Amended in Senate May 28, 2013

Amended in Senate April 22, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 383


Introduced by Assembly Member Wagner

February 14, 2013


An act to amend Sections 1202, 4836.1, 4999.32, 5096.10, 21609.1, 23958.4, 25502.2, and 25600.2 of the Business and Professions Code, to amend Sections 55.56, 56.16, 1195, 1950.5, 2877, 2923.55, 2924.8, 2924.19, 2950, and 3509 of the Civil Code, to amend Sections 116.940, 425.50, 684.115, and 1282.4 of the Code of Civil Procedure, to amend Section 7237 of, and to amend and renumber the heading of Chapter 5.5 (commencing with Section 15900) of Title 2 of, the Corporations Code, to amend Sections 15282, 17193.5, 17250.25, 18720, 22138.5, 33195, 35583, 38000, 41320.1, 41326, 47660, 48853, 48853.5, 48900, 48902, 48911, 49076, 49548, 52052, 60200.8, 60209, 60605.87, 60852.1, 66407, 81378.1, and 88620 of the Education Code, to amend Sections 2162, 2224, 2225, 3111, 13115, and 21000 of the Elections Code, to amend Sections 3047, 3200.5, and 4055 of the Family Code, to amend Sections 1587 and 15100 of the Fish and Game Code, to amend Sections 4101.3, 4106, 14611, 19447, 55527.6, and 64101 of the Food and Agricultural Code, to amend Sections 3513, 3527, 7522.20, 7522.56, 7522.57, 7522.72, 8164.1, 11019, 11020, 11435.15, 11552, 12460, 12838.14, 12926, 14837, 15820.922, 19815, 20391, 20410, 20516, 20677.7, 25060, 25062, 65040.7, 65302.5, and 65915 of, to amend the heading of Chapter 3.1 (commencing with Section 8240) of Division 1 of Title 2 of, to amend and renumber Sections 15606.5, 15814.25, and 15819.30 of, to repeal Section 7480 of, and to repeal the heading of Chapter 3 (commencing with Section 15570) of Part 8.5 of Division 3 of Title 2 of, the Government Code, to amend Sections 80.2 and 82 of, and to amend the heading of Chapter 3 (commencing with Section 80) of Division 1 of, the Harbors and Navigation Code, to amend Sections 1339.40, 1339.41, 1367.65, 1531.15, 11378, 11755, 25110.11, 34177, 34183.5, 39053, 39510, 39710, 39712, 39716, 39718, 106985, 114365.5, 114380, 116565, 120365, 123327, 123940, 123955, 125286.20, 128570, 129725, and 136000 of the Health and Safety Code, to amend Sections 395, 676.75, 922.41, 1063.1, 1754, 10113.71, 10124, 10271, 11665, and 12694.1 of the Insurance Code, to amend Sections 980, 4709, and 5502 of the Labor Code, to amend Sections 136.2, 166, 171c, 273.6, 289.6, 496a, 626.95, 626.10, 781, 830.41, 830.55, 1001.20, 1170, 1203.097, 1203.4a, 1230, 1370.1, 2602, 3000.08, 3060.7, 4024.2, 4115.55, 5072, 6030, 11165.7, 11166, 12022, and 12022.1 of, and to repeal the heading of Title 4.5 (commencing with Section 13600) of Part 4 of, the Penal Code, to amend Sections 10295.6 and 20651.7 of the Public Contract Code, to amend Sections 4629.5, 4629.9, 6224.5, 21080.37, 21080.5, 21084, and 72410 of the Public Resources Code, to amend Sections 2827.10, 2862, 5142, 5143, 9506, and 185035 of the Public Utilities Code, to amend Sections 2188.6, 7285.3, 17276.20, 18152.5, 18738, 23685, 24416.20 of, and to amend and renumber Section 24900 of, the Revenue and Taxation Code, to amend Sections 1755 and 14211 of the Unemployment Insurance Code, to amend Sections 11205, 12804.11, 16028, 23612, 34510.5, and 40000.20 of the Vehicle Code, to amend Section 85057.5 of the Water Code, to amend Sections 366.21, 366.22, 366.25, 4141, 4427.5, 4648, 4684.53, 5008, 5328.03, 6254, 7295, 12306, 14005.27, 14043.25, 14043.7, 14132.275, 14132.276, 14169.32, 14182, 14182.16, 15630, 15650, and 18969 of, and to repeal Section 4792.1 of, the Welfare and Institutions Code, to amend Section 1 of Chapter 357 of the Statutes of 2012, to amend Section 1 of Chapter 513 of the Statutes of 2012, to amend Section 1 of Chapter 541 of the Statutes of 2012, and to amend Section 2 of Chapter 719 of the Statutes of 2012, relating to maintenance of the codes.

LEGISLATIVE COUNSEL’S DIGEST

AB 383, as amended, Wagner. Maintenance of the codes.

Existing law directs the Legislative Counsel to advise the Legislature from time to time as to legislation necessary to maintain the codes.

This bill would make nonsubstantive changes in various provisions of law to effectuate the recommendations made by the Legislative Counsel to the Legislature.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

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

P3    1

SECTION 1.  

Section 1202 of the Business and Professions
2Code
is amended to read:

3

1202.  

As used in this chapter, “department” means the State
4Department of Public Health.

5

SEC. 2.  

Section 4836.1 of the Business and Professions Code
6 is amended to read:

7

4836.1.  

(a) Notwithstanding any other law, a registered
8veterinary technician or a veterinary assistant may administer a
9drug, including, but not limited to, a drug that is a controlled
10substance, under the direct or indirect supervision of a licensed
11veterinarian when done pursuant to the order, control, and full
12professional responsibility of a licensed veterinarian. However,
13no person, other than a licensed veterinarian, may induce anesthesia
14unless authorized by regulation of the board.

15(b) Access to controlled substances by veterinary assistants
16under this section is limited to persons who have undergone a
17background check and who, to the best of the licensee manager’s
18knowledge, do not have any drug- or alcohol-related felony
19convictions.

20(c) Notwithstanding subdivision (b), if the Veterinary Medical
21Board, in consultation with the Board of Pharmacy, identifies a
22dangerous drug, as defined in Section 4022, as a drug which has
23an established pattern of being diverted, the Veterinary Medical
24Board may restrict access to that drug by veterinary assistants.

25(d) For purposes of this section, the following definitions apply:

26(1) “Controlled substance” has the same meaning as that term
27is defined in Section 11007 of the Health and Safety Code.

28(2) “Direct supervision” has the same meaning as that term is
29defined in subdivision (e) of Section 2034 of Title 16 of the
30California Code of Regulations.

31(3) “Drug” has the same meaning as that term is defined in
32Section 11014 of the Health and Safety Code.

P4    1(4) “Indirect supervision” has the same meaning as that term is
2defined in subdivision (f) of Section 2034 of Title 16 of the
3California Code of Regulations.

4(e) This section shall remain in effect only until January 1, 2015,
5and as of that date is repealed, unless a later enacted statute, that
6is enacted before January 1, 2015, deletes or extends that date.

7

SEC. 3.  

Section 4999.32 of the Business and Professions Code
8 is amended to read:

9

4999.32.  

(a) This section shall apply to applicants for
10examination eligibility or registration who begin graduate study
11before August 1, 2012, and complete that study on or before
12December 31, 2018. Those applicants may alternatively qualify
13under paragraph (2) of subdivision (a) of Section 4999.33.

14(b) To qualify for examination eligibility or registration,
15applicants shall possess a master’s or doctoral degree that is
16counseling or psychotherapy in content and that meets the
17requirements of this section, obtained from an accredited or
18approved institution, as defined in Section 4999.12. For purposes
19of this subdivision, a degree is “counseling or psychotherapy in
20content” if it contains the supervised practicum or field study
21experience described in paragraph (3) of subdivision (c) and, except
22as provided in subdivision (d), the coursework in the core content
23areas listed in subparagraphs (A) to (I), inclusive, of paragraph (1)
24of subdivision (c).

25(c) The degree described in subdivision (b) shall contain not
26less than 48 graduate semester or 72 graduate quarter units of
27instruction, which shall, except as provided in subdivision (d),
28include all of the following:

29(1) The equivalent of at least three semester units or four and
30one-half quarter units of graduate study in each of the following
31core content areas:

32(A) Counseling and psychotherapeutic theories and techniques,
33including the counseling process in a multicultural society, an
34orientation to wellness and prevention, counseling theories to assist
35in selection of appropriate counseling interventions, models of
36counseling consistent with current professional research and
37practice, development of a personal model of counseling, and
38multidisciplinary responses to crises, emergencies, and disasters.

39(B) Human growth and development across the lifespan,
40including normal and abnormal behavior and an understanding of
P5    1developmental crises, disability, psychopathology, and situational
2and environmental factors that affect both normal and abnormal
3behavior.

4(C) Career development theories and techniques, including
5career development decisionmaking models and interrelationships
6among and between work, family, and other life roles and factors,
7including the role of multicultural issues in career development.

8(D) Group counseling theories and techniques, including
9principles of group dynamics, group process components,
10developmental stage theories, therapeutic factors of group work,
11group leadership styles and approaches, pertinent research and
12literature, group counseling methods, and evaluation of
13effectiveness.

14(E) Assessment, appraisal, and testing of individuals, including
15basic concepts of standardized and nonstandardized testing and
16other assessment techniques, norm-referenced and
17criterion-referenced assessment, statistical concepts, social and
18cultural factors related to assessment and evaluation of individuals
19and groups, and ethical strategies for selecting, administering, and
20interpreting assessment instruments and techniques in counseling.

21(F) Multicultural counseling theories and techniques, including
22counselors’ roles in developing cultural self-awareness, identity
23development, promoting cultural social justice, individual and
24community strategies for working with and advocating for diverse
25 populations, and counselors’ roles in eliminating biases and
26prejudices, and processes of intentional and unintentional
27oppression and discrimination.

28(G) Principles of the diagnostic process, including differential
29diagnosis, and the use of current diagnostic tools, such as the
30current edition of the Diagnostic and Statistical Manual, the impact
31of co-occurring substance use disorders or medical psychological
32disorders, established diagnostic criteria for mental or emotional
33disorders, and the treatment modalities and placement criteria
34within the continuum of care.

35(H) Research and evaluation, including studies that provide an
36understanding of research methods, statistical analysis, the use of
37research to inform evidence-based practice, the importance of
38research in advancing the profession of counseling, and statistical
39methods used in conducting research, needs assessment, and
40 program evaluation.

P6    1(I) Professional orientation, ethics, and law in counseling,
2including professional ethical standards and legal considerations,
3licensing law and process, regulatory laws that delineate the
4profession’s scope of practice, counselor-client privilege,
5confidentiality, the client dangerous to self or others, treatment of
6minors with or without parental consent, relationship between
7practitioner’s sense of self and human values, functions and
8relationships with other human service providers, strategies for
9collaboration, and advocacy processes needed to address
10institutional and social barriers that impede access, equity, and
11success for clients.

12(2) In addition to the course requirements described in paragraph
13(1), a minimum of 12 semester units or 18 quarter units of advanced
14coursework to develop knowledge of specific treatment issues,
15special populations, application of counseling constructs,
16assessment and treatment planning, clinical interventions,
17therapeutic relationships, psychopathology, or other clinical topics.

18(3) Not less than six semester units or nine quarter units of
19supervised practicum or field study experience, or the equivalent,
20in a clinical setting that provides a range of professional clinical
21counseling experience, including the following:

22(A) Applied psychotherapeutic techniques.

23(B) Assessment.

24(C) Diagnosis.

25(D) Prognosis.

26(E) Treatment.

27(F) Issues of development, adjustment, and maladjustment.

28(G) Health and wellness promotion.

29(H) Other recognized counseling interventions.

30(I) A minimum of 150 hours of face-to-face supervised clinical
31experience counseling individuals, families, or groups.

32(d) (1) An applicant whose degree is deficient in no more than
33two of the required areas of study listed in subparagraphs (A) to
34(I), inclusive, of paragraph (1) of subdivision (c) may satisfy those
35deficiencies by successfully completing post-master’s or
36postdoctoral degree coursework at an accredited or approved
37institution, as defined in Section 4999.12.

38(2) Coursework taken to meet deficiencies in the required areas
39of study listed in subparagraphs (A) to (I), inclusive, of paragraph
P7    1(1) of subdivision (c) shall be the equivalent of three semester units
2or four and one-half quarter units of study.

3(3) The board shall make the final determination as to whether
4a degree meets all requirements, including, but not limited to,
5course requirements, regardless of accreditation.

6(e) In addition to the degree described in this section, or as part
7of that degree, an applicant shall complete the following
8coursework or training prior to registration as an intern:

9(1) A minimum of 15 contact hours of instruction in alcoholism
10and other chemical substance abuse dependency, as specified by
11regulation.

12(2) A minimum of 10 contact hours of training or coursework
13in human sexuality as specified in Section 25, and any regulations
14promulgated thereunder.

15(3) A two semester unit or three quarter unit survey course in
16psychopharmacology.

17(4) A minimum of 15 contact hours of instruction in spousal or
18partner abuse assessment, detection, and intervention strategies,
19including knowledge of community resources, cultural factors,
20and same gender abuse dynamics.

21(5) A minimum of seven contact hours of training or coursework
22in child abuse assessment and reporting as specified in Section 28
23and any regulations adopted thereunder.

24(6) A minimum of 18 contact hours of instruction in California
25law and professional ethics for professional clinical counselors
26that includes, but is not limited to, instruction in advertising, scope
27of practice, scope of competence, treatment of minors,
28confidentiality, dangerous clients, psychotherapist-client privilege,
29recordkeeping, client access to records, dual relationships, child
30abuse, elder and dependent adult abuse, online therapy, insurance
31reimbursement, civil liability, disciplinary actions and
32unprofessional conduct, ethics complaints and ethical standards,
33termination of therapy, standards of care, relevant family law,
34therapist disclosures to clients, and state and federal laws related
35to confidentiality of patient health information. When coursework
36in a master’s or doctoral degree program is acquired to satisfy this
37requirement, it shall be considered as part of the 48 semester unit
38or 72 quarter unit requirement in subdivision (c).

39(7) A minimum of 10 contact hours of instruction in aging and
40long-term care, which may include, but is not limited to, the
P8    1biological, social, and psychological aspects of aging. On and after
2January 1, 2012, this coursework shall include instruction on the
3assessment and reporting of, as well as treatment related to, elder
4and dependent adult abuse and neglect.

5(8) A minimum of 15 contact hours of instruction in crisis or
6trauma counseling, including multidisciplinary responses to crises,
7emergencies, or disasters, and brief, intermediate, and long-term
8approaches.

9(f) This section shall remain in effect only until January 1, 2019,
10and as of that date is repealed, unless a later enacted statute that
11is enacted before January 1, 2019, deletes or extends that date.

12

SEC. 4.  

Section 5096.10 of the Business and Professions Code,
13as amended by Section 32 of Chapter 411 of the Statutes of 2012,
14is amended to read:

15

5096.10.  

(a) The provisions of this article shall only be
16operative if there is an appropriation from the Accountancy Fund
17in the annual Budget Act to fund the activities in the article and
18sufficient hiring authority is granted pursuant to a budget change
19proposal to the board to provide staffing to implement this article.

20(b) This section shall become inoperative on July 1, 2013, and,
21as of January 1, 2014, is repealed, unless a later enacted statute,
22that becomes operative on or before January 1, 2014, deletes or
23extends the dates on which it becomes inoperative and is repealed.

24

SEC. 5.  

Section 21609.1 of the Business and Professions Code
25 is amended to read:

26

21609.1.  

(a) No junk dealer or recycler shall possess any
27reasonably recognizable, disassembled, or inoperative fire hydrant
28or fire department connection, including, but not limited to,
29reasonably recognizable brass fittings and parts, or any manhole
30cover or lid or reasonably recognizable part of a manhole cover
31or lid, or any backflow device or connection to that device or
32reasonably recognizable part of that device, that was owned or
33previously owned by an agency, in the absence of a written
34certification on the letterhead of the agency owning or previously
35owning the material described in the certification that the agency
36has either sold the material described or is offering the material
37for sale, salvage, or recycling, and that the person possessing the
38certification and identified in the certification is authorized to
39negotiate the sale of that material.

P9    1(b) A junk dealer or recycler who unknowingly takes possession
2of one or more of the items listed in subdivision (a) as part of a
3load of otherwise nonprohibited materials without a written
4certification has a duty to notify the appropriate law enforcement
5agency by the end of the next business day upon discovery of the
6prohibited material. Written certification shall relieve the junk
7dealer or recycler from any civil or criminal penalty for possession
8of the prohibited material. The prohibited material shall be set
9aside and not sold pending a determination made by a law
10enforcement agency pursuant to Section 21609.

11(c) For purposes of this section, the following definitions apply:

12(1) “Agency” means a public agency, city, county, city and
13county, special district, or private utility regulated by the Public
14Utilities Commission.

15(2) “Appropriate law enforcement agency” means either of the
16following:

17(A) The police chief of the city, or his or her designee, if the
18item or items listed in subdivision (a) are located within the
19territorial limits of an incorporated city.

20(B) The sheriff of the county or his or her designee if the item
21or items listed are located within the county but outside the
22territorial limits of an incorporated city.

23(3) “Written certification” means a certification in written form
24by the junk dealer or recycler to a law enforcement agency,
25including electronic mail, facsimile, or a letter delivered in person
26or by certified mail.

27

SEC. 6.  

Section 23958.4 of the Business and Professions Code
28 is amended to read:

29

23958.4.  

(a) For purposes of Section 23958, “undue
30concentration” means the case in which the applicant premises for
31an original or premises-to-premises transfer of any retail license
32are located in an area where any of the following conditions exist:

33(1) The applicant premises are located in a crime reporting
34district that has a 20 percent greater number of reported crimes,
35as defined in subdivision (c), than the average number of reported
36crimes as determined from all crime reporting districts within the
37jurisdiction of the local law enforcement agency.

38(2) As to on-sale retail license applications, the ratio of on-sale
39retail licenses to population in the census tract or census division
40in which the applicant premises are located exceeds the ratio of
P10   1on-sale retail licenses to population in the county in which the
2applicant premises are located.

3(3) As to off-sale retail license applications, the ratio of off-sale
4retail licenses to population in the census tract or census division
5in which the applicant premises are located exceeds the ratio of
6off-sale retail licenses to population in the county in which the
7applicant premises are located.

8(b) Notwithstanding Section 23958, the department may issue
9a license as follows:

10(1) With respect to a nonretail license, a retail on-sale bona fide
11eating place license, a retail license issued for a hotel, motel, or
12other lodging establishment, as defined in subdivision (b) of
13Section 25503.16, a retail license issued in conjunction with a beer
14manufacturer’s license, or a winegrower’s license, if the applicant
15shows that public convenience or necessity would be served by
16the issuance.

17(2) With respect to any other license, if the local governing body
18of the area in which the applicant premises are located, or its
19designated subordinate officer or body, determines within 90 days
20of notification of a completed application that public convenience
21or necessity would be served by the issuance. The 90-day period
22shall commence upon receipt by the local governing body of (A)
23notification by the department of an application for licensure, or
24(B) a completed application according to local requirements, if
25any, whichever is later.

26If the local governing body, or its designated subordinate officer
27or body, does not make a determination within the 90-day period,
28then the department may issue a license if the applicant shows the
29department that public convenience or necessity would be served
30by the issuance. In making its determination, the department shall
31not attribute any weight to the failure of the local governing body,
32or its designated subordinate officer or body, to make a
33determination regarding public convenience or necessity within
34the 90-day period.

35(c) For purposes of this section, the following definitions shall
36apply:

37(1) “Reporting districts” means geographical areas within the
38boundaries of a single governmental entity (city or the
39unincorporated area of a county) that are identified by the local
P11   1law enforcement agency in the compilation and maintenance of
2statistical information on reported crimes and arrests.

3(2) “Reported crimes” means the most recent yearly compilation
4by the local law enforcement agency of reported offenses of
5criminal homicide, forcible rape, robbery, aggravated assault,
6burglary, larceny, theft, and motor vehicle theft, combined with
7all arrests for other crimes, both felonies and misdemeanors, except
8traffic citations.

9(3) “Population within the census tract or census division” means
10the population as determined by the most recent United States
11decennial or special census. The population determination shall
12not operate to prevent an applicant from establishing that an
13increase of resident population has occurred within the census tract
14or census division.

15(4) “Population in the county” shall be determined by the annual
16population estimate for California counties published by the
17Population Research Unit of the Department of Finance.

18(5) “Retail licenses” shall include the following:

19(A) Off-sale retail licenses: Type 20 (off-sale beer and wine)
20and Type 21 (off-sale general).

21(B) On-sale retail licenses: All retail on-sale licenses, except
22Type 43 (on-sale beer and wine for train), Type 44 (on-sale beer
23and wine for fishing party boat), Type 45 (on-sale beer and wine
24for boat), Type 46 (on-sale beer and wine for airplane), Type 53
25(on-sale general for train and sleeping car), Type 54 (on-sale
26general for boat), Type 55 (on-sale general for airplane), Type 56
27(on-sale general for vessels of more than 1,000 tons burden), and
28Type 62 (on-sale general bona fide public eating place intermittent
29dockside license for vessels of more than 15,000 tons
30displacement).

31(6) A “premises-to-premises transfer” refers to each license
32being separate and distinct, and transferable upon approval of the
33department.

34(d) For purposes of this section, the number of retail licenses
35in the county shall be established by the department on an annual
36basis.

37(e) The enactment of this section shall not affect any existing
38rights of any holder of a retail license issued before April 29, 1992,
39whose premises were destroyed or rendered unusable as a result
P12   1of the civil disturbances occurring in Los Angeles from April 29
2to May 2, 1992, to reopen and operate those licensed premises.

3(f) This section shall not apply if the premises have been
4licensed and operated with the same type license within 90 days
5of the application.

6

SEC. 7.  

Section 25502.2 of the Business and Professions Code
7 is amended to read:

8

25502.2.  

(a) A person employed or engaged by an authorized
9licensee may appear at a promotional event at the premises of an
10off-sale retail licensee for the purposes of providing autographs
11to consumers at the promotional event only under the following
12conditions:

13(1) A purchase from the off-sale retail licensee is not required.

14(2) A fee is not charged to attend the promotional event.

15(3) Autographing may only be provided on consumer advertising
16specialities given by the authorized licensee to a consumer or on
17any item provided by the consumer.

18(4) The promotional event does not exceed four hours in
19duration.

20(5) There are no more than two promotional events per calendar
21year involving the same authorized licensee at a single premises
22of an off-sale retail licensee.

23(6) The off-sale retail licensee may advertise the promotional
24event to be held at its licensed premises.

25(7) An authorized licensee may advertise in advance of the
26promotional event only in publications of the authorized licensee,
27subject to the following conditions:

28(A) The advertising only lists the name and address of the
29off-sale retail licensee, the name of the alcoholic beverage product
30being featured at the promotional event, and the time, date, and
31location of the off-sale retail licensee location where the
32promotional event is being held.

33(B) The listing of the off-sale retail licensee’s name and address
34is the only reference to the off-sale retail licensee in the
35advertisement and is relatively inconspicuous in relation to the
36advertisement as a whole, and the advertisement does not contain
37any pictures or illustrations of the off-sale retail licensee’s premises
38or laudatory references to the off-sale retail licensee.

39(8) A wholesaler does not directly or indirectly underwrite,
40share in, or contribute to any costs related to the promotional event,
P13   1except that a beer and wine wholesaler that holds at least six
2distilled spirits wholesaler licenses may directly or indirectly
3underwrite, share in, or contribute to any costs related to a
4promotional event for which the wholesaler employs or engages
5the person providing autographs to consumers at the promotional
6event.

7(9) The authorized licensee notifies the department in writing
8of the promotional event at least 30 days in advance of the
9promotional event.

10(10) The authorized licensee maintains records necessary to
11establish its compliance with this section.

12(b) For purposes of this section, “authorized licensee” means a
13manufacturer, winegrower, manufacturer’s agent, California
14winegrower’s agent, rectifier, importer, brandy manufacturer,
15brandy importer, or wholesaler.

16(c) This section shall remain in effect only until January 1, 2016,
17and as of that date is repealed, unless a later enacted statute, that
18is enacted before January 1, 2016, deletes or extends that date.

19

SEC. 8.  

Section 25600.2 of the Business and Professions Code
20 is amended to read:

21

25600.2.  

(a) An authorized licensee may conduct or sponsor
22consumer sweepstakes, subject to the following conditions:

23(1) (A) No entry fee may be charged to participate in a
24sweepstakes authorized by this subdivision. Entry or extra chances
25in a sweepstakes shall not be made available via the purchase of
26an alcoholic beverage.

27(B) Entry into or participation in a sweepstakes shall be limited
28to persons 21 years of age or older.

29(C) No sweepstakes shall involve consumption of alcoholic
30beverages by a participant.

31(D) Subject to subparagraph (B), any sweepstakes offered in
32California shall be open to all residents of California.

33(E) A sweepstakes may not be conducted for the benefit of any
34permanent retail license.

35(2) (A) Closures, caps, cap liners, corks, labels, cartons, cases,
36packaging, or other similar material shall not be used as an entry
37to a sweepstakes or as a means of determining the amount or size
38of the prize or the winner in a sweepstakes, except as provided in
39subparagraphs (D) and (F).

P14   1(B) The authorized licensee shall provide an alternative means
2of entry that does not require a visit to a licensed premises.

3(C) Except as provided in subparagraph (D), removable entry
4forms shall not be used on alcoholic beverage labels, containers,
5packaging, cases, or cartons.

6(D) Removable entry forms that are neck hangers shall be used
7only on bottles of wine or distilled spirits, and shall not require
8purchase of the product. Removable neck hangers shall be used
9only if other entry forms are available at the point of sale or if an
10alternative means of entry is also available.

11(E) Entry forms may be provided through electronic or other
12media, including point of sale.

13(F) Codes that may be scanned or electronically entered by a
14consumer where the authorized licensee has permanently affixed
15the codes as part of the original alcoholic beverage label, container,
16packaging, case, or carton and where the codes are not removable
17and not required to be removed are permitted as a form of entry.

18(G) All permitted means of entry, including the use of electronic
19or scanner codes, shall clearly indicate that no purchase is required
20to enter.

21(H) All sweepstakes entries shall provide the entrant with an
22equal odds of winning.

23(3) A sweepstakes shall not provide for the instant or immediate
24awarding of a prize or prizes. Instant or immediate notification to
25the consumer that he or she is a winner is permissible.

26(4) Except for providing a means of entry, a sweepstakes
27authorized by this section shall not be conducted at the premises
28of a retail licensee or the premises of a winegrower or beer
29manufacturer operating under a duplicate license for a branch
30office.

31(5) Alcoholic beverages or anything redeemable for alcoholic
32beverages shall not be awarded as a sweepstakes prize. This
33 paragraph shall not prohibit a sweepstakes in which the prize is
34cash or cash equivalent or the awarding of cash or cash equivalent.

35(6) A retail licensee shall not serve as the agent of an authorized
36licensee by collecting or forwarding entries or awarding prizes to,
37or redeeming prizes for, a sweepstakes winner. The matching of
38entries with numbers or pictures on the point-of-sale materials at
39retail licensed premises is permitted only if entrants are also offered
40the opportunity to use an alternative means to determine
P15   1prize-winning status. An authorized licensee may furnish and
2maintain a deposit box on a retail licensed premises for the
3collection and forwarding of sweepstakes entry forms.

4(7) A licensee that is not an authorized licensee shall not directly
5or indirectly underwrite, share in, or contribute to, the costs of a
6sweepstakes authorized by this section or serve as the agent of an
7authorized licensee to collect or forward entries or to furnish any
8prize to a sweepstakes winner.

9(8) (A) Advertising of a sweepstakes shall comply with the
10signage and advertising restrictions contained in this chapter,
11Chapter 15 (commencing with Section 25500), and any regulations
12issued by the department.

13(B) Advertising or promotion of a sweepstakes shall not identify
14or refer to a retail licensee.

15(C) A retail licensee shall only advertise or promote a
16sweepstakes authorized by this section in the manner specified in
17subparagraph (A).

18(D) Advertising or promotion of a sweepstakes shall only be
19conducted on the premises of a retail licensee when such
20advertisement or promotion involves a minimum of three
21 unaffiliated retail licensees. For purposes of this subparagraph,
22“unaffiliated retail licensees” shall not include a retail licensee
23owned or controlled in whole or in part by an authorized licensee
24or any officer, director, or agent of that licensee.

25(E) Placement of signs or other advertising of a sweepstakes in
26a licensed retail premises shall not be conditioned upon the
27following:

28(i) The placement of a product within the licensed premises or
29the restriction, in any way, of the purchase of a product by a
30licensee, the removal of a product from the sales area of a licensed
31premises, or the resetting or repositioning of a product within the
32licensed premises.

33(ii) The purchase or sale of a product produced, imported,
34distributed, represented, or promoted by an authorized licensee or
35its agent.

36(F) An agreement, whether written or oral, entered into, by, and
37between a retail licensee and an authorized licensee that precludes
38the advertisement or promotion of a sweepstakes on the premises
39of the retail licensee by another authorized licensee or its agent is
40prohibited.

P16   1(9) Sweepstakes prizes shall not be awarded to an authorized
2licensee, retail licensee, or wholesale licensee or agent, officer,
3employee, or family member of an authorized licensee, retail
4licensee, or wholesale licensee. For the purposes of this paragraph,
5“family member” means a spouse, parent, sibling, child, son-in-law,
6daughter-in-law, and lineal descendants, including those by
7adoption. An authorized licensee shall maintain all records
8pertaining to a sweepstakes for three years following the
9completion of a sweepstakes.

10(b) For purposes of this section:

11(1) (A) “Authorized licensee” means a winegrower, beer and
12wine importer general, beer manufacturer, out-of-state beer
13manufacturer certificate holder, distilled spirits manufacturer,
14distilled spirits manufacturer’s agent, distilled spirits importer
15general, distilled spirits general rectifier, rectifier, out-of-state
16distilled spirits shipper’s certificate holder, brandy manufacturer,
17and brandy importer. An authorized licensee may conduct, sponsor,
18or participate in a sweepstakes pursuant to this section regardless
19of whether the licensee holds an additional license not included in
20this paragraph.

21(B) An “authorized licensee” shall not include a beer and wine
22wholesaler, a beer and wine importer general, or distilled spirits
23importer general that only holds a wholesaler’s or retailer’s license
24as an additional license.

25(2) “Sweepstakes” means a procedure, activity, or event for the
26distribution of anything of value by lot, chance, or random selection
27where the odds for winning a prize are equal for each entry.

28(c) Nothing in this section authorizes conducting sweepstakes
29where consumers are entitled to an allotment or accumulation of
30points based on purchases made over a period of time that can be
31redeemed for prizes, things of value, or additional sweepstakes
32entries.

33(d) A prize awarded for a sweepstakes conducted pursuant to
34this section shall not be subject to the monetary limitation imposed
35by Section 25600 or a regulation of the department.

36(e) An authorized licensee that violates this section, in addition
37to any other penalty imposed by this division, may be prohibited
38by the department from offering a sweepstakes to California
39residents for a period of 12 months.

40

SEC. 9.  

Section 55.56 of the Civil Code is amended to read:

P17   1

55.56.  

(a) Statutory damages under either subdivision (a) of
2Section 52 or subdivision (a) of Section 54.3 may be recovered in
3a construction-related accessibility claim against a place of public
4accommodation only if a violation or violations of one or more
5construction-related accessibility standards denied the plaintiff
6full and equal access to the place of public accommodation on a
7particular occasion.

8(b) A plaintiff is denied full and equal access only if the plaintiff
9personally encountered the violation on a particular occasion, or
10the plaintiff was deterred from accessing a place of public
11accommodation on a particular occasion.

12(c) A violation personally encountered by a plaintiff may be
13sufficient to cause a denial of full and equal access if the plaintiff
14experienced difficulty, discomfort, or embarrassment because of
15the violation.

16(d) A plaintiff demonstrates that he or she was deterred from
17accessing a place of public accommodation on a particular occasion
18only if both of the following apply:

19(1) The plaintiff had actual knowledge of a violation or
20violations that prevented or reasonably dissuaded the plaintiff from
21accessing a place of public accommodation that the plaintiff
22intended to use on a particular occasion.

23(2) The violation or violations would have actually denied the
24plaintiff full and equal access if the plaintiff had accessed the place
25of public accommodation on that particular occasion.

26(e) Statutory damages may be assessed pursuant to subdivision
27(a) based on each particular occasion that the plaintiff was denied
28full and equal access, and not upon the number of violations of
29construction-related accessibility standards identified at the place
30of public accommodation where the denial of full and equal access
31occurred. If the place of public accommodation consists of distinct
32facilities that offer distinct services, statutory damages may be
33assessed based on each denial of full and equal access to the distinct
34facility, and not upon the number of violations of
35construction-related accessibility standards identified at the place
36of public accommodation where the denial of full and equal access
37occurred.

38(f) (1) Notwithstanding any other law, a defendant’s liability
39for statutory damages in a construction-related accessibility claim
40against a place of public accommodation is reduced to a minimum
P18   1of one thousand dollars ($1,000) for each offense if the defendant
2demonstrates that it has corrected all construction-related violations
3that are the basis of a claim within 60 days of being served with
4the complaint, and the defendant demonstrates any of the following:

5(A) The structure or area of the alleged violation was determined
6to be “CASp-inspected” or “meets applicable standards” and, to
7the best of the defendant’s knowledge, there were no modifications
8or alterations that impacted compliance with construction-related
9accessibility standards with respect to the plaintiff’s claim that
10were completed or commenced between the date of that
11determination and the particular occasion on which the plaintiff
12was allegedly denied full and equal access.

13(B) The structure or area of the alleged violation was the subject
14of an inspection report indicating “CASp determination pending”
15or “Inspected by a CASp,” and the defendant has either
16implemented reasonable measures to correct the alleged violation
17before the particular occasion on which the plaintiff was allegedly
18denied full and equal access, or the defendant was in the process
19of correcting the alleged violation within a reasonable time and
20manner before the particular occasion on which the plaintiff was
21allegedly denied full and equal access.

22(C) For a claim alleging a construction-related accessibility
23violation filed before January 1, 2018, the structure or area of the
24alleged violation was a new construction or an improvement that
25was approved by, and passed inspection by, the local building
26department permit and inspection process on or after January 1,
272008, and before January 1, 2016, and, to the best of the
28defendant’s knowledge, there were no modifications or alterations
29that impacted compliance with respect to the plaintiff’s claim that
30were completed or commenced between the completion date of
31the new construction or improvement and the particular occasion
32on which the plaintiff was allegedly denied full and equal access.

33(D) The structure or area of the alleged violation was new
34construction or an improvement that was approved by, and passed
35inspection by, a local building department official who is a certified
36access specialist, and, to the best of the defendant’s knowledge,
37there were no modifications or alterations that affected compliance
38with respect to the plaintiff’s claim that were completed or
39commenced between the completion date of the new construction
P19   1or improvement and the particular occasion on which the plaintiff
2was allegedly denied full and equal access.

3(2) Notwithstanding any other law, a defendant’s liability for
4statutory damages in a construction-related accessibility claim
5against a place of public accommodation is reduced to a minimum
6of two thousand dollars ($2,000) for each offense if the defendant
7demonstrates both of the following:

8(A) The defendant has corrected all construction-related
9violations that are the basis of a claim within 30 days of being
10served with the complaint.

11(B) The defendant is a small business that has employed 25 or
12fewer employees on average over the past three years, or for the
13years it has been in existence if less than three years, as evidenced
14by wage report forms filed with the Economic Development
15Department, and has average annual gross receipts of less than
16three million five hundred thousand dollars ($3,500,000) over the
17previous three years, or for the years it has been in existence if
18less than three years, as evidenced by federal or state income tax
19returns. The average annual gross receipts dollar amount shall be
20adjusted biannually by the Department of General Services for
21changes in the California Consumer Price Index for All Urban
22Consumers, as compiled by the Department of Industrial Relations.
23The Department of General Services shall post that adjusted
24amount on its Internet Web site.

25(3) This subdivision shall not be applicable to intentional
26violations.

27(4) Nothing in this subdivision affects the awarding of actual
28damages, or affects the awarding of treble actual damages.

29(5) This subdivision shall apply only to claims filed on or after
30the effective date of Senate Bill 1186 of the 2011-12 Regular
31Session of the Legislature. Nothing in this subdivision is intended
32to affect a complaint filed before that date.

33(g) This section does not alter the applicable law for the
34awarding of injunctive or other equitable relief for a violation or
35violations of one or more construction-related accessibility
36standards, nor alter any legal obligation of a party to mitigate
37damages.

38(h) In assessing liability under subdivision (d), in an action
39alleging multiple claims for the same construction-related
40accessibility violation on different particular occasions, the court
P20   1shall consider the reasonableness of the plaintiff’s conduct in light
2of the plaintiff’s obligation, if any, to mitigate damages.

3

SEC. 10.  

Section 56.16 of the Civil Code is amended to read:

4

56.16.  

For disclosures not addressed by Section 56.1007, unless
5there is a specific written request by the patient to the contrary,
6nothing in this part shall be construed to prevent a general acute
7care hospital, as defined in subdivision (a) of Section 1250 of the
8Health and Safety Code, upon an inquiry concerning a specific
9patient, from releasing at its discretion any of the following
10information: the patient’s name, address, age, and sex; a general
11description of the reason for treatment (whether an injury, a burn,
12poisoning, or some unrelated condition); the general nature of the
13injury, burn, poisoning, or other condition; the general condition
14of the patient; and any information that is not medical information
15as defined in subdivision (g) of Section 56.05.

16

SEC. 11.  

Section 1195 of the Civil Code is amended to read:

17

1195.  

(a) Proof of the execution of an instrument, when not
18acknowledged, may be made by any of the following:

19(1) By the party executing it, or either of them.

20(2) By a subscribing witness.

21(3) By other witnesses, in cases mentioned in Section 1198.

22(b) (1)  Proof of the execution of a power of attorney, grant
23deed, mortgage, deed of trust, quitclaim deed, security agreement,
24or any instrument affecting real property is not permitted pursuant
25to Section 27287 of the Government Code, though proof of the
26execution of a trustee’s deed or deed of reconveyance is permitted.

27(2) Proof of the execution for any instrument requiring a notary
28public to obtain a thumbprint from the party signing the document
29in the notary public’s journal is not permitted.

30(c) Any certificate for proof of execution taken within this state
31may be in the following form, although the use of other,
32substantially similar forms is not precluded:


33

 

State of California

ss.

   

County of    

   

P20  369P20  12

 

37On ____ (date), before me, the undersigned, a notary public for the state,
38personally appeared ____ (name of subscribing witness), proved to me to be
39the person whose name is subscribed to the within instrument, as a witness
40thereto, on the oath of ____ (name of credible witness), a credible witness who
P21   1is known to me and provided a satisfactory identifying document. ____ (name
2of subscribing witness), being by me duly sworn, said that he/she was present
3and saw/heard ____ (name[s] of principal[s]), the same person(s) described in
4and whose name(s) is/are subscribed to the within or attached instrument in
5his/her/their authorized capacity(ies) as (a) party(ies) thereto, execute or
6acknowledge executing the same, and that said affiant subscribed his/her name
7to the within or attached instrument as a witness at the request of ____ (name[s]
8 of principal[s]).

 

 WITNESS my hand and official seal.

 

Signature    (Notary public seal)

 
P20  12

 

13

SEC. 12.  

Section 1950.5 of the Civil Code is amended to read:

14

1950.5.  

(a) This section applies to security for a rental
15agreement for residential property that is used as the dwelling of
16the tenant.

17(b) As used in this section, “security” means any payment, fee,
18deposit, or charge, including, but not limited to, any payment, fee,
19deposit, or charge, except as provided in Section 1950.6, that is
20imposed at the beginning of the tenancy to be used to reimburse
21the landlord for costs associated with processing a new tenant or
22that is imposed as an advance payment of rent, used or to be used
23for any purpose, including, but not limited to, any of the following:

24(1) The compensation of a landlord for a tenant’s default in the
25payment of rent.

26(2) The repair of damages to the premises, exclusive of ordinary
27wear and tear, caused by the tenant or by a guest or licensee of the
28tenant.

29(3) The cleaning of the premises upon termination of the tenancy
30necessary to return the unit to the same level of cleanliness it was
31in at the inception of the tenancy. The amendments to this
32paragraph enacted by the act adding this sentence shall apply only
33to tenancies for which the tenant’s right to occupy begins after
34January 1, 2003.

35(4) To remedy future defaults by the tenant in any obligation
36under the rental agreement to restore, replace, or return personal
37property or appurtenances, exclusive of ordinary wear and tear, if
38the security deposit is authorized to be applied thereto by the rental
39agreement.

P22   1(c) A landlord may not demand or receive security, however
2denominated, in an amount or value in excess of an amount equal
3to two months’ rent, in the case of unfurnished residential property,
4and an amount equal to three months’ rent, in the case of furnished
5residential property, in addition to any rent for the first month paid
6on or before initial occupancy.

7This subdivision does not prohibit an advance payment of not
8less than six months’ rent if the term of the lease is six months or
9longer.

10This subdivision does not preclude a landlord and a tenant from
11entering into a mutual agreement for the landlord, at the request
12of the tenant and for a specified fee or charge, to make structural,
13decorative, furnishing, or other similar alterations, if the alterations
14are other than cleaning or repairing for which the landlord may
15charge the previous tenant as provided by subdivision (e).

16(d) Any security shall be held by the landlord for the tenant who
17is party to the lease or agreement. The claim of a tenant to the
18security shall be prior to the claim of any creditor of the landlord.

19(e) The landlord may claim of the security only those amounts
20as are reasonably necessary for the purposes specified in
21subdivision (b). The landlord may not assert a claim against the
22tenant or the security for damages to the premises or any defective
23conditions that preexisted the tenancy, for ordinary wear and tear
24or the effects thereof, whether the wear and tear preexisted the
25tenancy or occurred during the tenancy, or for the cumulative
26effects of ordinary wear and tear occurring during any one or more
27tenancies.

28(f) (1) Within a reasonable time after notification of either
29party’s intention to terminate the tenancy, or before the end of the
30lease term, the landlord shall notify the tenant in writing of his or
31her option to request an initial inspection and of his or her right to
32be present at the inspection. The requirements of this subdivision
33do not apply when the tenancy is terminated pursuant to subdivision
34(2), (3), or (4) of Section 1161 of the Code of Civil Procedure. At
35a reasonable time, but no earlier than two weeks before the
36termination or the end of lease date, the landlord, or an agent of
37the landlord, shall, upon the request of the tenant, make an initial
38inspection of the premises prior to any final inspection the landlord
39makes after the tenant has vacated the premises. The purpose of
40the initial inspection shall be to allow the tenant an opportunity to
P23   1remedy identified deficiencies, in a manner consistent with the
2rights and obligations of the parties under the rental agreement, in
3order to avoid deductions from the security. If a tenant chooses
4not to request an initial inspection, the duties of the landlord under
5this subdivision are discharged. If an inspection is requested, the
6parties shall attempt to schedule the inspection at a mutually
7acceptable date and time. The landlord shall give at least 48 hours’
8prior written notice of the date and time of the inspection if either
9a mutual time is agreed upon, or if a mutually agreed time cannot
10be scheduled but the tenant still wishes an inspection. The tenant
11and landlord may agree to forgo the 48-hour prior written notice
12by both signing a written waiver. The landlord shall proceed with
13the inspection whether the tenant is present or not, unless the tenant
14previously withdrew his or her request for the inspection. Written
15notice by the landlord shall contain, in substantially the same form,
16the following:


18“State law permits former tenants to reclaim abandoned personal
19property left at the former address of the tenant, subject to certain
20 conditions. You may or may not be able to reclaim property without
21incurring additional costs, depending on the cost of storing the
22property and the length of time before it is reclaimed. In general,
23these costs will be lower the sooner you contact your former
24landlord after being notified that property belonging to you was
25left behind after you moved out.”


27(2) Based on the inspection, the landlord shall give the tenant
28an itemized statement specifying repairs or cleanings that are
29proposed to be the basis of any deductions from the security the
30landlord intends to make pursuant to paragraphs (1) to (4),
31inclusive, of subdivision (b). This statement shall also include the
32texts of paragraphs (1) to (4), inclusive, of subdivision (b). The
33statement shall be given to the tenant, if the tenant is present for
34the inspection, or shall be left inside the premises.

35(3) The tenant shall have the opportunity during the period
36following the initial inspection until termination of the tenancy to
37remedy identified deficiencies, in a manner consistent with the
38rights and obligations of the parties under the rental agreement, in
39order to avoid deductions from the security.

P24   1(4) Nothing in this subdivision shall prevent a landlord from
2using the security for deductions itemized in the statement provided
3for in paragraph (2) that were not cured by the tenant so long as
4the deductions are for damages authorized by this section.

5(5) Nothing in this subdivision shall prevent a landlord from
6using the security for any purpose specified in paragraphs (1) to
7(4), inclusive, of subdivision (b) that occurs between completion
8of the initial inspection and termination of the tenancy or was not
9 identified during the initial inspection due to the presence of a
10tenant’s possessions.

11(g) (1) No later than 21 calendar days after the tenant has
12vacated the premises, but not earlier than the time that either the
13landlord or the tenant provides a notice to terminate the tenancy
14under Section 1946 or 1946.1, Section 1161 of the Code of Civil
15Procedure, or not earlier than 60 calendar days prior to the
16expiration of a fixed-term lease, the landlord shall furnish the
17tenant, by personal delivery or by first-class mail, postage prepaid,
18a copy of an itemized statement indicating the basis for, and the
19amount of, any security received and the disposition of the security,
20and shall return any remaining portion of the security to the tenant.
21After either the landlord or the tenant provides notice to terminate
22the tenancy, the landlord and tenant may mutually agree to have
23the landlord deposit any remaining portion of the security deposit
24electronically to a bank account or other financial institution
25designated by the tenant. After either the landlord or the tenant
26provides notice to terminate the tenancy, the landlord and the tenant
27may also agree to have the landlord provide a copy of the itemized
28statement along with the copies required by paragraph (2) to an
29email account provided by the tenant.

30(2) Along with the itemized statement, the landlord shall also
31include copies of documents showing charges incurred and
32deducted by the landlord to repair or clean the premises, as follows:

33(A) If the landlord or landlord’s employee did the work, the
34itemized statement shall reasonably describe the work performed.
35The itemized statement shall include the time spent and the
36reasonable hourly rate charged.

37(B) If the landlord or landlord’s employee did not do the work,
38the landlord shall provide the tenant a copy of the bill, invoice, or
39receipt supplied by the person or entity performing the work. The
40itemized statement shall provide the tenant with the name, address,
P25   1and telephone number of the person or entity, if the bill, invoice,
2or receipt does not include that information.

3(C) If a deduction is made for materials or supplies, the landlord
4shall provide a copy of the bill, invoice, or receipt. If a particular
5material or supply item is purchased by the landlord on an ongoing
6basis, the landlord may document the cost of the item by providing
7a copy of a bill, invoice, receipt, vendor price list, or other vendor
8document that reasonably documents the cost of the item used in
9the repair or cleaning of the unit.

10(3) If a repair to be done by the landlord or the landlord’s
11employee cannot reasonably be completed within 21 calendar days
12after the tenant has vacated the premises, or if the documents from
13a person or entity providing services, materials, or supplies are not
14in the landlord’s possession within 21 calendar days after the tenant
15has vacated the premises, the landlord may deduct the amount of
16a good faith estimate of the charges that will be incurred and
17provide that estimate with the itemized statement. If the reason for
18the estimate is because the documents from a person or entity
19providing services, materials, or supplies are not in the landlord’s
20possession, the itemized statement shall include the name, address,
21and telephone number of the person or entity. Within 14 calendar
22days of completing the repair or receiving the documentation, the
23landlord shall complete the requirements in paragraphs (1) and (2)
24in the manner specified.

25(4) The landlord need not comply with paragraph (2) or (3) if
26either of the following applies:

27(A) The deductions for repairs and cleaning together do not
28exceed one hundred twenty-five dollars ($125).

29(B) The tenant waived the rights specified in paragraphs (2) and
30(3). The waiver shall only be effective if it is signed by the tenant
31at the same time or after a notice to terminate a tenancy under
32Section 1946 or 1946.1 has been given, a notice under Section
331161 of the Code of Civil Procedure has been given, or no earlier
34than 60 calendar days prior to the expiration of a fixed-term lease.
35The waiver shall substantially include the text of paragraph (2).

36(5) Notwithstanding paragraph (4), the landlord shall comply
37with paragraphs (2) and (3) when a tenant makes a request for
38documentation within 14 calendar days after receiving the itemized
39statement specified in paragraph (1). The landlord shall comply
40within 14 calendar days after receiving the request from the tenant.

P26   1(6) Any mailings to the tenant pursuant to this subdivision shall
2be sent to the address provided by the tenant. If the tenant does
3not provide an address, mailings pursuant to this subdivision shall
4be sent to the unit that has been vacated.

5(h) Upon termination of the landlord’s interest in the premises,
6whether by sale, assignment, death, appointment of receiver, or
7otherwise, the landlord or the landlord’s agent shall, within a
8reasonable time, do one of the following acts, either of which shall
9relieve the landlord of further liability with respect to the security
10held:

11(1) Transfer the portion of the security remaining after any
12lawful deductions made under subdivision (e) to the landlord’s
13successor in interest. The landlord shall thereafter notify the tenant
14by personal delivery or by first-class mail, postage prepaid, of the
15transfer, of any claims made against the security, of the amount
16of the security deposited, and of the names of the successors in
17interest, their addresses, and their telephone numbers. If the notice
18to the tenant is made by personal delivery, the tenant shall
19acknowledge receipt of the notice and sign his or her name on the
20landlord’s copy of the notice.

21(2) Return the portion of the security remaining after any lawful
22deductions made under subdivision (e) to the tenant, together with
23an accounting as provided in subdivision (g).

24(i) Prior to the voluntary transfer of a landlord’s interest in the
25premises, the landlord shall deliver to the landlord’s successor in
26interest a written statement indicating the following:

27(1) The security remaining after any lawful deductions are made.

28(2) An itemization of any lawful deductions from any security
29received.

30(3) His or her election under paragraph (1) or (2) of subdivision
31(h).

32This subdivision does not affect the validity of title to the real
33property transferred in violation of this subdivision.

34(j) (1) In the event of noncompliance with subdivision (h), the
35landlord’s successors in interest shall be jointly and severally liable
36with the landlord for repayment of the security, or that portion
37thereof to which the tenant is entitled, when and as provided in
38subdivisions (e) and (g). A successor in interest of a landlord may
39not require the tenant to post any security to replace that amount
40not transferred to the tenant or successors in interest as provided
P27   1in subdivision (h), unless and until the successor in interest first
2makes restitution of the initial security as provided in paragraph
3(2) of subdivision (h) or provides the tenant with an accounting as
4provided in subdivision (g).

5(2) This subdivision does not preclude a successor in interest
6from recovering from the tenant compensatory damages that are
7in excess of the security received from the landlord previously
8paid by the tenant to the landlord.

9(3) Notwithstanding this subdivision, if, upon inquiry and
10reasonable investigation, a landlord’s successor in interest has a
11good faith belief that the lawfully remaining security deposit is
12transferred to him or her or returned to the tenant pursuant to
13subdivision (h), he or she is not liable for damages as provided in
14subdivision (l), or any security not transferred pursuant to
15subdivision (h).

16(k) Upon receipt of any portion of the security under paragraph
17(1) of subdivision (h), the landlord’s successors in interest shall
18have all of the rights and obligations of a landlord holding the
19security with respect to the security.

20(l) The bad faith claim or retention by a landlord or the
21landlord’s successors in interest of the security or any portion
22thereof in violation of this section, or the bad faith demand of
23replacement security in violation of subdivision (j), may subject
24the landlord or the landlord’s successors in interest to statutory
25damages of up to twice the amount of the security, in addition to
26actual damages. The court may award damages for bad faith
27whenever the facts warrant that award, regardless of whether the
28injured party has specifically requested relief. In an action under
29this section, the landlord or the landlord’s successors in interest
30shall have the burden of proof as to the reasonableness of the
31amounts claimed or the authority pursuant to this section to demand
32additional security deposits.

33(m) No lease or rental agreement may contain a provision
34characterizing any security as “nonrefundable.”

35(n) An action under this section may be maintained in small
36claims court if the damages claimed, whether actual, statutory, or
37both, are within the jurisdictional amount allowed by Section
38116.220 or 116.221 of the Code of Civil Procedure.

39(o) Proof of the existence of and the amount of a security deposit
40may be established by any credible evidence, including, but not
P28   1limited to, a canceled check, a receipt, a lease indicating the
2requirement of a deposit as well as the amount, prior consistent
3statements or actions of the landlord or tenant, or a statement under
4penalty of perjury that satisfies the credibility requirements set
5forth in Section 780 of the Evidence Code.

6(p) The amendments to this section made during the 1985
7portion of the 1985-86 Regular Session of the Legislature that are
8set forth in subdivision (e) are declaratory of existing law.

9(q) The amendments to this section made during the 2003
10portion of the 2003-04 Regular Session of the Legislature that are
11set forth in paragraph (1) of subdivision (f) are declaratory of
12existing law.

13

SEC. 13.  

Section 2877 of the Civil Code is amended to read:

14

2877.  

Contracts of mortgage, pledge, bottomry, or respondentia
15are subject to all of the provisions of this chapter.

16

SEC. 14.  

Section 2923.55 of the Civil Code, as added by
17Section 6 of Chapter 86 of the Statutes of 2012, is amended to
18 read:

19

2923.55.  

(a) A mortgage servicer, mortgagee, trustee,
20beneficiary, or authorized agent may not record a notice of default
21pursuant to Section 2924 until all of the following:

22(1) The mortgage servicer has satisfied the requirements of
23paragraph (1) of subdivision (b).

24(2) Either 30 days after initial contact is made as required by
25paragraph (2) of subdivision (b) or 30 days after satisfying the due
26diligence requirements as described in subdivision (f).

27(3) The mortgage servicer complies with subdivision (c) of
28Section 2923.6, if the borrower has provided a complete application
29as defined in subdivision (h) of Section 2923.6.

30(b) (1) As specified in subdivision (a), a mortgage servicer shall
31send the following information in writing to the borrower:

32(A) A statement that if the borrower is a servicemember or a
33dependent of a servicemember, he or she may be entitled to certain
34protections under the federal Servicemembers Civil Relief Act (50
35U.S.C. Appen. Sec. 501 et seq.) regarding the servicemember’s
36interest rate and the risk of foreclosure, and counseling for covered
37servicemembers that is available at agencies such as Military
38OneSource and Armed Forces Legal Assistance.

39(B) A statement that the borrower may request the following:

P29   1(i) A copy of the borrower’s promissory note or other evidence
2of indebtedness.

3(ii) A copy of the borrower’s deed of trust or mortgage.

4(iii) A copy of any assignment, if applicable, of the borrower’s
5mortgage or deed of trust required to demonstrate the right of the
6mortgage servicer to foreclose.

7(iv) A copy of the borrower’s payment history since the
8borrower was last less than 60 days past due.

9(2) A mortgage servicer shall contact the borrower in person or
10by telephone in order to assess the borrower’s financial situation
11and explore options for the borrower to avoid foreclosure. During
12the initial contact, the mortgage servicer shall advise the borrower
13that he or she has the right to request a subsequent meeting and,
14if requested, the mortgage servicer shall schedule the meeting to
15occur within 14 days. The assessment of the borrower’s financial
16situation and discussion of options may occur during the first
17contact, or at the subsequent meeting scheduled for that purpose.
18In either case, the borrower shall be provided the toll-free telephone
19number made available by the United States Department of
20Housing and Urban Development (HUD) to find a HUD-certified
21housing counseling agency. Any meeting may occur telephonically.

22(c) A notice of default recorded pursuant to Section 2924 shall
23include a declaration that the mortgage servicer has contacted the
24borrower, has tried with due diligence to contact the borrower as
25required by this section, or that no contact was required because
26the individual did not meet the definition of “borrower” pursuant
27to subdivision (c) of Section 2920.5.

28(d) A mortgage servicer’s loss mitigation personnel may
29participate by telephone during any contact required by this section.

30(e) A borrower may designate, with consent given in writing,
31a HUD-certified housing counseling agency, attorney, or other
32adviser to discuss with the mortgage servicer, on the borrower’s
33behalf, the borrower’s financial situation and options for the
34borrower to avoid foreclosure. That contact made at the direction
35of the borrower shall satisfy the contact requirements of paragraph
36(2) of subdivision (b). Any foreclosure prevention alternative
37offered at the meeting by the mortgage servicer is subject to
38approval by the borrower.

39(f) A notice of default may be recorded pursuant to Section 2924
40when a mortgage servicer has not contacted a borrower as required
P30   1by paragraph (2) of subdivision (b), provided that the failure to
2contact the borrower occurred despite the due diligence of the
3mortgage servicer. For purposes of this section, “due diligence”
4shall require and mean all of the following:

5(1) A mortgage servicer shall first attempt to contact a borrower
6by sending a first-class letter that includes the toll-free telephone
7number made available by HUD to find a HUD-certified housing
8counseling agency.

9(2) (A) After the letter has been sent, the mortgage servicer shall
10attempt to contact the borrower by telephone at least three times
11at different hours and on different days. Telephone calls shall be
12made to the primary telephone number on file.

