Amended in Senate September 5, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 106


Introduced by Committee on Budgetbegin delete (Blumenfieldend deletebegin insert (Skinnerend insert (Chair), Bloom,begin delete Bonilla,end deletebegin insert Campos,end insert Chesbro, Daly, Dickinson, Gordon, Jones-Sawyer, Mitchell, Mullin, Muratsuchi, Nazarian,begin delete Rendon,end delete Stone, and Ting)

January 10, 2013


begin deleteAn act relating to the Budget Act of 2013. end deletebegin insertAn act to amend Sections 1091, 13073.5, 30061, and 30070 of the Government Code, to amend Sections 1231 and 13821 of the Penal Code, to amend Sections 17053.33, 17053.70, 18410.2, 23612.2, and 23633 of the Revenue and Taxation Code, and to amend Sections 1403, 18220, and 18220.1 of the Welfare and Institutions Code, relating to public finance, and making an appropriation therefor, to take effect immediately, bill related to the budget.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 106, as amended, Committee on Budget. begin deleteBudget Act of 2013. end deletebegin insertPublic finance.end insert

begin insert

Existing law prohibits certain public officials and employees from being financially interested in any contract made by them in their official capacity, or by any board of which they are members. An officer is not deemed to be interested in a contract entered into by a body or board of which the officer is a member if the officer has only a remote interest in the contract and other requirements are met. A remote interest is required to be publicly disclosed, and thereafter the public body may authorize, approve, or ratify the contract in question, but the officer or employee with the remote interest is disqualified from voting. A remote interest is defined to include, among others, the interest of a person who is an officer or employee of a nonprofit entity exempt from taxation pursuant to Section 501(c)(3) of the Internal Revenue Code or a nonprofit corporation. Violation of these provisions is a crime.

end insert
begin insert

This bill would include in the definition of remote interest the interest of a person who is an officer or employee of a nonprofit entity exempt from taxation pursuant to Section 501(c)(5) of the Internal Revenue Code.

end insert
begin insert

By expanding the scope of an existing crime, this bill would impose a state-mandated local program.

end insert
begin insert

Existing law establishes in the State Treasury the Local Revenue Fund 2011, a continuously appropriated fund, and requires that moneys in the fund be allocated exclusively for public safety services, as defined. Existing law further establishes the Law Enforcement Services Account within that fund, and creates the Enhancing Law Enforcement Activities Subaccount and the Juvenile Justice Subaccount within the Law Enforcement Services Account.

end insert
begin insert

Existing law allocates specified funds from the Enhancing Law Enforcement Activities Subaccount to local governments, including to cities and counties that charge fees to a city, special district, community college district, college, or university for the booking or detention of a person arrested and brought to a detention facility of the city or county. Existing law also allocates moneys in the subaccount for county sheriffs’ departments, California Multi-Jurisdictional Methamphetamine Enforcement Teams, Multi-Agency Gang Enforcement Consortium, Sexual Assault Felony Enforcement Teams, High Technology Theft Apprehension and Prosecution Program, Gang Violence Suppression Program, Central Valley and Central Coast Rural Crime Prevention Programs, jail construction and operation, criminal prosecution, juvenile justice plans, habitual truants, runaways, and children at risk of being wards of the court or under juvenile supervision or supervision of the county probation department.

end insert
begin insert

This bill would, subsequent to the allocation made to cities and counties that charge fees to a city, special district, community college district, college, or university for the booking or detention of a person arrested and brought to a detention facility of the city or county, revise the percentages of the remaining funds to be allocated for the other above-mentioned purposes from the Enhancing Law Enforcement Activities Subaccount.

end insert
begin insert

Under existing law counties are authorized to establish a Community Corrections Performance Incentives Fund (CCPIF) to receive moneys related to the placement of felons under probation supervision, mandatory supervision, and postrelease community supervision. Programs funded through a CCPIF are required to identify and track specific outcome-based measures and report its findings to the Administrative Office of the Courts (AOC). The AOC then provides quarterly statistical information to the Department of Finance that includes, among other things, the number of felony convictions in the county and the number of felons who would have been subject to specified sentencing provisions had felony probation not been granted.

end insert
begin insert

This bill would remove from the AOC’s quarterly statistical information the number of felons who would have been subject to those sentencing provisions had felony probation not been granted.

end insert
begin insert

The Personal Income Tax Law and the Corporation Tax Law allow a credit in an amount equal to the amount of sales or use tax paid in connection with qualified property that is purchased and placed in service before the date the enterprise zone or targeted tax area designation expires, is no longer binding, or becomes inoperative. Existing law repeals these provisions on December 1, 2014.

end insert
begin insert

This bill would instead require the qualified property to be placed in service in the enterprise zone or the targeted tax area before January 1, 2015, and would repeal those provisions on December 1, 2015. The bill would also make clarifying changes to those provisions.

end insert
begin insert

Existing law requires the Population Research Unit to, among other things, determine the census tracts that are within the highest quartile of census tracts with the highest civilian unemployment, and to sort the census tracts by the respective civilian unemployment rate of each in ascending order, or from the lowest, 0%, to the highest, 100%, as specified.

end insert
begin insert

This bill would make clarifying changes to those provisions.

end insert
begin insert

Existing law established the California Competes Tax Credit Committee, which consists of the Treasurer, the Director of Finance, the Director of the Governor’s Office of Business and Economic Development, and one appointee each from the Senate and Assembly.

end insert
begin insert

This bill would provide that the Director of the Governor’s Office of Business and Economic Development is the chair. The bill would prohibit a member of the Legislature from being appointed to the committee.

end insert
begin insert

Under existing law and until January 1, 2014, California is subject to an interstate compact for juveniles and that compact requires California, among other things, to appoint a commissioner to the Interstate Commission for Juveniles and to create a State Council for Interstate Juvenile Supervision.

end insert
begin insert

This bill would extend the duration of the compact until January 1, 2016.

end insert
begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert
begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert
begin insert

The bill would appropriate $100,000 from the General Fund to the Governor’s Office of Economic Development to provide staff support for the California Competes Tax Credit Committee.

end insert
begin insert

This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

end insert
begin delete

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2013.

end delete

Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P4    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 1091 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
2to read:end insert

3

1091.  

(a) An officer shall not be deemed to be interested in a
4contract entered into by a body or board of which the officer is a
5member within the meaning of this article if the officer has only
6a remote interest in the contract and if the fact of that interest is
7disclosed to the body or board of which the officer is a member
8and noted in its official records, and thereafter the body or board
9authorizes, approves, or ratifies the contract in good faith by a vote
10of its membership sufficient for the purpose without counting the
11vote or votes of the officer or member with the remote interest.

12(b) As used in this article, “remote interest” means any of the
13following:

14(1) That of an officer or employee of a nonprofit entity exempt
15from taxation pursuant to Section 501(c)(3) of the Internal Revenue
P5    1Code (26 U.S.C. Sec.begin delete 501(c)(3))end deletebegin insert 501(c)(3)), pursuant to Section
2501(c)(5) of the Internal Revenue Code (26 U.S.C. Sec. 501(c)(5)),end insert

3 or a nonprofit corporation, except as provided in paragraph (8) of
4subdivision (a) of Section 1091.5.

5(2) That of an employee or agent of the contracting party, if the
6contracting party has 10 or more other employees and if the officer
7was an employee or agent of that contracting party for at least three
8years prior to the officer initially accepting his or her office and
9the officer owns less than 3 percent of the shares of stock of the
10contracting party; and the employee or agent is not an officer or
11director of the contracting party and did not directly participate in
12formulating the bid of the contracting party.

13For purposes of this paragraph, time of employment with the
14contracting party by the officer shall be counted in computing the
15three-year period specified in this paragraph even though the
16contracting party has been converted from one form of business
17organization to a different form of business organization within
18three years of the initial taking of office by the officer. Time of
19employment in that case shall be counted only if, after the transfer
20or change in organization, the real or ultimate ownership of the
21contracting party is the same or substantially similar to that which
22existed before the transfer or change in organization. For purposes
23of this paragraph, stockholders, bondholders, partners, or other
24persons holding an interest in the contracting party are regarded
25as having the “real or ultimate ownership” of the contracting party.

26(3) That of an employee or agent of the contracting party, if all
27of the following conditions are met:

28(A) The agency of which the person is an officer is a local public
29agency located in a county with a population of less than 4,000,000.

30(B) The contract is competitively bid and is not for personal
31services.

32(C) The employee or agent is not in a primary management
33capacity with the contracting party, is not an officer or director of
34the contracting party, and holds no ownership interest in the
35contracting party.

36(D) The contracting party has 10 or more other employees.

37(E) The employee or agent did not directly participate in
38formulating the bid of the contracting party.

39(F) The contracting party is the lowest responsible bidder.

P6    1(4) That of a parent in the earnings of his or her minor child for
2personal services.

3(5) That of a landlord or tenant of the contracting party.

4(6) That of an attorney of the contracting party or that of an
5owner, officer, employee, or agent of a firm that renders, or has
6rendered, service to the contracting party in the capacity of
7stockbroker, insurance agent, insurance broker, real estate agent,
8or real estate broker, if these individuals have not received and
9will not receive remuneration, consideration, or a commission as
10a result of the contract and if these individuals have an ownership
11interest of 10 percent or more in the law practice or firm, stock
12brokerage firm, insurance firm, or real estate firm.

13(7) That of a member of a nonprofit corporation formed under
14the Food and Agricultural Code or a nonprofit corporation formed
15under the Corporations Code for the sole purpose of engaging in
16the merchandising of agricultural products or the supplying of
17water.

18(8) That of a supplier of goods or services when those goods or
19services have been supplied to the contracting party by the officer
20for at least five years prior to his or her election or appointment
21to office.

22(9) That of a person subject to the provisions of Section 1090
23in any contract or agreement entered into pursuant to the provisions
24of the California Land Conservation Act of 1965.

25(10) Except as provided in subdivision (b) of Section 1091.5,
26that of a director of, or a person having an ownership interest of,
2710 percent or more in a bank, bank holding company, or savings
28and loan association with which a party to the contract has a
29relationship of borrower or depositor, debtor or creditor.

30(11) That of an engineer, geologist, or architect employed by a
31consulting engineering or architectural firm. This paragraph applies
32only to an employee of a consulting firm who does not serve in a
33primary management capacity, and does not apply to an officer or
34director of a consulting firm.

35(12) That of an elected officer otherwise subject to Section 1090,
36in any housing assistance payment contract entered into pursuant
37to Section 8 of the United States Housing Act of 1937 (42 U.S.C.
38Sec. 1437f) as amended, provided that the housing assistance
39payment contract was in existence before Section 1090 became
40applicable to the officer and will be renewed or extended only as
P7    1to the existing tenant, or, in a jurisdiction in which the rental
2vacancy rate is less than 5 percent, as to new tenants in a unit
3previously under a Section 8 contract. This section applies to any
4person who became a public official on or after November 1, 1986.

5(13) That of a person receiving salary, per diem, or
6reimbursement for expenses from a government entity.

7(14) That of a person owning less than 3 percent of the shares
8of a contracting party that is a for-profit corporation, provided that
9the ownership of the shares derived from the person’s employment
10with that corporation.

