BILL NUMBER: AB 119	ENROLLED
	BILL TEXT

	PASSED THE SENATE  JUNE 10, 2011
	PASSED THE ASSEMBLY  JUNE 15, 2011
	AMENDED IN SENATE  JUNE 8, 2011

INTRODUCED BY   Committee on Budget (Blumenfield (Chair), Alejo,
Allen, Brownley, Buchanan, Butler, Cedillo, Chesbro, Dickinson,
Feuer, Gordon, Huffman, Mitchell, Monning, and Swanson)

                        JANUARY 10, 2011

   An act to amend Sections 965, 11545, 12432, 12803.6, 12803.65,
13996.45, 13996.55, 13996.6, 56425, and 63000 of, and to repeal
Sections 12803.7, 13996.5, and 15570 of, the Government Code, to
amend Section 1348.9 of the Health and Safety Code, and to amend
Sections 1275, 10205, 10529, 14012, and 15001 of the Unemployment
Insurance Code, relating to state government, making an appropriation
therefor, to take effect immediately, bill related to the budget.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 119, Committee on Budget. State government.
   (1) Existing law requires any claim for money or damages against
the state to be presented to the California Victim Compensation and
Government Claims Board within a specified period of time. Existing
law requires the board to provide notice to the chairpersons of the
committees in each house of the Legislature that consider
appropriations and the annual budget act, and the chairperson of the
Joint Legislative Budget Committee, within a specified period of time
prior to allowing either the use of a current year appropriation to
pay claims for prior year costs of $500,000 or more, or claims from a
single provider of goods or services with respect to a single
department that exceed $500,000 within one year.
   This bill would delete the requirement that the board provide
notice to the chairpersons of the committees in each house of the
Legislature that consider appropriations and the annual budget act,
and the chairperson of the Joint Legislative Budget Committee, prior
to allowing either the use of a current year appropriation to pay
claims for prior year costs of $500,000 or more, or claims from a
single provider of goods or services with respect to a single
department that exceed $500,000 within one year.
   (2) Existing law establishes the California Technology Agency
within state government, and requires the office to carry out
specified duties relating to creating and managing the technology
policy of the state. Existing law requires the agency to submit an
annual information technology performance report to the Joint
Legislative Budget Committee.
   This bill would modify the requirements of that report.
   Existing law requires the agency to submit an information
technology performance management framework to the Joint Legislative
Budget Committee by May 15, 2009, and to notify the Legislature if
the agency modifies that framework.
   This bill would modify the requirements of that framework.
   Existing law requires the agency to submit to the Director of
Finance an annual report that contains specified requirements.
   This bill would modify the requirements of that report, and
require that the agency also submit a copy of that report to
specified committees of the Legislature.
   Existing law establishes the Technology Services Revolving Fund,
to pay, upon appropriation by the Legislature, the agency's costs in
carrying out its duties.
   This bill would appropriate $1,000 from the fund to the agency for
administrative costs.
   (3) Existing law authorizes the Controller to administer the
effort to replace the current automated human resource/payroll
systems that the Controller operates, known as the 21st Century
Project. Existing law authorizes the Controller to assess certain
funds, as specified, in amounts sufficient to pay the costs of the
21st Century Project. Existing law repeals these provisions on June
30, 2011.
   This bill would make technical changes and additionally extend the
repeal date 3 years to June 30, 2014.
   (4) Existing law requires the Labor and Workforce Development
Agency, in collaboration with the California Health and Human
Services Agency, to develop a sustainable and comprehensive strategy
relating to the employment-related needs of individuals with
disabilities, including bringing adults with disabilities into
gainful employment, as specified. Existing law also requires the
Labor and Workforce Development Agency to monitor and enforce the
implementation of provisions of the federal Workforce Investment Act
of 1998 that relate to discrimination based on disability, among
other things.
   This bill would, commencing January 1, 2012, require that the
sustainable and comprehensive strategy bring all individuals with
disabilities, instead of only adults with disabilities, into gainful
employment.
   This bill would, commencing January 1, 2012, repeal various
outdated reporting requirements that relate to the federal Workforce
Investment Act of 1998.
   (5) Existing law requires the Governor to establish a California
Governor's Committee on Employment of People with Disabilities within
the Labor and Workforce Development Agency which has a prescribed
membership. The committee has prescribed duties, including making
grants available to counties and local workforce investment boards
for specified purposes relating to employment for individuals with
disabilities.
   This bill would, commencing January 1, 2012, rename the California
Governor's Committee on Employment of People with Disabilities as
the California Committee on Employment of People with Disabilities
and would establish the committee within the Department of
Rehabilitation. This bill would revise the membership of the
committee, as specified. The bill would revise the duties of the
committee to, among other things, require the committee to coordinate
an annual event for youth with disabilities, as specified, repeal
annual reporting requirements, and repeal the grant program.
   (6) Existing law requires the Secretary of Labor and Workforce
Development to lead the preparation of a biennial California Economic
Development Strategic Plan, as specified, and to convene a biennial
economic strategy panel, with a prescribed membership, to provide
recommendations regarding the plan.
   Existing law requires the Secretary of Business, Transportation
and Housing to complete a study on the potential roles of the state
in global markets, as prescribed.
   This bill would, commencing January 1, 2012, repeal these
provisions and make conforming changes.
   (7) The Cortese-Knox-Hertzberg Local Government Reorganization Act
of 2000 requires a local agency formation commission to develop and
determine the sphere of influence of each local governmental agency
within the county and periodically review and update the adopted
sphere of influence. Existing law requires a commission when
adopting, amending, or updating a sphere of influence for a special
district to establish the extent of any functions or classes provided
by existing districts, and to require existing districts to file
written statements with the commission specifying the functions or
classes of services provided by those districts.
   This bill would, instead, authorize a commission to require
existing districts to file written statements with the commission
specifying the functions or classes of services provided by those
districts.
   (8) Existing law, until January 1, 2012, authorizes the Director
of the Department of Managed Health Care to establish, by regulation,
the Consumer Participation Program, which allows the director to
award reasonable advocacy and witness fees to any person or
organization that represents consumers and has made a substantial
contribution on behalf of consumers to the adoption of a regulation
or with regard to an order or decision impacting a significant number
of enrollees.