13(B) A mortgage servicer may attempt to contact a borrower
14using an automated system to dial borrowers, provided that, if the
15telephone call is answered, the call is connected to a live
16representative of the mortgage servicer.

17(C) A mortgage servicer satisfies the telephone contact
18requirements of this paragraph if it determines, after attempting
19contact pursuant to this paragraph, that the borrower’s primary
20telephone number and secondary telephone number or numbers
21on file, if any, have been disconnected.

22(3) If the borrower does not respond within two weeks after the
23telephone call requirements of paragraph (2) have been satisfied,
24the mortgage servicer shall then send a certified letter, with return
25receipt requested, that includes the toll-free telephone number
26made available by HUD to find a HUD-certified housing
27counseling agency.

28(4) The mortgage servicer shall provide a means for the borrower
29to contact it in a timely manner, including a toll-free telephone
30number that will provide access to a live representative during
31business hours.

32(5) The mortgage servicer has posted a prominent link on the
33homepage of its Internet Web site, if any, to the following
34information:

35(A) Options that may be available to borrowers who are unable
36to afford their mortgage payments and who wish to avoid
37foreclosure, and instructions to borrowers advising them on steps
38to take to explore those options.

P31   1(B) A list of financial documents borrowers should collect and
2be prepared to present to the mortgage servicer when discussing
3options for avoiding foreclosure.

4(C) A toll-free telephone number for borrowers who wish to
5discuss options for avoiding foreclosure with their mortgage
6servicer.

7(D) The toll-free telephone number made available by HUD to
8find a HUD-certified housing counseling agency.

9(g) This section shall not apply to entities described in
10subdivision (b) of Section 2924.18.

11(h) This section shall apply only to mortgages or deeds of trust
12described in Section 2924.15.

13(i)  This section shall remain in effect only until January 1, 2018,
14and as of that date is repealed, unless a later enacted statute, that
15is enacted before January 1, 2018, deletes or extends that date.

16

SEC. 15.  

Section 2923.55 of the Civil Code, as added by
17Section 6 of Chapter 87 of the Statutes of 2012, is amended to
18 read:

19

2923.55.  

(a) A mortgage servicer, mortgagee, trustee,
20beneficiary, or authorized agent may not record a notice of default
21pursuant to Section 2924 until all of the following:

22(1) The mortgage servicer has satisfied the requirements of
23paragraph (1) of subdivision (b).

24(2) Either 30 days after initial contact is made as required by
25paragraph (2) of subdivision (b) or 30 days after satisfying the due
26diligence requirements as described in subdivision (f).

27(3) The mortgage servicer complies with subdivision (c) of
28Section 2923.6, if the borrower has provided a complete application
29as defined in subdivision (h) of Section 2923.6.

30(b) (1) As specified in subdivision (a), a mortgage servicer shall
31send the following information in writing to the borrower:

32(A) A statement that if the borrower is a servicemember or a
33dependent of a servicemember, he or she may be entitled to certain
34protections under the federal Servicemembers Civil Relief Act (50
35U.S.C. Appen. Sec. 501 et seq.) regarding the servicemember’s
36interest rate and the risk of foreclosure, and counseling for covered
37servicemembers that is available at agencies such as Military
38OneSource and Armed Forces Legal Assistance.

39(B) A statement that the borrower may request the following:

P32   1(i) A copy of the borrower’s promissory note or other evidence
2of indebtedness.

3(ii) A copy of the borrower’s deed of trust or mortgage.

4(iii) A copy of any assignment, if applicable, of the borrower’s
5mortgage or deed of trust required to demonstrate the right of the
6mortgage servicer to foreclose.

7(iv) A copy of the borrower’s payment history since the
8borrower was last less than 60 days past due.

9(2) A mortgage servicer shall contact the borrower in person or
10by telephone in order to assess the borrower’s financial situation
11and explore options for the borrower to avoid foreclosure. During
12the initial contact, the mortgage servicer shall advise the borrower
13that he or she has the right to request a subsequent meeting and,
14if requested, the mortgage servicer shall schedule the meeting to
15occur within 14 days. The assessment of the borrower’s financial
16situation and discussion of options may occur during the first
17contact, or at the subsequent meeting scheduled for that purpose.
18In either case, the borrower shall be provided the toll-free telephone
19number made available by the United States Department of
20Housing and Urban Development (HUD) to find a HUD-certified
21housing counseling agency. Any meeting may occur telephonically.

22(c) A notice of default recorded pursuant to Section 2924 shall
23include a declaration that the mortgage servicer has contacted the
24borrower, has tried with due diligence to contact the borrower as
25required by this section, or that no contact was required because
26the individual did not meet the definition of “borrower” pursuant
27to subdivision (c) of Section 2920.5.

28(d) A mortgage servicer’s loss mitigation personnel may
29participate by telephone during any contact required by this section.

30(e) A borrower may designate, with consent given in writing,
31a HUD-certified housing counseling agency, attorney, or other
32adviser to discuss with the mortgage servicer, on the borrower’s
33behalf, the borrower’s financial situation and options for the
34borrower to avoid foreclosure. That contact made at the direction
35of the borrower shall satisfy the contact requirements of paragraph
36(2) of subdivision (b). Any foreclosure prevention alternative
37offered at the meeting by the mortgage servicer is subject to
38approval by the borrower.

39(f) A notice of default may be recorded pursuant to Section 2924
40when a mortgage servicer has not contacted a borrower as required
P33   1by paragraph (2) of subdivision (b), provided that the failure to
2contact the borrower occurred despite the due diligence of the
3mortgage servicer. For purposes of this section, “due diligence”
4shall require and mean all of the following:

5(1) A mortgage servicer shall first attempt to contact a borrower
6by sending a first-class letter that includes the toll-free telephone
7number made available by HUD to find a HUD-certified housing
8counseling agency.

9(2) (A) After the letter has been sent, the mortgage servicer shall
10attempt to contact the borrower by telephone at least three times
11at different hours and on different days. Telephone calls shall be
12made to the primary telephone number on file.

13(B) A mortgage servicer may attempt to contact a borrower
14using an automated system to dial borrowers, provided that, if the
15telephone call is answered, the call is connected to a live
16representative of the mortgage servicer.

17(C) A mortgage servicer satisfies the telephone contact
18requirements of this paragraph if it determines, after attempting
19contact pursuant to this paragraph, that the borrower’s primary
20telephone number and secondary telephone number or numbers
21on file, if any, have been disconnected.

22(3) If the borrower does not respond within two weeks after the
23telephone call requirements of paragraph (2) have been satisfied,
24the mortgage servicer shall then send a certified letter, with return
25receipt requested, that includes the toll-free telephone number
26made available by HUD to find a HUD-certified housing
27counseling agency.

28(4) The mortgage servicer shall provide a means for the borrower
29to contact it in a timely manner, including a toll-free telephone
30number that will provide access to a live representative during
31business hours.

32(5) The mortgage servicer has posted a prominent link on the
33homepage of its Internet Web site, if any, to the following
34information:

35(A) Options that may be available to borrowers who are unable
36to afford their mortgage payments and who wish to avoid
37foreclosure, and instructions to borrowers advising them on steps
38to take to explore those options.

P34   1(B) A list of financial documents borrowers should collect and
2be prepared to present to the mortgage servicer when discussing
3options for avoiding foreclosure.

4(C) A toll-free telephone number for borrowers who wish to
5discuss options for avoiding foreclosure with their mortgage
6servicer.

7(D) The toll-free telephone number made available by HUD to
8find a HUD-certified housing counseling agency.

9(g) This section shall not apply to entities described in
10subdivision (b) of Section 2924.18.

11(h) This section shall apply only to mortgages or deeds of trust
12described in Section 2924.15.

13(i)  This section shall remain in effect only until January 1, 2018,
14and as of that date is repealed, unless a later enacted statute, that
15is enacted before January 1, 2018, deletes or extends that date.

16

SEC. 16.  

Section 2924.8 of the Civil Code is amended to read:

17

2924.8.  

(a) (1) Upon posting a notice of sale pursuant to
18Section 2924f, a trustee or authorized agent shall also post the
19following notice, in the manner required for posting the notice of
20sale on the property to be sold, and a mortgagee, trustee,
21beneficiary, or authorized agent, concurrently with the mailing of
22the notice of sale pursuant to Section 2924b, shall send by
23first-class mail in an envelope addressed to the “Resident of
24property subject to foreclosure sale” the following notice in English
25and the languages described in Section 1632:


27Foreclosure process has begun on this property, which may affect
28your right to continue to live in this property. Twenty days or more
29after the date of this notice, this property may be sold at
30foreclosure. If you are renting this property, the new property
31owner may either give you a new lease or rental agreement or
32provide you with a 90-day eviction notice. You may have a right
33to stay in your home for longer than 90 days. If you have a
34fixed-term lease, the new owner must honor the lease unless the
35new owner will occupy the property as a primary residence or in
36other limited circumstances. Also, in some cases and in some cities
37with a “just cause for eviction” law, you may not have to move at
38all. All rights and obligations under your lease or tenancy, including
39your obligation to pay rent, will continue after the foreclosure sale.
P35   1You may wish to contact a lawyer or your local legal aid office or
2housing counseling agency to discuss any rights you may have.

3

4(2) The amendments to the notice in this subdivision made by
5the act that added this paragraph shall become operative on March
61, 2013, or 60 days following posting of a dated notice
7incorporating those amendments on the Department of Consumer
8Affairs Internet Web site, whichever date is later.

9(b) It is an infraction to tear down the notice described in
10subdivision (a) within 72 hours of posting. Violators shall be
11subject to a fine of one hundred dollars ($100).

12(c) The Department of Consumer Affairs shall make available
13translations of the notice described in subdivision (a) which may
14be used by a mortgagee, trustee, beneficiary, or authorized agent
15to satisfy the requirements of this section.

16(d) This section shall only apply to loans secured by residential
17real property, and if the billing address for the mortgage note is
18different than the property address.

19(e) This section shall remain in effect only until December 31,
202019, and as of that date is repealed, unless a later enacted statute,
21that is enacted before December 31, 2019, deletes or extends that
22date.

23

SEC. 17.  

Section 2924.19 of the Civil Code, as added by
24Section 22 of Chapter 86 of the Statutes of 2012, is amended to
25 read:

26

2924.19.  

(a) (1) If a trustee’s deed upon sale has not been
27recorded, a borrower may bring an action for injunctive relief to
28enjoin a material violation of Section 2923.5, 2924.17, or 2924.18.

29(2) An injunction shall remain in place and any trustee’s sale
30shall be enjoined until the court determines that the mortgage
31servicer, mortgagee, beneficiary, or authorized agent has corrected
32and remedied the violation or violations giving rise to the action
33for injunctive relief. An enjoined entity may move to dissolve an
34injunction based on a showing that the material violation has been
35corrected and remedied.

36(b) After a trustee’s deed upon sale has been recorded, a
37mortgage servicer, mortgagee, beneficiary, or authorized agent
38shall be liable to a borrower for actual economic damages pursuant
39to Section 3281, resulting from a material violation of Section
402923.5, 2924.17, or 2924.18 by that mortgage servicer, mortgagee,
P36   1beneficiary, or authorized agent where the violation was not
2corrected and remedied prior to the recordation of the trustee’s
3deed upon sale. If the court finds that the material violation was
4intentional or reckless, or resulted from willful misconduct by a
5mortgage servicer, mortgagee, beneficiary, or authorized agent,
6the court may award the borrower the greater of treble actual
7damages or statutory damages of fifty thousand dollars ($50,000).

8(c) A mortgage servicer, mortgagee, beneficiary, or authorized
9agent shall not be liable for any violation that it has corrected and
10remedied prior to the recordation of the trustee’s deed upon sale,
11or that has been corrected and remedied by third parties working
12 on its behalf prior to the recordation of the trustee’s deed upon
13sale.

14(d) A violation of Section 2923.5, 2924.17, or 2924.18 by a
15person licensed by the Department of Corporations, the Department
16of Financial Institutions, or the Department of Real Estate shall
17be deemed to be a violation of that person’s licensing law.

18(e) A violation of this article shall not affect the validity of a
19sale in favor of a bona fide purchaser and any of its encumbrancers
20for value without notice.

21(f) A third-party encumbrancer shall not be relieved of liability
22resulting from violations of Section 2923.5, 2924.17, or 2924.18,
23committed by that third-party encumbrancer, that occurred prior
24to the sale of the subject property to the bona fide purchaser.

25(g) The rights, remedies, and procedures provided by this section
26are in addition to and independent of any other rights, remedies,
27or procedures under any other law. Nothing in this section shall
28be construed to alter, limit, or negate any other rights, remedies,
29or procedures provided by law.

30(h) A court may award a prevailing borrower reasonable
31attorney’s fees and costs in an action brought pursuant to this
32section. A borrower shall be deemed to have prevailed for purposes
33of this subdivision if the borrower obtained injunctive relief or
34damages pursuant to this section.

35(i) This section shall apply only to entities described in
36subdivision (b) of Section 2924.18.

37(j)  This section shall remain in effect only until January 1, 2018,
38and as of that date is repealed, unless a later enacted statute, that
39is enacted before January 1, 2018, deletes or extends that date.

P37   1

SEC. 18.  

Section 2924.19 of the Civil Code, as added by
2Section 22 of Chapter 87 of the Statutes of 2012, is amended to
3 read:

4

2924.19.  

(a) (1) If a trustee’s deed upon sale has not been
5recorded, a borrower may bring an action for injunctive relief to
6enjoin a material violation of Section 2923.5, 2924.17, or 2924.18.

7(2) An injunction shall remain in place and any trustee’s sale
8shall be enjoined until the court determines that the mortgage
9servicer, mortgagee, beneficiary, or authorized agent has corrected
10and remedied the violation or violations giving rise to the action
11for injunctive relief. An enjoined entity may move to dissolve an
12injunction based on a showing that the material violation has been
13corrected and remedied.

14(b) After a trustee’s deed upon sale has been recorded, a
15mortgage servicer, mortgagee, beneficiary, or authorized agent
16shall be liable to a borrower for actual economic damages pursuant
17to Section 3281, resulting from a material violation of Section
182923.5, 2924.17, or 2924.18 by that mortgage servicer, mortgagee,
19beneficiary, or authorized agent where the violation was not
20corrected and remedied prior to the recordation of the trustee’s
21deed upon sale. If the court finds that the material violation was
22intentional or reckless, or resulted from willful misconduct by a
23mortgage servicer, mortgagee, beneficiary, or authorized agent,
24the court may award the borrower the greater of treble actual
25damages or statutory damages of fifty thousand dollars ($50,000).

26(c) A mortgage servicer, mortgagee, beneficiary, or authorized
27agent shall not be liable for any violation that it has corrected and
28remedied prior to the recordation of the trustee’s deed upon sale,
29or that has been corrected and remedied by third parties working
30 on its behalf prior to the recordation of the trustee’s deed upon
31sale.

32(d) A violation of Section 2923.5, 2924.17, or 2924.18 by a
33person licensed by the Department of Corporations, the Department
34of Financial Institutions, or the Department of Real Estate shall
35be deemed to be a violation of that person’s licensing law.

36(e) A violation of this article shall not affect the validity of a
37sale in favor of a bona fide purchaser and any of its encumbrancers
38for value without notice.

39(f) A third-party encumbrancer shall not be relieved of liability
40resulting from violations of Section 2923.5, 2924.17, or 2924.18,
P38   1committed by that third-party encumbrancer, that occurred prior
2to the sale of the subject property to the bona fide purchaser.

3(g) The rights, remedies, and procedures provided by this section
4are in addition to and independent of any other rights, remedies,
5or procedures under any other law. Nothing in this section shall
6be construed to alter, limit, or negate any other rights, remedies,
7or procedures provided by law.

8(h) A court may award a prevailing borrower reasonable
9attorney’s fees and costs in an action brought pursuant to this
10section. A borrower shall be deemed to have prevailed for purposes
11of this subdivision if the borrower obtained injunctive relief or
12damages pursuant to this section.

13(i) This section shall apply only to entities described in
14subdivision (b) of Section 2924.18.

15(j)  This section shall remain in effect only until January 1, 2018,
16and as of that date is repealed, unless a later enacted statute, that
17is enacted before January 1, 2018, deletes or extends that date.

18

SEC. 19.  

Section 2950 of the Civil Code is amended to read:

19

2950.  

When a grant of real property purports to be an absolute
20conveyance, but is intended to be defeasible on the performance
21of certain conditions, such grant is not defeated or affected as
22against any person other than the grantee or his or her heirs or
23devisees, or persons having actual notice, unless an instrument of
24defeasance, duly executed and acknowledged, shall have been
25recorded in the office of the county recorder of the county where
26the property is situated.

27

SEC. 20.  

Section 3509 of the Civil Code is amended to read:

28

3509.  

The maxims of jurisprudence hereinafter set forth are
29intended not to qualify any of the foregoing provisions of this code,
30but to aid in their just application.

31

SEC. 21.  

Section 116.940 of the Code of Civil Procedure is
32amended to read:

33

116.940.  

(a) Except as otherwise provided in this section or
34in rules adopted by the Judicial Council, which are consistent with
35the requirements of this section, the characteristics of the small
36claims advisory service required by Section 116.260 shall be
37determined by each county, or by the superior court in a county
38where the small claims advisory service is administered by the
39court, in accordance with local needs and conditions.

40(b) Each advisory service shall provide the following services:

P39   1(1) Individual personal advisory services, in person or by
2telephone, and by any other means reasonably calculated to provide
3timely and appropriate assistance. The topics covered by individual
4personal advisory services shall include, but not be limited to,
5preparation of small claims court filings, procedures, including
6procedures related to the conduct of the hearing, and information
7on the collection of small claims court judgments.

8(2) Recorded telephone messages may be used to supplement
9the individual personal advisory services, but shall not be the sole
10means of providing advice available in the county.

11(3) Adjacent counties, superior courts in adjacent counties, or
12any combination thereof, may provide advisory services jointly.

13(c) In a county in which the number of small claims actions
14filed annually is 1,000 or less as averaged over the immediately
15preceding two fiscal years, the county or the superior court may
16elect to exempt itself from the requirements set forth in subdivision
17(b). If the small claims advisory service is administered by the
18county, this exemption shall be formally noticed through the
19adoption of a resolution by the board of supervisors. If the small
20claims advisory service is administered by the superior court, this
21exemption shall be formally noticed through adoption of a local
22rule. If a county or court so exempts itself, the county or court
23shall nevertheless provide the following minimum advisory
24services in accordance with rules adopted by the Judicial Council:

25(1) Recorded telephone messages providing general information
26relating to small claims actions filed in the county shall be provided
27during regular business hours.

28(2) Small claims information booklets shall be provided in the
29court clerk’s office of each superior court, appropriate county
30offices, and in any other location that is convenient to prospective
31small claims litigants in the county.

32(d) The advisory service shall operate in conjunction and
33cooperation with the small claims division, and shall be
34administered so as to avoid the existence or appearance of a conflict
35of interest between the individuals providing the advisory services
36and any party to a particular small claims action or any judicial
37officer deciding small claims actions.

38(e) Advisers may be volunteers, and shall be members of the
39State Bar, law students, paralegals, or persons experienced in
40resolving minor disputes, and shall be familiar with small claims
P40   1court rules and procedures. Advisers may not appear in court as
2an advocate for any party.

3(f) Advisers, including independent contractors, other
4employees, and volunteers, have the immunity conferred by Section
5818.9 of the Government Code with respect to advice provided as
6a public service on behalf of a court or county to small claims
7litigants and potential litigants under this chapter.

8(g) This section does not preclude a court or county from
9contracting with a third party to provide small claims advisory
10services as described in this section.

11

SEC. 22.  

Section 425.50 of the Code of Civil Procedure is
12amended to read:

13

425.50.  

(a) An allegation of a construction-related accessibility
14claim in a complaint, as defined in subdivision (a) of Section 55.52
15of the Civil Code, shall state facts sufficient to allow a reasonable
16person to identify the basis of the violation or violations supporting
17the claim, including all of the following:

18(1) A plain language explanation of the specific access barrier
19or barriers the individual encountered, or by which the individual
20alleges he or she was deterred, with sufficient information about
21the location of the alleged barrier to enable a reasonable person to
22identify the access barrier.

23(2) The way in which the barrier denied the individual full and
24equal use or access, or in which it deterred the individual, on each
25particular occasion.

26(3) The date or dates of each particular occasion on which the
27claimant encountered the specific access barrier, or on which he
28or she was deterred.

29(b) A complaint alleging a construction-related accessibility
30claim, as those terms are defined in subdivision (a) of Section 55.3
31of the Civil Code, shall be verified by the plaintiff. A complaint
32filed without verification shall be subject to a motion to strike.

33(c) Nothing in this section shall limit the right of a plaintiff to
34amend a complaint under Section 472, or with leave of the court
35under Section 473. However, an amended pleading alleging a
36construction-related accessibility claim shall be pled as required
37by subdivision (a).

38(d) This section shall become operative on January 1, 2013.

39

SEC. 23.  

Section 684.115 of the Code of Civil Procedure is
40amended to read:

P41   1

684.115.  

(a) A financial institution may, and if it has more
2than nine branches or offices at which it conducts its business
3within this state shall, designate one or more central locations for
4service of legal process within this state. Each designated location
5shall be referred to as a “central location.” If a financial institution
6elects or is required to designate a central location for service of
7legal process, the financial institution shall file a notice of its
8designation with the Department of Financial Institutions, which
9filing shall be effective upon filing and shall contain all of the
10following:

11(1) The physical address of the central location.

12(2) The days and hours during which service will be accepted
13at the central location.

14(3) If the central location will not accept service of legal process
15directed at deposit accounts maintained or property held at all of
16the financial institution’s branches or offices within this state, or
17if the service accepted at the central location will not apply to
18safe-deposit boxes or other property of the judgment debtor held
19by or for the judgment debtor, the filing shall also contain sufficient
20information to permit a determination of the limitation or
21limitations, including, in the case of a limitation applicable to
22certain branches or offices, an identification of the branches or
23offices as to which service at the central location will not apply
24and the nature of the limitation applicable to those branches or
25offices. If the limitation will apply to all branches or offices of the
26financial institution within this state, the filing may indicate the
27nature of the limitation and that it applies to all branches or offices,
28in lieu of an identification of branches or offices as to which the
29limitation applies. To the extent that a financial institution’s
30designation of a central location for service of legal process covers
31the process directed at deposit accounts, safe-deposit boxes, or
32other property of the judgment debtor held by or for the judgment
33debtor at a particular branch or office located within this state, the
34branch or office shall be a branch or office covered by central
35process.

36(b) Should a financial institution required to designate a central
37location fail to do so, each branch of that institution located in this
38state shall be deemed to be a central location at which service of
39legal process may be made, and all of the institution’s branches
P42   1or offices located within this state shall be deemed to be a branch
2or office covered by central process.

3(c) Subject to any limitation noted pursuant to paragraph (3) of
4subdivision (a), service of legal process at a central location of a
5financial institution shall be effective against all deposit accounts
6and all property held for safekeeping, as collateral for an obligation
7owed to the financial institution or in a safe-deposit box if the same
8is described in the legal process and held by the financial institution
9at any branch or office covered by central process and located
10within this state. However, while service of legal process at the
11central location will establish a lien on all property, if any property
12other than deposit accounts is physically held by the financial
13institution in a county other than that in which the designated
14central location is located, the financial institution shall include in
15its garnishee’s memorandum the location or locations of the
16property, and the judgment creditor shall obtain a writ of execution
17covering the property and directed to the levying officer in that
18county to accomplish the turnover of the property and shall forward
19the writ and related required documentation to the levying officer
20in the county in which the property is held.

21(d) A financial institution may modify or revoke any designation
22made pursuant to subdivision (a) by filing the modification or
23revocation with the Department of Financial Institutions. The
24modification or revocation shall be effective when the Department
25of Financial Institutions’ records have been updated to reflect the
26modification or revocation, provided that the judgment creditor
27may rely upon the superseded designation during the 30-day period
28following the effective date of the revocation or modification.

29(e) (1) The Department of Financial Institutions shall update its
30online records to reflect a filing by a financial institution pursuant
31to subdivision (a) or a modification or revocation filed by a
32financial institution pursuant to subdivision (d) within 10 business
33days following the filing by the financial institution. The
34Department of Financial Institutions’ Internet Web site shall reflect
35the date its online records for each financial institution have most
36recently been updated.

37(2) The Department of Financial Institutions shall provide any
38person requesting it with a copy of each current filing made by a
39financial institution pursuant to subdivision (a). The Department
40of Financial Institutions may satisfy its obligation under this
P43   1subdivision by posting all current designations of a financial
2institution, or the pertinent information therein, on an Internet Web
3site available to the public without charge, and if that information
4is made available, the Department of Financial Institutions may
5impose a reasonable fee for furnishing that information in any
6other manner.

7(f) As to deposit accounts maintained or property held for
8safekeeping, as collateral for an obligation owed to the financial
9institution or in a safe-deposit box at a branch or office covered
10by central process, service of legal process at a location other than
11a central location designated by the financial institution shall not
12be effective unless the financial institution, in its absolute
13discretion, elects to act upon the process at that location as if it
14were effective. In the absence of an election, the financial
15institution may respond to the legal process by mailing or delivery
16of the garnishee’s memorandum to the levying officer within the
17time otherwise provided therefor, with a statement on the
18garnishee’s memorandum that the legal process was not properly
19served at the financial institution’s designated location for receiving
20legal process, and, therefore, was not processed, and the address
21at which the financial institution is to receive legal process.

22(g) If any legal process is served at a central location of a
23financial institution pursuant to this section, all related papers to
24be served on the financial institution shall be served at that location,
25unless agreed to the contrary between the serving party and the
26financial institution.

27(h) This subdivision shall apply whenever a financial institution
28operates within this state at least one branch or office in addition
29to its head office or main office, as applicable, or a financial
30institution headquartered in another state operates more than one
31branch or office within this state, and no central location has been
32designated or deemed to have been designated by the institution
33for service of legal process relating to deposit accounts maintained
34at the financial institution’s head office or main office, as
35applicable, and branches located within this state. If a judgment
36creditor reasonably believes that, pursuant to Section 700.140 and,
37if applicable, Section 700.160, any act of enforcement would be
38effective against a specific deposit account maintained at a financial
39institution described in this subdivision, the judgment creditor may
40file with the financial institution a written request that the financial
P44   1institution identify the branch or office within this state at which
2a specified account might be maintained by the financial institution.
3The written request shall contain the following statements or
4information:

5(1) The name of the person reasonably believed by the judgment
6creditor to be a person in whose name the specified deposit account
7stands.

8(2) If the name of the person reasonably believed by the
9judgment creditor to be a person in whose name the specified
10deposit account stands is not a judgment debtor identified in the
11writ of execution, a statement that a person reasonably believed
12 by the judgment creditor to be a person in whose name the specified
13deposit account stands will be appropriately identified in the legal
14process to be served pursuant to Section 700.160, including any
15supplementary papers, such as a court order or affidavit if the same
16will be required by Section 700.160.

17(3) The specific identifying number of the account reasonably
18believed to be maintained with the financial institution and standing
19in the name of the judgment debtor or other person.

20(4) The address of the requesting party.

21(5) An affidavit by the judgment creditor or the judgment
22creditor’s counsel stating substantially the following:

23

24I hereby declare that this deposit account location request
25complies with Section 684.115 of the Code of Civil Procedure,
26that the account or accounts of the judgment debtor or other person
27or persons appropriately identified in the legal process and
28specified herein are subject to a valid writ of execution, or court
29order, that I have a reasonable belief, formed after an inquiry
30reasonable under the circumstances, that the financial institution
31receiving this deposit account location request has an account
32standing in the name of the judgment debtor or other person or
33persons appropriately identified in the legal process, and that
34information pertaining to the location of the account will assist the
35judgment creditor in enforcing the judgment.

36

37(i) The affidavit contemplated by subdivision (h) shall be signed
38by the judgment creditor or the judgment creditor’s counsel and
39filed at the financial institution’s head office located within this
40state or, if the financial institution’s head office is in another state,
P45   1at one of its branches or offices within this state. Failure to comply
2with the requirements of subdivision (h) and this subdivision shall
3be sufficient basis for the financial institution to refuse to produce
4the information that would otherwise be required by subdivision
5(j).

6(j) Within 10 banking days following receipt by a financial
7institution at the applicable location specified in subdivision (i) of
8a request contemplated by subdivision (h), as to each specific
9deposit account identified in the request contemplated by
10subdivision (h), the financial institution shall respond by mailing,
11by first-class mail with postage prepaid, to the requester’s address
12as specified in the request a response indicating the branch or office
13location of the financial institution at which the specified deposit
14account might be maintained, or, if the specified deposit account,
15if it exists, would not be maintained at a specific location, at least
16one place within this state at which legal process relating to the
17deposit account should or may be served. The response to be
18furnished pursuant to this subdivision shall not require the financial
19institution to determine whether an account exists or, if an account
20does exist, whether it would be reached by the legal process, rather,
21the branch or office location shall be determined and reported by
22the financial institution based solely upon its determination that
23an account with the identifying number provided by the requester
24would be maintained at that branch if an account did exist, and the
25response shall not contain any information about the name in which
26the account stands or any other information concerning the account,
27if it exists. If more than one account number is specified in the
28request, the financial institution’s responses as to some or all of
29those account numbers may be combined in a single writing.

30(k) A response furnished in good faith by the financial institution
31pursuant to subdivision (j) shall not be deemed to violate the
32privacy of any person in whose name the specified deposit account
33stands nor the privacy of any other person, and shall not require
34the consent of the person in whose name the account stands nor
35that of any other person.

36(l) A financial institution shall not notify the person in whose
37name the specified deposit account stands or any other person
38related to the specified account of the receipt of any request made
39pursuant to subdivision (h) and affecting that person’s or persons’
40accounts at the financial institution, provided that the financial
P46   1institution shall have no liability for its failure to comply with the
2provisions of this subdivision.

3

SEC. 24.  

Section 1282.4 of the Code of Civil Procedure is
4amended to read:

5

1282.4.  

(a) A party to the arbitration has the right to be
6represented by an attorney at any proceeding or hearing in
7arbitration under this title. A waiver of this right may be revoked;
8but if a party revokes that waiver, the other party is entitled to a
9reasonable continuance for the purpose of procuring an attorney.

10(b) Notwithstanding any other law, including Section 6125 of
11the Business and Professions Code, an attorney admitted to the
12bar of any other state may represent the parties in the course of,
13or in connection with, an arbitration proceeding in this state,
14provided that the attorney, if not admitted to the State Bar of
15California, satisfies all of the following:

16(1) He or she timely serves the certificate described in
17subdivision (c).

18(2) The attorney’s appearance is approved in writing on that
19certificate by the arbitrator, the arbitrators, or the arbitral forum.

20(3) The certificate bearing approval of the attorney’s appearance
21is filed with the State Bar of California and served on the parties
22as described in this section.

23(c) Within a reasonable period of time after the attorney
24described in subdivision (b) indicates an intention to appear in the
25arbitration, the attorney shall serve a certificate in a form prescribed
26by the State Bar of California on the arbitrator, arbitrators, or
27arbitral forum, the State Bar of California, and all other parties
28and counsel in the arbitration whose addresses are known to the
29attorney. The certificate shall state all of the following:

30(1) The case name and number, and the name of the arbitrator,
31arbitrators, or arbitral forum assigned to the proceeding in which
32the attorney seeks to appear.

33(2) The attorney’s residence and office address.

34(3) The courts before which the attorney has been admitted to
35practice and the dates of admission.

36(4) That the attorney is currently a member in good standing
37of, and eligible to practice law before, the bar of those courts.

38(5) That the attorney is not currently on suspension or disbarred
39from the practice of law before the bar of any court.

40(6) That the attorney is not a resident of the State of California.

P47   1(7) That the attorney is not regularly employed in the State of
2California.

3(8) That the attorney is not regularly engaged in substantial
4business, professional, or other activities in the State of California.

5(9) That the attorney agrees to be subject to the jurisdiction of
6the courts of this state with respect to the law of this state governing
7the conduct of attorneys to the same extent as a member of the
8State Bar of California.

9(10) The title of the court and the cause in which the attorney
10has filed an application to appear as counsel pro hac vice in this
11state or filed a certificate pursuant to this section in the preceding
12two years, the date of each application or certificate, and whether
13or not it was granted. If the attorney has made repeated
14 appearances, the certificate shall reflect the special circumstances
15that warrant the approval of the attorney’s appearance in the
16arbitration.

17(11) The name, address, and telephone number of the active
18member of the State Bar of California who is the attorney of record.

19(d) The arbitrator, arbitrators, or arbitral forum may approve
20the attorney’s appearance if the attorney has complied with
21subdivision (c). Failure to timely file and serve the certificate
22described in subdivision (c) shall be grounds for disapproval of
23the appearance and disqualification from serving as an attorney in
24the arbitration in which the certificate was filed. In the absence of
25special circumstances, repeated appearances shall be grounds for
26disapproval of the appearance and disqualification from serving
27as an attorney in the arbitration in which the certificate was filed.

28(e) Within a reasonable period of time after the arbitrator,
29arbitrators, or arbitral forum approves the certificate, the attorney
30shall file the certificate with the State Bar of California and serve
31the certificate as described in Section 1013a on all parties and
32counsel in the arbitration whosebegin delete address isend deletebegin insert addresses areend insert known
33to the attorney.

34(f) An attorney who fails to file or serve the certificate required
35by this section or files or serves a certificate containing false
36information or who otherwise fails to comply with the standards
37of professional conduct required of members of the State Bar of
38California shall be subject to the disciplinary jurisdiction of the
39State Bar with respect to that certificate or any of his or her acts
40occurring in the course of the arbitration.

P48   1(g) Notwithstanding any other law, including Section 6125 of
2the Business and Professions Code, an attorney who is a member
3in good standing of the bar of any state may represent the parties
4in connection with rendering legal services in this state in the
5course of and in connection with an arbitration pending in another
6state.

7(h) Notwithstanding any other law, including Section 6125 of
8the Business and Professions Code, any party to an arbitration
9arising under collective bargaining agreements in industries and
10provisions subject to either state or federal law may be represented
11in the course of, and in connection with, those proceedings by any
12person, regardless of whether that person is licensed to practice
13law in this state.

14(i) Nothing in this section shall apply to Division 4 (commencing
15with Section 3201) of the Labor Code.

16(j) (1) In enacting the amendments to this section made by
17Assembly Bill 2086 of the 1997-98 Regular Session, it is the intent
18of the Legislature to respond to the holding in Birbrower v.
19Superior Court (1998) 17 Cal.4th 119, as modified at 17 Cal.4th
20643a (hereafter Birbrower), to provide a procedure for nonresident
21attorneys who are not licensed in this state to appear in California
22arbitration proceedings.

23(2) In enacting subdivision (h), it is the intent of the Legislature
24to make clear that any party to an arbitration arising under a
25collective bargaining agreement governed by the laws of this state
26may be represented in the course of and in connection with those
27proceedings by any person regardless of whether that person is
28licensed to practice law in this state.

29(3) Except as otherwise specifically provided in this section, in
30enacting the amendments to this section made by Assembly Bill
312086 of the 1997-98 Regular Session, it is the Legislature’s intent
32that nothing in this section is intended to expand or restrict the
33ability of a party prior to the decision in Birbrower to elect to be
34represented by any person in a nonjudicial arbitration proceeding,
35to the extent those rights or abilities existed prior to that decision.
36To the extent that Birbrower is interpreted to expand or restrict
37that right or ability pursuant to the laws of this state, it is hereby
38abrogated except as specifically provided in this section.

39(4) In enacting subdivision (i), it is the intent of the Legislature
40to make clear that nothing in this section shall affect those
P49   1provisions of law governing the right of injured workers to elect
2 to be represented by any person, regardless of whether that person
3is licensed to practice law in this state, as set forth in Division 4
4(commencing with Section 3200) of the Labor Code.

5

SEC. 25.  

Section 7237 of the Corporations Code is amended
6to read:

7

7237.  

(a) For purposes of this section, “agent” means a person
8who is or was a director, officer, employee, or other agent of the
9corporation, or is or was serving at the request of the corporation
10as a director, officer, employee, or agent of another foreign or
11domestic corporation, partnership, joint venture, trust or other
12enterprise, or was a director, officer, employee, or agent of a
13foreign or domestic corporation that was a predecessor corporation
14of the corporation or of another enterprise at the request of the
15predecessor corporation; “proceeding” means any threatened,
16pending, or completed action or proceeding, whether civil, criminal,
17administrative, or investigative; and “expenses” includes, without
18limitation, attorneys’ fees and any expenses of establishing a right
19to indemnification under subdivision (d) or paragraph (3) of
20subdivision (e).

21(b) A corporation shall have power to indemnify a person who
22was or is a party or is threatened to be made a party to any
23proceeding (other than an action by or in the right of the
24corporation to procure a judgment in its favor, an action brought
25under Section 5233 of Part 2 (commencing with Section 5110)
26made applicable pursuant to Section 7238, or an action brought
27by the Attorney General or a person granted relator status by the
28Attorney General for any breach of duty relating to assets held in
29charitable trust) by reason of the fact that the person is or was an
30agent of the corporation, against expenses, judgments, fines,
31settlements, and other amounts actually and reasonably incurred
32in connection with the proceeding if the person acted in good faith
33and in a manner the person reasonably believed to be in the best
34interests of the corporation and, in the case of a criminal
35proceeding, had no reasonable cause to believe the conduct of the
36person was unlawful. The termination of any proceeding by
37judgment, order, settlement, conviction, or upon a plea of nolo
38contendere or its equivalent shall not, of itself, create a presumption
39that the person did not act in good faith and in a manner which the
40person reasonably believed to be in the best interests of the
P50   1corporation or that the person had reasonable cause to believe that
2the person’s conduct was unlawful.

3(c) A corporation shall have power to indemnify a person who
4was or is a party or is threatened to be made a party to any
5threatened, pending, or completed action by or in the right of the
6corporation, or brought under Section 5233 of Part 2 (commencing
7with Section 5110) made applicable pursuant to Section 7238, or
8brought by the Attorney General or a person granted relator status
9by the Attorney General for breach of duty relating to assets held
10in charitable trust, to procure a judgment in its favor by reason of
11the fact that the person is or was an agent of the corporation, against
12expenses actually and reasonably incurred by the person in
13connection with the defense or settlement of the action if the person
14acted in good faith, in a manner the person believed to be in the
15best interests of the corporation and with such care, including
16reasonable inquiry, as an ordinarily prudent person in a like
17position would use under similar circumstances. No
18indemnification shall be made under this subdivision:

19(1) With respect to any claim, issue, or matter as to which the
20person shall have been adjudged to be liable to the corporation in
21the performance of the person’s duty to the corporation, unless
22and only to the extent that the court in which the proceeding is or
23was pending shall determine upon application that, in view of all
24the circumstances of the case, the person is fairly and reasonably
25entitled to indemnity for the expenses which the court shall
26determine;

27(2) Of amounts paid in settling or otherwise disposing of a
28threatened or pending action, with or without court approval; or

29(3) Of expenses incurred in defending a threatened or pending
30action that is settled or otherwise disposed of without court
31approval unless the action concerns assets held in charitable trust
32and is settled with the approval of the Attorney General.

33(d) To the extent that an agent of a corporation has been
34successful on the merits in defense of any proceeding referred to
35in subdivision (b) or (c) or in defense of any claim, issue, or matter
36therein, the agent shall be indemnified against expenses actually
37and reasonably incurred by the agent in connection therewith.

38(e) Except as provided in subdivision (d), any indemnification
39under this section shall be made by the corporation only if
40authorized in the specific case, upon a determination that
P51   1indemnification of the agent is proper in the circumstances because
2the agent has met the applicable standard of conduct set forth in
3subdivision (b) or (c), by:

4(1) A majority vote of a quorum consisting of directors who are
5not parties to the proceeding;

6(2) Approval of the members (Section 5034), with the persons
7to be indemnified not being entitled to vote thereon; or

8(3) The court in which the proceeding is or was pending upon
9application made by the corporation or the agent or the attorney,
10or other person rendering services in connection with the defense,
11whether or not the application by the agent, attorney or other person
12is opposed by the corporation.

13(f) Expenses incurred in defending any proceeding may be
14advanced by the corporation before the final disposition of the
15proceeding upon receipt of an undertaking by or on behalf of the
16agent to repay the amount unless it shall be determined ultimately
17that the agent is entitled to be indemnified as authorized in this
18section. The provisions of subdivision (a) of Section 7235 do not
19apply to advances made pursuant to this subdivision.

20(g) A provision made by a corporation to indemnify its or its
21subsidiary’s directors or officers for the defense of any proceeding,
22whether contained in the articles, bylaws, a resolution of members
23or directors, an agreement, or otherwise, shall not be valid unless
24consistent with this section. Nothing contained in this section shall
25affect any right to indemnification to which persons other than the
26directors and officers may be entitled by contract or otherwise.

27(h) No indemnification or advance shall be made under this
28section, except as provided in subdivision (d) or paragraph (3) of
29subdivision (e), in any circumstance where it appears:

30(1) That it would be inconsistent with a provision of the articles,
31bylaws, a resolution of the members, or an agreement in effect at
32the time of the accrual of the alleged cause of action asserted in
33the proceeding in which the expenses were incurred or other
34amounts were paid, which prohibits or otherwise limits
35indemnification; or

36(2) That it would be inconsistent with any condition expressly
37imposed by a court in approving a settlement.

38(i) A corporation shall have power to purchase and maintain
39insurance on behalf of an agent of the corporation against any
40 liability asserted against or incurred by the agent in that capacity
P52   1or arising out of the agent’s status as such whether or not the
2corporation would have the power to indemnify the agent against
3that liability under the provisions of this section.

4(j) This section does not apply to any proceeding against a
5trustee, investment manager, or other fiduciary of a pension,
6deferred compensation, saving, thrift, or other retirement, incentive,
7or benefit plan, trust, or provision for any or all of the corporation’s
8directors, officers, employees, and persons providing services to
9the corporation or any of its subsidiary or related or affiliated
10corporations, in that person’s capacity as such, even though the
11person may also be an agent as defined in subdivision (a) of the
12employer corporation. A corporation shall have power to indemnify
13the trustee, investment manager, or other fiduciary to the extent
14permitted by subdivision (e) of Section 7140.

15

SEC. 26.  

The heading of Chapter 5.5 (commencing with
16Section 15900) of Title 2 of the Corporations Code is amended
17and renumbered to read:

18 

19Chapter  4.5. Uniform Limited Partnership Act of 2008
20

 

21

SEC. 27.  

Section 15282 of the Education Code is amended to
22read:

23

15282.  

(a) The citizens’ oversight committee shall consist of
24at least seven members who shall serve for a minimum term of
25two years without compensation and for no more than three
26consecutive terms. While consisting of a minimum of at least seven
27members, the citizens’ oversight committee shall be comprised,
28as follows:

29(1) One member shall be active in a business organization
30representing the business community located within the school
31district or community college district.

32(2) One member shall be active in a senior citizens’ organization.

33(3) One member shall be active in a bona fide taxpayers’
34organization.

35(4) For a school district, one member shall be the parent or
36guardian of a child enrolled in the school district. For a community
37college district, one member shall be a student who is both
38currently enrolled in the community college district and active in
39a community college group, such as student government. The
40community college student member may, at the discretion of the
P53   1governing board of the community college district, serve up to six
2months after his or her graduation.

3(5) For a school district, one member shall be both a parent or
4guardian of a child enrolled in the school district and active in a
5parent-teacher organization, such as the Parent Teacher Association
6or schoolsite council. For a community college district, one
7member shall be active in the support and organization of a
8community college or the community colleges of the district, such
9as a member of an advisory council or foundation.

10(b) An employee or official of the school district or community
11college district shall not be appointed to the citizens’ oversight
12committee. A vendor, contractor, or consultant of the school district
13or community college district shall not be appointed to the citizens’
14oversight committee. Members of the citizens’ oversight committee
15shall, pursuant to Sections 35233 and 72533, abide by the
16prohibitions contained in Article 4 (commencing with Section
171090) and Article 4.7 (commencing with Section 1125) of Chapter
181 of Division 4 of Title 1 of the Government Code.

19

SEC. 28.  

Section 17193.5 of the Education Code is amended
20to read:

21

17193.5.  

(a) For purposes of this section, “public credit
22provider” means any financial institution or combination of
23financial institutions, that consists either solely, or has as a member
24or participant, a public retirement system. Notwithstanding any
25other law, a public credit provider, in connection with providing
26credit enhancement for bonds, notes, certificates of participation,
27or other evidences of indebtedness of a participating party, may
28require the participating party to agree to the following conditions:

29(1) If a participating party adopts a resolution by a majority vote
30of its board to participate under this section, it shall provide notice
31to the Controller of that election. The notice shall include a
32schedule for the repayment of principal and interest on the bonds,
33notes, certificates of participation, or other evidence of
34indebtedness and identify the public credit provider that provided
35credit enhancement. The notice shall be provided not later than
36the date of issuance of the bonds.

37(2) If, for any reason, a public credit provider is required to
38make principal or interest payments, or both, pursuant to a credit
39enhancement agreement, the public credit provider shall
P54   1immediately notify the Controller of that fact and of the amount
2paid out by the public credit provider.

3(3) Upon receipt of the notice required by paragraph (2), the
4Controller shall make an apportionment to the public credit
5provider in the amount of the payments made by the public credit
6provider for the purpose of reimbursing the public credit provider
7for its expenditures made pursuant to the credit enhancement
8agreement. The Controller shall make that apportionment only
9from moneys designated for apportionments to a participating
10party, provided that such moneys are from one or more of the
11following:

12(A) Any revenue limit apportionments to a school district or
13county office of education without regard to the specific funding
14source of the apportionment.

15(B) Any general apportionments to a community college district
16without regard to the specific funding source of the apportionment.

17(C) Any charter school block grant apportionments to a charter
18school without regard to the specific funding source of the
19apportionment.

20(D) Any charter school categorical block grant apportionments
21to a charter school without regard to the specific funding source
22of the apportionment.

23(b) The amount apportioned for a participating party pursuant
24to this section shall be deemed to be an allocation to the
25participating party and shall be included in the computation of
26allocation, limit, entitlement, or apportionment for the participating
27party. The participating party and its creditors do not have a claim
28to funds apportioned or anticipated to be apportioned to the trustee
29by the Controller pursuant to paragraph (3) of subdivision (a).

30

SEC. 29.  

Section 17250.25 of the Education Code is amended
31to read:

32

17250.25.  

Design-build projects shall progress as follows:

33(a) (1) The school district governing board shall prepare a
34request for proposal setting forth the scope of the project that may
35include, but is not limited to, the size, type, and desired design
36character of the buildings and site, performance specifications
37covering the quality of materials, equipment, and workmanship,
38preliminary plans or building layouts, or any other information
39deemed necessary to describe adequately the school district’s
40needs. The performance specifications and any plans shall be
P55   1prepared by a design professional duly licensed or registered in
2this state. The request for proposal shall not include a
3design-build-operate contract for educational facilities pursuant
4to this chapter.

5(2) Each request for proposal shall do all of the following:

6(A) Identify the basic scope and needs of the project or contract,
7the expected cost range, and other information deemed necessary
8by the school district to inform interested parties of the contracting
9opportunity.

10(B) Invite interested parties to submit competitive sealed
11proposals in the manner prescribed by the school district.

12(C) Include a section identifying and describing the following:

13(i) All significant factors and subfactors that the school district
14reasonably expects to consider in evaluating proposals, including
15cost or price and all nonprice related factors and subfactors.

16(ii) The methodology and rating or weighting scheme that will
17be used by the school district governing board in evaluating
18competitive proposals and specifically whether proposals will be
19rated according to numeric or qualitative values.

20(iii) The relative importance or weight assigned to each of the
21factors identified in the request for proposal.

22(iv) As an alternative to clause (iii), the governing board of a
23school district shall specifically disclose whether all evaluation
24factors other than cost or price, when combined, are any of the
25following:

26(I) Significantly more important than cost or price.

27(II) Approximately equal in importance to cost or price.

28(III) Significantly less important than cost or price.

29(v) If the school district governing board wishes to reserve the
30right to hold discussions or negotiations with responsive bidders,
31it shall so specify in the request for proposal and shall publish
32separately or incorporate into the request for proposal applicable
33rules and procedures to be observed by the school district to ensure
34that any discussions or negotiations are conducted in a fair and
35impartial manner.

36(3) Notwithstanding Section 4-315 of Title 24 of the California
37Code of Regulations, an architect or structural engineer who is
38party to a design-build entity may perform the services set forth
39in Section 17302.

P56   1(b) (1) The school district shall establish a procedure to
2 prequalify design-build entities using a standard questionnaire
3developed by the Director of the Department of Industrial
4Relations. In preparing the questionnaire, the director shall consult
5with the construction industry, including representatives of the
6building trades, surety industry, school districts, and other affected
7parties. This questionnaire shall require information including, but
8not limited to, all of the following:

9(A) If the design-build entity is a partnership, limited
10partnership, or other association, a listing of all of the partners,
11general partners, or association members who will participate as
12subcontractors in the design-build contract, including, but not
13limited to, electrical and mechanical subcontractors.

14(B) Evidence that the members of the design-build entity have
15completed, or demonstrated, the experience, competency,
16capability, and capacity to complete projects of similar size, scope,
17or complexity, and that proposed key personnel have sufficient
18experience and training to competently manage and complete the
19design and construction of the project.

20(C) The licenses, registration, and credentials required to design
21and construct the project, including information on the revocation
22or suspension of a license, credential, or registration.

23(D) Evidence that establishes that the design-build entity has
24the capacity to obtain all required payment and performance
25bonding, liability insurance, and errors and omissions insurance,
26as well as a financial statement that ensures the school district that
27the design-build entity has the capacity to complete the project.

28(E) Any prior serious or willful violation of the California
29Occupational Safety and Health Act of 1973 (Part 1 (commencing
30with Section 6300) of Division 5 of the Labor Code) or the federal
31Occupational Safety and Health Act of 1970 (P.L. 91-596), settled
32against a member of the design-build entity, and information
33concerning a contractor member’s workers’ compensation
34experience history and worker safety program.

35(F) Information concerning any debarment, disqualification, or
36removal from a federal, state, or local government public works
37project.

38(G) Any instance where an entity, its owners, officers, or
39managing employees, submitted a bid on a public works project
40and were found by an awarding body not to be a responsible bidder.

P57   1(H) Any instance where the entity, its owners, officers, or
2managing employees defaulted on a construction contract.

3(I) Any prior violations of the Contractors’ State License Law
4(Chapter 9 (commencing with Section 7000) of Division 3 of the
5Business and Professions Code), excluding alleged violations of
6federal or state law including the payment of wages, benefits,
7apprenticeship requirements, or personal income tax withholding,
8or of Federal Insurance Contribution Act (FICA) withholding
9requirements, settled against a member of the design-build entity.

10(J) Information concerning the bankruptcy or receivership of a
11member of the entity, including information concerning any work
12completed by a surety.

13(K) Information concerning all settled adverse claims, disputes,
14or lawsuits between the owner of a public works project and a
15member of the design-build entity during the five-year period
16preceding submission of the bid pursuant to this section, in which
17the claim, settlement, or judgment exceeds fifty thousand dollars
18($50,000). Information shall also be provided concerning any work
19completed by a surety during this period.

20(L) In the case of a partnership or other association that is not
21a legal entity, a copy of the agreement creating the partnership or
22association.

23(2) The information required pursuant to this subdivision shall
24be verified under oath by the design-build entity and its members
25in the manner in which civil pleadings in civil actions are verified.
26Information that is not a public record pursuant to the California
27Public Records Act (Chapter 3.5 (commencing with Section 6250)
28of Division 7 of Title 1 of the Government Code) shall not be open
29to public inspection.

30(c) The school district shall establish a procedure for final
31selection of the design-build entity. Selection shall be based on
32either of the following criteria:

33(1) A competitive bidding process resulting in lump-sum bids
34by the prequalified design-build entities. Award shall be made on
35the basis of the lowest responsible bid.

36(2) Notwithstanding any other provision of this code or of
37Section 20110 of the Public Contract Code, a school district may
38use a design-build competition based upon performance and other
39criteria set forth by the governing board of the school district in
40the solicitation of proposals. Criteria used in this evaluation of
P58   1proposals may include, but need not be limited to, the proposed
2design approach, life-cycle costs, project features, and project
3functions. However, competitive proposals shall be evaluated by
4using the criteria and source selection procedures specifically
5identified in the request for proposal. Once the evaluation is
6complete, all responsive bidders shall be ranked from the most
7advantageous to least advantageous to the school district.

8(A) An architectural or engineering firm or individual retained
9by the governing board of the school district to assist in the
10development criteria or preparation of the request for proposal
11shall not be eligible to participate in the competition with the
12design-build entity.

13(B) The award of the contract shall be made to the responsible
14bidder whose proposal is determined, in writing by the school
15district, to be the best value to the school district.

16(C) Proposals shall be evaluated and scored solely on the basis
17of the factors and source selection procedures identified in the
18request for proposal. However, the following minimum factors
19shall collectively represent at least 50 percent of the total weight
20or consideration given to all criteria factors: price, technical
21expertise, life-cycle costs over 15 years or more, skilled labor force
22availability, and acceptable safety record.

23(D) The school district governing board shall issue a written
24decision supporting its contract award and stating in detail the
25basis of the award. The decision and the contract file must be
26sufficient to satisfy an external audit.

27(E) Notwithstanding any provision of the Public Contract Code,
28upon issuance of a contract award, the school district governing
29board shall publicly announce its awards identifying the contractor
30to whom the award is made, the winning contractor’s price proposal
31and its overall combined rating on the request for proposal
32evaluation factors. The notice of award shall also include the
33agency’s ranking in relation to all other responsive bidders and
34their respective price proposals and a summary of the school
35district’s rationale for the contract award.

36(F) For purposes of this chapter, “skilled labor force availability”
37means that an agreement exists with a registered apprenticeship
38program, approved by the California Apprenticeship Council,
39which has graduated apprentices in the preceding five years. This
40graduation requirement shall not apply to programs providing
P59   1apprenticeship training for any craft that has not been deemed by
2the United States Department of Labor and the Department of
3Industrial Relations to be an apprenticable craft in the two years
4before enactment of this act.

5(G) For purposes of this chapter, a bidder’s “safety record” shall
6be deemed “acceptable” if its experience modification rate for the
7most recent three-year period is an average of 1.00 or less, and its
8average total recordable injury or illness rate and average lost work
9rate for the most recent three-year period do not exceed the
10applicable statistical standards for its business category, or if the
11bidder is a party to an alternative dispute resolution system as
12provided for in Section 3201.5 of the Labor Code.

13

SEC. 30.  

Section 18720 of the Education Code is amended to
14read:

15

18720.  

(a) There is hereby established in the state government
16the California Library Services Board, to consist of 13 members.
17The Governor shall appoint nine members of the board. Three of
18the Governor’s appointments shall be representative of laypersons,
19one of whom shall represent people with disabilities, one of whom
20shall represent limited- and non-English-speaking persons, and
21one of whom shall represent economically disadvantaged persons.

22(b) The Governor shall also appoint six members of the board,
23each of whom shall represent one of the following categories:
24school libraries, libraries for institutionalized persons, public library
25trustees or commissioners, public libraries, special libraries, and
26academic libraries.

27(c) The Legislature shall appoint the remaining four public
28members from persons who are not representative of categories
29mentioned in this section. Two shall be appointed by the Senate
30Committee on Rules and two shall be appointed by the Speaker
31of the Assembly.

32(d) The terms of office of members of the board shall be for
33four years and shall begin on January 1 of the year in which the
34respective terms are to start.

35(e) On January 1, 2013, the members of the board shall be those
36persons serving on the former Library of California Board,
37appointed pursuant to former Section 18820, as it existed on
38December 31, 2012, who shall serve for the duration of their terms.

P60   1

SEC. 31.  

Section 22138.5 of the Education Code, as added by
2Section 2 of Chapter 829 of the Statutes of 2012, is amended to
3read:

4

22138.5.  

(a) (1) “Full time” means the days or hours of
5creditable service the employer requires to be performed by a class
6of employees in a school year in order to earn the compensation
7earnable as defined in Section 22115 and specified under the terms
8of a collective bargaining agreement or employment agreement.
9For the purpose of crediting service under this part, “full time”
10may not be less than the minimum standard specified in this
11section. Each collective bargaining agreement or employment
12agreement that applies to a member subject to the minimum
13standard specified in either paragraph (5) or (6) of subdivision (c)
14shall specify the number of hours of creditable service that equals
15“full time” pursuant to this section for each class of employee
16subject to either paragraph and make specific reference to this
17 section, and the district shall submit a copy of the agreement to
18the system.

19(2) The copies of each agreement shall be submitted
20electronically in a format determined by the system that ensures
21the security of the transmitted member data.

22(3) The copies shall be electronically submitted annually to the
23system on or before July 1, or on or before the effective date of
24the agreement, whichever is later.

25(b) The minimum standard for full time in prekindergarten
26through grade 12 is as follows:

27(1) One hundred seventy-five days per year or 1,050 hours per
28year, except as provided in paragraphs (2) and (3).

29(2) (A)   One hundred ninety days per year or 1,520 hours per
30year for all principals and program managers, including advisers,
31coordinators, consultants, and developers or planners of curricula,
32instructional materials, or programs, and for administrators, except
33as provided in subparagraph (B).

34(B) Two hundred fifteen days per year or 1,720 hours per year
35including school and legal holidays pursuant to the policy adopted
36by the employer’s governing board for administrators at a county
37office of education.

