................... (10,000,000)
      Provisions:
      1.     The amount transferred in this
             item is a loan to the General
             Fund. The repayment shall be
             made so as to ensure that the
             programs supported by the
             California Tire Recycling
             Management Fund are not
             adversely affected by the
             loan, but no later than June
             30, 2011.


  SEC. 22.  Item 4140-011-0121 of Section 2.00 of the Budget Act of
2008 is amended to read:
4140-011-0121--For transfer by the
Controller, upon order of the Director of
Finance, from the Hospital Building Fund
to the General Fund........................ (20,000,000)
      Provisions:
      1.     The amount transferred by this
             item is a loan to the General
             Fund and shall be repaid by
             June 30, 2011. It is the
             intent of the Legislature that
             repayment be made so as to
             ensure that the activities
             supported by the Hospital
             Building Fund are not
             adversely affected by the loan.


  SEC. 23.  Item 4170-101-0001 of Section 2.00 of the Budget Act of
2008 is amended to read:
4170-101-0001--For local assistance,
Department of Aging......................... 44,870,000
    Schedule:
    (1)   10-Nutrition..........   72,804,000
    (2)   20-Senior Community
          Employment Service....    8,514,000
    (3)   30-Supportive
          Services and Centers..   66,466,000
    (4)   40-Special Projects...   46,751,000
    (5)   Reimbursements........   -4,559,000
    (6)   Amount payable from
          the State HICAP Fund
          (Item 4170-101-0289)..   -2,246,000
    (7)   Amount payable from
          the Federal Trust
          Fund (Item 4170-101-
          0890)................. -141,418,000
    (8)   Amount payable from
          the Federal Health
          Facilities Citation
          Penalties Account,
          Special Deposit Fund
          (Item 4170-103-0942)..   -1,442,000
    Provisions:
    1.    Notwithstanding Section 26.00, the
          Department of Finance, upon
          notification by the California
          Department of Aging, may authorize
          transfers between Program 10-
          Nutrition and Program 30-
          Supportive Services and Centers in
          response to budget revisions
          submitted by the Area Agencies on
          Aging.
    2.    To the extent the United States
          enacts a minimum wage equal to or
          greater than that of California,
          state funding provided in this
          item for the Senior Community
          Service Employment Program shall
          revert to the General Fund.
    3.    Of the funds appropriated in this
          item, the Controller shall
          reimburse from Program 40-Special
          Projects, $22,732,000 upon
          enactment of the Budget Act to the
          State Department of Health Care
          Services for support of the
          Multipurpose Senior Services
          Program.


  SEC. 24.  Item 4300-101-0001 of Section 2.00 of the Budget Act of
2008 is amended to read:
4300-101-0001--For local assistance,
Department of Developmental Services,
for Regional Centers..................... 2,354,099,000
    Schedule:
    (1)  10.10.010-
         Operations..........  521,216,000
    (2)  10.10.020-Purchase   3,330,454,00
         of Services.........            0
    (3)  10.10.060-Early
         Intervention
         Programs............   20,095,000
    (4)  Reimbursements...... -1,289,287,0
                                        00
    (5)  Amount payable from
         the Public
         Transportation
         Account, State
         Transportation Fund
         (Item 4300-101-
         0046)............... -138,275,000
    (6)  Amount payable from
         Developmental
         Disabilities
         Program
         Development Fund
         (Item 4300-101-
         0172)...............   -1,147,000
    (7)  Amount payable from
         Federal Trust Fund
         (Item 4300-101-
         0890)...............  -88,957,000
    Provisions:
    1.   Upon order of the Director of
         Finance, the Controller shall
         transfer such funds as are
         necessary     between this item
         and Item 4300-003-0001. Within
         10 working days after approval
         of a transfer as authorized by
         this provision, the Department
         of Finance shall notify the
         chairpersons of the fiscal
         committees in each house of the
         Legislature and the Chairperson
         of the Joint Legislative Budget
         Committee of the transfer,
         including the amount
         transferred, how the amount
         transferred was determined, and
         how the amount transferred will
         be utilized.
    2.   A loan shall be made available
         from the General Fund to the
         State Department of
         Developmental Services not to
         exceed a cumulative total of
         $160,000,000. The loan funds
         shall be transferred to this
         item as needed to meet cashflow
         needs due to delays in
         collecting reimbursements from
         the Health Care Deposit Fund,
         and are subject to the repayment
         provisions of Section 16351 of
         the Government     Code.
    3.   Upon order of the Director of
         Finance, the Controller shall
         transfer funds as are necessary
         between this item and Item 5160-
         001-0001 to provide for the
         transportation costs to and from
         work activity programs of
         clients who are receiving
         vocational rehabilitation
         services through the Vocational
         Rehabilitation/Work Activity
         Program (VR/WAP) Transition
         Program.
    4.   $1,826,000 of the funds
         appropriated in this item may be
         used to augment service provider
         rates for the work needed to
         obtain information to secure
         federal participation under the
         Home and Community-Based
         Services Waiver program.
         Eligible providers are those
         service providers who are
         qualified     providers under
         Title XIX of the Social Security
         Act, are not currently providing
         the required information, and
         are serving individuals enrolled
         under the Home and Community-
         Based Services Waiver program.
    5.   Notwithstanding Section 26.00,
         the Department of Finance may
         authorize transfer of
         expenditure authority between
         Schedules (1) and (2) in order
         to more accurately reflect
         expenditures in the Early
         Intervention federal grant
         program (Part C of the
         Individuals with Disabilities
         Education Act).
    6.   It is the intent of the
         Legislature for the State
         Department of Health Care
         Services and the State
         Department of Developmental
         Services to collaboratively work
         with     stakeholders, including
         providers and diverse
         constituency groups as deemed
         appropriate, regarding the
         bundling of rates for the
         reimbursement of intermediate
         care facilities for the
         developmentally disabled,
         including habilitative and
         nursing facilities. It is the
         intent of the Legislature that
         any changes made by the state
         shall be seamless to the
         providers of services affected
         by the changes, as well as to
         the consumers and their families
         that are provided services
         through the Regional Center
         system. The integrity of the
         individual program plan process
         described in the Lanterman
         Developmental Disabilities
         Services Act (Division 4.5
         (commencing with Section 4500)
         of the Welfare and Institutions
         Code) shall be maintained
         throughout this process and
         shall not be affected by any
         changes made to implement the
         bundled rates.
    7.   Of the     funds appropriated in
         Schedule (2), the amount
         identified by the State
         Department of Developmental
         Services for self-directed
         services shall be available for
         encumbrance until June 30, 2010,
         and for liquidation until June
         30, 2011.
    8.   Upon the order of the Department
         of Finance, the Controller shall
         transfer such funds as are
         necessary between this item and
         Item 4300-103-0001 in order to
         effectively administer the Self-
         Directed Services Risk Pool Fund.
    9.   It is the intent of the
         Legislature for the California
         Children and Families Commission
         to utilize at least $5,000,000
         in funds from any of its
         accounts for information,
         services, and supports provided
         under the Early Start Program as
         administered by the State
         Department of Developmental
         Services. This language is not
         intended to affect any
         contingencies or emergencies of
         which the Department of Finance
         may choose to notify the
         Legislature in the 2008-09
         fiscal year.