   This bill would extend the authority to operate the Consumer
Participation Program until January 1, 2018.
   (9) Existing law provides for unemployment compensation benefits
for eligible individuals in the state who are unemployed through no
fault of their own. Existing law, for new claims filed on or after a
specified date, but no later than September 3, 2011, for which a
valid claim or benefit year cannot be established under the currently
defined base periods, establishes alternate base periods, as
provided. Existing law also requires the Employment Development
Department to implement the technical changes necessary to establish
claims under the alternate base period, as specified, as soon as
possible, but no later than September 3, 2011.
   This bill would extend to April 2, 2012, the time period within
which the department is required to implement those changes related
to the establishment of unemployment compensation benefit claims
under the alternate base period program and to implement the
necessary technical changes.
   (10) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
   Appropriation: yes.


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

  SECTION 1.  Section 965 of the Government Code is amended to read:
   965.  (a) Upon the allowance by the California Victim Compensation
and Government Claims Board of all or part of a claim for which the
Director of Finance certifies that a sufficient appropriation for the
payment of the claim exists, and the execution and presentation of
documents the board may require which discharge the state of all
liability under the claim, the board shall designate the fund from
which the claim is to be paid and the state agency concerned shall
pay the claim from that fund. If there is no sufficient appropriation
for the payment available, the board shall report to the Legislature
in accordance with Section 912.8. Claims arising out of the
activities of the State Department of Transportation may be paid if
either the Director of Transportation or the Director of Finance
certifies that a sufficient appropriation for the payment of the
claim exists.
   (b) Notwithstanding subdivision (a), if there is no sufficient
appropriation for the payment of claims, settlements, or judgments
against the state arising from an action in which the state is
represented by the Attorney General, the Attorney General shall
report the claims, settlements, and judgments to the Chairperson of
either the Senate Committee on Appropriations or the Assembly
Committee on Budget, who shall cause to be introduced legislation
appropriating funds for the payment of the claims, settlements, or
judgments.
   (c) Notwithstanding subdivision (a) or (b), claims, settlements,
or judgments arising out of the activities of a judicial branch
entity, as defined by Sections 900.3 and 940.3, or a judge thereof
may be paid if the Judicial Council authorizes payment and the
Administrative Director of the Courts certifies that sufficient funds
for that payment exist from funds allocated to settlement,
adjustment, and compromise of actions and claims. If sufficient funds
for payment of settlements or judgments do not exist, the
Administrative Director of the Courts shall report the settlements
and judgments to the Chairperson of either the Senate Committee on
Appropriations or the Assembly Committee on Budget, who shall cause
to be introduced legislation appropriating funds for the payment of
the settlements or judgments. If sufficient funds for payment of
claims do not exist, the Administrative Director of the Courts shall
report the claims to the California Victim Compensation and
Government Claims Board, which shall have 90 days to object to
payment. The Administrative Director of the Courts shall confer with
the chairperson of the California Victim Compensation and Government
Claims Board regarding any objection received during the 90-day
period. If the California Victim Compensation and Government Claims
Board withdraws the objection, or if no objection was received, the
Administrative Director of the Courts shall report the claims to the
Chairperson of either the Senate Committee on Appropriations or the
Assembly Committee on the Budget, who shall cause to be introduced
legislation appropriating funds for the payment of the claims. The
Judicial Council may authorize any committee of the Judicial Council
or any employee of the Administrative Office of the Courts to perform
the functions of the Judicial Council under this section. The
Administrative Director of the Courts may designate an executive
staff member of the Administrative Office of the Courts to perform
the functions of the Administrative Director of the Courts under this
section.
  SEC. 2.  Section 11545 of the Government Code is amended to read:
   11545.  (a) (1) There is in state government the California
Technology Agency. The Secretary of California Technology shall be
appointed by, and serve at the pleasure of, the Governor, subject to
Senate confirmation. The Secretary of California Technology shall
supervise the California Technology Agency and be a member of the
Governor's cabinet.
   (2) Unless the context clearly requires otherwise, whenever the
term "office of the State Chief Information Officer" appears in any
statute, regulation, or contract, it shall be construed to refer to
the California Technology Agency, and whenever the term "State Chief
Information Officer" appears in any statute, regulation, or contract,
it shall be construed to refer to the Secretary of California
Technology.
   (b) The duties of the Secretary of California Technology shall
include, but are not limited to, all of the following:
   (1) Advising the Governor on the strategic management and
direction of the state's information technology resources.
   (2) Establishing and enforcing state information technology
strategic plans, policies, standards, and enterprise architecture.
This shall include the periodic review and maintenance of the
information technology sections of the State Administrative Manual,
except for sections on information technology procurement procedures,
and information technology fiscal policy. The Secretary of
California Technology shall consult with the Director of General
Services, the Director of Finance, and other relevant agencies
concerning policies and standards these agencies are responsible to
issue as they relate to information technology.
   (3) Minimizing overlap, redundancy, and cost in state operations
by promoting the efficient and effective use of information
technology.
   (4) Providing technology direction to agency and department chief
information officers to ensure the integration of statewide
technology initiatives, compliance with information technology
policies and standards, and the promotion of the alignment and
effective management of information technology services. Nothing in
this paragraph shall be deemed to limit the authority of a
constitutional officer, cabinet agency secretary, or department
director to establish programmatic priorities and business direction
to the respective agency or department chief information officer.
   (5) Working to improve organizational maturity and capacity in the
effective management of information technology.
   (6) Establishing performance management and improvement processes
to ensure state information technology systems and services are
efficient and effective.
   (7) Approving, suspending, terminating, and reinstating
information technology projects.
   (8) Performing enterprise information technology functions and
services, including, but not limited to, implementing Geographic
Information Systems (GIS), shared services, applications, and program
and project management activities in partnership with the owning
agency or department.