38(3) One thousand fifty hours per year for teachers in adult
39education programs.

P61   1(c) The minimum standard for full time in community colleges
2is as follows:

3(1) One hundred seventy-five days per year or 1,050 hours per
4year, except as provided in paragraphs (2), (3), (4), (5), and (6).
5Full time includes time for duties the employer requires to be
6performed as part of the full-time assignment for a particular class
7of employees.

8(2) One hundred ninety days per year or 1,520 hours per year
9for all program managers and for administrators, except as provided
10in paragraph (3).

11(3) Two hundred fifteen days per year or 1,720 hours per year
12including school and legal holidays pursuant to the policy adopted
13by the employer’s governing board for administrators at a district
14office.

15(4) One hundred seventy-five days per year or 1,050 hours per
16year for all counselors and librarians.

17(5) Five hundred twenty-five instructional hours per school year
18for all instructors employed on a part-time basis, except instructors
19specified in paragraph (6). If an instructor receives compensation
20for office hours pursuant to Article 10 (commencing with Section
2187880) of Chapter 3 of Part 51 of Division 7 of Title 3, the
22minimum standard shall be increased appropriately by the number
23of office hours required annually for the class of employees.

24(6) Eight hundred seventy-five instructional hours per school
25year for all instructors employed in adult education programs. If
26an instructor receives compensation for office hours pursuant to
27Article 10 (commencing with Section 87880) of Chapter 3 of Part
2851 of Division 7 of Title 3, the minimum standard shall be
29increased appropriately by the number of office hours required
30annually for the class of employees.

31(d) The board has final authority to determine full time for
32purposes of crediting service under this part if full time is not
33otherwise specified in this section.

34(e) This section shall become operative on July 1, 2013.

35

SEC. 32.  

Section 33195 of the Education Code is amended to
36read:

37

33195.  

(a) Every person, firm, association, partnership, or
38corporation operating a heritage school as defined in Section
3933195.4 shall, between the 1st and 31st day of January of each
40year, commencing on January 1, 2011, file with the Superintendent
P62   1an electronic registration form, under penalty of perjury, by the
2owner or other head setting forth the following information for the
3current year:

4(1) All names, whether real or fictitious, of the person, firm,
5association, partnership, or corporation under which it has done
6and is doing business.

7(2) The address, including city and street, of the location at
8which the heritage school delivers services to pupils.

9(3) The names and addresses, including city and street, of the
10directors, if any, and principal officers of the person, firm,
11association, partnership, or corporation.

12(4) The school enrollment, by grade span, number of teachers,
13and coeducational or enrollment limited to boys or girls.

14(5) That the following records are maintained at the address
15stated, and are true and accurate:

16(A) The courses of study offered by the institution.

17(B) The names and addresses, including city and street, of its
18faculty, together with a record of the educational qualifications of
19each faculty member.

20(6) Criminal record summary information that has been obtained
21pursuant to Section 44237.

22(7) The heritage school telephone number.

23(8) Acknowledgment that the director of the heritage school
24and all employees are mandated reporters and subject to the
25requirements established by the Child Abuse and Neglect Reporting
26Act (Article 2.5 (commencing with Section 11164) of Chapter 2
27of Title 1 of Part 4 of the Penal Code) and, consistent with that
28act, certification that:

29(A) The employer is aware that it is encouraged to provide its
30employees with training in the duties imposed by the act.

31(B) Employees have signed a statement provided by the
32employer that the employees have knowledge of the act and will
33comply with its provisions.

34(C) Employees have been notified by the employer of their
35reporting obligations and confidentiality rights, pursuant to Section
3611165.9 of the Penal Code.

37(b) If two or more heritage schools are under the effective
38control or supervision of a single administrative unit, the
39administrative unit shall comply with the provisions of this section
P63   1by submitting an electronic registration form on behalf of every
2heritage school under its effective control or supervision.

3(c) Filing pursuant to this section shall not be interpreted to
4mean, and it shall be unlawful for a school to expressly or impliedly
5represent, that the State of California, the Superintendent, the state
6board, the department or a division or bureau of the department,
7or an accrediting agency has made an evaluation, recognition,
8approval, or endorsement of the school or course, unless this is an
9actual fact.

10(d) Filing pursuant to this section does not grant a heritage
11school a right to receive state funding.

12

SEC. 33.  

Section 35583 of the Education Code is amended to
13read:

14

35583.  

For purposes of paragraph (1) of subdivision (a) of
15Section 35735.1, the blended revenue limit per unit of average
16daily attendance for the Wiseburn Unified School District shall be
17calculated as follows:

18(a) Multiply the Wiseburn School District revenue limit per unit
19of average daily attendance for the 2012-13 fiscal year by nine.

20(b) Multiply the Centinela Valley Union High School District
21revenue limit per unit of average daily attendance for the 2012-13
22fiscal year by four.

23(c) Add the products determined pursuant to subdivisions (a)
24and (b).

25(d) Divide the sum determined pursuant to subdivision (c) by
2613. This amount shall be the blended revenue limit per unit of
27average daily attendance for the Wiseburn Unified School District.

28

SEC. 34.  

Section 38000 of the Education Code is amended to
29read:

30

38000.  

(a) The governing board of a school district may
31establish a security department under the supervision of a chief of
32security as designated by, and under the direction of, the
33superintendent of the school district. In accordance with Chapter
345 (commencing with Section 45100) of Part 25, the governing
35board of a school district may employ personnel to ensure the
36safety of school district personnel and pupils and the security of
37the real and personal property of the school district. It is the intent
38of the Legislature in enacting this section that a school district
39security department is supplementary to city and county law
40enforcement agencies and is not vested with general police powers.

P64   1(b) The governing board of a school district may establish a
2school police department under the supervision of a school chief
3of police and, in accordance with Chapter 5 (commencing with
4Section 45100) of Part 25, may employ peace officers, as defined
5in subdivision (b) of Section 830.32 of the Penal Code, to ensure
6the safety of school district personnel and pupils, and the security
7of the real and personal property of the school district.

8(c) The governing board of a school district that establishes a
9security department or a police department shall set minimum
10qualifications of employment for the chief of security or school
11chief of police, respectively, including, but not limited to, prior
12employment as a peace officer or completion of a peace officer
13training course approved by the Commission on Peace Officer
14Standards and Training. A chief of security or school chief of
15police shall comply with the prior employment or training
16requirement set forth in this subdivision as of January 1, 1993, or
17a date one year subsequent to the initial employment of the chief
18of security or school chief of police by the school district,
19whichever occurs later. This subdivision shall not be construed to
20require the employment by a school district of additional personnel.

21(d) A school district may assign a school police reserve officer
22who is deputized pursuant to Section 35021.5 to a schoolsite to
23supplement the duties of school police officers pursuant to this
24section.

25

SEC. 35.  

Section 41320.1 of the Education Code is amended
26to read:

27

41320.1.  

Acceptance by the school district of the
28apportionments made pursuant to Section 41320 constitutes the
29agreement by the school district to all of the following conditions:

30(a) The Superintendent shall appoint a trustee who has
31recognized expertise in management and finance and may employ,
32on a short-term basis, staff necessary to assist the trustee, including,
33but not limited to, certified public accountants, as follows:

34(1) The expenses incurred by the trustee and necessary staff
35shall be borne by the school district.

36(2) The Superintendent shall establish the terms and conditions
37of the employment, including the remuneration of the trustee. The
38trustee shall serve at the pleasure of, and report directly to, the
39Superintendent.

P65   1(3) The trustee, and necessary staff, shall serve until the school
2district has adequate fiscal systems and controls in place, the
3Superintendent has determined that the school district’s future
4compliance with the fiscal plan approved for the school district
5under Section 41320 is probable, and the Superintendent decides
6to terminate the trustee’s appointment, but in no event, for less
7than three years. The Superintendent shall notify the county
8superintendent of schools, the Legislature, the Department of
9Finance, and the Controller no less than 60 days before the time
10that the Superintendent expects these conditions to be met.

11(4) Before the school district repays the loan, including interest,
12the recipient of the loan shall select an auditor from a list
13established by the Superintendent and the Controller to conduct
14an audit of its fiscal systems. If the fiscal systems are deemed to
15be inadequate, the Superintendent may retain the trustee until the
16deficiencies are corrected. The cost of this audit and any additional
17cost of the trustee shall be borne by the school district.

18(5) Notwithstanding any other law, all reports submitted to the
19trustee are public records.

20(6) To facilitate the appointment of the trustee and the
21employment of necessary staff, for purposes of this section, the
22Superintendent is exempt from the requirements of Article 6
23(commencing with Section 999) of Chapter 6 of Division 4 of the
24Military and Veterans Code and Part 2 (commencing with Section
2510100) of Division 2 of the Public Contract Code.

26(7) Notwithstanding any other law, the Superintendent may
27appoint an employee of the department to act as trustee for up to
28the duration of the trusteeship. The salary and benefits of that
29employee shall be established by the Superintendent and paid by
30the school district. During the time of appointment, the employee
31is an employee of the school district, but shall remain in the same
32retirement system under the same plan as if the employee had
33remained in the department. Upon the expiration or termination
34of the appointment, the employee shall have the right to return to
35his or her former position, or to a position at substantially the same
36level as that position, with the department. The time served in the
37appointment shall be counted for all purposes as if the employee
38had served that time in his or her former position with the
39department.

P66   1(b) (1) The trustee appointed by the Superintendent shall
2monitor and review the operation of the school district. During the
3period of his or her service, the trustee may stay or rescind an
4action of the governing board of the school district that, in the
5judgment of the trustee, may affect the financial condition of the
6school district.

7(2) After the trustee’s period of service, and until the loan is
8repaid, the county superintendent of schools that has jurisdiction
9over the school district may stay or rescind an action of the
10governing board of the school district that, in his or her judgment,
11may affect the financial condition of the school district. The county
12superintendent of schools shall notify the Superintendent, within
13five business days, if he or she stays or rescinds an action of the
14governing board of the school district. The notice shall include,
15but not be limited to, both of the following:

16(A) A description of the governing board of the school district’s
17intended action and its financial implications.

18(B) The rationale and findings that support the county
19superintendent of school’s decision to stay or rescind the action
20of the governing board of the school district.

21(3) If the Superintendent is notified by the county superintendent
22of schools pursuant to paragraph (2), the Superintendent shall
23report to the Legislature, on or before December 30 of every year,
24whether the school district is complying with the fiscal plan
25approved for the school district.

26(4) The Superintendent may establish timelines and prescribe
27formats for reports and other materials to be used by the trustee to
28monitor and review the operations of the school district. The trustee
29shall approve or reject all reports and other materials required from
30the school district as a condition of receiving the apportionment.
31The Superintendent, upon the recommendation of the trustee, may
32reduce an apportionment to the school district in an amount up to
33two hundred dollars ($200) per day for each late or unacceptable
34report or other material required under this part, and shall report
35to the Legislature a failure of the school district to comply with
36the requirements of this section. If the Superintendent determines,
37at any time, that the fiscal plan approved for the school district
38under Section 41320 is unsatisfactory, he or she may modify the
39plan as necessary, and the school district shall comply with the
40plan as modified.

P67   1(c) At the request of the Superintendent, the Controller shall
2transfer to the department, from an apportionment to which the
3school district would otherwise have been entitled pursuant to
4Section 42238, the amount necessary to pay the expenses incurred
5by the trustee and associated costs incurred by the county
6superintendent of schools.

7(d) For the fiscal year in which the apportionments are disbursed
8and every year thereafter, the Controller, or his or her designee,
9shall cause an audit to be conducted of the books and accounts of
10the school district, in lieu of the audit required by Section 41020.
11At the Controller’s discretion, the audit may be conducted by the
12Controller, his or her designee, or an auditor selected by the school
13district and approved by the Controller. The costs of these audits
14shall be borne by the school district. These audits shall be required
15until the Controller determines, in consultation with the
16Superintendent, that the school district is financially solvent, but
17in no event earlier than one year following the implementation of
18the plan or later than the time the apportionment made is repaid,
19including interest. In addition, the Controller shall conduct quality
20control reviews pursuant to subdivision (c) of Section 14504.2.

21(e) For purposes of errors and omissions liability insurance
22policies, the trustee appointed pursuant to this section is an
23employee of the local educational agency to which he or she is
24assigned. For purposes of workers’ compensation benefits, the
25trustee is an employee of the local educational agency to which
26he or she is assigned, except that a trustee appointed pursuant to
27paragraph (7) of subdivision (a) is an employee of the department
28for those purposes.

29(f) Except for an individual appointed by the Superintendent as
30trustee pursuant to paragraph (7) of subdivision (a), the
31state-appointed trustee is a member of the State Teachers’
32Retirement System, if qualified, for the period of service as trustee,
33unless the trustee elects in writing not to become a member. A
34person who is a member or retirant of the State Teachers’
35Retirement System at the time of appointment shall continue to
36be a member or retirant of the system for the duration of the
37appointment. If the trustee chooses to become a member or is
38already a member, the trustee shall be placed on the payroll of the
39school district for the purpose of providing appropriate
40contributions to the system. The Superintendent may also require
P68   1that an individual appointed as trustee pursuant to paragraph (7)
2of subdivision (a) be placed on the payroll of the school district
3for purposes of remuneration, other benefits, and payroll
4deductions. For purposes of workers’ compensation benefits, the
5state-appointed trustee is deemed an employee of the local
6educational agency to which he or she is assigned, except that a
7trustee who is appointed pursuant to paragraph (7) of subdivision
8(a) is an employee of the department for those purposes.

9

SEC. 36.  

Section 41326 of the Education Code is amended to
10read:

11

41326.  

(a) Notwithstanding any other provision of this code,
12the acceptance by a school district of an apportionment made
13pursuant to Section 41320 that exceeds an amount equal to 200
14percent of the amount of the reserve recommended for that school
15district under the standards and criteria adopted pursuant to Section
1633127 constitutes the agreement by the school district to the
17conditions set forth in this article. Before applying for an
18emergency apportionment in the amount identified in this
19subdivision, the governing board of a school district shall discuss
20the need for that apportionment at a regular or special meeting of
21the governing board of the school district and, at that meeting,
22shall receive testimony regarding the apportionment from parents,
23exclusive representatives of employees of the school district, and
24other members of the community. For purposes of this article,
25“qualifying school district” means a school district that accepts a
26loan as described in this subdivision.

27(b) The Superintendent shall assume all the legal rights, duties,
28and powers of the governing board of a qualifying school district.
29The Superintendent, in consultation with the county superintendent
30of schools, shall appoint an administrator to act on his or her behalf
31in exercising the authority described in this subdivision in
32accordance with all of the following:

33(1) The administrator shall serve under the direction and
34supervision of the Superintendent until terminated by the
35Superintendent at his or her discretion. The Superintendent shall
36consult with the county superintendent of schools before
37terminating the administrator.

38(2) The administrator shall have recognized expertise in
39management and finance.

P69   1(3) To facilitate the appointment of the administrator and the
2employment of necessary staff, for purposes of this section, the
3Superintendent is exempt from the requirements of Article 6
4(commencing with Section 999) of Chapter 6 of Division 4 of the
5Military and Veterans Code and Part 2 (commencing with Section
610100) of Division 2 of the Public Contract Code.

7(4) Notwithstanding any other law, the Superintendent may
8appoint an employee of the state or the office of the county
9superintendent of schools to act as administrator for up to the
10duration of the administratorship. During the tenure of his or her
11appointment, the administrator, if he or she is an employee of the
12state or the office of the county superintendent of schools, is an
13employee of the qualifying school district, but shall remain in the
14same retirement system under the same plan that has been provided
15by his or her employment with the state or the office of the county
16superintendent of schools. Upon the expiration or termination of
17the appointment, the employee shall have the right to return to his
18or her former position, or to a position at substantially the same
19level as that position, with the state or the office of the county
20superintendent of schools. The time served in the appointment
21shall be counted for all purposes as if the administrator had served
22that time in his or her former position with the state or the office
23of the county superintendent of schools.

24(5) Except for an individual appointed as an administrator by
25the Superintendent pursuant to paragraph (4), the administrator
26shall be a member of the State Teachers’ Retirement System, if
27qualified, for the period of service as administrator, unless he or
28she elects in writing not to become a member. A person who is a
29member or retirant of the State Teachers’ Retirement System at
30the time of appointment shall continue to be a member or retirant
31of the system for the duration of the appointment. If the
32administrator chooses to become a member or is already a member,
33the administrator shall be placed on the payroll of the qualifying
34school district for purposes of providing appropriate contributions
35to the system. The Superintendent may also require the
36administrator to be placed on the payroll of the qualifying school
37district for purposes of remuneration, other benefits, and payroll
38deductions.

39(6) For purposes of workers’ compensation benefits, the
40administrator is an employee of the qualifying school district,
P70   1except that an administrator appointed pursuant to paragraph (4)
2may be deemed an employee of the state or office of the county
3superintendent of schools, as applicable.

4(7) The qualifying school district shall add the administrator as
5a covered employee of the qualifying school district for all purposes
6of errors and omissions liability insurance policies.

7(8) The salary and benefits of the administrator shall be
8established by the Superintendent and paid by the qualifying school
9district.

10(9) The Superintendent or the administrator may employ, on a
11short-term basis and at the expense of the qualifying school district,
12any staff necessary to assist the administrator, including, but not
13limited to, a certified public accountant.

14(10) The administrator may do all of the following:

15(A) Implement substantial changes in the fiscal policies and
16practices of the qualifying school district, including, if necessary,
17the filing of a petition under Chapter 9 (commencing with Section
18901) of Title 11 of the United States Code for the adjustment of
19indebtedness.

20(B) Revise the educational program of the qualifying school
21district to reflect realistic income projections and pupil performance
22relative to state standards.

23(C) Encourage all members of the school community to accept
24a fair share of the burden of the fiscal recovery of the qualifying
25school district.

26(D) Consult, for the purposes described in this subdivision, with
27the governing board of the qualifying school district, the exclusive
28representatives of the employees of the qualifying school district,
29parents, and the community.

30(E) Consult with, and seek recommendations from, the
31Superintendent, the county superintendent of schools, and the
32County Office Fiscal Crisis and Management Assistance Team
33authorized pursuant to subdivision (c) of Section 42127.8 for
34purposes described in this article.

35(F) With the approval of the Superintendent, enter into
36agreements on behalf of the qualifying school district and, subject
37to any contractual obligation of the qualifying school district,
38change existing school district rules, regulations, policies, or
39practices as necessary for the effective implementation of the
40recovery plans referred to in Sections 41327 and 41327.1.

P71   1(c) (1) Except as provided for in paragraph (2), the period of
2time during which the Superintendent exercises the authority
3described in subdivision (b), the governing board of the qualifying
4school district shall serve as an advisory body reporting to the
5state-appointed administrator, and has no rights, duties, or powers,
6and is not entitled to any stipend, benefits, or other compensation
7from the qualifying school district.

8(2) (A) After one complete fiscal year has elapsed following
9the qualifying school district’s acceptance of an emergency
10apportionment, the governing board of the qualifying school district
11may conduct an annual advisory evaluation of an administrator
12for the duration of the administratorship.

13(B) An advisory evaluation of an administrator shall focus on
14the administrator’s effectiveness in leading the qualifying school
15district toward fiscal recovery and improved academic
16achievement. Advisory evaluation criteria shall be agreed upon
17by the governing board of the qualifying school district and the
18administrator before the advisory evaluation. The advisory
19evaluation shall include, but not be limited to, all of the following:

20(i) Goals and standards consistent with Section 41327.1.

21(ii) Commendations in the areas of the administrator’s strengths
22and achievements.

23(iii) Recommendations for improving the administrator’s
24effectiveness in areas of concern and unsatisfactory performance.

25(C) An advisory evaluation of an administrator conducted by
26the governing board of a qualifying school district shall be
27submitted to the Governor, the Legislature, the Superintendent,
28and the County Office Fiscal Crisis and Management Assistance
29Team.

30(3) Upon the appointment of an administrator pursuant to this
31section, the district superintendent is no longer an employee of the
32qualifying school district.

33(4) A determination of the severance compensation for the
34district superintendent shall be made pursuant to subdivision (j).

35(d) Notwithstanding Section 35031 or any other law, the
36administrator, after according the affected employee reasonable
37notice and the opportunity for a hearing, may terminate the
38employment of a deputy, associate, assistant superintendent, or
39other school district level administrator who is employed by a
40qualifying school district under a contract of employment signed
P72   1or renewed after January 1, 1992, if the employee fails to
2document, to the satisfaction of the administrator, that before the
3date of the acceptance of the emergency apportionment he or she
4either advised the governing board of the qualifying school district,
5or his or her superior, that actions contemplated or taken by the
6governing board of the qualifying school district could result in
7the fiscal insolvency of the qualifying school district, or took other
8appropriate action to avert that fiscal insolvency.

9(e) The authority of the Superintendent, and the administrator,
10under this section shall continue until all of the following occur:

11(1) (A) After one complete fiscal year has elapsed following
12the qualifying school district’s acceptance of an emergency
13apportionment as described in subdivision (a), the administrator
14determines, and so notifies the Superintendent and the county
15superintendent of schools, that future compliance by the qualifying
16school district with the recovery plans approved pursuant to
17paragraph (2) is probable.

18(B) The Superintendent may return power to the governing
19board of the qualifying school district for an area listed in
20subdivision (a) of Section 41327.1 if performance under the
21recovery plan for that area has been demonstrated to the satisfaction
22of the Superintendent.

23(2) The Superintendent has approved all of the recovery plans
24referred to in subdivision (a) of Section 41327 and the County
25Office Fiscal Crisis and Management Assistance Team completes
26the improvement plans specified in Section 41327.1 and has
27completed a minimum of two reports identifying the qualifying
28school district’s progress in implementing the improvement plans.

29(3) The administrator certifies that all necessary collective
30bargaining agreements have been negotiated and ratified, and that
31the agreements are consistent with the terms of the recovery plans.

32(4) The qualifying school district has completed all reports
33required by the Superintendent and the administrator.

34(5) The Superintendent determines that future compliance by
35the qualifying school district with the recovery plans approved
36pursuant to paragraph (2) is probable.

37(f) When the conditions stated in subdivision (e) have been met,
38and at least 60 days after the Superintendent has notified the
39Legislature, the Department of Finance, the Controller, and the
40county superintendent of schools that he or she expects the
P73   1conditions prescribed pursuant to this section to be met, the
2governing board of the qualifying school district shall regain all
3of its legal rights, duties, and powers, except for the powers held
4by the trustee provided for pursuant to Article 2 (commencing with
5Section 41320). The Superintendent shall appoint a trustee under
6Section 41320.1 to monitor and review the operations of the
7qualifying school district until the conditions of subdivision (b)
8of that section have been met.

9(g) Notwithstanding subdivision (f), if the qualifying school
10district violates a provision of the recovery plans approved by the
11Superintendent pursuant to this article within five years after the
12trustee appointed pursuant to Section 41320.1 is removed or after
13the emergency apportionment is repaid, whichever occurs later,
14or the improvement plans specified in Section 41327.1 during the
15period of the trustee’s appointment, the Superintendent may
16reassume, either directly or through an administrator appointed in
17accordance with this section, all of the legal rights, duties, and
18powers of the governing board of the qualifying school district.
19The Superintendent shall return to the governing board of the
20qualifying school district all of its legal rights, duties, and powers
21reassumed under this subdivision when he or she determines that
22future compliance with the approved recovery plans is probable,
23or after a period of one year, whichever occurs later.

24(h) Article 2 (commencing with Section 41320) shall apply
25except as otherwise specified in this article.

26(i) It is the intent of the Legislature that the legislative budget
27subcommittees annually conduct a review of each qualifying school
28district that includes an evaluation of the financial condition of the
29qualifying school district, the impact of the recovery plans upon
30the qualifying school district’s educational program, and the efforts
31made by the state-appointed administrator to obtain input from the
32community and the governing board of the qualifying school
33district.

34(j) (1) The district superintendent is entitled to a due process
35hearing for purposes of determining final compensation. The final
36compensation of the district superintendent shall be between zero
37and six times his or her monthly salary. The outcome of the due
38process hearing shall be reported to the Superintendent and the
39public. The information provided to the public shall explain the
40rationale for the compensation.

P74   1(2) This subdivision applies only to a contract for employment
2negotiated on or after June 21, 2004.

3(k) (1) When the Superintendent assumes control over a
4qualifying school district pursuant to subdivision (b), he or she
5shall, in consultation with the County Office Fiscal Crisis and
6Management Assistance Team, review the fiscal oversight of the
7qualifying school district by the county superintendent of schools.
8The Superintendent may consult with other fiscal experts, including
9other county superintendents of schools and regional fiscal teams,
10in conducting this review.

11(2) Within three months of assuming control over a qualifying
12school district, the Superintendent shall report his or her findings
13to the Legislature and shall provide a copy of that report to the
14Department of Finance. This report shall include findings as to
15fiscal oversight actions that were or were not taken and may include
16recommendations as to an appropriate legislative response to
17improve fiscal oversight.

18(3) If, after performing the duties described in paragraphs (1)
19and (2), the Superintendent determines that the county
20superintendent of schools failed to carry out his or her
21responsibilities for fiscal oversight as required by this code, the
22Superintendent may exercise the authority of the county
23superintendent of schools who has oversight responsibilities for a
24qualifying school district. If the Superintendent finds, based on
25the report required in paragraph (2), that the county superintendent
26of schools failed to appropriately take into account particular types
27of indicators of financial distress, or failed to take appropriate
28remedial actions in the qualifying school district, the
29Superintendent shall further investigate whether the county
30superintendent of schools failed to take into account those
31indicators, or similarly failed to take appropriate actions in other
32school districts with negative or qualified certifications, and shall
33provide an additional report on the fiscal oversight practices of the
34county superintendent of schools to the appropriate policy and
35fiscal committees of each house of the Legislature and the
36Department of Finance.

37

SEC. 37.  

Section 47660 of the Education Code is amended to
38read:

39

47660.  

(a) For purposes of computing eligibility for, and
40entitlements to, general purpose funding and operational funding
P75   1for categorical programs, the enrollment and average daily
2attendance of a sponsoring local educational agency shall exclude
3the enrollment and attendance of pupils in its charter schools
4funded pursuant to this chapter.

5(b) (1) Notwithstanding subdivision (a), and commencing with
6the 2005-06 fiscal year, for purposes of computing eligibility for,
7and entitlements to, revenue limit funding, the average daily
8attendance of a unified school district, other than a unified school
9district that has converted all of its schools to charter status
10pursuant to Section 47606, shall include all attendance of pupils
11who reside in the unified school district and who would otherwise
12have been eligible to attend a noncharter school of the school
13district, if the school district was a basic aid school district in the
14prior fiscal year, or if the pupils reside in the unified school district
15and attended a charter school of that school district that converted
16to charter status on or after July 1, 2005. Only the attendance of
17the pupils described by this paragraph shall be included in the
18calculation made pursuant to paragraph (7) of subdivision (h) of
19Section 42238.

20(2) Notwithstanding subdivision (a), for the 2005-06 fiscal year
21only, for purposes of computing eligibility for, and entitlements
22to, revenue limit funding, the average daily attendance of a unified
23school district, other than a unified school district that has
24converted all of its schools to charter status pursuant to Section
2547606 and is operating them as charter schools, shall include all
26attendance of pupils who reside in the unified school district and
27who would otherwise have been eligible to attend a noncharter
28school of the unified school district if the pupils attended a charter
29school operating in the unified school district prior to July 1, 2005.
30Only the attendance of pupils described by this paragraph shall be
31included in the calculation made pursuant to Section 42241.3. The
32attendance of the pupils described by this paragraph shall be
33included in the calculation made pursuant to paragraph (7) of
34subdivision (h) of Section 42238.

35(c) (1) For the attendance of pupils specified in subdivision (b),
36the general-purpose entitlement for a charter school that is
37established through the conversion of an existing public school
38within a unified school district on or after July 1, 2005, but before
39January 1, 2010, shall be determined using the following amount
40of general-purpose funding per unit of average daily attendance,
P76   1in lieu of the amount calculated pursuant to subdivision (a) of
2Section 47633:

3(A) The amount of the actual unrestricted revenues expended
4per unit of average daily attendance for that school in the year
5prior to its conversion to, and operation as, a charter school,
6adjusted for the base revenue limit per pupil inflation increase
7adjustment set forth in Section 42238.1, if this adjustment is
8provided, and also adjusted for equalization, deficit reduction, and
9other state general-purpose increases, if any, provided for the
10unified school district in the year of conversion to, and operation
11as a charter school.

12(B) For a subsequent fiscal year, the general-purpose entitlement
13shall be determined based on the amount per unit of average daily
14attendance allocated in the prior fiscal year adjusted for the base
15revenue limit per pupil inflation increase adjustment set forth in
16Section 42238.1, if this adjustment is provided, and also adjusted
17for equalization, deficit reduction, and other state general-purpose
18increases, if any, provided for the unified school district in that
19fiscal year.

20(2) This subdivision shall not apply to a charter school that is
21established through the conversion of an existing public school
22within a unified school district on or after January 1, 2010, which
23instead shall receive general-purpose funding pursuant to Section
2447633. This paragraph does not preclude a charter school or unified
25school district from agreeing to an alternative funding formula.

26(d) Commencing with the 2005-06 fiscal year, the
27general-purpose funding per unit of average daily attendance
28specified for a unified school district for purposes of paragraph
29(7) of subdivision (h) of Section 42238 for a school within the
30unified school district that converted to charter status on or after
31July 1, 2005, shall be deemed to be the amount computed pursuant
32to subdivision (c).

33(e) A unified school district that is the sponsoring local
34educational agency, as defined in subdivision (j) of Section 47632,
35of a charter school that is subject to paragraphs (1) and (2) of
36subdivision (c) shall certify to the Superintendent the amount
37specified in paragraph (1) of subdivision (c) prior to the approval
38of the charter petition by the governing board of the school district.
39This amount may be based on estimates of the unrestricted revenues
40expended in the fiscal year prior to the school’s conversion to
P77   1charter status and the school’s operation as a charter school,
2provided that the amount is recertified when the actual data
3becomes available.

4(f) For the purposes of this section, “basic aid school district”
5means a school district that does not receive from the state an
6 apportionment of state funds pursuant to subdivision (h) of Section
742238.

8(g) A school district may use the existing Standardized Account
9Code Structure and cost allocation methods, if appropriate, for an
10accounting of the actual unrestricted revenues expended in support
11of a school pursuant to subdivision (c).

12(h) For purposes of this section and Section 42241.3, “operating”
13means that pupils are attending and receiving instruction at the
14charter school.

15

SEC. 38.  

Section 48853 of the Education Code is amended to
16read:

17

48853.  

(a) A pupil described in subdivision (a) of Section
1848853.5 who is placed in a licensed children’s institution or foster
19family home shall attend programs operated by the local
20educational agency, unless one of the following applies:

21(1) The pupil is entitled to remain in his or her school of origin
22pursuant to paragraph (1) of subdivision (d) of Section 48853.5.

23(2) The pupil has an individualized education program requiring
24placement in a nonpublic, nonsectarian school or agency, or in
25another local educational agency.

26(3) The parent or guardian, or other person holding the right to
27make educational decisions for the pupil pursuant to Section 361
28or 726 of the Welfare and Institutions Code or Section 56055,
29determines that it is in the best interests of the pupil to be placed
30in another educational program, in which case the parent or
31guardian or other person holding the right to make educational
32decisions for the pupil shall provide a written statement that he or
33she has made that determination to the local educational agency.
34This statement shall include a declaration that the parent, guardian,
35or other person holding the right to make educational decisions
36for the pupil is aware of all of the following:

37(A) The pupil has a right to attend a regular public school in the
38least restrictive environment.

39(B) The alternate education program is a special education
40program, if applicable.

P78   1(C) The decision to unilaterally remove the pupil from the
2 regular public school and to place the pupil in an alternate
3education program may not be financed by the local educational
4agency.

5(D) Any attempt to seek reimbursement for the alternate
6education program may be at the expense of the parent, guardian,
7or other person holding the right to make educational decisions
8for the pupil.

9(b) For purposes of ensuring a parent, guardian, or other person
10holding the right to make educational decisions for the pupil is
11aware of the information described in subparagraphs (A) to (D),
12inclusive, of paragraph (3) of subdivision (a), the local educational
13agency may provide him or her with that information in writing.

14(c) Before any decision is made to place a pupil in a juvenile
15court school as defined by Section 48645.1, a community school
16as described in Sections 1981 and 48660, or other alternative
17educational setting, the parent or guardian, or person holding the
18right to make educational decisions for the pupil pursuant to
19Section 361 or 726 of the Welfare and Institutions Code or Section
2056055, shall first consider placement in the regular public school.

21(d) If any dispute arises as to the school placement of a pupil
22subject to this section, the pupil has the right to remain in his or
23her school of origin, as defined in subdivision (e) of Section
2448853.5, pending resolution of the dispute. The dispute shall be
25resolved in accordance with the existing dispute resolution process
26available to any pupil served by the local educational agency.

27(e) This section does not supersede other laws that govern pupil
28expulsion.

29(f) This section does not supersede any other law governing the
30educational placement in a juvenile court school, as defined by
31Section 48645.1, of a pupil detained in a county juvenile hall, or
32committed to a county juvenile ranch, camp, forestry camp, or
33regional facility.

34(g) Foster children living in emergency shelters, as referenced
35in the federal McKinney-Vento Homeless Assistance Act (42
36U.S.C. Sec. 11301 et seq.), may receive educational services at
37the emergency shelter as necessary for short periods of time for
38either of the following reasons:

39(1) For health and safety emergencies.

P79   1(2) To provide temporary, special, and supplementary services
2to meet the child’s unique needs if a decision regarding whether
3it is in the child’s best interests to attend the school of origin cannot
4be made promptly, it is not practical to transport the child to the
5school of origin, and the child would otherwise not receive
6educational services.

7The educational services may be provided at the shelter pending
8a determination by the person holding the right regarding the
9educational placement of the child.

10(h) All educational and school placement decisions shall be
11made to ensure that the child is placed in the least restrictive
12educational programs and has access to academic resources,
13services, and extracurricular and enrichment activities that are
14available to all pupils. In all instances, educational and school
15placement decisions shall be based on the best interests of the
16child.

17

SEC. 39.  

Section 48853.5 of the Education Code is amended
18to read:

19

48853.5.  

(a) This section applies to a foster child. “Foster
20child” means a child who has been removed from his or her home
21pursuant to Section 309 of the Welfare and Institutions Code, is
22the subject of a petition filed under Section 300 or 602 of the
23Welfare and Institutions Code, or has been removed from his or
24her home and is the subject of a petition filed under Section 300
25or 602 of the Welfare and Institutions Code.

26(b) Each local educational agency shall designate a staff person
27as the educational liaison for foster children. In a school district
28that operates a foster children services program pursuant to Chapter
2911.3 (commencing with Section 42920) of Part 24 of Division 3,
30the educational liaison shall be affiliated with the local foster
31children services program. The educational liaison shall do all of
32the following:

33(1) Ensure and facilitate the proper educational placement,
34enrollment in school, and checkout from school of foster children.

35(2) Assist foster children when transferring from one school to
36another school or from one school district to another school district
37in ensuring proper transfer of credits, records, and grades.

38(c) If so designated by the superintendent of the local educational
39agency, the educational liaison shall notify a foster child’s attorney
40and the appropriate representative of the county child welfare
P80   1agency of pending expulsion proceedings if the decision to
2recommend expulsion is a discretionary act, pending proceedings
3to extend a suspension until an expulsion decision is rendered if
4the decision to recommend expulsion is a discretionary act, and,
5if the foster child is an individual with exceptional needs, pending
6manifestation determinations pursuant to Section 1415(k) of Title
720 of the United States Code if the local educational agency has
8proposed a change in placement due to an act for which the
9decision to recommend expulsion is at the discretion of the
10principal or the district superintendent of schools.

11(d) This section does not grant authority to the educational
12liaison that supersedes the authority granted under state and federal
13law to a parent or legal guardian retaining educational rights, a
14responsible adult appointed by the court to represent the child
15pursuant to Section 361 or 726 of the Welfare and Institutions
16Code, a surrogate parent, or a foster parent exercising the authority
17granted under Section 56055. The role of the educational liaison
18is advisory with respect to placement decisions and determination
19of the school of origin.

20(e) (1) At the initial detention or placement, or any subsequent
21change in placement of a foster child, the local educational agency
22serving the foster child shall allow the foster child to continue his
23or her education in the school of origin for the duration of the
24jurisdiction of the court.

25(2) If the jurisdiction of the court is terminated before the end
26of an academic year, the local educational agency shall allow a
27former foster child who is in kindergarten or any of grades 1 to 8,
28inclusive, to continue his or her education in the school of origin
29through the duration of the academic school year.

30(3) (A) If the jurisdiction of the court is terminated while a
31foster child is in high school, the local educational agency shall
32allow the former foster child to continue his or her education in
33the school of origin through graduation.

34(B) For purposes of this paragraph, a school district is not
35required to provide transportation to a former foster child who has
36an individualized education program that does not require
37transportation as a related service and who changes residence but
38remains in his or her school of origin pursuant to this paragraph,
39unless the individualized education program team determines that
40transportation is a necessary related service.

P81   1(4) To ensure that the foster child has the benefit of matriculating
2with his or her peers in accordance with the established feeder
3patterns of school districts, if the foster child is transitioning
4between school grade levels, the local educational agency shall
5allow the foster child to continue in the school district of origin in
6the same attendance area, or, if the foster child is transitioning to
7a middle school or high school, and the school designated for
8matriculation is in another school district, to the school designated
9for matriculation in that school district.

10(5) Paragraphs (2), (3), and (4) do not require a school district
11to provide transportation services to allow a foster child to attend
12a school or school district, unless otherwise required under federal
13law. This paragraph does not prohibit a school district from, at its
14discretion, providing transportation services to allow a foster child
15to attend a school or school district.

16(6) The educational liaison, in consultation with, and with the
17agreement of, the foster child and the person holding the right to
18make educational decisions for the foster child, may recommend,
19in accordance with the foster child’s best interests, that the foster
20child’s right to attend the school of origin be waived and the foster
21child be enrolled in a public school that pupils living in the
22attendance area in which the foster child resides are eligible to
23attend.

24(7) Before making a recommendation to move a foster child
25from his or her school of origin, the educational liaison shall
26provide the foster child and the person holding the right to make
27educational decisions for the foster child with a written explanation
28stating the basis for the recommendation and how the
29recommendation serves the foster child’s best interest.

30(8) (A) If the educational liaison, in consultation with the foster
31child and the person holding the right to make educational decisions
32for the foster child, agrees that the best interests of the foster child
33would best be served by his or her transfer to a school other than
34the school of origin, the foster child shall immediately be enrolled
35in the new school.

36(B) The new school shall immediately enroll the foster child
37even if the foster child has outstanding fees, fines, textbooks, or
38other items or moneys due to the school last attended or is unable
39to produce clothing or records normally required for enrollment,
40such as previous academic records, medical records, including,
P82   1but not limited to, records or other proof of immunization history
2pursuant to Chapter 1 (commencing with Section 120325) of Part
32 of Division 105 of the Health and Safety Code, proof of
4residency, other documentation, or school uniforms.

5(C) Within two business days of the foster child’s request for
6enrollment, the educational liaison for the new school shall contact
7the school last attended by the foster child to obtain all academic
8and other records. The last school attended by the foster child shall
9provide all required records to the new school regardless of any
10outstanding fees, fines, textbooks, or other items or moneys owed
11to the school last attended. The educational liaison for the school
12last attended shall provide all records to the new school within two
13business days of receiving the request.

14(9) If a dispute arises regarding the request of a foster child to
15remain in the school of origin, the foster child has the right to
16remain in the school of origin pending resolution of the dispute.
17The dispute shall be resolved in accordance with the existing
18dispute resolution process available to a pupil served by the local
19educational agency.

20(10) The local educational agency and the county placing agency
21are encouraged to collaborate to ensure maximum use of available
22federal moneys, explore public-private partnerships, and access
23any other funding sources to promote the well-being of foster
24children through educational stability.

25(11) It is the intent of the Legislature that this subdivision shall
26not supersede or exceed other laws governing special education
27services for eligible foster children.

28(f) For purposes of this section, “school of origin” means the
29school that the foster child attended when permanently housed or
30the school in which the foster child was last enrolled. If the school
31the foster child attended when permanently housed is different
32from the school in which the foster child was last enrolled, or if
33there is some other school that the foster child attended with which
34the foster child is connected and that the foster child attended
35within the immediately preceding 15 months, the educational
36liaison, in consultation with, and with the agreement of, the foster
37child and the person holding the right to make educational decisions
38for the foster child, shall determine, in the best interests of the
39foster child, the school that shall be deemed the school of origin.

P83   1(g) This section does not supersede other law governing the
2educational placements in juvenile court schools, as described in
3Section 48645.1, by the juvenile court under Section 602 of the
4Welfare and Institutions Code.

5

SEC. 40.  

Section 48900 of the Education Code is amended to
6read:

7

48900.  

A pupil shall not be suspended from school or
8recommended for expulsion, unless the superintendent of the school
9district or the principal of the school in which the pupil is enrolled
10determines that the pupil has committed an act as defined pursuant
11to any of subdivisions (a) to (r), inclusive:

12(a) (1) Caused, attempted to cause, or threatened to cause
13physical injury to another person.

14(2) Willfully used force or violence upon the person of another,
15except in self-defense.

16(b) Possessed, sold, or otherwise furnished a firearm, knife,
17explosive, or other dangerous object, unless, in the case of
18possession of an object of this type, the pupil had obtained written
19permission to possess the item from a certificated school employee,
20which is concurred in by the principal or the designee of the
21principal.

22(c) Unlawfully possessed, used, sold, or otherwise furnished,
23or been under the influence of, a controlled substance listed in
24Chapter 2 (commencing with Section 11053) of Division 10 of the
25Health and Safety Code, an alcoholic beverage, or an intoxicant
26of any kind.

27(d) Unlawfully offered, arranged, or negotiated to sell a
28controlled substance listed in Chapter 2 (commencing with Section
2911053) of Division 10 of the Health and Safety Code, an alcoholic
30beverage, or an intoxicant of any kind, and either sold, delivered,
31or otherwise furnished to a person another liquid, substance, or
32material and represented the liquid, substance, or material as a
33controlled substance, alcoholic beverage, or intoxicant.

34(e) Committed or attempted to commit robbery or extortion.

35(f) Caused or attempted to cause damage to school property or
36private property.

37(g) Stole or attempted to steal school property or private
38property.

39(h) Possessed or used tobacco, or products containing tobacco
40or nicotine products, including, but not limited to, cigarettes, cigars,
P84   1miniature cigars, clove cigarettes, smokeless tobacco, snuff, chew
2packets, and betel. However, this section does not prohibit use or
3possession by a pupil of his or her own prescription products.

4(i) Committed an obscene act or engaged in habitual profanity
5or vulgarity.

6(j) Unlawfully possessed or unlawfully offered, arranged, or
7negotiated to sell drug paraphernalia, as defined in Section 11014.5
8of the Health and Safety Code.

9(k) Disrupted school activities or otherwise willfully defied the
10valid authority of supervisors, teachers, administrators, school
11officials, or other school personnel engaged in the performance of
12their duties.

13(l) Knowingly received stolen school property or private
14property.

15(m) Possessed an imitation firearm. As used in this section,
16“imitation firearm” means a replica of a firearm that is so
17substantially similar in physical properties to an existing firearm
18as to lead a reasonable person to conclude that the replica is a
19firearm.

20(n) Committed or attempted to commit a sexual assault as
21defined in Section 261, 266c, 286, 288, 288a, or 289 of the Penal
22Code or committed a sexual battery as defined in Section 243.4
23of the Penal Code.

24(o) Harassed, threatened, or intimidated a pupil who is a
25complaining witness or a witness in a school disciplinary
26proceeding for purposes of either preventing that pupil from being
27a witness or retaliating against that pupil for being a witness, or
28both.

29(p) Unlawfully offered, arranged to sell, negotiated to sell, or
30sold the prescription drug Soma.

31(q) Engaged in, or attempted to engage in, hazing. For purposes
32of this subdivision, “hazing” means a method of initiation or
33preinitiation into a pupil organization or body, whether or not the
34pupil organization or body is officially recognized by an
35educational institution, which is likely to cause serious bodily
36injury or personal degradation or disgrace resulting in physical or
37mental harm to a former, current, or prospective pupil. For purposes
38of this subdivision, “hazing” does not include athletic events or
39school-sanctioned events.

P85   1(r) Engaged in an act of bullying. For purposes of this
2subdivision, the following terms have the following meanings:

3(1)  “Bullying” means any severe or pervasive physical or verbal
4act or conduct, including communications made in writing or by
5means of an electronic act, and including one or more acts
6committed by a pupil or group of pupils as defined in Section
748900.2, 48900.3, or 48900.4, directed toward one or more pupils
8that have or can be reasonably predicted to have the effect of one
9or more of the following:

10(A) Placing a reasonable pupil or pupils in fear of harm to that
11pupil’s or those pupils’ person or property.

12(B) Causing a reasonable pupil to experience a substantially
13detrimental effect on his or her physical or mental health.

14(C) Causing a reasonable pupil to experience substantial
15interference with his or her academic performance.

16(D) Causing a reasonable pupil to experience substantial
17interference with his or her ability to participate in or benefit from
18the services, activities, or privileges provided by a school.

19(2) (A) “Electronic act” means the transmission, by means of
20an electronic device, including, but not limited to, a telephone,
21wireless telephone, or other wireless communication device,
22computer, or pager, of a communication, including, but not limited
23to, any of the following:

24(i) A message, text, sound, or image.

25(ii) A post on a social network Internet Web site, including, but
26not limited to:

27(I) Posting to or creating a burn page. “Burn page” means an
28Internet Web site created for the purpose of having one or more
29of the effects listed in paragraph (1).

30(II) Creating a credible impersonation of another actual pupil
31for the purpose of having one or more of the effects listed in
32paragraph (1). “Credible impersonation” means to knowingly and
33without consent impersonate a pupil for the purpose of bullying
34the pupil and such that another pupil would reasonably believe, or
35has reasonably believed, that the pupil was or is the pupil who was
36impersonated.

37(III) Creating a false profile for the purpose of having one or
38more of the effects listed in paragraph (1). “False profile” means
39a profile of a fictitious pupil or a profile using the likeness or
P86   1attributes of an actual pupil other than the pupil who created the
2false profile.

3(B) Notwithstanding paragraph (1) and subparagraph (A), an
4electronic act shall not constitute pervasive conduct solely on the
5basis that it has been transmitted on the Internet or is currently
6posted on the Internet.

7(3) “Reasonable pupil” means a pupil, including, but not limited
8to, an exceptional needs pupil, who exercises average care, skill,
9and judgment in conduct for a person of his or her age, or for a
10person of his or her age with his or her exceptional needs.

11(s) A pupil shall not be suspended or expelled for any of the
12acts enumerated in this section unless the act is related to a school
13activity or school attendance occurring within a school under the
14jurisdiction of the superintendent of the school district or principal
15or occurring within any other school district. A pupil may be
16suspended or expelled for acts that are enumerated in this section
17and related to a school activity or school attendance that occur at
18any time, including, but not limited to, any of the following:

19(1) While on school grounds.

20(2) While going to or coming from school.

21(3) During the lunch period whether on or off the campus.

22(4) During, or while going to or coming from, a
23school-sponsored activity.

24(t) A pupil who aids or abets, as defined in Section 31 of the
25Penal Code, the infliction or attempted infliction of physical injury
26to another person may be subject to suspension, but not expulsion,
27pursuant to this section, except that a pupil who has been adjudged
28by a juvenile court to have committed, as an aider and abettor, a
29crime of physical violence in which the victim suffered great bodily
30injury or serious bodily injury shall be subject to discipline pursuant
31to subdivision (a).

32(u) As used in this section, “school property” includes, but is
33not limited to, electronic files and databases.

34(v) For a pupil subject to discipline under this section, a
35superintendent of the school district or principal may use his or
36her discretion to provide alternatives to suspension or expulsion
37that are age appropriate and designed to address and correct the
38pupil’s specific misbehavior as specified in Section 48900.5.

P87   1(w) It is the intent of the Legislature that alternatives to
2suspension or expulsion be imposed against a pupil who is truant,
3tardy, or otherwise absent from school activities.

4

SEC. 41.  

Section 48902 of the Education Code is amended to
5read:

6

48902.  

(a) The principal of a school or the principal’s designee
7shall, before the suspension or expulsion of any pupil, notify the
8appropriate law enforcement authorities of the county or city in
9which the school is situated, of any acts of the pupil that may
10violate Section 245 of the Penal Code.

11(b) The principal of a school or the principal’s designee shall,
12within one schoolday after suspension or expulsion of any pupil,
13notify, by telephone or any other appropriate method chosen by
14the school, the appropriate law enforcement authorities of the
15county or the school district in which the school is situated of any
16acts of the pupil that may violate subdivision (c) or (d) of Section
1748900.

18(c) Notwithstanding subdivision (b), the principal of a school
19or the principal’s designee shall notify the appropriate law
20enforcement authorities of the county or city in which the school
21is located of any acts of a pupil that may involve the possession
22or sale of narcotics or of a controlled substance or a violation of
23Section 626.9 or 626.10 of the Penal Code. The principal of a
24school or the principal’s designee shall report any act specified in
25paragraph (1) or (5) of subdivision (c) of Section 48915 committed
26by a pupil or nonpupil on a schoolsite to the city police or county
27sheriff with jurisdiction over the school and the school security
28department or the school police department, as applicable.

29(d) A principal, the principal’s designee, or any other person
30reporting a known or suspected act described in subdivision (a) or
31(b) is not civilly or criminally liable as a result of making any
32report authorized by this article unless it can be proven that a false
33report was made and that the person knew the report was false or
34the report was made with reckless disregard for the truth or falsity
35of the report.

36(e) The principal of a school or the principal’s designee reporting
37a criminal act committed by a schoolage individual with
38exceptional needs, as defined in Section 56026, shall ensure that
39copies of the special education and disciplinary records of the pupil
40are transmitted, as described in Section 1415(k)(6) of Title 20 of
P88   1the United States Code, for consideration by the appropriate
2authorities to whom he or she reports the criminal act. Any copies
3of the pupil’s special education and disciplinary records may be
4transmitted only to the extent permissible under the federal Family
5Educational Rights and Privacy Act of 1974 (20 U.S.C. Sec. 1232g
6et seq.).

7

SEC. 42.  

Section 48911 of the Education Code is amended to
8read:

9

48911.  

(a) The principal of the school, the principal’s designee,
10or the district superintendent of schools may suspend a pupil from
11the school for any of the reasons enumerated in Section 48900,
12and pursuant to Section 48900.5, for no more than five consecutive
13schooldays.

14(b) Suspension by the principal, the principal’s designee, or the
15district superintendent of schools shall be preceded by an informal
16conference conducted by the principal, the principal’s designee,
17or the district superintendent of schools between the pupil and,
18whenever practicable, the teacher, supervisor, or school employee
19who referred the pupil to the principal, the principal’s designee,
20or the district superintendent of schools. At the conference, the
21pupil shall be informed of the reason for the disciplinary action
22and the evidence against him or her, and shall be given the
23opportunity to present his or her version and evidence in his or her
24defense.

25(c) A principal, the principal’s designee, or the district
26superintendent of schools may suspend a pupil without affording
27the pupil an opportunity for a conference only if the principal, the
28principal’s designee, or the district superintendent of schools
29determines that an emergency situation exists. “Emergency
30situation,” as used in this article, means a situation determined by
31the principal, the principal’s designee, or the district superintendent
32of schools to constitute a clear and present danger to the life, safety,
33or health of pupils or school personnel. If a pupil is suspended
34without a conference before suspension, both the parent and the
35pupil shall be notified of the pupil’s right to a conference and the
36pupil’s right to return to school for the purpose of a conference.
37The conference shall be held within two schooldays, unless the
38pupil waives this right or is physically unable to attend for any
39reason, including, but not limited to, incarceration or
P89   1hospitalization. The conference shall then be held as soon as the
2pupil is physically able to return to school for the conference.

3(d) At the time of suspension, a school employee shall make a
4reasonable effort to contact the pupil’s parent or guardian in person
5or by telephone. If a pupil is suspended from school, the parent or
6guardian shall be notified in writing of the suspension.

7(e) A school employee shall report the suspension of the pupil,
8including the cause for the suspension, to the governing board of
9the school district or to the district superintendent of schools in
10accordance with the regulations of the governing board of the
11school district.

12(f) The parent or guardian of a pupil shall respond without delay
13to a request from school officials to attend a conference regarding
14his or her child’s behavior.

15No penalties shall be imposed on a pupil for failure of the pupil’s
16parent or guardian to attend a conference with school officials.
17Reinstatement of the suspended pupil shall not be contingent upon
18attendance by the pupil’s parent or guardian at the conference.

19(g) In a case where expulsion from a school or suspension for
20the balance of the semester from continuation school is being
21processed by the governing board of the school district, the district
22superintendent of schools or other person designated by the district
23superintendent of schools in writing may extend the suspension
24until the governing board of the school district has rendered a
25decision in the action. However, an extension may be granted only
26if the district superintendent of schools or the district
27superintendent’s designee has determined, following a meeting in
28which the pupil and the pupil’s parent or guardian are invited to
29participate, that the presence of the pupil at the school or in an
30alternative school placement would cause a danger to persons or
31property or a threat of disrupting the instructional process. If the
32pupil is a foster child, as defined in Section 48853.5, the district
33superintendent of schools or the district superintendent’s designee,
34including, but not limited to, the educational liaison for the school
35district, shall also invite the pupil’s attorney and an appropriate
36representative of the county child welfare agency to participate in
37the meeting. If the pupil or the pupil’s parent or guardian has
38requested a meeting to challenge the original suspension pursuant
39to Section 48914, the purpose of the meeting shall be to decide
40upon the extension of the suspension order under this section and
P90   1 may be held in conjunction with the initial meeting on the merits
2of the suspension.

3(h) For purposes of this section, a “principal’s designee” is one
4or more administrators at the schoolsite specifically designated by
5the principal, in writing, to assist with disciplinary procedures.

6In the event that there is not an administrator in addition to the
7principal at the schoolsite, a certificated person at the schoolsite
8may be specifically designated by the principal, in writing, as a
9“principal’s designee,” to assist with disciplinary procedures. The
10principal may designate only one person at a time as the principal’s
11primary designee for the school year.

12An additional person meeting the requirements of this
13subdivision may be designated by the principal, in writing, to act
14for purposes of this article when both the principal and the
15principal’s primary designee are absent from the schoolsite. The
16name of the person, and the names of any person or persons
17designated as “principal’s designee,” shall be on file in the
18principal’s office.

19This section is not an exception to, nor does it place any
20limitation on, Section 48903.

21

SEC. 43.  

Section 49076 of the Education Code is amended to
22read:

23

49076.  

(a) A school district shall not permit access to pupil
24records to a person without written parental consent or under
25judicial order except as set forth in this section and as permitted
26by Part 99 (commencing with Section 99.1) of Title 34 of the Code
27of Federal Regulations.

28(1) Access to those particular records relevant to the legitimate
29educational interests of the requester shall be permitted to the
30following:

31(A) School officials and employees of the school district,
32members of a school attendance review board appointed pursuant
33to Section 48321 who are authorized representatives of the school
34district, and any volunteer aide, 18 years of age or older, who has
35been investigated, selected, and trained by a school attendance
36review board for the purpose of providing followup services to
37pupils referred to the school attendance review board, provided
38that the person has a legitimate educational interest to inspect a
39record.

P91   1(B) Officials and employees of other public schools or school
2systems, including local, county, or state correctional facilities
3where educational programs leading to high school graduation are
4provided or where the pupil intends to or is directed to enroll,
5subject to the rights of parents as provided in Section 49068.

6(C) Authorized representatives of the Comptroller General of
7the United States, the Secretary of Education, and state and local
8educational authorities, or the United States Department of
9Education’s Office for Civil Rights, if the information is necessary
10to audit or evaluate a state or federally supported education
11program, or in connection with the enforcement of, or compliance
12with, the federal legal requirements that relate to such a program.
13Records released pursuant to this subparagraph shall comply with
14the requirements of Section 99.35 of Title 34 of the Code of Federal
15Regulations.

16(D) Other state and local officials to the extent that information
17is specifically required to be reported pursuant to state law adopted
18before November 19, 1974.

19(E) Parents of a pupil 18 years of age or older who is a
20dependent as defined in Section 152 of Title 26 of the United States
21Code.

22(F) A pupil 16 years of age or older or having completed the
2310th grade who requests access.

24(G) A district attorney who is participating in or conducting a
25truancy mediation program pursuant to Section 48263.5, or Section
26601.3 of the Welfare and Institutions Code, or participating in the
27presentation of evidence in a truancy petition pursuant to Section
28681 of the Welfare and Institutions Code.

29(H) A district attorney’s office for consideration against a parent
30or guardian for failure to comply with the Compulsory Education
31Law (Chapter 2 (commencing with Section 48200)) or with
32Compulsory Continuation Education (Chapter 3 (commencing
33with Section 48400)).

34(I) (i) A probation officer, district attorney, or counsel of record
35for a minor for purposes of conducting a criminal investigation or
36an investigation in regards to declaring a person a ward of the court
37or involving a violation of a condition of probation.