  SEC. 25.  Item 5180-111-0001 of Section 2.00 of the Budget Act of
2008 is amended to read:
5180-111-0001--For local assistance,
Department of Social Services............ 5,482,906,000
    Schedule:
    (1)  16.70-SSI/SSP....... 3,672,111,00
                                         0
    (2)  25.15-IHSS.......... 5,330,297,00
                                         0
    (3)  25.20-Recipient
         Supplementary
         Payment.............   44,176,000
    (4)  Reimbursements...... -3,563,678,0
                                        00
    Provisions:
    1.   Provisions 1 and 4 of Item 5180-
         101-0001 also apply to this item.
    2.   Notwithstanding Chapter 1
         (commencing with Section 18000)
         of Part 6 of Division 9 of the
         Welfare and Institutions Code, a
         loan not to exceed $240,000,000
         shall be made available from the
         General Fund from funds not
         otherwise appropriated, to cover
         the     federal share or
         reimbursable share, or both, of
         costs of a program or programs
         when the federal funds or
         reimbursements (from the Health
         Care Deposit Fund or counties)
         have not been received by this
         state prior to the usual time
         for transmitting payments for
         the federal or reimbursable
         share of costs for this state.
         That loan from the General Fund
         shall be repaid when the federal
         share of costs for the program
         or programs becomes available,
         or in the case of
         reimbursements, subject to
         Section 16351 of the Government
         Code. County reimbursements also
         shall be subject to Section
         16314 of the Government Code,
         which specifies the rate of
         interest. The department may
         offset a county's share of cost
         of the In-Home Supportive
         Services (IHSS) program against
         local assistance payments made
         to the county if the county
         fails to reimburse its share of
         cost of the IHSS program to the
         state.
    3.   The State Department of Social
         Services shall provide technical
         assistance to counties to ensure
         that they maximize the receipt
         of federal funds for the In-Home
         Supportive Services (IHSS)
         program, without compromising
         the quality of the services
         provided to IHSS recipients.
    4.   The Director of Finance may
         authorize the transfer of
         amounts from this item to Item
         5180-001-0001 in order to fund
         increased costs due to workload
         associated with the retroactive
         reimbursement of Medi-Cal
         services for the In-Home
         Supportive Services program to
         comply with the Conlan v. Shewry
         court decision. The Department
         of Finance shall report to the
         Legislature the amount to be
         transferred pursuant to this
         provision and the number of
         positions to be established by
         the State Department of Social
         Services.     The transfer shall
         be authorized at the time the
         report is made. The State
         Department of Social Services
         shall review the workload
         associated with the Conlan v.
         Shewry decision during the 2008-
         09 fiscal year and may
         administratively establish
         positions as the workload
         requires.
    5.   The Director of Finance may
         authorize the transfer of
         amounts from this item to Item
         5180-001-0001 in order to fund
         the cost of the administrative
         hearing process associated with
         changes in aid or service
         payments in the In-Home
         Supportive Services program. The
         Department of Finance shall
         report to the Legislature the
         amount to be transferred
         pursuant to this provision. The
         transfer shall be authorized at
         the time the report is made.