   (c) The Secretary of California Technology shall produce an annual
information technology strategic plan that shall guide the
acquisition, management, and use of information technology. State
agencies shall cooperate with the agency in the development of this
plan, as required by the Secretary of California Technology.
   (1) Upon establishment of the information technology strategic
plan, the Secretary of California Technology shall take all
appropriate and necessary steps to implement the plan, subject to any
modifications and adjustments deemed necessary and reasonable.
   (2) The information technology strategic plan shall be submitted
to the Joint Legislative Budget Committee by January 15 of every
year.
   (d) The Secretary of California Technology shall produce an annual
information technology performance report that shall assess and
measure the state's progress toward enhancing information technology
human capital management; reducing and avoiding costs and risks
associated with the acquisition, development, implementation,
management, and operation of information technology assets,
infrastructure, and systems; improving energy efficiency in the use
of information technology assets; enhancing the security,
reliability, and quality of information technology networks,
services, and systems; and improving the information technology
procurement process. The agency shall establish those policies and
procedures required to improve the performance of the state's
information technology program.
   (1) The agency shall submit an information technology performance
management framework to the Joint Legislative Budget Committee by May
15, 2009, accompanied by the most current baseline data for each
performance measure or metric contained in the framework. The
information technology performance management framework shall include
the performance measures and targets that the agency will utilize to
assess the performance of, and measure the costs and risks avoided
by, the state's information technology program. The agency shall
provide notice to the Joint Legislative Budget Committee within 30
days of making changes to the framework. This notice shall include
the rationale for changes in specific measures or metrics.
   (2) State agencies shall take all necessary steps to achieve the
targets set forth by the agency and shall report their progress to
the agency on a quarterly basis.
   (3) Notwithstanding Section 10231.5, the information technology
performance report shall be submitted to the Joint Legislative Budget
Committee by January 15 of every year. To enhance transparency, the
agency shall post performance targets and progress toward these
targets on its public Internet Web site.
   (4) The agency shall at least annually report to the Director of
Finance cost savings and avoidances achieved through improvements to
the way the state acquires, develops, implements, manages, and
operates state technology assets, infrastructure, and systems. This
report shall be submitted in a timeframe determined by the Department
of Finance and shall identify the actual savings achieved by each
office, department, and agency. Notwithstanding Section 10231.5, the
agency shall also, within 30 days, submit a copy of that report to
the Joint Legislative Budget Committee, the Senate Committee on
Appropriations, the Senate Committee on Budget and Fiscal Review, the
Assembly Committee on Appropriations, and the Assembly Committee on
Budget.
  SEC. 3.  Section 12432 of the Government Code is amended to read:
   12432.  (a) The Legislature hereby finds and declares that it is
essential for the state to replace the current automated human
resource/payroll systems operated by the Controller to ensure that
state employees continue to be paid accurately and on time and that
the state may take advantage of new capabilities and improved
business practices. To achieve this replacement of the current
systems, the Controller is authorized to procure, modify, and
implement a new human resource management system that meets the needs
of a modern state government. This replacement effort is known as
the 21st Century Project.
   (b) Notwithstanding any other law, beginning with the 2004-05
fiscal year, the Controller may assess the special and
nongovernmental cost funds in sufficient amounts to pay for the
authorized 21st Century Project costs that are attributable to those
funds. Assessments in support of the expenditures for the 21st
Century Project shall be made quarterly, and the total amount
assessed from these funds annually shall not exceed the total
expenditures incurred by the Controller for the 21st Century Project
that are attributable to those funds in that fiscal year.
Appropriations for this purpose shall be made in the annual Budget
Act.
   (c) To the extent permitted by law, beginning with the 2004-05
fiscal year, the Controller shall establish agreements with various
agencies and departments for the collection from federal funds of
costs that are attributable to federal funds. The total amount
collected from those agencies and departments annually shall not
exceed the total expenditures incurred by the Controller for the 21st
Century Project that are attributable to federal funds in that
fiscal year. Appropriations for that purpose shall be made in the
annual Budget Act.
   (d) It is the intent of the Legislature that, beginning not
earlier than the 2006-07 fiscal year, future annual Budget Acts
include General Fund appropriations in sufficient amounts for
expenditures for the 21st Century Project that are attributable to
the General Fund. It is the Legislature's intent that the share of
the total project costs paid for by the General Fund shall be
equivalent to the share of the total project costs paid for from
special and nongovernmental cost fund assessments and collections
from federal funds.
   (e) This section shall remain in effect only until June 30, 2014,
and as of that date is repealed, unless a later enacted statute, that
is enacted before June 30, 2014, deletes or extends that date.
  SEC. 4.  Section 12803.6 of the Government Code is amended to read:

   12803.6.  (a) The Governor shall authorize the Secretary of the
Labor and Workforce Development Agency, in collaboration with the
secretary of the California Health and Human Services Agency, to make
available the expertise of state employees and programs to support
the employment-related needs of individuals with disabilities. Using
existing resources, the agencies shall develop a sustainable,
comprehensive strategy to do all of the following:
   (1) Bring individuals with disabilities into gainful employment at
a rate that is as close as possible to that of the general
population.
   (2) Support the goals of equality of opportunity, full
participation, independent living, and economic self-sufficiency for
these individuals.
   (3) Ensure that state government is a model employer of
individuals with disabilities.
   (4) Support state coordination with, and participation in,
benefits planning training and information dissemination projects
supported by private foundations and federal grants.
   (b) The Labor and Workforce Development Agency shall monitor and
enforce implementation of Section 188 of the federal Workforce
Investment Act of 1998 (29 U.S.C. Sec. 2938).
  SEC. 5.  Section 12803.65 of the Government Code is amended to
read:
   12803.65.  (a) The Governor shall rename and establish, in the
California Health and Human Services Agency, Department of
Rehabilitation, the existing "California Governor's Committee on
Employment of People with Disabilities" as the "California Committee
on Employment of People with Disabilities."
   (b) (1) The California Committee on Employment of People with
Disabilities shall include, but not be limited to, the following:
   (A) Four individuals with disabilities representing disabled
persons, one each appointed by the Senate Committee on Rules and the
Speaker of the Assembly and two appointed by the Secretary of
California Health and Human Services, each for a three-year term.