11(15) That of a party to litigation involving the body or board of
12which the officer is a member in connection with an agreement in
13which all of the following apply:

14(A) The agreement is entered into as part of a settlement of
15litigation in which the body or board is represented by legal
16counsel.

17(B) After a review of the merits of the agreement and other
18relevant facts and circumstances, a court of competent jurisdiction
19finds that the agreement serves the public interest.

20(C) The interested member has recused himself or herself from
21all participation, direct or indirect, in the making of the agreement
22on behalf of the body or board.

23(16) That of a person who is an officer or employee of an
24investor-owned utility that is regulated by the Public Utilities
25Commission with respect to a contract between the investor-owned
26utility and a state, county, district, judicial district, or city body or
27board of which the person is a member, if the contract requires the
28investor-owned utility to provide energy efficiency rebates or other
29type of program to encourage energy efficiency that benefits the
30public when all of the following apply:

31(A) The contract is funded by utility consumers pursuant to
32regulations of the Public Utilities Commission.

33(B) The contract provides no individual benefit to the person
34that is not also provided to the public, and the investor-owned
35utility receives no direct financial profit from the contract.

36(C) The person has recused himself or herself from all
37participation in making the contract on behalf of the state, county,
38district, judicial district, or city body or board of which he or she
39is a member.

P8    1(D) The contract implements a program authorized by the Public
2Utilities Commission.

3(c) This section is not applicable to any officer interested in a
4contract who influences or attempts to influence another member
5of the body or board of which he or she is a member to enter into
6the contract.

7(d) The willful failure of an officer to disclose the fact of his or
8her interest in a contract pursuant to this section is punishable as
9provided in Section 1097. That violation does not void the contract
10unless the contracting party had knowledge of the fact of the remote
11interest of the officer at the time the contract was executed.

12begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 13073.5 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
13to read:end insert

14

13073.5.  

The Legislature finds and declares that: (1) population
15size and distribution patterns in California exert a major influence
16on the physical, social, and economic structure of the state and on
17the quality of the environment generally; (2) sound and current
18data and methods to estimate population trends are necessary to
19enable state, regional, and local agencies to plan and function
20properly; and (3) there is a critical need for a proper study of the
21implications of present and future population trends in order that
22state, regional, and local agencies might develop or reexamine
23policies and actions based thereon.

24The Population Research Unit shall:

25(a) Develop basic demographic data and statistical compilations,
26which may include a current population survey and a mid-decade
27census.

28(b) Design and test methods of research and data collection.

29(c) Conduct local population estimates as required by law.

30(d) Validate all official census data and population statistics.

31(e) Analyze and prepare projections of enrollments in public
32schools, colleges, and universities.

33(f) Analyze governmental records to establish characteristics
34of migration and distribution.

35(g) Publish annual estimates of the population of the state and
36its composition.

37(h) Prepare short- and long-range projections of population and
38its composition.

39(i) Provide advisory services to state agencies and other levels
40of government.

P9    1(j) Evaluate and recommend data requirements for determining
2population and population growth.

3(k) Analyze the demographic features of the causes and
4consequences of patterns of natural increase or decrease, migration,
5and population concentration within the state.

6(l) Assess the need for population data required for determining
7the allocation of federal, state, and other subvention revenues.

8(m) Request and obtain from any department, division,
9commission, or other agency of the state all assistance and
10information to enable the unit to effectively carry out the provisions
11of this section.

12(n) Cooperate with the Office of Planning and Research with
13respect to functions involving mutual areas of concern relating to
14demography and state planning.

15(o) Enter into agreements to carry out the purposes of this
16section, including the application for and acceptance of federal
17funds or private foundation grants for demographic studies.

18(p) Act as primary state government liaison with the Census
19Bureau, United States Department of Commerce, in the acquisition
20and distribution of census data and related documentation to state
21agencies.

22(q) Administer, with other agencies, a State Census Data Center
23which will be responsible for acquiring decennial and other census
24data from the Bureau of the Census, and for providing necessary
25information to the Legislature and to the executive branch and for
26seeking to ensure the availability of census information to local
27governments. The unit and the Office of Planning and Research
28shall be responsible for designating subcenters of the State Census
29Data Center as needed. The unit will provide materials to
30subcenters of the State Census Data Center, will coordinate the
31efforts of the subcenters to avoid duplication and may consult in
32the design of standard reports to be offered by the center and its
33subcenters.

begin delete

34(r®)

end delete

35begin insert(r)end insert Coordinate with the Office of Planning and Research
36Environmental Data Center for the purposes of ensuring
37consistency and compatibility of data products, improving public
38access to data, ensuring the consistent interpretation of data, and
39avoiding duplication of functions.

P10   1(s) (1) Determine those census tracts that are to be designated
2census tracts based on data from the five-year American
3Community Survey (ACS). The census tracts that are within the
4highest quartile for both civilian unemployment and poverty
5statistics, as determined in paragraphs (2) and (3), shall be
6determined to be designated census tracts as described in paragraph
7(7) of subdivision (b) of Section 17053.73, and paragraph (7) of
8subdivision (b) of Section 23626 of the Revenue and Taxation
9Code.

10(2) To determine the census tracts that are within the highest
11quartile of census tracts with the highest civilian unemployment,
12the census tracts shall be sorted by the respective civilian
13unemployment rate of each in ascending order, or from the lowest
14(0 percent) to the highest (100 percent) according to the following:

15(A) Census tracts without a civilian labor force shall be
16excluded.

17(B) After ordering the census tracts by the civilian
18unemployment rate of each, the census tracts shall be divided into
19four equal groups or quartiles as follows:

20(i) The first quartile shall represent the lowest fourth of the
21census tractsbegin delete (1 percent to less than 26 percent).end deletebegin insert (the lowest 25
22percent, inclusive).end insert

23(ii) The second quartile shall represent the second fourthbegin delete (26end delete
24begin insert (tracts greater than 25end insert percentbegin insert upend insert tobegin delete less than 51 percent).end deletebegin insert 50
25percent, inclusive).end insert

26(iii) The third quartile shall represent the third fourthbegin delete (51end deletebegin insert (tracts
27greater than 50end insert
percentbegin insert upend insert tobegin delete less than 76 percent).end deletebegin insert 75 percent,
28inclusive).end insert

29(iv) The fourth quartile shall represent the fourth fourthbegin delete (76end delete
30begin insert (tracts greater than 75end insert percentbegin insert upend insert to 100 percent, inclusive).

31(C) The last or highest quartile shall represent the top 25 percent
32of the census tracts with the highest civilian unemployment rates.

33(3) To determine the census tracts that are within the quartile
34of census tracts with the highest poverty, the census tracts shall
35be sorted by the respective percentage of population below poverty
36of each in ascending order, or from the lowest (0 percent) to the
37highest (100 percent) according to the following:

38(A) Consistent with poverty statistics in the ACS, which adhere
39to the standards specified by the federal Office of Management
40and Budget in Statistical Policy Directive 14, the poverty thresholds
P11   1as specified by the United States Census Bureau shall be used to
2determine those individuals below poverty.

3(B) To determine those individuals below poverty, different
4thresholds, as specified by the United States Census Bureau, shall
5be applied to families, people living alone, or people living with
6nonrelatives (unrelated individuals).

7(C) If a family’s total income is less than the dollar value of the
8appropriate threshold, then that family and every individual in it
9shall be considered to be below poverty.

10(D) If an unrelated individual’s total income is less than the
11appropriate threshold, then that individual shall be considered to
12be below poverty.

13(E) Poverty status shall be determined for all people except
14institutionalized people, people in military group quarters, people
15in college dormitories, and unrelated individuals under 15 years
16of age.

17(F) Census tracts that do not have a population for whom poverty
18status is determined shall be excluded.

19(G) After ordering the census tracts by the respective percent
20below poverty of each, the census tracts shall be divided into four
21equal quartiles as follows:

22(i) The first quartile shall represent the lowest fourth of the
23census tractsbegin delete (1 percent to less than 26 percent).end deletebegin insert (the lowest 25
24percent, inclusive).end insert

25(ii) The second quartile shall represent the second fourthbegin delete (26end delete
26begin insert (tracts greater than 25end insert percentbegin insert upend insert tobegin delete less than 51 percent).end deletebegin insert 50
27percent, inclusive).end insert

28(iii) The third quartile shall represent the third fourthbegin delete (51end deletebegin insert (tracts
29greater than 50end insert
percentbegin insert upend insert tobegin delete less than 76 percent).end deletebegin insert 75 percent,
30inclusive).end insert

31(iv) The fourth quartile shall represent the fourth fourthbegin delete (76end delete
32begin insert (tracts greater than 75end insert percentbegin insert upend insert to 100 percent, inclusive).

33(H) The last or highest quartile shall represent the top 25 percent
34of the census tracts with the highest percentage of population below
35poverty.

begin delete

36(4) To determine the

end delete

37begin insert(t)end insertbegin insertend insertbegin insert(1)end insertbegin insertend insertbegin insertDetermine thoseend insert census tracts that are within the lowest
38quartile of census tracts with the lowest civilian unemployment
39andbegin delete poverty,end deletebegin insert poverty based on data fromend insert thebegin insert five-year ACS. Theend insert
40 census tractsbegin delete shall be sorted byend deletebegin insert that are withinend insert thebegin delete respectiveend deletebegin insert lowest
P12   1quartile for bothend insert
civilian unemployment and povertybegin delete ratesend deletebegin insert statistics,
2as determined in paragraphs (2) and (3)end insert
ofbegin delete each in ascending
3order, or fromend delete
begin insert subdivision (s), shall be determined to be census
4tracts withinend insert
the lowestbegin delete (0 percent) toend deletebegin insert quartile of census tracts withend insert
5 thebegin delete highest (100 percent) according toend deletebegin insert lowest civilian
6unemployment and poverty, as applied in subparagraph (A) of
7paragraph (8) of subdivision (b) of Section 17053.73 and Section
823626 ofend insert
thebegin delete following:end deletebegin insert Revenue and Taxation Code.end insert

begin delete end deletebegin delete

9(A) Census tracts without a civilian labor force are to be
10excluded.

end delete
begin delete end deletebegin delete

11(B) After ordering the census tracts by the civilian
12unemployment and poverty rates of each, the census tracts shall
13be divided into four equal groups or quartiles as follows:

end delete
begin delete end deletebegin delete

14(i) The first quartile shall represent the lowest fourth of the
15census tracts (1 percent to less than 26 percent).

end delete
begin delete end deletebegin delete

16(ii) The second

end delete

17begin insert (2)end insertbegin insertend insertbegin insertBased on the quartiles developed pursuant to paragraph
18(2) of subdivision (s), the first or lowestend insert
quartile shall represent
19thebegin delete second fourth (26end deletebegin insert bottom 25end insert percentbegin delete to less than 51 percent).end delete
20begin insert of the census tracts with the lowest civilian unemployment rates.end insert

begin delete end deletebegin delete

21(iii) The third quartile shall represent the third fourth (51 percent
22to less than 76 percent).

end delete
begin delete end deletebegin delete

23(iv) The fourth quartile shall represent the fourth fourth (76
24percent to 100 percent, inclusive).

end delete
begin delete end deletebegin delete

25(C) The

end delete

26begin insert(3)end insertbegin insertend insertbegin insertBased on the quartiles developed pursuant to paragraph (3)
27of subdivision (s), theend insert
first or lowest quartile shall represent the
28bottom 25 percent of the census tracts with the lowestbegin delete civilian
29unemployment and poverty rates.end delete
begin insert percentage of population below
30poverty.end insert

31begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 30061 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
32read:end insert

33

30061.  