  SEC. 26.  Item 5225-101-0001 of Section 2.00 of the Budget Act of
2008 is amended to read:
5225-101-0001--For local assistance,
Department of Corrections and
Rehabilitation.............................. 171,141,000
    Schedule:
    (1)   15-Corrections
          Standards Authority...  106,577,000
    (2)   20-Juvenile
          Operations............       78,000
    (3)   22-Juvenile Paroles...    1,403,000
    (4)   25.15.010-Adult
          Corrections and
          Rehabilitation
          Operations--
          Transportation of
          Inmates...............      278,000
    (5)   25.15.020-Adult
          Corrections and
          Rehabilitation
          Operations-- Return
          of Fugitives..........    2,593,000
    (6)   25.30-Adult
          Corrections and
          Rehabilitation
          Operations-- County
          Charges...............   16,480,000
    (7)   30-Parole Operations-
          - Adult...............   43,732,000
    Provisions:
    1.    The amount appropriated in
          Schedules (4), (5), (6), and (7)
          is provided for the following
          purposes:
          (a)     To pay the transportation
                  costs of prisoners to and
                  between state prisons,
                  including the return of
                  parole violators to prison
                  and for the conveying of
                  persons under provisions
                  of Division 3 (commencing
                  with Section 3000) of the
                  Welfare and Institutions
                  Code and the Western
                  Interstate Corrections
                  Compact (Section 11190 of
                  the Penal Code), in
                  accordance with Section
                  26749 of the Government
                  Code. Claims filed by
                  local jurisdictions shall
                  be filed within six months
                  after the end of the month
                  in which those
                  transportation costs are
                  incurred. Expenditures
                  shall be charged to either
                  the fiscal year in which
                  the claim is received by
                  the Controller or the
                  fiscal year in which the
                  warrant is issued by the
                  Controller. Claims filed
                  by local jurisdictions
                  directly with the
                  Controller may be paid by
                  the Controller.
          (b)     To pay the expenses of
                  returning fugitives from
                  justice from outside the
                  state, in accordance with
                  Sections 1389, 1549, and
                  1557 of the Penal Code.
                  Claims filed by local
                  jurisdictions shall be
                  filed within six months
                  after the end of the month
                  in which expenses are
                  incurred. Expenditures
                  shall be charged to either
                  the fiscal year in which
                  the claim is received by
                  the Controller or the
                  fiscal year in which the
                  warrant is issued by the
                  Controller, and any
                  restitution received by
                  the state for those
                  expenses shall be credited
                  to the appropriation of
                  the year in which the
                  Controller's receipt is
                  issued. Claims filed by
                  local jurisdictions
                  directly with the
                  Controller may be paid by
                  the Controller.
          (c)     To pay county charges,
                  payable under Sections
                  4700.1, 4750 to 4755,
                  inclusive, and 6005 of the
                  Penal Code. Claims shall
                  be filed by local
                  jurisdictions within six
                  months after the end of
                  the month in which a
                  service is performed by
                  the coroner, a hearing is
                  held on the return of a
                  writ of habeas corpus, the
                  district attorney declines
                  to prosecute a case
                  referred by the Department
                  of Corrections and
                  Rehabilitation, a judgment
                  is rendered for a court
                  hearing or trial, an
                  appeal ruling is rendered
                  for the trial judgment, or
                  an activity is performed
                  as permitted by these
                  sections. Expenditures
                  shall be charged to either
                  the fiscal year in which
                  the claim is received by
                  the Controller or the
                  fiscal year in which the
                  warrant is issued by the
                  Controller. Claims filed
                  by local jurisdictions
                  directly with the
                  Controller may be paid by
                  the Controller.
          (d)     To reimburse counties for
                  the cost of detaining
                  state parolees pursuant to
                  Section 4016.5 of the
                  Penal Code. Claims shall
                  be filed by local
                  jurisdictions within six
                  months after the end of
                  the month in which the
                  costs are incurred. Claims
                  filed by local
                  jurisdictions may not
                  include booking fees, may
                  not recover detention
                  costs in excess of $77.17
                  per day, and shall be
                  limited to the detention
                  costs for those days on
                  which parolees are held
                  subject only to a
                        Department of Corrections
                  and Rehabilitation request
                  pursuant to subdivision
                  (b) of Section 4016.5 of
                  the Penal Code.
                  Expenditures shall be
                  charged to either the
                  fiscal year in which the
                  claim is received by the
                  Department of Corrections
                  and Rehabilitation or the
                  fiscal year in which the
                  warrant is issued.
    2.    Notwithstanding any other
          provision of law, upon 30-day
          prior notification to the
          Chairperson of the Joint
          Legislative Budget Committee,
          funds appropriated in Schedule (7)
          of this item may be transferred to
          Schedule (8) or (9), or both, of
          Item 5225-001-0001, upon order of
          the Director of Finance, to
          provide funds for the
          reimbursement of counties for the
          cost of holding parole violators
          in local jails or for the auditing
          or monitoring of local assistance
          costs.
    3.    The amounts appropriated in
          Schedules (2) and (3) are provided
          for the following purposes:
          (a)     To pay the transportation
                  costs of     persons
                  committed to the
                  Department of Corrections
                  and Rehabilitation to or
                  between its facilities,
                  including the return of
                  parole violators, provided
                  that expenditures made
                  under this item shall be
                  charged to either the
                  fiscal year in which the
                  claim is received by the
                  Controller or the fiscal
                  year in which the warrant
                  is issued by the
                  Controller. However,
                  claims shall be filed by
                  local jurisdictions within
                  six months after the end
                  of the month in which the
                  costs are incurred.
          (b)     To reimburse counties,
                  pursuant to Section 1776
                  of the Welfare and
                  Institutions Code, for the
                  cost of the detention of
                  the Department of
                  Corrections and
                  Rehabilitation parolees
                  who are detained on
                  alleged parole violations,
                  provided that expenditures
                  made under this item shall
                  be charged to either the
                  fiscal year in which the
                  claim is received by the
                  Controller or the fiscal
                  year in which the warrant
                  is issued by the
                  Controller. However,
                  claims shall be filed by
                  local jurisdictions within
                  six months after the end
                  of the month in which the
                  costs are incurred.