38(ii) For purposes of this subparagraph, a probation officer,
39district attorney, and counsel of record for a minor shall be deemed
P92   1to be local officials for purposes of Section 99.31(a)(5)(i) of Title
234 of the Code of Federal Regulations.

3(iii) Pupil records obtained pursuant to this subparagraph shall
4be subject to the evidentiary rules described in Section 701 of the
5Welfare and Institutions Code.

6(J) A judge or probation officer for the purpose of conducting
7a truancy mediation program for a pupil, or for purposes of
8presenting evidence in a truancy petition pursuant to Section 681
9of the Welfare and Institutions Code. The judge or probation officer
10shall certify in writing to the school district that the information
11will be used only for truancy purposes. A school district releasing
12pupil information to a judge or probation officer pursuant to this
13subparagraph shall inform, or provide written notification to, the
14parent or guardian of the pupil within 24 hours of the release of
15the information.

16(K) A county placing agency when acting as an authorized
17representative of a state or local educational agency pursuant to
18subparagraph (C). School districts, county offices of education,
19and county placing agencies may develop cooperative agreements
20to facilitate confidential access to and exchange of the pupil
21information by email, facsimile, electronic format, or other secure
22means, provided the agreement complies with the requirements
23set forth in Section 99.35 of Title 34 of the Code of Federal
24Regulations.

25(2) School districts may release information from pupil records
26to the following:

27(A) Appropriate persons in connection with an emergency if
28the knowledge of the information is necessary to protect the health
29or safety of a pupil or other persons. Schools or school districts
30releasing information pursuant to this subparagraph shall comply
31with the requirements set forth in Section 99.31(a)(5) of Title 34
32of the Code of Federal Regulations.

33(B) Agencies or organizations in connection with the application
34of a pupil for, or receipt of, financial aid. However, information
35permitting the personal identification of a pupil or his or her parents
36may be disclosed only as may be necessary for purposes as to
37determine the eligibility of the pupil for financial aid, to determine
38the amount of the financial aid, to determine the conditions which
39will be imposed regarding the financial aid, or to enforce the terms
40or conditions of the financial aid.

P93   1(C) Pursuant to Section 99.37 of Title 34 of the Code of Federal
2Regulations, a county elections official, for the purpose of
3identifying pupils eligible to register to vote, or for conducting
4programs to offer pupils an opportunity to register to vote. The
5information shall not be used for any other purpose or given or
6transferred to any other person or agency.

7(D) Accrediting associations in order to carry out their
8accrediting functions.

9(E) Organizations conducting studies for, or on behalf of,
10educational agencies or institutions for the purpose of developing,
11validating, or administering predictive tests, administering student
12aid programs, and improving instruction, if the studies are
13conducted in a manner that will not permit the personal
14identification of pupils or their parents by persons other than
15representatives of the organizations, the information will be
16destroyed when no longer needed for the purpose for which it is
17obtained, and the organization enters into a written agreement with
18the educational agency or institution that complies with Section
1999.31(a)(6) of Title 34 of the Code of Federal Regulations.

20(F) Officials and employees of private schools or school systems
21where the pupil is enrolled or intends to enroll, subject to the rights
22of parents as provided in Section 49068 and in compliance with
23the requirements in Section 99.34 of Title 34 of the Code of Federal
24Regulations. This information shall be in addition to the pupil’s
25permanent record transferred pursuant to Section 49068.

26(G) (i) A contractor or consultant with a legitimate educational
27interest who has a formal written agreement or contract with the
28school district regarding the provision of outsourced institutional
29services or functions by the contractor or consultant.

30(ii) Notwithstanding Section 99.31(a)(1)(i)(B) of Title 34 of the
31Code of Federal Regulations, a disclosure pursuant to this
32subparagraph shall not be permitted to a volunteer or other party.

33(3) A person, persons, agency, or organization permitted access
34to pupil records pursuant to this section shall not permit access to
35any information obtained from those records by another person,
36persons, agency, or organization, except for allowable exceptions
37contained within the federal Family Educational Rights and Privacy
38Act of 2001 (20 U.S.C. Sec. 1232g) and state law, without the
39written consent of the pupil’s parent. This paragraph does not
40require prior parental consent when information obtained pursuant
P94   1to this section is shared with other persons within the educational
2institution, agency, or organization obtaining access, so long as
3those persons have a legitimate educational interest in the
4information pursuant to Section 99.31(a)(1) of Title 34 of the Code
5of Federal Regulations.

6(4) Notwithstanding any other provision of law, a school district,
7including a county office of education or county superintendent
8of schools, may participate in an interagency data information
9system that permits access to a computerized database system
10within and between governmental agencies or school districts as
11to information or records that are nonprivileged, and where release
12is authorized as to the requesting agency under state or federal law
13or regulation, if each of the following requirements are met:

14(A) Each agency and school district shall develop security
15procedures or devices by which unauthorized personnel cannot
16access data contained in the system.

17(B) Each agency and school district shall develop procedures
18or devices to secure privileged or confidential data from
19unauthorized disclosure.

20(C) Each school district shall comply with the access log
21requirements of Section 49064.

22(D) The right of access granted shall not include the right to
23add, delete, or alter data without the written permission of the
24agency holding the data.

25(E) An agency or school district shall not make public or
26otherwise release information on an individual contained in the
27database if the information is protected from disclosure or release
28as to the requesting agency by state or federal law or regulation.

29(b) The officials and authorities to whom pupil records are
30disclosed pursuant to subdivision (e) of Section 48902 and
31subparagraph (I) of paragraph (1) of subdivision (a) shall certify
32in writing to the disclosing school district that the information
33shall not be disclosed to another party, except as provided under
34the federal Family Educational Rights and Privacy Act of 2001
35(20 U.S.C. Sec. 1232g) and state law, without the prior written
36consent of the parent of the pupil or the person identified as the
37holder of the pupil’s educational rights.

38(c) (1) Any person or party who is not permitted access to pupil
39records pursuant to subdivision (a) or (b) may request access to
40pupil records as provided for in paragraph (2).

P95   1(2) A local educational agency or other person or party who has
2received pupil records, or information from pupil records, may
3release the records or information to a person or party identified
4in paragraph (1) without the consent of the pupil’s parent or
5guardian pursuant to Section 99.31(b) of Title 34 of the Code of
6Federal Regulations, if the records or information are deidentified,
7which requires the removal of all personally identifiable
8 information, provided that the disclosing local educational agency
9or other person or party has made a reasonable determination that
10a pupil’s identity is not personally identifiable, whether through
11single or multiple releases, and has taken into account other
12pertinent reasonably available information.

13

SEC. 44.  

Section 49548 of the Education Code is amended to
14read:

15

49548.  

(a) The state board, in order to effect compliance with
16legislative findings expressed in Section 49547, shall restrict the
17criteria for the issuance of waivers from the requirements of Section
1849550 to feed children during a summer school session. A waiver
19shall be granted for a period not to exceed one year if either of the
20following conditions exists:

21(1) (A) A summer school session serving pupils enrolled in
22elementary school, as defined in clause (iii), shall be granted a
23waiver if a Summer Food Service Program for Children site is
24available within one-half mile of the schoolsite and either of the
25following conditions exists:

26(i) The hours of operation of the Summer Food Service Program
27for Children site commence no later than one-half hour after the
28completion of the summer school session day.

29(ii) The hours of operation of the Summer Food Service Program
30for Children site conclude no earlier than one hour after the
31completion of the summer school session day.

32(iii) For purposes of this subdivision, “elementary school” means
33a public school that maintains kindergarten or any of grades 1 to
348, inclusive.

35(B) A summer school session serving pupils enrolled in middle
36school, junior high school, or high school shall be granted a waiver
37if a Summer Food Service Program for Children site is available
38within one mile of the schoolsite and either of the following
39conditions exists:

P96   1(i) The hours of operation of the Summer Food Service Program
2for Children site commence no later than one-half hour after the
3completion of the summer school session day.

4(ii) The hours of operation of the Summer Food Service Program
5for Children site conclude no earlier than one hour after the
6completion of the summer school session day.

7(2) (A) Serving meals during the summer school session would
8result in a financial loss to the school district, documented in a
9financial analysis performed by the school district, in an amount
10equal to one-third of net cash resources, as defined in Section 210.2
11of Part 210 of Title 7 of the Code of Federal Regulations, which,
12for purposes of this article, shall exclude funds that are
13encumbered. If there are no net cash resources, an amount equal
14to the operating costs of one month as averaged over the summer
15school sessions.

16(B) The financial analysis required by subparagraph (A) shall
17include a projection of future meal program participation based
18on either of the following:

19(i) Commencement of a meal service period after the
20commencement of the summer school session day and conclusion
21of a meal service period before the completion of the summer
22school session day.

23(ii) Operation of a schoolsite as an open Summer Seamless
24Option or a Summer Food Service Program for Children site, and
25providing adequate notification thereof, including flyers and
26banners, in order to fulfill community needs under the Summer
27Food Service Program for Children (7 C.F.R. 225.14(d)(3)).

28(3) The entire summer school day is two hours or less in
29duration.

30(b) The state board and the Superintendent shall provide
31leadership to encourage and support schools and public agencies
32to participate in the Summer Food Service Program for Children,
33consistent with the intent of Section 49504.

34(c) An application for a waiver shall be submitted no later than
3560 days before the last regular meeting of the state board before
36the commencement of the summer school session for which the
37waiver is sought.

38

SEC. 45.  

Section 52052 of the Education Code is amended to
39read:

P97   1

52052.  

(a) (1) The Superintendent, with approval of the state
2board, shall develop an Academic Performance Index (API) to
3measure the performance of schools, especially the academic
4performance of pupils.

5(2) A school shall demonstrate comparable improvement in
6academic achievement as measured by the API by all numerically
7significant pupil subgroups at the school, including:

8(A) Ethnic subgroups.

9(B) Socioeconomically disadvantaged pupils.

10(C) English learners.

11(D) Pupils with disabilities.

12(3) (A) For purposes of this section, a numerically significant
13pupil subgroup is one that meets both of the following criteria:

14(i) The subgroup consists of at least 50 pupils, each of whom
15has a valid test score.

16(ii) The subgroup constitutes at least 15 percent of the total
17population of pupils at a school who have valid test scores.

18(B) If a subgroup does not constitute 15 percent of the total
19population of pupils at a school who have valid test scores, the
20subgroup may constitute a numerically significant pupil subgroup
21if it has at least 100 valid test scores.

22(C) For a school with an API score that is based on no fewer
23than 11 and no more than 99 pupils with valid test scores,
24numerically significant pupil subgroups shall be defined by the
25Superintendent, with approval by the state board.

26(4) (A) The API shall consist of a variety of indicators currently
27reported to the department, including, but not limited to, the results
28of the achievement test administered pursuant to Section 60640,
29attendance rates for pupils in elementary schools, middle schools,
30and secondary schools, and the graduation rates for pupils in
31secondary schools.

32(B) The Superintendent, with the approval of the state board,
33may also incorporate into the API the rates at which pupils
34successfully promote from one grade to the next in middle school
35and high school, and successfully matriculate from middle school
36to high school.

37(C) Graduation rates for pupils in secondary schools shall be
38 calculated for the API as follows:

39(i) Four-year graduation rates shall be calculated by taking the
40number of pupils who graduated on time for the current school
P98   1year, which is considered to be three school years after the pupils
2entered grade 9 for the first time, and dividing that number by the
3total calculated in clause (ii).

4(ii) The number of pupils entering grade 9 for the first time in
5the school year three school years before the current school year,
6plus the number of pupils who transferred into the class graduating
7at the end of the current school year between the school year that
8was three school years before the current school year and the date
9of graduation, less the number of pupils who transferred out of the
10school between the school year that was three school years before
11the current school year and the date of graduation who were
12members of the class that is graduating at the end of the current
13school year.

14(iii) Five-year graduation rates shall be calculated by taking the
15number of pupils who graduated on time for the current school
16year, which is considered to be four school years after the pupils
17entered grade 9 for the first time, and dividing that number by the
18total calculated in clause (iv).

19(iv) The number of pupils entering grade 9 for the first time in
20the school year four years before the current school year, plus the
21number of pupils who transferred into the class graduating at the
22end of the current school year between the school year that was
23four school years before the current school year and the date of
24graduation, less the number of pupils who transferred out of the
25school between the school year that was four years before the
26current school year and the date of graduation who were members
27of the class that is graduating at the end of the current school year.

28(v) Six-year graduation rates shall be calculated by taking the
29number of pupils who graduated on time for the current school
30year, which is considered to be five school years after the pupils
31entered grade 9 for the first time, and dividing that number by the
32total calculated in clause (vi).

33(vi) The number of pupils entering grade 9 for the first time in
34the school year five years before the current school year, plus the
35number of pupils who transferred into the class graduating at the
36end of the current school year between the school year that was
37five school years before the current school year and the date of
38graduation, less the number of pupils who transferred out of the
39school between the school year that was five years before the
P99   1current school year and the date of graduation who were members
2of the class that is graduating at the end of the current school year.

3(D) The inclusion of five- and six-year graduation rates for
4pupils in secondary schools shall meet the following requirements:

5(i) Schools shall be granted one-half the credit in their API
6scores for graduating pupils in five years that they are granted for
7graduating pupils in four years.

8(ii) Schools shall be granted one-quarter the credit in their API
9scores for graduating pupils in six years that they are granted for
10graduating pupils in four years.

11(iii) Notwithstanding clauses (i) and (ii), schools shall be granted
12full credit in their API scores for graduating in five or six years a
13pupil with disabilities who graduates in accordance with his or her
14individualized education program.

15(E) The pupil data collected for the API that comes from the
16achievement test administered pursuant to Section 60640 and the
17high school exit examination administered pursuant to Section
1860851, when fully implemented, shall be disaggregated by special
19education status, English learners, socioeconomic status, gender,
20and ethnic group. Only the test scores of pupils who were counted
21as part of the enrollment in the annual data collection of the
22California Basic Educational Data System for the current fiscal
23year and who were continuously enrolled during that year may be
24included in the test result reports in the API score of the school.

25(F) (i) Commencing with the baseline API calculation in 2016,
26and for each year thereafter, results of the achievement test and
27other tests specified in subdivision (b) shall constitute no more
28than 60 percent of the value of the index for secondary schools.

29(ii)  In addition to the elements required by this paragraph, the
30Superintendent, with approval of the state board, may incorporate
31into the index for secondary schools valid, reliable, and stable
32measures of pupil preparedness for postsecondary education and
33career.

34(G) Results of the achievement test and other tests specified in
35subdivision (b) shall constitute at least 60 percent of the value of
36the index for primary schools and middle schools.

37(H) It is the intent of the Legislature that the state’s system of
38public school accountability be more closely aligned with both the
39public’s expectations for public education and the workforce needs
40of the state’s economy. It is therefore necessary that the
P100  1accountability system evolve beyond its narrow focus on pupil test
2scores to encompass other valuable information about school
3performance, including, but not limited to, pupil preparedness for
4college and career, as well as the high school graduation rates
5already required by law.

6(I) The Superintendent shall annually determine the accuracy
7of the graduation rate data. Notwithstanding any other law,
8graduation rates for pupils in dropout recovery high schools shall
9not be included in the API. For purposes of this subparagraph,
10“dropout recovery high school” means a high school in which 50
11percent or more of its pupils have been designated as dropouts
12pursuant to the exit/withdrawal codes developed by the department
13or left a school and were not otherwise enrolled in a school for a
14period of at least 180 days.

15(J) To complement the API, the Superintendent, with the
16approval of the state board, may develop and implement a program
17of school quality review that features locally convened panels to
18visit schools, observe teachers, interview pupils, and examine pupil
19work, if an appropriation for this purpose is made in the annual
20Budget Act.

21(K) The Superintendent shall annually provide to local
22educational agencies and the public a transparent and
23understandable explanation of the individual components of the
24API and their relative values within the API.

25(L) An additional element chosen by the Superintendent and
26the state board for inclusion in the API pursuant to this paragraph
27shall not be incorporated into the API until at least one full school
28year after the state board’s decision to include the element into the
29API.

30(b) Pupil scores from the following tests, when available and
31when found to be valid and reliable for this purpose, shall be
32 incorporated into the API:

33(1) The standards-based achievement tests provided for in
34Section 60642.5.

35(2) The high school exit examination.

36(c) Based on the API, the Superintendent shall develop, and the
37state board shall adopt, expected annual percentage growth targets
38for all schools based on their API baseline score from the previous
39year. Schools are expected to meet these growth targets through
40effective allocation of available resources. For schools below the
P101  1statewide API performance target adopted by the state board
2pursuant to subdivision (d), the minimum annual percentage growth
3target shall be 5 percent of the difference between the actual API
4score of a school and the statewide API performance target, or one
5API point, whichever is greater. Schools at or above the statewide
6API performance target shall have, as their growth target,
7maintenance of their API score above the statewide API
8performance target. However, the state board may set differential
9growth targets based on grade level of instruction and may set
10higher growth targets for the lowest performing schools because
11they have the greatest room for improvement. To meet its growth
12target, a school shall demonstrate that the annual growth in its API
13is equal to or more than its schoolwide annual percentage growth
14target and that all numerically significant pupil subgroups, as
15defined in subdivision (a), are making comparable improvement.

16(d) Upon adoption of state performance standards by the state
17board, the Superintendent shall recommend, and the state board
18shall adopt, a statewide API performance target that includes
19consideration of performance standards and represents the
20proficiency level required to meet the state performance target.
21When the API is fully developed, schools, at a minimum, shall
22meet their annual API growth targets to be eligible for the
23Governor’s Performance Award Program as set forth in Section
2452057. The state board may establish additional criteria that schools
25must meet to be eligible for the Governor’s Performance Award
26Program.

27(e) (1) A school with 11 to 99 pupils with valid test scores shall
28receive an API score with an asterisk that indicates less statistical
29certainty than API scores based on 100 or more test scores.

30(2) A school annually shall receive an API score, unless the
31Superintendent determines that an API score would be an invalid
32measure of the performance of the school for one or more of the
33following reasons:

34(A) Irregularities in testing procedures occurred.

35(B) The data used to calculate the API score of the school are
36not representative of the pupil population at the school.

37(C) Significant demographic changes in the pupil population
38render year-to-year comparisons of pupil performance invalid.

39(D) The department discovers or receives information indicating
40that the integrity of the API score has been compromised.

P102  1(E) Insufficient pupil participation in the assessments included
2in the API.

3(3) If a school has fewer than 100 pupils with valid test scores,
4the calculation of the API or adequate yearly progress pursuant to
5the federal No Child Left Behind Act of 2001 (20 U.S.C. Sec. 6301
6et seq.) and federal regulations may be calculated over more than
7one annual administration of the tests administered pursuant to
8Section 60640 and the high school exit examination administered
9pursuant to Section 60851, consistent with regulations adopted by
10the state board.

11(f) Only schools with 100 or more test scores contributing to
12the API may be included in the API rankings.

13(g) The Superintendent, with the approval of the state board,
14shall develop an alternative accountability system for schools under
15the jurisdiction of a county board of education or a county
16superintendent of schools, community day schools, nonpublic,
17nonsectarian schools pursuant to Section 56366, and alternative
18schools serving high-risk pupils, including continuation high
19schools and opportunity schools. Schools in the alternative
20accountability system may receive an API score, but shall not be
21included in the API rankings.

22

SEC. 46.  

Section 60200.8 of the Education Code is amended
23to read:

24

60200.8.  

(a) Notwithstanding Section 60200.7, the state board
25may consider the adoption of a revised curriculum framework and
26evaluation criteria for instructional materials in history-social
27science.

28(b) The department shall conduct work necessary to revise the
29curriculum framework and evaluation criteria for instructional
30materials in history-social science only after it has completed work
31related to the development of curriculum frameworks for the
32common core academic content standards pursuant to Section
3360207.

34

SEC. 47.  

Section 60209 of the Education Code is amended to
35read:

36

60209.  

For purposes of conducting an adoption of basic
37instructional materials for mathematics pursuant to Section 60207,
38all of the following shall apply:

39(a) The department shall provide notice, pursuant to subdivision
40(b), to all publishers or manufacturers known to produce basic
P103  1instructional materials in that subject, post an appropriate notice
2on the Internet Web site of the department, and take other
3reasonable measures to ensure that appropriate notice is widely
4circulated to potentially interested publishers and manufacturers.

5(b) The notice shall specify that each publisher or manufacturer
6choosing to participate in the adoption shall be assessed a fee based
7on the number of programs the publisher or manufacturer indicates
8will be submitted for review and the number of grade levels
9proposed to be covered by each program.

10(c) The fee assessed pursuant to subdivision (d) shall be in an
11amount that does not exceed the reasonable costs to the department
12in conducting the adoption process. The department shall take
13reasonable steps to limit costs of the adoption and to keep the fee
14modest.

15(d) The department, before incurring substantial costs for the
16adoption, shall require that a publisher or manufacturer that wishes
17to participate in the adoption first declare the intent to submit one
18or more specific programs for adoption and specify the specific
19grade levels to be covered by each program.

20(1) After a publisher or manufacturer declares the intent to
21submit one or more programs and the grade levels to be covered
22by each program, the department shall assess a fee that shall be
23payable by the publisher or manufacturer even if the publisher or
24manufacturer subsequently chooses to withdraw a program or
25reduce the number of grade levels covered.

26(2) A submission by a publisher or manufacturer shall not be
27reviewed for purposes of adoption until the fee assessed has been
28paid in full.

29(e) (1) Upon the request of a small publisher or small
30manufacturer, the state board may reduce the fee for participation
31in the adoption.

32(2) For purposes of this section, “small publisher” and “small
33manufacturer” mean an independently owned or operated publisher
34or manufacturer that is not dominant in its field of operation and
35that, together with its affiliates, has 100 or fewer employees, and
36has average annual gross receipts of ten million dollars
37($10,000,000) or less over the previous three years.

38(f) If the department determines that there is little or no interest
39in participating in an adoption by publishers and manufacturers,
40the department shall recommend to the state board whether or not
P104  1the adoption shall be conducted, and the state board may choose
2not to conduct the adoption.

3(g) Revenue derived from fees assessed pursuant to subdivision
4(d) shall be budgeted as reimbursements and subject to review
5through the annual budget process, and may be used to pay for
6costs associated with any adoption and for any costs associated
7with the review of instructional materials, including reimbursement
8of substitute costs for teacher reviewers and may be used to cover
9stipends for content review experts.

10

SEC. 48.  

Section 60605.87 of the Education Code is amended
11to read:

12

60605.87.  

(a) The department shall recommend, and the state
13board shall approve, evaluation criteria to guide the development
14and review of supplemental instructional materials for English
15learners.

16(b) Notwithstanding any other law, and on a one-time basis, the
17department, on or before March 1, 2014, shall develop a list of
18supplemental instructional materials for beginning through
19advanced levels of proficiency for use in kindergarten and grades
201 to 8, inclusive, that are aligned with the revised English language
21development standards adopted pursuant to Section 60811.3. The
22supplemental instructional materials shall provide a bridge between
23the current English language development standards and the revised
24English language development standards pursuant to Section
25 60811.3 with the purpose of ensuring the supplemental instructional
26materials address the unique features of the English language
27development standards and remain consistent with the relevant
28elements of the evaluation criteria for English language arts
29supplemental instructional materials adopted pursuant to Section
3060605.86.

31(c) (1) The department shall recommend, and the state board
32shall approve, content review experts to review, in an open and
33transparent process, supplemental instructional materials submitted
34for approval in the subject area of English language development.

35(2) The majority of content review experts approved pursuant
36to paragraph (1) shall be elementary and secondary schoolteachers
37who are credentialed in English language arts, possess the
38appropriate state English learner authorization, and have five years
39of classroom experience instructing English learners. The content
40review experts also shall include appropriate persons possessing
P105  1English learner expertise from postsecondary educational
2institutions and school and school district curriculum administrators
3possessing English learner expertise, and other persons who are
4knowledgeable in English language arts and English language
5development.

6(d) (1) On or before June 30, 2014, the state board shall do the
7following:

8(A) Approve all, or a portion, of the list of supplemental
9instructional materials proposed by the department, taking into
10consideration the review of the content review experts and any
11other relevant information, as appropriate.

12(B) Reject all, or a portion, of the list of supplemental
13instructional materials proposed by the department, taking into
14 consideration the review of the content review experts and any
15other relevant information, as appropriate.

16(2) If the state board rejects all, or a portion, of the list of
17supplemental instructional materials proposed by the department,
18or adds an item to the list, the state board, in a public meeting held
19pursuant to the Bagley-Keene Open Meeting Act (Article 9
20(commencing with Section 11120) of Chapter 1 of Part 1 of
21Division 3 of Title 2 of the Government Code), shall provide
22written reasons for the removal or addition of an item on the list.
23The state board shall not approve a supplemental instructional
24material it adds to the list at the same time it provides its written
25reason for adding the material; instead, the state board shall
26approve the added material at a subsequent public meeting.

27(e) (1) The governing board of a school district and a county
28 board of education may approve supplemental instructional
29materials other than those approved by the state board pursuant to
30subdivision (d) if the governing board of a school district or county
31board of education determines that other supplemental instructional
32materials are aligned with the revised English language
33development standards adopted pursuant to Section 60811.3 and
34meet the needs of pupils of the district who are English learners.
35The governing board of a school district or the county board of
36education may only approve supplemental instructional materials
37that comply with all of the following:

38(A) The evaluation criteria approved pursuant to subdivision
39(a).

40(B) Section 60226.

P106  1(C) Subdivision (h).

2(D) Article 4 (commencing with Section 60060) of Chapter 1.

3(2) (A) A supplemental instructional material approved by a
4governing board of a school district or county board of education
5pursuant to this subdivision that is in the subject area of English
6language development shall be reviewed by content review experts
7chosen by the governing board.

8(B) The majority of the content review experts chosen pursuant
9to subparagraph (A) shall be elementary and secondary
10schoolteachers who are credentialed in English language arts,
11possess the appropriate state English learner authorization, and
12have five years of classroom experience instructing English
13learners.

14(C) The content review experts also shall include appropriate
15persons possessing English learner expertise from postsecondary
16educational institutions and school and school district curriculum
17administrators possessing English learner expertise, and other
18persons who are knowledgeable in English language arts and
19English language development.

20(f) Publishers choosing to submit supplemental instructional
21materials for approval by the state board shall submit standards
22maps.

23(g) (1) Before approving supplemental instructional materials
24pursuant to this section, the state board shall review those
25instructional materials for academic content, social content, and
26instructional support to teachers and pupils. Supplemental
27instructional materials approved by the state board pursuant to this
28section shall meet required program criteria for grade-level
29programs and shall include materials for use by teachers.

30(2) Before approving supplemental instructional materials
31pursuant to this section, the governing board of a school district
32or county board of education shall review those instructional
33materials for academic content and instructional support to teachers
34and pupils who are English learners. Supplemental instructional
35materials approved by the governing board of a school district or
36county board of education pursuant to this section shall meet
37required program criteria for grade-level programs and shall include
38materials for use by teachers.

P107  1(h) Supplemental instructional materials approved pursuant to
2this section shall comply with the social content review
3requirements pursuant to Section 60050.

4(i) The department shall maintain on its Internet Web site the
5list of supplemental instructional materials approved by the state
6board pursuant to subdivision (d).

7(j) This section shall become inoperative on July 1, 2014, and,
8as of July 1, 2015, is repealed, unless a later enacted statute, that
9becomes operative on or before July 1, 2015, deletes or extends
10the dates on which it becomes inoperative and is repealed.

11

SEC. 49.  

Section 60852.1 of the Education Code is amended
12to read:

13

60852.1.  

(a) The Superintendent shall recommend, and the
14state board shall select, members of a panel that shall convene to
15make recommendations regarding alternative means for eligible
16pupils with disabilities to demonstrate that they have achieved the
17same level of academic achievement in the content standards in
18English language arts or mathematics, or both, required for passage
19of the high school exit examination.

20(1) The panel shall be composed of educators and other
21individuals who have experience with the population of pupils
22with disabilities eligible for alternative means of demonstrating
23academic achievement, as defined in Section 60852.2, and
24educators and other individuals who have expertise with multiple
25forms of assessment. The panel shall consult with experts in other
26states that offer alternative means for pupils with disabilities to
27demonstrate academic achievement. A majority of the panel shall
28be classroom teachers.

29(2) The panel shall make findings and recommendations
30regarding all of the following:

31(A) Specific options for alternative assessments, submission of
32evidence, or other alternative means by which eligible pupils with
33disabilities may demonstrate that they have achieved the same
34level of academic achievement in the content standards in English
35language arts or mathematics, or both, required for passage of the
36high school exit examination.

37(B) Scoring or other evaluation systems designed to ensure that
38the eligible pupil with a disability has achieved the same
39competence in the content standards required for passage of the
40high school exit examination.

P108  1(C) Processes to ensure that the form, content, and scoring of
2assessments, evidence, or other means of demonstrating academic
3achievement are applied uniformly across the state.

4(D) Estimates of one-time or ongoing costs, and whether each
5option should be implemented on a statewide or regional basis, or
6both.

7(3) The panel shall present its options and make its findings and
8recommendations to the Superintendent and to the state board by
9October 1, 2009.

10(b) For those portions of, or those academic content standards
11assessed by, the high school exit examination for which the state
12board determines it is feasible to create alternative means by which
13eligible pupils with disabilities may demonstrate the same level
14of academic achievement required for passage of the high school
15exit examination, the state board, taking into consideration the
16findings and recommendations of the panel, shall adopt regulations
17for alternative means by which eligible pupils with disabilities, as
18defined in Section 60852.2, may demonstrate that they have
19achieved the same level of academic achievement in the content
20standards required for passage of the high school exit examination.
21The regulations shall include appropriate timelines and the manner
22in which eligible pupils with disabilities and school districts shall
23be timely notified of the results.

24

SEC. 50.  

Section 66407 of the Education Code is amended to
25read:

26

66407.  

(a) (1) The publisher of a textbook, or an agent or
27employee of the publisher, shall provide a prospective purchaser
28of the textbook with all of the following:

29(A) A list of all the products offered for sale by the publisher
30germane to the prospective purchaser’s subject area of interest.

31(B) For a product listed pursuant to subparagraph (A), the
32wholesale or retail price of the product, and the estimated length
33of time the publisher intends to keep the product on the market.

34(C) For each new edition of a product listed pursuant to
35subparagraph (A), a list of the substantial content differences or
36changes between the new edition and the previous edition of the
37textbook.

38(2) The publisher shall make the lists required by paragraph (1)
39available to a prospective purchaser at the commencement of a
40sales interaction, including, but not necessarily limited to, a sales
P109  1interaction conducted in person, by telephone, or electronically.
2The publisher shall also post in a prominent position on its Internet
3Web site the lists required by paragraph (1).

4(b) As used in this section, the following terms have the
5following meanings:

6(1) “Product” means each version, including, but not necessarily
7limited to, a version in a digital format, of a textbook, or set of
8textbooks, in a particular subject area, including, but not necessarily
9limited to, a supplemental item, whether or not the supplemental
10item is sold separately or together with a textbook.

11(2) “Publisher” has the same meaning as defined in subdivision
12(b) of Section 66406.7.

13(3) “Purchaser” means a faculty member of a public or private
14postsecondary educational institution who selects the textbooks
15assigned to students.

16(4) “Textbook” has the same meaning as defined in subdivision
17(b) of Section 66406.7.

18

SEC. 51.  

Section 81378.1 of the Education Code is amended
19to read:

20

81378.1.  

(a) The governing board of a community college
21district may, without complying with any other provision of this
22article, let, in the name of the district, any buildings, grounds, or
23space therein, together with any personal property located thereon,
24not needed for academic activities, upon the terms and conditions
25agreed upon by the governing board and the lessee for a period of
26more than five days but less than five years, as determined by the
27governing board. Before executing the lease, the governing board
28shall include in an agenda of a meeting of the board open to the
29public a description of the proposed lease and an explanation of
30the methodology used to establish the lease rate and for determining
31the fair market value of the lease.

32(b) The governing board shall give public notice before taking
33any action pursuant to subdivision (a). The notice shall include a
34description of the governing board’s intended action. The notice
35shall be printed once a week for three successive weeks prior to
36the board meeting described in subdivision (a) in a newspaper of
37general circulation that is published at least once a week.

38(c) The governing board shall include, as a condition in any
39agreement to let any buildings, grounds, or space therein, together
40with any personal property located thereon, a provision that the
P110  1agreement shall be subject to renegotiation and may be rescinded
2after 60 days’ notice to the lessee if the governing board determines
3at any time during the term of the agreement that the buildings,
4grounds, or space therein subject to the agreement are needed for
5academic activities. Any revenue derived pursuant to the agreement
6shall be retained for the exclusive use of the community college
7 district whose buildings, grounds, or space therein are the basis of
8the agreement and shall be used to supplement, but not supplant,
9any state funding. Any buildings, grounds, or space therein let by
10the district shall be included as space actually available for use by
11the college in any calculations related to any plan for capital
12construction submitted to the board of governors pursuant to
13Chapter 4 (commencing with Section 81800), or any other law.

14(d) The authority of a governing board under this section does
15not apply to the letting of an entire campus.

16(e) The use of any buildings, grounds, or space therein, together
17with any personal property located thereon, let by the governing
18board pursuant to this section shall be consistent with all applicable
19zoning ordinances and regulations.

20

SEC. 52.  

Section 88620 of the Education Code is amended to
21read:

22

88620.  

The following definitions govern the construction of
23this part:

24(a) “Board of governors” means the Board of Governors of the
25California Community Colleges.

26(b) “Business Resource Assistance and Innovation Network”
27means the network of projects and programs that comprise the
28California Community Colleges Economic and Workforce
29Development Program.

30(c) “California Community Colleges Economic and Workforce
31Development Program” and “economic and workforce development
32program” mean the program.

33(d) “Career pathways,” and “career ladders,” or “career lattices”
34mean an identified series of positions, work experiences, or
35educational benchmarks or credentials that offer occupational and
36financial advancement within a specified career field or related
37fields over time.

38(e) (1) “Center” means a comprehensive program of services
39offered by one or more community colleges to an economic region
40of the state in accordance with criteria established by the
P111  1chancellor’s office for designation as an economic and workforce
2development program center. Center services shall be designed to
3respond to the statewide strategic priorities pursuant to the mission
4of the community colleges’ economic and workforce development
5program, and to be consistent with programmatic priorities,
6competitive and emerging industry sectors and industry clusters,
7identified economic development, career technical education,
8business development, and continuous workforce training needs
9of a region. Centers shall provide a foundation for a long-term,
10 sustained relationship with businesses, labor, colleges, and other
11workforce education and training delivery systems, such as local
12workforce investment boards, in the region.

13(2) A center shall support, develop, and deliver direct services
14to students, businesses, colleges, labor organizations, employees,
15and employers. For purposes of this subdivision, direct services
16include, but are not necessarily limited to, data analysis both of
17labor market information and college performance; intraregion
18and multiregion sector coordination and logistics; inventory of
19community college and other assets relevant to meeting a labor
20market need; curriculum development, curriculum model
21development, or job task analysis development; articulation of
22curriculum in a career pathway or career lattice or in a system of
23stackable credentials; faculty training; calibration to a career
24readiness or other assessment; assessment administration; career
25guidance module development or counseling; convenings, such
26as seminars, workshops, conferences, and training; facilitating
27collaboration between faculty working in related disciplines and
28sectors; upgrading, leveraging, and developing technology; and
29other educational services. The establishment and maintenance of
30the centers is under the sole authority of the chancellor’s office in
31order to preserve the flexibility of the system to adapt to labor
32market needs and to integrate resources.

33(f) “Chancellor” means the Chancellor of the California
34Community Colleges.

35(g) “Economic security” means, with respect to a worker,
36earning a wage sufficient to adequately support a family and to,
37over time, save money for emergency expenses and adequate
38retirement income, the sufficiency of which is determined
39considering a variety of factors including household size, the cost
P112  1of living in the worker’s community, and other factors that may
2vary by region.

3(h) “High-priority occupation” means an occupation that has a
4significant presence in a targeted industry sector or industry cluster,
5is in demand by employers, and pays or leads to payment of high
6wages.

7(i) “Industry cluster” means a geographic concentration or
8emerging concentration of interdependent industries with direct
9service, supplier, and research relationships, or independent
10industries that share common resources in a given regional
11economy or labor market. An industry cluster is a group of
12employers closely linked by a common product or services,
13workforce needs, similar technologies, and supply chains in a given
14regional economy or labor market.

15(j) “Industry-driven regional collaborative” means a regional
16public, private, or other community organizational structure that
17jointly defines priorities, delivers services across programs, sectors,
18and in response to, or driven by, industry needs. The
19industry-driven regional collaborative projects meet the needs and
20fill gaps in services that respond to regional business, employee,
21and labor needs. These service-delivery structures offer flexibility
22to local communities and partners to meet the identified needs in
23an economic development region. Industry-driven regional
24collaboratives are broadly defined to allow maximum local
25autonomy in developing projects responding to the needs of
26business, industry, and labor.

27(k) “Industry sector” means those firms that produce similar
28products or provide similar services using somewhat similar
29business processes.

30(l) “Initiative” is an identified strategic priority area that is
31organized statewide, but is a regionally based effort to develop
32and implement innovative solutions designed to facilitate the
33development, implementation, and coordination of community
34college economic development and related programs and services.
35Each initiative shall be workforce and business development driven
36by a statewide committee made up of community college faculty
37and administrators and practitioners and managers from business,
38labor, and industry. Centers, industry-driven regional
39collaboratives, and other economic and workforce development
40programs performing services as a part of the implementation of
P113  1an initiative shall coordinate services statewide and within regions
2of the state, as appropriate.

3(m) “Job development incentive training” means programs that
4provide incentives to employers to create entry-level positions in
5their businesses, or through their suppliers or prime customers, for
6welfare recipients and the working poor.

7(n) “Matching resources” means any combination of public or
8private resources, either cash or in-kind, derived from sources
9other than the economic and workforce development program
10funds appropriated by the annual Budget Act, that are determined
11to be necessary for the success of the project to which they are
12applied. The criteria for in-kind resources shall be developed by
13the board of governors, with advice from the chancellor and the
14California Community Colleges Economic and Workforce
15Development Program Advisory Committee, and shall be consistent
16with generally accepted accounting practices for state and federal
17matching requirements. The ratio of matching resources to
18economic and workforce development program funding shall be
19determined by the board of governors.

20(o) “Performance improvement training” means training
21delivered by a community college that includes all of the following:

22(1) An initial needs assessment process that identifies both
23training and nontraining issues that need to be addressed to improve
24individual and organizational performance.

25(2) Consultation with employers to develop action plans that
26address business or nonprofit performance improvements.

27(3) Training programs that link individual performance
28requirements with quantifiable business measures, resulting in
29demonstrable productivity gains, and, as appropriate, job retention,
30job creation, improvement in wages, or attainment of wages that
31provide economic security.

32(p) “Program” means the California Community Colleges
33Economic and Workforce Development Program established under
34this part.

35(q) “Region” means a geographic area of the state defined by
36economic and labor market factors containing at least one industry
37cluster and the cities, counties, or community college districts, or
38all of them, in the industry cluster’s geographic area. For the
39purposes of this chapter, “California Community College economic
40development regions” shall be designated by the board of governors
P114  1based on factors, including, but not necessarily limited to, all of
2the following:

3(1) Regional economic development and training needs of
4business and industry.

5(2) Regional collaboration, as appropriate, among community
6colleges and districts, and existing economic development,
7continuous workforce improvement, technology deployment, and
8business development.

9(3) Other state economic development definitions of regions.

10(r) “Sector strategies” means prioritizing investments in
11competitive and emerging industry sectors and industry clusters
12on the basis of labor market and other economic data that indicate
13strategic growth potential, especially with regard to jobs and
14income. Sector strategies focus workforce investment in education
15and workforce training programs that are likely to lead to
16high-wage jobs or to entry-level jobs with well-articulated career
17pathways into high-wage jobs. Sector strategies effectively boost
18labor productivity or reduce business barriers to growth and
19expansion stemming from workforce supply problems, including
20skills gaps, and occupational shortages by directing resources and
21making investments to plug skills gaps and provide education and
22training programs for high-priority occupations. Sector strategies
23may be implemented using articulated career pathways or career
24lattices and a system of stackable credentials. Sector strategies
25often target underserved communities, disconnected youth,
26incumbent workers, and recently separated military veterans.
27Cluster-based sector strategies focus workforce and economic
28development on those sectors that have demonstrated a capacity
29for economic growth and job creation in a particular geographic
30area. Industry clusters are similar to industry sectors, but the focus
31is on a geographic concentration of interdependent industries.

32(s) “Skills panel” means a collaboration which brings together
33multiple employers from an industry sector or industry cluster with
34career technical educators, including, but not limited to, community
35college career technical education faculty, and other stakeholders
36which may include workers and organized labor to address
37common workforce needs. Skills panels assess workforce training
38and education needs through the identification of assets relevant
39to industry need, produce curricula models, perform job task
40analysis, define how curricula articulate into career pathways or
P115  1career lattices or a system of stackable credentials, calibrate career
2readiness, develop other assessment tools, and produce career
3guidance tools.

4(t) “Stackable credentials” means a progression of training
5modules, credentials, or certificates that build on one another and
6are linked to educational and career advancement.

7

SEC. 53.  

Section 2162 of the Elections Code is amended to
8read:

9

2162.  

(a) No affidavits of registration other than those provided
10by the Secretary of State to the county elections officials or the
11national voter registration forms authorized pursuant to the federal
12National Voter Registration Act of 1993 (42 U.S.C. Sec. 1973gg
13et seq.) shall be used for the registration of voters.

14(b) A voter registration card shall not be altered, defaced, or
15changed in any way, other than by the insertion of a mailing
16address and the affixing of postage, if mailed, or as otherwise
17specifically authorized by the Secretary of State, prior to
18distribution of the cards.

19(c) The affidavit portion of a voter registration card shall not
20be marked, stamped, or partially or fully completed by a person
21other than an elector attempting to register to vote or by a person
22assisting the elector in completing the affidavit at the request of
23the elector.

24

SEC. 54.  

Section 2224 of the Elections Code is amended to
25read:

26

2224.  

(a) If a voter has not voted in an election within the
27preceding four years, and his or her residence address, name, or
28party affiliation has not been updated during that time, the county
29elections official may send an alternate residency confirmation
30postcard. The use of this postcard may be sent subsequent to NCOA
31or sample ballot returns, but shall not be used in the residency
32confirmation process conducted under Section 2220. The postcard
33shall be forwardable, including a postage-paid and preaddressed
34return form to enable the voter to verify or correct the address
35information, and shall be in substantially the following form:

36“If the person named on the postcard is not at this address,
37PLEASE help keep the voter rolls current and save taxpayer dollars
38by returning this postcard to your mail carrier.”

39“IMPORTANT NOTICE”

P116  1“According to our records you have not voted in any election
2during the past four years, which may indicate that you no longer
3reside in ____ County. If you continue to reside in this county you
4must confirm your residency address in order to remain on the
5active voter list and receive election materials in the mail.”

6“If confirmation has not been received within 15 days, you may
7be required to provide proof of your residence address in order to
8vote at future elections. If you no longer live in ____ County, you
9must reregister at your new residence address in order to vote in
10the next election. California residents may obtain a mail registration
11form by calling the county elections office or the Secretary of
12State’s office.”

13(b) The use of a toll-free number to confirm the old residence
14address is optional. Any change to a voter’s address shall be
15received in writing.

16(c) A county using the alternate residency confirmation
17procedure shall notify all voters of the procedure in the sample
18ballot pamphlet or in a separate mailing.

19

SEC. 55.  

Section 2225 of the Elections Code is amended to
20read:

21

2225.  

(a) Based on change-of-address data received from the
22United States Postal Service or its licensees, the county elections
23official shall send a forwardable notice, including a postage-paid
24and preaddressed return form, to enable the voter to verify or
25correct address information.

26Notification received through NCOA or Operation Mail that a
27voter has moved and has given no forwarding address shall not
28require the mailing of a forwardable notice to that voter.

29(b) If postal service change-of-address data indicates that the
30voter has moved to a new residence address in the same county,
31the forwardable notice shall be in substantially the following form:


33“We have received notification that the voter has moved to a
34new residence address in ____ County. You will be registered to
35vote at your new address unless you notify our office within 15
36days that the address to which this card was mailed is not a change
37of your permanent residence. You must notify our office by either
38returning the attached postage-paid postcard, or by calling toll
39free. If this is not a permanent residence, and if you do not notify
P117  1us within 15 days, you may be required to provide proof of your
2residence address in order to vote at future elections.”


4(c) If postal service change-of-address data indicates that the
5voter has moved to a new address in another county, the
6forwardable notice shall be in substantially the following form:


8“We have received notification that you have moved to a new
9address not in ____ County. Please use the attached postage-paid
10postcard to: (1) advise us if this is or is not a permanent change of
11residence address, or (2) to advise us if our information is incorrect.
12If you do not return this card within 15 days and continue to reside
13in ____ County, you may be required to provide proof of your
14residence address in order to vote at future elections and, if you
15do not offer to vote at any election in the period between the date
16of this notice and the second federal general election following
17this notice, your voter registration will be canceled and you will
18have to reregister in order to vote. If you no longer live in ____
19County, you must reregister at your new residence address in order
20to vote in the next election. California residents may obtain a mail
21registration form by calling the county elections officer or
221-800-345-VOTE.”


24(d) If postal service change-of-address data received from a
25nonforwardable mailing indicates that a voter has moved and left
26no forwarding address, a forwardable notice shall be sent in
27substantially the following form:


29“We are attempting to verify postal notification that the voter to
30whom this card is addressed has moved and left no forwarding
31address. If the person receiving this card is the addressed voter,
32please confirm your continued residence or provide current
33residence information on the attached postage-paid postcard within
3415 days. If you do not return this card and continue to reside in
35____ County, you may be required to provide proof of your
36residence address in order to vote at future elections and, if you
37do not offer to vote at any election in the period between the date
38of this notice and the second federal general election following
39this notice, your voter registration will be cancelled and you will
40have to reregister in order to vote. If you no longer live in ____
P118  1County, you must reregister at your new residence address in order
2to vote in the next election. California residents may obtain a mail
3registration form by calling the county elections office or the
4Secretary of State’s office.”


6(e) The use of a toll-free number to confirm the old residence
7address is optional. Any change to the voter address must be
8received in writing.

9

SEC. 56.  

Section 3111 of the Elections Code is amended to
10read:

11

3111.  

If a military or overseas voter is unable to appear at his
12or her polling place because of being recalled to service after the
13final day for making application for a vote by mail ballot, but
14before 5 p.m. on the day before the day of election, he or she may
15appear before the elections official in the county in which the
16military or overseas voter is registered or, if within the state, in
17the county in which he or she is recalled to service and make
18application for a vote by mail ballot, which may be submitted by
19facsimile, or by electronic mail or online transmission if the
20elections official makes the transmission option available. The
21elections official shall deliver to him or her a vote by mail ballot
22which may be voted in the elections official’s office or voted
23outside the elections official’s office on or before the close of the
24polls on the day of election and returned as are other vote by mail
25ballots. To be counted, the ballot shall be returned to the elections
26official’s office in person, by facsimile transmission, or by an
27authorized person on or before the close of the polls on the day of
28the election. If the military or overseas voter appears in the county
29in which he or she is recalled to service, rather than the county to
30which he or she is registered, the elections official shall coordinate
31with the elections official in the county in which the military or
32overseas voter is registered to provide the ballot that contains the
33appropriate measures and races for the precinct in which the
34military or overseas voter is registered.

35

SEC. 57.  

Section 13115 of the Elections Code is amended to
36read:

37

13115.  

The order in which all state measures that are to be
38submitted to the voters shall appear on the ballot is as follows:

39(a) Bond measures, including those proposed by initiative, in
40the order in which they qualify.

P119  1(b) Constitutional amendments, including those proposed by
2initiative, in the order in which they qualify.

3(c) Legislative measures, other than those described in
4subdivision (a) or (b), in the order in which they are approved by
5the Legislature.

6(d) Initiative measures, other than those described in subdivision
7(a) or (b), in the order in which they qualify.

8(e) Referendum measures, in the order in which they qualify.

9

SEC. 58.  

Section 21000 of the Elections Code is amended to
10read:

11

21000.  

The county elections official in each county shall
12compile and make available to the Legislature or any appropriate
13committee of the Legislature any information and statistics that
14may be necessary for use in connection with the reapportionment
15of legislative districts, including, but not limited to, precinct maps
16indicating the boundaries of municipalities, school districts, judicial
17districts, Assembly districts, senatorial districts, and congressional
18districts, lists showing the election returns for each precinct, and
19election returns for each precinct reflecting the vote total for all
20ballots cast, including both vote by mail ballots and ballots cast at
21polling places, compiled pursuant to Section 15321 in the county
22at each statewide election. If the county elections official stores
23the information and statistics in data-processing files, he or she
24shall make the files available, along with whatever documentation
25shall be necessary in order to allow the use of the files by the
26appropriate committee of the Legislature and shall retain these
27files until the next reapportionment has been completed.

28

SEC. 59.  

Section 3047 of the Family Code is amended to read:

29

3047.  

(a) A party’s absence, relocation, or failure to comply
30with custody and visitation orders shall not, by itself, be sufficient
31to justify a modification of a custody or visitation order if the
32reason for the absence, relocation, or failure to comply is the party’s
33activation to military duty or temporary duty, mobilization in
34support of combat or other military operation, or military
35deployment out of state.

36(b) (1) If a party with sole or joint physical custody or visitation
37receives temporary duty, deployment, or mobilization orders from
38the military that require the party to move a substantial distance
39from his or her residence or otherwise has a material effect on the
40ability of the party to exercise custody or visitation rights, any
P120  1 necessary modification of the existing custody order shall be
2deemed a temporary custody order made without prejudice, which
3shall be subject to review and reconsideration upon the return of
4the party from military deployment, mobilization, or temporary
5duty.

6(2) If the temporary order is reviewed upon return of the party
7from military deployment, mobilization, or temporary duty, there
8shall be a presumption that the custody order shall revert to the
9order that was in place before the modification, unless the court
10determines that it is not in the best interest of the child. The court
11shall not, as part of its review of the temporary order upon the
12return of the deploying party, order a child custody evaluation
13under Section 3111 of this code or Section 730 of the Evidence
14Code, unless the party opposing reversion of the order makes a
15prima facie showing that reversion is not in the best interest of the
16child.

17(3) (A) If the court makes a temporary custody order, it shall
18consider any appropriate orders to ensure that the relocating party
19can maintain frequent and continuing contact with the child by
20means that are reasonably available.

21(B) Upon a motion by the relocating party, the court may grant
22reasonable visitation rights to a stepparent, grandparent, or other
23family member if the court does all of the following:

24(i) Finds that there is a preexisting relationship between the
25family member and the child that has engendered a bond such that
26visitation is in the best interest of the child.

27(ii) Finds that the visitation will facilitate the child’s contact
28with the relocating party.

29(iii) Balances the interest of the child in having visitation with
30the family member against the right of the parents to exercise
31parental authority.

32(C) Nothing in this paragraph shall increase the authority of the
33persons described in subparagraph (B) to seek visitation orders
34independently.

35(D) The granting of visitation rights to a nonparent pursuant to
36subparagraph (B) shall not impact the calculation of child support.

37(c) If a party’s deployment, mobilization, or temporary duty
38will have a material effect on his or her ability, or anticipated
39ability, to appear in person at a regularly scheduled hearing, the
40court shall do either of the following:

P121  1(1) Upon motion of the party, hold an expedited hearing to
2determine custody and visitation issues prior to the departure of
3the party.

4(2) Upon motion of the party, allow the party to present
5testimony and evidence and participate in court-ordered child
6custody mediation by electronic means, including, but not limited
7to, telephone, video teleconferencing, or the Internet, to the extent
8that this technology is reasonably available to the court and protects
9the due process rights of all parties.

10(d) A relocation by a nondeploying parent during a period of a
11deployed parent’s absence while a temporary modification order
12for a parenting plan is in effect shall not, by itself, terminate the
13exclusive and continuing jurisdiction of the court for purposes of
14later determining custody or parenting time under this chapter.

15(e) When a court of this state has issued a custody or visitation
16order, the absence of a child from this state during the deployment
17of a parent shall be considered a “temporary absence” for purposes
18of the Uniform Child Custody Jurisdiction and Enforcement Act
19(Part 3 (commencing with Section 3400)), and the court shall retain
20exclusive continuing jurisdiction under Section 3422.

21(f) The deployment of a parent shall not be used as a basis to
22assert inconvenience of the forum under Section 3427.

23(g) For purposes of this section, the following terms have the
24following meanings:

25(1) “Deployment” means the temporary transfer of a member
26of the Armed Forces in active-duty status in support of combat or
27some other military operation.

28(2) “Mobilization” means the transfer of a member of the
29National Guard or Military Reserve to extended active-duty status,
30but does not include National Guard or Military Reserve annual
31training.

32(3) “Temporary duty” means the transfer of a service member
33from one military base to a different location, usually another base,
34for a limited period of time to accomplish training or to assist in
35the performance of a noncombat mission.

36(h) It is the intent of the Legislature that this section provide a
37fair, efficient, and expeditious process to resolve child custody
38and visitation issues when a party receives temporary duty,
39deployment, or mobilization orders from the military, as well as
40at the time that the party returns from service and files a motion
P122  1to revert back to the custody order in place before the deployment.
2The Legislature intends that family courts shall, to the extent
3feasible within existing resources and court practices, prioritize
4the calendaring of these cases, avoid unnecessary delay or
5continuances, and ensure that parties who serve in the military are
6not penalized for their service by a delay in appropriate access to
7their children.

8

SEC. 60.  

Section 3200.5 of the Family Code is amended to
9read:

10

3200.5.  

(a) Any standards for supervised visitation providers
11adopted by the Judicial Council pursuant to Section 3200 shall
12conform to this section. A provider, as described in Section 3200,
13shall be a professional provider or nonprofessional provider.

14(b) In any case in which the court has determined that there is
15domestic violence or child abuse or neglect, as defined in Section
1611165.6 of the Penal Code, and the court determines supervision
17is necessary, the court shall consider whether to use a professional
18or nonprofessional provider based upon the child’s best interest.

19(c) For the purposes of this section, the following definitions
20apply:

21(1) “Nonprofessional provider” means any person who is not
22paid for providing supervised visitation services. Unless otherwise
23ordered by the court or stipulated by the parties, the
24nonprofessional provider shall:

25(A) Have no record of a conviction for child molestation, child
26abuse, or other crimes against a person.

27(B) Have proof of automobile insurance if transporting the child.

28(C) Have no current or past court order in which the provider
29is the person being supervised.

30(D) Agree to adhere to and enforce the court order regarding
31supervised visitation.

32(2) “Professional provider” means any person paid for providing
33supervised visitation services, or an independent contractor,
34employee, intern, or volunteer operating independently or through
35a supervised visitation center or agency. The professional provider
36shall:

37(A) Be at least 21 years of age.

38(B) Have no record of a conviction for driving under the
39influence (DUI) within the last five years.

40(C) Not have been on probation or parole for the last 10 years.

P123  1(D) Have no record of a conviction for child molestation, child
2abuse, or other crimes against a person.

3(E) Have proof of automobile insurance if transporting the child.

4(F) Have no civil, criminal, or juvenile restraining orders within
5the last 10 years.

6(G) Have no current or past court order in which the provider
7is the person being supervised.

8(H) Be able to speak the language of the party being supervised
9and of the child, or the provider must provide a neutral interpreter
10over 18 years of age who is able to do so.

11(I) Agree to adhere to and enforce the court order regarding
12supervised visitation.

13(J) Meet the training requirements set forth in subdivision (d).

14(d) (1) Professional providers shall have received 24 hours of
15training that includes training in the following subjects:

16(A)  The role of a professional provider.

17(B)  Child abuse reporting laws.

18(C)  Recordkeeping procedures.

19(D)  Screening, monitoring, and termination of visitation.

20(E)  Developmental needs of children.

21(F)  Legal responsibilities and obligations of a provider.

22(G)  Cultural sensitivity.

23(H)  Conflicts of interest.

24(I)  Confidentiality.

25(J)  Issues relating to substance abuse, child abuse, sexual abuse,
26and domestic violence.

27(K)  Basic knowledge of family and juvenile law.

28(2) Professional providers shall sign a declaration or any Judicial
29Council form that they meet the training and qualifications of a
30provider.

31(e) The ratio of children to a professional provider shall be
32contingent on:

33(1) The degree of risk factors present in each case.

34(2) The nature of supervision required in each case.

35(3) The number and ages of the children to be supervised during
36a visit.

37(4) The number of people visiting the child during the visit.

38(5) The duration and location of the visit.

39(6) The experience of the provider.

40(f) Professional providers of supervised visitation shall:

P124  1(1) Advise the parties before commencement of supervised
2visitation that no confidential privilege exists.

3(2) Report suspected child abuse to the appropriate agency, as
4provided by law, and inform the parties of the provider’s obligation
5to make those reports.

6(3) Suspend or terminate visitation under subdivision (h).

7(g) Professional providers shall:

8(1) Prepare a written contract to be signed by the parties before
9commencement of the supervised visitation. The contract should
10inform each party of the terms and conditions of supervised
11visitation.

12(2) Review custody and visitation orders relevant to the
13supervised visitation.

14(3) Keep a record for each case, including, at least, all of the
15following:

16(A) A written record of each contact and visit.

17(B) Who attended the visit.

18(C) Any failure to comply with the terms and conditions of the
19visitation.

20(D) Any incidence of abuse, as required by law.