(a) There shall be established in each county treasury
34a Supplemental Law Enforcement Services Account (SLESA), to
35receive all amounts allocated to a county for purposes of
36implementing this chapter.

37(b) In any fiscal year for which a county receives moneys to be
38expended for the implementation of this chapter, the county auditor
39shall allocate the moneys in the county’s SLESA within 30 days
P13   1of the deposit of those moneys into the fund. The moneys shall be
2allocated as follows:

3(1) Five and fifteen-hundredths percent to the county sheriff for
4county jail construction and operation. In the case of Madera,
5Napa, and Santa Clara Counties, this allocation shall be made to
6the county director or chief of corrections.

7(2) Five and fifteen-hundredths percent to the district attorney
8for criminal prosecution.

9(3) Thirty-nine and seven-tenths percent to the county and the
10cities within the county, and, in the case of San Mateo, Kern,
11Siskiyou, and Contra Costa Counties, also to the Broadmoor Police
12Protection District, the Bear Valley Community Services District,
13the Stallion Springs Community Services District, the Lake
14Shastina Community Services District, and the Kensington Police
15Protection and Community Services District, in accordance with
16the relative population of the cities within the county and the
17unincorporated area of the county, and the Broadmoor Police
18Protection District in the County of San Mateo, the Bear Valley
19Community Services District and the Stallion Springs Community
20Services District in Kern County, the Lake Shastina Community
21Services District in Siskiyou County, and the Kensington Police
22Protection and Community Services District in Contra Costa
23County, as specified in the most recent January estimate by the
24population research unit of the Department of Finance, and as
25adjusted to provide, except as provided in subdivision (j), a grant
26of at least one hundred thousand dollars ($100,000) to each law
27enforcement jurisdiction. For a newly incorporated city whose
28population estimate is not published by the Department of Finance,
29but that was incorporated prior to July 1 of the fiscal year in which
30an allocation from the SLESA is to be made, the city manager, or
31an appointee of the legislative body, if a city manager is not
32available, and the county administrative or executive officer shall
33prepare a joint notification to the Department of Finance and the
34county auditor with a population estimate reduction of the
35unincorporated area of the county equal to the population of the
36newly incorporated city by July 15, or within 15 days after the
37Budget Act is enacted, of the fiscal year in which an allocation
38from the SLESA is to be made. No person residing within the
39Broadmoor Police Protection District, the Bear Valley Community
40Services District, the Stallion Springs Community Services District,
P14   1the Lake Shastina Community Services District, or the Kensington
2Police Protection and Community Services District shall also be
3counted as residing within the unincorporated area of the County
4of San Mateo, Kern, Siskiyou, or Contra Costa, or within any city
5located within those counties. Except as provided in subdivision
6(j), the county auditor shall allocate a grant of at least one hundred
7thousand dollars ($100,000) to each law enforcement jurisdiction.
8Moneys allocated to the county pursuant to this subdivision shall
9be retained in the county SLESA, and moneys allocated to a city
10pursuant to this subdivision shall be deposited in an SLESA
11established in the city treasury.

12(4) Fifty percent to the county or city and county to implement
13a comprehensive multiagency juvenile justice plan as provided in
14this paragraph. The juvenile justice plan shall be developed by the
15local juvenile justice coordinating council in each county and city
16and county with the membership described in Section 749.22 of
17the Welfare and Institutions Code. If a plan has been previously
18approved by the Corrections Standards Authority or, commencing
19July 1, 2012, by the Board of State and Community Corrections,
20the plan shall be reviewed and modified annually by the council.
21The plan or modified plan shall be approved by the county board
22of supervisors, and in the case of a city and county, the plan shall
23also be approved by the mayor. The plan or modified plan shall
24be submitted to the Board of State and Community Corrections
25by May 1 of each year.

26(A) Juvenile justice plans shall include, but not be limited to,
27all of the following components:

28(i) An assessment of existing law enforcement, probation,
29education, mental health, health, social services, drug and alcohol,
30and youth services resources that specifically target at-risk
31juveniles, juvenile offenders, and their families.

32(ii) An identification and prioritization of the neighborhoods,
33schools, and other areas in the community that face a significant
34public safety risk from juvenile crime, such as gang activity,
35daylight burglary, late-night robbery, vandalism, truancy, controlled
36substances sales, firearm-related violence, and juvenile substance
37abuse and alcohol use.

38(iii) A local juvenile justice action strategy that provides for a
39continuum of responses to juvenile crime and delinquency and
40demonstrates a collaborative and integrated approach for
P15   1implementing a system of swift, certain, and graduated responses
2for at-risk youth and juvenile offenders.

3(iv) Programs identified in clause (iii) that are proposed to be
4funded pursuant to this subparagraph, including the projected
5amount of funding for each program.

6(B) Programs proposed to be funded shall satisfy all of the
7following requirements:

8(i) Be based on programs and approaches that have been
9demonstrated to be effective in reducing delinquency and
10addressing juvenile crime for any elements of response to juvenile
11crime and delinquency, including prevention, intervention,
12suppression, and incapacitation.

13(ii) Collaborate and integrate services of all the resources set
14forth in clause (i) of subparagraph (A), to the extent appropriate.

15(iii) Employ information sharing systems to ensure that county
16actions are fully coordinated, and designed to provide data for
17measuring the success of juvenile justice programs and strategies.

18(iv) Adopt goals related to the outcome measures that shall be
19used to determine the effectiveness of the local juvenile justice
20action strategy.

21(C) The plan shall also identify the specific objectives of the
22programs proposed for funding and specified outcome measures
23to determine the effectiveness of the programs and contain an
24accounting for all program participants, including those who do
25not complete the programs. Outcome measures of the programs
26proposed to be funded shall include, but not be limited to, all of
27the following:

28(i) The rate of juvenile arrests per 100,000 population.

29(ii) The rate of successful completion of probation.

30(iii) The rate of successful completion of restitution and
31court-ordered community service responsibilities.

32(iv) Arrest, incarceration, and probation violation rates of
33program participants.

34(v) Quantification of the annual per capita costs of the program.

35(D) The Board of State and Community Corrections shall review
36plans or modified plans submitted pursuant to this paragraph within
3730 days upon receipt of submitted or resubmitted plans or modified
38plans. The board shall approve only those plans or modified plans
39that fulfill the requirements of this paragraph, and shall advise a
40submitting county or city and county immediately upon the
P16   1approval of its plan or modified plan. The board shall offer, and
2provide, if requested, technical assistance to any county or city
3and county that submits a plan or modified plan not in compliance
4with the requirements of this paragraph. The SLESA shall only
5allocate funding pursuant to this paragraph upon notification from
6the board that a plan or modified plan has been approved.

7(E) To assess the effectiveness of programs funded pursuant to
8this paragraph using the program outcome criteria specified in
9subparagraph (C), the following periodic reports shall be submitted:

10(i) Each county or city and county shall report, beginning
11October 15, 2002, and annually each October 15 thereafter, to the
12county board of supervisors and the Board of State and Community
13Corrections, in a format specified by the board, on the programs
14funded pursuant to this chapter and program outcomes as specified
15in subparagraph (C).

16(ii) The Board of State and Community Corrections shall
17compile the local reports and, by March 15, 2003, and annually
18thereafter, make a report to the Governor and the Legislature on
19program expenditures within each county and city and county from
20the appropriation for the purposes of this paragraph, on the
21outcomes as specified in subparagraph (C) of the programs funded
22pursuant to this paragraph and the statewide effectiveness of the
23comprehensive multiagency juvenile justice plans.

24(c) Subject to subdivision (d), for each fiscal year in which the
25county, each city, the Broadmoor Police Protection District, the
26Bear Valley Community Services District, the Stallion Springs
27Community Services District, the Lake Shastina Community
28Services District, and the Kensington Police Protection and
29Community Services District receive moneys pursuant to paragraph
30(3) of subdivision (b), the county, each city, and each district
31specified in this subdivision shall appropriate those moneys in
32accordance with the following procedures:

33(1) In the case of the county, the county board of supervisors
34shall appropriate existing and anticipated moneys exclusively to
35provide frontline law enforcement services, other than those
36services specified in paragraphs (1) and (2) of subdivision (b), in
37the unincorporated areas of the county, in response to written
38requests submitted to the board by the county sheriff and the district
39attorney. Any request submitted pursuant to this paragraph shall
40specify the frontline law enforcement needs of the requesting
P17   1entity, and those personnel, equipment, and programs that are
2necessary to meet those needs.

3(2) In the case of a city, the city council shall appropriate
4existing and anticipated moneys exclusively to fund frontline
5municipal police services, in accordance with written requests
6submitted by the chief of police of that city or the chief
7administrator of the law enforcement agency that provides police
8services for that city.

9(3) In the case of the Broadmoor Police Protection District
10within the County of San Mateo, the Bear Valley Community
11Services District or the Stallion Springs Community Services
12District within Kern County, the Lake Shastina Community
13Services District within Siskiyou County, or the Kensington Police
14Protection and Community Services District within Contra Costa
15County, the legislative body of that special district shall appropriate
16existing and anticipated moneys exclusively to fund frontline
17municipal police services, in accordance with written requests
18submitted by the chief administrator of the law enforcement agency
19that provides police services for that special district.

20(d) For each fiscal year in which the county, a city, or the
21Broadmoor Police Protection District within the County of San
22Mateo, the Bear Valley Community Services District or the Stallion
23Springs Community Services District within Kern County, the
24Lake Shastina Community Services District within Siskiyou
25County, or the Kensington Police Protection and Community
26Services District within Contra Costa County receives any moneys
27pursuant to this chapter, in no event shall the governing body of
28any of those recipient agencies subsequently alter any previous,
29valid appropriation by that body, for that same fiscal year, of
30moneys allocated to the county or city pursuant to paragraph (3)
31of subdivision (b).

32(e) For the 2011-12 fiscal year, the Controller shall allocate
3323.54 percent of the amount deposited in the Local Law
34Enforcement Services Account in the Local Revenue Fund 2011
35for the purposes of paragraphs (1), (2), and (3) of subdivision (b),
36and shall allocate 23.54 percent for purposes of paragraph (4) of
37subdivision (b).

38(f) Commencing with the 2012-13 fiscal year,begin insert subsequent toend insert
39 thebegin insert allocation described in subdivision (c) of Section 29552, theend insert
40 Controller shall allocatebegin delete 21.86end deletebegin insert 23.54363596end insert percent of the
P18   1begin insert remainingend insert amount deposited in the Enhancing Law Enforcement
2Activities Subaccount in the Local Revenue Fund 2011 for the
3purposes of paragraphs (1) to (3), inclusive, of subdivision (b),
4begin delete andend deletebegin insert and, subsequent to the allocation described in subdivision (c)
5of Section 29552,end insert
shall allocatebegin delete 21.86end deletebegin insert 23.54363596end insert percentbegin insert of the
6remaining amountend insert
for purposes of paragraph (4) of subdivision
7(b).