  SEC. 27.  Item 6440-001-0001 of Section 2.00 of the Budget Act of
2008 is amended to read:
6440-001-0001--For support of University
of California............................ 2,930,023,000
    Schedule:
    (1)  Support............. 3,118,116,00
                                         0
    (2)  Charles R. Drew
         Medical Program.....    8,738,000
    (3)  Acquired Immune
         Deficiency Syndrome
         (AIDS) Research.....    9,214,000
    (4)  Student Financial
         Aid.................   52,199,000
    (5)  Loan Repayments.....    5,105,000
    (6)  San Diego
         Supercomputer
         Center..............    3,240,000
    (8)  Unallocated
         Reduction........... -266,589,000
    Provisions:
    1.   The appropriations made in this
         item are exempt from Section
         31.00.
    2.   None of the funds appropriated
         in this item may be expended to
         initiate major capital outlay
         projects by contract without
         prior legislative approval,
         except for cogeneration and
         energy conservation projects.
         Funds appropriated in this item
         may be used for capital
         expenditures as well as payment
         of debt service for such
         exempted capital projects.
         Exempted projects shall be
         reported in a manner consistent
         with the reporting procedures in
         subdivision (e) of Section 28.00.
         Funds appropriated in this item
         may be used for capital
         expenditures as well as payment
         of debt service associated with
         the Energy Partnership Program,
         whereby the University of
         California will receive
         financial incentives from state
         investor-owned utilities to
         undertake energy conservation
         projects. The use of state
         operations funding for these
         energy savings projects may not
         infringe on the university's
         funding for its instructional
         support activities. The Director
         of Finance may authorize
         program expenditures for the
         list of planned projects not
         sooner than 30 days after
         notification in writing is
         provided to the chairpersons of
         the committees in each house of
         the Legislature that consider
         appropriations, the chairpersons
         of the committees and the
         appropriate subcommittees in
         each house of the Legislature
         that consider the State Budget,
         and the Chairperson of the Joint
         Legislative Budget Committee.
         The list of planned projects
         submitted for approval for a
         given funding cycle should be
         all-inclusive and may include
         projects that eventually may not
         be initiated during that funding
         cycle. A project not included on
         the list of planned projects for
         that funding cycle, but with
         which the university wishes to
         proceed during the budget year,
         may be treated as an exempted
         project as described above and
         reported in a manner consistent
         with the reporting procedures in
         subdivision (e) of Section
         28.00. No later than November 15
         of each year, the university
         shall prepare a report
         describing the identified
         projects funded under the Energy
         Partnership Program in the prior
         year. The report shall include
         the cost of each project, how
         the cost is being funded,
         including the amount funded from
         support budget funds and
         investor-owned utility incentive
         awards, and the projected amount
         of energy savings. These reports
         will sunset at the end of the
         program.
    3.   The funds appropriated in
         Schedule (2) are for support of
         University of California
         programs of clinical health
         sciences education, research,
         and public service, conducted in
         conjunction with the Charles R.
         Drew University of Medicine and
         Science, as provided for in
         Sections 1, 2, and 3 of Chapter
         1140 of the Statutes of 1973. Of
         the funds appropriated, $500,000
         is contingent upon the provision
         by the University of California
         of an equal amount of matching
         funds from its own
         resources. The University of
         California shall ensure by
         adequate controls that funds
         appropriated in Schedule (2) are
         expended solely for the support
         of the program identified in
         that schedule.
    4.   The funds appropriated in
         Schedule (4) are for support of
         Program 45, Student Financial
         Aid, to provide financial aid to
         needy students attending the
         University of California,
         according to the nationally
         accepted needs analysis
         methodology.
    5.   Of the funds appropriated in
         Schedule (1), $2,762,129 is for
         payment of energy service
         contracts in connection with the
         issuance of State Public Works
         Board Energy Efficiency Revenue
         Bonds.
    6.   Of the funds appropriated in
         Schedule (5), $2,700,000 is for
         repayment of $25,000,000
         borrowed by the University of
         California for deferred
         maintenance in the 1994-95
         fiscal year. It is the intent of
         the Legislature to annually
         provide funds for that repayment
         purpose through the 2009-10
         fiscal year.
    7.   Of the funds appropriated in
         Schedule (5), $2,405,000 is for
         repayment of $25,000,000
         borrowed by the University of
         California for deferred
         maintenance in the 1995-96
         fiscal year. It is the intent of
         the Legislature to annually
         provide funds for that repayment
         purpose through the 2010-11
         fiscal year.
    8.   Of the funds appropriated in
         Schedule (1), $1,897,200 is for
         the California State Summer
         School for Mathematics and
         Science (COSMOS). The University
         of California shall report on
         the outcomes and effectiveness
         of COSMOS every five years,
         commencing April 1, 2011.
    9.   The University of California