   (B) The Directors of the Employment Development Department, State
Department of Health Care Services, State Department of Mental
Health, State Department of Developmental Services, State Department
of Social Services, and Department of Rehabilitation, and the Chair
of the State Independent Living Council.
   (C) A representative from the California Health Incentive
Improvement Project.
   (D) A representative from the California Workforce Investment
Board who is nominated by that board.
   (E) At the discretion of the Secretary of California Health and
Human Services, representatives from any other department or program
that may have a role in increasing the capacity of state programs to
support the employment-related needs of individuals with
disabilities.
   (F) A representative from a local one-stop or local workforce
investment board, to be nominated by the California Workforce
Investment Board.
   (G)Three business representatives with experience in employing
persons with disabilities, to be appointed by the Secretary of
California Health and Human Services.
   (2) The members of the California Committee on Employment of
People with Disabilities shall select a chair from among the members,
and shall hold open meetings no less than four times a year.
   (c) The California Committee on Employment of People with
Disabilities shall consult with and advise the Labor and Workforce
Development Agency and the California Health and Human Services
Agency on all issues related to full inclusion in the workforce of
persons with disabilities, including development of the comprehensive
strategy required pursuant to Section 12803.6.
   (d) The California Committee on Employment of People with
Disabilities shall coordinate and provide leadership, as necessary,
with regard to efforts to increase inclusion in the workforce of
persons with disabilities, including, but not limited to, one annual
event for youth with disabilities, to the extent funding is
available.
   (e) The California Committee on Employment of People with
Disabilities shall meet four times a year with the California Health
Incentive Improvement Project and the project's steering committee,
to the extent funding for the project continues and the activities of
the California Committee on Employment of People with Disabilities
are not inconsistent with the charge of the California Health
Incentive Improvement Project.
   (f) Using existing funding, the California Committee on Employment
of People with Disabilities shall facilitate, promote, and
coordinate collaborative dissemination of information on employment
supports and benefits, which shall include the Ticket to Work program
and health benefits, to individuals with disabilities, consumers of
public services, employers, service providers, and state and local
agency staff.
   (g) Using existing funding, the California Committee on Employment
of People with Disabilities shall receive primary administrative and
staff support from the Department of Rehabilitation, subject to
funding from the Employment Development Department.
  SEC. 6.  Section 12803.7 of the Government Code is repealed.
  SEC. 7.  Section 13996.45 of the Government Code is amended to
read:
   13996.45.  (a) (1) Subject to paragraph (2), and subject to
Section 13996.75, the Business, Transportation and Housing Agency
shall be the primary state agency authorized to do all of the
following:
   (A) Attract employment-producing foreign investment to the state.
   (B) Cooperate in international public infrastructure projects.
   (C) Provide support for California business in accessing
international markets, including, but not limited to, export
assistance.
   (D) Engage in other trade or foreign investment related activities
specifically assigned by the Governor.
   (2) Nothing in this chapter shall be construed to confer powers or
impose duties upon the agency in conflict with any powers conferred
or duties imposed upon the Department of Food and Agriculture with
respect to the promotion of California agriculture, fish, and forest
exports.
   (b) The international trade and investment activities of the
agency shall be monitored by the Legislature, and all public moneys
in its budget expended for those purposes, shall be subject to
approval by the Legislature.
   (c) The Secretary of Business, Transportation and Housing shall
develop an international trade and investment policy and shall
provide guidance to strategies and plans from other agencies and
departments related to workforce and infrastructure development.
   (d) California's international trade and investment policy shall
be directed through its state strategy, which shall be based on
current and emerging market conditions and the needs of investors,
businesses, and workers to be competitive in global markets.
  SEC. 8.  Section 13996.5 of the Government Code is repealed.
  SEC. 9.  Section 13996.55 of the Government Code is amended to
read:
   13996.55.  (a) The Secretary of Business, Transportation and
Housing shall provide to the Legislature, not later than February 1,
2008, a strategy for international trade and investment that, at a
minimum, includes all of the following:
   (1) Policy goals, objectives, and recommendations necessary to
implement a comprehensive international trade and investment program
for the State of California. This information shall be provided in a
fashion that clearly indicates priority within the overall strategy.
   (2) Measurable outcomes and timelines for the goals, objectives,
and actions for the international trade and investment program.
   (3) Identification of impediments for achieving goals and
objectives.
   (4) Identification of key stakeholder partnerships that will be
used in implementing the strategy.
   (5) Identification of options for funding recommended actions.
   (6) Identification of an international trade and investment
organizational structure for the state administration of
international trade and investment policies, programs, and services.
   (b) In the course of developing the strategy, the secretary shall
also consult with other agencies, boards, and commissions that have
statutory responsibilities related to workforce development,
infrastructure, business, and international trade and investment
including, but not limited to, the California Commission on
Industrial Innovation, the Office of the Small Business Advocate, the
California Transportation Commission, the California Community
Colleges, the University of California, the California State
University, the Workforce Investment Board, the Employment Training
Panel, and the California Energy Commission.
   (c) The strategy shall be submitted to the Chief Clerk of the
Assembly and the Secretary of the Senate. A copy of the strategy
shall be provided to the Speaker of the Assembly, the President pro
Tempore of the Senate, and the chairs of the Assembly Committee on
Jobs, Economic Development, and the Economy and the Senate Committee
on Business, Professions and Economic Development, or the successor
committees with jurisdiction over international trade and economic
development programs.
   (d) (1) The strategy shall be reviewed in at least one public
hearing by the relevant policy and fiscal committees of each house of
the Legislature. The hearings shall be held within 60 days of the
strategy being submitted to the Legislature. If the strategy is
submitted when the Legislature is in recess, the hearings shall occur
within 60 days of the members convening.
   (2) The legislative committees may make recommendations to the
secretary on the strategy, and the secretary may modify the strategy
accordingly.
   (e) The secretary shall report to the fiscal committees of the
Legislature on or before February 1, 2009, and by that date each year
thereafter, on how the Governor's proposed budget relates to the
strategy.