21(h) (1) Each provider shall make every reasonable effort to
22provide a safe visit for the child and the noncustodial party.

23(2) If a provider determines that the rules of the visit have been
24violated, the child has become acutely distressed, or the safety of
25the child or the provider is at risk, the visit may be temporarily
26interrupted, rescheduled at a later date, or terminated.

27(3) All interruptions or terminations of visits shall be recorded
28in the case file.

29(4) All providers shall advise both parties of the reasons for the
30interruption or termination of a visit.

31(i) A professional provider shall state the reasons for temporary
32suspension or termination of supervised visitation in writing and
33shall provide the written statement to both parties, their attorneys,
34the attorney for the child, and the court.

35

SEC. 61.  

Section 4055 of the Family Code, as amended by
36Section 1 of Chapter 646 of the Statutes of 2012, is amended to
37read:

38

4055.  

(a) The statewide uniform guideline for determining
39child support orders is as follows: CS = K[HN - (H%)(TN)].

40(b) (1) The components of the formula are as follows:

P125  1(A) CS = child support amount.

2(B) K = amount of both parents’ income to be allocated for child
3support as set forth in paragraph (3).

4(C) HN = high earner’s net monthly disposable income.

5(D) H% = approximate percentage of time that the high earner
6has or will have primary physical responsibility for the children
7compared to the other parent. In cases in which parents have
8different time-sharing arrangements for different children, H%
9equals the average of the approximate percentages of time the high
10earner parent spends with each child.

11(E) TN = total net monthly disposable income of both parties.

12(2) To compute net disposable income, see Section 4059.

13(3) K (amount of both parents’ income allocated for child
14support) equals one plus H% (if H% is less than or equal to 50
15percent) or two minus H% (if H% is greater than 50 percent) times
16the following fraction:


17

 

Total Net Disposable
Income Per Month

    K

$0-800

0.20 + TN/16,000

$801-6,666

0.25

$6,667-10,000

0.10 + 1,000/TN

Over $10,000

0.12 + 800/TN

P125 2431

 

25For example, if H% equals 20 percent and the total monthly net
26disposable income of the parents is $1,000, K = (1 + 0.20) × 0.25,
27or 0.30. If H% equals 80 percent and the total monthly net
28disposable income of the parents is $1,000, K = (2 - 0.80) × 0.25,
29or 0.30.

30(4) For more than one child, multiply CS by:

 

 2 children

1.6

 3 children

2

 4 children

2.3

 5 children

2.5

 6 children

2.625

 7 children

2.75

 8 children

2.813

 9 children

2.844

10 children

2.86

 

P126  1(5) If the amount calculated under the formula results in a
2positive number, the higher earner shall pay that amount to the
3lower earner. If the amount calculated under the formula results
4in a negative number, the lower earner shall pay the absolute value
5of that amount to the higher earner.

6(6) In any default proceeding where proof is by affidavit
7 pursuant to Section 2336, or in any proceeding for child support
8in which a party fails to appear after being duly noticed, H% shall
9be set at zero in the formula if the noncustodial parent is the higher
10earner or at 100 if the custodial parent is the higher earner, where
11there is no evidence presented demonstrating the percentage of
12time that the noncustodial parent has primary physical
13responsibility for the children. H% shall not be set as described
14above if the moving party in a default proceeding is the
15noncustodial parent or if the party who fails to appear after being
16duly noticed is the custodial parent. A statement by the party who
17is not in default as to the percentage of time that the noncustodial
18parent has primary physical responsibility for the children shall
19be deemed sufficient evidence.

20(7) In all cases in which the net disposable income per month
21of the obligor is less than one thousand five hundred dollars
22($1,500), adjusted annually for cost-of-living increases, there shall
23be a rebuttable presumption that the obligor is entitled to a
24low-income adjustment. On March 1, 2013, and annually thereafter,
25the Judicial Council shall determine the amount of the net
26disposable income adjustment based on the change in the annual
27California Consumer Price Index for All Urban Consumers,
28published by the California Department of Industrial Relations,
29Division of Labor Statistics and Research. The presumption may
30be rebutted by evidence showing that the application of the
31low-income adjustment would be unjust and inappropriate in the
32particular case. In determining whether the presumption is rebutted,
33the court shall consider the principles provided in Section 4053,
34and the impact of the contemplated adjustment on the respective
35net incomes of the obligor and the obligee. The low-income
36adjustment shall reduce the child support amount otherwise
37determined under this section by an amount that is no greater than
38the amount calculated by multiplying the child support amount
39otherwise determined under this section by a fraction, the
P127  1numerator of which is 1,500 minus the obligor’s net disposable
2income per month, and the denominator of which is 1,500.

3(8) Unless the court orders otherwise, the order for child support
4shall allocate the support amount so that the amount of support for
5the youngest child is the amount of support for one child, and the
6amount for the next youngest child is the difference between that
7amount and the amount for two children, with similar allocations
8for additional children. However, this paragraph does not apply
9to cases in which there are different time-sharing arrangements
10for different children or where the court determines that the
11allocation would be inappropriate in the particular case.

12(c) If a court uses a computer to calculate the child support
13order, the computer program shall not automatically default
14affirmatively or negatively on whether a low-income adjustment
15is to be applied. If the low-income adjustment is applied, the
16computer program shall not provide the amount of the low-income
17adjustment. Instead, the computer program shall ask the user
18whether or not to apply the low-income adjustment, and if
19answered affirmatively, the computer program shall provide the
20range of the adjustment permitted by paragraph (7) of subdivision
21(b).

22(d) This section shall remain in effect only until January 1, 2018,
23and as of that date is repealed, unless a later enacted statute, that
24is enacted before January 1, 2018, deletes or extends that date.

25

SEC. 62.  

Section 4055 of the Family Code, as added by Section
262 of Chapter 646 of the Statutes of 2012, is amended to read:

27

4055.  

(a) The statewide uniform guideline for determining
28child support orders is as follows: CS = K[HN - (H%)(TN)].

29(b) (1) The components of the formula are as follows:

30(A) CS = child support amount.

31(B) K = amount of both parents’ income to be allocated for child
32support as set forth in paragraph (3).

33(C) HN = high earner’s net monthly disposable income.

34(D) H% = approximate percentage of time that the high earner
35has or will have primary physical responsibility for the children
36compared to the other parent. In cases in which parents have
37different time-sharing arrangements for different children, H%
38equals the average of the approximate percentages of time the high
39earner parent spends with each child.

40(E) TN = total net monthly disposable income of both parties.

P128  1(2) To compute net disposable income, see Section 4059.

2(3) K (amount of both parents’ income allocated for child
3support) equals one plus H% (if H% is less than or equal to 50
4percent) or two minus H% (if H% is greater than 50 percent) times
5the following fraction:


6

 

Total Net Disposable
Income Per Month

    K

$0-800

0.20 + TN/16,000

$801-6,666

0.25

$6,667-10,000

0.10 + 1,000/TN

Over $10,000

0.12 + 800/TN

P128 1320P128 30

 

14For example, if H% equals 20 percent and the total monthly net
15disposable income of the parents is $1,000, K = (1 + 0.20) × 0.25,
16or 0.30. If H% equals 80 percent and the total monthly net
17disposable income of the parents is $1,000, K = (2 - 0.80) × 0.25,
18or 0.30.

19(4) For more than one child, multiply CS by:

 

 2 children

1.6

 3 children

2

 4 children

2.3

 5 children

2.5

 6 children

2.625

 7 children

2.75

 8 children

2.813

 9 children

2.844

10 children

2.86

P128 30

 

31(5) If the amount calculated under the formula results in a
32positive number, the higher earner shall pay that amount to the
33lower earner. If the amount calculated under the formula results
34in a negative number, the lower earner shall pay the absolute value
35of that amount to the higher earner.

36(6) In any default proceeding where proof is by affidavit
37 pursuant to Section 2336, or in any proceeding for child support
38in which a party fails to appear after being duly noticed, H% shall
39be set at zero in the formula if the noncustodial parent is the higher
40earner or at 100 if the custodial parent is the higher earner, where
P129  1there is no evidence presented demonstrating the percentage of
2time that the noncustodial parent has primary physical
3responsibility for the children. H% shall not be set as described
4above if the moving party in a default proceeding is the
5noncustodial parent or if the party who fails to appear after being
6duly noticed is the custodial parent. A statement by the party who
7is not in default as to the percentage of time that the noncustodial
8parent has primary physical responsibility for the children shall
9be deemed sufficient evidence.

10(7) In all cases in which the net disposable income per month
11of the obligor is less than one thousand dollars ($1,000), there shall
12be a rebuttable presumption that the obligor is entitled to a
13low-income adjustment. The presumption may be rebutted by
14evidence showing that the application of the low-income
15adjustment would be unjust and inappropriate in the particular
16case. In determining whether the presumption is rebutted, the court
17shall consider the principles provided in Section 4053, and the
18impact of the contemplated adjustment on the respective net
19incomes of the obligor and the obligee. The low-income adjustment
20shall reduce the child support amount otherwise determined under
21this section by an amount that is no greater than the amount
22calculated by multiplying the child support amount otherwise
23determined under this section by a fraction, the numerator of which
24is 1,000 minus the obligor’s net disposable income per month, and
25the denominator of which is 1,000.

26(8) Unless the court orders otherwise, the order for child support
27shall allocate the support amount so that the amount of support for
28the youngest child is the amount of support for one child, and the
29amount for the next youngest child is the difference between that
30amount and the amount for two children, with similar allocations
31for additional children. However, this paragraph does not apply
32to cases in which there are different time-sharing arrangements
33for different children or where the court determines that the
34allocation would be inappropriate in the particular case.

35(c) If a court uses a computer to calculate the child support
36order, the computer program shall not automatically default
37affirmatively or negatively on whether a low-income adjustment
38is to be applied. If the low-income adjustment is applied, the
39computer program shall not provide the amount of the low-income
40adjustment. Instead, the computer program shall ask the user
P130  1whether or not to apply the low-income adjustment, and if
2answered affirmatively, the computer program shall provide the
3range of the adjustment permitted by paragraph (7) of subdivision
4(b).

5(d) This section shall become operative on January 1, 2018.

6

SEC. 63.  

Section 1587 of the Fish and Game Code is amended
7to read:

8

1587.  

(a) The Mirage Trail within the Magnesia Spring
9Ecological Reserve shall be open nine months of the year to
10recreational hiking if the commission determines that the following
11conditions are met:

12(1) Local public agencies or other entities will assume complete
13financial responsibility for the following as determined to be
14necessary by the commission:

15(A) Fencing to dissuade hikers from traversing beyond the trail
16and into sensitive Peninsular bighorn sheep habitat.

17(B) Signage and educational materials to educate hikers about
18Peninsular bighorn sheep.

19(2) A single entity has been designated to fulfill the financial
20arrangements and other terms and conditions determined by the
21commission to be necessary pursuant to paragraph (1).

22(b) The commission shall determine seasonal openings and
23closures of the trail that will not conflict with the use of the area
24by Peninsular bighorn sheep, consistent with subdivision (a).

25(c) This section shall remain in effect only until January 1, 2018,
26and as of that date is repealed, unless a later enacted statute, that
27is enacted before January 1, 2018, deletes or extends that date.

28

SEC. 64.  

Section 15100 of the Fish and Game Code is amended
29to read:

30

15100.  

There is within the department an aquaculture
31coordinator who shall perform all of the following duties as part
32of the department’s aquaculture program:

33(a) Promote understanding of aquaculture among public agencies
34and the general public.

35(b) Propose methods of reducing the negative impact of public
36regulation at all levels of government on the aquaculture industry.

37(c) Provide information on all aspects of regulatory compliance
38to the various sectors of the aquaculture industry.

P131  1(d) Provide advice to the owner of a registered aquaculture
2facility on project siting and facility design, as necessary, to comply
3with regulatory requirements.

4(e) Coordinate with the Aquaculture Development Committee
5regarding the duties described in subdivisions (a) to (d), inclusive.

6

SEC. 65.  

Section 4101.3 of the Food and Agricultural Code,
7as amended by Section 2 of Chapter 137 of the Statutes of 2012,
8is amended to read:

9

4101.3.  

(a) Notwithstanding any other provision of law, the
10California Science Center is hereby authorized to enter into a site
11lease with the California Science Center Foundation, a California
12Nonprofit Corporation, with the approval of the Natural Resources
13Agency, the Department of Finance, and the Department of General
14Services, for the purpose of the foundation developing,
15constructing, equipping, furnishing, and funding the project known
16as Phase II of the California Science Center. The overall
17 construction cost and scope shall be consistent with the amount
18authorized in the Budget Act of 2002, provided that nothing in this
19section shall prevent the foundation from expending additional
20nonstate funds to complete Phase II provided that the additional
21expenditures do not result in additional state operation and
22maintenance costs. Any additional expenditure of nonstate funds
23by the foundation shall not increase the state’s contribution.

24(b) For the purpose of carrying out subdivision (a), all of the
25following shall apply:

26(1) In connection with the development described in subdivision
27(a), above, the foundation may, in its determination, select the
28most qualified construction manager/general contractor to oversee
29and manage the work and prepare the competitive bid packages
30for all major subcontractors to be engaged in the construction of
31Phase II Project. Any construction manager/general contractor
32selected shall be required to have a California general contractor’s
33license.

34(2) Prior to commencement of construction of the Phase II
35Project, the California Science Center shall enter into a
36lease-purchase agreement upon approval by the Department of
37Finance with the foundation on terms that are compatible with the
38Phase I Project financing. The term of the lease-purchase agreement
39shall be a term not to exceed 25 years. Lease payments on behalf
40of the state shall be commensurate with the twenty-two million
P132  1nine hundred forty-five thousand two hundred sixty-three dollars
2($22,945,263), (nineteen million one hundred thirty-seven thousand
3dollars ($19,137,000) plus 19.9 percent augmentation authority)
4construction cost allocation of the state. Lease payments may also
5include any cost of financing that the foundation may incur related
6to tax-exempt financing. The California Science Center shall be
7authorized to direct the Controller to send the rental payments
8under the lease-purchase agreement directly to the foundation’s
9bond trustee.

10(3) The foundation shall ensure that the Phase II Project is
11inspected during construction by the state in the manner consistent
12with state infrastructure projects. The foundation shall also
13indemnify and defend and save harmless the Department of General
14Services for any and all claims and losses accruing and resulting
15from or arising out of the foundation’s use of the state’s plans and
16specifications. The foundation and the California Science Center,
17upon consultation with the Director of General Services and the
18Department of Finance shall agree on a reasonable level of state
19oversight throughout the construction of the Phase II Project in
20order to assist the foundation in the completion of the project within
21the intended scope and cost.

22(4) At the end of the term of the site lease and the lease-purchase
23agreement unencumbered title to the land and improvements shall
24return to the state with jurisdiction held by the California Science
25Center.

26

SEC. 66.  

Section 4106 of the Food and Agricultural Code, as
27amended by Section 6 of Chapter 137 of the Statutes of 2012, is
28amended to read:

29

4106.  

(a) The California Science Center shall work with the
30Los Angeles Memorial Coliseum Commission, the City of Los
31Angeles, and the County of Los Angeles to develop additional
32parking facilities in Exposition Park to the extent necessary to
33allow for expansion of the park.

34(b) The California Science Center shall manage or operate its
35parking facilities in a manner that preserves and protects the
36interests of itself and the California African American Museum
37and recognizes the cultural and educational character of Exposition
38Park.

39(c) The Exposition Park Improvement Fund is hereby created
40in the State Treasury. All revenues received by the California
P133  1Science Center from its parking facilities, from rental of museum
2facilities, or from other business activities shall be deposited in
3the Exposition Park Improvement Fund.

4(d) The moneys in the Exposition Park Improvement Fund may
5only be used, upon appropriation by the Legislature, for
6improvements to Exposition Park, including, but not limited to,
7maintenance of existing parking and museum facilities, replacement
8of museum equipment, supplies and wages expended to generate
9revenues from rental of museum facilities, development of new
10parking facilities, and acquisition of land within or adjacent to
11Exposition Park.

12(e) (1) The Legislature hereby finds and declares that there is
13a need for development of additional park, recreation, museum,
14and parking facilities in Exposition Park. The Legislature
15recognizes that the provision of these needed improvements as
16identified in the California Science Center Exposition Park Master
17Plan may require the use of funds provided by other governmental
18agencies or private donors.

19(2) The California Science Center may accept funds from other
20governmental agencies or private contributions for the purpose of
21implementation of the California Science Center Exposition Park
22Master Plan. The private contributions and funds from
23governmental agencies other than state governmental agencies
24shall be deposited in the Exposition Park Improvement Fund in
25the State Treasury and shall be available for expenditure without
26regard to fiscal years by the California Science Center for
27implementation of the California Science Center Exposition Park
28Master Plan. Funds from other state governmental agencies shall
29be deposited in the Exposition Park Improvement Fund and shall
30be available for expenditure, upon appropriation, by the California
31Science Center for implementation of the California Science Center
32Exposition Park Master Plan. However, any expenditure is not
33authorized sooner than 30 days after notification in writing of the
34necessity therefor to the chairperson of the committee in each
35house of the Legislature that considers appropriations and the
36Chairperson of the Joint Legislative Budget Committee, or not
37sooner than whatever lesser time as the chairperson of the joint
38committee, or his or her designee, may in each instance determine.
39Neither the City of Los Angeles nor the County of Los Angeles
P134  1shall impose any tax upon tickets purchased authorizing the use
2of parking facilities owned by the California Science Center.

3

SEC. 67.  

Section 14611 of the Food and Agricultural Code is
4amended to read:

5

14611.  

(a) A licensee whose name appears on the label who
6sells or distributes bulk fertilizing materials, as defined in Sections
714517 and 14533, to unlicensed purchasers, shall pay to the
8secretary an assessment not to exceed two mills ($0.002) per dollar
9of sales for all fertilizing materials. A licensee whose name appears
10on the label of packaged fertilizing materials, as defined in Sections
1114533 and 14551, shall pay to the secretary an assessment not to
12exceed two mills ($0.002) per dollar of sales. The secretary may,
13based on the findings and recommendations of the board, reduce
14the assessment rate to a lower rate that provides sufficient revenue
15to carry out this chapter.

16(b) In addition to the assessment provided in subdivision (a),
17the secretary may impose an assessment in an amount not to exceed
18one mill ($0.001) per dollar of sales for all sales of fertilizing
19materials, to provide funding for research and education regarding
20the use and handling of fertilizing material, including, but not
21limited to, support for University of California Cooperative
22Extension, the California resource conservation districts, other
23California institutions of postsecondary education, or other
24qualified entities to develop programs in the following areas:

25(1) Technical education for users of fertilizer materials in the
26development and implementation of nutrient management projects
27that result in more agronomically sound uses of fertilizer materials
28and minimize the environmental impacts of fertilizer use, including,
29but not limited to, nitrates in groundwater and emissions of
30greenhouse gases resulting from fertilizer use.

31(2) Research to improve nutrient management practices resulting
32in more agronomically sound uses of fertilizer materials and to
33minimize the environmental impacts of fertilizer use, including,
34but not limited to, nitrates in groundwater and emissions of
35greenhouse gases resulting from fertilizer use.

36(3) Education to increase awareness of more agronomically
37sound use of fertilizer materials to reduce the environmental
38impacts resulting from the overuse or inefficient use of fertilizing
39materials.

P135  1

SEC. 68.  

Section 19447 of the Food and Agricultural Code is
2amended to read:

3

19447.  

(a) In lieu of any civil action pursuant to Section 19445,
4and in lieu of seeking prosecution, the secretary may levy a civil
5penalty against a person who violates Article 6 (commencing with
6Section 19300), Article 6.5 (commencing with Section 19310), or
7any regulation adopted pursuant to those articles, in an amount not
8to exceed five thousand dollars ($5,000) for each violation.

9(b) Before a civil penalty is levied, the person charged with the
10violation shall receive notice of the nature of the violation and
11shall be granted the opportunity to review the secretary’s evidence
12and, for up to 30 days following the issuance of the notice, the
13opportunity to present written argument and evidence to the
14secretary as to why the civil penalty should not be imposed or
15 should be reduced from the amount specified in the penalty notice.
16Notwithstanding Chapter 4.5 (commencing with Section 11400)
17of, and Chapter 5 (commencing with Section 11500) of, Part 1 of
18Division 3 of Title 2 of the Government Code or any other
19provision of law, this section does not require the department to
20conduct either a formal or informal hearing. The secretary instead
21may dispose of the matter upon review of the documentation
22presented.

23(c) Any person upon whom a civil penalty is levied may appeal
24to the secretary within 20 days of the date of receiving notification
25of the penalty, as follows:

26(1) The appeal shall be in writing and signed by the appellant
27or his or her authorized agent and shall state the grounds for the
28appeal.

29(2) Any party, at the time of filing the appeal, or within 10 days
30thereafter, may present written evidence and a written argument
31to the secretary.

32(3) The secretary may grant oral arguments upon application
33made at the time written arguments are made.

34(4) If an application to present an oral argument is granted,
35written notice of the time and place for the oral argument shall be
36given at least 10 days prior to the date set therefor. This time
37requirement may be altered by an agreement between the secretary
38and the person appealing the penalty.

39(5) The secretary shall decide the appeal on any oral or written
40arguments, briefs, and evidence that he or she has received.

P136  1(6) The secretary shall render a written decision within 45 days
2of the date of appeal, or within 15 days of the date of oral
3arguments. A copy of the secretary’s decision shall be delivered
4or mailed to the appellant.

5(7) The secretary may sustain the decision, modify the decision
6by reducing the amount of the penalty levied, or reverse the
7decision.

8(8) A review of the decision of the secretary may be sought by
9the appellant pursuant to Section 1094.5 of the Code of Civil
10Procedure.

11(d) (1) If the person upon whom a penalty is levied does not
12file a petition for a writ of administrative mandamus, the court,
13upon receiving a certified copy of the department’s final decision
14that directs payment of a civil penalty, shall enter judgment in
15favor of the department.

16(2) After completion of the appeal procedure provided for in
17this section, the secretary may file a certified copy of the
18 department’s final decision that directs payment of a civil penalty
19and, if applicable, any order denying a petition for a writ of
20administrative mandamus, with the clerk of the superior court of
21any county that has jurisdiction over the matter. No fees shall be
22charged by the clerk of the superior court for the performance of
23any official services required in connection with the entry of
24judgment pursuant to this section.

25(e) Any penalties levied by the secretary pursuant to this section
26shall be deposited in the Department of Food and Agriculture Fund,
27and, upon appropriation by the Legislature, shall be used for the
28purposes described in Section 221.

29

SEC. 69.  

Section 55527.6 of the Food and Agricultural Code
30 is amended to read:

31

55527.6.  

(a)  Licensees or applicants for a license shall be
32required to furnish and maintain an irrevocable guarantee in a form
33and amount satisfactory to the secretary if, within the preceding
34four years, the secretary determines that they have done any of the
35following:

36(1) Engaged in conduct which demonstrates a lack of financial
37responsibility, including, but not limited to, delinquent accounts
38payable, judgments of liability, insolvency, or bankruptcy.

39(2) Failed to assure future financial responsibility unless an
40irrevocable guarantee is provided.

P137  1(3) Otherwise violated this chapter which resulted in license
2revocation.

3(b) The irrevocable guarantee may include a personal or
4corporate guarantee, a certificate of deposit, a bank letter of credit,
5or a surety bond, as determined to be appropriate by the secretary.

6(c) The guarantee shall not be less than ten thousand dollars
7($10,000) or 20 percent of the annual dollar volume of business
8based on farm product value returned to the grower, whichever is
9greater, as assurance that the licensee’s or applicant’s business
10will be conducted in accordance with this chapter and that the
11licensee or applicant will pay all amounts due farm products
12creditors.

13(d) The secretary, based on changes in the nature and volume
14of business conducted by the licensee, may require an increase or
15authorize a reduction in the amount of the guarantee, but in no
16case shall the guarantee be reduced below ten thousand dollars
17($10,000). A licensee who is notified by the secretary to provide
18a guarantee in an increased amount shall do so within a reasonable
19time as specified by the secretary. If the licensee fails to do so, the
20secretary may, after a notice and opportunity for a hearing, suspend
21or revoke the license of the licensee.

22

SEC. 70.  

Section 64101 of the Food and Agricultural Code is
23amended to read:

24

64101.  

There is in the state government the Dairy Council of
25California which shall consist of not less than 24, nor more than
2625, members. All members of the council shall be appointed by
27the secretary and may hold office at the pleasure of the secretary.
28The membership of the council shall be as follows:

29(a) There shall be 12 members that are actually engaged in the
30production of milk. These 12 members are the producer members
31of the council.

32(b) There shall be 12 members that are handlers or
33producer-handlers of dairy products. These 12 members are the
34handler members of the council.

35(c) Upon the recommendation of the council, the secretary may
36appoint one person who is neither a producer, handler, or
37producer-handler, and who shall represent the public generally.

38

SEC. 71.  

Section 3513 of the Government Code is amended
39to read:

40

3513.  

As used in this chapter:

P138  1(a) “Employee organization” means any organization that
2includes employees of the state and that has as one of its primary
3purposes representing these employees in their relations with the
4state.

5(b) “Recognized employee organization” means an employee
6organization that has been recognized by the state as the exclusive
7representative of the employees in an appropriate unit.

8(c) “State employee” means any civil service employee of the
9state, and the teaching staff of schools under the jurisdiction of the
10State Department of Education or the Superintendent of Public
11Instruction, except managerial employees, confidential employees,
12 supervisory employees, employees of the Department of Human
13Resources, professional employees of the Department of Finance
14engaged in technical or analytical state budget preparation other
15than the auditing staff, professional employees in the
16Personnel/Payroll Services Division of the Controller’s office
17engaged in technical or analytical duties in support of the state’s
18personnel and payroll systems other than the training staff,
19employees of the Legislative Counsel Bureau, employees of the
20Bureau of State Audits, employees of the office of the Inspector
21General, employees of the board, conciliators employed by the
22California State Mediation and Conciliation Service, employees
23of the Office of the State Chief Information Officer except as
24otherwise provided in Section 11546.5, and intermittent athletic
25inspectors who are employees of the State Athletic Commission.

26(d) “Mediation” means effort by an impartial third party to assist
27in reconciling a dispute regarding wages, hours, and other terms
28and conditions of employment between representatives of the
29public agency and the recognized employee organization or
30recognized employee organizations through interpretation,
31suggestion, and advice.

32(e) “Managerial employee” means any employee having
33significant responsibilities for formulating or administering agency
34or departmental policies and programs or administering an agency
35or department.

36(f) “Confidential employee” means any employee who is
37required to develop or present management positions with respect
38to employer-employee relations or whose duties normally require
39access to confidential information contributing significantly to the
40development of management positions.

P139  1(g) “Supervisory employee” means any individual, regardless
2of the job description or title, having authority, in the interest of
3the employer, to hire, transfer, suspend, lay off, recall, promote,
4discharge, assign, reward, or discipline other employees, or
5responsibility to direct them, or to adjust their grievances, or
6effectively to recommend this action, if, in connection with the
7foregoing, the exercise of this authority is not of a merely routine
8or clerical nature, but requires the use of independent judgment.
9Employees whose duties are substantially similar to those of their
10subordinates shall not be considered to be supervisory employees.

11(h) “Board” means the Public Employment Relations Board.
12The Educational Employment Relations Board shall be renamed
13the Public Employment Relations Board as provided in Section
143540. The powers and duties of the board described in Section
153541.3 shall also apply, as appropriate, to this chapter.

16(i) “Maintenance of membership” means that all employees
17who voluntarily are, or who voluntarily become, members of a
18recognized employee organization shall remain members of that
19employee organization in good standing for a period as agreed to
20by the parties pursuant to a memorandum of understanding,
21commencing with the effective date of the memorandum of
22understanding. A maintenance of membership provision shall not
23apply to any employee who within 30 days prior to the expiration
24of the memorandum of understanding withdraws from the
25employee organization by sending a signed withdrawal letter to
26the employee organization and a copy to the Controller’s office.

27(j) “State employer,” or “employer,” for the purposes of
28bargaining or meeting and conferring in good faith, means the
29Governor or his or her designated representatives.

30(k) “Fair share fee” means the fee deducted by the state
31employer from the salary or wages of a state employee in an
32appropriate unit who does not become a member of and financially
33support the recognized employee organization. The fair share fee
34shall be used to defray the costs incurred by the recognized
35employee organization in fulfilling its duty to represent the
36 employees in their employment relations with the state, and shall
37not exceed the standard initiation fee, membership dues, and
38general assessments of the recognized employee organization.

39

SEC. 72.  

Section 3527 of the Government Code is amended
40to read:

P140  1

3527.  

As used in this chapter:

2(a) “Employee” means a civil service employee of the State of
3California. The “State of California” as used in this chapter
4includes those state agencies, boards, and commissions as may be
5designated by law that employ civil service employees, except the
6University of California, Hastings College of the Law, and the
7California State University.

8(b) “Excluded employee,” means all managerial employees, as
9defined in subdivision (e) of Section 3513, all confidential
10employees, as defined in subdivision (f) of Section 3513, and all
11supervisory employees, as defined in subdivision (g) of Section
123513, and all civil service employees of the Department of Human
13Resources, professional employees of the Department of Finance
14engaged in technical or analytical state budget preparation other
15than the auditing staff, professional employees in the
16Personnel/Payroll Services Division of the Controller’s office
17engaged in technical or analytical duties in support of the state’s
18personnel and payroll systems other than the training staff,
19employees of the Legislative Counsel Bureau, employees of the
20Bureau of State Audits, employees of the Public Employment
21Relations Board, conciliators employed by the California State
22Mediation and Conciliation Service, employees of the office of
23the State Chief Information Officer except as provided in Section
2411546.5, and intermittent athletic inspectors who are employees
25of the State Athletic Commission.

26(c) “Supervisory employee organization” means an organization
27that represents members who are supervisory employees under
28subdivision (g) of Section 3513.

29(d) “Excluded employee organization” means an organization
30that includes excluded employees of the state, as defined in
31subdivision (b), and that has as one of its primary purposes
32representing its members in employer-employee relations.
33Excluded employee organization includes supervisory employee
34organizations.

35(e) “State employer” or “employer,” for purposes of meeting
36and conferring on matters relating to supervisory
37employer-employee relations, means the Governor or his or her
38designated representatives.

39

SEC. 73.  

Section 7480 of the Government Code, as amended
40by Section 2 of Chapter 304 of the Statutes of 2011, is repealed.

P141  1

SEC. 74.  

Section 7522.20 of the Government Code is amended
2to read:

3

7522.20.  

(a) Each retirement system that offers a defined
4benefit plan for nonsafety members of the system shall use the
5formula prescribed by this section. The defined benefit plan shall
6provide a pension at retirement for service equal to the percentage
7of the member’s final compensation set forth opposite the
8member’s age at retirement, taken to the preceding quarter year,
9in the following table, multiplied by the number of years of service
10in the system as a nonsafety member. A member may retire for
11service under this section after five years of service and upon
12reaching 52 years of age.


13

 

Age of RetirementFraction

52   

1.000

5214   

1.025

5212   

1.050

5234   

1.075

53   ......

1.100

5314   

1.125

5312   

1.150

5334   

1.175

54   

1.200

5414   

1.225

5412   

1.250

5434   

1.275

55   

1.300

5514   

1.325

5512   

1.350

5534   

1.375

56   

1.400

5614   

1.425

5612   

1.450

5634   

1.475

57   

1.500

5714   

1.525

5712   

1.550

5734   

1.575

58   

1.600

5814   

1.625

5812   

1.650

5834   

1.675

59   

1.700

5914   

1.725

5912   

1.750

5934   

1.775

60   

1.800

6014   

1.825

6012   

1.850

6034   

1.875

61   

1.900

6114   

1.925

6112   

1.950

6134   

1.975

62   

2.000

6214   

2.025

6212   

2.050

6234   

2.075

63   

2.100

6314   

2.125

6312   

2.150

6334   

2.175

64   

2.200

6414   

2.225

6412   

2.250

6434   

2.275

65   

2.300

6514   

2.325

6512   

2.350

6534   

2.375

66   

2.400

6614   

2.425

6612   

2.450

6634   

2.475

67   

2.500

 

P142 37(b) Pensionable compensation used to calculate the defined
38benefit shall be limited as described in Section 7522.10.

P143  1(c) A new member of the State Teachers’ Retirement System
2shall be subject to the formula established pursuant to Section
324202.6 of the Education Code.

4

SEC. 75.  

Section 7522.56 of the Government Code is amended
5to read:

6

7522.56.  

(a) This section shall apply to any person who is
7receiving a pension benefit from a public retirement system and
8shall supersede any other provision in conflict with this section.

9(b) A retired person shall not serve, be employed by, or be
10employed through a contract directly by, a public employer in the
11same public retirement system from which the retiree receives the
12benefit without reinstatement from retirement, except as permitted
13by this section.

14(c) A person who retires from a public employer may serve
15without reinstatement from retirement or loss or interruption of
16benefits provided by the retirement system upon appointment by
17the appointing power of a public employer either during an
18 emergency to prevent stoppage of public business or because the
19retired person has skills needed to perform work of limited
20duration.

21(d) Appointments of the person authorized under this section
22shall not exceed a total for all employers in that public retirement
23system of 960 hours or other equivalent limit, in a calendar or
24fiscal year, depending on the administrator of the system. The rate
25of pay for the employment shall not be less than the minimum,
26nor exceed the maximum, paid by the employer to other employees
27performing comparable duties, divided by 173.333 to equal an
28hourly rate. A retired person whose employment without
29reinstatement is authorized by this section shall acquire no service
30credit or retirement rights under this section with respect to the
31employment unless he or she reinstates from retirement.

32(e) (1) Notwithstanding subdivision (c), any retired person shall
33not be eligible to serve or be employed by a public employer if,
34during the 12-month period prior to an appointment described in
35this section, the retired person received any unemployment
36insurance compensation arising out of prior employment subject
37to this section with a public employer. A retiree shall certify in
38writing to the employer upon accepting an offer of employment
39that he or she is in compliance with this requirement.

P144  1(2) A retired person who accepts an appointment after receiving
2unemployment insurance compensation as described in this
3subdivision shall terminate that employment on the last day of the
4current pay period and shall not be eligible for reappointment
5subject to this section for a period of 12 months following the last
6day of employment.

7(f) A retired person shall not be eligible to be employed pursuant
8to this section for a period of 180 days following the date of
9retirement unless he or she meets one of the following conditions:

10(1) The employer certifies the nature of the employment and
11that the appointment is necessary to fill a critically needed position
12before 180 days have passed and the appointment has been
13approved by the governing body of the employer in a public
14meeting. The appointment may not be placed on a consent calendar.

15(2) The state employer certifies the nature of the employment
16and that the appointment is necessary to fill a critically needed
17state employment position before 180 days have passed and the
18appointment has been approved by the Department of Human
19Resources. The department may establish a process to delegate
20appointing authority to individual state agencies, but shall audit
21the process to determine if abuses of the system occur. If necessary,
22the department may assume an agency’s appointing authority for
23retired workers and may charge the department an appropriate
24amount for administering that authority.

25(3) The retiree is eligible to participate in the Faculty Early
26Retirement Program pursuant to a collective bargaining agreement
27with the California State University that existed prior to January
281, 2013, or has been included in subsequent agreements.

29(4) The retiree is a public safety officer or firefighter.

30(g) A retired person who accepted a retirement incentive upon
31retirement shall not be eligible to be employed pursuant to this
32section for a period of 180 days following the date of retirement
33and subdivision (f) shall not apply.

34(h) This section shall not apply to a person who is retired from
35the State Teachers’ Retirement System, and who is subject to
36Section 24214, 24214.5, or 26812 of the Education Code.

37(i) This section shall not apply to (1) a subordinate judicial
38officer whose position, upon retirement, is converted to a judgeship
39pursuant to Section 69615, and he or she returns to work in the
40converted position, and the employer is a trial court, or (2) a retiree
P145  1who takes office as a judge of a court of record pursuant to Article
2VI of the California Constitution or a retiree of the Judges’
3Retirement System I or the Judges’ Retirement System II who is
4appointed to serve as a retired judge.

5

SEC. 76.  

Section 7522.57 of the Government Code is amended
6to read:

7

7522.57.  

(a) This section shall apply to any retired person who
8is receiving a pension benefit from a public retirement system and
9is first appointed on or after January 1, 2013, to a salaried position
10on a state board or commission. This section shall supersede any
11other provision in conflict with this section.

12(b) A person who is retired from a public retirement system
13may serve without reinstatement from retirement or loss or
14interruption of benefits provided that appointment is to a part-time
15state board or commission. A retired person whose employment
16without reinstatement is authorized by this subdivision shall acquire
17no benefits, service credit, or retirement rights with respect to the
18employment. Unless otherwise defined in statute, for the purpose
19of this section, a part-time appointment shall mean an appointment
20with a salary of no more than $60,000 annually, which shall be
21increased in any fiscal year in which a general salary increase is
22provided for state employees. The amount of the increase provided
23by this section shall be comparable to, but shall not exceed, the
24percentage of the general salary increases provided for state
25employees during that fiscal year.

26(c) A person who is retired from the Public Employees’
27Retirement System shall not serve on a full-time basis on a state
28board or commission without reinstatement unless that person
29serves as a nonsalaried member of the board or commission and
30receives only per diem authorized to all members of the board or
31commission. A person who serves as a nonsalaried member of a
32board or commission shall not earn any service credit or benefits
33in the Public Employees’ Retirement System or make contributions
34with respect to the service performed.

35(d) A person retired from a public retirement system other than
36the Public Employees’ Retirement System who is appointed on a
37full-time basis to a state board or commission shall choose one of
38the following options:

39(1) The person may serve as a nonsalaried member of the board
40or commission and continue to receive his or her retirement
P146  1allowance, in addition to any per diem authorized to all members
2of the board or commission. The person shall not earn service
3credit or benefits in the Public Employees’ Retirement System and
4shall not make contributions with respect to the service performed.

5(2)  (A) The person may suspend his or her retirement allowance
6or allowances and instate as a new member of the Public
7Employees’ Retirement System for the service performed on the
8board or commission. The pensionable compensation earned
9pursuant to this paragraph shall not be eligible for reciprocity with
10any other retirement system or plan.

11(B) Upon retiring for service after serving on the board or
12commission, the appointee shall be entitled to reinstatement of any
13suspended benefits, including employer provided retiree health
14benefits, that he or she was entitled to at the time of being
15appointed to the board or commission.

16(e) Notwithstanding subdivisions (c) and (d), a person who
17retires from a public employer may serve without reinstatement
18from retirement or loss or interruption of benefits provided by the
19retirement system upon appointment to a full-time state board
20pursuant to Section 5075 of the Penal Code.

21

SEC. 77.  

Section 7522.72 of the Government Code is amended
22to read:

23

7522.72.  

(a) This section shall apply to a public employee first
24employed by a public employer or first elected or appointed to an
25office before January 1, 2013, and, on and after that date, Section
267522.70 shall not apply.

27(b) (1) If a public employee is convicted by a state or federal
28trial court of any felony under state or federal law for conduct
29arising out of or in the performance of his or her official duties, in
30pursuit of the office or appointment, or in connection with
31obtaining salary, disability retirement, service retirement, or other
32benefits, he or she shall forfeit all accrued rights and benefits in
33any public retirement system in which he or she is a member to
34the extent provided in subdivision (c) and shall not accrue further
35 benefits in that public retirement system, effective on the date of
36the conviction.

37(2) If a public employee who has contact with children as part
38of his or her official duties is convicted of a felony that was
39committed within the scope of his or her official duties against or
40involving a child who he or she has contact with as part of his or
P147  1her official duties, he or she shall forfeit all accrued rights and
2benefits in any public retirement system in which he or she is a
3member to the extent provided in subdivision (c) and shall not
4accrue further benefits in that public retirement system, effective
5on the date of the conviction.

6(c) (1) A public employee shall forfeit all the retirement benefits
7earned or accrued from the earliest date of the commission of any
8felony described in subdivision (b) to the forfeiture date, inclusive.
9The retirement benefits shall remain forfeited notwithstanding any
10reduction in sentence or expungement of the conviction following
11the date of the public employee’s conviction. Retirement benefits
12attributable to service performed prior to the date of the first
13commission of the felony for which the public employee was
14convicted shall not be forfeited as a result of this section.

15(2) For purposes of this subdivision, “forfeiture date” means
16the date of the conviction.

17(d) (1) Any contributions to the public retirement system made
18by the public employee described in subdivision (b) on or after
19the earliest date of the commission of any felony described in
20subdivision (b) shall be returned, without interest, to the public
21employee upon the occurrence of a distribution event unless
22otherwise ordered by a court or determined by the pension
23administrator.

24(2) Any funds returned to the public employee pursuant to
25subdivision (d) shall be disbursed by electronic funds transfer to
26an account of the public employee, in a manner conforming with
27the requirements of the Internal Revenue Code, and the public
28retirement system shall notify the court and the district attorney
29at least three business days before that disbursement of funds.

30(3) For the purposes of this subdivision, a “distribution event”
31means any of the following:

32(A) Separation from employment.

33(B) Death of the member.

34(C) Retirement of the member.

35(e) (1) Upon conviction, a public employee as described in
36subdivision (b) and the prosecuting agency shall notify the public
37employer who employed the public employee at the time of the
38commission of the felony within 60 days of the felony conviction
39of all of the following information:

40(A) The date of conviction.

P148  1(B) The date of the first known commission of the felony.

2(2) The operation of this section is not dependent upon the
3performance of the notification obligations specified in this
4subdivision.

5(f) The public employer that employs or employed a public
6employee described in subdivision (b) and that public employee
7shall each notify the public retirement system in which the public
8employee is a member of that public employee’s conviction within
990 days of the conviction. The operation of this section is not
10dependent upon the performance of the notification obligations
11specified in this subdivision.

12(g) A public retirement system may assess a public employer a
13reasonable amount to reimburse the cost of audit, adjustment, or
14correction, if it determines that the public employer failed to
15comply with this section.

16(h) If a public employee’s conviction is reversed and that
17decision is final, the employee shall be entitled to do either of the
18following:

19(1) Recover the forfeited retirement benefits as adjusted for the
20contributions received pursuant to subdivision (d).

21(2) Redeposit those contributions and interest, as determined
22by the system actuary, and then recover the full amount of the
23forfeited benefits.

24(i) A public employee first employed by a public employer or
25first elected or appointed to an office on or after January 1, 2013,
26shall be subject to Section 7522.74.

27

SEC. 78.  

Section 8164.1 of the Government Code is amended
28to read:

29

8164.1.  

There is in state government a Capitol Area Committee
30consisting of nine members who shall be appointed in the following
31manner:

32(a) Four members of the committee shall be appointed by the
33Governor of which at least one member shall be appointed from
34a list of three candidates submitted by the City of Sacramento and
35at least one member shall be appointed from a list of three
36candidates submitted by the County of Sacramento. Two members
37shall be appointed for a term expiring December 31, 1979, and
38two for a term expiring December 31, 1981.

39(b) Two members shall be appointed by the Speaker of the
40Assembly, one of whom may be a Member of the Assembly, and
P149  1two members shall be appointed by the Senate Rules Committee,
2one of whom may be a Member of the Senate. Legislative members
3of the committee shall meet and, except as otherwise provided by
4the Constitution, advise the department to the extent that the
5advisory participation is not incompatible with their respective
6positions as Members of the Legislature. Of the four appointments
7by the Legislature, two shall be appointed for a term expiring
8December 31, 1979, and two for a term expiring December 31,
91981.

10(c) One shall be appointed by and serve at the pleasure of the
11director.

12Subsequent appointments pursuant to subdivisions (a) and (b)
13shall be for terms of four years, ending on December 31 of the
14fourth year after the end of the prior term, except that appointments
15to fill vacancies occurring for any reason other than the expiration
16of the term shall be for the unexpired portion of the term in which
17they occur. The members of the board shall hold office until their
18 successors are appointed and qualify.

19The members of the committee shall not receive compensation
20from the state for their services under this article but, when called
21to attend a meeting of the committee, shall be reimbursed for their
22actual and necessary expenses incurred in connection with the
23meeting in accordance with the rules of the Department of Human
24Resources.

25(d) This section shall remain in effect only until January 1, 2018,
26and as of that date is repealed, unless a later enacted statute, that
27is enacted before January 1, 2018, deletes or extends that date.

28

SEC. 79.  

The heading of Chapter 3.1 (commencing with
29Section 8240) of Division 1 of Title 2 of the Government Code is
30amended to read:

31 

32Chapter  3.1. Commission on the Status of Women and
33Girls
34

 

35

SEC. 80.  

Section 11019 of the Government Code is amended
36to read:

37

11019.  

(a) Any department or authority specified in subdivision
38(b) may, upon determining that an advance payment is essential
39for the effective implementation of a program within the provisions
40of this section, and to the extent funds are available, advance to a
P150  1community-based private nonprofit agency with which it has
2contracted, pursuant to federal law and related state law, for the
3delivery of services, not to exceed 25 percent of the annual
4allocation to be made pursuant to the contract and those laws during
5the fiscal year to the private nonprofit agency. Advances in excess
6of 25 percent may be made on contracts financed by a federal
7program when the advances are not prohibited by federal
8guidelines. Advance payments may be provided for services to be
9performed under any contract with a total annual contract amount
10of four hundred thousand dollars ($400,000) or less. This amount
11shall be increased by 5 percent, as determined by the Department
12of Finance, for each year commencing with 1989. Advance
13payments may also be made with respect to any contract that the
14Department of Finance determines has been entered into with any
15community-based private nonprofit agency with modest reserves
16and potential cashflow problems. No advance payment shall be
17granted if the total annual contract exceeds four hundred thousand
18dollars ($400,000), without the prior approval of the Department
19of Finance.

20The specific departments and authority mentioned in subdivision
21(b) shall develop a plan to establish control procedures for advance
22payments. Each plan shall include a procedure whereby the
23department or authority determines whether or not an advance
24payment is essential for the effective implementation of a particular
25program being funded. Each plan shall be approved by the
26Department of Finance.

27(b) Subdivision (a) shall apply to the Emergency Medical
28Services Authority, the California Department of Aging, the State
29Department of Developmental Services, the State Department of
30Alcohol and Drug Programs, the Department of Corrections and
31Rehabilitation, including the Division of Juvenile Justice, the
32Department of Community Services and Development, the
33Employment Development Department, the State Department of
34Healthbegin insert Careend insert Services, the State Department of State Hospitals, the
35Department of Rehabilitation, the State Department of Social
36Services, the Department of Child Support Services, the State
37Department of Education, the area boards on developmental
38disabilities, the State Council on Developmental Disabilities, the
39Office of Statewide Health Planning and Development, and the
P151  1California Environmental Protection Agency, including all boards
2and departments contained therein.

3Subdivision (a) shall also apply to the California Health and
4Human Services Agency, which may make advance payments,
5pursuant to the requirements of that subdivision, to multipurpose
6senior services projects as established in Chapter 8 (commencing
7with Section 9560) of Division 8.5 of the Welfare and Institutions
8Code.

9Subdivision (a) shall also apply to the Natural Resources Agency,
10including all boards and departments contained in that agency,
11which may make advance payments pursuant to the requirements
12of that subdivision with respect to grants and contracts awarded
13to certified local community conservation corps.

14(c) A county may, upon determining that an advance payment
15is essential for the effective implementation of a program within
16the provisions of this section, and to the extent funds are available,
17and not more frequently than once each fiscal year, advance to a
18community-based private nonprofit agency with which it has
19contracted, pursuant to any applicable federal or state law, for the
20delivery of services, not to exceed 25 percent of the annual
21allocation to be made pursuant to the contract and those laws,
22during the fiscal year to the private nonprofit agency.

23

SEC. 81.  

Section 11020 of the Government Code is amended
24to read:

25

11020.  

(a) Unless otherwise provided by law, all offices of
26every state agency shall be kept open for the transaction of business
27from 8 a.m. until 5 p.m. of each day from Monday to Friday,
28inclusive, other than legal holidays. However, any state agency or
29division, branch, or office thereof may be kept open for the
30transaction of business on other hours and on other days than those
31specified in this subdivision.

32(b) If this section is in conflict with a memorandum of
33understanding reached pursuant to Chapter 12 (commencing with
34Section 3560) of Division 4 of Title 1, the memorandum of
35understanding shall be controlling without further legislative action,
36except that if the memorandum of understanding requires the
37expenditure of funds, the memorandum shall not become effective
38unless approved by the Legislature in the annual Budget Act.

P152  1(c) Subdivision (a) shall not apply to any fair or association
2specified under Division 3 (commencing with Section 3001) of
3the Food and Agricultural Code.

4

SEC. 82.  

Section 11435.15 of the Government Code is amended
5to read:

6

11435.15.  

(a) The following state agencies shall provide
7language assistance in adjudicative proceedings to the extent
8provided in this article:

9(1) Agricultural Labor Relations Board.

10(2) State Department of Alcohol and Drug Programs.

11(3) State Athletic Commission.

12(4) California Unemployment Insurance Appeals Board.

13(5) Board of Parole Hearings.

14(6) State Board of Barbering and Cosmetology.

15(7) State Department of Developmental Services.

16(8) Public Employment Relations Board.

17(9) Franchise Tax Board.

18(10) State Department of Health Care Services.

19(11) Department of Housing and Community Development.

20(12) Department of Industrial Relations.

21(13) State Department of State Hospitals.

22(14) Department of Motor Vehicles.

23(15) Notary Public Section, Office of the Secretary of State.

24(16) Public Utilities Commission.

25(17) Office of Statewide Health Planning and Development.

26(18) State Department of Social Services.

27(19) Workers’ Compensation Appeals Board.

28(20) Division of Juvenile Justice.

29(21) Division of Juvenile Parole Operations.

30(22) Department of Insurance.

31(23) State Personnel Board.

32(24) California Board of Podiatric Medicine.

33(25) Board of Psychology.

34(b) Nothing in this section prevents an agency other than an
35agency listed in subdivision (a) from electing to adopt any of the
36procedures in this article, provided that any selection of an
37interpreter is subject to Section 11435.30.

38(c) Nothing in this section prohibits an agency from providing
39an interpreter during a proceeding to which this chapter does not
P153  1apply, including an informal factfinding or informal investigatory
2hearing.

3(d) This article applies to an agency listed in subdivision (a)
4notwithstanding a general provision that this chapter does not apply
5to some or all of an agency’s adjudicative proceedings.

6

SEC. 83.  

Section 11552 of the Government Code is amended
7to read:

8

11552.  

(a) Effective January 1, 1988, an annual salary of
9eighty-five thousand four hundred two dollars ($85,402) shall be
10paid to each of the following:

11(1) Commissioner of Business Oversight.

12(2) Director of Transportation.

13(3) Real Estate Commissioner.

14(4) Director of Social Services.

15(5) Director of Water Resources.

16(6) Director of General Services.

17(7) Director of Motor Vehicles.

18(8) Executive Officer of the Franchise Tax Board.

19(9) Director of Employment Development.

20(10) Director of Alcoholic Beverage Control.

21(11) Director of Housing and Community Development.

22(12) Director of Alcohol and Drug Programs.

23(13) Director of Statewide Health Planning and Development.

24(14) Director of the Department of Human Resources.

25(15) Director of Health Care Services.

26(16) Director of State Hospitals.

27(17) Director of Developmental Services.

28(18) State Public Defender.

29(19) Director of the California State Lottery.

30(20) Director of Fish and Wildlife.

31(21) Director of Parks and Recreation.

32(22) Director of Rehabilitation.

33(23) Director of the Office of Administrative Law.

34(24) Director of Consumer Affairs.

35(25) Director of Forestry and Fire Protection.

36(26) The Inspector General pursuant to Section 6125 of the
37Penal Code.

38(27) Director of Child Support Services.

39(28) Director of Industrial Relations.

40(29) Director of Toxic Substances Control.

P154  1(30) Director of Pesticide Regulation.

2(31) Director of Managed Health Care.

3(32) Director of Environmental Health Hazard Assessment.

4(33) Director of Technology.

5(34) Director of California Bay-Delta Authority.

6(35) Director of California Conservation Corps.

7(b) The annual compensation provided by this section shall be
8increased in any fiscal year in which a general salary increase is
9provided for state employees. The amount of the increase provided
10by this section shall be comparable to, but shall not exceed, the
11percentage of the general salary increases provided for state
12employees during that fiscal year.

13

SEC. 84.  

Section 12460 of the Government Code is amended
14to read:

15

12460.  

The Controller shall submit an annual report to the
16Governor containing a statement of the funds of the state, its
17revenues, and the public expenditures during the preceding fiscal
18year. The annual report shall be known as the budgetary-legal basis
19annual report and prepared in a manner that will account for prior
20year adjustments, fund balances, encumbrances, deferred payroll,
21revenues, expenditures, and other components on the same basis
22as that of the applicable Governor’s Budget and the applicable
23Budget Act, as determined by the Director of Finance in
24consultation with the Controller. If the Governor’s Budget or the
25Budget Act does not provide the applicable information for this
26purpose, funds shall be accounted for in the budgetary-legal basis
27annual report in a manner prescribed by Section 13344. The
28requirements of this section shall apply beginning with the issuance
29of the budgetary-legal basis annual report for the 2013-14 fiscal
30year. The Controller shall confer with the Department of Finance
31to propose and develop methods to facilitate these changes pursuant
32to Section 13344, including methods to ensure that information
33related to encumbrances and deferred payroll continue to be listed
34in the state’s financial statements, as deemed appropriate by the
35Controller.

36The Controller shall also issue a comprehensive annual financial
37report prepared strictly in accordance with “Generally Accepted
38Accounting Principles.”

P155  1The annual reports referenced in this section shall be compiled
2and published by the Controller in the time, form, and manner
3prescribed by him or her.

4

SEC. 85.  

Section 12838.14 of the Government Code is amended
5to read:

6

12838.14.  

(a) Notwithstanding any other provision of law,
7money recovered by the Department of Corrections and
8Rehabilitation from a union paid leave settlement agreement shall
9be credited to the fiscal year in which the recovered money is
10received. An amount not to exceed the amount of the money
11received shall be available for expenditure to the Department of
12Corrections and Rehabilitation for the fiscal year in which the
13recovered money is received, upon approval of the Department of
14Finance. If this statute is enacted on or after July 1, 2012, any
15money received prior to July 1, 2012, for purposes of this section,
16shall be available for expenditure for the 2012-13 fiscal year.

17(b) The Department of Corrections and Rehabilitation shall
18identify and report the total amount collected annually to the
19Department of Finance.

20(c) This section shall become inoperative on June 30, 2021, and,
21as of January 1, 2022, is repealed, unless a later enacted statute,
22that becomes operative on or before January 1, 2022, deletes or
23extends the dates on which it becomes inoperative and is repealed.

24

SEC. 86.  

Section 12926 of the Government Code is amended
25to read:

26

12926.  

As used in this part in connection with unlawful
27practices, unless a different meaning clearly appears from the
28context:

29(a) “Affirmative relief” or “prospective relief” includes the
30authority to order reinstatement of an employee, awards of backpay,
31reimbursement of out-of-pocket expenses, hiring, transfers,
32reassignments, grants of tenure, promotions, cease and desist
33orders, posting of notices, training of personnel, testing, expunging
34of records, reporting of records, and any other similar relief that
35is intended to correct unlawful practices under this part.

36(b) “Age” refers to the chronological age of any individual who
37has reached his or her 40th birthday.

38(c) “Employee” does not include any individual employed by
39his or her parents, spouse, or child, or any individual employed
P156  1under a special license in a nonprofit sheltered workshop or
2rehabilitation facility.

3(d) “Employer” includes any person regularly employing five
4or more persons, or any person acting as an agent of an employer,
5directly or indirectly, the state or any political or civil subdivision
6of the state, and cities, except as follows:

7“Employer” does not include a religious association or
8corporation not organized for private profit.

9(e) “Employment agency” includes any person undertaking for
10compensation to procure employees or opportunities to work.

11(f) “Essential functions” means the fundamental job duties of
12the employment position the individual with a disability holds or
13desires. “Essential functions” does not include the marginal
14functions of the position.

15(1) A job function may be considered essential for any of several
16reasons, including, but not limited to, any one or more of the
17following:

18(A) The function may be essential because the reason the
19position exists is to perform that function.

20(B) The function may be essential because of the limited number
21of employees available among whom the performance of that job
22function can be distributed.

23(C) The function may be highly specialized, so that the
24incumbent in the position is hired for his or her expertise or ability
25to perform the particular function.

26(2) Evidence of whether a particular function is essential
27includes, but is not limited to, the following:

28(A) The employer’s judgment as to which functions are essential.

29(B) Written job descriptions prepared before advertising or
30interviewing applicants for the job.

31(C) The amount of time spent on the job performing the function.

32(D) The consequences of not requiring the incumbent to perform
33the function.

34(E) The terms of a collective bargaining agreement.

35(F) The work experiences of past incumbents in the job.

36(G) The current work experience of incumbents in similar jobs.

37(g) (1) “Genetic information” means, with respect to any
38individual, information about any of the following:

39(A) The individual’s genetic tests.

40(B) The genetic tests of family members of the individual.

P157  1(C) The manifestation of a disease or disorder in family members
2of the individual.

3(2) “Genetic information” includes any request for, or receipt
4of, genetic services, or participation in clinical research that
5includes genetic services, by an individual or any family member
6of the individual.

7(3) “Genetic information” does not include information about
8the sex or age of any individual.