         (UC) shall report to the
         Legislature and the Governor by
         February 1 of each year on its
         progress toward increasing the
         quality and supply of science
         and mathematics teachers
         resulting from implementation of
         the Science and Math Teacher
         Initiative. This report shall
         include the following
         information: (a) annual number
         of mathematics and science
         teachers awarded credentials (by
         each UC campus) beginning with
         the 2004-05 academic year
         (before the     state first
         provided funding for the
         initiative), (b) an expenditure
         plan on the use of the funds
         appropriated in this item, (c)
         the effectiveness of the
         initiative's different
         components and activities,
         including an identification of
         best practices, and (d) the job
         placement of students who earn a
         mathematics or science teaching
         credential, including the
         location of the K-12 school of
         employment and whether it is in
         an urban, rural, or suburban
         setting.
    10.  The University of California
         shall report to the Legislature
         by March 15, 2009, on whether it
         has met its 2008-09 academic
         year enrollment goal.
    11.  Of the funds appropriated in
         Schedule (1), $1,050,000 is
         to support 70 full-time
         equivalent students in the
         Program in Medical Education
         (PRIME) at the Irvine, Davis,
         San Diego, and San Francisco
         campuses. The primary purpose of
         this program is to train
         physicians specifically to serve
         in underrepresented communities.
         The University of California
         shall report to the Legislature
         by March 15, 2009, on (a) its
         progress in implementing the
         PRIME program and (b) the use of
         the total funds provided for
         this program from both state and
         nonstate resources.
    12.  The university shall report to
         the Legislature and the Governor
         by May 1, 2009, on the total
         enrollment in the 2007-08 and
         2008-09 academic years in the
         entry-level clinical and
         master's degree nursing programs
         and the master's of science
         nursing degree programs.
    13.  It is the intent of the
         Legislature that the University
         of California submit an annual
         report by March 1 of each year
         through the 2010-11 fiscal year
         to the Joint Legislative Budget
         Committee, legislative fiscal
         subcommittees, and the
         Department of Finance on the
         university's progress in
         reforming its compensation
         policies and practices,
         reflecting the criteria
         specified in Provision 27 of
         Item 6440-001-0001 of the Budget
         Act of 2006 (Chs. 47 and 48,
         Stats. 2006).
    14.  Of the funds appropriated in
         Schedule (1), $19,300,000 is for
         student academic preparation and
         education programs (SAPEP) and
         is to be matched with
         $12,000,000 from existing
         university resources, for a
         total of $31,300,000 for these
         programs. The University     of
         California shall provide a plan
         to the Department of Finance and
         the fiscal committees of each
         house of the Legislature for
         expenditure of both state and
         university funds for SAPEP by
         September 1 of each year.
    15.  The amount appropriated in
         Schedule (1) reflects a
         reduction of $32,300,000 to
         institutional support.
    17.  Of the funds appropriated in
         Schedule (1), $693,000 is for
         the Welfare Policy Research
         Project, pursuant to Article 9.7
         (commencing with Section 11526)
         of Chapter 2 of Part 3 of
         Division 9 of the Welfare and
         Institutions Code.
    18.  Of the funds appropriated in
         Schedule (1), $427,500 shall be
         expended for the Center for
         Earthquake Engineering Research,
         contingent upon the center
         continuing to receive federal
         matching funds from the National
         Science Foundation.
    19.  Of the funds appropriated in
         Schedule (1), $346,500 shall be
         expended for viticulture and
         enology research, contingent
         upon the receipt of an equal
         amount of private sector
         matching funds.
    20.  Of the funds appropriated in
         Schedule (1), $16,200,000 is for
         substance abuse research at the
         Department of Neurology at the
         University of California, San
         Francisco.
    21.  Of the funds appropriated in
         Schedule (1), $693,000 shall be
         used for lupus research at the
         University of California, San
         Francisco.
    22.  Of the funds appropriated in
         Schedule (1), $1,385,100 shall
         be used to expand spinal cord
         injury research.
    23.  Of the funds appropriated in
         Schedule (1), $3,463,000 is to
         fund the Medical Investigation
         of Neurodevelopment Disorders
         (MIND) Institute, including
         $3,150,000 for a research grants
         program.
    24.  Of the funds appropriated in
         Schedule (1), $0 is to support
         research on labor and employment
         and labor education throughout
         the University of California
         system.
    25.  The amount appropriated in this
         item reflects a $5,000,000 one-
         time reduction to the Subject
         Matter Projects. An identical
         amount is appropriated in Item
         6110-195-0890 from federal Title
         II carryover funds to ensure the
         projects can be maintained in
         the 2008-09 fiscal year.
    26.  To the extent funds are
         available in Schedule (1), and
         contingent upon the receipt of
         an equal amount of private
         sector matching funds, the
         University of California shall
         allocate funds for the
         California Institute for
         Quantitative Biosciences     for
         the purpose of enhancing
         innovative, cost-effective
         technologies and therapies in
         health care.