8(g) Commencing with the 2013-14 fiscal year,begin insert subsequent toend insert
9 thebegin insert allocation described in subdivision (d) of Section 29552, theend insert
10 Controller shall allocatebegin insert 23.54363596 percent of the remaining
11amount deposited in the Enhancing Law Enforcement Activities
12Subaccount in the Local Revenue Fund 2011 for the purposes of
13paragraphs (1) to (3), inclusive, of subdivision (b), and, subsequent
14to the allocation described in subdivision (d) of Section 29552,
15shall allocate 23.54363596 percent of the remaining amount for
16purposes of paragraph (4) of subdivision (b). The Controller shall
17allocateend insert
funds in monthly installments to local jurisdictions for
18public safety in accordance with this section as annually calculated
19by the Director of Finance.

20(h) Funds received pursuant to subdivision (b) shall be expended
21or encumbered in accordance with this chapter no later than June
2230 of the following fiscal year. A local agency that has not met
23the requirement of this subdivision shall remit unspent SLESA
24moneys received after April 1, 2009, to the Controller for deposit
25in the Local Safety and Protection Account, after April 1, 2012,
26to the Local Law Enforcement Services Account, and after July
271, 2012, to the County Enhancing Law Enforcement Activities
28Subaccount.

29(i) In the 2010-11 fiscal year, if the fourth quarter revenue
30derived from fees imposed by subdivision (a) of Section 10752.2
31of the Revenue and Taxation Code that are deposited in the General
32Fund and transferred to the Local Safety and Protection Account,
33and continuously appropriated to the Controller for allocation
34pursuant to this section, are insufficient to provide a minimum
35grant of one hundred thousand dollars ($100,000) to each law
36enforcement jurisdiction, the county auditor shall allocate the
37revenue proportionately, based on the allocation schedule in
38paragraph (3) of subdivision (b). The county auditor shall
39proportionately allocate, based on the allocation schedule in
40paragraph (3) of subdivision (b), all revenues received after the
P19   1distribution of the fourth quarter allocation attributable to these
2fees for which payment was due prior to July 1, 2011, until all
3minimum allocations are fulfilled, at which point all remaining
4revenue shall be distributed proportionately among the other
5jurisdictions.

6begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 30070 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
7read:end insert

8

30070.  

(a) For the 2011-12 fiscal year, the program authorized
9by this chapter shall be funded from the Local Law Enforcement
10Services Account in the Local Revenue Fund 2011. The Controller
11shall, on a quarterly basis, beginning on October 1, 2011, allocate
124.07 percent of the moneys annually deposited in the Local Law
13Enforcement Services Account. Commencing with the 2012-13
14fiscal year, the program authorized by this chapter shall be funded
15from the Enhancing Law Enforcement Activities Subaccount in
16the Local Revenue Fund 2011.begin delete Theend deletebegin insert Subsequent to the allocation
17described in subdivision (c) of Section 29552, theend insert
Controller shall
18allocatebegin delete 3.78end deletebegin insert 4.06682787end insert percent of thebegin insert remainingend insert moneys annually
19deposited in the Enhancing Law Enforcement Activities
20Subaccount in the Local Revenue Fund 2011. Commencing with
21the 2013-14 fiscal year,begin delete fundsend deletebegin insert subsequent to the allocation
22described in subdivision (d) of Section 29552, the Controllerend insert
shall
23begin insert allocate 4.06682787 percent of the remaining moneys annually
24deposited in the Enhancing Law Enforcement Activities Subaccount
25in the Local Revenue Fund 2011. Funds shallend insert
be allocated in
26monthly installments to county sheriffs’ departments to enhance
27law enforcement efforts in the counties specified in paragraphs (1)
28to (37), inclusive, according to the following schedule:


29

 

(1)Alpine County   

2.7027%

(2)Amador County   

2.7027%

(3)Butte County   

2.7027%

(4)Calaveras County   

2.7027%

(5)Colusa County   

2.7027%

(6)Del Norte County   

2.7027%

(7)El Dorado County   

2.7027%

(8)Glenn County   

2.7027%

(9)Humboldt County   

2.7027%

(10)Imperial County   

2.7027%

(11)Inyo County   

2.7027%

(12)Kings County   

2.7027%

(13)Lake County   

2.7027%

(14)Lassen County   

2.7027%

(15)Madera County   

2.7027%

(16)Marin County   

2.7027%

(17)Mariposa County   

2.7027%

(18)Mendocino County   

2.7027%

(19)Merced County   

2.7027%

(20)Modoc County   

2.7027%

(21)Mono County   

2.7027%

(22)Napa County   

2.7027%

(23)Nevada County   

2.7027%

(24)Placer County   

2.7027%

(25)Plumas County   

2.7027%

(26)San Benito County   

2.7027%

(27)San Luis Obispo County   

2.7027%

(28)Santa Cruz County   

2.7027%

(29)Shasta County   

2.7027%

(30)Sierra County   

2.7027%

(31)Siskiyou County   

2.7027%

(32)Sutter County   

2.7027%

(33)Tehama County   

2.7027%

(34)Trinity County   

2.7027%

(35)Tuolumne County   

2.7027%

(36)Yolo County   

2.7027%

(37)Yuba County   

2.7027%

P20  27

 

28(b) Funds allocated pursuant to this section shall be used to
29supplement rather than supplant existing law enforcement
30resources.

31(c) The funds allocated pursuant to this section may not be used
32for any video surveillance or monitoring of the general public.

33begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 1231 of the end insertbegin insertPenal Codeend insertbegin insert is amended to read:end insert

34

1231.  

(a) Community corrections programs funded pursuant
35to this act shall identify and track specific outcome-based measures
36consistent with the goals of this act.

37(b) The Administrative Office of the Courts, in consultation
38with the Chief Probation Officers of California, shall specify and
39define minimum required outcome-based measures, which shall
40include, but not be limited to, all of the following:

P21   1(1) The percentage of persons subject to local supervision who
2are being supervised in accordance with evidence-based practices.

3(2) The percentage of state moneys expended for programs that
4are evidence based, and a descriptive list of all programs that are
5evidence based.

6(3) Specification of supervision policies, procedures, programs,
7and practices that were eliminated.

8(4) The percentage of persons subject to local supervision who
9successfully complete the period of supervision.

10(c) Each CPO receiving funding pursuant to Sections 1233 to
111233.6, inclusive, shall provide an annual written report to the
12Administrative Office of the Courts evaluating the effectiveness
13of the community corrections program, including, but not limited
14to, the data described in subdivision (b).

15(d) The Administrative Office of the Courts shall, in consultation
16with the CPO of each county and the Department of Corrections
17and Rehabilitation, provide a quarterly statistical report to the
18Department of Finance including, but not limited to, the following
19statistical information for each county:

20(1) The number of felony filings.

21(2) The number of felony convictions.

22(3) The number of felony convictions in which the defendant
23was sentenced to the state prison.

24(4) The number of felony convictions in which the defendant
25was granted probation.

26(5) The adult felon probation population.

27(6) The number of felons who had their probation revoked and
28were sent to prison for that revocation.

29(7) The number of adult felony probationers sent to state prison
30for a conviction of a new felony offense, including when probation
31was revoked or terminated.

32(8) The number of felons who had their probation revoked and
33were sent to county jail for that revocation.

34(9) The number of adult felony probationers sent to county jail
35for a conviction of a new felony offense, including when probation
36was revoked or terminated.

begin delete end deletebegin delete

37(10) The number of felons who would have been subject to the
38sentencing provisions contained in paragraph (5) of subdivision
39(h) of Section 1170 if felony probation had not been granted,
40commencing January 1, 2012.

end delete
begin delete end deletebegin delete

P22   1(11)

end delete

2begin insert(10)end insert The number of felons placed on postrelease community
3supervision, commencing January 1, 2012.

begin delete

4(12)

end delete

5begin insert(11)end insert The number of felons placed on mandatory supervision,
6commencing January 1, 2012.

begin delete

7(13)

end delete

8begin insert(12)end insert The mandatory supervision population, commencing
9January 1, 2012.

begin delete

10(14)

end delete

11begin insert(13)end insert The postrelease community supervision population,
12commencing January 1, 2012.

begin delete

13(15)

end delete

14begin insert(14)end insert The number of felons on postrelease community supervision
15sentenced to state prison for a conviction of a new felony offense,
16commencing January 1, 2012.

begin delete

17(16)

end delete

18begin insert(15)end insert The number of felons on mandatory supervision sentenced
19to state prison for a conviction of a new felony offense,
20commencing January 1, 2012.

begin delete

21(17)

end delete

22begin insert(16)end insert The number of felons who had their postrelease community
23supervision revoked and were sent to county jail for that revocation,
24commencing January 1, 2012.

begin delete

25(18)

end delete

26begin insert(17)end insert The number of felons on postrelease community supervision
27sentenced to county jail for a conviction of a new felony offense,
28including when postrelease community supervision was revoked
29or terminated, commencing January 1, 2012.

begin delete

30(19)

end delete

31begin insert(18)end insert The number of felons who had their mandatory supervision
32revoked and were sentenced to county jail for that revocation,
33commencing January 1, 2012.

begin delete

34(20)

end delete

35begin insert(19)end insert The number of felons on mandatory supervision sentenced
36to county jail for a conviction of a new felony offense, including
37when mandatory supervision was revoked or terminated,
38commencing January 1, 2012.

39begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 13821 of the end insertbegin insertPenal Codeend insertbegin insert is amended to read:end insert

P23   1

13821.  

(a) For the 2011-12 fiscal year, the Controller shall
2allocate 9 percent of the amount deposited in the Local Law
3Enforcement Services Account in the Local Revenue Fund 2011
4to the California Emergency Management Agency. The Controller
5shall allocate these funds on a quarterly basis beginning on October
61. These funds shall be allocated by the Controller pursuant to a
7schedule provided by the California Emergency Management
8Agency which shall be developed according to the agency’s
9existing programmatic guidelines and the following percentages:

10(1) The California Multi-Jurisdictional Methamphetamine
11Enforcement Teams shall receive 47.52 percent in the 2011-12
12fiscal year.

13(2) The Multi-Agency Gang Enforcement Consortium shall
14receive 0.2 percent in the 2011-12 fiscal year.

15(3) The Sexual Assault Felony Enforcement Teams, authorized
16by Section 13887, shall receive 12.48 percent in the 2011-12 fiscal
17year.

18(4) The High Technology Theft Apprehension and Prosecution
19Program, authorized by Section 13848.2, shall receive 26.83
20percent in the 2011-12 fiscal year.

21(5) The Gang Violence Suppression Program authorized by
22Section 13826.1, shall receive 3.91 percent in the 2011-12 fiscal
23year.

24(6) The Central Valley and Central Coast Rural Crime
25Prevention Programs, authorized by Sections 14170 and 14180,
26shall receive 9.06 percent in the 2011-12 fiscal year.

27(b) For the 2011-12 fiscal year, the California Emergency
28Management Agency may be reimbursed up to five hundred eleven
29thousand dollars ($511,000) from the funds allocated in subdivision
30(a) for program administrative costs.