9(h) “Labor organization” includes any organization that exists
10and is constituted for the purpose, in whole or in part, of collective
11bargaining or of dealing with employers concerning grievances,
12terms or conditions of employment, or of other mutual aid or
13protection.

14(i) “Medical condition” means either of the following:

15(1) Any health impairment related to or associated with a
16diagnosis of cancer or a record or history of cancer.

17(2) Genetic characteristics. For purposes of this section, “genetic
18characteristics” means either of the following:

19(A) Any scientifically or medically identifiable gene or
20chromosome, or combination or alteration thereof, that is known
21to be a cause of a disease or disorder in a person or his or her
22offspring, or that is determined to be associated with a statistically
23increased risk of development of a disease or disorder, and that is
24presently not associated with any symptoms of any disease or
25disorder.

26(B) Inherited characteristics that may derive from the individual
27or family member, that are known to be a cause of a disease or
28disorder in a person or his or her offspring, or that are determined
29to be associated with a statistically increased risk of development
30of a disease or disorder, and that are presently not associated with
31any symptoms of any disease or disorder.

32(j) “Mental disability” includes, but is not limited to, all of the
33following:

34(1) Having any mental or psychological disorder or condition,
35such as intellectual disability, organic brain syndrome, emotional
36or mental illness, or specific learning disabilities, that limits a
37major life activity. For purposes of this section:

38(A) “Limits” shall be determined without regard to mitigating
39measures, such as medications, assistive devices, or reasonable
P158  1accommodations, unless the mitigating measure itself limits a
2major life activity.

3(B) A mental or psychological disorder or condition limits a
4major life activity if it makes the achievement of the major life
5activity difficult.

6(C) “Major life activities” shall be broadly construed and shall
7include physical, mental, and social activities and working.

8(2) Any other mental or psychological disorder or condition not
9described in paragraph (1) that requires special education or related
10services.

11(3) Having a record or history of a mental or psychological
12disorder or condition described in paragraph (1) or (2), which is
13known to the employer or other entity covered by this part.

14(4) Being regarded or treated by the employer or other entity
15covered by this part as having, or having had, any mental condition
16that makes achievement of a major life activity difficult.

17(5) Being regarded or treated by the employer or other entity
18covered by this part as having, or having had, a mental or
19psychological disorder or condition that has no present disabling
20effect, but that may become a mental disability as described in
21paragraph (1) or (2).

22“Mental disability” does not include sexual behavior disorders,
23compulsive gambling, kleptomania, pyromania, or psychoactive
24substance use disorders resulting from the current unlawful use of
25controlled substances or other drugs.

26(k) “On the bases enumerated in this part” means or refers to
27discrimination on the basis of one or more of the following: race,
28religious creed, color, national origin, ancestry, physical disability,
29mental disability, medical condition, genetic information, marital
30status, sex, age, or sexual orientation.

31(l) “Physical disability” includes, but is not limited to, all of the
32following:

33(1) Having any physiological disease, disorder, condition,
34cosmetic disfigurement, or anatomical loss that does both of the
35following:

36(A) Affects one or more of the following body systems:
37neurological, immunological, musculoskeletal, special sense
38organs, respiratory, including speech organs, cardiovascular,
39reproductive, digestive, genitourinary, hemic and lymphatic, skin,
40and endocrine.

P159  1(B) Limits a major life activity. For purposes of this section:

2(i) “Limits” shall be determined without regard to mitigating
3measures such as medications, assistive devices, prosthetics, or
4reasonable accommodations, unless the mitigating measure itself
5limits a major life activity.

6(ii) A physiological disease, disorder, condition, cosmetic
7disfigurement, or anatomical loss limits a major life activity if it
8makes the achievement of the major life activity difficult.

9(iii) “Major life activities” shall be broadly construed and
10includes physical, mental, and social activities and working.

11(2) Any other health impairment not described in paragraph (1)
12that requires special education or related services.

13(3) Having a record or history of a disease, disorder, condition,
14cosmetic disfigurement, anatomical loss, or health impairment
15described in paragraph (1) or (2), which is known to the employer
16or other entity covered by this part.

17(4) Being regarded or treated by the employer or other entity
18covered by this part as having, or having had, any physical
19condition that makes achievement of a major life activity difficult.

20(5) Being regarded or treated by the employer or other entity
21covered by this part as having, or having had, a disease, disorder,
22condition, cosmetic disfigurement, anatomical loss, or health
23impairment that has no present disabling effect but may become
24a physical disability as described in paragraph (1) or (2).

25(6) “Physical disability” does not include sexual behavior
26disorders, compulsive gambling, kleptomania, pyromania, or
27psychoactive substance use disorders resulting from the current
28unlawful use of controlled substances or other drugs.

29(m) Notwithstanding subdivisions (j) and (l), if the definition
30of “disability” used in the federal Americans with Disabilities Act
31of 1990 (Public Law 101-336) would result in broader protection
32of the civil rights of individuals with a mental disability or physical
33disability, as defined in subdivision (j) or (l), or would include any
34medical condition not included within those definitions, then that
35broader protection or coverage shall be deemed incorporated by
36reference into, and shall prevail over conflicting provisions of, the
37definitions in subdivisions (j) and (l).

38(n) “Race, religious creed, color, national origin, ancestry,
39physical disability, mental disability, medical condition, genetic
40information, marital status, sex, age, or sexual orientation” includes
P160  1a perception that the person has any of those characteristics or that
2the person is associated with a person who has, or is perceived to
3have, any of those characteristics.

4(o) “Reasonable accommodation” may include either of the
5following:

6(1) Making existing facilities used by employees readily
7accessible to, and usable by, individuals with disabilities.

8(2) Job restructuring, part-time or modified work schedules,
9reassignment to a vacant position, acquisition or modification of
10equipment or devices, adjustment or modifications of examinations,
11training materials or policies, the provision of qualified readers or
12interpreters, and other similar accommodations for individuals
13with disabilities.

14(p) “Religious creed,” “religion,” “religious observance,”
15“religious belief,” and “creed” include all aspects of religious
16belief, observance, and practice, including religious dress and
17grooming practices. “Religious dress practice” shall be construed
18broadly to include the wearing or carrying of religious clothing,
19head or face coverings, jewelry, artifacts, and any other item that
20is part of the observance by an individual of his or her religious
21creed. “Religious grooming practice” shall be construed broadly
22to include all forms of head, facial, and body hair that are part of
23the observance by an individual of his or her religious creed.

24(q) (1) “Sex” includes, but is not limited to, the following:

25(A) Pregnancy or medical conditions related to pregnancy.

26(B) Childbirth or medical conditions related to childbirth.

27(C) Breastfeeding or medical conditions related to breastfeeding.

28(2) “Sex” also includes, but is not limited to, a person’s gender.
29“Gender” means sex, and includes a person’s gender identity and
30gender expression. “Gender expression” means a person’s
31gender-related appearance and behavior whether or not
32stereotypically associated with the person’s assigned sex at birth.

33(r) “Sexual orientation” means heterosexuality, homosexuality,
34and bisexuality.

35(s) “Supervisor” means any individual having the authority, in
36 the interest of the employer, to hire, transfer, suspend, layoff, recall,
37promote, discharge, assign, reward, or discipline other employees,
38or the responsibility to direct them, or to adjust their grievances,
39or effectively to recommend that action, if, in connection with the
P161  1foregoing, the exercise of that authority is not of a merely routine
2or clerical nature, but requires the use of independent judgment.

3(t) “Undue hardship” means an action requiring significant
4difficulty or expense, when considered in light of the following
5factors:

6(1) The nature and cost of the accommodation needed.

7(2) The overall financial resources of the facilities involved in
8the provision of the reasonable accommodations, the number of
9persons employed at the facility, and the effect on expenses and
10resources or the impact otherwise of these accommodations upon
11the operation of the facility.

12(3) The overall financial resources of the covered entity, the
13overall size of the business of a covered entity with respect to the
14number of employees, and the number, type, and location of its
15facilities.

16(4) The type of operations, including the composition, structure,
17and functions of the workforce of the entity.

18(5) The geographic separateness, administrative, or fiscal
19relationship of the facility or facilities.

20

SEC. 87.  

Section 14837 of the Government Code is amended
21to read:

22

14837.  

As used in this chapter:

23(a) “Department” means the Department of General Services.

24(b) “Director” means the Director of General Services.

25(c) “Manufacturer” means a business that meets both of the
26following requirements:

27(1) It is primarily engaged in the chemical or mechanical
28transformation of raw materials or processed substances into new
29products.

30(2) It is classified between Codes 31 to 33, inclusive, of the
31North American Industry Classification System.

32(d) (1) “Small business” means an independently owned and
33operated business that is not dominant in its field of operation, the
34principal office of which is located in California, the officers of
35which are domiciled in California, and which, together with
36affiliates, has 100 or fewer employees, and average annual gross
37receipts of ten million dollars ($10,000,000) or less over the
38previous three years, or is a manufacturer, as defined in subdivision
39(c), with 100 or fewer employees.

P162  1(2) “Microbusiness” is a small business which, together with
2affiliates, has average annual gross receipts of two million five
3hundred thousand dollars ($2,500,000) or less over the previous
4three years, or is a manufacturer, as defined in subdivision (c),
5with 25 or fewer employees.

6(3) The director shall conduct a biennial review of the average
7annual gross receipt levels specified in this subdivision and may
8adjust that level to reflect changes in the California Consumer
9Price Index for all items. To reflect unique variations or
10characteristics of different industries, the director may establish,
11to the extent necessary, either higher or lower qualifying standards
12than those specified in this subdivision, or alternative standards
13based on other applicable criteria.

14(4) Standards applied under this subdivision shall be established
15by regulation, in accordance with Chapter 3.5 (commencing with
16Section 11340) of Part 1 of Division 3 of Title 2, and shall preclude
17the qualification of businesses that are dominant in their industry.
18In addition, the standards shall provide that the certified small
19business or microbusiness shall provide goods or services that
20contribute to the fulfillment of the contract requirements by
21performing a commercially useful function, as defined below:

22(A) A certified small business or microbusiness is deemed to
23perform a commercially useful function if the business does all of
24the following:

25(i) Is responsible for the execution of a distinct element of the
26 work of the contract.

27(ii) Carries out its obligation by actually performing, managing,
28or supervising the work involved.

29(iii) Performs work that is normal for its business services and
30functions.

31(iv) Is responsible, with respect to products, inventories,
32materials, and supplies required for the contract, for negotiating
33price, determining quality and quantity, ordering, installing, if
34applicable, and making payment.

35(v) Is not further subcontracting a portion of the work that is
36greater than that expected to be subcontracted by normal industry
37practices.

38(B) A contractor, subcontractor, or supplier will not be
39considered to perform a commercially useful function if the
40contractor’s, subcontractor’s, or supplier’s role is limited to that
P163  1of an extra participant in a transaction, contract, or project through
2which funds are passed in order to obtain the appearance of small
3business or microbusiness participation.

4(e) “Disabled veteran business enterprise” means an enterprise
5that has been certified as meeting the qualifications established by
6paragraph (7) of subdivision (b) of Section 999 of the Military and
7Veterans Code.

8

SEC. 88.  

The heading of Chapter 3 (commencing with Section
915570) of Part 8.5 of Division 3 of Title 2 of the Government Code
10 is repealed.

11

SEC. 89.  

Section 15606.5 of the Government Code, as added
12by Chapter 1167 of the Statutes of 1967, is amended and
13renumbered to read:

14

15606.7  

Training of assessors and their staffs under Sections
1515606 and 15608 shall be provided by the board on a
16nonreimbursable basis.

17

SEC. 90.  

Section 15814.25 of the Government Code, as added
18by Section 1 of Chapter 234 of the Statutes of 1997, is amended
19and renumbered to read:

20

15814.29  

Notwithstanding subdivision (f) of Section 15814.11,
21for the purposes of this chapter “state agency” also shall include
22any local government as defined in subdivision (b) of Section
235921.

24

SEC. 91.  

Section 15819.30 of the Government Code, as added
25by Section 8 of Chapter 585 of the Statutes of 1993, is amended
26and renumbered to read:

27

15819.17  

(a) The necessary funding for the construction of
28the Secure Substance Abuse Treatment Facility authorized by
29Section 5 of Chapter 585 of the Statutes of 1993 may be obtained
30through lease-purchase financing arrangements. Sections 15819.1
31to 15819.13, inclusive, and Section 15819.15 shall apply for this
32purpose provided that the following apply:

33(1) “Prison facility” as used in Section 15819.1 includes the
34Secure Substance Abuse Treatment Facility.

35(2) Notwithstanding the limitation imposed by Section 15819.3
36regarding the amount of bonds to be issued for construction,
37acquisition, and financing of prison facilities, the State Public
38Works Board may issue additional bonds in order to pay the costs
39of acquiring and constructing or refinancing the Secure Substance
40Abuse Treatment Facility.

P164  1(b) Notwithstanding Section 13340, funds derived from the
2lease-purchase financing methods for the Secure Substance Abuse
3Treatment Facility deposited in the State Treasury, are hereby
4continuously appropriated to the State Public Works Board on
5behalf of the Department of Corrections and Rehabilitation for the
6purpose of acquiring and constructing or refinancing the prison
7facility so financed.

8The sum of ninety-three million five hundred thousand dollars
9($93,500,000) shall be available for capital outlay for the Secure
10Substance Abuse Treatment Facility from funds derived from
11lease-purchase financing methods.

12Funds so appropriated shall be available as necessary for the
13purposes of site acquisition, site studies and suitability reports,
14environmental studies, master planning, architectural programming,
15schematics, preliminary plans, working drawings, construction,
16and long lead and equipment items. A maximum of two million
17dollars ($2,000,000) of the funds may be available for mitigation
18costs of local government and school districts.

19(c) The State Public Works Board may authorize the
20augmentation of the cost of construction of the project set forth in
21this section pursuant to the board’s authority under Section
2213332.11. In addition, the State Public Works Board may authorize
23any additional amounts necessary to establish a reasonable
24construction reserve and to pay the costs of financing, including
25the payment of interest during acquisition or construction of the
26project, the cost of financing a debt service reserve fund, and the
27cost of issuance of permanent financing for the project. This
28additional amount may include interest payable on any interim
29 loan for the facility from the General Fund or the Pooled Money
30Investment Account pursuant to Section 16312.

31

SEC. 92.  

Section 15820.922 of the Government Code is
32amended to read:

33

15820.922.  

(a) The board may issue up to five hundred million
34dollars ($500,000,000) in revenue bonds, notes, or bond
35anticipation notes, pursuant to Chapter 5 (commencing with Section
3615830) to finance the acquisition, design, and construction,
37including, without limitation, renovation, and a reasonable
38construction reserve, of approved adult local criminal justice
39facilities described in Section 15820.92, and any additional amount
40authorized under Section 15849.6 to pay for the cost of financing.

P165  1(b) Proceeds from the revenue bonds, notes, or bond anticipation
2notes may be used to reimburse a participating county for the costs
3of acquisition, design, and construction, including, without
4limitation, renovation, for approved adult local criminal justice
5facilities.

6(c) Notwithstanding Section 13340, funds derived pursuant to
7this section and Section 15820.921 are continuously appropriated
8for purposes of this chapter.

9

SEC. 93.  

Section 19815 of the Government Code is amended
10to read:

11

19815.  

As used in this part:

12(a) “Department” means the Department of Human Resources.

13(b) “Director” means the Director of the Department of Human
14Resources.

15(c) “Division” means the Division of Labor Relations.

16(d) “Employee” or “state employee,” except where otherwise
17indicated, means employees subject to the Ralph C. Dills Act
18(Chapter 10.3 (commencing with Section 3512), Division 4, Title
191), supervisory employees as defined in subdivision (g) of Section
203513, managerial employees as defined in subdivision (e) of
21Section 3513, confidential employees as defined in subdivision
22(f) of Section 3513, employees of the Legislative Counsel Bureau,
23employees of the Bureau of State Audits, employees of the office
24of the Inspector General, employees of the Public Employment
25Relations Board, conciliators employed by the California State
26Mediation and Conciliation Service, employees of the Department
27of Human Resources, professional employees of the Department
28of Finance engaged in technical or analytical state budget
29preparation other than audit staff, intermittent athletic inspectors
30who are employees of the State Athletic Commission, professional
31employees in the Personnel/Payroll Services Division of the
32Controller’s office and all employees of the executive branch of
33government who are not elected to office.

34

SEC. 94.  

Section 20391 of the Government Code is amended
35to read:

36

20391.  

“State peace officer/firefighter member” means:

37(a) All persons in the Board of Parole Hearings, the Department
38of Consumer Affairs, the Department of Developmental Services,
39the Department of Health Care Services, the Department of Toxic
40Substances Control, the California Horse Racing Board, the
P166  1Department of Industrial Relations, the Department of Insurance,
2the State Department of State Hospitals, the Department of Motor
3Vehicles, the Department of Social Services employed with the
4class title of Special Investigator (Class Code 8553), Senior Special
5Investigator (Class Code 8550), and Investigator Assistant (Class
6Code 8554) who have been designated as peace officers as defined
7in Sections 830.2 and 830.3 of the Penal Code.

8(b) All persons in the Department of Alcoholic Beverage Control
9employed with the class title Investigator Trainee, Alcoholic
10Beverage Control (Class Code 7553), Investigator I, Alcoholic
11Beverage Control, Range A and B (Class Code 7554), and
12Investigator II, Alcoholic Beverage Control (Class Code 7555)
13who have been designated as peace officers as defined in Sections
14830.2 and 830.3 of the Penal Code.

15(c) All persons within the Department of Justice who are state
16employees as defined in subdivision (c) of Section 3513 and who
17have been designated as peace officers and performing investigative
18duties.

19(d) All persons in the Department of Parks and Recreation
20employed with the class title of Park Ranger (Intermittent) (Class
21Code 0984) who have been designated as peace officers as defined
22in Sections 830.2 and 830.3 of the Penal Code.

23(e) All persons in the Franchise Tax Board who have been
24designated as peace officers in subdivision (s) of Section 830.3 of
25the Penal Code.

26(f) A member who is employed in a position that is reclassified
27to state peace officer/firefighter pursuant to this section may make
28an irrevocable election in writing to remain subject to the service
29retirement benefit and the normal rate of contribution applicable
30prior to reclassification by filing a notice of election with the board
31within 90 days of notification by the board. A member who so
32elects shall be subject to the reduced benefit factors specified in
33Section 21353 or 21354.1, as applicable, only for service included
34in the federal system.

35

SEC. 95.  

Section 20410 of the Government Code is amended
36to read:

37

20410.  

“State safety member” also includes all persons in the
38Department of Alcoholic Beverage Control, the Board of Parole
39Hearings, the Department of Consumer Affairs, the Department
40of Developmental Services, the Department of Health Care
P167  1Services, the Department of Toxic Substances Control, the
2California Horse Racing Board, the Department of Industrial
3Relations, the Department of Insurance, the State Department of
4State Hospitals, the Department of Motor Vehicles, and the
5Department of Social Services employed with the class title of
6Special Investigator (Class Code 8553), Senior Special Investigator
7(Class Code 8550), Investigator Trainee (Class Code 8555) and
8Investigator Assistant (Class Code 8554), Supervising Special
9Investigator I (Class Code 8548), Special Investigator II (Class
10Code 8547), and persons in the class of State Park Ranger
11 (Intermittent) (Class Code 0984) in the Department of Parks and
12Recreation, who have been designated as peace officers as defined
13in Sections 830.2 and 830.3 of the Penal Code.

14

SEC. 96.  

Section 20516 of the Government Code is amended
15to read:

16

20516.  

(a) Notwithstanding any other provision of this part,
17with or without a change in benefits, a contracting agency and its
18employees may agree, in writing, to share the costs of the employer
19contribution. The cost sharing pursuant to this section shall also
20apply for related nonrepresented employees as approved in a
21resolution passed by the contracting agency.

22(b) The collective bargaining agreement shall specify the exact
23percentage of member compensation that shall be paid toward the
24current service cost of the benefits by members. The member
25contributions shall be contributions over and above normal
26contributions otherwise required by this part and shall be treated
27as normal contributions for all purposes of this part. The
28contributions shall be uniform, except as described in subdivision
29(c), with respect to all members within each of the following
30classifications: local miscellaneous members, local police officers,
31local firefighters, county peace officers, and all local safety
32members other than local police officers, local firefighters, and
33county peace officers. The balance of any costs shall be paid by
34the contracting agency and shall be credited to the employer’s
35account. An employer shall not use impasse procedures to impose
36member cost sharing on any contribution amount above that which
37is authorized by law.

38(c) Member cost sharing may differ by classification for groups
39of employees subject to different levels of benefits pursuant to
40Sections 7522.20, 7522.25, and 20475, or by a recognized
P168  1collective bargaining unit if agreed to in a memorandum of
2understanding reached pursuant to the applicable collective
3bargaining laws.

4(d) This section shall not apply to any contracting agency nor
5to the employees of a contracting agency until the agency elects
6to be subject to this section by contract or by amendment to its
7contract made in the manner prescribed for approval of contracts.
8Contributions provided by this section shall be withheld from
9member compensation or otherwise collected when the contract
10amendment becomes effective.

11(e) For the purposes of this section, all contributions, liabilities,
12actuarial interest rates, and other valuation factors shall be
13determined on the basis of actuarial assumptions and methods that,
14in the aggregate, are reasonable and that, in combination, offer the
15actuary’s best estimate of anticipated experience under this system.

16(f) Nothing in this section shall preclude a contracting agency
17and its employees from independently agreeing in a memorandum
18of understanding to share the costs of any benefit, in a manner
19inconsistent with this section. However, any agreement in a
20memorandum of understanding that is inconsistent with this section
21shall not be part of the contract between this system and the
22contracting agency.

23(g) If, and to the extent that, the board determines that a
24cost-sharing agreement under this section would conflict with Title
2526 of the United States Code, the board may refuse to approve the
26agreement.

27(h) Nothing in this section shall require a contracting agency to
28enter into a memorandum of understanding or collective bargaining
29agreement with a bargaining representative in order to increase
30the amount of member contributions when such a member
31contribution increase is authorized by other provisions under this
32part.

33

SEC. 97.  

Section 20677.7 of the Government Code is amended
34to read:

35

20677.7.  

(a) Notwithstanding Section 20677.4, effective with
36the beginning of the September 2010 pay period, the normal rate
37of contribution for state miscellaneous or state industrial members
38who are represented by State Bargaining Unit 8, shall be:

P169  1(1) Eleven percent of the compensation in excess of three
2hundred seventeen dollars ($317) per month paid to a member
3whose service is not included in the federal system.

4(2) Ten percent of compensation in excess of five hundred
5thirteen dollars ($513) per month paid to a member whose service
6has been included in the federal system.

7(b) Notwithstanding Section 20677.4, effective with the
8beginning of the September 2010 pay period, the normal rate of
9contribution for state miscellaneous or state industrial members
10who are represented by State Bargaining Unit 5 shall be:

11(1) Eight percent of the compensation in excess of three hundred
12seventeen dollars ($317) per month paid to a member whose service
13is not included in the federal system.

14(2) Seven percent of compensation in excess of five hundred
15thirteen dollars ($513) per month paid to a member whose service
16has been included in the federal system.

17(c) If the provisions of this section are in conflict with the
18provisions of a memorandum of understanding reached pursuant
19to Section 3517.5, the memorandum of understanding shall be
20controlling without further legislative action, except that if the
21provisions of a memorandum of understanding require the
22 expenditure of funds, the provisions shall not become effective
23unless and until approved by the Legislature in the annual Budget
24Act.

25(d) Consistent with the normal rate of contribution for all
26members identified in this subdivision, the Director of the
27Department of Personnel Administration may exercise his or her
28discretion to establish the normal rate of contribution for a related
29state employee who is excepted from the definition of “state
30employee” in subdivision (c) of Section 3513, and an officer or
31employee of the executive branch of state government who is not
32a member of the civil service.

33

SEC. 98.  

Section 25060 of the Government Code is amended
34to read:

35

25060.  

Whenever a vacancy occurs in a board of supervisors,
36the Governor shall fill the vacancy. The appointee shall hold office
37until the election and qualification of his or her successor.

38

SEC. 99.  

Section 25062 of the Government Code is amended
39to read:

P170  1

25062.  

When a vacancy occurs from the failure of the person
2elected to file his or her oath or bond as provided by law, and the
3person elected is appointed to fill the vacancy, he or she shall hold
4office for the unexpired term.

5

SEC. 100.  

Section 65040.7 of the Government Code is amended
6to read:

7

65040.7.  

(a) For purposes of this section, the following terms
8have the following meanings:

9(1) “Energy security and military mission goals” means federal
10laws, regulations, or executive orders, related to alternative fuel
11and vehicle technology, clean energy, energy efficiency, water
12and waste conservation, greenhouse gas emissions reductions, and
13related infrastructure, including, but not limited to, the federal
14laws, regulations, and executive orders, and the goals set forth
15therein, of the National Energy Conservation Policy Act (42 U.S.C.
16Sec. 8201 et seq.), the Energy Independence and Security Act of
172007 (42 U.S.C. Sec. 17001 et seq.), the Energy Policy Act of
182005 (42 U.S.C. Sec. 15801 et seq.), and the Energy Policy Act
19of 1992 (42 U.S.C. Sec. 13201 et seq.), and the goals set forth in
20Executive Order No. 13514, Executive Order No. 13423, and
21Executive Order No. 13221.

22(2) “State energy and environmental policies” includes, but is
23not limited to, policies involving alternative fuels and vehicle
24technology and related fueling infrastructure, renewable electricity
25generation and related transmission infrastructure, energy efficiency
26and demand response, waste management, recycling, water
27conservation, water quality, water supply, greenhouse gas
28emissions reductions, and green chemistry.

29(b) A state agency that is identified by the Office of Planning
30and Research pursuant to paragraph (1) of subdivision (c) shall,
31when developing and implementing state energy and environmental
32policies, consider the direct impacts of those policies upon the
33United States Department of Defense’s energy security and military
34mission goals.

35(c) The Office of Planning and Research shall do both of the
36following:

37(1) Identify state agencies that develop and implement state
38energy and environmental policies that directly impact the United
39States Department of Defense’s energy security and military
40mission goals in the state.

P171  1(2) Serve as a liaison to coordinate effective inclusion of the
2United States Department of Defense in the development and
3implementation of state energy and environmental policy.

4(d) This section shall not do any of the following:

5(1) Interfere with the existing authority of, or prevent, an agency
6or department from carrying out of its programs, projects, or
7responsibilities.

8(2) Limit compliance with requirements imposed under any
9other law.

10(3) Authorize or require the United States Department of
11Defense to operate differently from any other self-generating
12ratepayer, or alter an existing rate structure.

13

SEC. 101.  

Section 65302.5 of the Government Code is amended
14to read:

15

65302.5.  

(a) At least 45 days prior to adoption or amendment
16of the safety element, each county and city shall submit to the
17California Geological Survey of the Department of Conservation
18one copy of a draft of the safety element or amendment and any
19technical studies used for developing the safety element. The
20division may review drafts submitted to it to determine whether
21they incorporate known seismic and other geologic hazard
22information, and report its findings to the planning agency within
2330 days of receipt of the draft of the safety element or amendment
24pursuant to this subdivision. The legislative body shall consider
25the division’s findings prior to final adoption of the safety element
26or amendment unless the division’s findings are not available
27within the above prescribed time limits or unless the division has
28indicated to the city or county that the division will not review the
29safety element. If the division’s findings are not available within
30those prescribed time limits, the legislative body may take the
31division’s findings into consideration at the time it considers future
32amendments to the safety element. Each county and city shall
33provide the division with a copy of its adopted safety element or
34amendments. The division may review adopted safety elements
35or amendments and report its findings. All findings made by the
36division shall be advisory to the planning agency and legislative
37body.

38(b) (1) The draft element of or draft amendment to the safety
39element of a county or a city’s general plan shall be submitted to
40the State Board of Forestry and Fire Protection and to every local
P172  1agency that provides fire protection to territory in the city or county
2at least 90 days prior to either of the following:

3(A) The adoption or amendment to the safety element of its
4general plan for each county that contains state responsibility areas.

5(B) The adoption or amendment to the safety element of its
6general plan for each city or county that contains a very high fire
7hazard severity zone as defined pursuant to subdivision (i) of
8Section 51177.

9(2) A county that contains state responsibility areas and a city
10or county that contains a very high fire hazard severity zone as
11defined pursuant to subdivision (i) of Section 51177 shall submit
12for review the safety element of its general plan to the State Board
13of Forestry and Fire Protection and every local agency that provides
14fire protection to territory in the city or county in accordance with
15the following dates, as specified, unless the local government
16submitted the element within five years prior to that date:

17(A) Local governments within the regional jurisdiction of the
18San Diego Association of Governments: December 31, 2010.

19(B) Local governments within the regional jurisdiction of the
20Southern California Association of Governments: December 31,
212011.

22(C) Local governments within the regional jurisdiction of the
23Association of Bay Area Governments: December 31, 2012.

24(D) Local governments within the regional jurisdiction of the
25Council of Fresno County Governments, the Kern County Council
26of Governments, and the Sacramento Area Council of
27Governments: June 30, 2013.

28(E) Local governments within the regional jurisdiction of the
29Association of Monterey Bay Area Governments: December 31,
302014.

31(F) All other local governments: December 31, 2015.

32(3) The State Board of Forestry and Fire Protection shall, and
33a local agency may, review the draft or an existing safety element
34and recommend changes to the planning agency within 60 days
35of its receipt regarding both of the following:

36(A) Uses of land and policies in state responsibility areas and
37very high fire hazard severity zones that will protect life, property,
38and natural resources from unreasonable risks associated with wild
39land fires.

P173  1(B) Methods and strategies for wild land fire risk reduction and
2prevention within state responsibility areas and very high fire
3hazard severity zones.

4(4) Prior to the adoption of its draft element or draft amendment,
5the board of supervisors of the county or the city council of a city
6shall consider the recommendations, if any, made by the State
7Board of Forestry and Fire Protection and any local agency that
8provides fire protection to territory in the city or county. If the
9board of supervisors or city council determines not to accept all
10or some of the recommendations, if any, made by the State Board
11of Forestry and Fire Protection or local agency, the board of
12supervisors or city council shall communicate in writing to the
13State Board of Forestry and Fire Protection or the local agency,
14its reasons for not accepting the recommendations.

15(5) If the State Board of Forestry and Fire Protection’s or local
16agency’s recommendations are not available within the time limits
17required by this section, the board of supervisors or city council
18may act without those recommendations. The board of supervisors
19or city council shall take the recommendations into consideration
20the next time it considers amendments to the safety element.

21

SEC. 102.  

Section 65915 of the Government Code, as amended
22by Section 53 of Chapter 181 of the Statutes of 2012, is amended
23to read:

24

65915.  

(a) When an applicant seeks a density bonus for a
25housing development within, or for the donation of land for housing
26within, the jurisdiction of a city, county, or city and county, that
27local government shall provide the applicant with incentives or
28concessions for the production of housing units and child care
29facilities as prescribed in this section. All cities, counties, or cities
30and counties shall adopt an ordinance that specifies how
31compliance with this section will be implemented. Failure to adopt
32an ordinance shall not relieve a city, county, or city and county
33from complying with this section.

34(b) (1) A city, county, or city and county shall grant one density
35bonus, the amount of which shall be as specified in subdivision
36(f), and incentives or concessions, as described in subdivision (d),
37when an applicant for a housing development seeks and agrees to
38construct a housing development, excluding any units permitted
39by the density bonus awarded pursuant to this section, that will
40contain at least any one of the following:

P174  1(A) Ten percent of the total units of a housing development for
2lower income households, as defined in Section 50079.5 of the
3Health and Safety Code.

4(B) Five percent of the total units of a housing development for
5very low income households, as defined in Section 50105 of the
6Health and Safety Code.

7(C) A senior citizen housing development, as defined in Sections
851.3 and 51.12 of the Civil Code, or mobilehome park that limits
9residency based on age requirements for housing for older persons
10pursuant to Section 798.76 or 799.5 of the Civil Code.

11(D) Ten percent of the total dwelling units in a common interest
12development as defined in Section 4100 of the Civil Code for
13persons and families of moderate income, as defined in Section
1450093 of the Health and Safety Code, provided that all units in the
15development are offered to the public for purchase.

16(2) For purposes of calculating the amount of the density bonus
17pursuant to subdivision (f), the applicant who requests a density
18bonus pursuant to this subdivision shall elect whether the bonus
19shall be awarded on the basis of subparagraph (A), (B), (C), or (D)
20of paragraph (1).

21(3) For the purposes of this section, “total units” or “total
22dwelling units” does not include units added by a density bonus
23awarded pursuant to this section or any local law granting a greater
24density bonus.

25(c) (1) An applicant shall agree to, and the city, county, or city
26and county shall ensure, continued affordability of all low- and
27very low income units that qualified the applicant for the award
28of the density bonus for 30 years or a longer period of time if
29required by the construction or mortgage financing assistance
30program, mortgage insurance program, or rental subsidy program.
31Rents for the lower income density bonus units shall be set at an
32affordable rent as defined in Section 50053 of the Health and Safety
33Code. Owner-occupied units shall be available at an affordable
34housing cost as defined in Section 50052.5 of the Health and Safety
35Code.

36(2) An applicant shall agree to, and the city, county, or city and
37county shall ensure that, the initial occupant of the
38moderate-income units that are directly related to the receipt of
39the density bonus in the common interest development, as defined
40in Section 4100 of the Civil Code, are persons and families of
P175  1moderate income, as defined in Section 50093 of the Health and
2Safety Code, and that the units are offered at an affordable housing
3cost, as that cost is defined in Section 50052.5 of the Health and
4Safety Code. The local government shall enforce an equity sharing
5agreement, unless it is in conflict with the requirements of another
6public funding source or law. The following apply to the equity
7sharing agreement:

8(A) Upon resale, the seller of the unit shall retain the value of
9any improvements, the downpayment, and the seller’s proportionate
10share of appreciation. The local government shall recapture any
11initial subsidy, as defined in subparagraph (B), and its proportionate
12share of appreciation, as defined in subparagraph (C), which
13amount shall be used within five years for any of the purposes
14described in subdivision (e) of Section 33334.2 of the Health and
15Safety Code that promote home ownership.

16(B) For purposes of this subdivision, the local government’s
17initial subsidy shall be equal to the fair market value of the home
18at the time of initial sale minus the initial sale price to the
19moderate-income household, plus the amount of any downpayment
20assistance or mortgage assistance. If upon resale the market value
21is lower than the initial market value, then the value at the time of
22the resale shall be used as the initial market value.

23(C) For purposes of this subdivision, the local government’s
24proportionate share of appreciation shall be equal to the ratio of
25the local government’s initial subsidy to the fair market value of
26the home at the time of initial sale.

27(d) (1) An applicant for a density bonus pursuant to subdivision
28(b) may submit to a city, county, or city and county a proposal for
29the specific incentives or concessions that the applicant requests
30pursuant to this section, and may request a meeting with the city,
31county, or city and county. The city, county, or city and county
32shall grant the concession or incentive requested by the applicant
33unless the city, county, or city and county makes a written finding,
34based upon substantial evidence, of any of the following:

35(A) The concession or incentive is not required in order to
36provide for affordable housing costs, as defined in Section 50052.5
37of the Health and Safety Code, or for rents for the targeted units
38to be set as specified in subdivision (c).

39(B) The concession or incentive would have a specific adverse
40impact, as defined in paragraph (2) of subdivision (d) of Section
P176  165589.5, upon public health and safety or the physical environment
2or on any real property that is listed in the California Register of
3Historical Resources and for which there is no feasible method to
4satisfactorily mitigate or avoid the specific adverse impact without
5rendering the development unaffordable to low- and
6moderate-income households.

7(C) The concession or incentive would be contrary to state or
8federal law.

9(2) The applicant shall receive the following number of
10incentives or concessions:

11(A) One incentive or concession for projects that include at least
1210 percent of the total units for lower income households, at least
135 percent for very low income households, or at least 10 percent
14for persons and families of moderate income in a common interest
15development.

16(B) Two incentives or concessions for projects that include at
17least 20 percent of the total units for lower income households, at
18least 10 percent for very low income households, or at least 20
19percent for persons and families of moderate income in a common
20interest development.

21(C) Three incentives or concessions for projects that include at
22least 30 percent of the total units for lower income households, at
23least 15 percent for very low income households, or at least 30
24percent for persons and families of moderate income in a common
25interest development.

26(3) The applicant may initiate judicial proceedings if the city,
27county, or city and county refuses to grant a requested density
28bonus, incentive, or concession. If a court finds that the refusal to
29grant a requested density bonus, incentive, or concession is in
30violation of this section, the court shall award the plaintiff
31reasonable attorney’s fees and costs of suit. Nothing in this
32subdivision shall be interpreted to require a local government to
33grant an incentive or concession that has a specific, adverse impact,
34as defined in paragraph (2) of subdivision (d) of Section 65589.5,
35upon health, safety, or the physical environment, and for which
36there is no feasible method to satisfactorily mitigate or avoid the
37specific adverse impact. Nothing in this subdivision shall be
38interpreted to require a local government to grant an incentive or
39concession that would have an adverse impact on any real property
40that is listed in the California Register of Historical Resources.
P177  1The city, county, or city and county shall establish procedures for
2carrying out this section, that shall include legislative body
3approval of the means of compliance with this section.

4(e) (1) In no case may a city, county, or city and county apply
5any development standard that will have the effect of physically
6 precluding the construction of a development meeting the criteria
7of subdivision (b) at the densities or with the concessions or
8incentives permitted by this section. An applicant may submit to
9a city, county, or city and county a proposal for the waiver or
10reduction of development standards that will have the effect of
11physically precluding the construction of a development meeting
12the criteria of subdivision (b) at the densities or with the
13concessions or incentives permitted under this section, and may
14request a meeting with the city, county, or city and county. If a
15court finds that the refusal to grant a waiver or reduction of
16development standards is in violation of this section, the court
17shall award the plaintiff reasonable attorney’s fees and costs of
18suit. Nothing in this subdivision shall be interpreted to require a
19local government to waive or reduce development standards if the
20waiver or reduction would have a specific, adverse impact, as
21defined in paragraph (2) of subdivision (d) of Section 65589.5,
22upon health, safety, or the physical environment, and for which
23there is no feasible method to satisfactorily mitigate or avoid the
24specific adverse impact. Nothing in this subdivision shall be
25interpreted to require a local government to waive or reduce
26development standards that would have an adverse impact on any
27real property that is listed in the California Register of Historical
28Resources, or to grant any waiver or reduction that would be
29contrary to state or federal law.

30(2) A proposal for the waiver or reduction of development
31standards pursuant to this subdivision shall neither reduce nor
32increase the number of incentives or concessions to which the
33applicant is entitled pursuant to subdivision (d).

34(f) For the purposes of this chapter, “density bonus” means a
35density increase over the otherwise maximum allowable residential
36density as of the date of application by the applicant to the city,
37county, or city and county. The applicant may elect to accept a
38lesser percentage of density bonus. The amount of density bonus
39to which the applicant is entitled shall vary according to the amount
P178  1by which the percentage of affordable housing units exceeds the
2percentage established in subdivision (b).

3(1) For housing developments meeting the criteria of
4subparagraph (A) of paragraph (1) of subdivision (b), the density
5bonus shall be calculated as follows:


6

 

Percentage Low-Income UnitsPercentage Density Bonus
1020 
1121.5
1223 
1324.5
1426 
1527.5
1730.5
1832 
1933.5
2035 
P178 1923P178 3239P178 324P178 27

 

20(2) For housing developments meeting the criteria of
21subparagraph (B) of paragraph (1) of subdivision (b), the density
22 bonus shall be calculated as follows:

 

Percentage Very Low Income UnitsPercentage Density Bonus
520 
622.5
725 
827.5
930 
1032.5
1135 
P178 3239P178 324P178 27

 

33(3) For housing developments meeting the criteria of
34subparagraph (C) of paragraph (1) of subdivision (b), the density
35bonus shall be 20 percent of the number of senior housing units.

36(4) For housing developments meeting the criteria of
37subparagraph (D) of paragraph (1) of subdivision (b), the density
38bonus shall be calculated as follows:

 

Percentage Moderate-Income UnitsPercentage Density Bonus
105
116
127
138
149
1510
1611
1712
1813
1914
2015
2116
2217
2318
2419
2520
2621
2722
2823
2924
3025
3126
3227
3328
3429
3530
3631
3732
3833
3934
4035
P178 324P178 27

 

33(5) All density calculations resulting in fractional units shall be
34rounded up to the next whole number. The granting of a density
35bonus shall not be interpreted, in and of itself, to require a general
36plan amendment, local coastal plan amendment, zoning change,
37or other discretionary approval.

38(g) (1) When an applicant for a tentative subdivision map,
39parcel map, or other residential development approval donates
40land to a city, county, or city and county in accordance with this
P180  1subdivision, the applicant shall be entitled to a 15-percent increase
2above the otherwise maximum allowable residential density for
3the entire development, as follows:

 

Percentage Very Low IncomePercentage Density Bonus
1015
1116
1217
1318
1419
1520
1621
1722
1823
1924
2025
2126
2227
2328
2429
2530
2631
2732
2833
2934
3035
P178 27

 

28(2) This increase shall be in addition to any increase in density
29mandated by subdivision (b), up to a maximum combined mandated
30density increase of 35 percent if an applicant seeks an increase
31pursuant to both this subdivision and subdivision (b). All density
32calculations resulting in fractional units shall be rounded up to the
33next whole number. Nothing in this subdivision shall be construed
34to enlarge or diminish the authority of a city, county, or city and
35county to require a developer to donate land as a condition of
36development. An applicant shall be eligible for the increased
37density bonus described in this subdivision if all of the following
38conditions are met:

P181  1(A) The applicant donates and transfers the land no later than
2the date of approval of the final subdivision map, parcel map, or
3residential development application.

4(B) The developable acreage and zoning classification of the
5land being transferred are sufficient to permit construction of units
6affordable to very low income households in an amount not less
7than 10 percent of the number of residential units of the proposed
8development.

9(C) The transferred land is at least one acre in size or of
10sufficient size to permit development of at least 40 units, has the
11appropriate general plan designation, is appropriately zoned with
12appropriate development standards for development at the density
13described in paragraph (3) of subdivision (c) of Section 65583.2,
14and is or will be served by adequate public facilities and
15infrastructure.

16(D) The transferred land shall have all of the permits and
17approvals, other than building permits, necessary for the
18development of the very low income housing units on the
19transferred land, not later than the date of approval of the final
20subdivision map, parcel map, or residential development
21application, except that the local government may subject the
22proposed development to subsequent design review to the extent
23authorized by subdivision (i) of Section 65583.2 if the design is
24not reviewed by the local government prior to the time of transfer.

25(E) The transferred land and the affordable units shall be subject
26to a deed restriction ensuring continued affordability of the units
27consistent with paragraphs (1) and (2) of subdivision (c), which
28shall be recorded on the property at the time of the transfer.

29(F) The land is transferred to the local agency or to a housing
30developer approved by the local agency. The local agency may
31require the applicant to identify and transfer the land to the
32developer.

33(G) The transferred land shall be within the boundary of the
34proposed development or, if the local agency agrees, within
35one-quarter mile of the boundary of the proposed development.

36(H) A proposed source of funding for the very low income units
37shall be identified not later than the date of approval of the final
38subdivision map, parcel map, or residential development
39application.

P182  1(h) (1) When an applicant proposes to construct a housing
2development that conforms to the requirements of subdivision (b)
3and includes a child care facility that will be located on the
4premises of, as part of, or adjacent to, the project, the city, county,
5or city and county shall grant either of the following:

6(A) An additional density bonus that is an amount of square
7feet of residential space that is equal to or greater than the amount
8of square feet in the child care facility.

9(B) An additional concession or incentive that contributes
10significantly to the economic feasibility of the construction of the
11child care facility.

12(2) The city, county, or city and county shall require, as a
13condition of approving the housing development, that the following
14occur:

15(A) The child care facility shall remain in operation for a period
16of time that is as long as or longer than the period of time during
17which the density bonus units are required to remain affordable
18pursuant to subdivision (c).

19(B) Of the children who attend the child care facility, the
20children of very low income households, lower income households,
21or families of moderate income shall equal a percentage that is
22 equal to or greater than the percentage of dwelling units that are
23required for very low income households, lower income
24households, or families of moderate income pursuant to subdivision
25(b).

26(3) Notwithstanding any requirement of this subdivision, a city,
27county, or city and county shall not be required to provide a density
28bonus or concession for a child care facility if it finds, based upon
29substantial evidence, that the community has adequate child care
30facilities.

31(4) “Child care facility,” as used in this section, means a child
32day care facility other than a family day care home, including, but
33not limited to, infant centers, preschools, extended day care
34facilities, and schoolage child care centers.

35(i) “Housing development,” as used in this section, means a
36development project for five or more residential units. For the
37purposes of this section, “housing development” also includes a
38subdivision or common interest development, as defined in Section
394100 of the Civil Code, approved by a city, county, or city and
40county and consists of residential units or unimproved residential
P183  1lots and either a project to substantially rehabilitate and convert
2an existing commercial building to residential use or the substantial
3rehabilitation of an existing multifamily dwelling, as defined in
4subdivision (d) of Section 65863.4, where the result of the
5rehabilitation would be a net increase in available residential units.
6For the purpose of calculating a density bonus, the residential units
7shall be on contiguous sites that are the subject of one development
8application, but do not have to be based upon individual
9subdivision maps or parcels. The density bonus shall be permitted
10in geographic areas of the housing development other than the
11areas where the units for the lower income households are located.

12(j) The granting of a concession or incentive shall not be
13interpreted, in and of itself, to require a general plan amendment,
14local coastal plan amendment, zoning change, or other discretionary
15approval. This provision is declaratory of existing law.

16(k) For the purposes of this chapter, concession or incentive
17means any of the following:

18(1) A reduction in site development standards or a modification
19of zoning code requirements or architectural design requirements
20that exceed the minimum building standards approved by the
21California Building Standards Commission as provided in Part 2.5
22(commencing with Section 18901) of Division 13 of the Health
23and Safety Code, including, but not limited to, a reduction in
24setback and square footage requirements and in the ratio of
25vehicular parking spaces that would otherwise be required that
26results in identifiable, financially sufficient, and actual cost
27reductions.

28(2) Approval of mixed-use zoning in conjunction with the
29housing project if commercial, office, industrial, or other land uses
30will reduce the cost of the housing development and if the
31commercial, office, industrial, or other land uses are compatible
32with the housing project and the existing or planned development
33in the area where the proposed housing project will be located.

34(3) Other regulatory incentives or concessions proposed by the
35developer or the city, county, or city and county that result in
36identifiable, financially sufficient, and actual cost reductions.

37(l) Subdivision (k) does not limit or require the provision of
38direct financial incentives for the housing development, including
39the provision of publicly owned land, by the city, county, or city
40and county, or the waiver of fees or dedication requirements.

P184  1(m)  This section shall not be construed to supersede or in any
2way alter or lessen the effect or application of the California
3Coastal Act of 1976 (Division 20 (commencing with Section
430000) of the Public Resources Code).

5(n) If permitted by local ordinance, nothing in this section shall
6be construed to prohibit a city, county, or city and county from
7granting a density bonus greater than what is described in this
8section for a development that meets the requirements of this
9section or from granting a proportionately lower density bonus
10than what is required by this section for developments that do not
11meet the requirements of this section.

12(o) For purposes of this section, the following definitions shall
13apply:

14(1) “Development standard” includes a site or construction
15condition, including, but not limited to, a height limitation, a
16setback requirement, a floor area ratio, an onsite open-space
17requirement, or a parking ratio that applies to a residential
18development pursuant to any ordinance, general plan element,
19specific plan, charter, or other local condition, law, policy,
20resolution, or regulation.

21(2) “Maximum allowable residential density” means the density
22allowed under the zoning ordinance and land use element of the
23general plan, or if a range of density is permitted, means the
24maximum allowable density for the specific zoning range and land
25use element of the general plan applicable to the project. Where
26the density allowed under the zoning ordinance is inconsistent
27with the density allowed under the land use element of the general
28plan, the general plan density shall prevail.

29(p) (1) Upon the request of the developer, no city, county, or
30city and county shall require a vehicular parking ratio, inclusive
31of handicapped and guest parking, of a development meeting the
32criteria of subdivision (b), that exceeds the following ratios:

33(A) Zero to one bedroom: one onsite parking space.

34(B) Two to three bedrooms: two onsite parking spaces.

35(C) Four and more bedrooms: two and one-half parking spaces.

36(2) If the total number of parking spaces required for a
37development is other than a whole number, the number shall be
38rounded up to the next whole number. For purposes of this
39subdivision, a development may provide “onsite parking” through
P185  1tandem parking or uncovered parking, but not through onstreet
2parking.

3(3) This subdivision shall apply to a development that meets
4the requirements of subdivision (b) but only at the request of the
5applicant. An applicant may request parking incentives or
6concessions beyond those provided in this subdivision pursuant
7to subdivision (d).

8

SEC. 103.  

The heading of Chapter 3 (commencing with Section
980) of Division 1 of the Harbors and Navigation Code, as added
10by Section 2 of Chapter 136 of the Statutes of 2012, is amended
11to read:

12 

13Chapter  3. Boating and Waterways Commission
14

 

15

SEC. 104.  

Section 80.2 of the Harbors and Navigation Code,
16as added by Section 2 of Chapter 136 of the Statutes of 2012, is
17amended to read:

18

80.2.  

The commission shall be composed of seven members
19appointed by the Governor, with the advice and consent of the
20Senate. The members shall have experience and background
21consistent with the functions of the commission. In making
22appointments to the commission, the Governor shall give primary
23consideration to geographical location of the residence of members
24as related to boating activities and harbors. In addition to the
25geographical considerations, the members of the commission shall
26be appointed with regard to their special interests in recreational
27boating. At least one of the members shall be a member of a
28recognized statewide organization representing recreational boaters.
29One member of the commission shall be a private small craft harbor
30owner and operator. One member of the commission shall be an
31officer or employee of a law enforcement agency responsible for
32enforcing boating laws.

33The Governor shall appoint the first seven members of the
34commission for the following terms to expire on January 15: one
35member for one year, two members for two years, two members
36for three years, and two members for four years. Thereafter,
37appointments shall be for a four-year term. Vacancies occurring
38prior to the expiration of the term shall be filled by appointment
39for the unexpired term.

P186  1

SEC. 105.  

Section 82 of the Harbors and Navigation Code, as
2added by Section 2 of Chapter 136 of the Statutes of 2012, is
3amended to read:

4

82.  

The division, consistent with Section 82.3, and in
5furtherance of the public interest and in accordance therewith, shall
6have only the following duties with respect to the commission:

7(a) To submit any proposed changes in regulations pertaining
8to boating functions and responsibilities of the division to the
9commission for its advice and comment prior to enactment of
10changes.

11(b) To submit proposals for transfers pursuant to Section 70,
12loans pursuant to Section 71.4 or 76.3, and grants pursuant to
13Section 72.5 to the commission for its advice and comment.

14(c) To submit any proposed project it is considering approving
15to the commission if that project could have a potentially significant
16impact on either public health or safety, public access, or the
17environment for the commission’s advice and comment prior to
18approval by the division.

19(d) To annually submit a report on its budget and expenditures
20to the commission for its advice and comment.

21(e) To cause studies and surveys to be made of the need for
22small craft harbors and connecting waterways throughout the state
23and the most suitable sites therefor, and submit those studies and
24surveys to the commission for advice and comment.

25

SEC. 106.  

Section 1339.40 of the Health and Safety Code is
26amended to read:

27

1339.40.  

For purposes of this article, the following definitions
28apply:

29(a) “Bereavement services” has the same meaning as defined
30in subdivision (a) of Section 1746.

31(b) “Hospice care” means a specialized form of interdisciplinary
32health care that is designed to provide palliative care, alleviate the
33physical, emotional, social, and spiritual discomforts of an
34individual who is experiencing the last phases of life due to the
35existence of a terminal disease, and provide supportive care to the
36primary caregiver and the family of the hospice patient, and that
37meets all of the following criteria:

38(1) Considers the patient and the patient’s family, in addition
39to the patient, as the unit of care.

P187  1(2) Utilizes an interdisciplinary team to assess the physical,
2medical, psychological, social, and spiritual needs of the patient
3and the patient’s family.

4(3) Requires the interdisciplinary team to develop an overall
5plan of care and to provide coordinated care that emphasizes
6supportive services, including, but not limited to, home care, pain
7control, and limited inpatient services. Limited inpatient services
8are intended to ensure both continuity of care and appropriateness
9of services for those patients who cannot be managed at home
10because of acute complications or the temporary absence of a
11capable primary caregiver.

12(4) Provides for the palliative medical treatment of pain and
13other symptoms associated with a terminal disease, but does not
14provide for efforts to cure the disease.

15(5) Provides for bereavement services following death to assist
16the family in coping with social and emotional needs associated
17with the death of the patient.

18(6) Actively utilizes volunteers in the delivery of hospice
19services.

20(7) To the extent appropriate, based on the medical needs of the
21patient, provides services in the patient’s home or primary place
22of residence.

23(c) “Hospice facility” means a health facility as defined in
24subdivision (n) of Section 1250.

25(d) “Inpatient hospice care” means hospice care that is provided
26to patients in a hospice facility, including routine, continuous, and
27inpatient care directly as specified in Section 418.110 of Title 42
28of the Code of Federal Regulations, and may include short-term
29inpatient respite care as specified in Section 418.108 of Title 42
30of the Code of Federal Regulations.

31(e) “Interdisciplinary team” has the same meaning as defined
32in subdivision (g) of Section 1746.

33(f) “Medical direction” has the same meaning as defined in
34subdivision (h) of Section 1746.

35(g) “Palliative care” has the same meaning as defined in
36subdivision (j) of Section 1746.

37(h) “Plan of care” has the same meaning as defined in
38subdivision (l) of Section 1746.

39(i) “Skilled nursing services” has the same meaning as defined
40in subdivision (n) of Section 1746.

P188  1(j) “Social services/counseling services” has the same meaning
2as defined in subdivision (o) of Section 1746.

3(k) “Terminal disease” or “terminal illness” has the same
4meaning as defined in subdivision (p) of Section 1746.

5(l) “Volunteer services” has the same meaning as defined in
6subdivision (q) of Section 1746.

7

SEC. 107.  

Section 1339.41 of the Health and Safety Code is
8amended to read:

9

1339.41.  

(a) A person, governmental agency, or political
10subdivision of the state shall not be licensed as a hospice facility
11under this chapter unless the person or entity is a provider of
12hospice services licensed pursuant to Section 1751 and is certified
13as a hospice facility under Part 418 of Title 42 of the Code of
14Federal Regulations.

15(b) A hospice provider that intends to provide inpatient hospice
16care in the hospice provider’s own facility shall submit an
17application and fee for licensure as a hospice facility under this
18chapter. Notwithstanding the maximum period for a provisional
19license under subdivision (b) of Section 1268.5, the department
20may issue a provisional license to a hospice facility for a period
21of up to one year.

22(c) A verified application for a new license completed on forms
23furnished by the department shall be submitted to the department
24upon the occurrence of either of the following:

25(1) Establishment of a hospice facility.

26(2) Change of ownership.

27(d) The licensee shall submit to the department a verified
28application for a corrected license completed on forms furnished
29by the department upon the occurrence of any of the following:

30(1) Construction of new or replacement hospice facility.

31(2) Increase in licensed bed capacity.

32(3) Change of name of facility.

33(4) Change of licensed category.

34(5) Change of location of facility.

35(6) Change in bed classification.

36(e) (1) A hospice facility that participates in the Medicare and
37Medicaid programs may obtain initial certification from a federal
38Centers for Medicare and Medicaid Services (CMS) approved
39accreditation organization.

P189  1(2) If the CMS-approved accreditation organization conducts
2certification inspections, the hospice facility shall transmit to the
3department, within 30 days of receipt, a copy of the final
4accreditation report of the accreditation organization.

5(f) A hospice facility shall be separately licensed, irrespective
6of the location of the facility.

7(g) (1) The licensee shall notify the department in writing of
8any changes in the information provided pursuant to subdivision
9(d) within 10 days of these changes. This notice shall include
10information and documentation regarding the changes.

11(2) Each licensee shall notify the department within 10 days in
12writing of any change of the mailing address of the licensee. This
13notice shall include the new mailing address of the licensee.

14(3) When a change in the principal officer of a corporate
15licensee, including the chairman, president, or general manager
16occurs, the licensee shall notify the department of this change
17within 10 days in writing. This notice shall include the name and
18business address of the officer.

19(4) Any decrease in licensed bed capacity of the facility shall
20require notification by letter to the department and shall result in
21the issuance of a corrected license.

22

SEC. 108.  

Section 1367.65 of the Health and Safety Code is
23amended to read:

24

1367.65.  

(a) On or after January 1, 2000, each health care
25service plan contract, except a specialized health care service plan
26contract, that is issued, amended, delivered, or renewed shall be
27deemed to provide coverage for mammography for screening or
28diagnostic purposes upon referral by a participating nurse
29practitioner, participating certified nurse-midwife, participating
30physician assistant, or participating physician, providing care to
31the patient and operating within the scope of practice provided
32under existing law.

33(b) This section does not prevent application of copayment or
34deductible provisions in a plan, nor shall this section be construed
35to require that a plan be extended to cover any other procedures
36under an individual or a group health care service plan contract.
37This section does not authorize a plan enrollee to receive the
38services required to be covered by this section if those services
39are furnished by a nonparticipating provider, unless the plan
P190  1enrollee is referred to that provider by a participating physician,
2nurse practitioner, or certified nurse-midwife providing care.