  SEC. 28.  Item 6600-001-0001 of Section 2.00 of the Budget Act of
2008 is amended to read:
6600-001-0001--For support of Hastings
College of the Law......................... 10,229,000
      Provisions:
      1.     The appropriation made in this
             item is exempt from Section
             31.00.
      2.     The amount appropriated in
             this item reflects a 10-
             percent reduction to
             institutional support.


  SEC. 29.  Item 6610-001-0001 of Section 2.00 of the Budget Act of
2008 is amended to read:
6610-001-0001--For support of California
State University......................... 2,844,364,000
    Schedule:
    (1)  Support............. 3,082,555,00
                                         0
    (2)  Unallocated
         Reduction........... -238,191,000
    Provisions:
    1.   The appropriations made in this
         item are exempt from Section
         31.00, except as otherwise
         provided by the applicable
         sections of the Government Code
         referred to in Section 31.00.
    2.   Of the amount appropriated in
         this item, $350,000 is for
         transfer to the Affordable
         Student Housing Revolving Fund
         for the purpose of subsidizing
         interest costs in connection
         with bond financing for
         construction of affordable
         student housing at the Fullerton
         and Hayward campuses in
         accordance with Article 3
         (commencing with Section 90085)
         of Chapter 8 of Part 55 of
         Division 8 of Title 3 of the
         Education Code.
    3.   Of the amount appropriated in
         this item, $1,878,000 is for
         repayment of the $17,000,000
         financed for the California
         State University through a third
         party for deferred maintenance
         projects in the 1994-95 fiscal
         year. It is the intent of the
         Legislature to annually provide
         funds for that repayment purpose
         until June 30, 2010.
    4.   Of the amount appropriated in
         this item, $2,309,000 is for
         repayment of the $24,000,000
         financed for the California
         State University through a third
         party for deferred maintenance
         projects in the 1995-96 fiscal
         year. It is the intent of the
         Legislature to annually provide
         funds for that repayment purpose
         until June 30, 2011.
    5.   The California State University
         (CSU) shall report to the
         Legislature and the Governor by
         February 1 of each year on its
         progress toward increasing the
         quality and supply of science
         and mathematics teachers
         resulting from implementation of
         the Science and Math Teacher
         Initiative. This report shall
         include the following
         information: (a) annual number
         of mathematics and science
         teachers awarded credentials (by
         each CSU campus) beginning with
         the 2004-05 academic year
         (before the state first provided
         funding for the initiative), (b)
         an expenditure plan on the use
         of the funds appropriated in
         this item, (c) the effectiveness
         of the initiative's different
         components and activities,
         including an identification of
         best practices, and (d) the job
         placement of students who earn a
         math or science teaching
         credential, including the
         location of the K-12 school of
         employment and whether it is in
         an urban, rural, or suburban
         setting.
    6.   The California State University
         shall provide a preliminary
         report to the Legislature by
         March 15, 2009, and a final
         report by May 1, 2009, on
         whether it has met its 2008-09
         academic year enrollment goal.
    7.   The California State University
         shall report to the Legislature
         and the Governor by May 1, 2009,
         on the total enrollment in the
         2007-08 and 2008-09 academic
         years in the baccalaureate
         nursing degree and entry-level
         master's nursing degree programs.
    8.   The amount appropriated in
         Schedule (1) reflects a
         reduction of $43,199,000 to
         institutional support.
    9.   Of the amount appropriated in
         this item, $33,785,000 is
         provided for student financial
         aid grants. These financial aid
         funds shall be provided to needy
         students according to the
         nationally accepted needs
         analysis methodology.
    10.  Of the amount appropriated in
         Schedule (1), $52,000,000 is
         appropriated for student
         academic preparation and student
         support services programs. The
         California State University
         shall provide $45,000,000 to
         support the Early Academic
         Assessment Program and the
         Educational Opportunity Program.


  SEC. 30.  Item 6610-002-0001 of Section 2.00 of the Budget Act of
2008 is amended to read:
6610-002-0001--For support of the California
State University for transfer to and in
augmentation of Item 6610-001-0001, for the
purpose of providing direct costs and
administrative overhead expenses for the
Assembly, Senate, Executive, and Judicial
Fellows programs and the Center for
California Studies........................... 3,040,000
     Schedule:
     (1)    Center for California
            Studies-- Fellows
            Program...............     602,000
     (2)    Center for California
            Studies--  Other......      37,000
     (3)    Assembly Fellows......     565,287
     (4)    Senate Fellows........     565,287
     (5)    Executive Fellows.....     565,287
     (6)    Judicial Fellows......     402,139
     (7)    LegiSchool Project....     114,000
     (8)    Sacramento Semester
            Internship Program....      56,000
     (9)    Unscheduled...........     328,000
     (10)   Unallocated Reduction.    -195,000