   (f) The strategy shall be updated pursuant to the procedures of
this section at least once every five years.
  SEC. 10.  Section 13996.6 of the Government Code is amended to
read:
   13996.6.  (a) The Secretary of Business, Transportation and
Housing shall convene a statewide business partnership for
international trade and investment no later than March 1, 2007.
   (b) The business partnership shall include representatives from
small, medium, and large businesses and industries, as well as
nongovernmental organizations and government representatives.
   (c) The business partnership shall advise the secretary on
business needs and strategy priorities as they relate to
international trade and investment.
  SEC. 11.  Section 15570 of the Government Code is repealed.
  SEC. 12.  Section 56425 of the Government Code is amended to read:
   56425.  (a) In order to carry out its purposes and
responsibilities for planning and shaping the logical and orderly
development and coordination of local governmental agencies to
advantageously provide for the present and future needs of the county
and its communities, the commission shall develop and determine the
sphere of influence of each local governmental agency within the
county and enact policies designed to promote the logical and orderly
development of areas within the sphere.
   (b) Prior to a city submitting an application to the commission to
update its sphere of influence, representatives from the city and
representatives from the county shall meet to discuss the proposed
new boundaries of the sphere and explore methods to reach agreement
on development standards and planning and zoning requirements within
the sphere to ensure that development within the sphere occurs in a
manner that reflects the concerns of the affected city and is
accomplished in a manner that promotes the logical and orderly
development of areas within the sphere. If an agreement is reached
between the city and county, the city shall forward the agreement in
writing to the commission, along with the application to update the
sphere of influence. The commission shall consider and adopt a sphere
of influence for the city consistent with the policies adopted by
the commission pursuant to this section, and the commission shall
give great weight to the agreement to the extent that it is
consistent with commission policies in its final determination of the
city sphere.
   (c) If the commission's final determination is consistent with the
agreement reached between the city and county pursuant to
subdivision (b), the agreement shall be adopted by both the city and
county after a noticed public hearing. Once the agreement has been
adopted by the affected local agencies and their respective general
plans reflect that agreement, then any development approved by the
county within the sphere shall be consistent with the terms of that
agreement.
   (d) If no agreement is reached pursuant to subdivision (b), the
application may be submitted to the commission and the commission
shall consider a sphere of influence for the city consistent with the
policies adopted by the commission pursuant to this section.
   (e) In determining the sphere of influence of each local agency,
the commission shall consider and prepare a written statement of its
determinations with respect to each of the following:
   (1) The present and planned land uses in the area, including
agricultural and open-space lands.
   (2) The present and probable need for public facilities and
services in the area.
   (3) The present capacity of public facilities and adequacy of
public services that the agency provides or is authorized to provide.

   (4) The existence of any social or economic communities of
interest in the area if the commission determines that they are
relevant to the agency.
   (f) Upon determination of a sphere of influence, the commission
shall adopt that sphere.
   (g) On or before January 1, 2008, and every five years thereafter,
the commission shall, as necessary, review and update each sphere of
influence.
   (h) The commission may recommend governmental reorganizations to
particular agencies in the county, using the spheres of influence as
the basis for those recommendations. Those
                       recommendations shall be made available, upon
request, to other agencies or to the public. The commission shall
make all reasonable efforts to ensure wide public dissemination of
the recommendations.
   (i) When adopting, amending, or updating a sphere of influence for
a special district, the commission shall establish the nature,
location, and extent of any functions or classes of services provided
by existing districts.
   (j) When adopting, amending, or updating a sphere of influence for
a special district, the commission may require existing districts to
file written statements with the commission specifying the functions
or classes of services provided by those districts.
  SEC. 13.  Section 63000 of the Government Code is amended to read:
   63000.  The Legislature finds and declares the following:
   (a) Economic revitalization, future development, and a healthy
climate for jobs in California will depend upon a well-conceived
system of public improvements that are essential to the economic
well-being of the citizens of the state and are necessary to
maintain, as well as create, employment within the state for
business.
   (b) It is necessary for public policy to support the efforts of
businesses attempting to expand, businesses seeking to locate in
California, and local economic development organizations, public
agencies, and new entrepreneurs by dedicating public fiscal resources
to confront obstacles and barriers that impede economic growth.
   (c) Existing mechanisms that coordinate federal, state, local, and
private financial resources are inadequate to attract and sustain
that level of private investment that is essential to a growth
economy.
   (d) In order to secure and enhance the economic well-being of
Californians, promote economic development in the state, and provide
a healthy climate for the creation of jobs, it is necessary for
public policy to support the efforts of expanding businesses,
businesses seeking to locate in California, local development
organizations, public bodies, and new entrepreneurs to gain access to
capital through current and potential operations of financial
markets.
   (e) The high cost and the lack of availability of industrial loans
for small- and medium-size businesses is making it difficult for
thousands of these enterprises to get established, to maintain their
present employment levels, or to expand employment.
   (f) The problem of access to capital is acute in the high
technology industry clusters because companies must often finance
large capital expenditures early in their development cycle, and
cannot obtain financing sufficient to cover the cost of those
expenditures. Consideration should be given to industry clusters that
may include the following:
   (1) Health care technology.
   (2) Multimedia.
   (3) Environmental technology.
   (4) Information technology.
   (g) The high cost and limited availability of loans and capital
has led a number of states to take action to remedy these conditions
through concerted public and private investment programs that include
efforts to do the following:
   (1) Use the state's access to capital markets more effectively for
economic development.
   (2) Create financing pools to access national capital markets or
help government sponsors and public-private economic development
organizations obtain credit enhancement on their own.
   (3) Facilitate credit enhancement for selected specific projects.
   (4) Provide or arrange for loan insurance.
   (5) Create and support secondary markets for loan portfolios of
urban and rural economic development corporations and others.
   (6) Improve access to international capital markets.
   (7) Provide opportunities for public pension funds and other
institutional investors to play a larger role in state economic
development.
   (8) Arrange for or provide subordinated debt for selected
projects.
   (9) Increase support for local infrastructure development.