3

SEC. 109.  

Section 1531.15 of the Health and Safety Code is
4amended to read:

5

1531.15.  

(a) A licensee of an adult residential facility or group
6home for no more than 15 residents, that is eligible for and serving
7clients eligible for federal Medicaid funding and utilizing delayed
8egress devices pursuant to Section 1531.1, may install and utilize
9secured perimeters in accordance with the provisions of this
10section.

11(b) As used in this section, “secured perimeters” means fences
12that meet the requirements prescribed by this section.

13(c) Only individuals meeting all of the following conditions
14may be admitted to or reside in a facility described in subdivision
15(a) utilizing secured perimeters:

16(1) The person shall have a developmental disability as defined
17in Section 4512 of the Welfare and Institutions Code.

18(2) The person shall be receiving services and case management
19from a regional center under the Lanterman Developmental
20Disabilities Services Act (Division 4.5 (commencing with Section
214500) of the Welfare and Institutions Code).

22(3) (A) The person shall be 14 years of age or older, except as
23specified in subparagraph (B).

24(B) Notwithstanding subparagraph (A), a child who is at least
2510 years of age and less than 14 years of age may be placed in a
26licensed group home described in subdivision (a) using secured
27perimeters only if both of the following occur:

28(i) A comprehensive assessment is conducted and an individual
29program plan meeting is convened to determine the services and
30supports needed for the child to receive services in a less restrictive,
31unlocked residential setting in California, and the regional center
32requests assistance from the State Department of Developmental
33Services’ statewide specialized resource service to identify options
34to serve the child in a less restrictive, unlocked residential setting
35in California.

36(ii) The regional center requests placement of the child in a
37licensed group home described in subdivision (a) using secured
38perimeters on the basis that the placement is necessary to prevent
39out-of-state placement or placement in a more restrictive, locked
P191  1residential setting and the State Department of Developmental
2Services approves the request.

3(4) The person is not a foster child under the jurisdiction of the
4juvenile court pursuant to Section 300, 450, 601, or 602 of the
5Welfare and Institutions Code.

6(5) An interdisciplinary team, through the individual program
7plan (IPP) process pursuant to Section 4646.5 of the Welfare and
8Institutions Code, shall have determined the person lacks hazard
9awareness or impulse control and, for his or her safety and security,
10requires the level of supervision afforded by a facility equipped
11with secured perimeters, and, but for this placement, the person
12would be at risk of admission to, or would have no option but to
13remain in, a more restrictive placement. The individual program
14planning team shall determine the continued appropriateness of
15the placement at least annually.

16(d) The licensee shall be subject to all applicable fire and
17building codes, regulations, and standards, and shall receive
18approval by the county or city fire department, the local fire
19prevention district, or the State Fire Marshal for the installed
20 secured perimeters.

21(e) The licensee shall provide staff training regarding the use
22and operation of the secured perimeters, protection of residents’
23personal rights, lack of hazard awareness and impulse control
24behavior, and emergency evacuation procedures.

25(f) The licensee shall revise its facility plan of operation. These
26revisions shall first be approved by the State Department of
27Developmental Services. The plan of operation shall not be
28approved by the State Department of Social Services unless the
29licensee provides certification that the plan was approved by the
30State Department of Developmental Services. The plan shall
31include, but not be limited to, all of the following:

32(1) A description of how the facility is to be equipped with
33secured perimeters that are consistent with regulations adopted by
34the State Fire Marshal pursuant to Section 13143.6.

35(2) A description of how the facility will provide training for
36staff.

37(3) A description of how the facility will ensure the protection
38of the residents’ personal rights consistent with Sections 4502,
394503, and 4504 of the Welfare and Institutions Code, and any
P192  1applicable personal rights provided in Title 22 of the California
2Code of Regulations.

3(4) A description of how the facility will manage residents’ lack
4of hazard awareness and impulse control behavior.

5(5) A description of the facility’s emergency evacuation
6procedures.

7(g) Secured perimeters shall not substitute for adequate staff.

8(h) Emergency fire and earthquake drills shall be conducted on
9each shift in accordance with existing licensing requirements, and
10shall include all facility staff providing resident care and
11supervision on each shift.

12(i) Interior and exterior space shall be available on the facility
13premises to permit clients to move freely and safely.

14(j) For the purpose of using secured perimeters, the licensee
15shall not be required to obtain a waiver or exception to a regulation
16that would otherwise prohibit the locking of a perimeter fence or
17gate.

18(k) This section shall become operative only upon the
19publication in Title 17 of the California Code of Regulations of
20emergency regulations filed by the State Department of
21Developmental Services. These regulations shall be developed
22with stakeholders, including the State Department of Social
23Services, consumer advocates, and regional centers. The regulations
24shall establish program standards for homes that include secured
25perimeters, including requirements and timelines for the completion
26and updating of a comprehensive assessment of each consumer’s
27needs, including the identification through the individual program
28plan process of the services and supports needed to transition the
29consumer to a less restrictive living arrangement, and a timeline
30for identifying or developing those services and supports. The
31regulations shall establish a statewide limit on the total number of
32beds in homes with secured perimeters. The adoption of these
33regulations shall be deemed to be an emergency and necessary for
34the immediate preservation of the public peace, health and safety,
35or general welfare.

36

SEC. 110.  

Section 11378 of the Health and Safety Code is
37amended to read:

38

11378.  

Except as otherwise provided in Article 7 (commencing
39with Section 4110) of Chapter 9 of Division 2 of the Business and
40Professions Code, a person who possesses for sale a controlled
P193  1substance that meets any of the following criteria shall be punished
2by imprisonment pursuant to subdivision (h) of Section 1170 of
3the Penal Code:

4 (1) The substance is classified in Schedule III, IV, or V and is
5not a narcotic drug, except the substance specified in subdivision
6(g) of Section 11056.

7 (2) The substance is specified in subdivision (d) of Section
811054, except paragraphs (13), (14), (15), (20), (21), (22), and
9(23) of subdivision (d).

10 (3) The substance is specified in paragraph (11) of subdivision
11(c) of Section 11056.

12 (4) The substance is specified in paragraph (2) or (3) of
13subdivision (f) of Section 11054.

14 (5) The substance is specified in subdivision (d), (e), or (f),
15except paragraph (3) of subdivision (e) and subparagraphs (A) and
16(B) of paragraph (2) of subdivision (f), of Section 11055.

17

SEC. 111.  

Section 11755 of the Health and Safety Code is
18amended to read:

19

11755.  

The department shall do all of the following:

20(a) Adopt regulations pursuant to Section 11152 of the
21Government Code.

22(b) Employ administrative, technical, and other personnel as
23may be necessary for the performance of its powers and duties.

24(c) Do or perform any of the acts that may be necessary,
25desirable, or proper to carry out the purpose of this division.

26(d) Provide funds to counties for the planning and
27implementation of local programs to alleviate problems related to
28alcohol and other drug use.

29(e) Review and execute contracts for drug and alcohol services
30submitted for funds allocated or administered by the department.

31(f) Provide for technical assistance and training to local alcohol
32and other drug programs to assist in the planning and
33implementation of quality services.

34(g) Review research in, and serve as a resource to provide
35information relating to, alcohol and other drug programs.

36(h) In cooperation with the Department of Human Resources,
37encourage training in other state agencies to assist the agencies to
38recognize employee problems relating to alcohol and other drug
39use that affects job performance and encourage the employees to
40seek appropriate services.

P194  1(i) Assist and cooperate with the Office of Statewide Health
2Planning and Development in the drafting and adoption of the state
3health plan to ensure inclusion of appropriate provisions relating
4to alcohol and other drug problems.

5(j) In the same manner and subject to the same conditions as
6other state agencies, develop and submit annually to the
7Department of Finance a program budget for the alcohol and other
8drug programs, which budget shall include expenditures proposed
9to be made under this division, and may include expenditures
10proposed to be made by any other state agency relating to alcohol
11and other drug problems, pursuant to an interagency agreement
12with the department.

13(k)  Review and certify alcohol and other drug programs meeting
14state standards pursuant to Chapter 7 (commencing with Section
1511830) and Chapter 13 (commencing with Section 11847) of Part
162.

17(l) Develop standards for ensuring minimal statewide levels of
18service quality provided by alcohol and other drug programs.

19(m) Review and license narcotic treatment programs.

20(n) Develop and implement, in partnership with the counties,
21alcohol and other drug prevention strategies especially designed
22for youth.

23(o) Develop and maintain a centralized alcohol and drug abuse
24indicator data collection system that shall gather and obtain
25information on the status of the alcohol and other drug abuse
26problems in the state. This information shall include, but not be
27limited to, all of the following:

28(1) The number and characteristics of persons receiving recovery
29or treatment services from alcohol and other drug programs
30providing publicly funded services or services licensed by the
31state.

32(2) The location and types of services offered by these programs.

33(3) The number of admissions to hospitals on both an emergency
34room and inpatient basis for treatment related to alcohol and other
35drugs.

36(4) The number of arrests for alcohol and other drug violations.

37(5) The number of Department of Corrections and
38Rehabilitation, Division of Juvenile Facilities, commitments for
39drug violations.

P195  1(6) The number of Department of Corrections and Rehabilitation
2commitments for drug violations.

3(7) The number or percentage of persons having alcohol or other
4drug problems as determined by survey information.

5(8) The amounts of illicit drugs confiscated by law enforcement
6in the state.

7(9) The statewide alcohol and other drug program distribution
8and the fiscal impact of alcohol and other drug problems upon the
9state.

10Providers of publicly funded services or services licensed by the
11department to clients-participants shall report data in a manner, in
12a format, and under a schedule prescribed by the department.

13(p) Issue an annual report that portrays the drugs abused,
14populations affected, user characteristics, crime-related costs,
15socioeconomic costs, and other related information deemed
16necessary in providing a problem profile of alcohol and other drug
17abuse in the state.

18(q) (1) Require any individual, public or private organization,
19or government agency, receiving federal grant funds, to comply
20with all federal statutes, regulations, guidelines, and terms and
21conditions of the grants. The failure of the individual, public or
22private organization, or government agency, to comply with the
23statutes, regulations, guidelines, and terms and conditions of grants
24received may result in the department’s disallowing noncompliant
25costs, or the suspension or termination of the contract or grant
26award allocating the grant funds.

27(2) Adopt regulations implementing this subdivision in
28accordance with Chapter 3.5 (commencing with Section 11340)
29of Part 1 of Division 3 of Title 2 of the Government Code. For the
30purposes of the Administrative Procedure Act, the adoption of the
31regulations shall be deemed necessary for the preservation of the
32public peace, health and safety, or general welfare. Subsequent
33amendments to the adoption of emergency regulations shall be
34deemed an emergency only if those amendments are adopted in
35direct response to a change in federal statutes, regulations,
36guidelines, or the terms and conditions of federal grants. Nothing
37in this paragraph shall be interpreted as prohibiting the department
38from adopting subsequent amendments on a nonemergency basis
39or as emergency regulations in accordance with the standards set
40forth in Section 11346.1 of the Government Code.

P196  1

SEC. 112.  

Section 25110.11 of the Health and Safety Code is
2amended to read:

3

25110.11.  

(a) “Contained gaseous material,” for purposes of
4subdivision (a) of Section 25124 or any other provision of this
5chapter, means any gas that is contained in an enclosed cylinder
6or other enclosed container.

7(b) Notwithstanding subdivision (a), “contained gaseous
8material” does not include any exhaust or flue gas, or other vapor
9stream, or any air or exhaust gas stream that is filtered or otherwise
10processed to remove particulates, dusts, or other air pollutants,
11regardless of the source.

12

SEC. 113.  

Section 34177 of the Health and Safety Code is
13amended to read:

14

34177.  

Successor agencies are required to do all of the
15following:

16(a) Continue to make payments due for enforceable obligations.

17(1) On and after February 1, 2012, and until a Recognized
18Obligation Payment Schedule becomes operative, only payments
19required pursuant to an enforceable obligations payment schedule
20shall be made. The initial enforceable obligation payment schedule
21shall be the last schedule adopted by the redevelopment agency
22under Section 34169. However, payments associated with
23obligations excluded from the definition of enforceable obligations
24by paragraph (2) of subdivision (d) of Section 34171 shall be
25excluded from the enforceable obligations payment schedule and
26be removed from the last schedule adopted by the redevelopment
27agency under Section 34169 prior to the successor agency adopting
28it as its enforceable obligations payment schedule pursuant to this
29subdivision. The enforceable obligation payment schedule may
30be amended by the successor agency at any public meeting and
31shall be subject to the approval of the oversight board as soon as
32the board has sufficient members to form a quorum. In recognition
33of the fact that the timing of the California Supreme Court’s ruling
34in the case California Redevelopment Association v. Matosantos
35(2011) 53 Cal.4th 231 delayed the preparation by successor
36agencies and the approval by oversight boards of the January 1,
372012, through June 30, 2012, Recognized Obligation Payment
38Schedule, a successor agency may amend the Enforceable
39Obligation Payment Schedule to authorize the continued payment
40of enforceable obligations until the time that the January 1, 2012,
P197  1through June 30, 2012, Recognized Obligation Payment Schedule
2has been approved by the oversight board and by the Department
3of Finance.

4(2) The Department of Finance and the Controller shall each
5have the authority to require any documents associated with the
6enforceable obligations to be provided to them in a manner of their
7choosing. Any taxing entity, the department, and the Controller
8shall each have standing to file a judicial action to prevent a
9violation under this part and to obtain injunctive or other
10appropriate relief.

11(3) Commencing on the date the Recognized Obligation Payment
12Schedule is valid pursuant to subdivision (l), only those payments
13listed in the Recognized Obligation Payment Schedule may be
14made by the successor agency from the funds specified in the
15Recognized Obligation Payment Schedule. In addition, after it
16becomes valid, the Recognized Obligation Payment Schedule shall
17supersede the Statement of Indebtedness, which shall no longer
18be prepared nor have any effect under the Community
19Redevelopment Law (Part 1 (commencing with Section 33000)).

20(4) Nothing in the act adding this part is to be construed as
21preventing a successor agency, with the prior approval of the
22oversight board, as described in Section 34179, from making
23payments for enforceable obligations from sources other than those
24listed in the Recognized Obligation Payment Schedule.

25(5) From February 1, 2012, to July 1, 2012, a successor agency
26shall have no authority and is hereby prohibited from accelerating
27payment or making any lump-sum payments that are intended to
28prepay loans unless such accelerated repayments were required
29prior to the effective date of this part.

30(b) Maintain reserves in the amount required by indentures,
31trust indentures, or similar documents governing the issuance of
32outstanding redevelopment agency bonds.

33(c) Perform obligations required pursuant to any enforceable
34obligation.

35(d) Remit unencumbered balances of redevelopment agency
36funds to the county auditor-controller for distribution to the taxing
37entities, including, but not limited to, the unencumbered balance
38of the Low and Moderate Income Housing Fund of a former
39redevelopment agency. In making the distribution, the county
40auditor-controller shall utilize the same methodology for allocation
P198  1and distribution of property tax revenues provided in Section
234188.

3(e) Dispose of assets and properties of the former redevelopment
4agency as directed by the oversight board; provided, however, that
5the oversight board may instead direct the successor agency to
6transfer ownership of certain assets pursuant to subdivision (a) of
7Section 34181. The disposal is to be done expeditiously and in a
8manner aimed at maximizing value. Proceeds from asset sales and
9related funds that are no longer needed for approved development
10projects or to otherwise wind down the affairs of the agency, each
11as determined by the oversight board, shall be transferred to the
12county auditor-controller for distribution as property tax proceeds
13under Section 34188. The requirements of this subdivision shall
14not apply to a successor agency that has been issued a finding of
15completion by the Department of Finance pursuant to Section
1634179.7.

17(f) Enforce all former redevelopment agency rights for the
18benefit of the taxing entities, including, but not limited to,
19continuing to collect loans, rents, and other revenues that were due
20to the redevelopment agency.

21(g) Effectuate transfer of housing functions and assets to the
22appropriate entity designated pursuant to Section 34176.

23(h) Expeditiously wind down the affairs of the redevelopment
24agency pursuant to the provisions of this part and in accordance
25with the direction of the oversight board.

26(i) Continue to oversee development of properties until the
27contracted work has been completed or the contractual obligations
28of the former redevelopment agency can be transferred to other
29parties. Bond proceeds shall be used for the purposes for which
30bonds were sold unless the purposes can no longer be achieved,
31in which case, the proceeds may be used to defease the bonds.

32(j) Prepare a proposed administrative budget and submit it to
33the oversight board for its approval. The proposed administrative
34budget shall include all of the following:

35(1) Estimated amounts for successor agency administrative costs
36for the upcoming six-month fiscal period.

37(2) Proposed sources of payment for the costs identified in
38paragraph (1).

39(3) Proposals for arrangements for administrative and operations
40services provided by a city, county, city and county, or other entity.

P199  1(k) Provide administrative cost estimates, from its approved
2administrative budget that are to be paid from property tax revenues
3deposited in the Redevelopment Property Tax Trust Fund, to the
4county auditor-controller for each six-month fiscal period.

5(l) (1) Before each six-month fiscal period, prepare a
6Recognized Obligation Payment Schedule in accordance with the
7requirements of this paragraph. For each recognized obligation,
8the Recognized Obligation Payment Schedule shall identify one
9or more of the following sources of payment:

10(A) Low and Moderate Income Housing Fund.

11(B) Bond proceeds.

12(C) Reserve balances.

13(D) Administrative cost allowance.

14(E) The Redevelopment Property Tax Trust Fund, but only to
15the extent no other funding source is available or when payment
16from property tax revenues is required by an enforceable obligation
17or by this part.

18(F) Other revenue sources, including rents, concessions, asset
19sale proceeds, interest earnings, and any other revenues derived
20from the former redevelopment agency, as approved by the
21oversight board in accordance with this part.

22(2) A Recognized Obligation Payment Schedule shall not be
23deemed valid unless all of the following conditions have been met:

24(A) A Recognized Obligation Payment Schedule is prepared
25by the successor agency for the enforceable obligations of the
26former redevelopment agency. The initial schedule shall project
27the dates and amounts of scheduled payments for each enforceable
28obligation for the remainder of the time period during which the
29redevelopment agency would have been authorized to obligate
30property tax increment had the redevelopment agency not been
31dissolved.

32(B) The Recognized Obligation Payment Schedule is submitted
33to and duly approved by the oversight board. The successor agency
34shall submit a copy of the Recognized Obligation Payment
35Schedule to the county administrative officer, the county
36auditor-controller, and the Department of Finance at the same time
37that the successor agency submits the Recognized Obligation
38Payment Schedule to the oversight board for approval.

39(C) A copy of the approved Recognized Obligation Payment
40Schedule is submitted to the county auditor-controller and both
P200  1the Controller’s office and the Department of Finance and be posted
2on the successor agency’s Internet Web site.

3(3) The Recognized Obligation Payment Schedule shall be
4forward looking to the next six months. The first Recognized
5Obligation Payment Schedule shall be submitted to the Controller’s
6office and the Department of Finance by April 15, 2012, for the
7period of January 1, 2012, to June 30, 2012, inclusive. This
8Recognized Obligation Payment Schedule shall include all
9payments made by the former redevelopment agency between
10January 1, 2012, through January 31, 2012, and shall include all
11payments proposed to be made by the successor agency from
12February 1, 2012, through June 30, 2012. Former redevelopment
13agency enforceable obligation payments due, and reasonable or
14necessary administrative costs due or incurred, prior to January 1,
152012, shall be made from property tax revenues received in the
16spring of 2011 property tax distribution, and from other revenues
17and balances transferred to the successor agency.

18(m) The Recognized Obligation Payment Schedule for the period
19of January 1, 2013, to June 30, 2013, shall be submitted by the
20successor agency, after approval by the oversight board, no later
21than September 1, 2012. Commencing with the Recognized
22Obligation Payment Schedule covering the period July 1, 2013,
23through December 31, 2013, successor agencies shall submit an
24oversight board-approved Recognized Obligation Payment
25Schedule to the Department of Finance and to the county
26auditor-controller no fewer than 90 days before the date of property
27tax distribution. The Department of Finance shall make its
28determination of the enforceable obligations and the amounts and
29funding sources of the enforceable obligations no later than 45
30days after the Recognized Obligation Payment Schedule is
31submitted. Within five business days of the department’s
32determination, a successor agency may request additional review
33by the department and an opportunity to meet and confer on
34disputed items. The meet and confer period may vary; an untimely
35submittal of a Recognized Obligation Payment Schedule may result
36in a meet and confer period of less than 30 days. The department
37shall notify the successor agency and the county auditor-controllers
38as to the outcome of its review at least 15 days before the date of
39property tax distribution.

P201  1(1) The successor agency shall submit a copy of the Recognized
2Obligation Payment Schedule to the Department of Finance
3 electronically, and the successor agency shall complete the
4Recognized Obligation Payment Schedule in the manner provided
5 for by the department. A successor agency shall be in
6noncompliance with this paragraph if it only submits to the
7department an electronic message or a letter stating that the
8oversight board has approved a Recognized Obligation Payment
9Schedule.

10(2) If a successor agency does not submit a Recognized
11Obligation Payment Schedule by the deadlines provided in this
12subdivision, the city, county, or city and county that created the
13redevelopment agency shall be subject to a civil penalty equal to
14ten thousand dollars ($10,000) per day for every day the schedule
15is not submitted to the department. The civil penalty shall be paid
16to the county auditor-controller for allocation to the taxing entities
17under Section 34183. If a successor agency fails to submit a
18Recognized Obligation Payment Schedule by the deadline, any
19creditor of the successor agency or the Department of Finance or
20any affected taxing entity shall have standing to and may request
21a writ of mandate to require the successor agency to immediately
22perform this duty. Those actions may be filed only in the County
23of Sacramento and shall have priority over other civil matters.
24Additionally, if an agency does not submit a Recognized Obligation
25Payment Schedule within 10 days of the deadline, the maximum
26administrative cost allowance for that period shall be reduced by
2725 percent.

28(3) If a successor agency fails to submit to the department an
29oversight board-approved Recognized Obligation Payment
30Schedule that complies with all requirements of this subdivision
31within five business days of the date upon which the Recognized
32Obligation Payment Schedule is to be used to determine the amount
33of property tax allocations, the department may determine if any
34amount should be withheld by the county auditor-controller for
35payments for enforceable obligations from distribution to taxing
36entities, pending approval of a Recognized Obligation Payment
37Schedule. The county auditor-controller shall distribute the portion
38of any of the sums withheld pursuant to this paragraph to the
39affected taxing entities in accordance with paragraph (4) of
40subdivision (a) of Section 34183 upon notice by the department
P202  1that a portion of the withheld balances are in excess of the amount
2of enforceable obligations. The county auditor-controller shall
3distribute withheld funds to the successor agency only in
4accordance with a Recognized Obligation Payment Schedule
5approved by the department. County auditor-controllers shall lack
6the authority to withhold any other amounts from the allocations
7provided for under Section 34183 or 34188, unless required by a
8court order.

9(n) Cause a postaudit of the financial transactions and records
10of the successor agency to be made at least annually by a certified
11public accountant.

12

SEC. 114.  

Section 34183.5 of the Health and Safety Code is
13amended to read:

14

34183.5.  

(a) The Legislature hereby finds and declares that
15due to the delayed implementation of this part due to the California
16Supreme Court’s ruling in the case California Redevelopment
17Association v. Matosantos (2011) 53 Cal.4th 231, some disruption
18to the intended application of this part and other law with respect
19to passthrough payments may have occurred.

20(1) If a redevelopment agency or successor agency did not pay
21any portion of an amount owed for the 2011-12 fiscal year to an
22affected taxing entity pursuant to Section 33401, 33492.140, 33607,
2333607.5, 33607.7, or 33676, or pursuant to any passthrough
24agreement entered into before January 1, 1994, between a
25redevelopment agency and an affected taxing entity, and to the
26extent the county auditor-controller did not remit the amounts
27owed for passthrough payments during the 2011-12 fiscal year,
28the county auditor-controller shall make the required payments to
29the taxing entities owed passthrough payments and shall reduce
30the amounts to which the successor agency would otherwise be
31entitled pursuant to paragraph (2) of subdivision (a) of Section
3234183 at the next allocation of property tax under this part, subject
33to subdivision (b) of Section 34183. If the amount of available
34property tax allocation to the successor agency is not sufficient to
35make the required payment, the county auditor-controller shall
36continue to reduce allocations to the successor agency under
37paragraph (2) of subdivision (a) of Section 34183 until the time
38that the owed amount is fully paid. Alternatively, the county
39auditor-controller may accept payment from the successor agency’s
P203  1reserve funds for payments of passthrough payments owed as
2defined in this subdivision.

3(2) If a redevelopment agency did not pay any portion of the
4amount owed for the 2011-12 fiscal year to an affected taxing
5entity pursuant to Section 33401, 33492.140, 33607, 33607.5,
633607.7, or 33676, or pursuant to any passthrough agreement
7entered into before January 1, 1994, between a redevelopment
8agency and an affected taxing entity, but the county
9auditor-controller did pay the difference that was owing, the county
10auditor-controller shall deduct from the next allocation of property
11tax to the successor agency under paragraph (2) of subdivision (a)
12of Section 34183, the amount of the payment made on behalf of
13the successor agency by the county auditor-controller, not to exceed
14one-half the amount of passthrough payments owed for the
152011-12 fiscal year. If the amount of available property tax
16allocation to the successor agency is not sufficient to make the
17required deduction, the county auditor-controller shall continue to
18reduce allocations to the successor agency under paragraph (2) of
19subdivision (a) of Section 34183 until the time that the amount is
20fully deducted. Alternatively, the auditor-controller may accept
21payment from the successor agency’s reserve funds for deductions
22of passthrough payments owed as defined in this subdivision.
23Amounts reduced from successor agency payments under this
24paragraph are available for the purposes of paragraphs (2) to (4),
25inclusive, of subdivision (a) of Section 34183 for the six-month
26period for which the property tax revenues are being allocated.

27(b) In recognition of the fact that county auditor-controllers
28were unable to make the payments required by paragraph (4) of
29subdivision (a) of Section 34183 for the period January 1, 2012,
30through June 30, 2012, on January 16, 2012, due to the California
31Supreme Court’s ruling in the case of California Redevelopment
32Association v. Matosantos (2011) 53 Cal.4th 231, in addition to
33taking the actions specified in Section 34183 with respect to the
34June 1 property tax allocations, county auditor-controllers should
35have made allocations as provided in paragraph (1).

36(1) From the allocations made on June 1, 2012, for the
37Recognized Obligation Payment Schedule covering the period
38July 1, 2012, through December 31, 2012, deduct from the amount
39that otherwise would be deposited in the Redevelopment Property
40Tax Trust Fund on behalf of the successor agency an amount
P204  1equivalent to the amount that each affected taxing entity was
2entitled to pursuant to paragraph (4) of subdivision (a) of Section
334183 for the period January 1, 2012, through June 30, 2012. The
4amount to be retained by taxing entities pursuant to paragraph (4)
5of subdivision (a) of Section 34183 for the January 1, 2012, through
6June 30, 2012, period is determined based on the Recognized
7Obligation Payment Schedule approved by the Department of
8Finance pursuant to subdivision (h) of Section 34179 and any
9amount determined to be owed pursuant to this subdivision. Any
10amounts so computed shall not be offset by any shortages in
11funding for recognized obligations for the period covering July 1,
122012, through December 31, 2012.

13(2) (A) If an affected taxing entity has not received the full
14amount to which it was entitled pursuant to paragraph (4) of
15subdivision (a) of Section 34183 of the property tax distributed
16for the period January 1, 2012, through June 30, 2012, and
17paragraph (1), no later than July 9, 2012, the county
18auditor-controller shall determine the amount, if any, that is owed
19by each successor agency to taxing entities and send a demand for
20payment from the funds of the successor agency for the amount
21owed to taxing entities if it has distributed the June 1, 2012,
22allocation to the successor agencies. No later than July 12, 2012,
23successor agencies shall make payment of the amounts demanded
24to the county auditor-controller for deposit into the Redevelopment
25Property Tax Trust Fund and subsequent distribution to taxing
26entities. No later than July 16, 2012, the county auditor-controller
27shall make allocations of all money received by that date from
28successor agencies in amounts owed to taxing entities under this
29paragraph to taxing entities in accordance with Section 34183. The
30county auditor-controller shall make allocations of any money
31received after that date under this paragraph within five business
32days of receipt. These duties are not discretionary and shall be
33carried out with due diligence.

34(B) If a county auditor-controller fails to determine the amounts
35owed to taxing entities and present a demand for payment by July
369, 2012, to the successor agencies, the Department of Finance or
37any affected taxing entity may request a writ of mandate to require
38the county auditor-controller to immediately perform this duty.
39Such actions may be filed only in the County of Sacramento and
40 shall have priority over other civil matters. Any county in which
P205  1the county auditor-controller fails to perform the duties under this
2paragraph shall be subject to a civil penalty of 10 percent of the
3amount owed to taxing entities plus 1.5 percent of the amount
4owed to taxing entities for each month that the duties are not
5performed. The civil penalties shall be payable to the taxing entities
6under Section 34183. Additionally, any county in which the county
7auditor-controller fails to make the required determinations and
8demands for payment under this paragraph by July 9, 2012, or fails
9to distribute the full amount of funds received from successor
10agencies as required by this paragraph shall not receive the
11distribution of sales and use tax scheduled for July 18, 2012, or
12any subsequent payment, up to the amount owed to taxing entities,
13until the county auditor-controller performs the duties required by
14this paragraph.

15(C) If a successor agency fails to make the payment demanded
16under subparagraph (A) by July 12, 2012, the Department of
17Finance or any affected taxing entity may file for a writ of mandate
18to require the successor agency to immediately make this payment.
19Such actions may be filed only in the County of Sacramento and
20shall have priority over other civil matters. Any successor agency
21that fails to make payment by July 12, 2012, under this paragraph
22shall be subject to a civil penalty of 10 percent of the amount owed
23to taxing entities plus one and one-half percent of the amount owed
24to taxing entities for each month that the payments are not made.
25Additionally, the city or county or city and county that created the
26redevelopment agency shall also be subject to a civil penalty of
2710 percent of the amount owed to taxing entities plus 1.5 percent
28of the amount owed to taxing entities for each month the payment
29is late. The civil penalties shall be payable to the taxing entities
30under Section 34183. If the Department of Finance finds that the
31imposition of penalties will jeopardize the payment of enforceable
32obligations it may request the court to waive some or all of the
33penalties. A successor agency that does not pay the amount
34required under this subparagraph by July 12, 2012, shall not pay
35any obligations other than bond debt service until full payment is
36made to the county auditor-controller. Additionally, any city,
37county or city and county that created the redevelopment agency
38that fails to make the required payment under this paragraph by
39July 12, 2012, shall not receive the distribution of sales and use
40tax scheduled for July 18, 2012, or any subsequent payment, up
P206  1to the amount owed to taxing entities, until the payment required
2by this paragraph is made.

3(D) The Legislature hereby finds and declares that time is of
4the essence. Funds that should have been received and were
5expected and spent in anticipation of receipt by community
6colleges, schools, counties, cities, and special districts have not
7been received resulting in significant fiscal impact to the state and
8taxing entities. Continued delay and uncertainty whether funds
9will be received warrants the availability of extraordinary relief
10as authorized herein.

11(3) If an affected taxing entity has not received the full amount
12to which it was entitled pursuant to paragraph (4) of subdivision
13(a) of Section 34183 for the period January 1, 2012, through June
1430, 2012, and paragraph (1), the county auditor-controller shall
15reapply paragraph (1) to each subsequent property tax allocation
16until such time as the affected taxing entity has received the full
17amount to which it was entitled pursuant to paragraph (4) of
18subdivision (a) of Section 34183 for the period January 1, 2012,
19through June 30, 2012.

20

SEC. 115.  

Section 39053 of the Health and Safety Code is
21amended to read:

22

39053.  

“State board” means the State Air Resources Board.

23

SEC. 116.  

Section 39510 of the Health and Safety Code is
24amended to read:

25

39510.  

(a) The State Air Resources Board is continued in
26existence in the California Environmental Protection Agency. The
27state board shall consist of 12 members.

28(b) The members shall be appointed by the Governor, with the
29consent of the Senate, on the basis of their demonstrated interest
30and proven ability in the field of air pollution control and their
31understanding of the needs of the general public in connection
32with air pollution problems.

33(c) Six members shall have the following qualifications:

34(1) One member shall have training and experience in
35automotive engineering or closely related fields.

36(2) One member shall have training and experience in chemistry,
37meteorology, or related scientific fields, including agriculture or
38law.

39(3) One member shall be a physician and surgeon or an authority
40on health effects of air pollution.

P207  1(4) Two members shall be public members.

2(5) One member shall have the qualifications specified in
3paragraph (1), (2), or (3) or shall have experience in the field of
4air pollution control.

5(d) Six members shall be board members from districts who
6shall reflect the qualitative requirements of subdivision (c) to the
7extent practicable. Of these members:

8(1) One shall be a board member from the south coast district.

9(2) One shall be a board member from the bay district.

10(3) One shall be a board member from the San Joaquin Valley
11Unified Air Pollution Control District.

12(4) One shall be a board member from the San Diego County
13Air Pollution Control District.

14(5) One shall be a board member from the Sacramento district,
15the Placer County Air Pollution Control District, the Yolo-Solano
16Air Quality Management District, the Feather River Air Quality
17Management District, or the El Dorado County Air Pollution
18Control District.

19(6) One shall be a board member of any other district.

20(e) Any vacancy shall be filled by the Governor within 30 days
21of the date on which it occurs. If the Governor fails to make an
22appointment for any vacancy within the 30-day period, the Senate
23Committee on Rules may make the appointment to fill the vacancy
24in accordance with this section.

25(f) While serving on the state board, all members shall exercise
26their independent judgment as officers of the state on behalf of the
27interests of the entire state in furthering the purposes of this
28division. A member of the state board shall not be precluded from
29voting or otherwise acting upon any matter solely because that
30member has voted or acted upon the matter in his or her capacity
31as a member of a district board, except that a member of the state
32board who is also a member of a district board shall not participate
33in any action regarding his or her district taken by the state board
34pursuant to Sections 41503 to 41505, inclusive.

35

SEC. 117.  

Section 39710 of the Health and Safety Code is
36amended to read:

37

39710.  

For purposes of this chapter, “fund” means the
38Greenhouse Gas Reduction Fund, created pursuant to Section
3916428.8 of the Government Code.

P208  1

SEC. 118.  

Section 39712 of the Health and Safety Code is
2amended to read:

3

39712.  

(a) (1) It is the intent of the Legislature that moneys
4shall be appropriated from the fund only in a manner consistent
5with the requirements of this chapter and Article 9.7 (commencing
6with Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title
72 of the Government Code.

8(2) The state shall not approve allocations for a measure or
9program using moneys appropriated from the fund except after
10determining, based on the available evidence, that the use of those
11moneys furthers the regulatory purposes of Division 25.5
12(commencing with Section 38500) and is consistent with law. If
13any expenditure of moneys from the fund for any measure or
14project is determined by a court to be inconsistent with law, the
15allocations for the remaining measures or projects shall be
16severable and shall not be affected.

17(b) Moneys shall be used to facilitate the achievement of
18reductions of greenhouse gas emissions in this state consistent
19with Division 25.5 (commencing with Section 38500) and, where
20applicable and to the extent feasible:

21(1) Maximize economic, environmental, and public health
22benefits to the state.

23(2) Foster job creation by promoting in-state greenhouse gas
24emissions reduction projects carried out by California workers and
25businesses.

26(3) Complement efforts to improve air quality.

27(4) Direct investment toward the most disadvantaged
28communities and households in the state.

29(5) Provide opportunities for businesses, public agencies,
30nonprofits, and other community institutions to participate in and
31benefit from statewide efforts to reduce greenhouse gas emissions.

32(6) Lessen the impacts and effects of climate change on the
33state’s communities, economy, and environment.

34(c) Moneys appropriated from the fund may be allocated,
35consistent with subdivision (a), for the purpose of reducing
36greenhouse gas emissions in this state through investments that
37may include, but are not limited to, any of the following:

38(1) Funding to reduce greenhouse gas emissions through energy
39efficiency, clean and renewable energy generation, distributed
40renewable energy generation, transmission and storage, and other
P209  1related actions, including, but not limited to, at public universities,
2state and local public buildings, and industrial and manufacturing
3facilities.

4(2) Funding to reduce greenhouse gas emissions through the
5development of state-of-the-art systems to move goods and freight,
6advanced technology vehicles and vehicle infrastructure, advanced
7biofuels, and low-carbon and efficient public transportation.

8(3) Funding to reduce greenhouse gas emissions associated with
9water use and supply, land and natural resource conservation and
10management, forestry, and sustainable agriculture.

11(4) Funding to reduce greenhouse gas emissions through
12strategic planning and development of sustainable infrastructure
13projects, including, but not limited to, transportation and housing.

14(5) Funding to reduce greenhouse gas emissions through
15increased in-state diversion of municipal solid waste from disposal
16through waste reduction, diversion, and reuse.

17(6) Funding to reduce greenhouse gas emissions through
18investments in programs implemented by local and regional
19agencies, local and regional collaboratives, and nonprofit
20organizations coordinating with local governments.

21(7) Funding research, development, and deployment of
22innovative technologies, measures, and practices related to
23programs and projects funded pursuant to this chapter.

24

SEC. 119.  

Section 39716 of the Health and Safety Code is
25amended to read:

26

39716.  

(a) The Department of Finance, on behalf of the
27Governor, and in consultation with the state board and any other
28relevant state entity, shall develop and submit to the Legislature
29at the time of the department’s adjustments to the proposed
302013-14 fiscal year budget pursuant to subdivision (e) of Section
3113308 of the Government Code a three-year investment plan.
32Commencing with the 2016-17 fiscal year budget and every three
33years thereafter, with the release of the Governor’s budget proposal,
34the Department of Finance shall include updates to the investment
35plan following the public process described in subdivisions (b)
36and (c). The investment plan, consistent with the requirements of
37Section 39712, shall do all of the following:

38(1) Identify the state’s near-term and long-term greenhouse gas
39emissions reduction goals and targets by sector.

P210  1(2) Analyze gaps, where applicable, in current state strategies
2to meeting the state’s greenhouse gas emissions reduction goals
3and targets by sector.

4(3) Identify priority programmatic investments of moneys that
5will facilitate the achievement of feasible and cost-effective
6greenhouse gas emissions reductions toward achievement of
7greenhouse gas reduction goals and targets by sector, consistent
8with subdivision (c) of Section 39712.

9(b) (1) The state board shall hold at least two public workshops
10in different regions of the state and one public hearing prior to the
11Department of Finance submitting the investment plan.

12(2) The state board shall, prior to the submission of each
13investment plan, consult with the Public Utilities Commission to
14ensure the investment plan is coordinated with, and does not
15conflict with or unduly overlap with, activities under the oversight
16or administration of the Public Utilities Commission undertaken
17pursuant to Part 5 (commencing with Section 38570) of Division
1825.5 or other activities under the oversight or administration of
19the Public Utilities Commission that facilitate greenhouse gas
20emissions reductions consistent with this division. The investment
21plan shall include a description of the use of any moneys generated
22by the sale of allowances received at no cost by the investor-owned
23utilities pursuant to a market-based compliance mechanism.

24(c) The Climate Action Team, established under Executive
25Order S-3-05, shall provide information to the Department of
26Finance and the state board to assist in the development of each
27investment plan. The Climate Action Team shall participate in
28each public workshop held on an investment plan and provide
29testimony to the state board on each investment plan. For purposes
30of this section, the Secretary of Labor and Workforce Development
31shall assist the Climate Action Team in its efforts.

32

SEC. 120.  

Section 39718 of the Health and Safety Code is
33amended to read:

34

39718.  

(a) Moneys in the fund shall be appropriated through
35the annual Budget Act consistent with the investment plan
36developed and submitted pursuant to Section 39716.

37(b) Upon appropriation, moneys in the fund shall be available
38to the state board and to administering agencies for administrative
39purposes in carrying out this chapter.

P211  1(c) Any repayment of loans, including interest payments and
2all interest earnings on or accruing to any moneys, resulting from
3implementation of this chapter shall be deposited in the fund for
4purposes of this chapter.

5

SEC. 121.  

Section 106985 of the Health and Safety Code is
6amended to read:

7

106985.  

(a) (1) Notwithstanding Section 2052 of the Business
8and Professions Code or any other law, a radiologic technologist
9certified pursuant to the Radiologic Technology Act (Section 27)
10may, under the direct supervision of a licensed physician and
11surgeon, and in accordance with the facility’s protocol that meets,
12at a minimum, the requirements described in paragraph (2), perform
13venipuncture in an upper extremity to administer contrast materials,
14manually or by utilizing a mechanical injector, if the radiologic
15technologist has been deemed competent to perform that
16venipuncture, in accordance with paragraph (3), and issued a
17certificate, as described in subdivision (b).

18(2) (A) In administering contrast materials, a radiologic
19technologist may, to ensure the security and integrity of the
20needle’s placement or of an existing intravenous cannula, use a
21saline-based solution that conforms with the facility’s protocol
22and that has been approved by a licensed physician and surgeon.
23The protocol shall specify that only contrast materials or
24pharmaceuticals approved by the United States Food and Drug
25Administration may be used and shall also specify that the use
26shall be in accordance with the labeling.

27(B) A person who is currently certified as meeting the standards
28of competence in nuclear medicine technology pursuant to Article
296 (commencing with Section 107150) and who is authorized to
30perform a computerized tomography scanner only on a dual-mode
31machine, as described in Section 106976, may perform the conduct
32described in this subdivision.

33(3) Prior to performing venipuncture pursuant to paragraph (1),
34a radiologic technologist shall have performed at least 10
35venipunctures on live humans under the personal supervision of
36a licensed physician and surgeon, a registered nurse, or a person
37the physician or nurse has previously deemed qualified to provide
38personal supervision to the technologist for purposes of performing
39venipuncture pursuant to this paragraph. Only after completion of
40a minimum of 10 venipunctures may the supervising individual
P212  1evaluate whether the technologist is competent to perform
2venipuncture under direct supervision. The number of
3venipunctures required in this paragraph are in addition to those
4performed for meeting the requirements of paragraph (2) of
5subdivision (d). The facility shall document compliance with this
6subdivision.

7(b) The radiologic technologist shall be issued a certificate as
8specified in subdivision (e) or by an instructor indicating
9satisfactory completion of the training and education described in
10subdivision (d). This certificate documents completion of the
11required education and training and may not, by itself, be construed
12to authorize a person to perform venipuncture or to administer
13contrast materials.

14(c) (1) “Direct supervision,” for purposes of this section, means
15the direction of procedures authorized by this section by a licensed
16physician and surgeon who shall be physically present within the
17facility and available within the facility where the procedures are
18performed, in order to provide immediate medical intervention to
19prevent or mitigate injury to the patient in the event of adverse
20reaction.

21(2) “Personal supervision,” for purposes of this section, means
22the oversight of the procedures authorized by this section by a
23supervising individual identified in paragraph (3) of subdivision
24(a) who is physically present to observe, and correct, as needed,
25the performance of the individual who is performing the procedure.

26(d) The radiologic technologist shall have completed both of
27the following:

28(1) Received a total of 10 hours of instruction, including all of
29the following:

30(A) Anatomy and physiology of venipuncture sites.

31(B) Venipuncture instruments, intravenous solutions, and related
32equipment.

33(C) Puncture techniques.

34(D) Techniques of intravenous line establishment.

35(E) Hazards and complications of venipuncture.

36(F) Postpuncture care.

37(G) Composition and purpose of antianaphylaxis tray.

38(H) First aid and basic cardiopulmonary resuscitation.

39(2) Performed 10 venipunctures on a human or training
40mannequin upper extremity (for example, an infusion arm or a
P213  1mannequin arm) under personal supervision. If performance is on
2a human, only an upper extremity may be used.

3(e)  Schools for radiologic technologists shall include the
4training and education specified in subdivision (d). Upon
5satisfactory completion of the training and education, the school
6shall issue to the student a completion document. This document
7may not be construed to authorize a person to perform venipuncture
8or to administer contrast materials.

9(f)  Nothing in this section shall be construed to authorize a
10radiologic technologist to perform arterial puncture, any central
11venous access procedures including repositioning of previously
12placed central venous catheter except as specified in paragraph (1)
13of subdivision (a), or cutdowns, or establish an intravenous line.

14(g) This section shall not be construed to apply to a person who
15is currently certified as meeting the standards of competence in
16nuclear medicine technology pursuant to Article 6 (commencing
17with Section 107150), except as provided in subparagraph (B) of
18paragraph (2) of subdivision (a).

19(h) Radiologic technologists who met the training and education
20requirements of subdivision (d) prior to January 1, 2013, need not
21repeat those requirements, or perform the venipunctures specified
22in paragraph (3) of subdivision (a), provided the facility documents
23that the radiologic technologist is competent to perform the tasks
24specified in paragraph (1) of subdivision (a).

25

SEC. 122.  

Section 114365.5 of the Health and Safety Code is
26amended to read:

27

114365.5.  

(a) The department shall adopt and post on its
28Internet Web site a list of nonpotentially hazardous foods and their
29ethnic variations that are approved for sale by a cottage food
30operation. A cottage food product shall not be potentially hazardous
31food, as defined in Section 113871.

32(b) This list of nonpotentially hazardous foods shall include,
33but not be limited to, all of the following:

34(1) Baked goods without cream, custard, or meat fillings, such
35as breads, biscuits, churros, cookies, pastries, and tortillas.

36(2) Candy, such as brittle and toffee.

37(3) Chocolate-covered nonperishable foods, such as nuts and
38dried fruit.

39(4) Dried fruit.

40(5) Dried pasta.

P214  1(6) Dry baking mixes.

2(7) Fruit pies, fruit empanadas, and fruit tamales.

3(8) Granola, cereals, and trail mixes.

4(9) Herb blends and dried mole paste.

5(10) Honey and sweet sorghum syrup.

6(11) Jams, jellies, preserves, and fruit butter that comply with
7the standard described in Part 150 of Title 21 of the Code of
8Federal Regulations.

9(12) Nut mixes and nut butters.

10(13) Popcorn.

11(14) Vinegar and mustard.

12(15) Roasted coffee and dried tea.

13(16) Waffle cones and pizelles.

14(c) (1) The State Public Health Officer may add or delete food
15products to or from the list described in subdivision (b), which
16shall be known as the approved food products list. Notice of any
17change to the approved food products list shall be posted on the
18department’s cottage food program Internet Web site, to also be
19known as the program Internet Web site for purposes of this
20chapter. Any change to the approved food products list shall
21become effective 30 days after the notice is posted. The notice
22shall state the reason for the change, the authority for the change,
23and the nature of the change. The notice will provide an opportunity
24for written comment by indicating the address to which to submit
25the comment and the deadline by which the comment is required
26to be received by the department. The address to which the
27comment is to be submitted may be an electronic site. The notice
28shall allow at least 20 calendar days for comments to be submitted.
29The department shall consider all comments submitted before the
30due date. The department may withdraw the proposed change at
31any time by notification on the program Internet Web site or
32through notification by other electronic means. The approved food
33products list described in subdivision (b), and any updates to the
34list, shall not be subject to the administrative rulemaking
35requirements of Chapter 3.5 (commencing with Section 11340) of
36Part 1 of Division 3 of Title 2 of the Government Code.

37(2) The State Public Health Officer shall not remove any items
38from the approved food products list unless the State Public Health
39Officer also posts information on the program Internet Web site
P215  1explaining the basis upon which the removed food item has been
2determined to be potentially hazardous.

3

SEC. 123.  

Section 114380 of the Health and Safety Code is
4amended to read:

5

114380.  

(a) A person proposing to build or remodel a food
6facility shall submit complete, easily readable plans drawn to scale,
7and specifications to the enforcement agency for review, and shall
8receive plan approval before starting any new construction or
9remodeling of a facility for use as a retail food facility.

10(b) Plans and specifications may also be required by the
11enforcement agency if the agency determines that they are
12necessary to ensure compliance with the requirements of this part,
13including, but not limited to, a menu change or change in the
14facility’s method of operation.

15(c) (1) All new school food facilities or school food facilities
16that undergo modernization or remodeling shall comply with all
17structural requirements of this part. Upon submission of plans by
18a public school authority, the Division of the State Architect and
19the local enforcement agency shall review and approve all new
20and remodeled school facilities for compliance with all applicable
21requirements.

22(2) Notwithstanding subdivision (a), the Office of Statewide
23Health Planning and Development (OSHPD) shall maintain its
24primary jurisdiction over licensed skilled nursing facilities, and
25when new construction, modernization, or remodeling must be
26undertaken to repair existing systems or to keep up the course of
27normal or routine maintenance, the facility shall complete a
28building application and plan check process as required by OSHPD.
29Approval of the plans by OSHPD shall be deemed compliance
30with the plan approval process required by the local county
31enforcement agency described in this section.

32(3) Except when a determination is made by the enforcement
33agency that the nonconforming structural conditions pose a public
34health hazard, existing public and private school cafeterias and
35licensed health care facilities shall be deemed to be in compliance
36with this part pending replacement or renovation.

37(d) Except when a determination is made by the enforcement
38agency that the nonconforming structural conditions pose a public
39health hazard, existing food facilities that were in compliance with
40the law in effect on June 30, 2007, shall be deemed to be in
P216  1compliance with the law pending replacement or renovation. If a
2determination is made by the enforcement agency that a structural
3condition poses a public health hazard, the food facility shall
4remedy the deficiency to the satisfaction of the enforcement
5agency.

6(e) The plans shall be approved or rejected within 20 working
7days after receipt by the enforcement agency and the applicant
8shall be notified of the decision. Unless the plans are approved or
9rejected within 20 working days, they shall be deemed approved.
10The building department shall not issue a building permit for a
11food facility until after it has received plan approval by the
12enforcement agency. Nothing in this section shall require that plans
13or specifications be prepared by someone other than the applicant.

14

SEC. 124.  

Section 116565 of the Health and Safety Code is
15amended to read:

16

116565.  

(a) Each public water system serving 1,000 or more
17service connections, and any public water system that treats water
18on behalf of one or more public water systems for the purpose of
19rendering it safe for human consumption, shall reimburse the
20department for the actual cost incurred by the department for
21conducting those activities mandated by this chapter relating to
22the issuance of domestic water supply permits, inspections,
23monitoring, surveillance, and water quality evaluation that relate
24to that specific public water system. The amount of reimbursement
25shall be sufficient to pay, but in no event shall exceed, the
26department’s actual cost in conducting these activities.

27(b) Each public water system serving fewer than 1,000 service
28connections shall pay an annual drinking water operating fee to
29the department as set forth in this subdivision for costs incurred
30by the department for conducting those activities mandated by this
31chapter relating to inspections, monitoring, surveillance, and water
32quality evaluation relating to public water systems. The total
33amount of fees shall be sufficient to pay, but in no event shall
34exceed, the department’s actual cost in conducting these activities.
35Notwithstanding adjustment of actual fees collected pursuant to
36Section 100425 as authorized pursuant to subdivision (d) of Section
37116590, the amount that shall be paid annually by a public water
38system pursuant to this section shall be as follows:

39(1) Community water systems, six dollars ($6) per service
40connection, but not less than two hundred fifty dollars ($250) per
P217  1water system, which may be increased by the department, as
2provided for in subdivision (f), to ten dollars ($10) per service
3connection, but not less than two hundred fifty dollars ($250) per
4water system.

5(2) Nontransient noncommunity water systems pursuant to
6subdivision (k) of Section 116275, two dollars ($2) per person
7served, but not less than four hundred fifty-six dollars ($456) per
8water system, which may be increased by the department, as
9provided for in subdivision (f), to three dollars ($3) per person
10served, but not less than four hundred fifty-six dollars ($456) per
11water system.

12(3) Transient noncommunity water systems pursuant to
13subdivision (o) of Section 116275, eight hundred dollars ($800)
14per water system, which may be increased by the department, as
15provided for in subdivision (f), to one thousand three hundred
16thirty-five dollars ($1,335) per water system.

17(4) Noncommunity water systems in possession of a current
18exemption pursuant to former Section 116282 on January 1, 2012,
19one hundred two dollars ($102) per water system.

20(c) For purposes of determining the fees provided for in
21subdivision (a), the department shall maintain a record of its actual
22costs for pursuing the activities specified in subdivision (a) relative
23to each system required to pay the fees. The fee charged each
24system shall reflect the department’s actual cost, or in the case of
25a local primacy agency the local primacy agency’s actual cost, of
26conducting the specified activities.

27(d) The department shall submit an invoice for cost
28reimbursement for the activities specified in subdivision (a) to the
29public water systems no more than twice a year.

30(1) The department shall submit one estimated cost invoice to
31public water systems serving 1,000 or more service connections
32and any public water system that treats water on behalf of one or
33more public water systems for the purpose of rendering it safe for
34human consumption. This invoice shall include the actual hours
35expended during the first six months of the fiscal year. The hourly
36cost rate used to determine the amount of the estimated cost invoice
37shall be the rate for the previous fiscal year.

38(2) The department shall submit a final invoice to the public
39water system before October 1 following the fiscal year that the
40costs were incurred. The invoice shall indicate the total hours
P218  1expended during the fiscal year, the reasons for the expenditure,
2the hourly cost rate of the department for the fiscal year, the
3estimated cost invoice, and payments received. The amount of the
4final invoice shall be determined using the total hours expended
5during the fiscal year and the actual hourly cost rate of the
6department for the fiscal year. The payment of the estimated
7invoice, exclusive of late penalty, if any, shall be credited toward
8the final invoice amount.

9(3) Payment of the invoice issued pursuant to paragraphs (1)
10and (2) shall be made within 90 days of the date of the invoice.
11Failure to pay the amount of the invoice within 90 days shall result
12in a 10-percent late penalty that shall be paid in addition to the
13invoiced amount.

14(e) Any public water system under the jurisdiction of a local
15primacy agency shall pay the fees specified in this section to the
16local primacy agency in lieu of the department. This section shall
17not preclude a local health officer from imposing additional fees
18pursuant to Section 101325.

19(f) The department may increase the fees established in
20subdivision (b) as follows:

21(1) By February 1 of the fiscal year prior to the fiscal year for
22which fees are proposed to be increased, the department shall
23publish a list of fees for the following fiscal year and a report
24showing the calculation of the amount of the fees.

25(2) The department shall make the report and the list of fees
26available to the public by submitting them to the Legislature and
27posting them on the department’s Internet Web site.

28(3) The department shall establish the amount of fee increases
29subject to the approval and appropriation by the Legislature.

30

SEC. 125.  

Section 120365 of the Health and Safety Code is
31amended to read:

32

120365.  

(a) Immunization of a person shall not be required
33for admission to a school or other institution listed in Section
34120335 if the parent or guardian or adult who has assumed
35responsibility for his or her care and custody in the case of a minor,
36or the person seeking admission if an emancipated minor, files
37with the governing authority a letter or affidavit that documents
38which immunizations required by Section 120355 have been given
39and which immunizations have not been given on the basis that
40they are contrary to his or her beliefs.

P219  1(b) On and after January 1, 2014, a form prescribed by the State
2Department of Public Health shall accompany the letter or affidavit
3filed pursuant to subdivision (a). The form shall include both of
4the following:

5(1) A signed attestation from the health care practitioner that
6indicates that the health care practitioner provided the parent or
7guardian of the person who is subject to the immunization
8requirements of this chapter, the adult who has assumed
9responsibility for the care and custody of the person, or the person
10if an emancipated minor, with information regarding the benefits
11and risks of the immunization and the health risks of the
12communicable diseases listed in Section 120335 to the person and
13to the community. This attestation shall be signed not more than
14six months before the date when the person first becomes subject
15to the immunization requirement for which exemption is being
16sought.

17(2) A written statement signed by the parent or guardian of the
18person who is subject to the immunization requirements of this
19chapter, the adult who has assumed responsibility for the care and
20 custody of the person, or the person if an emancipated minor, that
21indicates that the signer has received the information provided by
22the health care practitioner pursuant to paragraph (1). This
23statement shall be signed not more than six months before the date
24when the person first becomes subject to the immunization
25requirements as a condition of admittance to a school or institution
26pursuant to Section 120335.

27(c) The following shall be accepted in lieu of the original form:

28(1) A photocopy of the signed form.

29(2) A letter signed by a health care practitioner that includes all
30information and attestations included on the form.

31(d) Issuance and revision of the form shall be exempt from the
32rulemaking provisions of the Administrative Procedure Act
33 (Chapter 3.5 (commencing with Section 11340) of Part 1 of
34Division 3 of Title 2 of the Government Code).

35(e) When there is good cause to believe that the person has been
36exposed to one of the communicable diseases listed in subdivision
37(a) of Section 120325, that person may be temporarily excluded
38from the school or institution until the local health officer is
39satisfied that the person is no longer at risk of developing the
40disease.

P220  1(f) For purposes of this section, “health care practitioner” means
2any of the following:

3(1) A physician and surgeon, licensed pursuant to Section 2050
4of the Business and Professions Code.

5(2) A nurse practitioner who is authorized to furnish drugs
6pursuant to Section 2836.1 of the Business and Professions Code.

7(3) A physician assistant who is authorized to administer or
8provide medication pursuant to Section 3502.1 of the Business
9and Professions Code.

10(4) An osteopathic physician and surgeon, as defined in the
11Osteopathic Initiative Act.