31(c) Commencing with the 2012-13 fiscal year,begin insert subsequent toend insert
32 thebegin insert allocation described in subdivision (c) of Section 29552 of the
33Government Code, and commencing with the 2013-14 fiscal year,
34subsequent to the allocation described in subdivision (d) of Section
3529552 of the Government Code, theend insert
Controller shall allocatebegin delete 8.35end delete
36begin insert 8.99758189end insert percent of thebegin insert remainingend insert amount deposited in the
37Enhancing Law Enforcement Activities Subaccount in the Local
38Revenue Fund 2011 and shall distribute the moneys as follows:

39(1) Commencing with the 2012-13 fiscal year, the California
40Multi-Jurisdictional Methamphetamine Enforcement Teams shall
P24   1receivebegin delete 47.52end deletebegin insert 47.52015636end insert percent and shall be allocated by the
2Controller according to the following schedule:


3

 

Alameda County

1.7109%

Alpine County

0.6327%

Amador County

0.6327%

Butte County

1.6666%

Calaveras County

0.8435%

Colusa County

0.1623%

Contra Costa County

1.3163%

Del Norte County

0.2167%

El Dorado County

1.3716%

Fresno County

5.3775%

Glenn County

0.2130%

Humboldt County

1.0198%

Imperial County

2.5510%

Inyo County

0.6327%

Kern County

5.6938%

Kings County

0.9701%

Lake County

0.6604%

Lassen County

0.2643%

Los Angeles County

5.3239%

Madera County

0.9701%

Marin County

0.6292%

Mariposa County

0.6327%

Mendocino County

0.6846%

Merced County

1.8136%

Modoc County

0.0734%

Mono County

0.6327%

Monterey County

0.9018%

Napa County

0.6803%

Nevada County

0.7482%

Orange County

1.5661%

Placer County

2.6395%

Plumas County

0.1516%

Riverside County

5.6395%

Sacramento County

10.0169%

San Benito County

0.8404%

San Bernardino County

8.9364%

San Diego County

2.5510%

San Francisco County

1.0034%

San Joaquin County

4.6394%

San Luis Obispo County

1.3483%

San Mateo County

1.1224%

Santa Barbara County

1.3483%

Santa Clara County

2.0612%

Santa Cruz County

0.8333%

Shasta County

1.3426%

Sierra County

0.0245%

Siskiyou County

0.3401%

Solano County

1.8979%

Sonoma County

1.1610%

Stanislaus County

3.6272%

Sutter County

0.7177%

Tehama County

0.4808%

Trinity County

0.1044%

Tulare County

2.5306%

Tuolumne County

0.6327%

Ventura County

1.3483%

Yolo County

1.5215%

Yuba County

0.5466%

P25  25312425P25  33391330317202133341415P25  29

 

26(2) Commencing with the 2013-14 fiscal year, the California
27Multi-Jurisdictional Methamphetamine Enforcement Teams shall
28receivebegin delete 47.52end deletebegin insert 47.52015636end insert percent and shall be allocated in
29monthly installments by the Controller according to the following
30schedule:

 

Alameda County

1.7109%

Alpine County

0.6327%

Amador County

0.6327%

Butte County

1.6666%

Calaveras County

0.8435%

Colusa County

0.1623%

Contra Costa County

1.3163%

Del Norte County

0.2167%

El Dorado County

1.3716%

Fresno County

5.3775%

Glenn County

0.2130%

Humboldt County

1.0198%

Imperial County

2.5510%

Inyo County

0.6327%

Kern County

5.6938%

Kings County

0.9701%

Lake County

0.6604%

Lassen County

0.2643%

Los Angeles County

5.3239%

Madera County

0.9701%

Marin County

0.6292%

Mariposa County

0.6327%

Mendocino County

0.6846%

Merced County

1.8136%

Modoc County

0.0734%

Mono County

0.6327%

Monterey County

0.9018%

Napa County

0.6803%

Nevada County

0.7482%

Orange County

1.5661%

Placer County

2.6395%

Plumas County

0.1516%

Riverside County

5.6395%

Sacramento County

10.0169%

San Benito County

0.8404%

San Bernardino County

8.9364%

San Diego County

2.5510%

San Francisco County

1.0034%

San Joaquin County

4.6394%

San Luis Obispo County

1.3483%

San Mateo County

1.1224%

Santa Barbara County

1.3483%

Santa Clara County

2.0612%

Santa Cruz County

0.8333%

Shasta County

1.3426%

Sierra County

0.0245%

Siskiyou County

0.3401%

Solano County

1.8979%

Sonoma County

1.1610%

Stanislaus County

3.6272%

Sutter County

0.7177%

Tehama County

0.4808%

Trinity County

0.1044%

Tulare County

2.5306%

Tuolumne County

0.6327%

Ventura County

1.3483%

Yolo County

1.5215%

Yuba County

0.5466%

2425P25  33391330317202133341415P25  29

 

13(3) Commencing with the 2012-13 fiscal year, the Multi-Agency
14Gang Enforcement Consortium shall receivebegin delete 0.2end deletebegin insert 0.19545566end insert
15 percent and shall be allocated by the Controller to Fresno County.

16(4) Commencing with the 2013-14 fiscal year, the Multi-Agency
17Gang Enforcement Consortium shall receivebegin delete 0.2end deletebegin insert 0.19545566end insert
18 percent and shall be allocated in monthly installments by the
19Controller to Fresno County.

20(5) Commencing with the 2012-13 fiscal year, the Sexual
21Assault Felony Enforcement Teams, authorized by Section 13887,
22shall receivebegin delete 12.48end deletebegin insert 12.48473003end insert percent and shall be allocated by
23the Controller according to the following schedule:

 

Los Angeles County

21.0294%

Riverside County

12.8778%

Sacramento County

14.0198%

San Luis Obispo County

12.0168%

Santa Clara County

17.0238%

Shasta County

12.0168%

Tulare County

11.0156%

P25  33391330317202133341415P25  29

 

34(6) Commencing with the 2013-14 fiscal year, the Sexual
35Assault Felony Enforcement Teams, authorized by Section 13887,
36shall receivebegin delete 12.48end deletebegin insert 12.48473003end insert percent and shall be allocated by
37the Controller in monthly installments according to the following
38schedule:

 

Los Angeles County

21.0294%

Riverside County

12.8778%

Sacramento County

14.0198%

San Luis Obispo County

12.0168%

Santa Clara County

17.0238%

Shasta County

12.0168%

Tulare County

11.0156%

1330317202133341415P25  29

 

P28   8(7) Commencing with the 2012-13 fiscal year, the High
9Technology Theft Apprehension and Prosecution Program,
10authorized by Section 13848.2, shall receivebegin delete 26.83end deletebegin insert 26.82628879end insert
11 percent and shall be allocated by the Controller according to the
12following schedule:

 

Los Angeles County

18.25%

Marin County

18.25%

Marin County, for use by the Department of Justice in implementing subdivision (b) of Section 13848.4

7.00%

Marin County, for use by the California District Attorneys Association in implementing subdivision (b) of Section 13848.4

1.75%

Sacramento County

18.25%

San Diego County

18.25%

Santa Clara County

18.25%

30317202133341415P25  29

 

25(8) Commencing with the 2013-14 fiscal year, the High
26Technology Theft Apprehension and Prosecution Program,
27authorized by Section 13848.2, shall receivebegin delete 26.83end deletebegin insert 26.82628879end insert
28 percent and shall be allocated by the Controller in monthly
29installments according to the following schedule:

 

Los Angeles County

18.25%

Marin County

18.25%

Marin County, for use by the Department of Justice in implementing subdivision (b) of Section 13848.4

7.00%

Marin County, for use by the California District Attorneys Association in implementing subdivision (b) of Section 13848.4

1.75%

Sacramento County

18.25%

San Diego County

18.25%

Santa Clara County

18.25%

7202133341415P25  29

 

P29   3(9) Commencing with the 2012-13 fiscal year, the Gang
4Violence Suppression Program, authorized by Section 13826.1,
5shall receivebegin delete 3.91end deletebegin insert 3.90911312end insert percent and shall be allocated by
6the Controller according to the following schedule:

 

Alameda County

9.6775%

Los Angeles County

22.5808%

Monterey County

9.6775%

Napa County

17.7417%

City of Oxnard

17.7417%

City of Sacramento

22.5808%

202133341415P25  29

 

15(10) Commencing with the 2013-14 fiscal year, the Gang
16Violence Suppression Program, authorized by Section 13826.1,
17shall receivebegin delete 3.91end deletebegin insert 3.90911312end insert percent and shall be allocated by
18the Controller in monthly installments according to the following
19schedule:

 

Alameda County

9.6775%

Los Angeles County

22.5808%

Monterey County

9.6775%

Napa County

17.7417%

City of Oxnard

17.7417%

City of Sacramento

22.5808%

33341415P25  29

 

28(11) Commencing with the 2012-13 fiscal year, the Central
29Valley and Central Coast Rural Crime Prevention Programs,
30authorized by Sections 14170 and 14180, shall receivebegin delete 9.06end delete
31begin insert 9.06425605end insert percent and shall be allocated by the Controller
32according to the following schedule:

 

Fresno County

18.5588%

Kern County

13.7173%

Kings County

6.8587%

Madera County

4.4380%

Merced County

6.8587%

Monterey County

7.2411%

San Benito County

4.8273%

San Joaquin County

6.8587%

San Luis Obispo County

2.1723%

Santa Barbara County

3.6206%

Santa Cruz County

1.4482%

Stanislaus County

6.8587%

Tulare County

16.5415%

1415P25  29

 

P30   9(12) Commencing with the 2013-14 fiscal year, the Central
10Valley and Central Coast Rural Crime Prevention Programs,
11authorized by Sections 14170 and 14180, shall receivebegin delete 9.06end delete
12begin insert 9.06425605end insert percent and shall be allocated by the Controller in
13monthly installments according to the following schedule:

 

Fresno County

18.5588%

Kern County

13.7173%

Kings County

6.8587%

Madera County

4.4380%

Merced County

6.8587%

Monterey County

7.2411%

San Benito County

4.8273%

San Joaquin County

6.8587%

San Luis Obispo County

2.1723%

Santa Barbara County

3.6206%

Santa Cruz County

1.4482%

Stanislaus County

6.8587%

Tulare County

16.5415%

P25  29

 

30(d) For any of the programs described in this section, funding
31will be distributed by local agencies as would otherwise have
32occurred pursuant to Section 1 of Chapter 13 of the Statutes of
332011, First Extraordinary Session.

34begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 17053.33 of the end insertbegin insertRevenue and Taxation Codeend insert
35begin insert is amended to read:end insert

36

17053.33.  

(a) For each taxable year beginning on or after January 1, 1998, and before January 1, 2014, there shall be allowed as a credit against the “net tax” (as defined in Section 17039) for the taxable year an amount equal to the sales or use tax paid or incurred during the taxable year by the qualified taxpayer in connection with the qualified taxpayer’s purchase of qualified property before January 1, 2014.

P31   3(b) For purposes of this section:

4(1) “Qualified property” means property that meets all of the
5following requirements:

6(A) Is any of the following:

7(i) Machinery and machinery parts used for fabricating,
8processing, assembling, and manufacturing.

9(ii) Machinery and machinery parts used for the production of
10renewable energy resources.

11(iii) Machinery and machinery parts used for either of the
12following:

13(I) Air pollution control mechanisms.