  SEC. 31.  Item 8120-013-0268 is added to Section 2.00 of the Budget
Act of 2008 to read:
8120-013-0268--For transfer by the
Controller, upon order of the Director of
Finance, from the Peace Officers' Training    (5,000,00
Fund, to the General Fund....................        0)
      Provisions:
      1.      The amount transferred in this
              item is a loan to the General
              Fund and shall be repaid by
              December 31, 2010. This loan
              shall be repaid with interest
              calculated at the rate earned
              by the     Pooled Money
              Investment Account at the time
              of the transfer. Repayment
              shall be made so as to ensure
              that the programs supported by
              the Peace Officers' Training
              Fund are not adversely affected.


  SEC. 32.  Item 8660-011-0470 of Section 2.00 of the Budget Act of
2008 is amended to read:
8660-011-0470--For transfer by the
Controller from the California High-Cost
Fund-B Administrative Committee Fund to
the General Fund........................... (75,000,000)
      Provisions:
      1.     The amount transferred in this
             item is a loan to the General
             Fund and shall be repaid by
             June 30, 2011. Repayment shall
             be made so as to ensure that
             the programs supported by the
             California High-Cost     Fund-
             B Administrative Committee
             Fund are not adversely
             affected by the loan.


  SEC. 33.  Item 8660-011-0471 of Section 2.00 of the Budget Act of
2008 is amended to read:
8660-011-0471--For transfer by the
Controller from the Universal Lifeline
Telephone Service Trust Administrative
Committee Fund to the General Fund......... (45,000,000)
      Provisions:
      1.     The amount transferred in this
             item is a loan to the General
             Fund and shall be repaid by
             June 30, 2011. Repayment shall
             be made so as to ensure that
             the programs supported by the
             Universal Lifeline Telephone
             Service Trust Administrative
             Committee Fund are not
             adversely affected by the loan.


  SEC. 34.  Item 8660-011-0483 of Section 2.00 of the Budget Act of
2008 is amended to read:
8660-011-0483--For transfer by the
Controller from the Deaf and Disabled
Telecommunications Program Administrative
Committee Fund to the General Fund......... (30,000,000)
      Provisions:
      1.     The amount transferred in this
             item is a loan to the General
             Fund and shall be repaid by
             June 30, 2011. Repayment shall
             be made so as to ensure that
             the programs supported by the
             Deaf and Disabled
             Telecommunications Program
             Administrative Committee Fund
             are not adversely affected by
             the loan.


  SEC. 35.  Item 9210-101-0001 of Section 2.00 of the Budget Act of
2008 is amended to read:
9210-101-0001--For local assistance, Local
Government Financing....................... 124,950,000
      Provisions:
      1.     For allocation by the
             Controller to local
             jurisdictions for public
             safety as determined by the
             Director of Finance pursuant
             to Chapter 6.7 (commencing
             with Section     30061) of
             Division 3 of Title 3 of the
             Government Code.
      2.     Notwithstanding any other
             provision of law, the funds
             appropriated in this item
             shall be available for
             expenditure until June 30,
             2010. These funds shall be
             used to supplement and not
             supplant existing services.


  SEC. 36.  Section 3.90 is added to the Budget Act of 2008, to read:

  Sec. 3.90.  (a) Notwithstanding any other provision of this act,
each item of appropriation in this act, with the exception of those
items for the California State University, the University of
California, Hastings College of the Law, the Legislature (including
the Legislative Counsel Bureau), and the judicial branch, shall be
reduced, as appropriate, to reflect a reduction in employee
compensation achieved through the collective bargaining process for
represented employees or through existing administration authority
and a proportionate reduction for nonrepresented employees (utilizing
existing authority                                             of
the administration to adjust compensation for nonrepresented
employees) in the total amounts of $385,762,000 from General Fund
items and $285,196,000 from items relating to other funds. It is the
intent of the Legislature that General Fund savings of $1,024,326,000
and other fund savings of $688,375,000 in the 2009-10 fiscal year
shall be achieved in the same manner described above. The Director of
Finance shall allocate the necessary reduction to each item of
appropriation to accomplish the employee compensation reductions
required by this section.
   (b) The Department of Personnel Administration shall transmit
proposed memoranda of understanding to the Legislature promptly and
shall include with each such transmission estimated savings pursuant
to this section of each agreement.
   (c) Nothing in this section shall change or supersede the
provisions of the Ralph C. Dills Act (Chapter 10.3 (commencing with
Section 3512) of Division 4 of Title 1 of the Government Code).
  SEC. 37.  Section 8.25 is added to the Budget Act of 2008, to read:

  Sec. 8.25.  (a) Any amounts received in the 2008-09 and 2009-10
fiscal years from the federal government as part of an economic
stimulus or similar legislation shall be deposited in the Federal
Trust Fund. Notwithstanding Section 28.00, the Department of Finance
may authorize expenditure of these funds in a manner consistent with
federal law and that offsets General Fund expenditures otherwise
authorized in this act. The Director of Finance is authorized to
reduce any General Fund items of appropriations due to the receipt
and expenditure of these federal funds.
   (b) For any adjustments made under the authority of this section,
the Department of Finance shall provide notification in writing to
the Chairperson of the Joint Legislative Budget Committee not less
than 30 days prior to the effective date of the adjustment, or not
sooner than whatever lesser time the chairperson of the joint
committee, or his or her designee, may in each instance determine.
The notification to the chairperson of the joint committee shall
include, at a minimum, the amounts of the proposed appropriation
adjustments, a description of any assumptions used in making the
adjustments, and the relevant federal authority.
  SEC. 38.  Section 28.00 of the Budget Act of 2008 is amended to
read:
  Sec. 28.00.  (a) It is the intent of the Legislature in enacting
this section to provide flexibility for administrative approval of
augmentations for the expenditure of unanticipated federal funds or
other nonstate funds in cases that meet the criteria set forth in
this section. However, this section does not provide an alternative
budget process, and proposals for additional spending ordinarily
should be considered in the annual State Budget or other state
legislation. Specifically, augmentations for items which the
administration had knowledge to include in its 2008-09 budget plan
should not be submitted through the process provided by this section.
Augmentations for items which can be deferred to 2009-10 should be
included in the administration's 2009-10 budget proposals.
   (b) The Director of Finance may authorize the augmentation of the
amount available for expenditure for any program, project, or
function in the schedule of any appropriation in this act or any
additional program, project, or function equal to the amount of any
additional, unanticipated funds that he or she estimates will be
received by the state during the 2008-09 fiscal year from any agency
of local government or the federal government, or from any other
nonstate source, provided that the additional funding meets all of
the following requirements:
   (1) The funds will be expended for a purpose that is consistent
with state law.
   (2) The funds are made available to the state under conditions
permitting their use only for a specified purpose, and the additional
expenditure proposed under this section would apply to that
specified funding purpose.
   (3) Acceptance of the additional funding does not impose on the
state any requirement to commit or expend new state funds for any
program or purpose.
   (4) The need exists to expend the additional funding during the
2008-09 fiscal year.
   (c) In order to receive consideration for an augmentation, an
agency shall either (1) notify the director within 45 days of
receiving official notice of the availability of additional,
unanticipated funds, or (2) explain in writing to the director why
that notification was infeasible or impractical. In either case, the
recipient agency shall provide the director a copy of the official
notice of fund availability.
   (d) The director also may reduce any program, project, or function
whenever he or she determines that funds to be received will be less
than the amount taken into consideration in the schedule.
   (e) Any augmentation or reduction that exceeds either (1) $400,000
or (2) 10 percent of the amount available for expenditure in the
affected program, project, or function may be authorized not sooner
than 30 days after notification in writing of the necessity therefor
is provided to the chairpersons of the committees in each house of
the Legislature that consider appropriations, the chairpersons of the
committees, and the appropriate subcommittees, in each house of the
Legislature that consider the State Budget, and the Chairperson of
the Joint Legislative Budget Committee, or not sooner than whatever
lesser time the Chairperson of the Joint Legislative Budget
Committee, or his or her designee, may in each instance determine.
With regard to any proposed augmentation, the notification shall
state the basis for the determination by the director that the
augmentation meets each of the requirements set forth in subdivisions
(b) and (c). This notification shall include the date that the
recipient department received official notice of the additional
funds, and a copy of the agency's written explanation if a 45-day
notice was not provided to the director. This notification
requirement does not apply to federal funds related to caseload
increases in Medi-Cal, California Work Opportunity and Responsibility
to Kids (CalWORKs), and Supplemental Security Income/State
Supplementary Program (SSI/SSP).
   (f) Any personnel action that is dependent on funds subject to
this section shall not be effective until after the provisions of
this section have been complied with. Any authorization made pursuant
to this section shall remain in effect for the period the director
may determine in each instance, but in no event after June 30, 2009.
   (g) Any federal funds received as a result of federal legislation
enacted after January 1, 2009, shall be deemed unanticipated for the
purposes of this section.
  SEC. 39.  Section 35.10 is added to the Budget Act of 2008, to
read:
  Sec. 35.10.  (a) For purposes of subdivision (d) of Section 13308
of the Government Code, the Director of Finance shall provide to the
Legislature, on June 8, 2009, or six calendar days after the next
statewide election, whichever is later, instead of May 14, 2009, all
of the following: (a) an estimate of General Fund revenues for the
2008-09 and 2009-10 fiscal years, (b) any proposals to reduce
expenditures to reflect updated revenue estimates, and (c) all
proposed adjustments that are necessary to reflect updated estimates
of state funding required pursuant to Section 8 of Article XVI of the
California Constitution, or to reflect caseload enrollment or
population changes.
  SEC. 40.  This act addresses the fiscal emergency declared by the
Governor by proclamation on December 19, 2008, pursuant to
subdivision (f) of Section 10 of Article IV of the California
Constitution.
  SEC. 41.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
   In order that necessary adjustments by this act to the
appropriations in the Budget Act of 2003 and the Budget Act of 2008
for support of state government for the 2008-09 fiscal year be made
as soon as possible, to address the fiscal emergency declared by the
Governor, it is necessary that this act take effect immediately.