12(5) A naturopathic doctor who is authorized to furnish or order
13drugs under a physician and surgeon’s supervision pursuant to
14Section 3640.5 of the Business and Professions Code.

15(6) A credentialed school nurse, as described in Section 49426
16of the Education Code.

17

SEC. 126.  

Section 123327 of the Health and Safety Code is
18amended to read:

19

123327.  

(a) The department shall provide written notice to a
20retail food vendor if the department determines that the vendor
21has committed an initial violation for which a pattern of the
22violation must be established to impose a sanction. Notice shall
23be provided no later than 30 days after the department determines
24the first investigation that identified the violation is complete.

25(b) The written notice shall be delivered to the vendor 30 days
26before the department conducts a second investigation for purposes
27of establishing a pattern of the violation to the vendor’s most recent
28business ownership address on file with the department or to the
29vendor location upon identification of a violation during vendor
30monitoring, as defined by Section 40743 of Title 22 of the
31 California Code of Regulations.

32(c) The written notice shall include a description of the initial
33violation and may include information to assist the vendor to take
34corrective action, including, but not limited to, a 60-day window
35that includes the date of the violation.

36(d) For purposes of this section, “violation” means a violation
37set forth in Section 246.2 of Title 7 of the Code of Federal
38Regulations.

39(e) It is the intent of the Legislature in enacting this section to
40clarify existing law.

P221  1

SEC. 127.  

Section 123940 of the Health and Safety Code is
2amended to read:

3

123940.  

(a) (1) Annually, the board of supervisors shall
4appropriate a sum of money for services for handicapped children
5of the county, including diagnosis, treatment, and therapy services
6for physically handicapped children in public schools, equal to 25
7percent of the actual expenditures for the county program under
8this article for the 1990-91 fiscal year, except as specified in
9paragraph (2).

10(2) If the state certifies that a smaller amount is needed in order
11for the county to pay 25 percent of costs of the county’s program
12from this source. The smaller amount certified by the state shall
13be the amount that the county shall appropriate.

14(b) In addition to the amount required by subdivision (a), the
15county shall allocate an amount equal to the amount determined
16pursuant to subdivision (a) for purposes of this article from
17revenues allocated to the county pursuant to Chapter 6
18(commencing with Section 17600) of Division 9 of the Welfare
19and Institutions Code.

20(c) (1) The state shall match county expenditures for this article
21from funding provided pursuant to subdivisions (a) and (b).

22(2) County expenditures shall be waived for payment of services
23for children who are eligible pursuant to paragraph (2) of
24subdivision (a) of Section 123870.

25(d) The county may appropriate and expend moneys in addition
26to those set forth in subdivisions (a) and (b) and the state shall
27match the expenditures, on a dollar-for-dollar basis, to the extent
28that state funds are available for this article.

29(e) County appropriations under subdivisions (a) and (b) shall
30include county financial participation in the nonfederal share of
31expenditures for services for children who are enrolled in the
32Medi-Cal program pursuant to Section 14005.26 of the Welfare
33and Institutions Code, and who are eligible for services under this
34article pursuant to paragraph (1) of subdivision (a) of Section
35123870, to the extent that federal financial participation is available
36at the enhanced federal reimbursement rate under Title XXI of the
37federal Social Security Act (42 U.S.C. Sec. 1397aa et seq.) and
38funds are appropriated for the California Children’s Services
39Program in the State Budget.

P222  1(f) Nothing in this section shall require the county to expend
2more than the amount set forth in subdivision (a) plus the amount
3set forth in subdivision (b) nor shall it require the state to expend
4more than the amount of the match set forth in subdivision (c).

5(g) Notwithstanding Chapter 3.5 (commencing with Section
611340) of Part 1 of Division 3 of Title 2 of the Government Code,
7the department, without taking further regulatory action, shall
8implement this section by means of California Children’s Services
9numbered letters.

10

SEC. 128.  

Section 123955 of the Health and Safety Code is
11amended to read:

12

123955.  

(a) The state and the counties shall share in the cost
13of administration of the California Children’s Services Program
14at the local level.

15(b) (1) The director shall adopt regulations establishing
16minimum standards for the administration, staffing, and local
17implementation of this article subject to reimbursement by the
18state.

19(2) The standards shall allow necessary flexibility in the
20administration of county programs, taking into account the
21variability of county needs and resources, and shall be developed
22and revised jointly with state and county representatives.

23(c) The director shall establish minimum standards for
24administration, staffing, and local operation of the program subject
25to reimbursement by the state.

26(d) Until July 1, 1992, reimbursable administrative costs, to be
27paid by the state to counties, shall not exceed 4.1 percent of the
28gross total expenditures for diagnosis, treatment, and therapy by
29counties as specified in Section 123940.

30(e) Beginning July 1, 1992, this subdivision shall apply with
31respect to all of the following:

32(1) Counties shall be reimbursed by the state for 50 percent of
33the amount required to meet state administrative standards for that
34portion of the county caseload under this article that is ineligible
35for Medi-Cal to the extent funds are available in the State Budget
36for the California Children’s Services Program.

37(2) Counties shall be reimbursed by the state for 50 percent of
38the nonfederal share of the amount required to meet state
39administrative standards for that portion of the county caseload
40under this article that is enrolled in the Medi-Cal program pursuant
P223  1to Section 14005.26 of the Welfare and Institutions Code and who
2are eligible for services under this article pursuant to subdivision
3(a) of Section 123870, to the extent that federal financial
4participation is available at the enhanced federal reimbursement
5rate under Title XXI of the federal Social Security Act (42 U.S.C.
6Sec. 1397aa et seq.) and funds are appropriated for the California
7Children’s Services Program in the State Budget.

8(3) On or before September 15 of each year, each county
9program implementing this article shall submit an application for
10the subsequent fiscal year that provides information as required
11by the state to determine if the county administrative staff and
12budget meet state standards.

13(4) The state shall determine the maximum amount of state
14funds available for each county from state funds appropriated for
15CCS county administration. If the amount appropriated for any
16fiscal year in the Budget Act for county administration under this
17article differs from the amounts approved by the department, each
18county shall submit a revised application in a form and at the time
19specified by the department.

20(f) The department and counties shall maximize the use of
21federal funds for administration of the programs implemented
22pursuant to this article, including using state and county funds to
23match funds claimable under Title XIX or Title XXI of the federal
24Social Security Act (42 U.S.C. Sec. 1396 et seq.; 42 U.S.C. Sec.
251397aa et seq.).

26

SEC. 129.  

Section 125286.20 of the Health and Safety Code
27 is amended to read:

28

125286.20.  

Unless the context otherwise requires, the following
29definitions shall apply for purposes of this article:

30(a) “Assay” means the amount of a particular constituent of a
31mixture or of the biological or pharmacological potency of a drug.

32(b) “Ancillary infusion equipment and supplies” means the
33equipment and supplies required to infuse a blood clotting product
34into a human vein, including, but not limited to, syringes, needles,
35sterile gauze, field pads, gloves, alcohol swabs, numbing creams,
36tourniquets, medical tape, sharps or equivalent biohazard waste
37containers, and cold compression packs.

38(c) “Bleeding disorder” means a medical condition characterized
39 by a deficiency or absence of one or more essential blood clotting
40proteins in the human blood, often called “factors,” including all
P224  1forms of hemophilia and other bleeding disorders that, without
2treatment, result in uncontrollable bleeding or abnormal blood
3clotting.

4(d) “Blood clotting product” means an intravenously
5administered medicine manufactured from human plasma or
6recombinant biotechnology techniques, approved for distribution
7by the federal Food and Drug Administration, that is used for the
8treatment and prevention of symptoms associated with bleeding
9disorders. Blood clotting products include, but are not limited to,
10factor VII, factor VIIa, factor VIII, and factor IX products, von
11Willebrand factor products, bypass products for patients with
12inhibitors, and activated prothrombin complex concentrates.

13(e) “Emergency” means care as defined in Section 1317.1.

14(f) “Hemophilia” means a human bleeding disorder caused by
15a hereditary deficiency of the factor I, II, V, VIII, IX, XI, XII, or
16XIII blood clotting protein in human blood.

17(g) “Hemophilia treatment center” means a facility for the
18treatment of bleeding disorders, including, but not limited to,
19hemophilia, that receives funding specifically for the treatment of
20patients with bleeding disorders from federal government sources,
21including, but not limited to, the federal Centers for Disease
22Control and Prevention and the federal Health Resources and
23Services Administration (HRSA) of the United States Department
24of Health and Human Services.

25(h) “Home use” means infusion or other use of a blood clotting
26product in a place other than a state-recognized hemophilia
27treatment center or other clinical setting. Places where home use
28occurs include, without limitation, a home or other nonclinical
29setting.

30(i) “Patient” means a person needing a blood clotting product
31for home use.

32(j) (1) “Provider of blood clotting products for home use” means
33all the following pharmacies, except as described in Section
34125286.35, that dispense blood clotting factors for home use:

35(A) Hospital pharmacies.

36(B) Health system pharmacies.

37(C) Pharmacies affiliated with hemophilia treatment centers.

38(D) Specialty home care pharmacies.

39(E) Retail pharmacies.

P225  1(2) The providers described in this subdivision shall include a
2health care service plan and all its affiliated providers if the health
3care service plan exclusively contracts with a single medical group
4in a specified geographic area to provide professional services to
5its enrollees.

6

SEC. 130.  

Section 128570 of the Health and Safety Code is
7amended to read:

8

128570.  

(a) Persons participating in the program shall be
9persons who agree in writing prior to completing an accredited
10medical or osteopathic school based in the United States to serve
11in an eligible practice setting, pursuant to subdivision (g) of Section
12128565, for at least three years. The program shall be used only
13for the purpose of promoting the education of medical doctors and
14doctors of osteopathy and related administrative costs.

15(b) A program participant shall commit to three years of
16full-time professional practice once the participant has achieved
17full licensure pursuant to Article 4 (commencing with Section
182080) of Chapter 5 of Division 2 of, or Section 2099.5 of, the
19Business and Professions Code and after completing an accredited
20residency program. The obligated professional service shall be in
21direct patient care in an eligible practice setting pursuant to
22subdivision (g) of Section 128565.

23(1) Leaves of absence either during medical school or service
24obligation shall be permitted for serious illness, pregnancy, or
25other natural causes. The selection committee shall develop the
26process for determining the maximum permissible length of an
27absence, the maximum permissible leaves of absences, and the
28process for reinstatement. Awarding of scholarship funds shall be
29deferred until the participant is back to full-time status.

30(2) Full-time status shall be defined by the selection committee.
31The selection committee may establish exemptions from this
32requirement on a case-by-case basis.

33(c) The maximum allowable amount per total scholarship shall
34be one hundred five thousand dollars ($105,000). These moneys
35shall be distributed over the course of a standard medical school
36curriculum. The distribution of funds shall increase over the course
37of medical school, increasing to ensure that at least 45 percent of
38the total scholarship award is distributed upon matriculation in the
39final year of school.

P226  1(d) In the event the program participant does not complete
2medical school and the minimum three years of professional service
3pursuant to the contractual agreement between the foundation and
4the participant, the office shall recover the funds awarded plus the
5maximum allowable interest for failure to begin or complete the
6service obligation.

7

SEC. 131.  

Section 129725 of the Health and Safety Code is
8amended to read:

9

129725.  

(a)  (1)  “Hospital building” includes any building
10not specified in subdivision (b) that is used, or designed to be used,
11for a health facility of a type required to be licensed pursuant to
12Chapter 2 (commencing with Section 1250) of Division 2.

13(2)  Except as provided in paragraph (7) of subdivision (b),
14hospital building includes a correctional treatment center, as
15defined in subdivision (j) of Section 1250, the construction of
16which was completed on or after March 7, 1973.

17(b)  “Hospital building” does not include any of the following:

18(1)  Any building where outpatient clinical services of a health
19facility licensed pursuant to Section 1250 are provided that is
20separated from a building in which hospital services are provided.
21If any one or more outpatient clinical services in the building
22provides services to inpatients, the building shall not be included
23as a “hospital building” if those services provided to inpatients
24represent no more than 25 percent of the total outpatient services
25provided at the building. Hospitals shall maintain on an ongoing
26basis, data on the patients receiving services in these buildings,
27including the number of patients seen, categorized by their inpatient
28or outpatient status. Hospitals shall submit this data annually to
29the State Department of Public Health.

30(2)  A building used, or designed to be used, for a skilled nursing
31facility or intermediate care facility if the building is of
32single-story, wood-framebegin insert,end insert or light steel frame construction.

33(3)  A building of single-story, wood-framebegin insert,end insert or light steel frame
34construction where only skilled nursing or intermediate care
35services are provided if the building is separated from a building
36housing other patients of the health facility receiving higher levels
37of care.

38(4)  A freestanding structure of a chemical dependency recovery
39hospital exempted under subdivision (c) of Section 1275.2.

P227  1(5)  A building licensed to be used as an intermediate care
2facility/developmentally disabled habilitative with six beds or less
3and an intermediate care facility/developmentally disabled
4habilitative of 7 to 15 beds that is a single-story, wood-framebegin insert,end insert or
5light steel frame building.

6(6)  A building subject to licensure as a correctional treatment
7center, as defined in subdivision (j) of Section 1250, the
8construction of which was completed before March 7, 1973.

9(7)  (A)  A building that meets the definition of a correctional
10treatment center, pursuant to subdivision (j) of Section 1250, for
11which the final design documents were completed or the
12construction of which was initiated before January 1, 1994,
13operated by or to be operated by the Department of Corrections
14and Rehabilitation, or by a law enforcement agency of a city,
15county, or a city and county.

16(B)  In the case of reconstruction, alteration, or addition to, the
17facilities identified in this paragraph, and paragraph (6) or any
18other building subject to licensure as a general acute care hospital,
19acute psychiatric hospital, correctional treatment center, or nursing
20facility, as defined in subdivisions (a), (b), (j), and (k) of Section
211250, operated or to be operated by the Department of Corrections
22and Rehabilitation, or by a law enforcement agency of a city,
23county, or city and county, only the reconstruction, alteration, or
24addition, itself, and not the building as a whole, nor any other
25aspect thereof, shall be required to comply with this chapter or the
26regulations adopted pursuant thereto.

27(8) A freestanding building used, or designed to be used, as a
28congregate living health facility, as defined in subdivision (i) of
29Section 1250.

30(9) A freestanding building used, or designed to be used, as a
31hospice facility, as defined in subdivision (n) of Section 1250.

32

SEC. 132.  

Section 136000 of the Health and Safety Code is
33amended to read:

34

136000.  

(a) (1) Effective July 1, 2012, there is hereby
35transferred from the Department of Managed Health Care the
36Office of Patient Advocate to be established within the California
37Health and Human Services Agency, to provide assistance to, and
38advocate on behalf of, individuals served by health care service
39plans regulated by the Department of Managed Health Care,
40insureds covered by health insurers regulated by the Department
P228  1of Insurance, and individuals who receive or are eligible for other
2health care coverage in California, including coverage available
3through the Medi-Cal program, the California Health Benefit
4Exchange, the Healthy Families Program, or any other county or
5state health care program. The goal of the office shall be to help
6those individuals secure the health care services to which they are
7 entitled or for which they are eligible under the law.
8Notwithstanding any provision of this division, each regulator and
9health coverage program shall retain its respective authority,
10including its authority to resolve complaints, grievances, and
11appeals.

12(2) The office shall be headed by a patient advocate appointed
13by the Governor. The patient advocate shall serve at the pleasure
14of the Governor.

15(3) The provisions of this division affecting insureds covered
16by health insurers regulated by the Department of Insurance and
17individuals who receive or are eligible for coverage available
18through the Medi-Cal program, the California Health Benefit
19Exchange, the Healthy Families Program, or any other county or
20state health care program shall commence on January 1, 2013,
21except that for the period July 1, 2012, to January 1, 2013, the
22office shall continue with any duties, responsibilities, or activities
23of the office authorized as of July 1, 2011, which shall continue
24to be authorized.

25(b) (1) The duties of the office shall include, but not be limited
26to, all of the following:

27(A) Developing, in consultation with the Managed Risk Medical
28Insurance Board, the State Department of Health Care Services,
29the California Health Benefit Exchange, the Department of
30Managed Health Care, and the Department of Insurance,
31educational and informational guides for consumers describing
32their rights and responsibilities, and informing them on effective
33ways to exercise their rights to secure health care coverage. The
34guides shall be easy to read and understand and shall be made
35available in English and other threshold languages, using an
36appropriate literacy level, and in a culturally competent manner.
37The informational guides shall be made available to the public by
38the office, including being made accessible on the office’s Internet
39Web site and through public outreach and educational programs.

P229  1(B) Compiling an annual publication, to be made available on
2the office’s Internet Web site, of a quality of care report card,
3including, but not limited to, health care service plans.

4(C) Rendering assistance to consumers regarding procedures,
5rights, and responsibilities related to the filing of complaints,
6grievances, and appeals, including appeals of coverage denials and
7information about any external appeal process.

8(D) Making referrals to the appropriate state agency regarding
9studies, investigations, audits, or enforcement that may be
10appropriate to protect the interests of consumers.

11(E) Coordinating and working with other government and
12nongovernment patient assistance programs and health care
13ombudsperson programs.

14(2) The office shall employ necessary staff. The office may
15employ or contract with experts when necessary to carry out the
16functions of the office. The patient advocate shall make an annual
17budget request for the office which shall be identified in the annual
18Budget Act.

19(3) Until January 1, 2013, the office shall have access to records
20of the Department of Managed Health Care, including, but not
21limited to, information related to health care service plan or health
22insurer audits, surveys, and enrollee or insured grievances.

23(4) The patient advocate shall annually issue a public report on
24the activities of the office, and shall appear before the appropriate
25policy and fiscal committees of the Senate and Assembly, if
26requested, to report and make recommendations on the activities
27of the office.

28(5) The office shall adopt standards for the organizations with
29which it contracts pursuant to this section to ensure compliance
30with the privacy and confidentiality laws of this state, including,
31but not limited to, the Information Practices Act of 1977 (Chapter
321(commencing with Section 1798) of Division 3 of the Civil Code).
33The office shall conduct privacy trainings as necessary, and
34regularly verify that the organizations have measures in place to
35ensure compliance with this provision.

36(c) In enacting this act, the Legislature recognizes that, because
37of the enactment of federal health care reform on March 23, 2010,
38and the implementation of various provisions by January 1, 2014,
39it is appropriate to transfer the Office of Patient Advocate and to
40 confer new responsibilities on the Office of Patient Advocate,
P230  1including assisting consumers in obtaining health care coverage
2and obtaining health care through health coverage that is regulated
3by multiple regulators, both state and federal. The new
4responsibilities include assisting consumers in navigating both
5public and private health care coverage and assisting consumers
6in determining which regulator regulates the health care coverage
7of a particular consumer. In order to assist in implementing federal
8health care reform in California, commencing January 1, 2013,
9the office, in addition to the duties set forth in subdivision (b),
10shall also do all of the following:

11(1) Receive and respond to all inquiries, complaints, and requests
12for assistance from individuals concerning health care coverage
13available in California.

14(2) Provide, and assist in the provision of, outreach and
15 education about health care coverage options as set forth in
16subparagraph (A) of paragraph (1) of subdivision (b), including,
17but not limited to:

18(A) Information regarding applying for coverage; the cost of
19coverage; and renewal in, and transitions between, health coverage
20programs.

21(B) Information and assistance regarding public programs, such
22as Medi-Cal, the Healthy Families Program, federal veterans health
23benefits, and Medicare; and private coverage, including
24employer-sponsored coverage, Exchange coverage; and other
25sources of care if the consumer is not eligible for coverage, such
26as county services, community clinics, discounted hospital care,
27or charity care.

28(3) Coordinate with other state and federal agencies engaged in
29outreach and education regarding the implementation of federal
30health care reform.

31(4) Render assistance to, and advocate on behalf of, consumers
32with problems related to health care services, including care and
33service problems and claims or payment problems.

34(5) Refer consumers to the appropriate regulator of their health
35coverage programs for filing complaints, grievances, or claims, or
36for payment problems.

37(d) (1) Commencing January 1, 2013, the office shall track and
38analyze data on problems and complaints by, and questions from,
39consumers about health care coverage for the purpose of providing
40public information about problems faced and information needed
P231  1by consumers in obtaining coverage and care. The data collected
2shall include demographic data, source of coverage, regulator, and
3resolution of complaints, including timeliness of resolution.

4(2) The Department of Managed Health Care, the State
5Department of Health Care Services, the Department of Insurance,
6the Managed Risk Medical Insurance Board, the California Health
7Benefit Exchange, and other public coverage programs shall
8provide to the office data in the aggregate concerning consumer
9complaints and grievances. For the purpose of publicly reporting
10information about the problems faced by consumers in obtaining
11care and coverage, the office shall analyze data on consumer
12complaints and grievances resolved by these agencies, including
13demographic data, source of coverage, insurer or plan, resolution
14of complaints and other information intended to improve health
15care and coverage for consumers. The office shall develop and
16provide comprehensive and timely data and analysis based on the
17information provided by other agencies.

18(3) The office shall collect and report data to the United States
19Secretary of Health and Human Services on complaints and
20consumer assistance as required to comply with requirements of
21the federal Patient Protection and Affordable Care Act (Public
22Law 111-148).

23(e) Commencing January 1, 2013, in order to assist consumers
24in understanding the impact of federal health care reform as well
25as navigating and resolving questions and problems with health
26care coverage and programs, the office shall ensure that either the
27office or a state agency contracting with the office shall do the
28following:

29(1) Operate a toll-free telephone hotline number that can route
30callers to the proper regulating body or public program for their
31question, their health plan, or the consumer assistance program in
32their area.

33(2) Operate an Internet Web site, other social media, and
34 up-to-date communication systems to give information regarding
35the consumer assistance programs.

36(f) (1) The office may contract with community-based consumer
37assistance organizations to assist in any or all of the duties of
38subdivision (c) in accordance with Section 19130 of the
39Government Code or provide grants to community-based consumer
40assistance organizations for portions of these purposes.

P232  1(2) Commencing January 1, 2013, any local community-based
2nonprofit consumer assistance program with which the office
3contracts shall include in its mission the assistance of, and duty
4to, health care consumers. Contracting consumer assistance
5programs shall have experience in the following areas:

6(A) Assisting consumers in navigating the local health care
7system.

8(B) Advising consumers regarding their health care coverage
9options and helping consumers enroll in and retain health care
10coverage.

11(C) Assisting consumers with problems in accessing health care
12services.

13(D) Serving consumers with special needs, including, but not
14limited to, consumers with limited-English language proficiency,
15consumers requiring culturally competent services, low-income
16consumers, consumers with disabilities, consumers with low
17literacy rates, and consumers with multiple health conditions,
18including behavioral health.

19(E) Collecting and reporting data, including demographic data,
20source of coverage, regulator, and resolution of complaints,
21including timeliness of resolution.

22(3) Commencing January 1, 2013, the office shall develop
23protocols, procedures, and training modules for organizations with
24which it contracts.

25(4) Commencing January 1, 2013, the office shall adopt
26standards for organizations with which it contracts regarding
27confidentiality and conduct.

28(5) Commencing January 1, 2013, the office may contract with
29consumer assistance programs to develop a series of appropriate
30literacy level and culturally and linguistically appropriate
31educational materials in all threshold languages for consumers
32regarding health care coverage options and how to resolve
33problems.

34(g) Commencing January 1, 2013, the office shall develop
35protocols and procedures for assisting in the resolution of consumer
36complaints, including both of the following:

37(1) A procedure for referral of complaints and grievances to the
38appropriate regulator or health coverage program for resolution
39by the relevant regulator or public program.

P233  1(2) A protocol or procedure for reporting to the appropriate
2regulator and health coverage program regarding complaints and
3grievances relevant to that agency that the office received and was
4able to resolve without further action or referral.

5(h) For purposes of this section, the following definitions apply:

6(1) “Consumer” or “individual” includes the individual or his
7or her parent, guardian, conservator, or authorized representative.

8(2) “Exchange” means the California Health Benefit Exchange
9established pursuant to Title 22 (commencing with Section 100500)
10of the Government Code.

11(3) “Health care” includes behavioral health, including both
12mental health and substance abuse treatment.

13(4) “Health care service plan” has the same meaning as that set
14forth in subdivision (f) of Section 1345. Health care service plan
15includes “specialized health care service plans,” including
16behavioral health plans.

17(5) “Health coverage program” includes the Medi-Cal program,
18Healthy Families Program, tax subsidies and premium credits
19under the Exchange, the Basic Health Program, if enacted, county
20health coverage programs, and the Access for Infants and Mothers
21Program.

22(6) “Health insurance” has the same meaning as set forth in
23Section 106 of the Insurance Code.

24(7) “Health insurer” means an insurer that issues policies of
25health insurance.

26(8) “Office” means the Office of Patient Advocate.

27(9) “Threshold languages” shall have the same meaning as for
28Medi-Cal managed care.

29

SEC. 132.5.  

Section 395 of the Insurance Code is amended to
30read:

31

395.  

After a covered loss, an insurer shall provide, free of
32charge, a complete copy of the insured’s current insurance policy
33or certificate within 30 calendar days of receipt of a request from
34the insured. The time period for providing the insurance policy or
35certificate may be extended by the commissioner. An insured who
36does not experience a covered loss shall, upon request, be entitled
37to one free copy of his or her current insurance policy or certificate
38annually. The insurance policy or certificate provided to the insured
39shall include, where applicable, the policy declarations page. This
40section shall not apply to commercial policies issued pursuant to
P234  1Sections 675.5 and 676.6, and policies of workers’ compensation
2insurance, as defined in Section 109.

3

SEC. 133.  

Section 676.75 of the Insurance Code is amended
4to read:

5

676.75.  

(a) No admitted insurer, licensed to issue and issuing
6homeowner’s or tenant’s policies, as described in Section 122,
7shall (1) fail or refuse to accept an application for that insurance
8or to issue that insurance to an applicant or (2) cancel that
9insurance, solely on the basis that the applicant or policyholder is
10engaged in foster home activities in a certified family home, as
11defined in Section 1506 of the Health and Safety Code.

12(b) Coverage under policies described in subdivision (a) with
13respect to a foster child shall be the same as that provided for a
14natural child. However, unless specifically provided in the policy,
15there shall be no coverage expressly provided in the policy for any
16bodily injury arising out of the operation or use of any motor
17vehicle, aircraft, or watercraft owned or operated by, or rented or
18loaned to, any foster parent.

19(c) It is against public policy for a policy of homeowner’s or
20tenant’s insurance subject to this section to provide liability
21coverage for any of the following losses:

22(1) An insurer shall not be liable, under a policy of insurance
23subject to this section, to any governmental agency for damage
24arising from occurrences peculiar to the foster care relationship
25and the provision of foster care services.

26(2) Alienation of affection of a foster child.

27(3) Any loss arising out of licentious, immoral, or sexual
28behavior on the part of a foster parent intended to lead to, or
29culminating in, any sexual act.

30(4) Any loss arising out of a dishonest, fraudulent, criminal, or
31intentional act.

32(d) There shall be no penalty for violations of this section prior
33to January 1, 2013.

34(e) Insurers may provide a special endorsement to a
35homeowner’s or tenant’s policy covering claims related to foster
36care that are not excluded by subdivision (c).

37(f) Insurers may provide by a separate policy for some or all of
38the claims related to foster care that are excluded by subdivision
39(c).

P235  1

SEC. 134.  

Section 922.41 of the Insurance Code is amended
2to read:

3

922.41.  

(a) Credit shall be allowed a domestic insurer when
4the reinsurance is ceded to an assuming insurer that has been
5certified by the commissioner as a reinsurer in this state and secures
6its obligations in accordance with the requirements of this section.
7Credit shall be allowed at all times for which statutory financial
8statement credit for reinsurance is claimed under this section. The
9credit allowed shall be based upon the security held by or on behalf
10of the ceding insurer in accordance with a rating assigned to the
11certified reinsurer by the commissioner. The security shall be in
12a form consistent with this section, any regulations promulgated
13by the commissioner, and Section 922.5.

14(b) In order to be eligible for certification, the assuming insurer
15shall meet the following requirements:

16(1) The assuming insurer shall be domiciled and licensed to
17transact insurance or reinsurance in a qualified jurisdiction, as
18determined by the commissioner pursuant to subdivisions (f) and
19(g).

20(2) The assuming insurer shall maintain minimum capital and
21surplus, or its equivalent, in an amount to be determined by the
22commissioner, but no less than two hundred fifty million dollars
23($250,000,000) calculated in accordance with paragraph (4) of
24subdivision (f) of this section or Section 922.5. This requirement
25may also be satisfied by an association including incorporated and
26individual unincorporated underwriters having minimum capital
27and surplus equivalents (net of liabilities) of at least two hundred
28fifty million dollars ($250,000,000) and a central fund containing
29a balance of at least two hundred fifty million dollars
30($250,000,000).

31(3) The assuming insurer shall maintain financial strength ratings
32from two or more rating agencies deemed acceptable by the
33commissioner. These ratings shall be based on interactive
34communication between the rating agency and the assuming insurer
35and shall not be based solely on publicly available information.
36These financial strength ratings will be one factor used by the
37commissioner in determining the rating that is assigned to the
38assuming insurer. Acceptable rating agencies include the following:

39(A) Standard & Poor’s.

40(B) Moody’s Investors Service.

P236  1(C) Fitch Ratings.

2(D) A.M. Best Company.

3(E) Any other nationally recognized statistical rating
4organization.

5(4) The assuming insurer shall agree to submit to the jurisdiction
6of this state, appoint the commissioner or a designated attorney in
7this state as its agent for service of process in this state, and agree
8to provide security for 100 percent of the assuming insurer’s
9liabilities attributable to reinsurance ceded by United States ceding
10insurers if it resists enforcement of a final United States judgment.

11(5) The assuming insurer shall agree to meet applicable
12information filing requirements as determined by the commissioner,
13both with respect to an initial application for certification and on
14an ongoing basis.

15(6) The certified reinsurer shall comply with any other
16requirements deemed relevant by the commissioner.

17(c) (1) If an applicant for certification has been certified as a
18reinsurer in a National Association of Insurance Commissioners
19(NAIC) accredited jurisdiction, the commissioner may defer to
20that jurisdiction’s certification, and has the discretion to defer to
21the rating assigned by that jurisdiction if the assuming insurer
22submits a properly executed Form CR-1 (as published on the
23department’s Internet Web site), and such additional information
24as the commissioner requires. The commissioner, however, may
25perform an independent review and determination of any applicant.
26The assuming insurer shall then be considered to be a certified
27reinsurer in this state.

28(2) If the commissioner defers to a certification determination
29by another state, any change in the certified reinsurer’s status or
30rating in the other jurisdiction shall apply automatically in this
31state as of the date it takes effect in the other jurisdiction unless
32the commissioner otherwise determines. The certified reinsurer
33shall notify the commissioner of any change in its status or rating
34within 10 days after receiving notice of the change.

35(3) The commissioner may withdraw recognition of the other
36jurisdiction’s rating at any time and assign a new rating in
37accordance with subdivision (h).

38(4) The commissioner may withdraw recognition of the other
39jurisdiction’s certification at any time, with written notice to the
40certified reinsurer. Unless the commissioner suspends or revokes
P237  1the certified reinsurer’s certification in accordance with this section
2and Section 922.42, the certified reinsurer’s certification shall
3remain in good standing in this state for a period of three months,
4which shall be extended if additional time is necessary to consider
5the assuming insurer’s application for certification in this state.

6(d) An association, including incorporated and individual
7unincorporated underwriters, may be a certified reinsurer. In order
8to be eligible for certification, in addition to satisfying requirements
9of subdivision (b), the reinsurer shall meet all of the following
10requirements:

11(1) The association shall satisfy its minimum capital and surplus
12requirements through the capital and surplus equivalents (net of
13liabilities) of the association and its members, which shall include
14a joint central fund that may be applied to any unsatisfied
15obligation of the association or any of its members, in an amount
16determined by the commissioner to provide adequate protection.

17(2) The incorporated members of the association shall not be
18engaged in any business other than underwriting as a member of
19the association and shall be subject to the same level of regulation
20and solvency control by the association’s domiciliary regulator as
21are the unincorporated members.

22(3) Within 90 days after its financial statements are due to be
23filed with the association’s domiciliary regulator, the association
24shall provide to the commissioner an annual certification by the
25association’s domiciliary regulator of the solvency of each
26underwriter member or, if a certification is unavailable, financial
27statements, prepared by independent public accountants, of each
28underwriter member of the association.

29(e) (1) The commissioner shall post notice on the department’s
30Internet Web site promptly upon receipt of any application for
31certification, including instructions on how members of the public
32may respond to the application. The commissioner shall not take
33final action on the application until at least 90 days after posting
34the notice required by this subdivision.

35(2) The commissioner shall issue written notice to an assuming
36insurer that has made application and has been approved as a
37certified reinsurer. Included in that notice shall be the rating
38assigned the certified reinsurer in accordance with subdivision (h).
39The commissioner shall publish a list of all certified reinsurers and
40their ratings.

P238  1(f) The certified reinsurer shall agree to meet applicable
2information filing requirements as determined by the commissioner,
3both with respect to an initial application for certification and on
4an ongoing basis. All information submitted by certified reinsurers
5that is not otherwise public information subject to disclosure shall
6be exempted from disclosure under Chapter 3.5 (commencing with
7Section 6250) of Division 7 of Title 1 of the Government Code,
8and shall be withheld from public disclosure. The applicable
9information filing requirements are as follows:

10(1) Notification within 10 days of any regulatory actions taken
11against the certified reinsurer, any change in the provisions of its
12domiciliary license or any change in rating by an approved rating
13agency, including a statement describing those changes and the
14reasons for those changes.

15(2) Annually, Form CR-F or CR-S, as applicable pursuant to
16the instructions published on the department’s Internet Web site.

17(3) Annually, the report of the independent auditor on the
18financial statements of the insurance enterprise, on the basis
19described in paragraph (4).

20(4) Annually, audited financial statements, (audited United
21States Generally Accepted Accounting Principles basis, if available,
22audited International Financial Reporting Standards basis
23statements are allowed, but must include an audited footnote
24reconciling equity and net income to a United States Generally
25Accepted Accounting Principles basis, or, with the written
26permission of the commissioner, audited International Financial
27Reporting Standards statements with reconciliation to United States
28Generally Accepted Accounting Principles certified by an officer
29of the company), regulatory filings, and actuarial opinion (as filed
30with the certified reinsurer’s supervisor). Upon the initial
31certification, audited financial statements for the last three years
32filed with the certified reinsurer’s supervisor.

33(5) At least annually, an updated list of all disputed and overdue
34reinsurance claims regarding reinsurance assumed from United
35States domestic ceding insurers.

36(6) A certification from the certified reinsurer’s domestic
37regulator that the certified reinsurer is in good standing and
38maintains capital in excess of the jurisdiction’s highest regulatory
39action level.

P239  1(7) Any other information that the commissioner may reasonably
2require.

3(g) If the commissioner certifies a non-United States domiciled
4insurer, the commissioner shall create and publish a list of qualified
5jurisdictions, under which an assuming insurer licensed and
6domiciled in that jurisdiction is eligible to be considered for
7certification by the commissioner as a certified reinsurer.

8(1) In order to determine whether the domiciliary jurisdiction
9of a non-United States assuming insurer is eligible to be recognized
10as a qualified jurisdiction, the commissioner shall evaluate the
11appropriateness and effectiveness of the reinsurance supervisory
12system of the jurisdiction, both initially and on an ongoing basis,
13and consider the rights, benefits, and the extent of reciprocal
14recognition afforded by the non-United States jurisdiction to
15reinsurers licensed and domiciled in the United States. The
16commissioner shall determine the appropriate process for
17evaluating the qualifications of those jurisdictions. Prior to its
18listing, a qualified jurisdiction shall agree in writing to share
19information and cooperate with the commissioner with respect to
20all certified reinsurers domiciled within that jurisdiction. A
21jurisdiction may not be recognized as a qualified jurisdiction if the
22commissioner has determined that the jurisdiction does not
23adequately and promptly enforce final United States judgments
24and arbitration awards. Additional factors may be considered in
25the discretion of the commissioner, including, but not limited to,
26the following:

27(A) The framework under which the assuming insurer is
28regulated.

29(B) The structure and authority of the domiciliary regulator with
30regard to solvency regulation requirements and financial
31surveillance.

32(C) The substance of financial and operating standards for
33assuming insurers in the domiciliary jurisdiction.

34(D) The form and substance of financial reports required to be
35filed or made publicly available by reinsurers in the domiciliary
36jurisdiction and the accounting principles used.

37(E) The domiciliary regulator’s willingness to cooperate with
38United States regulators in general and the commissioner in
39particular.

P240  1(F) The history of performance by assuming insurers in the
2domiciliary jurisdiction.

3(G) Any documented evidence of substantial problems with the
4enforcement of final United States judgments in the domiciliary
5jurisdiction.

6(H) Any relevant international standards or guidance with
7respect to mutual recognition of reinsurance supervision adopted
8by the International Association of Insurance Supervisors or a
9successor organization.

10(I) Any other matters deemed relevant by the commissioner.

11(2) The commissioner shall consider the list of qualified
12jurisdictions published through the NAIC committee process in
13determining qualified jurisdictions. The commissioner may include
14on the list published pursuant to this section, any jurisdiction on
15the NAIC list of qualified jurisdictions, or on any equivalent list
16of the United States Treasury.

17(3) If the commissioner approves a jurisdiction as qualified that
18does not appear on either the NAIC list of qualified jurisdictions,
19or the United States Treasury list, the commissioner shall provide
20thoroughly documented justification in accordance with criteria
21to be developed under this section.

22(4) United States jurisdictions that meet the requirements for
23accreditation under the NAIC financial standards and accreditation
24program shall be recognized as qualified jurisdictions.

25(5) If a certified reinsurer’s domiciliary jurisdiction ceases to
26be a qualified jurisdiction, the commissioner has the discretion to
27suspend the reinsurer’s certification indefinitely, in lieu of
28revocation.

29(h) The commissioner shall assign a rating to each certified
30 reinsurer, giving due consideration to the financial strength ratings
31that have been assigned by rating agencies deemed acceptable to
32the commissioner pursuant to this section. The commissioner shall
33publish a list of all certified reinsurers and their ratings.

34(1) Each certified reinsurer shall be rated on a legal entity basis,
35with due consideration being given to the group rating where
36appropriate, except that an association including incorporated and
37individual unincorporated underwriters that has been approved to
38do business as a single certified reinsurer may be evaluated on the
39basis of its group rating. Factors that may be considered as part of
40the evaluation process include, but are not limited to, the following:

P241  1(A) The certified reinsurer’s financial strength rating from an
2acceptable rating agency. The maximum rating that a certified
3reinsurer may be assigned shall correspond to its financial strength
4rating as set forth in clauses (i) to (vi), inclusive. The commissioner
5shall use the lowest financial strength rating received from an
6approved rating agency in establishing the maximum rating of a
7certified reinsurer. A failure to obtain or maintain at least two
8financial strength ratings from acceptable rating agencies shall
9result in loss of eligibility for certification.

10(i) Ratings category “Secure - 1” corresponds to A.M. Best
11Company rating A++; Standard & Poor’s rating AAA; Moody’s
12Investors Service rating Aaa; and Fitch Ratings rating AAA.

13(ii) Ratings category “Secure - 2” corresponds to A.M. Best
14Company rating A+; Standard & Poor’s rating AA+, AA, or AA-;
15Moody’s Investors Service rating Aa1, Aa2, or Aa3; and Fitch
16Ratings rating AA+, AA, or AA-.

17(iii) Ratings category “Secure - 3” corresponds to A.M. Best
18Company rating A; Standard & Poor’s rating A+ or A; Moody’s
19Investors Service rating A1 or A2; and Fitch Ratings rating A+ or
20A.

21(iv) Ratings category “Secure - 4” corresponds to A.M. Best
22Company rating A-; Standard & Poor’s rating A-; Moody’s
23Investors Service rating A3; and Fitch Ratings rating A-.

24(v) Ratings category “Secure - 5” corresponds to A.M. Best
25Company rating B++ or B+; Standard & Poor’s rating BBB+,
26BBB, or BBB-; Moody’s Investors Service rating Baa1, Baa2, or
27Baa3; and Fitch Ratings rating BBB+, BBB, or BBB-.

28(vi) Ratings category “Vulnerable - 6” corresponds to A.M.
29Best Company rating B, B-, C++, C+, C, C-, D, E, or F; Standard
30& Poor’s rating BB+, BB, BB-, B+, B, B-, CCC, CC, C, D, or R;
31Moody’s Investors Service rating Ba1, Ba2, Ba3, B1, B2, B3, Caa,
32Ca, or C; and Fitch Ratings rating BB+, BB, BB-, B+, B, B-,
33CCC+, CC, CCC-, or DD.

34(B) The business practices of the certified reinsurer in dealing
35with its ceding insurers, including its record of compliance with
36reinsurance contractual terms and obligations.

37(C) For certified reinsurers domiciled in the United States, a
38review of the most recent applicable NAIC Annual Statement
39Blank, either Schedule F (for property/casualty reinsurers) or
40Schedule S (for life and health reinsurers).

P242  1(D) For certified reinsurers not domiciled in the United States,
2a review annually of Form CR-F (for property/casualty reinsurers)
3or Form CR-S (for life and health reinsurers) (as published on the
4department’s Internet Web site).

5(E) The reputation of the certified reinsurer for prompt payment
6of claims under reinsurance agreements, based on an analysis of
7ceding insurers’ Schedule F reporting of overdue reinsurance
8recoverables, including the proportion of obligations that are more
9than 90 days past due or are in dispute, with specific attention
10given to obligations payable to companies that are in administrative
11supervision or receivership.

12(F) Regulatory actions against the certified reinsurer.

13(G) The report of the independent auditor on the financial
14statements of the insurance enterprise, on the basis described in
15subparagraph (H).

16(H) For certified reinsurers not domiciled in the United States,
17audited financial statements, (audited United States Generally
18Accepted Accounting Principles basis, if available, audited
19International Financial Reporting Standards basis statements are
20allowed, but must include an audited footnote reconciling equity
21and net income to a United States Generally Accepted Accounting
22Principles basis, or, with the written permission of the
23commissioner, audited International Financial Reporting Standards
24statements with reconciliation to United States Generally Accepted
25Accounting Principles certified by an officer of the company),
26regulatory filings, and actuarial opinion (as filed with the
27non-United States jurisdiction supervisor). Upon the initial
28application for certification, the commissioner shall consider
29audited financial statements for the last three years filed with its
30non-United States jurisdiction supervisor.

31(I) The liquidation priority of obligations to a ceding insurer in
32the certified reinsurer’s domiciliary jurisdiction in the context of
33an insolvency proceeding.

34(J) A certified reinsurer’s participation in any solvent scheme
35of arrangement, or similar procedure, which involves United States
36ceding insurers. The commissioner shall receive prior notice from
37a certified reinsurer that proposes participation by the certified
38reinsurer in a solvent scheme of arrangement.

39(K) Any other information deemed relevant by the
40commissioner.

P243  1(2) Based on the analysis conducted under subparagraph (E) of
2paragraph (1) of a certified reinsurer’s reputation for prompt
3payment of claims, the commissioner may make appropriate
4adjustments in the security the certified reinsurer is required to
5post to protect its liabilities to United States ceding insurers,
6provided that the commissioner shall, at a minimum, increase the
7security the certified reinsurer is required to post by one rating
8level under regulations promulgated by the commissioner, if the
9commissioner finds either of the following:

10(A) More than 15 percent of the certified reinsurer’s ceding
11insurance clients have overdue reinsurance recoverables on paid
12losses of 90 days or more that are not in dispute and that exceed
13one hundred thousand dollars ($100,000) for each ceding insurer.

14(B) The aggregate amount of reinsurance recoverables on paid
15losses that are not in dispute and that are overdue by 90 days or
16more exceeds fifty million dollars ($50,000,000).

17(3) The assuming insurer shall submit a properly executed Form
18CR-1 (as published on the department’s Internet Web site) as
19evidence of its submission to the jurisdiction of this state,
20appointment of the commissioner as an agent for service of process
21in this state, and agreement to provide security for 100 percent of
22the assuming insurer’s liabilities attributable to reinsurance ceded
23by United States ceding insurers if it resists enforcement of a final
24United States judgment. The commissioner shall not certify any
25assuming insurer that is domiciled in a jurisdiction that the
26commissioner has determined does not adequately and promptly
27enforce final United States judgments or arbitration awards.

28(4) (A) In the case of a downgrade by a rating agency or other
29disqualifying circumstance, the commissioner shall, upon written
30notice, assign a new rating to the certified reinsurer in accordance
31with the requirements of this subdivision.

32(B) The commissioner shall have the authority to suspend,
33revoke, or otherwise modify a certified reinsurer’s certification at
34any time if the certified reinsurer fails to meet its obligations or
35security requirements under this section, or if other financial or
36operating results of the certified reinsurer, or documented
37significant delays in payment by the certified reinsurer, lead the
38commissioner to reconsider the certified reinsurer’s ability or
39willingness to meet its contractual obligations.

P244  1(C) If the rating of a certified reinsurer is upgraded by the
2commissioner, the certified reinsurer may meet the security
3requirements applicable to its new rating on a prospective basis,
4but the commissioner shall require the certified reinsurer to post
5security under the previously applicable security requirements as
6to all contracts in force on or before the effective date of the
7upgraded rating. If the rating of a certified reinsurer is downgraded
8by the commissioner, the commissioner shall require the certified
9reinsurer to meet the security requirements applicable to its new
10rating for all business it has assumed as a certified reinsurer.

11(D) Upon revocation of the certification of a certified reinsurer
12by the commissioner, the assuming insurer shall be required to
13post security in accordance with Section 922.5 in order for the
14ceding insurer to continue to take credit for reinsurance ceded to
15the assuming insurer. If funds continue to be held in trust in
16accordance with subdivision (d) of Section 922.4, the commissioner
17may allow additional credit equal to the ceding insurer’s pro rata
18share of those funds, discounted to reflect the risk of
19uncollectibility and anticipated expenses of trust administration.
20Notwithstanding the change of a certified reinsurer’s rating or
21revocation of its certification, a domestic insurer that has ceded
22reinsurance to that certified reinsurer shall not be denied credit for
23reinsurance for a period of three months for all reinsurance ceded
24to that certified reinsurer, unless the reinsurance is found by the
25commissioner to be at high risk of uncollectibility.

26(i) A certified reinsurer shall secure obligations assumed from
27United States ceding insurers under this subdivision at a level
28consistent with its rating. The amount of security required in order
29for full credit to be allowed shall correspond with the following
30requirements:

31Ratings security required

32Secure - 1: 0%

33Secure - 2: 10%

34Secure - 3: 20%

35Secure - 4: 50%

36Secure - 5: 75%

37Vulnerable - 6: 100%

38(1) In order for a domestic ceding insurer to qualify for full
39financial statement credit for reinsurance ceded to a certified
40reinsurer, the certified reinsurer shall maintain security in a form
P245  1acceptable to the commissioner and consistent with Section 922.5,
2or in a multibeneficiary trust in accordance with subdivision (d)
3of Section 922.4, except as otherwise provided in this subdivision.
4In order for a domestic insurer to qualify for full financial statement
5credit, reinsurance contracts entered into or renewed under this
6section shall include a proper funding clause that requires the
7certified reinsurer to provide and maintain security in an amount
8sufficient to avoid the imposition of any financial statement penalty
9on the ceding insurer under this section for reinsurance ceded to
10the certified reinsurer.

11(2) If a certified reinsurer maintains a trust to fully secure its
12obligations subject to subdivision (d) of Section 922.4, and chooses
13to secure its obligations incurred as a certified reinsurer in the form
14of a multibeneficiary trust, the certified reinsurer shall maintain
15separate trust accounts for its obligations incurred under
16reinsurance agreements issued or renewed as a certified reinsurer
17with reduced security as permitted by this subdivision or
18comparable laws of other United States jurisdictions and for its
19obligations subject to subdivision (d) of Section 922.4. It shall be
20a condition to the grant of certification under this section that the
21certified reinsurer shall have bound itself, by the language of the
22trust and agreement with the commissioner with principal
23regulatory oversight of each of those trust accounts, to fund, upon
24termination of any of those trust accounts, out of the remaining
25surplus of those trusts any deficiency of any other of those trust
26accounts.

27(3) The minimum trusteed surplus requirements provided in
28subdivision (d) of Section 922.4 are not applicable with respect to
29a multibeneficiary trust maintained by a certified reinsurer for the
30purpose of securing obligations incurred under this subdivision,
31except that the trust shall maintain a minimum trusteed surplus of
32ten million dollars ($10,000,000).

33(4) With respect to obligations incurred by a certified reinsurer
34under this subdivision, if the security is insufficient, the
35commissioner shall reduce the allowable credit by an amount
36proportionate to the deficiency, and have the discretion to impose
37further reductions in allowable credit upon finding that there is a
38material risk that the certified reinsurer’s obligations will not be
39paid in full when due.

P246  1(5) For purposes of this subdivision, a certified reinsurer whose
2certification has been terminated for any reason shall be treated
3as a certified reinsurer required to secure 100 percent of its
4obligations.

5(A) As used in this subdivision, the term “terminated” means
6revocation, suspension, voluntary surrender, and inactive status.

7(B) If the commissioner continues to assign a higher rating as
8permitted by other provisions of this section, this requirement shall
9not apply to a certified reinsurer in inactive status or to a reinsurer
10whose certification has been suspended.

11(6) The commissioner shall require the certified reinsurer to
12post 100-percent security in accordance with Section 922.5, for
13the benefit of the ceding insurer or its estate, upon the entry of an
14order of rehabilitation, liquidation, or conservation against the
15ceding insurer.

16(7) Affiliated reinsurance transactions shall receive the same
17opportunity for reduced security requirements as all other
18reinsurance transactions.

19(8) In order to facilitate the prompt payment of claims, a certified
20reinsurer shall not be required to post security for catastrophe
21 recoverables for a period of one year from the date of the first
22instance of a liability reserve entry by the ceding company as a
23result of a loss from a catastrophic occurrence that is likely to result
24in significant insured losses, as recognized by the commissioner.
25The one-year deferral period is contingent upon the certified
26reinsurer continuing to pay claims in a timely manner, as
27determined by the commissioner, in writing. Reinsurance
28recoverables for only the following lines of business as reported
29on the NAIC annual financial statement related specifically to the
30catastrophic occurrence shall be included in the deferral:

31(A) Line 1: Fire.

32(B) Line 2: Allied lines.

33(C) Line 3: Farmowners’ multiple peril.

34(D) Line 4: Homeowners’ multiple peril.

35(E) Line 5: Commercial multiple peril.

36(F) Line 9: Inland marine.

37(G) Line 12: Earthquake.

38(H) Line 21: Auto physical damage.

39(9) Credit for reinsurance under this section shall apply only to
40reinsurance contracts entered into or renewed on or after the
P247  1effective date of the certification of the assuming insurer. Any
2reinsurance contract entered into prior to the effective date of the
3certification of the assuming insurer that is subsequently amended
4by mutual agreement of the parties to the reinsurance contract after
5the effective date of the certification of the assuming insurer, or a
6new reinsurance contract, covering any risk for which collateral
7was provided previously, shall only be subject to this section with
8respect to losses incurred and reserves reported from and after the
9effective date of the amendment or new contract.

10(10) Nothing in this section shall be construed to prohibit the
11parties to a reinsurance agreement from agreeing to provisions
12establishing security requirements that exceed the minimum
13security requirements established for certified reinsurers under
14this section.

15(j) A certified reinsurer that ceases to assume new business in
16this state may request to maintain its certification in inactive status
17in order to continue to qualify for a reduction in security for its
18in-force business. An inactive certified reinsurer shall continue to
19comply with all applicable requirements of this section, and the
20commissioner shall assign a rating that takes into account, if
21relevant, the reasons why the reinsurer is not assuming new
22business.

23(k) Notwithstanding this section, credit for reinsurance or
24deduction from liability by a domestic ceding insurer for cessions
25to a certified reinsurer may be disallowed upon a finding by the
26commissioner that the application of the literal provisions of this
27section does not accomplish its intent, or either the financial
28condition of the reinsurer or the collateral or other security provided
29by the reinsurer does not, in substance, satisfy the credit for
30reinsurance requirements in Section 922.4.

31(l) This section shall remain in effect only until January 1, 2016,
32and as of that date is repealed, unless a later enacted statute, that
33is enacted before January 1, 2016, deletes or extends that date.

34

SEC. 135.  

Section 1063.1 of the Insurance Code is amended
35to read:

36

1063.1.  

As used in this article:

37(a) “Member insurer” means an insurer required to be a member
38of the association in accordance with subdivision (a) of Section
391063, except and to the extent that the insurer is participating in
40an insolvency program adopted by the United States government.

P248  1(b) “Insolvent insurer” means an insurer that was a member
2insurer of the association, consistent with paragraph (11) of
3subdivision (c), either at the time the policy was issued or when
4the insured event occurred, and against which an order of
5liquidation with a finding of insolvency has been entered by a court
6of competent jurisdiction, or, in the case of the State Compensation
7Insurance Fund, if a finding of insolvency is made by a duly
8 enacted legislative measure.

9(c) (1) “Covered claims” means the obligations of an insolvent
10insurer, including the obligation for unearned premiums, that satisfy
11all of the following requirements:

12(A) Imposed by law and within the coverage of an insurance
13policy of the insolvent insurer.

14(B) Which were unpaid by the insolvent insurer.

15(C) Which are presented as a claim to the liquidator in the state
16of domicile of the insolvent insurer or to the association on or
17before the last date fixed for the filing of claims in the domiciliary
18liquidating proceedings.

19(D) Which were incurred prior to the date coverage under the
20policy terminated and prior to, on, or within 30 days after the date
21the liquidator was appointed.

22(E) For which the assets of the insolvent insurer are insufficient
23to discharge in full.

24(F) In the case of a policy of workers’ compensation insurance,
25to provide workers’ compensation benefits under the workers’
26compensation law of this state.

27(G) In the case of other classes of insurance if the claimant or
28insured is a resident of this state at the time of the insured
29occurrence, or the property from which the claim arises is
30permanently located in this state.

31(2) “Covered claims” also includes the obligations assumed by
32an assuming insurer from a ceding insurer where the assuming
33insurer subsequently becomes an insolvent insurer if, at the time
34of the insolvency of the assuming insurer, the ceding insurer is no
35longer admitted to transact business in this state. Both the assuming
36insurer and the ceding insurer shall have been member insurers at
37the time the assumption was made. “Covered claims” under this
38paragraph shall be required to satisfy the requirements of
39subparagraphs (A) to (G), inclusive, of paragraph (1), except for
40the requirement that the claims be against policies of the insolvent
P249  1insurer. The association shall have a right to recover any deposit,
2bond, or other assets that may have been required to be posted by
3the ceding company to the extent of covered claim payments and
4shall be subrogated to any rights the policyholders may have
5against the ceding insurer.

6(3) “Covered claims” does not include obligations arising from
7the following:

8(A) Life, annuity, health, or disability insurance.

9(B) Mortgage guaranty, financial guaranty, or other forms of
10insurance offering protection against investment risks.

11(C) Fidelity or surety insurance including fidelity or surety
12bonds, or any other bonding obligations.

13(D) Credit insurance.

14(E) Title insurance.

15(F) Ocean marine insurance or ocean marine coverage under
16an insurance policy including claims arising from the following:
17the Jones Act (46 U.S.C. Secs. 30104 and 30105), the Longshore
18and Harbor Workers’ Compensation Act (33 U.S.C. Sec. 901 et
19seq.), or any other similar federal statutory enactment, or an
20endorsement or policy affording protection and indemnity
21coverage.

22(G) Any claims servicing agreement or insurance policy
23providing retroactive insurance of a known loss or losses, except
24a special excess workers’ compensation policy issued pursuant to
25subdivision (c) of Section 3702.8 of the Labor Code that covers
26all or any part of workers’ compensation liabilities of an employer
27that is issued, or was previously issued, a certificate of consent to
28self-insure pursuant to subdivision (b) of Section 3700 of the Labor
29Code.

30(4) “Covered claims” does not include any obligations of the
31insolvent insurer arising out of any reinsurance contracts, nor any
32obligations incurred after the expiration date of the insurance policy
33or after the insurance policy has been replaced by the insured or
34canceled at the insured’s request, or after the insurance policy has
35been canceled by the liquidator, nor any obligations to a state or
36to the federal government.

37(5) “Covered claims” does not include any obligations to
38insurers, insurance pools, or underwriting associations, nor their
39claims for contribution, indemnity, or subrogation, equitable or
40otherwise, except as otherwise provided in this chapter.

P250  1An insurer, insurance pool, or underwriting association may not
2maintain, in its own name or in the name of its insured, a claim or
3legal action against the insured of the insolvent insurer for
4contribution, indemnity, or by way of subrogation, except insofar
5as, and to the extent only, that the claim exceeds the policy limits
6of the insolvent insurer’s policy. In those claims or legal actions,
7the insured of the insolvent insurer is entitled to a credit or setoff
8in the amount of the policy limits of the insolvent insurer’s policy,
9or in the amount of the limits remaining, where those limits have
10been diminished by the payment of other claims.

11(6) “Covered claims,” except in cases involving a claim for
12workers’ compensation benefits or for unearned premiums, does
13not include a claim in an amount of one hundred dollars ($100) or
14less, nor that portion of a claim that is in excess of any applicable