14(II) Water pollution control mechanisms.

15(iv) Data-processing and communications equipment, such as
16computers, computer-automated drafting systems, copy machines,
17telephone systems, and faxes.

18(v) Motion picture manufacturing equipment central to
19production and postproduction, such as cameras, audio recorders,
20and digital image and sound processing equipment.

21(B) The total cost of qualified property purchased and placed
22in service in any taxable year that may be taken into account by
23any qualified taxpayer for purposes of claiming this credit shall
24not exceed one million dollars ($1,000,000).

25(C) The qualified property is used by the qualified taxpayer
26exclusively in a targeted taxbegin delete area.end deletebegin insert area, or in the case of a targeted
27tax area that was repealed by Chapter 69 of the Statutes of 2013,
28the area designated as a targeted tax area immediately prior to
29the repeal.end insert

30(D) The qualified property is purchasedbegin delete and placed in serviceend delete
31 before the date the targeted tax area designation expires, is revoked,
32is no longer binding,begin insert becomes inoperative,end insert orbegin delete becomes inoperative.end delete
33begin insert is repealed.end insert

begin insert

34(E) The qualified property is placed in service before January
351, 2015.

end insert

36(2) (A) “Qualified taxpayer” means a person or entity that meets
37both of the following:

38(i) Is engaged in a trade or business within a targeted tax area
39designated pursuant to Chapter 12.93 (commencing with Section
407097) of Division 7 of Title 1 of the Government Code.

P32   1(ii) Is engaged in those lines of business described in Codes
22000 to 2099, inclusive; 2200 to 3999, inclusive; 4200 to 4299,
3inclusive; 4500 to 4599, inclusive; and 4700 to 5199, inclusive,
4of the Standard Industrial Classification (SIC) Manual published
5by the United States Office of Management and Budget, 1987
6edition.

7(B) In the case of any pass-through entity, the determination of
8whether a taxpayer is a qualified taxpayer under this section shall
9be made at the entity level and any credit under this section or
10Section 23633 shall be allowed to the pass-through entity and
11passed through to the partners or shareholders in accordance with
12applicable provisions of this part or Part 11 (commencing with
13Section 23001). For purposes of this subparagraph, the term
14“pass-through entity” means any partnership or S corporation.

15(3) “Targeted tax area” means the area designated pursuant to
16Chapter 12.93 (commencing with Section 7097) of Division 7 of
17Title 1 of the Governmentbegin delete Code.end deletebegin insert Code as it read on July 11, 2013.end insert

18(c) If the qualified taxpayer is allowed a credit for qualified
19property pursuant to this section, only one credit shall be allowed
20to the taxpayer under this part with respect to that qualified
21property.

22(d) If the qualified taxpayer has purchased property upon which
23a use tax has been paid or incurred, the credit provided by this
24section shall be allowed only if qualified property of a comparable
25quality and price is not timely available for purchase in this state.

26(e) In the case where the credit otherwise allowed under this
27section exceeds the “net tax” for the taxable year, that portion of
28the credit that exceeds the “net tax” may be carried over and added
29to the credit, if any, in the succeeding 10 taxable years, if necessary,
30until the credit is exhausted. The credit shall be applied first to the
31earliest taxable years possible.

32(f) Any qualified taxpayer who elects to be subject to this section
33shall not be entitled to increase the basis of the qualified property
34as otherwise required by Section 164(a) of the Internal Revenue
35Code with respect to sales or use tax paid or incurred in connection
36with the qualified taxpayer’s purchase of qualified property.

37(g) (1) The amount of the credit otherwise allowed under this
38section and Section 17053.34, including any credit carryover from
39prior years, that may reduce the “net tax” for the taxable year shall
40not exceed the amount of tax that would be imposed on the
P33   1qualified taxpayer’s business income attributable to the targeted
2tax area determined as if that attributable income represented all
3of the income of the qualified taxpayer subject to tax under this
4part.

5(2) Attributable income shall be that portion of the taxpayer’s
6California source business income that is apportioned to the
7targeted tax area. For that purpose, the taxpayer’s business income
8attributable to sources in this state first shall be determined in
9accordance with Chapter 17 (commencing with Section 25101) of
10Part 11. That business income shall be further apportioned to the
11targeted tax area in accordance with Article 2 (commencing with
12Section 25120) of Chapter 17 of Part 11, modified for purposes
13of this section in accordance with paragraph (3).

14(3) Business income shall be apportioned to the targeted tax
15area by multiplying the total California business income of the
16taxpayer by a fraction, the numerator of which is the property
17factor plus the payroll factor, and the denominator of which is two.
18For purposes of this paragraph:

19(A) The property factor is a fraction, the numerator of which is
20the average value of the taxpayer’s real and tangible personal
21property owned or rented and used in the targeted tax area during
22the taxable year, and the denominator of which is the average value
23of all the taxpayer’s real and tangible personal property owned or
24rented and used in this state during the taxable year.

25(B) The payroll factor is a fraction, the numerator of which is
26the total amount paid by the taxpayer in the targeted tax area during
27the taxable year for compensation, and the denominator of which
28is the total compensation paid by the taxpayer in this state during
29the taxable year.

30(4) The portion of any credit remaining, if any, after application
31of this subdivision, shall be carried over to succeeding taxable
32years, if necessary, until the credit is exhausted, as if it were an
33amount exceeding the “net tax” for the taxable year, as provided
34in subdivision (e). However, the portion of any credit remaining
35for carryover to taxable years beginning on or after January 1,
362014, if any, after application of this subdivision, shall be carried
37over only to the succeeding 10 taxable years if necessary, until the
38credit is exhausted, as if it were an amount exceeding the “net tax”
39for the taxable year, as provided in subdivision (e).

P34   1(5) In the event that a credit carryover is allowable under
2subdivision (e) for any taxable year after the targeted tax area
3designation has expired, has been revoked, is no longer binding,
4or has become inoperative, the targeted tax area shall be deemed
5to remain in existence for purposes of computing the limitation
6specified in this subdivision.

7(h) The amendments made to this section by the act adding this
8subdivision shall apply to taxable years beginning on or after
9January 1, 1998.

10(i) This section is repealed on December 1,begin delete 2014.end deletebegin insert 2015.end insert

11begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 17053.70 of the end insertbegin insertRevenue and Taxation Codeend insert
12begin insert is amended to read:end insert

13

17053.70.  

(a) There shall be allowed as a credit against the
14“net tax” (as defined in Section 17039) for the taxable year an
15amount equal to the sales or use tax paid or incurred during the
16taxable year by the taxpayer in connection with the taxpayer’s
17purchase of qualified property before January 1, 2014.

18(b) For purposes of this section:

19(1) “Taxpayer” means a person or entity engaged in a trade or
20business within an enterprise zone.

21(2) “Qualified property” means:

22(A) Any of the following:

23(i) Machinery and machinery parts used for fabricating,
24processing, assembling, and manufacturing.

25(ii) Machinery and machinery parts used for the production of
26renewable energy resources.

27(iii) Machinery and machinery parts used for either of the
28following:

29(I) Air pollution control mechanisms.

30(II) Water pollution control mechanisms.

31(iv) Data processing and communications equipment, including,
32but not limited, to computers, computer-automated drafting
33systems, copy machines, telephone systems, and faxes.

34(v) Motion picture manufacturing equipment central to
35production and postproduction, including, but not limited to,
36cameras, audio recorders, and digital image and sound processing
37equipment.

38(B) The total cost of qualified property purchased and placed
39in service in any taxable year that may be taken into account by
P35   1any taxpayer for purposes of claiming this credit shall not exceed
2one million dollars ($1,000,000).

3(C) The qualified property is used by the taxpayer exclusively
4in an enterprisebegin delete zone.end deletebegin insert zone, or in the case of an enterprise zone
5that was repealed by Chapter 69 of the Statutes of 2013, the area
6designated as an enterprise zone immediately prior to the repeal.end insert

7(D) The qualified property is purchasedbegin delete and placed in serviceend delete
8 before the date the enterprise zone designation expires, isbegin insert revoked,
9isend insert
no longer binding,begin insert becomes inoperative,end insert orbegin delete becomes inoperative.end delete
10begin insert is repealed.end insert

begin insert

11(E) The qualified property is placed in service before January
121, 2015.

end insert

13(3) “Enterprise zone” means the area designated as an enterprise
14zone pursuant to Chapter 12.8 (commencing with Section 7070)
15of Division 7 of Title 1 of the Government Code as it read onbegin delete the
16effective date of the act amending this section.end delete
begin insert July 11, 2013.end insert

17(c) If the taxpayer has purchased property upon which a use tax
18has been paid or incurred, the credit provided by this section shall
19be allowed only if qualified property of a comparable quality and
20price is not timely available for purchase in this state.

21(d) In the case where the credit otherwise allowed under this
22section exceeds the “net tax” for the taxable year, that portion of
23the credit that exceeds the “net tax” may be carried over and added
24to the credit, if any, in the succeeding 10 taxable years, if necessary,
25until the credit is exhausted. The credit shall be applied first to the
26earliest taxable years possible.

27(e) Any taxpayer that elects to be subject to this section shall
28not be entitled to increase the basis of the qualified property as
29otherwise required by Section 164(a) of the Internal Revenue Code
30with respect to sales or use tax paid or incurred in connection with
31the taxpayer’s purchase of qualified property.

32(f) (1) The amount of the credit otherwise allowed under this
33section and Section 17053.74, including any credit carryover from
34prior years, that may reduce the “net tax” for the taxable year shall
35not exceed the amount of tax that would be imposed on the
36taxpayer’s business income attributable to the enterprise zone
37determined as if that attributable income represented all of the
38income of the taxpayer subject to tax under this part.

39(2)  Attributable income shall be that portion of the taxpayer’s
40California source business income that is apportioned to the
P36   1enterprise zone. For that purpose, the taxpayer’s business income
2attributable to sources in this state first shall be determined in
3accordance with Chapter 17 (commencing with Section 25101) of
4Part 11. That business income shall be further apportioned to the
5enterprise zone in accordance with Article 2 (commencing with
6Section 25120) of Chapter 17 of Part 11, modified for purposes
7of this section in accordance with paragraph (3).

8(3) Business income shall be apportioned to the enterprise zone
9by multiplying the total California business income of the taxpayer
10by a fraction, the numerator of which is the property factor plus
11the payroll factor, and the denominator of which is two. For
12purposes of this paragraph:

13(A) The property factor is a fraction, the numerator of which is
14the average value of the taxpayer’s real and tangible personal
15property owned or rented and used in the enterprise zone during
16the taxable year, and the denominator of which is the average value
17of all the taxpayer’s real and tangible personal property owned or
18rented and used in this state during the taxable year.

19(B) The payroll factor is a fraction, the numerator of which is
20the total amount paid by the taxpayer in the enterprise zone during
21the taxable year for compensation, and the denominator of which
22is the total compensation paid by the taxpayer in this state during
23the taxable year.

24(4) The portion of any credit remaining, if any, after application
25of this subdivision, shall be carried over to succeeding taxable
26years, if necessary, until the credit is exhausted, as if it were an
27amount exceeding the “net tax” for the taxable year, as provided
28in subdivision (d). However, the portion of any credit remaining
29for carryover to taxable years beginning on or after January 1,
302014, if any, after application of this subdivision, shall be carried
31over only to the succeeding 10 taxable years, if necessary, until
32the credit is exhausted, as if it were an amount exceeding the “net
33tax” for the taxable year, as provided in subdivision (d).