   (h) Local governments in California bear a primary responsibility
for the business of promoting job creation and economic development
efforts. California's continued reliance on autonomous local entities
often fails to adequately consider regional impacts of business
expansion. Projects of a regional nature need the benefit of a state
coordinating function to augment and enhance local economic
development and environmental efforts.
   (i) The State of California has not embarked on a major
infrastructure financing effort since the decade of the 1960's,
despite persistent unemployment and soaring population growth.
   (j) California's ability to compete in a global economy depends
upon its capacity to implement policies that take maximum advantage
of public and private resources at the local, regional, state, and
national levels. These policies should be coordinated with any future
legislative plan involving growth management strategies designed to
make economic growth compatible with environmental protections. It is
the intent of the Legislature in enacting this act to create a
mechanism to finance projects needed to implement economic
development and job creation and growth management strategies, and to
provide a secure and stable funding source for implementation of
this act in order to meet critical economic, social, and
environmental concerns.
   (k) The State of California needs a financing entity structured
with broad authority to issue bonds, provide guarantees, and leverage
state and federal funds using techniques that will target public
investment to facilitate economic development. The goal is to produce
more private sector jobs with less public sector investment.
   (  l  ) The mechanisms for financing public improvements
and private job creation strategies provided for in this act are in
the public interest, serve a public purpose, and will promote the
health, welfare, and safety of the citizens of the state.
   (m) The public policies and responsibilities of the state,
including all of the above purposes and functions, cannot be fully
obtained without the use of financing assistance and can be most
effectively furthered by the creation of the California
Infrastructure and Economic Development Bank.
  SEC. 14.  Section 1348.9 of the Health and Safety Code is amended
to read:
   1348.9.  (a) On or before July 1, 2003, the director shall adopt
regulations to establish the Consumer Participation Program, which
shall allow for the director to award reasonable advocacy and witness
fees to any person or organization that demonstrates that the person
or organization represents the interests of consumers and has made a
substantial contribution on behalf of consumers to the adoption of
any regulation or to an order or decision made by the director if the
order or decision has the potential to impact a significant number
of enrollees.
   (b) The regulations adopted by the director shall include
specifications for eligibility of participation, rates of
compensation, and procedures for seeking compensation. The
regulations shall require that the person or organization demonstrate
a record of advocacy on behalf of health care consumers in
administrative or legislative proceedings in order to determine
whether the person or organization represents the interests of
consumers.
   (c) This section shall apply to all proceedings of the department,
but shall not apply to resolution of individual grievances,
complaints, or cases.
   (d) Fees awarded pursuant to this section may not exceed three
hundred fifty thousand dollars ($350,000) each fiscal year.
   (e) The fees awarded pursuant to this section shall be considered
costs and expenses pursuant to Section 1356 and shall be paid from
the assessment made under that section. Notwithstanding the
provisions of this subdivision, the amount of the assessment shall
not be increased to pay the fees awarded under this section.
   (f) The department shall report to the appropriate policy and
fiscal committees of the Legislature before March 1, 2004, and
annually thereafter, the following information:
   (1) The amount of reasonable advocacy and witness fees awarded
each fiscal year.
   (2) The individuals or organization to whom advocacy and witness
fees were awarded pursuant to this section.
   (3) The orders, decisions, and regulations pursuant to which the
advocacy and witness fees were awarded.
   (g) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
  SEC. 15.  Section 1275 of the Unemployment Insurance Code is
amended to read:
   1275.  (a) Unemployment compensation benefit award computations
shall be based on wages paid in the base period. "Base period" means:
for benefit years beginning in October, November, or December, the
four calendar quarters ended in the next preceding month of June; for
benefit years beginning in January, February, or March, the four
calendar quarters ended in the next preceding month of September; for
benefit years beginning in April, May, or June, the four calendar
quarters ended in the next preceding month of December; for benefit
years beginning in July, August, or September, the four calendar
quarters ended with the next preceding month of March. Wages used in
the determination of benefits payable to an individual during any
benefit year may not be used in determining that individual's
benefits in any subsequent benefit year.
   (b) For any new claim filed on or after April 2, 2012, or earlier
if the department implements the technical changes necessary to
establish claims under the alternate base period, as specified in
subdivision (c), if an individual cannot establish a claim under
subdivision (a), then "base period" means: for benefit years
beginning in October, November, or December, the four calendar
quarters ended in the next preceding month of September; for benefit
years beginning in January, February, or March, the four calendar
quarters ended in the next preceding month of December; for benefit
years beginning in April, May, or June, the four calendar quarters
ended in the next preceding month of March; for benefit years
beginning in July, August, or September, the four calendar quarters
ended in the next preceding month of June. As provided in Section
1280, the quarter with the highest wages shall be used to determine
the individual's weekly benefit amount. Wages used in the
determination of benefits payable to an individual during any benefit
year may not be used in determining that individual's benefits in
any subsequent benefit year.
   (c) The department shall implement the technical changes necessary
to establish claims under the alternate base period specified in
subdivision (b) as soon as possible, but no later than April 2, 2012.

  SEC. 16.  Section 10205 of the Unemployment Insurance Code is
amended to read:
   10205.  The panel shall do all of the following:
   (a) Establish a three-year plan that shall be updated annually,
based on the demand of employers for trained workers, changes in the
state's economy and labor markets, and continuous reviews of the
effectiveness of panel training contracts. The updated plan shall be
submitted to the Governor and the Legislature not later than January
1 of each year. In carrying out this section, the panel shall review
information in the following areas:
   (1) Labor market information, including the state-local labor
market information program in the Employment Development Department
and other relevant regional or statewide initiatives and
collaboratives.
   (2) Evaluations of the effectiveness of training as measured by
increased security of employment for workers and benefits to the
California economy.
   (3) The demand for training by industry, type of training, and
size of employer.
   (4) Changes in skills necessary to perform jobs, including changes
in basic literacy skills.
   (5) Changes in the demographics of the labor force and the
population entering the labor market.
   (6) Proposed expenditures by other agencies of federal Workforce
Investment Act funds and other state and federal training and
vocational education funds on eligible participants.
