BILL NUMBER: SB 170	CHAPTERED
	BILL TEXT

	CHAPTER  586
	FILED WITH SECRETARY OF STATE  OCTOBER 8, 2011
	APPROVED BY GOVERNOR  OCTOBER 8, 2011
	PASSED THE SENATE  AUGUST 30, 2011
	PASSED THE ASSEMBLY  AUGUST 25, 2011
	AMENDED IN ASSEMBLY  JULY 12, 2011
	AMENDED IN ASSEMBLY  JUNE 23, 2011
	AMENDED IN SENATE  MAY 10, 2011
	AMENDED IN SENATE  APRIL 25, 2011
	AMENDED IN SENATE  MARCH 16, 2011

INTRODUCED BY   Senator Pavley

                        FEBRUARY 3, 2011

   An act to add Sections 40004 and 40005 to the Health and Safety
Code, relating to air pollution.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 170, Pavley. Air districts: adverse effects of air pollution:
intellectual property.
   Existing law authorizes local and regional districts to have the
primary responsibility for control of air pollution from all sources,
other than emissions from motor vehicles.
   This bill would authorize the districts to sponsor, coordinate,
and promote projects that will lead to the prevention, mitigation, or
cure of the adverse effects of air pollution, including the adverse
health effects of air pollution. The bill, until January 1, 2017,
would authorize a district to negotiate what share, if any, of the
intellectual property, or benefits resulting from intellectual
property, developed from the use of district funds, including funds
discharged as grants, will accrue to that district. The bill would
require revenues generated from revenue sharing agreements to be
deposited into a special account and used for specified purposes.
Under certain circumstances, the bill would prohibit a district from
receiving a benefit pursuant to these provisions in excess of the
amount of the district's investment. If the state or a subdivision of
the state purchases or licenses a process, machine, or article of
manufacture for which a district accrues a benefit resulting from the
intellectual property interest, the bill would require the district,
upon the request of the Department of General Services, to provide
reimbursement to the General Fund for the amount of the benefit
accrued. The bill would require a district that attempts to negotiate
for benefits pursuant to these provisions to report annually to the
Legislature, as provided.


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

  SECTION 1.  Section 40004 is added to the Health and Safety Code,
to read:
   40004.  A district may sponsor, coordinate, and promote projects
that will lead to the prevention, mitigation, or cure of the adverse
effects of air pollution, including the adverse health effects of air
pollution.
  SEC. 2.  Section 40005 is added to the Health and Safety Code, to
read:
   40005.  (a) A district may negotiate what share, if any, of the
intellectual property, or benefits resulting from intellectual
property, developed from the use of district funds, including funds
discharged as grants, will accrue to that district.
   (b) A district may negotiate revenue sharing agreements with
recipients of district funds, including the collection of royalties.
Proceeds obtained by the district from these revenue sharing
agreements shall accrue to the district and be deposited into a
special account that may only be used, subject to the district's
ability to recover its expenses and its administrative costs, for any
of the following purposes:
   (1) To fund projects pursuant to Section 40004 that will lead to
the prevention, mitigation, or cure of the adverse effects of air
pollution, including the adverse health effects of air pollution.
   (2) To fund projects to reduce or mitigate air pollution through
the development or implementation of pollution controls, low or zero
polluting fuels or technologies, or pollution prevention measures.
   (c) A district shall not receive a benefit pursuant to this
section in excess of the amount of the district's investment in the
development of a process, machine, or article of manufacture, if the
district adopts a rule or regulation that mandates the use of that
process, machine, or article of manufacture and that regulation or
rule was adopted after the development of the process, machine, or
article of manufacture.
   (d) If the state or a subdivision of the state purchases or
licenses a process, machine, or article of manufacture for which a
district accrues a benefit resulting from an intellectual property
interest negotiated pursuant to subdivision (a) or (b), upon the
request of the Department of General Services, the district shall
prepare reimbursement to the General Fund for the amount of the
benefit accrued.
   (e) (1) A district that attempts to negotiate for benefits
pursuant to this section shall report annually to the Legislature.
The report shall include all of the following:
   (A) The number of district-funded projects and the number of
district-funded projects for which a benefit was negotiated,
regardless of the outcome of the negotiation.
   (B) The outcome of all negotiations regarding intellectual
property pursuant to this section, including agreed terms for revenue
sharing.
   (C) A list of all district-funded projects from previous years
that have resulted in a benefit pursuant to this section, if any, and
the total amount of that benefit to date.
   (2) A district may include a report required by this section as
part of another report submitted to the Legislature by the district.
   (f) This section does not apply to a contract governed by Chapter
14.27 (commencing with Section 67325) of Part 40 of Division 5 of
Title 3 of the Education Code.
   (g) Subdivisions (a) to (f), inclusive, of this section shall
become inoperative on January 1, 2017. An agreement made pursuant to
this section prior to January 1, 2017, shall remain in effect for the
duration of the agreement.