34(g) The amendments made to this section by the act adding this
35subdivision shall apply to taxable years beginning on or after
36January 1, 1998.

37(h) This section is repealed on December 1,begin delete 2014.end deletebegin insert 2015.end insert

38begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 18410.2 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
39amended to read:end insert

P37   1

18410.2.  

(a) The California Competes Tax Credit Committee
2is hereby established. The committee shall consist of the Treasurer,
3the Director of Finance, and the Director of the Governor’s Office
4of Business and Economic Development,begin insert who shall serve as chair
5of the committee,end insert
or their designated representatives, and one
6appointee eachbegin delete fromend deletebegin insert byend insert thebegin delete Senateend deletebegin insert Speaker of the Assemblyend insert and
7thebegin delete Assembly.end deletebegin insert Senate Committee on Rules. A member of the
8Legislature shall not be appointed.end insert

9(b) For purposes of Sections 17059.2 and 23689, the California
10Competes Tax Credit Committee shall do all of the following:

11(1) Approve or reject any written agreement for a tax credit
12allocation by resolution at a duly noticed public meeting held in
13accordance with the Bagley-Keene Open Meeting Act (Article 9
14(commencing with Section 11120) of Chapter 1 of Part 1 of
15Division 3 of Title 2 of the Government Code), but only after
16receipt of the fully executed written agreement between the
17taxpayer and the Governor’s Office of Business and Economic
18Development.

19(2) Approve or reject any recommendation to recapture, in whole
20or in part, a tax credit allocation by resolution at a duly noticed
21public meeting held in accordance with the Bagley-Keene Open
22Meeting Act (Article 9 (commencing with Section 11120) of
23Chapter 1 of Part 1 of Division 3 of Title 2 of the Government
24Code), but only after receipt of the recommendation from the
25Governor’s Office of Business and Economic Development
26pursuant to the terms of the fully executed written agreement.

27begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 23612.2 of the end insertbegin insertRevenue and Taxation Codeend insert
28begin insert is amended to read:end insert

29

23612.2.  

(a) There shall be allowed as a credit against the
30“tax” (as defined by Section 23036) for the taxable year an amount
31equal to the sales or use tax paid or incurred during the taxable
32year by the taxpayer in connection with the taxpayer’s purchase
33of qualified property before January 1, 2014.

34(b) For purposes of this section:

35(1) “Taxpayer” means a corporation engaged in a trade or
36business within an enterprise zone.

37(2) “Qualified property” means:

38(A) Any of the following:

39(i) Machinery and machinery parts used for fabricating,
40processing, assembling, and manufacturing.

P38   1(ii) Machinery and machinery parts used for the production of
2renewable energy resources.

3(iii) Machinery and machinery parts used for either of the
4following:

5(I) Air pollution control mechanisms.

6(II) Water pollution control mechanisms.

7(iv) Data-processing and communications equipment, including,
8but not limited to, computers, computer-automated drafting
9systems, copy machines, telephone systems, and faxes.

10(v) Motion picture manufacturing equipment central to
11production and postproduction, including, but not limited to,
12cameras, audio recorders, and digital image and sound processing
13equipment.

14(B) The total cost of qualified property purchased and placed
15in service in any taxable year that may be taken into account by
16any taxpayer for purposes of claiming this credit shall not exceed
17twenty million dollars ($20,000,000).

18(C) The qualified property is used by the taxpayer exclusively
19in an enterprisebegin delete zone.end deletebegin insert zone, or in the case of an enterprise zone
20that was repealed by Chapter 69 of the Statutes of 2013, the area
21designated as an enterprise zone immediately prior to the repeal.end insert

22(D) The qualified property is purchasedbegin delete and placed in serviceend delete
23 before the date the enterprise zone designation expires, isbegin insert revoked,
24isend insert
no longer binding,begin insert becomes inoperative,end insert orbegin delete becomes inoperative.end delete
25begin insert is repealed.end insert

begin insert

26(E) The qualified property is placed in service before January
271, 2015.

end insert

28(3) “Enterprise zone” means the area designated as an enterprise
29zone pursuant to Chapter 12.8 (commencing with Section 7070)
30of Division 7 of Title 1 of the Government Code as it read onbegin delete the
31effective date of the act amending this section.end delete
begin insert July 11, 2013.end insert

32(c) If the taxpayer has purchased property upon which a use tax
33has been paid or incurred, the credit provided by this section shall
34be allowed only if qualified property of a comparable quality and
35price is not timely available for purchase in this state.

36(d) In the case where the credit otherwise allowed under this
37section exceeds the “tax” for the taxable year, that portion of the
38credit which exceeds the “tax” may be carried over and added to
39the credit, if any, in the succeeding 10 taxable years if necessary,
P39   1until the credit is exhausted. The credit shall be applied first to the
2earliest taxable years possible.

3(e) Any taxpayer that elects to be subject to this section shall
4not be entitled to increase the basis of the qualified property as
5otherwise required by Section 164(a) of the Internal Revenue Code
6with respect to sales or use tax paid or incurred in connection with
7the taxpayer’s purchase of qualified property.

8(f) (1) The amount of credit otherwise allowed under this
9section and Section 23622.7, including any credit carryover from
10prior years, that may reduce the “tax” for the taxable year shall
11not exceed the amount of tax which would be imposed on the
12taxpayer’s business income attributable to the enterprise zone
13determined as if that attributable income represented all of the
14income of the taxpayer subject to tax under this part.

15(2) Attributable income shall be that portion of the taxpayer’s
16 California source business income that is apportioned to the
17enterprise zone. For that purpose, the taxpayer’s business income
18attributable to sources in this state first shall be determined in
19accordance with Chapter 17 (commencing with Section 25101).
20That business income shall be further apportioned to the enterprise
21zone in accordance with Article 2 (commencing with Section
2225120) of Chapter 17, modified for purposes of this section in
23accordance with paragraph (3).

24(3) Business income shall be apportioned to the enterprise zone
25by multiplying the total California business income of the taxpayer
26by a fraction, the numerator of which is the property factor plus
27the payroll factor, and the denominator of which is two. For
28purposes of this paragraph:

29(A) The property factor is a fraction, the numerator of which is
30the average value of the taxpayer’s real and tangible personal
31 property owned or rented and used in the enterprise zone during
32the taxable year, and the denominator of which is the average value
33of all the taxpayer’s real and tangible personal property owned or
34rented and used in this state during the taxable year.

35(B) The payroll factor is a fraction, the numerator of which is
36the total amount paid by the taxpayer in the enterprise zone during
37the taxable year for compensation, and the denominator of which
38is the total compensation paid by the taxpayer in this state during
39the taxable year.

P40   1(4) The portion of any credit remaining, if any, after application
2of this subdivision, shall be carried over to succeeding taxable
3years if necessary, until the credit is exhausted, as if it were an
4amount exceeding the “tax” for the taxable year, as provided in
5subdivision (d). However, the portion of any credit remaining for
6carryover to taxable years beginning on January 1, 2014, if any,
7after application of this subdivision, shall be carried over only to
8the succeeding 10 taxable years if necessary, until the credit is
9exhausted, as if it were an amount exceeding the “tax” for the
10taxable year, as provided in subdivision (d).

11(g) The amendments made to this section by the act adding this
12subdivision shall apply to taxable years beginning on or after
13January 1, 1998.

14(h) This section is repealed on December 1,begin delete 2014.end deletebegin insert 2015.end insert

15begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 23633 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
16amended to read:end insert

17

23633.  

(a) For each taxable year beginning on or after January
181, 1998, and before January 1, 2014, there shall be allowed as a
19credit against the “tax” (as defined by Section 23036) for the
20taxable year an amount equal to the sales or use tax paid or incurred
21during the taxable year by the qualified taxpayer in connection
22with the qualified taxpayer’s purchase of qualified property before
23January 1, 2014.

24(b) For purposes of this section:

25(1) “Qualified property” means property that meets all of the
26following requirements:

27(A) Is any of the following:

28(i) Machinery and machinery parts used for fabricating,
29processing, assembling, and manufacturing.

30(ii) Machinery and machinery parts used for the production of
31renewable energy resources.

32(iii) Machinery and machinery parts used for either of the
33following:

34(I) Air pollution control mechanisms.

35(II) Water pollution control mechanisms.

36(iv) Data-processing and communications equipment, such as
37computers, computer-automated drafting systems, copy machines,
38telephone systems, and faxes.

P41   1(v) Motion picture manufacturing equipment central to
2production and postproduction, such as cameras, audio recorders,
3and digital image and sound processing equipment.

4(B) The total cost of qualified property purchased and placed
5in service in any taxable year that may be taken into account by
6any qualified taxpayer for purposes of claiming this credit shall
7not exceed twenty million dollars ($20,000,000).

8(C) The qualified property is used by the qualified taxpayer
9exclusively in a targeted taxbegin delete area.end deletebegin insert area, or in the case of a targeted
10tax area that was repealed by Chapter 69 of the Statutes of 2013,
11the area designated as a targeted tax area immediately prior to
12the repeal.end insert

13(D) The qualified property is purchasedbegin delete and placed in serviceend delete
14 before the date the targeted tax area designation expires, is revoked,
15is no longer binding,begin insert becomes inoperative,end insert orbegin delete becomes inoperative.end delete
16begin insert is repealed.end insert

begin insert

17(E) The qualified property is placed in service before January
181, 2015.

end insert

19(2) (A) “Qualified taxpayer” means a corporation that meets
20both of the following:

21(i) Is engaged in a trade or business within a targeted tax area
22designated pursuant to Chapter 12.93 (commencing with Section
237097) of Division 7 of Title 1 of the Government Code.

24(ii) Is engaged in those lines of business described in Codes
252000 to 2099, inclusive; 2200 to 3999, inclusive; 4200 to 4299,
26inclusive; 4500 to 4599, inclusive; and 4700 to 5199, inclusive,
27of the Standard Industrial Classification (SIC) Manual published
28by the United States Office of Management and Budget, 1987
29edition.

30(B) In the case of any pass-through entity, the determination of
31whether a taxpayer is a qualified taxpayer under this section shall
32be made at the entity level and any credit under this section or
33Section 17053.33 shall be allowed to the pass-through entity and
34passed through to the partners or shareholders in accordance with
35applicable provisions of this part or Part 10 (commencing with
36Section 17001). For purposes of this subparagraph, the term
37“pass-through entity” means any partnership or S corporation.

38(3) “Targeted tax area” means the area designated pursuant to
39Chapter 12.93 (commencing with Section 7097) of Division 7 of
40Title 1 of the Governmentbegin delete Code.end deletebegin insert Code as it read on July 11, 2013.end insert

P42   1(c) If the qualified taxpayer is allowed a credit for qualified
2property pursuant to this section, only one credit shall be allowed
3to the taxpayer under this part with respect to that qualified
4property.

5(d) If the qualified taxpayer has purchased property upon which
6a use tax has been paid or incurred, the credit provided by this
7section shall be allowed only if qualified property of a comparable
8quality and price is not timely available for purchase in this state.