   (b) Maintain a system to continuously monitor economic and other
data required under this plan. If this data changes significantly
during the life of the plan, the plan shall be amended by the panel.
Each plan shall include all of the following:
   (1) The panel's objectives with respect to the criteria and
priorities specified in Section 10200 and the distribution of funds
between new-hire training and retraining.
   (2) The identification of specific industries, production and
quality control techniques, and regions of the state where employment
training funds would most benefit the state's economy and plans to
encourage training in these areas, including specific standards and a
system for expedited review of proposals that meet the standards.
   (3) A system for expedited review of proposals that are
substantially similar with respect to employer needs, training
curriculum, duration of training, and costs of training, in order to
encourage the development of proposals that meet the needs identified
in paragraph (2).
   (4) The panel's goals, operational objectives, and strategies to
meet the needs of small businesses, including, but not limited to,
those small businesses with 100 or fewer employees. These strategies
proposed by the panel may include, but not be limited to, pilot
demonstration projects designed to identify potential barriers that
small businesses may experience in accessing panel programs and
workforce training resources, including barriers that may exist
within small businesses.
   (5) The research objectives of the panel that contribute to the
effectiveness of this chapter in benefiting the economy of the state
as a whole.
   (6) A priority list of skills or occupations that are in such
short supply that employers are choosing to not locate or expand
their businesses in the state or are importing labor in response to
these skills shortages.
   (7) A review of the panel's efforts to coordinate with the
California Workforce Investment Board and local boards to achieve an
effective and coordinated approach in the delivery of the state's
workforce resources.
   (A) The panel will consider specific strategies to achieve this
goal that include the development of initiatives to engage local
workforce investment boards in enhancing the utilization of panel
training resources by companies in priority sectors, special
populations, and in geographically underserved areas of the state.
   (B) Various approaches to foster greater program integration
between workforce investment boards and the panel will also be
considered, which may include marketing agreements, expanded
technical assistance, modification of program regulations and policy,
and expanded use of multiple employer contracts.
   (c) Solicit proposals and write contracts on the basis of
proposals made directly to it. Contracts for the purpose of providing
employment training may be written with any of the following:
   (1) An employer or group of employers.
   (2) A training agency.
   (3) A local workforce investment board with the approval of the
appropriate local elected officials in the local workforce investment
area.
   (4) A grant recipient or administrative entity selected pursuant
to the federal Workforce Investment Act of 1998, with the approval of
the local workforce investment board and the appropriate local
elected officials.
   These contracts shall be in the form of fixed-fee performance
contracts. Notwithstanding any provision of law to the contrary,
contracts entered into pursuant to this chapter shall not be subject
to competitive bidding procedures. Contracts for training may be
written for a period not to exceed 24 months for the purpose of
administration by the panel and the contracting employer or any group
of employers acting jointly or any training agency for the purpose
of providing employment training.
   (d) Fund training projects that best meet the priorities
identified annually. In doing so, the panel shall seek to facilitate
the employment of the maximum number of eligible participants.
   (e) Establish minimum standards for the consideration of
proposals, which shall include, but not be limited to, evidence of
labor market demand, the number of jobs available, the skill
requirements for the identified jobs, the projected cost per person
trained, hired, and retained in employment, the wages paid successful
trainees upon placement, and the curriculum for the training. No
proposal shall be considered or approved that proposes training for
employment covered by a collective bargaining agreement unless the
signatory labor organization agrees in writing.
   (f) Ensure the provision of adequate fiscal and accounting
controls for, monitoring and auditing of, and other appropriate
technical and administrative assistance to, projects funded by this
chapter.
   (g) Provide for evaluation of projects funded by this chapter. The
evaluations shall assess the effectiveness of training previously
funded by the panel to improve job security and stability for
workers, and benefit participating employers and the state's economy,
and shall compare the wages of trainees in the 12-month period prior
to training as well as the 12-month period subsequent to completion
of training, as reflected in the department's unemployment insurance
tax records. Individual project evaluations shall contain a summary
description of the project, the number of persons entering training,
the number of persons completing training, the number of persons
employed at the end of the project, the number of persons still
employed three months after the end of the project, the wages paid,
the total costs of the project, and the total reimbursement received
from the Employment Training Fund.
   (h) Report annually to the Legislature, by November 30, on
projects operating during the previous state fiscal year. These
annual reports shall provide separate summaries of all of the
following:
   (1) Projects completed during the year, including their individual
and aggregate performance and cost.
   (2) Projects not completed during the year, briefly describing
each project and identifying approved contract amounts by contract
and for this category as a whole, and identifying any projects in
which funds are expected to be disencumbered.
   (3) Projects terminated prior to completion and the reasons for
the termination.
   (4) A description of the amount, type, and effectiveness of
literacy training funded by the panel.
   (5) Results of complete project evaluations.
   (6) A description of pilot projects, and the strategies that were
identified through these projects, to increase access by small
businesses to panel training contracts.
   (7) A listing of training projects that were funded in high
unemployment areas and a detailed description of the policies and
procedures that were used to designate geographic regions and
municipalities as high unemployment areas.
   In addition, based upon its experience in administering job
training projects, the panel shall include in these reports policy
recommendations concerning the impact of job training and the panel's
program on economic development, labor-management relations,
employment security, and other related issues.
   (i) Conduct ongoing reviews of panel policies with the goal of
developing an improved process for developing, funding, and
implementing panel contracts as described in this chapter.
   (j) Expedite the processing of contracts for firms considering
locating or expanding businesses in the state, in accordance with the
priorities for employment training programs set forth in subdivision
(b) of Section 10200.
   (k) Coordinate and consult regularly with business groups and
labor organizations, the California Workforce Investment Board, the
State Department of Education, the office of the Chancellor of the
California Community Colleges, and the Employment Development
Department.
   (l) Adopt by regulation procedures for the conduct of panel
business, including the scheduling and conduct of meetings, the
review of proposals, the disclosure of contacts between panel members
and parties at interest concerning particular proposals, contracts
or cases before the panel or its staff, the awarding of contracts,
the administration of contracts, and the payment of amounts due to
contractors. All decisions by the panel shall be made by resolution
of the panel and any adverse decision shall include a statement of
the reason for the decision.
   (m) Adopt regulations and procedures providing reasonable
confidentiality for the proprietary information of employers seeking
training funds from the panel if the public disclosure of that
information would result in an unfair competitive disadvantage to the
employer supplying the information. The panel may not withhold
information from the public regarding its operations, procedures, and
decisions that would otherwise be subject to disclosure under the
California Public Records Act (Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code).
   (n) Review and comment on the budget and performance of any
program, project, or activity funded by the panel utilizing funds
collected pursuant to Section 976.6.
  SEC. 17.  Section 10529 of the Unemployment Insurance Code is
amended to read:
   10529.  (a) The services provided by the existing labor market
information system within the department shall include workforce and
economic information that does all of the following:
   (1) Provides data and information to the state Workforce
Investment Board created pursuant to Section 2821 of Title 29 of the
United States Code, to enable the board to plan, operate, and
evaluate investments in the state's workforce preparation system that
will make the California economy more productive and competitive.
   (2) Provides data and information for continuous strategic
planning and the development of policies for the growth and
competitiveness of the California economy.
   (3) Identifies and combines information from various state data
bases to produce useful, geographically based analysis and products,
to the extent possible using existing resources.
   (4) Provides technical assistance related to accessing workforce
and economic information to local governments, public-sector
entities, research institutes, nonprofit organizations, and community
groups that have various levels of expertise, to the extent possible
using existing resources.
   (b) The department shall coordinate with the State Department of
Education, the Chancellor of the California Community Colleges, the
State Department of Social Services, the California Postsecondary
Education Commission, the Department of Finance, and the Franchise
Tax Board in developing economic and workforce information. The
department shall also solicit input in the operation of the program
from public and private agencies and individuals that make use of the
labor market information provided by the department.
  SEC. 18.  Section 14012 of the Unemployment Insurance Code is
amended to read:
   14012.  The board shall be appointed by the Governor to assist in
the development of the State Workforce Investment Plan and to carry
out other functions, as described in Section 14103. The board shall
be comprised of the Governor and representatives from the following
categories:
   (a) Two members of each house of the Legislature, appointed by the
appropriate presiding officer of each house.
   (b) A majority of board members shall be representatives of
business who:
   (1) Are owners of small and large businesses, chief executives or
operating officers of small and large businesses, and other small and
large business executives or employers with optimum policymaking or
hiring authority, including members of local workforce investment
boards.
   (2) Represent businesses with employment opportunities that
reflect the employment opportunities of the state.
   (3) Are appointed from a group of individuals nominated by state
business organizations and business trade associations.
   (c) Chief elected officials representing both cities and counties,
where appropriate.
   (d) Representatives of labor organizations that are appointed to
the board by the Governor shall have been nominated by state labor
federations. At least 15 percent of board members shall be
representatives of labor organizations.
   (e) Representatives of individuals and organizations that have
experience with regard to youth activities.
   (f) Representatives of individuals and organizations that have
experience and expertise in the delivery of workforce investment
activities, including the Chancellor of the California Community
Colleges, representatives of school districts, and representatives of
community-based organizations within the state.
   (g) The lead state agency officials with responsibility for the
programs, services, or activities that are mandatory participants in
the one-stop system, or, where there are no lead state agency
officials responsible for those programs, services, or activities, a
representative with expertise relating to those programs, services,
or activities.
   (h) Any other representatives and state agency officials as the
Governor may designate, such as the state agency officials
responsible for economic development and juvenile justice programs in
the state.
   (i) Members of the board that represent organizations, agencies,
or other entities shall be individuals with optimum policymaking
authority within those organizations, agencies, or entities.
   (j) In making appointments to the board, the Governor shall
consider the ethnic, race, gender, and geographic distribution of the
state's population, and members of the board shall represent diverse
regions of the state, including urban, rural, and suburban areas.
   (k) The Governor may appoint a single member to the board to
represent multiple constituencies on the board.
   (  l  ) The Governor shall select a chairperson for the
board from the business representatives.
  SEC. 19.  Section 15001 of the Unemployment Insurance Code is
amended to read:
   15001.  (a) The Legislature finds and declares all of the
following:
   (1) The State of California has long been a national and
international leader on environmental, natural resource, pollution
prevention, and energy issues, as well as recent landmark laws in the
areas of climate change, renewable energy, energy efficiency, and
alternative transportation fuels.

      (2) The passage of these laws has resulted in billions of
dollars of investment capital flowing into the State of California
for research, development, and commercialization of new green and
clean technologies. This investment of capital is indicative of the
rapidly growing clean and green technology sector of the California
economy.
   (3) California's green economy is about the potential of new
technologies combined with innovative public policy and strategic
investments to stimulate the growth of new markets for green products
and services.
   (4) As the green economy grows, it will be accompanied by an
increased demand for a highly skilled and well-trained "green collar"
workforce.
   (5) California state government must act promptly to build the
partnerships, expand the programs, and secure the resources necessary
to meet our green workforce needs. This effort must involve both our
K-12 and higher education systems, labor unions, the environmental
community, workforce development programs, nongovernmental
organizations, philanthropy, and private sector industries.
   (6) In acknowledgment of the tremendous size of California's
economy and related infrastructure, the application of sector
strategies in a wide variety of industry sectors is essential to
providing labor for industry and career paths for current and
potential employees. The California Workforce Investment Board shall
adopt a sector strategy approach in responding to industry sector
workforce and economic development needs. This strategy will ensure
industry has a qualified workforce and can offer opportunities for
employment, training, and career advancement for all Californians.
The initial drive of this sector strategy approach will be the
California Green Collar Jobs Act of 2008.
  SEC. 20.  Sections 4, 5, 6, 7, 8, 9, 10, 11, 13, 16, 17, 18, and 19
of this bill shall not become operative until January 1, 2012.
  SEC. 21.  There is hereby appropriated the sum of one thousand
dollars ($1,000) from the Technology Services Revolving Fund to the
California Technology Agency for administrative costs.
  SEC. 22.  This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.