9(e) In the case where the credit otherwise allowed under this
10section exceeds the “tax” for the taxable year, that portion of the
11credit that exceeds the “tax” may be carried over and added to the
12credit, if any, in the succeeding 10 taxable years, if necessary, until
13the credit is exhausted. The credit shall be applied first to the
14earliest taxable years possible.

15(f) Any qualified taxpayer who elects to be subject to this section
16shall not be entitled to increase the basis of the qualified property
17as otherwise required by Section 164(a) of the Internal Revenue
18Code with respect to sales or use tax paid or incurred in connection
19with the qualified taxpayer’s purchase of qualified property.

20(g) (1) The amount of credit otherwise allowed under this
21section and Section 23634, including any credit carryover from
22prior years, that may reduce the “tax” for the taxable year shall
23not exceed the amount of tax that would be imposed on the
24qualified taxpayer’s business income attributable to the targeted
25tax area determined as if that attributable income represented all
26of the income of the qualified taxpayer subject to tax under this
27part.

28(2) Attributable income shall be that portion of the taxpayer’s
29California source business income that is apportioned to the
30targeted tax area. For that purpose, the taxpayer’s business income
31attributable to sources in this state first shall be determined in
32accordance with Chapter 17 (commencing with Section 25101).
33That business income shall be further apportioned to the targeted
34tax area in accordance with Article 2 (commencing with Section
3525120) of Chapter 17, modified for purposes of this section in
36accordance with paragraph (3).

37(3) Business income shall be apportioned to the targeted tax
38area by multiplying the total California business income of the
39taxpayer by a fraction, the numerator of which is the property
P43   1factor plus the payroll factor, and the denominator of which is two.
2For purposes of this paragraph:

3(A) The property factor is a fraction, the numerator of which is
4the average value of the taxpayer’s real and tangible personal
5property owned or rented and used in the targeted tax area during
6the taxable year and the denominator of which is the average value
7of all the taxpayer’s real and tangible personal property owned or
8rented and used in this state during the taxable year.

9(B) The payroll factor is a fraction, the numerator of which is
10the total amount paid by the taxpayer in the targeted tax area during
11the taxable year for compensation, and the denominator of which
12is the total compensation paid by the taxpayer in this state during
13the taxable year.

14(4) The portion of any credit remaining, if any, after application
15of this subdivision, shall be carried over to succeeding taxable
16years, if necessary, until the credit is exhausted, as if it were an
17amount exceeding the “tax” for the taxable year, as provided in
18subdivision (e). However, the portion of any credit remaining for
19carryover to taxable years beginning on or after January 1, 2014,
20if any, after application of this subdivision, shall be carried over
21only to the succeeding 10 taxable years if necessary, until the credit
22is exhausted, as if it were an amount exceeding the “tax” for the
23taxable year, as provided in subdivision (e).

24(5) In the event that a credit carryover is allowable under
25subdivision (e) for any taxable year after the targeted tax area
26designation has expired, has been revoked, is no longer binding,
27or has become inoperative, the targeted tax area shall be deemed
28to remain in existence for purposes of computing the limitation
29specified in this subdivision.

30(h) The changes made to this section by the act adding this
31subdivision shall apply to taxable years beginning on or after
32January 1, 1998.

33(i) This section is repealed on December 1,begin delete 2014.end deletebegin insert 2015.end insert

34begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 1403 of the end insertbegin insertWelfare and Institutions Codeend insertbegin insert is
35amended to read:end insert

36

1403.  

This chapter shall remain in effect only until January 1,
37begin delete 2014,end deletebegin insert 2016,end insert and as of that date is repealed, unless a later enacted
38statute, that is enacted before January 1,begin delete 2014,end deletebegin insert 2016,end insert deletes or
39extends that date.

P44   1begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 18220 of the end insertbegin insertWelfare and Institutions Codeend insert
2begin insert is amended to read:end insert

3

18220.  

(a) For the 2011-12 fiscal year, the Controller shall
4allocate 33.38 percent of the funds deposited in the Local Law
5Enforcement Services Account in the Local Revenue Fund 2011
6for purposes of Section 18221.

7(b) (1) Commencing with the 2012-13 fiscal year,begin insert subsequent
8toend insert
thebegin insert allocation described in subdivision (c) of Section 29552 of
9the Government Code, theend insert
Controller shall allocatebegin delete 30.99end delete
10begin insert 33.37876457end insert percent of thebegin insert remainingend insert funds deposited in the
11Enhancing Law Enforcement Activities Subaccount in the Local
12Revenue Fund 2011 according to the schedule in subdivision (c),
13for purposes of Section 18221.

14(2) Commencing with the 2013-14 fiscal year,begin insert subsequent toend insert
15 thebegin insert allocation described in subdivision (d) of Section 29552 of the
16Government Code theend insert
Controller shallbegin delete allocate,end deletebegin insert allocate
1733.37876457 percent of the remaining funds depositedend insert
inbegin insert the
18Enhancing Law Enforcement Activities Subaccount in the Local
19Revenue Fund 2011, inend insert
monthly installments,begin insert according toend insert the
20begin delete funds specifiedend deletebegin insert scheduleend insert inbegin delete paragraph (1) in accordance with
21subdivision (c).end delete
begin insert subdivision (c), for purposes of Section 18221.end insert

22(c) The Controller shall allocate funds to local jurisdictions to
23support juvenile probation activities according to the following
24schedule:


25

 

Alameda County   

3.9522%

Alpine County   

0.0004%

Amador County   

0.0597%

Butte County   

0.3193%

Calaveras County   

0.0611%

Colusa County   

0.0341%

Contra Costa County   

2.6634%

Del Norte County   

0.1170%

El Dorado County   

0.3016%

Fresno County   

2.1547%

Glenn County   

0.0536%

Humboldt County   

0.1696%

Imperial County   

0.3393%

Inyo County   

0.1432%

Kern County   

2.5687%

Kings County   

0.3839%

Lake County   

0.1866%

Lassen County   

0.0543%

Los Angeles County   

40.1353%

Madera County   

0.2399%

Marin County   

0.3742%

Mariposa County   

0.0133%

Mendocino County   

0.1975%

Merced County   

0.3464%

Modoc County   

0.0213%

Mono County   

0.0071%

Monterey County   

0.6039%

Napa County   

0.3520%

Nevada County   

0.1244%

Orange County   

8.4582%

Placer County   

0.2667%

Plumas County   

0.0273%

Riverside County   

3.2234%

Sacramento County   

2.1350%

San Benito County   

0.2136%

San Bernardino County   

3.4715%

San Diego County   

5.6095%

San Francisco County   

1.9161%

San Joaquin County   

0.8854%

San Luis Obispo County   

0.6007%

San Mateo County   

1.8974%

Santa Barbara County   

1.6561%

Santa Clara County   

5.8082%

Santa Cruz County   

0.6128%

Shasta County   

0.4116%

Sierra County   

0.0037%

Siskiyou County   

0.0750%

Solano County   

1.0363%

Sonoma County   

1.3043%

Stanislaus County   

0.5275%

Sutter County   

0.1344%

Tehama County   

0.1444%

Trinity County   

0.0346%

Tulare County   

1.4116%

Tuolumne County   

0.0706%

Ventura County   

1.7193%

Yolo County   

0.2543%

Yuba County   

0.1125%

  
P46   5

 

6begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 18220.1 of the end insertbegin insertWelfare and Institutions Codeend insert
7begin insert is amended to read:end insert

8

18220.1.  

(a) For the 2011-12 fiscal year, the Controller shall,
9on a quarterly basis beginning October 1, allocate 6.47 percent of
10the funds deposited in the Local Law Enforcement Services
11Account in the Local Revenue Fund 2011 pursuant to a schedule
12provided by the Department of Corrections and Rehabilitation.
13The department’s schedule shall provide for the allocation of funds
14appropriated in the annual Budget Act, and included in the Local
15Law Enforcement Services Account, among counties that operate
16juvenile camps and ranches based on the number of occupied beds
17in each camp as of 12:01 a.m. each day, up to the Corrections
18Standards Authority rated maximum capacity, as determined by
19the Corrections Standards Authority.

20(b) Commencing with the 2012-13 fiscal year,begin insert subsequent toend insert
21 thebegin insert allocation described in subdivision (c) of Section 29552 of the
22Government Code, theend insert
Controller shall allocatebegin delete 6.01end deletebegin insert 6.46955375end insert
23 percent of thebegin insert remainingend insert funds deposited in the Enhancing Law
24Enforcement Activities Subaccount in the Local Revenue Fund
252011 pursuant to the schedule provided by the Department of
26Finance based on data reported to the Board of State and
27Community Corrections. The schedule shall provide for the
28allocation of funds appropriated in the annual Budget Act, and
29included in the Enhancing Law Enforcement Activities Subaccount,
30among counties that operate juvenile camps and ranches based on
31the number of occupied beds in each camp as of 12:01 a.m. each
32day, up to the rated maximum capacity, as determined by the board.
33Allocations shall be made following the end of each fiscal quarter,
34beginning July 1, 2012, to account for beds occupied in that quarter.

35(c) Commencing with the 2013-14 fiscal year,begin insert subsequent toend insert
36 thebegin insert allocation described in subdivision (d) of Section 29552 of the
37Government Code, theend insert
Controller shall allocatebegin delete 6.01end deletebegin insert 6.46955375end insert
38 percent of thebegin insert remainingend insert funds deposited in the Enhancing Law
39Enforcement Activities Subaccount in the Local Revenue Fund
402011 pursuant to the schedule provided by the Department of
P47   1Finance based on data reported to the Board of State and
2Community Corrections. The schedule shall provide for the
3allocation of funds appropriated in the annual Budget Act, and
4included in the Enhancing Law Enforcement Activities Subaccount,
5among counties that operate juvenile camps and ranches based on
6the number of occupied beds in each camp as of 12:01 a.m. each
7day, up to the rated maximum capacity, as determined by the board.
8Allocations shall be made in monthly installments.

9begin insert

begin insertSEC. 15.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant
10to Section 6 of Article XIII B of the California Constitution because
11the only costs that may be incurred by a local agency or school
12district will be incurred because this act creates a new crime or
13infraction, eliminates a crime or infraction, or changes the penalty
14for a crime or infraction, within the meaning of Section 17556 of
15the Government Code, or changes the definition of a crime within
16the meaning of Section 6 of Article XIII B of the California
17Constitution.

end insert
18begin insert

begin insertSEC. 16.end insert  

end insert
begin insert

The sum of one hundred thousand dollars ($100,000)
19is hereby appropriated from the General Fund to the Governor’s
20Office of Economic Development to provide staff support for the
21California Competes Tax Credit Committee pursuant to Section
2218410.2 of the Revenue and Taxation Code.

end insert
23begin insert

begin insertSEC. 17.end insert  

end insert
begin insert

This act is a bill providing for appropriations related
24to the Budget Bill within the meaning of subdivision (e) of Section
2512 of Article IV of the California Constitution, has been identified
26as related to the budget in the Budget Bill, and shall take effect
27immediately.

end insert
begin delete
28

SECTION 1.  

It is the intent of the Legislature to enact statutory
29changes relating to the Budget Act of 2013.

end delete


O

    98